The Development and Application of Water Governance Matrix: A Case of Malaysia

Abstract

The study proposes a framework (in the form of a matrix) to map organisations on their level of water-related risk, taking into consideration 'industry intensity' and 'corporate commitment towards water protection and preservation'. On the basis of Ceres (2011), 'industry intensity' is measured as either low, medium, or high. Furthermore, 'corporate commitment' -measured along the same classification (low, medium, or high) -is based on the extent of corporate disclosure of water policies, initiatives, and performance. These indicators are then aggregated and used to develop a matrix -called Water Governance Matrix (WaGM) -which measures the level of riskiness of an organisation towards water -high (red), moderate (yellow), and low (green). An exploratory study of 30 top public listed companies in Malaysia reveals that only one company falls under the low-risk category, while more than 50% falls under the high-risk category; mainly due to low corporate water disclosure. This innovative matrix is of importance for organisations to monitor and manage their water risk and for stakeholders to make informed investment and other decisions about the organisations.

Water governance disclosure: the role of integrated reporting in the food, beverage and tobacco industry

“…According to Remali et al (2016), it is evident that there is an interdependency that exits between human beings, the ecosystem and a company’s reliance on water to operate, which refers to a social contract between a company and the larger society. Orr et al (2016) confirm this view that the legitimacy of water “governance is not separated from its institutional context and cannot be considered in isolation”.…”