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China Water Risk Factsheet

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China Water Risk Factsheet CHINA WATER RISK FACTSHEET China Water Risk is a non-profit initiative designed to help investors, businesses and individuals understand and mitigate risk around water. China Water Risk intends to foster efficient and responsible use of China’s water resources. The China Water Risk web portal, launched in pilot form as The Asia Water Project (AWP) in 2010 and now in its current form as China Water Risk on June 15th (change date) 2011. China Water Risk was developed with a more targeted, sector-based approach to informing investors and business about water- related risk inherent in investing and operating in China. The new website provides access to a consolidated library of knowledge and research on water issues; real-time relevant facts and news at your fingertips; expert opinions and interviews from captains of industry, investors, academia and water experts; benchmark key industries’ and best-in-class examples; as well as access to a network of key opinion leaders, consultants and experts. With this new web portal, China Water Risk aims to improve corporate disclosure of water data and metrics; investor due diligence around water issues to direct capital flows to projects that are better- governed, managed sustainably and with reduced environmental impact. China Water Risk strives to transform the community of investors and business owners so that they want to understand and improve water resource management in China. This website also intends to inform individuals on water issues so they can get involved in supporting sustainable water use in China. China Water Risk works closely with a growing network of water and industry experts and investors from China and Hong Kong as well as with others based internationally. China Water Risk’s network shares an interest in building knowledge that will lead to better management of China’s increasingly scarce water resources. China Water Risk is funded and managed by Hong Kong-based ADM Capital Foundation and in its pilot stage was developed in collaboration with its founding partners, Civic Exchange, the Association for Social and Responsible Investing in Asia (ASrIA), Business for Social Responsibility (BSR), the Institute of Public and Environmental Affairs (IPE), and Responsible Research. Regardless of whether we care for the environment, water risks affect us all – as businesses, as investors and ultimately as individuals. Water in China: why worry? China ranks #5 in Renewable Water Resources; with almost 7% of the world’s freshwater reserves but less renewable water resources per capita than in the Middle East. Due to increasing pollution, 19% of the 7 rivers and basins and 35% of the 26 key lakes and reservoirs are essentially useless for both agriculture and industrial use 85% of water use in China is by agriculture and industry while Chinese industry uses 4-10 times more water per unit per production than industrialized nations. The Ministry of Water Resources has projected that they will not meet demand for water by 2030, if business carries on as usual. Water crises could threaten economic growth and social stability. 5 things you didn’t know about China’s water crisis: China surpassed Japan to be the 2nd largest economy – continued growth might be jeopardized by water demand not meeting water supply by 2030. China’s 12th Five Year Plan (2011-2015) is focused on quality growth including energy saving and environmental protection. China is expected to surpass the US as the largest producer of electricity in the next few years – 95% of China’s electric power requires water to generate. China is a major producer and consumer of basic metals and coals. These reserves are located in China’s water scarce provinces. Desalination technology solves freshwater scarcity issues Businesses should consider the consequences of limited supply of water essential to their operations Investors should assess financial risks associated with investing in water intensive industries Limited or contaminated water supplies could result in individual health risks For more information, please visit www.chinawaterrisk.org .
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