Water Risk Across Asset Classes
Event description
To meet the Sustainable Development Goals (SDGs) that directly concern water (SDG 6 and SDG 14) an estimated US $ 670 billion of annual spending is required. But in fact, all the SDGs rely on water. Although water is one of the six systemic risks identified by the World Economic Forum, it is also the risk where the least progress has been made.
This online webinar was hosted by VBDO, the Dutch Association of Sustainable investors, and DWS, one of the world’s leading asset management companies. It brought together an outstanding panel of water and investment experts, to explore the notion of water risk, how it influences investors in their decision-making process, and how we can foster change within the investor community.
Michael Lewis, Head of ESG Research at DWS, opened with a clear message: “Water is not getting the respect it deserves.” He went on to emphasise that in order to transform existing systems, we need to value water through a combination of governance, regulation and private capital.
VWI Global Lead, Ambika Jindal referenced the work of the Valuing Water Initiative in encouraging investors to look beyond infrastructure or short-term economic risk: “Future financial profits rely on water security.” Ms. Jindal highlighted the multifaceted values of water and described a new framework for systemic change, which would bring together governments, financiers and NGOs to value water in a new way, reconciling different interests and making more sustainable, more impactful decisions.
The importance of having the right tools to make better decisions was also a central point for fellow panellist Cate Lamb, Water Director for global corporate disclosure champion CDP. More and more companies, she said, are coming forward to disclose key data, such as how they perceive their dependence on water across their value chain, or company-wide water accounting information. By sharing vital data about the role and value of water, she said, businesses can provide investors with an invaluable tool when they come to assess water risk.
Analysis from Piet Klop, Head of Responsible Investment for PGGM, concluded the session. “As investors, we need to ask: which companies are providing solutions to water challenges?” Mr. Klop agreed that we need to look beyond the concepts of water supply and water risk. He urged those listening to take inspiration from the trailblazers who have shown that investing in water is not only important – it makes financial sense.
Speakers:
Ambika Jindal
Lead of the Valuing Water Initiative
Cate Lamb
Water director CDP and Water Champion for COP26
Michael Lewis
Head of Research ESG, DWS
Piet Klop
Head of Responsible Investment, PGGM