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Investors Thirst for Opportunities in the Water Sector
By Michael Schweibinz

Water is vital to our survival. It’s even more important than energy to the health and well-being of the living, breathing occupants of planet earth. And yet water as an investment theme, simply doesn’t get the attention it deserves—not yet, anyway.

Quenching the World’s Thirst for Water, a recent white paper from Calvert Investments, analyzes the global water supply while demonstrating both the severity of the global crisis and the investment opportunities that come with it. The report identifies four key areas that are likely to drive investors toward the water sector:

  • Shrinking supply of a fragile resource
  • Surging global demand
  • Evolving regulatory landscape
  • Technological innovation

Calvert has recognized that investors should be taking a closer look at this precious resource and the financial opportunities that accompany it.

The Calvert report illustrates how action now is vital to our future, and how some countries have taken action by implementing techniques that maximize their water efficiency. China, home of “21% of the world’s population and only 7% of its water supply” has been forced to not only act, but also to make water a priority above all else.

China has focused its efforts on three areas: agriculture, hydropower, and wastewater processing. With China taking major steps regarding its water supply, investment opportunities have been and will continue to be plentiful for shrewd investors. Investments in the water sector from a domestic standpoint could not come at a better time—before our nation’s water source has reached a state of national catastrophe.

According to the Calvert white paper, to replace our existing water infrastructure in the United States alone would take over “900 years, given the current rate of investment.” That statistic is one that will hopefully change, and change rapidly, as investors recognize the challenges, the opportunities, and the positive impacts we can have in the water sector.

First Affirmative agrees that it is a priority for our generation to dramatically improve how we manage fresh water. Now is the time to understand and appreciate how “climate change, the spread of drought conditions, and concerns about inadequate or crumbling water infrastructure will affect our futures.”

 

First Affirmative understands that the ways we save, spend, and invest can dramatically influence both the fabric and consciousness of society. We believe that in addition to the benefits of ownership, investors bear responsibility for the impact our money has in the world. Are you making conscious decisions about the impact of your consumer purchase and investment decisions?

 

Mention of specific companies or securities should not be considered a recommendation to buy or sell that security. Past performance is no guarantee of future results.

Posted: December 11, 2013