Water is life, especially for children because they consume more water than adults relative to their body weight. Yet countless children lack this vital resource. Without safe drinking water, their health suffers, nutrition falters and learning becomes a struggle, impacting every aspect of their lives. Clean water is especially important for children. Their developing bodies make them particularly vulnerable to waterborne diseases. This makes water an important focus area for investment of our Future Generations strategy. In this case study, we take a closer look at three impactful ways to invest in clean water.

Access to clean drinking water has improved over the years, but in 2022 at least 1.7 billion people drank water from a contaminated source. To achieve universal access to water globally, the World Bank estimates we need to invest up to USD 7 trillion by 2030 in global water infrastructure. This presents both an urgent challenge and a compelling investment opportunity, combining financial returns with meaningful impact. Oneof the focus areas for investment of our Future Generations strategy are companies that contribute to providing clean water and sanitation.

Accessibility - SABESP

In some cases, the lack of access to clean and affordable drinking water is simply due to lack of water infrastructure. Simply put: there are not enough pipes to transport the water to where it’s needed. This is also a challenge in a country like Brazil, where 12% of the population doesn't have access to clean water and 50% doesn't have access to safe sanitation. The government aims to provide 99% of the population access to clean water by 2033. A company that plays a key role in achieving this goal is SABESP, the water utility in the state of Sao Paulo. The company invests heavily in its water infrastructure network, while improving its efficiency by significantly reducing costs.  By cutting costs and optimising processes, SABESP not only enhances its financial sustainability but also ensures that more people gain access to clean water. These investments offer long-term benefits - boosting investor returns while securing a healthier future for São Paulo’s residents and future generations.

Aging water infrastructure - Zurn Elkay

Developed nations face a different challenge: aging water infrastructure, often constructed from outdated and harmful materials. Lead used to be a common material for pipes, faucets and other plumbing fixtures. If lead starts to corrode, however, it contaminates drinking water, posing serious health risks - especially to children, for whom even small amounts of lead can have devastating effects.

Zurn Elkay Water Solutions plays a vital role in addressing this problem. The company sells water-related products that are used inside buildings, with a specific focus on the education and health care sectors. Its innovative water filtration solution removes lead from drinking water. This is a very impactful solution that has strong growth prospects. It also makes the company’s revenues more predictable, as filters are regularly replaced. Generally speaking, a higher predictability of revenues is rewarded by investors.

Water shortages - NX Filtration

Four billion people experience water shortages for at least one month per year. This may seem like a distant problem, but even in a water-rich country like the Netherlands, it is estimated that by 2030 water shortages could occur if no action is taken. Dutch company NX Filtration could play a key role here. Its innovative water filtration technology is able to filter our micropollutants, color, antibiotics, PFAS, bacteria and so on. If used at a larger scale, this could open up huge sources of drinking water. Given the enormous challenges related to water shortages worldwide and the company’s leading technology, we believe the company can strongly grow its revenue in the years to come.

The future of water investment

Investing in water and water infrastructure is more than a financial decision - it’s an investment in the health, education, and prosperity of future generations. By supporting companies dedicated to expanding access, modernising outdated systems and addressing shortages, we can drive meaningful change while generating sustainable financial returns. Water is life, and ensuring its availability is one of the most rewarding ways to build a better future for all.