Climate change didn't cause the recent monstrous hurricanes, but a warming earth certainly fueled their fury. The food sector, which consumes 70% of our planet's fresh water, is especially vulnerable to extreme weather patterns that are the most visible and devastating hallmarks of climate change. Already, erratic precipitation and hotter temperatures are affecting crop yields and productivity. Climate models predict worse to come.
Diminishing snowpack in many regions will dry up seasonal water supplies that sustain major growing areas such as the western U.S., India and Peru. Crops will suffer more stress as evaporation reduces the amount of water they can soak up through the soil. And farmers will contend with increased weed growth, disease outbreaks and pest infestations — all of which reduce yield and drive up food prices.
Population growth adds to the pressure. According to the United Nations, by 2050, to meet the needs of a projected population of 9.1 billion, water demands are expected to increase by 55% and food demands by 60%.
Investors must act to cut their exposure to water risk, but it time is dwindling rapidly.