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The report examines the 'water-energy nexus,' where water scarcity threatens energy production and energy costs impact water provision. It analyzes three case studies: the Middle East and North Africa's reliance on energy-intensive desalination, China's coal-fired power plants facing high water stress, and the United States' water-intensive hydraulic fracturing for shale gas. The document argues that companies can mitigate these risks by shifting from expanding supply to reducing demand, scaling alternative water sources like reclaimed wastewater and brackish water, and adopting clean energy resources such as solar and wind.

The study examines the water-energy nexus in Qingdao, finding that while unconventional water sources like seawater desalination are necessary to meet growing demand, they significantly increase energy intensity and carbon emissions compared to local surface water.