Study Reveals German Companies' Underestimation of Water Risks Despite Heavy River Dependence

A recent study by NABU and BDO highlights a significant disconnect between German companies' operational reliance on river water and their recognition of water-related risks. Examining 160 publicly listed firms with 15,000 locations, researchers found that over one-third are closely geographically connected to rivers, and around 60% depend heavily on water for their business models. Alarmingly, one-third of these companies do not consider water a critical issue in their sustainability reporting, revealing a "materiality gap" that threatens supply chain stability and long-term viability, particularly in industries such as chemicals, metal processing, and consumer goods.

The report stresses the importance of expanding corporate perspectives beyond traditional risk assessments to encompass the broader health of river ecosystems. It advocates for holistic water management strategies and highlights that nature-based solutions, like river and floodplain restoration, often outperform purely technical measures both in effectiveness and cost-efficiency.

BDO's collaboration with NABU underlines the need for strategic approaches to water risk identification and management to safeguard Germany's economic landscape. This study underscores that sustainable business resilience requires firms to acknowledge and address their water dependencies comprehensively.