An Interdisciplinary Water Risk Assessment Framework for Sustainable Water Management in Ontario, Canada

Abstract

Water is a multifaceted and shared resource providing critical social, economic, cultural, and ecological functions for all aspects of human wellbeing, economic development, and environmental sustainability (Cosgrove & Loucks, 2015; United Nations, 2018). Therefore, sustainable water management is inherently at the core of Sustainable Development (United Nations, 2018). As reflected in Sustainable Development Goal 6, objective of sustainable water management is to ensure water security, that is, adequate quantity, quality, and ecological integrity of water resources, is perpetually maintained while meeting all present and future water demands (Di Baldassarre et al., 2019;Sandhu et al., 2020b). Nonetheless, significant uncertainty, spatial and temporal variability of water availability, exacerbated manifold due to climate change, economic and population growth, threaten interconnected food and energy security and biodiversity of freshwater ecosystems (Cosgrove & Loucks, 2015;Sandhu et al., 2021).To foster sustainable development and water security, a keen focus on resilience (stress absorbing capacity) and adaptive capacity of social-ecological systems including organizations reliant on water resources is equally necessary (Folke, 2006;Xu et al., 2018). Thus, going beyond state-centric water management approaches, developing proactive policies, strategies and actions for risk management focused on a multipronged approach by all private nonstate (e.g., businesses, investors, insurance firms, lenders) and other water-using sectors is championed (Cosgrove & Loucks, 2015;Sandhu et al., 2021). As risk influences a system's ability to respond and adapt to adverse events, risk assessment and analysis is a central component of risk and resilience management (Linkov et al., 2014).Given the multidimensionality of water security risk as a construct, water security risk (called "water risk" thereafter) is defined as the likelihood of occurrence of water issues manifested as seasonal low flows, groundwater depletion, degraded quality, regulatory uncertainty of access or use, water user conflicts or other legacy issues that can adversely impact human wellbeing, profitability, and environment (Di Baldassarre et al., 2019;

Examining water risk perception and evaluation in the corporate and financial sector: a mixed methods study in Ontario, Canada

“…Surrounded by the Great Lakes, Ontario is often considered an ideal location for water-reliant production, agriculture, and investment (Sandhu et al 2020). Despite the perception of abundant freshwater resources, Ontario is rife with water issues, including decreasing flows, quality issues, depleted and /or contaminated groundwater sources, regulatory uncertainty, legacy water access issues in indigenous communities, and controversies/conflicts among competing water user groups, especially the corporate sector (Johns 2017, Bonsal et al 2019, Sandhu et al 2023. Moreover, the role of non-state expert and practitioner risk perception in assessing and managing different water risks largely remains underexplored in Ontario (Sandhu et al 2021(Sandhu et al , 2023.…”

“…Despite the perception of abundant freshwater resources, Ontario is rife with water issues, including decreasing flows, quality issues, depleted and /or contaminated groundwater sources, regulatory uncertainty, legacy water access issues in indigenous communities, and controversies/conflicts among competing water user groups, especially the corporate sector (Johns 2017, Bonsal et al 2019, Sandhu et al 2023. Moreover, the role of non-state expert and practitioner risk perception in assessing and managing different water risks largely remains underexplored in Ontario (Sandhu et al 2021(Sandhu et al , 2023. Therefore, Ontario is a contemporary and instructive case for empirically examining the underlying facets of water risk perception of practitioners and decision-makers and how biophysical and social water risks are assessed, ranked/prioritized, and integrated into decision-making (Sandhu et al 2021).…”

“…To ensure water security and foster sustainable water management, regional analyses are essential for assessing biophysical and social water risks as well as for improving water management and governance processes that are informed by perspectives, values, and interests of public and private actors and institutions (Dudley et al 2022, Sandhu et al 2023. Water risk is a multi-faceted concept defined as the probable occurrence or exposure to different water availability issues (quantity, quality, access, regulatory uncertainty, and multi-user conflicts) that can have adverse consequences for society, economy, and environment Renn 2012, Di Baldassarre et al 2019).…”

“…Water risk is a multi-faceted concept defined as the probable occurrence or exposure to different water availability issues (quantity, quality, access, regulatory uncertainty, and multi-user conflicts) that can have adverse consequences for society, economy, and environment Renn 2012, Di Baldassarre et al 2019). Social water risks entail legal, political, and social dimensions, including regulatory uncertainty related to how water is allocated, limits to water extraction as well as public perception about water availability and quality, the impact of industrial sectors on water resources, and legacy inequitable access issues, especially in indigenous communities (Sandhu et al 2021(Sandhu et al , 2023.…”

“…As major water users who impact shared water resources, the corporate sector with businesses in various industries, including manufacturing, agriculture, power generation, mining, recreation, etc, as well as the financial sector that lends, insures, or invests in these businesses are relevant and influential non-state actors in water management and governance (Christ and Burritt 2018, Klinke and Renn 2019, Sandhu et al 2021. Different water risks can lead to increased operational costs, reputational loss, negative public perception, regulatory actions like moratoriums, fines, and increased scrutiny by stakeholders (investors, employees, customers, regulators, civil society organizations, media, and local communities) (Hogeboom et al 2018, Weber and Hogberg-Saunders 2018, Sandhu et al 2023. Water risks also pose significant implications for financial investors, lenders, and regulators through rising operational and regulatory costs, insurance claims, and production disruptions (Sandhu et al 2021).…”