From black to blue: Understanding water-stress exposure in an investment portfolio

Moving the climate focus beyond carbon and on to water.

A lot of work has gone into identifying how carbon can be measured, managed and invested in for tomorrow's green economy. But there is more to the "E" in environmental than carbon. Here we ask: "what is the next big thing in the environmental space?"– for us, it's water.

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

Turning research into action: A decision-tree approach

Understanding water-related risks is a vital component of evaluating the long-term sustainability risks and opportunities of an investment portfolio. However, the tools for properly assessing water-related issues systematically are still developing. The most useful tool we have found for combining the myriad of considerations into a simple actionable framework is a decision tree approach.

Continue to read about our research into incorporating water issues systematically into an investment portfolio.

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Details of the methodology and analysis used in our research is included in the full research paper. Complete this form to request a copy of the full report.


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By clicking on the "Send request" button, I agree to receive this document as well as additional content from Russell Investments Canada Limited ("RICL") on an ongoing basis, with the option to unsubscribe at any time.*

*I understand that by subscribing to receive this communication I agree to receive ongoing communication from Russell Investments Canada Limited (RICL) on a variety of topics relating to RICL business including sales communications, news, publications, and invitations to programs and events. I understand that I can unsubscribe at any time via the unsubscribe mechanism included in these communications by contacting RICL.

By submitting you or another individual's personal information to RICL, you agree and confirm your authority from such other individual, to our collection, use and disclosure of personal information in accordance with our privacy policy. For questions, contact us via email at canada@russellinvestments.com or via post at 100 King Street West, Suite 4510, Toronto, Ontario, M5X 1E4. View our privacy policy.

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