Dublin-based Kleinwort Benson Investors has revealed the results of its recent Water Strategy Review highlighting investors could expect to enjoy double digit earnings growth in 2015 and 2016.
CIO, Noel O’Halloran, said population growth, urbanization, industrialization, increasing regulation and infrastructure rehabilitation have long underpinned the firm’s Water Strategy, which accesses the attractive investment themes of infrastructure spending, natural resource scarcity, demographic shifts and climate change; however, as the supply of water is constant, and because demand for water grows at approximately twice the current rate of population growth, the supply/demand wedge continues to expand.
Demand for water will grow by 40% by 2030. Currently almost 800 million people have no access to clean drinking water, while a further 2.5bn do not have basic sanitation. To do nothing is not an option. As a result, the investment thesis supporting investment in companies providing solutions to global water problems is becoming ever stronger over time. These solutions include increasing supply/access to water, lowering water loss, improving water and wastewater quality, and building out new and maintaining installed infrastructure.