Concept Note — WaterSolvency.com

This Concept Note is an illustrative framing for the idea of “water solvency”. It is not a policy document, not a scientific paper and not an investment proposal. Its sole purpose is to sketch how the banner WaterSolvency.com could be used to connect water stress, economic models and solvency questions for financial institutions and corporates.

Disclaimer: this note is descriptive and illustrative only. It does not constitute legal, financial, regulatory or investment advice.

1. Why talk about “water solvency”?

For many sectors, water is evolving from an operational constraint to a first-order solvency driver. Droughts, chronic scarcity, deteriorating quality, competing uses and regulatory tightening can all affect:

• the continuity of operations (plants, data centres, logistics),
• the cost of capital expenditure (treatment, storage, recycling),
• the structure of operating costs, margins and cash flows,
• the valuation of assets exposed to high water stress regions,
• the creditworthiness of issuers and projects over long horizons.

The notion of water solvency offers a simple language for boards, risk committees and supervisors to ask: “Can this asset, portfolio or system remain solvent under realistic water stress paths?”

2. Possible building blocks of a Water Solvency framework

2.1. Water stress pathways

A Water Solvency framework could rely on transparent, science-based pathways for:

• Physical water risk (scarcity, droughts, floods, pollution),
• Regulatory and pricing changes (abstraction limits, tariffs, prioritisation rules),
• Socio-political dynamics (conflicts of use, community pressure),
• Technological responses (reuse, desalination, efficiency).

2.2. Transmission channels to solvency

These water pathways can then be linked to standard solvency metrics via channels such as:

• changes in revenues and volumes,
• additional capex / opex to secure water access,
• asset impairments or stranded facilities,
• impacts on credit spreads, ratings and capital requirements.

2.3. From single assets to portfolios and systems

A Water Solvency perspective can be applied to:

• Individual sites or projects (plant, mine, data centre),
• Corporate issuers or sectors (utilities, food, chips, tourism),
• Financial portfolios (banks, insurers, asset managers),
• Local or national systems (basins, regions, countries).

3. Indices, stress tests and observatories

Under the WaterSolvency.com banner, a buyer could imagine several types of initiatives, for example:

• Water Solvency indices summarising the exposure of listed companies, sectors or regions to water stress under specific pathways.
• Supervisory or internal stress-test exercises exploring the resilience of banks and insurers to severe hydrological scenarios.
• Observatories tracking major water stress events, regulatory developments and financial impacts in a consistent way.
• Training programmes for boards, risk functions and sector teams to integrate water into solvency thinking.

Examples above are illustrative only. Any real-world initiative would need its own governance, methodologies and regulatory dialogue.

4. Governance, limits and safeguards

Because water is both a scientific and a socio-political topic, any serious Water Solvency initiative would require:

• Transparent methodologies and clear communication of limits,
• Dialogue with scientists, utilities and regulators,
• Robust governance around data sources and scenario design,
• Explicit separation between analytics and any investment decisions.

The WaterSolvency.com domain name itself does not provide such governance. It is only a digital banner. The buyer remains fully responsible for any frameworks, products or claims built under that banner.

5. The role of WaterSolvency.com as a digital asset

In this context, the WaterSolvency.com domain can play three roles:

• As a neutral, memorable label for programmes, indices or observatories connecting water risk and solvency.
• As a single entry point for boards, supervisors, investors and operators looking for high-level information on “water & solvency”.
• As part of a broader “Global Solvency Framework” architecture alongside domains such as climate, energy or nature solvency, if the buyer wishes to build a family of concepts.

None of this is automatic: the value of the domain depends entirely on the seriousness, credibility and long-term investment of its future owner.

6. Acquisition & next steps

WaterSolvency.com is offered as a descriptive digital asset only. No products, indices, ratings, advisory or software are sold here. Any future framework, index or initiative using the banner would be the sole responsibility of the buyer.

Typical acquisition flow:

• NDA,
• high-level strategic discussion,
• formal offer and escrow,
• technical transfer of the domain name.

© WaterSolvency.com — descriptive digital asset “water & solvency”. No affiliation with rating agencies, regulators or public bodies. Descriptive use only. No legal, financial or regulatory advice.