Blue water

Freshwater in surface or groundwater sources, such as rivers, lakes, reservoirs, and aquifers, that can be withdrawn for human use, including irrigation, industrial processes, and municipal supply.

Chronic water stress

When total water withdrawal is greater than the available supply in a watershed, expressed as a ratio. A ratio above 0.4 indicates high water stress.

Costs

The ongoing financial impacts arising from chronic water stress that are recurring and can be anticipated and planned for within normal business operations through capital and operating expenditures.

Drought

A sudden and severe reduction in water availability. FAIRR's Water Risk Monitor model uses a one-in-ten-year drought event as a benchmark, meaning a drought severe enough that it only has a 10% chance of occurring in any given year. Drought is used interchangeably with acute water stress in this report.

Drought-amplified water stress

The water stress a location faces when an already water-scarce area is hit by a severe drought.

Financial materiality

An assessment of how sustainability risks and opportunities may affect a company's financial performance and cost of capital.

Green water

Rainfall stored as soil moisture and returned to the atmosphere through evaporation from plants and soil; the primary water source for rainfed agriculture.

Internal water price

An economic valuation metric assigned by an organisation to represent the true value of water within its operations, beyond market tariffs, which serves as a tool for resource management.

Losses

The unexpected financial impacts arising from acute drought events that are stochastic and event-driven in nature, falling outside normal business operations.

Stranded assets

Assets subject to unanticipated write-downs or devaluation due to environmental risks such as water scarcity, climate change, or regulatory shifts.

Virtual water

The volume of freshwater embedded in the production and trade of all goods and services, starting with a commodity at its point of origin and through to a final product.

Water cycle

The continuous circulation of water between the earth's surface, sub-surface and atmosphere, which regulates climate, eco- and life-support systems, through flows between the atmosphere, land and ocean.

Water dependency

The reliance of an organisation on water-related assets and ecosystem services (including water flow, availability and quality) for its direct operations and value chain to function effectively.

Water disclosure gap

The difference (measured as a multiple) between water dependencies a company reports and its estimated total water dependencies across its entire value chain, including upstream supply chains.

Water footprint

Total freshwater used across the full value chain to produce a product, split into green (rainwater), blue (surface and groundwater), and grey (pollution) components. This report presents blue and green water footprints of feed crops, livestock and slaughter processing factories.

Water resilience

The capacity of an individual, institution or system to anticipate, absorb, adapt to, and recover from water-related shocks and stresses while maintaining operational and financial continuity.

Water scarcity

When demand for freshwater exceeds available supply in a given area, driven by factors such as population growth, intensive water use, and climate change.

Water stewardship

An approach to managing water that minimises the environmental and social impact of water use and ensures use is socially and culturally equitable, environmentally sustainable and economically beneficial.

Water tariff

The price for the potable water supplied by a public utility through a piped network to consumers and businesses, such as the drinking and service water used in livestock processing activities.