A water risk index for portfolio exposure to climatic extremes: conceptualization and an application to the mining industry

Bonnafous, Luc; Lall, Upmanu; Siegel, Jason

doi:https://doi.org/10.5194/hess-21-2075-2017

Articles | Volume 21, issue 4

https://doi.org/10.5194/hess-21-2075-2017

© Author(s) 2017. This work is distributed under
the Creative Commons Attribution 3.0 License.

https://doi.org/10.5194/hess-21-2075-2017

© Author(s) 2017. This work is distributed under
the Creative Commons Attribution 3.0 License.

Articles | Volume 21, issue 4

Research article

|

19 Apr 2017

Research article |

| 19 Apr 2017

A water risk index for portfolio exposure to climatic extremes: conceptualization and an application to the mining industry

Luc Bonnafous, Upmanu Lall, and Jason Siegel

Data sets

NOAA-CIRES 20th Century Reanalysis version 2c Earth System Research Laboratory http://www.esrl.noaa.gov/psd/cgi-bin/db_search/DBSearch.pl?Dataset=NOAA-CIRES+20th+Century+Reanalysis+Version+2c&Variable=Precipitation+Rate

ERA-20C Project (ECMWF Atmospheric Reanalysis of the 20th Century) Research Data Archive http://rda.ucar.edu/datasets/ds626.0/index.html#cgi-bin/datasets/getSubset?dsnum=626.0&action=customizeGrML&_da=y&so=RgpNO&gindex=15

Short summary

While water-risk management plans for economic assets are the norm on a local basis, it is possible that there is correlation in the climate induced portfolio water risk across operational sites. Therefore, from an investor's perspective, a need exists for a water risk index that allows for an exploration of the possible space and/or time clustering in exposure across many sites. This paper represents an attempt to develop such an index using long daily global modelled rainfall data sets.