With one of the worst droughts in China since records began 60 years ago, asset owners and managers are weighing more seriously the material risks of the water crisis.
Impact investing aims to identify businesses and organisations pursuing purpose-led activities serving the needs of the global economy and environment. A thematic approach to impact investing seeks to identify opportunities created by pressing issues that can be identified as megatrends – including climate change, access to water and pandemics.
Water scarcity is emerging as a major climate challenge for institutional investors. While most attention is on the coronavirus impact, this stands to be a big longer-term concern.
SAM, an investment boutique focused exclusively on sustainability investing, expects the water industry to continue to grow faster than global GDP, especially in Asia.