There will be more water stress in 2024

The geopolitical risk analysts at S&P Global Market Intelligence discovered that water stress will persist in posing challenges to businesses and governments in the coming years. Worldwide, there will probably always be significant challenges in forecasting weather patterns, which will have an impact on people’s lives, nations’ economies, and important sectors that depend on water as a vital resource.

It is predicted that in 2024, the El Niño climate pattern will have a major impact on the world. But as the report points out, water-related stress will continue to be a problem for many years to come in many parts of the world, with Australia being a particularly prominent example.

A senior research analyst at S&P Global Market Intelligence, asserts that physical risks—such as the effects that water has on businesses—will be very important when making business investment decisions.

Highlights of the report:

Longer-term economic diversification strategies must include access to adequate water supplies. Water stress will put businesses and governments at greater risk because it can lead to supply chain disruption, limited electricity generation, and agricultural losses, among other negative economic effects.

Governments at the local, state, and federal levels will need to step in with policies and help companies deal with water scarcity.

As government and public pressure increases on businesses and sectors with high water usage, mandating them to donate or forgo water supplies to increase availability for domestic use, initiatives like the use of desalination infrastructure will become more widespread.