A growing number of Investors, including state-owned funds, are looking to invest in water to benefit from efforts to tackle climate change.
According to multi-asset manager Armstrong Investment Managers, less than 0.01 percent of water is easily accessible freshwater and global water use has tripled since 1950 — increasing faster than the world’s population.
“Demographic and climate changes will lead to two thirds of the population inhabiting areas with scarce water,” the firm says.
Armstrong likes water equipment and water treatment stocks and water utilities as these should benefit from sustainable growth opportunities.
Norway’s $350 billion sovereign wealth fund is aiming to invest 20 billion crown ($3.24 billion) investments over the next five years into water and other environmental technologies, such as carbon-capture storage and waste and pollution management.
The Norwegian fund says water was an important input or production factor for about 1,100 companies in its, whose combined market value is some $43 billion.