The tide is rising for water as an investment theme as it benefits from a growing awareness of both climate change and years of underinvestment, particularly in water infrastructure. This focus should have a direct positive impact on companies providing water solutions, Justin Winter, water strategy co-manager, tells Andrew Craig, co-head of the investment insights centre.
In this Talking heads podcast, he argues that poorer economic conditions should have only a limited impact on demand in the water segment. He singles out more cyclically defensive industries such as pharmaceuticals, consumer staples and infrastructure where demand typically spans more than an economic cycle and issues can take several decades to resolve. One notable, positive trend is the on-shoring of semiconductor fabs and the investment in water treatment resulting from that.
“Companies are recognising that water scarcity is here to stay and are also doing their part in helping to resolve the issues,” he says, “Those themes cut through the economic cycle.”
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