Catalyzing the Water Action Agenda for Finance
Valuing Water Initiative, Government of the Netherlands
(
Government
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#SDGAction50391
Description
In January 2023 CDP, the Organisation for Economic Cooperation and Development (OECD) and the Water Footprint Network (WFN), funded by the Dutch Government's Valuing Water Initiative, kicked-off a project dedicated to Catalysing the Water Action Agenda for Finance.
One of the main outputs of the project is to put together a first-of-its-kind Finance Water Action Pathway. The partners will leverage their expertise in the fields of financial services sustainability disclosure, capital markets, water foot printing and water security. We will also use our existing, extensive networks to engage and consult with various financial actors and selected experts to help us along the process of building a first draft Pathway. The Pathway concept will be endorsed in New York in March 2023 at the Water UN Conference.
Given the many sustainability challenges the finance sector is facing, we strive to align our Finance Water Action Pathway with ongoing/existing initiatives. Specifically, we based our draft pathway structure on the UN’s Climate Action Pathway for Finance. It will consist of sections presenting the vision by 2030, a system transformation summary, the key levers of change and the specific actions to be taken within each area and the existing progress made on the issue. Last but not least, the Pathway will set high level vetted, ambitious, specific, measurable, actionable and timebound milestones for the financial sector.
Water, as an inseparable part of nature and economic stability, is an essential resource that needs to be considered by financial institutions when making decisions about their portfolio activities. Financial institutions (FIs) have the power to influence or incentivize the transformation of whole sectors in ways that single governments cannot. Through their lending, investment, insurance and underwriting practices, FIs can drive the various water users to use water wisely, to not pollute it, and to promote its reuse. Financial institutions can spur the development, upscaling and uptake of critical technologies, policies and practices through the adoption of bold commitments to water security and through their cascading influence on the entire economy via portfolio holdings, loan books and other assets.
Short term impact of the project:
o Demonstrates that action on water amongst private finance is already underway.
o Establishes the level of water-related ambition and transformation needed in the sector.
o Characterises pathways to accelerate the transformation
Long term impact:
Drives financial institutions to:
o Achieve water-related commitments.
o Reward improvements in corporate water performance.
o Increase water-related transparency.
o Provide evidence to support the creation of more effective policy responses.
CDP, OECD, Water Footprint Network, with support & engagement from their respective partners and networks
SDGS & Targets
Goal 6
Ensure availability and sustainable management of water and sanitation for all
6.1
By 2030, achieve universal and equitable access to safe and affordable drinking water for all
6.1.1
Proportion of population using safely managed drinking water services
6.2
By 2030, achieve access to adequate and equitable sanitation and hygiene for all and end open defecation, paying special attention to the needs of women and girls and those in vulnerable situations
6.2.1
Proportion of population using (a) safely managed sanitation services and (b) a hand-washing facility with soap and water
6.3
By 2030, improve water quality by reducing pollution, eliminating dumping and minimizing release of hazardous chemicals and materials, halving the proportion of untreated wastewater and substantially increasing recycling and safe reuse globally
6.3.1
Proportion of domestic and industrial wastewater flows safely treated
6.3.2
Proportion of bodies of water with good ambient water quality
6.4
6.4.1
Change in water-use efficiency over time
6.4.2
Level of water stress: freshwater withdrawal as a proportion of available freshwater resources
6.5
By 2030, implement integrated water resources management at all levels, including through transboundary cooperation as appropriate
6.5.1
Degree of integrated water resources management
6.5.2
Proportion of transboundary basin area with an operational arrangement for water cooperation
6.6
6.6.1
Change in the extent of water-related ecosystems over time
6.a
6.a.1
Amount of water- and sanitation-related official development assistance that is part of a government-coordinated spending plan
6.b
Support and strengthen the participation of local communities in improving water and sanitation management
6.b.1
Proportion of local administrative units with established and operational policies and procedures for participation of local communities in water and sanitation management
SDG 14 targets covered
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Deliverables & Timeline
Resources mobilized
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SDGs
Region
- Global
Other beneficiaries
The desired impact of the commitment is to align trillions of dollars in financial flows with the achievement of a water secure world. Beneficiaries include all those who stand to benefit from the achievement of water security on a global scale.
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Contact Information
Joe, Senior Advisor