A Transformational Framework for Water Risk
DWS, as part of a working group on ‘Transformational Investment’ organised by the World Economic Forum (WEF), published a report with an institutional framework on addressing water risk across asset classes-
Water is a finite resource with only 2.5% potentially being usable for life on earth. In the past 100 years, water per capita has decreased significantly as a result of population growth while water quality has deteriorated. Today, 785 million people lack a basic water-drinking source and two billion people use a contaminated drinking water source.
Water risk is understood at the macro level. However, failure to properly address water risks is likely due to factors, including (i) the fragmented nature of water regulation, (ii) the characteristics of water investments, and (iii) our misplaced belief that water is plentiful and cheap.