Likelihood and severity of impact caused by water-related risks
Unit
Indicator
Metric type
Framework alignment notes
Target example
[Company name] will identify its potential and actual impacts on freshwater sources within [basin] by [target year]. Where severe impacts are identified [Company name] will implement action to reduce this severity within [target number of] years.
Target source: WBCSD target template
Metric assessment
Relevance: Low
Feasibility: Low
Additional Metric Notes
ACT-D stage: Assess Maturity stage: Developing Metric Contribution to Action: Evaluating the likelihood and severity of water-related risks helps prioritize mitigation efforts and policy development. Furthermore, if an organisation understands the likelihood and severity of impact that they may have on a system then they can take action to reduce nature related impacts and therefore increase their supply chain resilience. Note that the actions taken to assess impact likelihood and severity (e.g. stakeholder engagement, risk mapping) are themselves critical for generating actionable knowledge and building system understanding. Observations/Successes/Challenges: > "Impact" is vague and can vary across different contexts (e.g., environmental, economic, social). Needs clearer definition. > Highly subjective and variable > Many water-related impacts (e.g., extreme weather events) are difficult to predict accurately. > The more a site understands water system dynamics, the more accurate and useful the metric becomes.