July 25, 2018

Investing in What We Need: Water

  • Two-thirds of the world’s population is projected to face water scarcity by 2025.1
  • In some countries already, less than half the population has access to clean water. 2
  •  80% of all illness in the developing world is water-related.3

Water has no substitute. With water resources becoming more scarce and populations facing issues of pollution and drought, water is becoming a precious commodity. But unlike commodities such as gold or steel, water is essential for life. Every sector of the economy depends on water, from agriculture to industrial, and of course, we need it to survive on a daily basis.

By now, most people are aware of how desperate the water situation is becoming. What we really need are solutions to the crisis. Those solutions do exist, and one of our goals is to find them and help develop them, as we believe they present opportunities for both changing the world and generating financial returns. Water is a unique investment opportunity because of the range and variety of solutions, including companies that are:

  • Innovating ways to draw potable water from water vapor in the air
  • Using micro-irrigation systems that lead to 30-70% savings vs. traditional flood irrigation
  • Using UV disinfection to improve water quality
  • Designing innovations in desalination and water recycling
  • Purchasing farms with low-yield, water-intensive crops, and repurposing excess water
  • Upgrading failing infrastructure where water gets “lost” in the utilities’ systems

The situation looks challenging, but human ingenuity is already leading the way to changing the future. We’re excited about the possibilities, and energized to share the opportunities we are discovering with investors.

Arnerich Massena has been focusing research on thematic impact investments in the areas of water, resource efficiency, agriculture, and life sciences – all of which we categorize as “what we need,” which we believe are going to become ever more central as the future unfolds.

Ask us about the current opportunities we are investigating, and look for upcoming blog posts diving into each of these themes – water, resource efficiency, agriculture, and life sciences – and the potential they present for investors.

Sources:

1 https://www.thenational.ae/uae/environment/two-thirds-of-world-population-face-water-scarcity-experts-warn-1.267983

2 https://www.unicefusa.org/infographic-world-water-crisis 

3 http://www.cnn.com/SPECIALS/road-to-rio/secret-life-drinking-water/