Water – Cover story
too, in that there’s too much water in some places or not enough in others.
“The water table can also shift as you put it under stress from industrial and residential use,” she adds.
“There is a lot of attention globally on climate change,” Chew says. “If you fully understand the climate issue then you will know that it is also about water because they are closely tied together.” Perhaps the problem is that in some developed nation coun- tries it has always been there. “Water is taken for granted in our culture,” Chew says. “Plastic on the other hand is material and we can decide whether to use it or not. We can see how much plastic recycling we gather each week, so perhaps plastic is more tangible in our material culture.”
The size of the challenge of ending water stress might also be putting people off. “Islands of plastic floating in the sea is a smaller scale problem than water scarcity, so perhaps people feel that they can provide a solution for it,” Rendon says.
Global problem, local issue
Despite its importance to our lives and the planet, water does not have as high a profile in the news as other sustainable issues, such as climate change and single-use plastics. “Water is present in almost all issues that we face today, but it may not always be the big key word or make the headlines,” Hengerer says. Perhaps the reason why the City has warmed more to climate change is because a market has emerged for it. “Climate change has been an easier issue for the finance sector to get its head around because carbon emissions are by their nature global, so it has been easier to measure and model it globally and, therefore, to disseminate that knowledge to investors. “Water scarcity on the other hand is very location based and so it’s difficult to get data to enable you to roll out assessments of risk and impact at scale across large portfolios,” she adds. Generating interest and action here may have to come from the highest level. Hengerer wants governments to do more to promote water conservation in the way that they are working to fight climate change. “Governments have a strong role to play,” Hengerer says. “They can set strict regulation on water quality and efficiency and have the power to set water tariffs to pro- mote conservation and reduce consumption.”
Sponsored by
Newton’s Geall also believes that many environmental chal- lenges, especially water, need to see greater levels of govern- ment intervention. “The electric vehicles debate, and the impact of the internal combustion engine is slowly influencing consumers to reas- sess what vehicles they want to buy,” he says. “If governments imposed restrictions on water usage, or the US imposed a water tax on the agricultural sector, it would be a powerful step towards not only increasing understanding, but conserving the resource itself.”
Local governments are buying back water utilities with Paris and Berlin taking such steps to control it. “Single-use plastic has the top position on many peoples’ agenda, but these cases show that water is at the top of governments’ agenda,” Hengerer says.
Berlin and Paris are not the only areas where the authorities are taking control.
In Asia, the huge supply/demand imbalance has meant that governments are having to step in. “In Asia there is a concern about water running out and blocking economic growth,” Chew says. “Regulators in that region are considering all kinds of interventions, whether it is putting a market price on water, offering subsidies for efficiency or increasing supply mechanisms.” Chew’s colleague Rendon believes that local people can have a powerful voice when it comes to motivating their leaders. “Community pressure cannot be underestimated,” she says. “It has been a deal-breaker for some companies, who have closed operations due to conflicts with local communities. If that pressure translates into government action that might be a way to increase water conservation.” People power and government intervention is one thing, but science will be crucial in eradicating water stress. Unless economically-viable technology emerges that can turn saltwater into freshwater or collect moisture from the air or make H2O out of base materials, then we are stuck with a finite resource that will have to meet rising demand. Raising more awareness of the issue among consumers and influencers would be a good start. Matt Damon, star of the Jason Bourne films, is doing his bit by co-founding a charity that works to improve access to clean water, but he cannot pull in the crowds like Swedish climate change campaigner Greta Thunberg. It seems that water needs a champion and fast.
Issue 90 | February 2020 | portfolio institutional | 29
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46
