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Up to 3 billion people do
not have regular access
to water, while some 50
per cent of the world’s
population could be facing
severe water scarcity in
less than 30 years
Pictet’s Stephen Freedman names
three stocks that can help tackle
the growing problem of global
water sustainability
Not a drop
to drink
human use. Up to 3 billion people
do not have regular access to water,
while some 50 per cent of the world’s
population could be facing severe
water scarcity in less than 30 years.
Not only do we need to consume less
water, we also need to become more
efficient with what we do use.
We believe specialised companies
developing innovative solutions to
improve our water usage present
long-term investment opportunities.
Here are some of our favourites.
F
rom extreme weather to
wildfires and air pollution,
the world is waking up to its
environment crisis.
Yet there is another planetary
emergency that needs to be
addressed: the depletion of water, our
vital natural resource.
Less than 1 per cent of water on the
planet is available and accessible for
15 million people. While
most US water utilities
are government-owned,
American Water has ac-
Public spending con-
quired numerous public
straints have led to un-
assets. Despite being a
derinvestment in utilities defensive stock, Ameri-
and the need to upgrade
can Water benefits from
infrastructure is pressing. strong growth trends due
American Water Works is to an ageing water system,
the largest US water and
which requires significant
wastewater utility, operat- investment to upgrade and
ing in 47 states and serving maintain its infrastructure.
TRUSTNET
French water utility and
waste management com-
pany Veolia is another
beneficiary of the trend
towards privatisation in
water and waste manage-
ment. It has a concession-
based business model and
is involved in the produc-
tion and delivery of drink-
ing water to 95 million
individuals, as well as the
collection, treatment and
recycling of wastewater
from 60 million people.
Some 80 per cent of its
sales originate outside of
France and its activities
span 55 countries. Veolia
has been optimising its
portfolio of activities re-
cently, which should boost
profitability and contribute
to a re-rating of its stock.
isn’t measured”. TMO
is experiencing strong
Thermo Fisher (TMO) is growth, driven by organic
a leader in life sciences international expansion.
solutions, analytical
The company also has a
instruments and diagnos- track record of acquiring
tics, with applications in
companies with comple-
health and environmental mentary offerings. Its
testing including water.
strong brand and finan-
Such services are an es-
cial position have helped
sential part of the pollu-
fuel its growth strategy,
tion-control process, as
strengthening its eco-
one “cannot manage what nomic moat.
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