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Costs of Water Risks – Case of a Peruvian Agricultural Company

  • Water risk assessment is becoming an essential part of any decision-making process in the business sector. In the world where freshwater resources are becoming scarcer, water risks are growing and causing high costs to businesses. Therefore, numerous frameworks, guidelines, methodologies, tools, and other approaches were developed during the last century. Various scholars have appeared to give an economic value or price for environment goods in order to understand trade-offs better. Nowadays, the corporate world tends to use different approaches to convert sustainability management data to the financial language of decision-makers. This study explores the possible ways for a company to measure the costs of water related risks. It examines how to convert water risks to financial risks using a Peruvian agricultural company. The results show, that from all today’s available frameworks, guidelines or tools there is no one commonly accepted and recognised as the best for water risk assessment and monetising. It was learned, that available tools could provide just a simple overview of possible water related risks and calculate their costs in a very general way. The work also highlights the importance of regular and appropriate data collection on the company level in order to be able to assess water risk related costs for the business.

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Verfasserangaben:Anna Kalashnyk
Gutachter:Sabine Schlüter
Veröffentlichende Institution:Hochschulbibliothek der Technischen Hochschule Köln
Titel verleihende Institution:Technische Hochschule Köln
Datum des Hochladens:28.02.2020
Freies Schlagwort / Tag:Agricultural business; Costs of water risks; Environmental risks; Sustainable business; Water risks
Fakultäten und Zentrale Einrichtungen:Institut für Technologie in den Tropen (ITT)
DDC-Sachgruppen:500 Naturwissenschaften und Mathematik
JEL-Klassifikation:Q Agricultural and Natural Resource Economics; Environmental and Ecological Economics
Open Access:Open Access
Lizenz (Deutsch):License LogoCreative Commons - CC BY-SA - Namensnennung - Weitergabe unter gleichen Bedingungen 4.0 International