New Index Shows Small Utilities Are More Vulnerable to Climate Hazards

A new analysis from Carnegie Mellon University reveals a significant disconnect between the physical risks facing U.S. water infrastructure and the financial planning intended to support it. By creating the first "Drinking Water Utilities Climate Risk Index," researchers assessed over 1,400 utilities and found that systems serving 67 million Americans are at "high risk" for climate disruptions like drought, flooding and extreme heat. Despite this exposure, 36% of the municipal bonds issued by these high-risk utilities — representing $9.2 billion in debt — fail to mention climate change in their financial disclosures. For the trades, this gap signals potential volatility in project