The sustainability advocacy group Ceres has released a new disclosure framework intended to help investors assess risks when purchasing utility bonds. The group reports that the framework responds to investor concerns about how water utilities are managing risks such as vulnerable water supplies, environmental pressures and declining revenues.
Ceres created the new framework with the help of stakeholders on both the buying and selling ends of the bond market – including water and wastewater utilities. The framework includes six key disclosure areas on which water utilities would report to help investors better identify risks before purchasing bonds. These areas are water supply security; demand management; asset management; water quality; energy use and generation; and water rates.