MESSAGES FROM TRASTA ESG

Dear Readers,

Water is the foundation stone of life. However, global warming, population growth, and reckless consumption are rapidly depleting the world’s water resources. That is why we have dedicated this issue of our bulletin to water, a vital concern for all of us.

The year 2024 has seen worsening water crises and an increase in water-related disasters. The global water system is under severe threat due to climate change and human activities. In 2024 alone, more than 8,700 people lost their lives and 40 million people were displaced due to water-related disasters. Water scarcity and drought have reduced global food production by 30%.

Global warming exacerbates the water crisis. Rising temperatures increase evaporation, rivers and lakes dry up, and groundwater levels decline. All these developments indicate the urgent need for immediate action regarding water. To ensure water sustainability, both individual and corporate measures must be taken to reduce pressure on water resources.

We must remember that water can only be protected while it still exists.

Stay sustainable…

ÖZGÜN ÇINAR, CEO

ESG NEWS

  • The first comprehensive assessment of the risk of extinction of freshwater species, now published in the journal Nature. The authors conclude that close to a quarter (24 percent) of freshwater species are threatened with extinction. That is, they have been officially assessed as vulnerable, endangered, critically endangered or extinct in the wild. DETAIL
  • The Platform on Sustainable Finance (PSF) has launched a public consultation to gather feedback on updates to the EU Taxonomy, the EU’s classification system for defining sustainable economic activities. DETAIL
  • London’s Heathrow airport announced an increase in its Sustainable Aviation Fuel (SAF) incentive scheme, with plans to make £86 million (USD$104 million) available to airlines to help cut the price gap between SAF and traditional jet fuel, and to scale the use of SAF at the airport to 3% in 2025. DETAIL
  • The International Finance Corporation (IFC), a member of the World Bank Group, has issued its largest-ever social bond—a $2 billion, three-year bond aimed at supporting low-income communities in emerging markets. This issuance also marks the largest US dollar-denominated social bond ever by a supranational, with a record $11 billion orderbook. DETAIL
  • A “historic” drought in Suriname’s interior has dried up rivers, triggered food and water shortages, and disrupted communities’ access to transport, health care and education. DETAIL
  • A group consisting of Europe’s leading companies, investors, and industry associations has sent a letter to European Commission leaders, expressing concerns that the new rules in the EU’s “Omnibus” package, which coordinates the bloc’s new sustainability reporting and due diligence laws, could weaken regulations, undermine business confidence, and hinder investments in this area. DETAIL
  • The U.S. Federal Reserve (Fed) has announced its withdrawal from the Network for Greening the Financial System (NGFS), a global coalition of central banks aimed at collaborating on climate and green finance issues. DETAIL
  • A recent CDP corporate survey revealed that 80% of companies on track to meet their climate targets now link executive compensation to achieving these goals. This highlights the importance of governance and strategic action in driving progress toward environmental objectives. DETAIL
  • According to BBC News, scientists from the UK Met Office stated that atmospheric carbon dioxide levels increased faster last year than ever before, and this rise is “inconsistent” with the targets set by the Paris Agreement. DETAIL
  • According to a study published in Communications Earth and Environment, Arctic “ice roads”—temporary routes formed by snow accumulation that serve as lifelines for isolated communities—are declining due to climate change and are likely to decrease further this century.DETAIL

🍃GREEN COLUMN🍃

GLOBAL WATER STATUS 2024: CRISES, SOLUTIONS, AND OUR RESPONSIBILITIES

The world’s water resources are under increasing pressure each year due to the effects of climate change. The year 2024 has been a period in which extreme weather events significantly impacted the water cycle, revealing that the global water cycle is under serious threat. Losses of life and property caused by floods, droughts, and extreme weather conditions have once again highlighted the urgency of the water crisis. According to the Global Water Monitor (GWM) 2024 Report, severe changes in precipitation patterns have led to major fluctuations in river flows and extensive water losses. Rising temperatures have reduced soil moisture, while lake levels and groundwater have dropped to critical levels.

In 2024, the average precipitation over land was close to the 1995-2005 period’s average; however, extremely dry months increased by 38%. Extreme daily rainfall events rose by 52%, with record precipitation observed in West Africa, Europe, and Asia. Additionally, ten-year trends indicated a 4% increase in daily rainfall records. The effects of drought were particularly severe in South America and Africa. Many regions of South Africa experienced rainfall levels 50% below normal, significantly impacting agricultural production.

Land surface temperatures in 2024 reached record highs, with 111 countries setting new temperature records. The average global temperature was 1.2°C higher than the 1995-2005 period. Frost days declined to an all-time low, a phenomenon especially pronounced in tropical regions. Rising temperatures also affected humidity levels. Air humidity dropped in South America and Central Africa, intensifying regional droughts. In contrast, excessively high humidity levels in West Africa and South Asia contributed to heavy rainfall and flooding.

Instability in river flows increased. According to the GWM report, river discharge records in 2024 showed a 21% increase compared to 2001. South America and Central Africa recorded historically low water reserves. The water level in the Nile River rose, causing widespread flooding in Sudan and Egypt. Meanwhile, major river systems in Brazil and Colombia experienced significant declines in discharge levels, threatening hydroelectric energy production.

In 2024, water-related disasters caused the deaths of over 8,700 people, displaced more than 40 million, and resulted in a total economic loss of $550 billion. Damages caused by tropical cyclones in the U.S. and Southeast Asia amounted to $520 billion. Wildfires and droughts destroyed 52,000 km² of the Amazon rainforest. Meanwhile, severe monsoon rains in Asia, particularly in Bangladesh and India, displaced millions of people. These events disrupted agricultural production, leading to sharp increases in food prices. In Africa, drought halved agricultural output, escalating the risk of famine and increasing the demand for humanitarian aid.

Looking ahead to 2025, droughts are expected to intensify in regions such as South America, Southern Africa, and Central Asia, while flood risks will rise in areas like the Sahel and the Horn of Africa. Monitoring water resources, developing water efficiency strategies, and implementing innovative water management policies have become more critical than ever. Cooperation among governments, the private sector, and civil society organizations is now a top priority to effectively manage the water crisis and ensure a sustainable water system for future generations.

The integration of smart technologies and renewable energy sources in water management is essential for protecting water resources and minimizing water losses. Additionally, expanding community-based water conservation and recycling projects can play a key role in mitigating the effects of the water crisis.

DAMLA GÜNALP, SUSTAINABILITY ASSISTANT SPECIALIST

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