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The Water score of this Portfolio is 73

Water

The Globalance Footprint® shows you the impacts of your assets around the world - individually and at a glance. Our framework is simple and objective. Using nine themes, we assess your contribution to sustainable foundations for economic prosperity, the future viability of society and the preservation of our natural resources.

73

Water

0%

of this invested capital features an adverse footprint in Water.

20%

of this invested capital features a balanced footprint in Water.

80%

of this invested capital features a positive footprint in Water.

What is at stake

Where there’s water, there’s life. A sufficient supply of water is one of the most important basic necessities of life. It is also clear that water safety and the distribution of water throughout the world are subject to tremendous changes. The causes of this are to be found in the systematic squandering of water and disruptions in water circulation (or, as it were, the depletion of fossil water reserves) through human beings and climate change. Of great necessity here is the reduction of water consumption or an increase in water-use efficiency. Sizeable investments in infrastructure are necessary for the treatment and distribution of water. The degree of «water stress» varies by region and depends on the given geographics, population and economic structure.

Water Scores of your Assets

73

Portfolio Footprint Score

0100

Data source: Globalance

 
Asset Name
Water
Environment
Total Footprint
% of portfolio
Globalance Climate Offset8383763.0%
Sims Ltd.8066661.6%
ams AG7364651.3%
Umicore4556521.5%

Why does it matter

Global Challenges

  • A shortage of water, with especially dramatic consequences for already disadvantaged regions and people

  • Depletion of fossil water reserves

  • Political tensions over access to water reserves

  • Gaps in energy supply, as water and energy are directly interrelated (e.g. hydropower, cooling water).

Global Goals

  • Reduced water consumption

  • Protection of groundwater (especially fossil water sources)

  • Increased water efficiency through closed circuits

  • Sustainable water infrastructure (incl. treatment, transport, distribution, production)

  • Safety of the drinking water supply

  • Sufficient supply for agricultural use (70% of the global drawdown)

Relevance for Investors

Food and commodities are very water intensive products. Virtual water content of products is an important measure of water consumption that often goes unnoticed by consumers. Water is becoming increasingly scarce globally. Global warming and changes in precipitation patterns are likely to accelerate this development even if water is managed more efficiently. With increasing scarcity, this resource will become more expensive, a development that is relevant in investment decisions. The manufacturing process of most products will always depend on water inputs at some stage of the production chain. Companies that adapt their production processes to minimize water utilization close their water-cycles and think of alternative input materials with lower water intensity, are better prepared for this inevitable development.

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