Investors interested in helping to solve water-related challenges in their portfolio have access to a range of funds with this objective, Dominic Rowles, lead ESG analyst at Hargreaves Lansdown, has said.
These include funds that invest in companies across all stages of the water value chain, from those creating pumps and valves for the water intake process, through to those offering wastewater treatment and recycling services.
This results in a portfolio that looks very different to an average global equity fund, with over 75 per cent invested in the industrials and utilities sectors.
For some investors, a sustainable fund that invests across an array of sectors might be more appropriate.
There are also impact funds, which aim to make a positive difference to the environment and society through the way it invests, focusing on sustainable themes such as water management, resource efficiency, education and wellbeing.
August 20 marked the start of World Water Week, an annual event that gathers policymakers, academics and industry to discuss global water challenges and devise innovative solutions.
A recent study by Kingfisher, owner of B&Q and Screwfix, in partnership with economics consultancy Cebr, found that by 2030 seven regions in England are set to be severely water-stressed.
The West Midlands, London, parts of the South West, the East Midlands, the East of England, and the South East are all regions expected to be severely impacted, while the North West, the North East and Yorkshire and the Humber will be less vulnerable to severe water stress.
Rowles added: “We use a truly staggering amount of water, and we use it in more ways than you might think. One of the most obvious ways is to keep clean.
“A 10-minute shower will use around 264 litres of water. But there are lots of less obvious uses too. A mobile phone, for example, takes around 1,000 litres of water to create. A chocolate bar takes 1,700 litres, and a leather tote bag takes over 17,000 litres.
“Despite our substantial water use, one in three people globally live in areas impacted by water scarcity. Climate change, conflict and inefficient water management are among the leading causes.
"Meanwhile global population growth means water demand is expected to rise 55 per cent by 2050, by which time the number of people without access to clean drinking water is expected to double."
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