This report contributes to a broader body of OECD work on water, biodiversity, and climate, with a particular focus on the economic and financial dimensions of environmental risk. It supports governments and financial authorities in understanding how freshwater-related risks, stemming from scarcity, pollution, floods, and the degradation of water-related ecosystems, can undermine economic resilience and financial stability. It builds on the OECD’s longstanding work on water policy, while extending this agenda to the financial system and macroeconomic policy frameworks.
The report provides practical guidance on how water-related risks can be integrated into financial supervision and macroeconomic decision-making. It draws on emerging tools and research, to highlight the financial relevance of freshwater - both blue water (surface and groundwater) and green water (soil moisture and rainfall). The report identifies systemic vulnerabilities linked to freshwater degradation and outlines actions that central banks, supervisors, and policymakers can take to align financial governance with water resilience. The report aims to inform more coherent, forward-looking policy responses for water across both environmental and financial domains.