|Asset Classes||Listed equity|
|Impact strategy||Impact Equities and Bonds|
|Industry group||Capital Goods|
|Aligned with SDGs|
Zurn Water Solutions is a leading designer, manufacturer and distributor of highly engineered products and solutions that control the flow, delivery, treatment, and conservation of water as well as human hygiene. The company was previously known as Rexnord and became purely focused on water after it sold off its process and motion control business in 2021. In February 2022 Zurn announced its intention to merge with Elkay, which is active in the drinking water space (bottle fillers, sinks, etc.) and therefore complements Zurn's core business well. Currently, Zurn is active in three segments:
• Water Safety & Control (~40% of revenues): mainly produces back-fill preventers and pressure reducing valves.
• Hygienic & Environmental (~30%): mainly produces flush valves and faucets.
• Flow Systems (~30%): mainly sells drainage-related products to manage storm water and wastewater.
With the pending Elkay merger drinking water will be added as a fourth segment. The company is mainly active in the US (90% of sales) while Canada and the rest of the world account for resp. 7.5% and 2.5% of sales.
The WHO states that: "Safe water, sanitation and hygiene (collectively known as WASH) are crucial for human health and well-being. Yet, millions of people globally lack adequate WASH services and consequently suffer from or are exposed to a multitude of preventable illnesses. Lack of safe WASH negatively impacts quality of life and undermines fundamental human rights. Poor WASH services also weaken health systems, threaten health security and place a heavy strain on economies." As it relates to children specifically, UNICEF states that over 700 children under age 5 die every day of diarrhea diseases due to lack of appropriate WASH services. In the US alone, more than 2,000,000 Americans live without basic access to safe drinking water and sanitation.
Zurn Water Solutions contributes to a water efficient and safe system for water, sanitation, and hygiene. Its plumbing products (which range from behind the wall products such as valves to finish plumbing like faucets) contribute to the delivery, control, and optimisation of water flows. In addition to this, Zurn provides dedicated hygiene products (soap dispensers, hand dryers, etc.) for public spaces (e.g. restrooms). In 2021, Zurn's products saved 34 billion gallons of water. In addition, 70% of Zurn's products incorporate recycled materials.