Actiam targets water-neutral portfolio by 2030

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Dutch asset manager Actiam seeks to achieve a water-neutral investment portfolio by 2030.

The company has unveiled its first water-investment footprint on the occasion of the World Water Day (22 March).

According to Actiam, the water footprint of the companies included in its current portfolio is 2.5 times lower than that of comparable funds.

The manager intends to achieve its objective of a water-neutral investment portfolio wants its investment portfolio by actively encouraging companies in the portfolio to use water responsibly.

Actiam recalled that in 2030, the demand for water is expected to be 40% greater than the supply.

The company said water-related business risks will grow due to increasing water scarcity, rising prices, more critical consumers and stricter regulations. It assessed this may lead to unforeseen costs and necessitate higher capital expenditures.

Dennis van der Putten, director of responsible investment at Actiam, said: “Companies are major contributors to water problems through wastage and pollution in production processes. That has got to change. We want the companies we invest in to consume no more than nature can replenish and to cause no more pollution than is acceptable for the health of humans and ecosystems. We call this water neutrality.

“As water is not equally distributed across the world, there is no single recipe for responsible water usage. But one thing is clear: water neutrality can only be achieved through a combination of water reduction, water recycling, water reuse and collective action.”

“For us, measuring the water footprint of our portfolio is the first step towards providing transparency on the impact we, as an investor, can have on one of the largest global problems. This transparency is an important initial move towards the fair and responsible distribution of water around the world. The water footprint currently measures the usage of scarce water by the companies we invest in. Over the coming years, its scope will be extended to include water pollution,” he added.

Actiam had €55.9bn in assets under management as at 30 June 2016.