The Role Investors Play in Addressing Global Water Challenges

by Suleyman Saleem, VP and ESG Senior Research Analyst, Calvert Research and Management

Responsible investors seek the potential for long-term value creation and positive impact throughout the global capital markets. In doing so, asset managers like Calvert look to invest in companies and other issuers that balance the needs of financial and nonfinancial stakeholders as well as demonstrate a commitment to the global commons and to the rights of individuals and communities. Climate change has been a key investment strategy focus, as more investors subscribe to the overwhelming conclusion of climate scientists that the Earth’s climate is warming, and human activity is the primary driver of this warming.

Amid all of the key factors related to climate change, water stands out as the most nuanced – it is both a symptom and a cure. Higher atmospheric temperatures are one of the primary culprits of climate change, causing the expansion of sea water and melting of polar ice, which are projected to raise global sea levels.

In certain regions, water scarcity will likely continue to emerge as a threat to daily life. Different regions face different problems such as access to clean drinking water and adequate wastewater treatment in more agricultural regions and infrastructure and water distribution challenges in cities. Similarly, companies face their own water-related challenges based on what they produce and where they are located. But water also has some of the greatest potential to mitigate the effects of climate change by decarbonizing power generation, industry and transport – which, in total, comprise over 65% of global greenhouse gas emissions.

This naturally leads to the question of the role companies and investors can play. Here are a few answers from the four key areas we focus on... 

Read his complete article here - https://greenmoney.com/the-role-investors-play-in-addressing-global-water-challenges

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