From black to blue
Understanding water-stress exposure in an investment portfolio
The impact of water-related risks on communities is potentially catastrophic, given water’s place as a critical input to all facets of life. It is this that makes risks related to water multi-dimensional. Furthermore, not only do we need to know how much water is used (i.e. volume), but we also need to plot that against where the unit of water is used (location).
The reasonableness of producing a portfolio-wide water metric is less clear than in the case of carbon footprint.
Water risks are regional, multi-dimensional and very distinct from carbon. In researching how to incorporate water issues systematically into an investment portfolio we have identified:
#1
The who, what, why and how of water-related investment themes
#2
Four key considerations for investors seeking to incorporate water into their portfolio
#3
Existing water-based frameworks and data sets are inadequate. Use our decision-tree approach to enhance decision making
Water risks are distinct from carbon – introducing physical risks
Unlike carbon risks, water-related risks primarily relate to physical risks associated with climate change. Physical risks can be broken down into direct and indirect. Physical risks include direct damage to assets while indirect risks cover supply chain disruptions and water availability, for example.
Learn about our research into incorporating water issues systematically into an investment portfolio.
Details of the methodology and analysis used in our research is included in the full research paper. Request it below!
Request the research
Our proprietary research is made available to our institutional clients, and many of these published papers are available to other institutional investors as well. If you are not a Russell Investments' client, but are an institutional investor, we welcome you to request this research piece.
We only require your contact information on the request form below.
* Asterisks indicate required fields.
By clicking the "Request research" button, I agree to be contacted by Russell Investments Canada Limited ("RICL"). In addition, I understand I am agreeing to receive ongoing communications on a variety of topics relating to RICL business including sales communications, news, publications, and invitations to programs and events. I understand I can unsubscribe at any time via the unsubscribe function included in these communications by contacting RICL. For questions, contact us via email at canada@russellinvestments.com or via post at 200 Bay St., North Tower, Suite 1200, Toronto, ON M5J 2J2.
Your information is never shared with third parties. View our Privacy Policy.