Hydrating portfolios: investing in water

Water is the most essential resource for life and a key pillar of economic growth and social stability [+]. Its annual economic value is estimated at around USD 58 trillion, close to half of global GDP [+]. However, its availability is increasingly under pressure due to climate change, rising demand and the degradation of ecosystems.

Although water covers more than 70% of the Earth’s surface, only a very small fraction is freshwater that is accessible for human use [+]. At the same time, sectors such as agriculture [+], industry and data-intensive [+] new technologies are driving demand, which could exceed supply by 40% before 2030 [+]. According to the United Nations, the planet has entered the era of “global water breakdown”, as the terms “water crisis” or “water stress” no longer fully reflect the current situation [+].

From this perspective [+], water represents a strategic opportunity. A significant investment gap persists in water infrastructure, sanitation and efficiency, while technological innovation —including network digitalisation, water reuse, desalination and smart agricultura [+]— is beginning to deliver scalable solutions with positive environmental and social impact.

Investors with sustainability preferences can increase their exposure to water [+] by incorporating companies across the water management value chain into their portfolios, as well as GSS+ bonds that include water-related solutions [+].

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