Global water supply will remain stagnant
Currently around four billion1 people live without a reliable water supply during at least one month of the year. If nothing changes, that number could be much higher in the decades to come and the longer-term costs to society could be even more severe.
What does this mean for investors?
Technology is creating genuine solutions to address the water scarcity challenge.
This provides an opportunity to invest in companies who are responding to this need for change and implementing new, clean technologies into their business practices.
These companies should have a sustainable, competitive advantage by reducing their input costs over the long-term, lowering their water usage, and, consequently, they could see significant growth potential in the decades to come.
In this video, Amanda O’Toole, Strategy Manager, discusses the Earth’s fixed supply of natural resources, the impact that the growing population is having on these resources and how technology is helping to create solutions to these challenges.
How are consumers and customers tackling scarce natural resources?
Source: AXA IM, April 2018. 1. Mekonnen and Hoekstra (2016), Four billion people facing severe water scarcity. Science Advanced, Vol. 2, No. 2: https://www.ncbi.nlm.nih.gov/pubmed/26933676 2.Source: http://www.vossfoundation.org/assets/UNEP_Global_Water_Resources.pdf. 3. Source: http://www.worldometers.info/world-population/world-population-projections/ 4. Source: https://www.un.org/development/ .
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