This content is available after accepting the cookies.
A quarter of the world’s population already live in countries facing extreme water stress. By 2030, worldwide demand for water will be a staggering 40% higher than it is today, on current trends.
Much of the risk comes from industrial usage, through manufacturing activities or the transportation of products. It’s estimated that nearly two-thirds of water consumption goes into corporate supply chains.
Companies and investors must aim for water neutrality in order to tackle this crisis. Their water consumption should not exceed nature’s ability to replenish water sources. Pollution levels should be no more than is acceptable for human health and environmental ecosystems.
This content is available after accepting the cookies.
A quarter of the world’s population already live in countries facing extreme water stress. By 2030, worldwide demand for water will be a staggering 40% higher than it is today, on current trends.
Much of the risk comes from industrial usage, through manufacturing activities or the transportation of products. It’s estimated that nearly two-thirds of water consumption goes into corporate supply chains.
Companies and investors must aim for water neutrality in order to tackle this crisis. Their water consumption should not exceed nature’s ability to replenish water sources. Pollution levels should be no more than is acceptable for human health and environmental ecosystems.
Investors must complete water risk assessments and actively engage with companies to ensure they are pursuing sustainable principles throughout their supply chains. It’s also vital that investors work with policy makers and NGOs to help change the dial.
We are all responsible for making this happen at speed. Cardano has 30 years’ experience of sustainability and is committed to achieving water neutrality in our own portfolios by 2030, to support our clients in playing their part.
This content is available after accepting the cookies.
Why water is a material risk for investors
The rapid depletion of the world’s water supplies represents a major risk to investors and portfolio companies.
Companies need water for their production processes. Severe shortages could lead to production interruptions, as well as conflict with competitors and the local population.
Water treatment costs could also potentially rise, due to an increase in pollution levels.
Why water is a material risk for investors
The rapid depletion of the world’s water supplies represents a major risk to investors and portfolio companies.
Companies need water for their production processes. Severe shortages could lead to production interruptions, as well as conflict with competitors and the local population.
Water treatment costs could also potentially rise, due to an increase in pollution levels.
This content is available after accepting the cookies.
This content is available after accepting the cookies.
Creating a water-neutral investment portfolio
Cardano aspires to achieve water neutrality in our direct investments by the end of the decade. Water neutrality is especially critical in high-risk countries where water is scare and in biodiversity rich countries. Direct investments are direct company exposures through debt or equity, not exposures through third party investment managers or derivatives.
We assess a company’s water management strategy by considering both its level of exposure and its management of the risk, including designing policies and setting targets to reduce water use.
This content is available after accepting the cookies.
Creating a water-neutral investment portfolio
Cardano aspires to achieve water neutrality in our direct investments by the end of the decade. Water neutrality is especially critical in high-risk countries where water is scare and in biodiversity rich countries. Direct investments are direct company exposures through debt or equity, not exposures through third party investment managers or derivatives.
We assess a company’s water management strategy by considering both its level of exposure and its management of the risk, including designing policies and setting targets to reduce water use.
Our screening process involves proprietary methodology and unfortunately water data is not widely available on many of those companies but we are working with data providers to increase coverage. The companies that do disclosed data are judged on their ability to transition to a more sustainable world – and whether or not they are making sufficient progress to get there.
This content is available after accepting the cookies.
The vital role of stewardship
Cardano views stewardship as the active management of capital to encourage long-term value creation. It’s not just about the long-term financial value of our portfolios, but also the lasting value and benefits for the environment, society and other stakeholders.
We use a range of different tools, including company engagement, voting and, where necessary, filing shareholder resolutions. We also use our voice in public policy participation to encourage improvements within companies and the broader economic system.
The vital role of stewardship
Cardano views stewardship as the active management of capital to encourage long-term value creation. It’s not just about the long-term financial value of our portfolios, but also the lasting value and benefits for the environment, society and other stakeholders.
We use a range of different tools, including company engagement, voting and, where necessary, filing shareholder resolutions. We also use our voice in public policy participation to encourage improvements within companies and the broader economic system.
This content is available after accepting the cookies.
Related News
How do you value an elephant?
Reading time: 5 minutes
Sustainability is dominating Trustees’ agenda with climate change squarely at the top. But the other side of the climate change coin is biodiversity loss, a topic that deserves Trustees’ attention in its own right, with many experts considering it a threat more serious than climate change. Read the article by Will Martindale which appeared in the Pensions Management Institute’s Environmental, Social & Governance Report 2022.
How can a Chief Sustainability Officer most effectively support a firm in achieving sustainability objectives?
Reading time: 6 minutes
Based on Will Martindale’s experience, he has written his top 10 learnings on how a Chief Sustainability Officer (CSO) can most effectively support a firm in achieving its climate and sustainability objectives.
Sustainability: Emissions are rising – and will continue to rise
Reading time: 2 minutes
Sustainability: Emissions are rising – and will continue to rise. Globally, we will emit more this year, than last year, and more next year than this year.
Sustainability is dominating Trustees’ agenda with climate change squarely at the top. But the other side of the climate change coin is biodiversity loss, a topic that deserves Trustees’ attention in its own right, with many experts considering it a threat more serious than climate change. Read the article by Will Martindale which appeared in the Pensions Management Institute’s Environmental, Social & Governance Report 2022.
How can a Chief Sustainability Officer most effectively support a firm in achieving sustainability objectives?
Reading time: 6 minutes
Based on Will Martindale’s experience, he has written his top 10 learnings on how a Chief Sustainability Officer (CSO) can most effectively support a firm in achieving its climate and sustainability objectives.
Sustainability: Emissions are rising – and will continue to rise
Reading time: 2 minutes
Sustainability: Emissions are rising – and will continue to rise. Globally, we will emit more this year, than last year, and more next year than this year.
