Water: How to address the looming water crisis?

Rising water stress requires attention

With five oceans and seven seas, 71% of the earth’s surface is covered by water[1]. Yet, 3.1 billion individuals are living in areas with “high” or “extremely high” risk of water stress[2]. Besides, the quality of water sources is degrading due to pollution. It is our health and our food security that are under threat!

 

Changing our diets will not be enough

Agriculture accounts for over 70% of global freshwater withdrawals[3]. We already knew about the outrageous carbon footprint of our piece of meat, did you know that its water footprint is ten times that of cereals?

To solve the water crisis, shifting to more water-conscious diets will not be enough. We need to transition to more sustainable agricultural systems. From water-smart cropping to smart agriculture technologies, such as precision irrigation techniques, solutions exist and represent potential investment opportunities for investors.

And besides agriculture, industry also offers room for water savings ! Power generation is particularly water-intensive and industrial closed water loop systems can substantially reduce water use.

 

[1] Source: National Geographic https://education.nationalgeographic.org/resource/ocean/
[2] World Resources Institute (2023)
[3] The United Nations World Water Development Report (2023)

;
Bastien Dublanc & David Czupryna
Senior Portfolio Managers, Thematic Equity strategies
It is paramount to use more water-conscious practices in agriculture and industries. New technologies may also offer potential solutions to help bridge the water gap by optimizing water usage.
Paint It Blue

How to address the looming global water crisis?

To read about many more examples, and about why we believe the Water investment theme can span over decades, check our white paper !

Find it fast

Get information faster with a single click

Get insights straight to your inbox