NEW YORK/LONDON - As droughts worsen across the world, investors are turning up the heat on companies wasting water and trying to pick winners from a sparse crowd of specialist listed companies looking to address the problem.
"These are no longer far-off events; they are happening right now," said Dexter Galvin, CDP's global director of corporations and supply chains. David Grumhaus, Jr, portfolio manager for the US$812 million Virtus Duff & Phelps Water Fund, said there has been a"spillover effect" as water crises have worsened.
Simon Gottelier, co-manager of the US$282 million Thematics Water Fund, estimated that there are around 25 to 30 investable water utilities globally, as well as a"handful" of water technology businesses. Cedric Lecamp, manager of the US$9.2 billion Pictet-Water Strategy, said his firm has identified 360 companies with a"meaningful exposure to the water theme".