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.
The Clean Water Asia long-only fund will complement a long/short water fund and will be handled by the CRA Management unit of CLSA Capital Partners.
AmKonzen will manage a $320 million fund that will invest in water projects mainly in China and Southeast Asia.
With no alternative to water, its supply is one of the great challenges of the 21st century and therein lies the potential for investors to profit.