A guide for risk, sustainability and finance teams on how to mitigate Water risk. We map the Water risk landscape in Germany and Europe, show which Nature-Based Solutions work, and make visible who is already acting.
In early 2026, the United Nations University released the Global Water Bankruptcy Report - and the title is not a metaphor. For the first time, a UN body describes humanity as using more Water than the planet can renew in the long run. Europe is clearly in the red.
Droughts, floods and Water restrictions have long been a reality here. What is new is the assessment: Water is becoming the decisive risk for people, ecosystems and economies.
Aquifers are emptying faster than they recharge. Wetlands - Europe’s largest natural Water stores - have lost more than half of their area. Storm and drought damages are reaching a scale that is no longer insurable in many places. The bill is no longer paid by states alone. It lands on companies, supply chains and investments.
This page is part of our briefing for risk, sustainability and finance teams. It shows where Germany and Europe stand on Water, what role Nature-Based Solutions play, and how companies are already responding to the new risk landscape.
The following figures come from studies by the European Central Bank, the European Environment Agency, the United Nations and other scientific institutions. They show why Water has become a material risk to society and to business.
Between 2002 and 2022, Germany lost an average of 0.76 km³ of Water per year, about 15 km³ in total, according to satellite data analysed by GFZ Potsdam.
GFZ Helmholtz Centre for Geosciences (2023), Güntner et al., Hydrologie & Wasserbewirtschaftung 67(2)Nearly 75% of corporate bank loans in the euro area go to companies highly dependent on at least one ecosystem service, such as Water. Nature loss can therefore become a credit risk.
European Central Bank (2023), The economy and banks need nature to surviveOnly about a quarter of climate-related disaster losses in the EU are insured, and in some countries less than 5%. The rest falls on companies, households and public budgets.
ECB & EIOPA, The climate insurance protection gapEU residents live in areas affected by Water scarcity for at least part of the year.
European Environment AgencyEurope has lost more than half of its wetlands since 1700, and more than 75% in several countries, mainly through drainage for farming and forestry. With them went a large share of the continent's natural Water storage.
Nature (2023)of German emissions are caused by drained peatlands. When peatlands dry out, they lose their ability to store carbon. Instead of capturing CO₂, they release it.
German Federal Ministry for the Environment - Peatland protectionThe Water risk landscape in Europe is changing fundamentally. Declining groundwater levels, climate-driven precipitation volatility and aging infrastructure make Water a material, reportable risk for companies with affected sites, supply chains or financing.
Nature-Based Solutions (NBS) protect, develop or restore ecosystems. In doing so they strengthen the Water balance, climate and biodiversity at the same time. More and more companies invest in these natural functions to reduce Water risk and make sites more resilient. The following practical examples show how:
A regional beverage company funds the rewetting of the peatland upstream of its bottling plant - by closing drainage ditches and raising the Water table.
The peatland stores significantly more Water in the catchment again (Resource) and buffers summer drought and flood risk in the region (Risk & Resilience) - while the wider public benefits from better climate, biodiversity and Water (Responsibility).
A European data-centre operator converts an upstream spruce monoculture into a mixed sponge forest. With wet biotopes and riparian zones, the forest delivers slower runoff and deeper infiltration.
Groundwater recharge stabilises, permits are not at risk (Risk), the site can plan for Water in the long term (Resource) and contributes to protection against erosion and flooding (Resilience & Responsibility).
From data centres to real estate: companies are already responding to rising Water risk. The following public examples give an insight into the challenges and solution approaches of different sectors.
Hyperscalers (AWS, Microsoft, Google) pursue so-called “water-positive” strategies: they aim to give back more Water than they consume. Catchment restoration is now a fixed component of new-site approvals in many regions.
Chemical, automotive and semiconductor companies face growing risk where cooling and process Water is not available long term. Protecting local Water resources is moving from CSR to operational site strategy.
Beverage and dairy companies increasingly report how much Water they return to local ecosystems. Assessed Water replenishment contributions are becoming a measurable part of their Water strategy.
Flood-prone real estate and infrastructure face rising insurance and ESG pressure. Nature-Based Solutions such as catchment restoration help reduce physical risk and are gaining weight in CSRD reporting.
Three European frameworks turn Water risk from a voluntary ESG question into a reportable and financially relevant figure.
CSRD / ESRS E3. The CSRD obliges large companies to report on sustainability. The ESRS E3 standard for Water and marine resources requires disclosure of Water-related risks, dependencies and impacts - both in own operations and along the value chain.
EU Nature Restoration Regulation. This regulation obliges member states to progressively restore wetlands, peatlands and freshwater ecosystems by 2030, 2040 and 2050. Demand for restoration projects rises accordingly, and investments in Nature-Based Solutions gain long-term political backing.
EU Taxonomy & SFDR. Activities contributing to the sustainable use and protection of Water are eligible under the EU Taxonomy. This improves access to green capital, lowers financing costs and feeds directly into SFDR investor reporting.
Sources: This briefing aggregates publicly available studies and reports from the European Environment Agency, European Commission, European Central Bank, the United Nations as well as sector and corporate reports.
We translate Water risk into concrete, locally anchored nature projects. Together with municipalities, authorities and scientific partners we develop Nature-Based Solutions that last. Every project is accompanied by our hydrologists. Its impact on the Water balance, climate and biodiversity is measured with the Volumetric Water Benefits (VWB) methodology and documented transparently - not just promised.
Improved CO₂ capture and long-term carbon storage through healthy forests, peatlands and other ecosystems.
Protection and development of endangered species and habitats, in line with the national biodiversity strategy and the EU Nature Restoration Regulation.
Improved soil moisture, higher filtration capacity, less erosion and natural cooling effects.
Natural floodplains reduce peak runoff in risk regions.
Share your sites and priorities with us. Within 72 hours you receive a non-binding first assessment with matching project options and possible contribution models.