With water on the official agenda for the first time at the recent UN Climate Change Conference in Egypt – otherwise known as COP27 – its increased focus was evident. Csaba Kőrösi, President of the UN General Assembly, summarised this importance perfectly with the statement: “This is the water COP”, to a high-level plenary at a session on 15 November.
Mr. Kőrösi also spoke at an opening session on 14 November, COP27’s “Water Day”, which provided new and important opportunities for raising awareness around the strong link between water and climate resilience, and for placing water at the heart of climate action.
Our EM Equity team has long regarded water reduction as the next widely-debated environmental issue. And from an investment standpoint, our analysis of impending water shortages in emerging markets, and how these may impact various industries, is a key part of our ongoing research.
Many global manufacturing sectors are hugely reliant on water and water scarcity, water pollution, low water tariffs and geopolitical tensions and droughts are issues that can hugely affect industries in emerging countries. There is also growing concern among the public that large industrial concerns which use up to 30% of the planet’s fresh water should be more vigilant about their consumption.
The UNPRI postulates that water is a finite shared resource, as well as a basic human right. Yet, increasing demand, climate change and pollution are putting pressure on global water resources.
In our full report below, Veronique Erb, Portfolio Manager, considers three important questions to help address the future of water:
- What water issues do we face?
- Which industries are most affected?
- What questions on water usage should we be asking the companies in which we invest?
Which three industries are most affected by water issues? Read our report here.