In the face of mounting stresses on global water supplies, food and beverage companies are increasingly exposed to financial risks associated with their reliance on water-intensive agricultural commodities. Droughts, floods, eutrophication, and poor manure management not only undermine the security of our food system, but they also pose physical, regulatory, and reputational threats to the financial performance of the food industry. While many of these companies -- and their investors -- have demonstrated growing awareness of water stewardship as a business imperative, others have stagnated, failing to assess their exposure to water risks or set goals to source their commodities more sustainably. I examine how water risks have already had substantial financial impacts on the industry and highlight the efforts of institutional investors to motivate companies to address these risks. Through an analysis of past and forthcoming editions of Feeding Ourselves Thirsty -- a benchmarking of the water risk management efforts of over 40 food and beverage companies -- I review the strategies used by leading companies to enhance the resilience of their agricultural supply chains.

Jacob London is an Associate at Ceres, a Boston-based non-profit organization advocating for sustainable investment, business practices, and public policy. As part of the Water & Agriculture program, his work aims to mobilize food and beverage companies to address water risks in their agricultural supply chains. In this role he conducts research to improve investors' understanding of the financial risks associated with global water stress, and supports shareholder engagements focused on water and agriculture. He is the co-author of the forthcoming edition of Feeding Ourselves Thirsty: How the Food Sector is Managing Global Water Risks, due for release in September 2019.