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Two thirds of world's largest companies exposed to serious water risks
November 13, 2014
Two thirds of world's largest companies exposed to serious water risks
São Paulo is the wealthiest state in Brazil. It is the pulsating heartbeat of the Brazilian economy. The state’s capital of the same name is a major driver of commercial activity. A megacity and home to 20 million people, it was at one point the largest industrial city in the southern hemisphere. How then, can such an important metropolis find itself on the verge of running out of water?
Brazil has experienced its driest period since records began, the worst drought in 80 years. São Paulo city’s population has also set records: for the 20 years from 1950, it was among the fastest growing. Today it’s still increasing. The resultant demand for water and the dependency and pressure on the Cantareira reservoir - the system that serves the city - has contributed to an official crisis. The huge basin is nearly dry, having dropped to below 10% of its capacity and São Paolo finds itself locked in difficult negotiations with neighbouring states that also rely on the Cantareira.
More established economies too are becoming acutely aware of the wide-ranging impacts that worsening water security can bring. Travel up from Latin America to California and you witness a severe drought now in its third year. It has cost billions of dollars, wrought havoc with the agriculture industry and caused discomfort for residents.
There are health implications too, some of which go further than the basic need of water for sanitation. California has spent decades working to create cleaner air but its progress is hindered by the heat and extreme drought, which have worsened smog levels.
Read more at The Guardian.
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