Ecolab and Trucost expand financial modelling tool
Enhancements to the Water Risk Monetizer platform provides water-dependent business with the capability of measuring how water scarcity impacts revenue
Global water technology and service provider Ecolab and Trucost, a valuing natural capital firm, have announced enhancements to the Water Risk Monetizer platform, first introduced in November 2014.
The financial modelling tool designed for water-dependant businesses to access current and future water risks in decision making, now boasts the capability of tracking how water scarcity impacts revenue.
The tool's new assessment provides a better understanding of the full value of water of active operations and helps users identify revenue at risk based on current and projected water scarcity.
Douglas M. Baker, Jr., Ecolab chairman and CEO, commented: “As water scarcity increases around the world, business leaders need actionable information to help them understand and manage their current and future water-related risks.”
“The Water Risk Monetizer helps businesses make informed decisions to enable growth in this new era of water scarcity,” he added.
As part of its programming, the tool assesses the potential cost or impact of water risks, in a similar approach to how other risks are analysed and addressed in planning and capital allocation. The Water Risk Monetizer platform accomplishes this by produced a monetary estimate of the full value of water at a facility level, which produces a risk-adjusted water cost.
It is also able to evaluate potential revenue at risk, by calculating the estimated amount of revenue that may be possibly lost within a facility due to the impact of water scarcity.
Commenting on the additions, Richard Mattison, chief executive of Trucost shared: “The new revenue-at-risk indicator illuminates the threat that businesses face from water scarcity.”
“It helps companies raise awareness about the need for investing in sustainable water management, as well as providing a practical water risk assessment tool to factor water scarcity into business decisions,” he concluded.