Investors urge firms to join water initiative

The 16 signatories to the letter, all supporters of the UN-backed Principles for Responsible Investment - and including the BP Pension Fund and the Local Authority Pension Fund Forum - said they believed those who manage the risks and opportunities presented by limited global water availability were more likely to be viable long-term investments.

The targeted companies include global giants such as Starbucks Coffee Company, GlaxoSmithKline and Carlsberg Group.

The companies are being asked to sign up to the "CEO Water Mandate" - a public-private initiative created by the corporate sustainability initiative UN Global Compact and designed to assist companies in the development, implementation and disclosure of water sustainability policies and practices.

Connecticut State treasurer Denise Nappier, principal fiduciary of the Connecticut Retirement Plans and Trust Funds, said: "Water can not be treated as merely a casualty of climate change, but rather its rival in its potential to both pose risks and create opportunities for the companies in which our funds invest."

UNPRI said in many parts of the world, companies in all industries were expected to experience escalating challenges related to water availability and the quality of water.

Population growth, urbanisation, and climate change were combining to place significant pressure on water supplies for communities and industries.

According to the UN, nearly two-thirds of humanity is expected to live in water-stressed regions by 2025 - many in emerging and frontier markets.

The "CEO Water Mandate" initiative helps companies address this water challenge by assisting in corporate policy development and through the sharing of best and emerging practices.

It was launched in July 2007 and has been endorsed by approximately 40 global companies.