sei-wp-2016-07-tci-methodology-indicator-8-note-68f23e3a6b4bd210.pdf

This methodology note describes the development of Indicator 8: Embedded water risk, a supplement to SEI Working Paper No. 2016-07. The indicator uses the IOTA (Input-Output Trade Analysis) model and WRI Aqueduct data to assess the relative water risk associated with the consumption of agricultural commodities embedded in international supply chains.

• The IOTA model is a hybridized physical-financial multi-regional input-output (MRIO) model that links the production of raw agricultural commodities to final consumption. It utilizes financial MRIO tables from the Global Trade Analysis Project (GTAP) covering 57 industrial sectors across 129 global regions, combined with physical production and bilateral trade data from the FAO.
• To estimate country-level water risk, the methodology employs two distinct indicators based on WRI's Aqueduct database: one calculating Baseline Water Stress (BWS) at an aggregate national level by dividing total water withdrawal by total blue water availability, and another calculating the proportion of a country's land area subject to a BWS score of 3 or greater (including 'arid' areas).
• The two water risk indicators can produce contrasting results for the same country. For example, Egypt scores 1 (low risk) on the aggregate national BWS indicator because 97% of its water withdrawal occurs in sources classified as 'Low' (primarily the Nile), yet it scores 0.81 (high risk) on the land area indicator because those sources only cover 19% of the country's total land area.
• The methodology defines 'high risk' for consumption based on specific thresholds: a national-level BWS score of 3 or more for Indicator 1, or more than 50% of a country's land subject to a BWS score of 3 or more for Indicator 2. A variant of these indicators further restricts 'high risk' to countries where data indicates the specific commodity of interest is irrigated.
• Analysis of maize and rice consumption reveals different risk profiles. Maize consumption in Mexico, southern Africa, and south and central Asia shows a high reliance on production from high-risk areas, while European consumption is at intermediate levels and South American consumption is generally low. For rice, risk is relatively increased in North America, Europe, and northern and eastern Africa, though central and south Asia remain the highest risk areas.

APA

Stockholm Environment Institute (n.d.). sei-wp-2016-07-tci-methodology-indicator-8-note-68f23e3a6b4bd210.pdf. https://www.sei.org/mediamanager/documents/Publications/Climate/SEI-WP-2016-07-TCI-Methodology-Indicator-8-note.pdf

Chicago

Stockholm Environment Institute. sei-wp-2016-07-tci-methodology-indicator-8-note-68f23e3a6b4bd210.pdf. n.d. https://www.sei.org/mediamanager/documents/Publications/Climate/SEI-WP-2016-07-TCI-Methodology-Indicator-8-note.pdf.

Wikipedia

{{cite report |author=Stockholm Environment Institute |title=sei-wp-2016-07-tci-methodology-indicator-8-note-68f23e3a6b4bd210.pdf |url=https://www.sei.org/mediamanager/documents/Publications/Climate/SEI-WP-2016-07-TCI-Methodology-Indicator-8-note.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{stockholmenvironmentinstitutendseiwp201607tcimethodologyindicator8note68f23e3a6b4bd210pdf, author = {{Stockholm Environment Institute}}, title = {{sei-wp-2016-07-tci-methodology-indicator-8-note-68f23e3a6b4bd210.pdf}}, institution = {Stockholm Environment Institute}, url = {https://www.sei.org/mediamanager/documents/Publications/Climate/SEI-WP-2016-07-TCI-Methodology-Indicator-8-note.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }