Summary
Researchers at Carnegie Mellon University created a tool called the Drinking Water Utilities Climate Risk Index to measure how ready U.S. water systems are for climate challenges like drought and heat. They found that many water systems are not prepared for climate change, and some do not mention these risks in their financial documents. This could leave communities and investors at risk during extreme weather events.
Key Facts
- Carnegie Mellon University developed the Drinking Water Utilities Climate Risk Index to evaluate U.S. water systems' readiness for climate change.
- The study evaluated 1,455 medium and large water utilities in the U.S.
- Utilities serving 67 million people are considered high risk for climate change impacts, yet 36% of their financial disclosures ignore climate risks.
- These bonds represent $39.3 billion in debt, with $9.2 billion from high-risk utilities lacking climate awareness in disclosures.
- Climate risks may affect utilities' long-term planning and ability to adapt to a changing climate.
- Utilities in the Western U.S., Northeast, and Midwest are particularly vulnerable due to climate threats and infrastructure issues.
- States like Michigan, Illinois, and California have high exposure to climate risks and significant recent bond debt.
- The researchers suggest using the new Index as a resource for better planning and understanding of future risks.
