AXA XL publishes Water Risk Insights Report


Authored by AXA XL

  • Report focuses on the impact of three types of water risks across seven sectors
  • Provides five recommendations for businesses to manage key water-related risks

As part of AXA XL’s commitment to raise awareness of the importance of water security – in line with its newly launched sustainability strategy – it has published an insights report highlighting this underappreciated risk. 

According to the international non-profit CDP, the cost to businesses of inaction on water risks is five times higher than the cost of action, yet water security is currently under-represented in the public debate on climate change. 

Suzanne Scatliffe, Global Sustainability Director, AXA XL, said: “Creating a water-secure world requires water resources to be protected and properly managed, which is why it’s more essential than ever that water is at the forefront of corporate climate strategies.

“AXA XL is committed to helping organisations to improve their understanding of water-related risks and how they impact business operations. This new report aims to support businesses of all sizes to understand different types of sector-specific water risks and catalyse action with a series of recommended solutions and tools.”

The report focuses on seven sectors within AXA XL’s client-base and with high exposure to water risks, and presents how those sectors may be impacted by three types of water risk:

  • Physical – including water scarcity; climate change and threats to ecosystems; poor water quality and pollution of water resources; flooding; and poor management of water resources.
  • Regulatory – including higher water prices; regulation of effluent quantity and quality; statutory water withdrawal limits; and regulatory uncertainty.
  • Reputational – including negative media coverage and public scrutiny, changes in consumer loyalty and loss of market share due to litigation and damage to brand.

In addition, the report outlines five recommendations – including setting water consumption and pollution reduction targets and carrying out future scenario planning – to help businesses manage key water-related risks.

As AXA XL continues to leverage its global position and reach to advance sustainability, this report is designed to be used both by the public and by businesses, and as a resource that government, regulators, and clients can turn to for guidance on mitigating climate risk.

To read the full report from AXA XL CLICK HERE


About AXA XL

AXA XL is the P&C and specialty risk division of AXA which provides property, casualty, professional and speciality products to industrial, commercial and professional firms, insurance companies and other enterprises, here in the UK and throughout the world. With underwriting teams based in the US, UK, EMEA and Asia Pacific regions, we can make decisions close to the markets you serve and work with you to tailor cover to your business needs.

We help businesses adapt and thrive amidst change. Rather than just paying covered claims when things go wrong, we go beyond protection into prevention so your business can go beyond the unexpected.

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