Water insecurity plays a driving role in conflicts and famines around the world, while water pollution and scarcity pose long-term economic threats to developing and developed nations alike. And institutional investors around the world have noticed: Water ranks among their top three environmental, social and governance (ESG) concerns, according to the 2019 RBC Global Asset Management Responsible Investment Survey. About two-thirds of about 800 institutional investors surveyed in the United States, Canada, Europe and Asia said concerns over water factored into their investment decisions, placing it behind only cybersecurity and anti-corruption as a top ESG consideration. Water was a particular focus in Europe, where 84 percent of investors said it was a concern. In Canada, 66 percent of investors listed water as a concern, placing it on par with leading ESG factors like anti-corruption and executive compensation. In the U.S., 63 percent of survey respondents pointed to water concerns, behind only anti-corruption and cybersecurity.
The World Economic Forum (WEF) for years has listed water as a driver of global risk, for everything from conflict to health crises and mass migration. As one of the United Nations’ Sustainable Development Goals, water security has been a central component of global development work. The WEF Global Risk Report has listed water crises among its biggest risks for eight straight years; in 2018 it ranked behind only weapons of mass destruction and failure to mitigate or adapt to climate change. In 2017 alone, the organization named water as a major factor in conflicts in 45 countries. But it’s not only war-torn and developing countries that face major water-related challenges. To view the full article visit Green Biz.