Largest global businesses unprepared for water shortage

The world’s largest businesses are not prepared for the effects of a looming water shortage, according to research sponsored by the newly-established Marsh Center for Risk Insights.

Marsh Inc., a global insurance broker and risk advisor, formed the Marsh Center for Risk Insights as a working forum for experts to identify, debate and tackle critical global business risks.

The 2007 Marsh Center telephone poll of Fortune 500 company executives cited a potential water shortage as being one of the newest threats on the horizon.

“With less than 3% of the world’s water now reachable and fit for human consumption — a figure that is shrinking — 40% of Fortune 1,000 companies surveyed said the impact of a water shortage would be severe or even catastrophic,” Marsh Inc. noted in a press release announcing the launch of its new center.

“Despite this, less than one in five (17%) say they have prepared for such a crisis.”

The findings are based on work conducted for the Marsh Center by Public Opinion Strategies, a polling firm that spoke to senior officials from more than 100 executive suites from a cross-section of Fortune 1,000 companies.

Almost half of the Marsh Center survey respondents (47%) said water is critical or very important to their day-to-day operations. Nevertheless, the survey noted, only 6% believe it is likely that, in the next five to 10 years, access to water for manufacturing and drinking will be significantly reduced because of quality degradation or scarcity.