Climate change may be the greatest threat to sustainability, but water vulnerability is potentially the most urgent, likely to play out in a shorter time frame. And water scarcity has a ‘ripple effect’ -- not only are the economic repercussions of water stress becoming increasingly evident, but water vulnerability is becoming evident in national elections and immigration challenges.
In our fifth Sovereign Sustainability report, we examine the level and direction of water stress and vulnerability on geopolitics, food security, hydropower, and the interplay of water and deforestation. Our model emphasizes Natural Capital and treats it as finite. Our scoring system identifies these risks by penalizes the rankings of nations which try to enhance Economic or other Capitals by depleting natural resources. Our model is also designed to examine issues by isolating inputs or sub-models across nations. Previous white papers on our model ranking updates have presented our model’s analyses of the rule of law, deforestation, preparation for 2050 goals, food security, and trade sustainability.
We find that de-constructing our model into components helps us better understand and price sovereign risks. As the World Bank says, Economic growth is a ‘thirsty business’.
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”It is becoming evident that sustainable solutions are not just environmental imperatives, but are crucial for maintaining global stability and security.
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