Introduction

Water scarcity poses significant business and financial risk, particularly for agricultural, beverage, and energy companies. Traditional water-stress assessments rely on self-reported data. Satellite remote-sensing provides objective water availability data, enabling independent water-stress risk scoring unbiased by company reporting.

Water-Stress Measurement

Satellite data measures water availability: soil moisture, water table levels, surface water, evapotranspiration. Computer vision models analyze MODIS, Landsat satellite data to quantify regional water stress. For each company, link facilities to water-stress regions. Score exposure: company drawing from high-stress water sources faces operational risk.

Application

Identify agricultural companies drawing from overdrawing aquifers (unsustainable). Identify beverage companies in drought-vulnerable regions. Assess operational risk: during droughts, supplies constrained, costs rise, margins compress. Use water-stress scores in ESG assessments and valuation adjustments.

Conclusion

Remote-sensing water-stress data enables objective assessment of company water exposure and associated financial risks.