SELECTED
Water Sustainability Impact Investment Instruments
Cyan Reef is not compensated in any form by the product issuers featured. All the opinions and evaluation are our own.
Water is a key resource and growing demand from a rapidly-expanding global population, coupled with an unrelenting requirement from industry and agriculture, has focused the worlds’ attention on how these scarce water resources are managed.
Beyond drinking water, which is essential for human survival, water is an indispensable resource for many industrial processes such as food, chemical and pharmacy, textile, semiconductor and pulp & paper. Consequently, there is an ever-increasing demand for investments in water infrastructure and technology from all stakeholders: individuals, companies and states. Studies indicate that long-term growth in the water industry is expected to be 3-5% per year in developed countries and more than 10% per year in developing countries. “Global water demand will more than double by 2050”, – MSCI ESG Research (2014).
Understanding the profit drivers
- Long-term growth drivers. There is no substitute for water, while water consumption keeps rising. Stricter global regulations are leading to massive investment (estimated more than USD11.7trn by 2030).
- A USD 500 billion market centered around three sectors: Utilities (supply and distribution), infrastructure (pipes, irrigation, etc.), technology (purification, destination, etc.).
- Innovative, value-generating companies. The water sector is linked to many different industries and drives technological innovation with the arrival of newcomer. The market has undergone considerable restructuring which has seen the emergence of solid, sustainable companies.
We evaluated investment instruments on the features that matter most to different types of investors looking to invest in water resources access and sustainability. The following are some of the water-themed investment funds.
