Investment opportunities in water sustainability

Nearly a third of the world is subject to water stress, a burgeoning crisis that only promises to get worse as climate change exacerbates droughts and flooding, and as population growth fuels ever-growing water demands for consumption, agriculture, and other human activities. The effects that changes in access to water will have on businesses will be nothing short of transformational to the global economy, creating winners (those that manage water well) and losers (those that mismanage water resources) -- and in turn, creating significant new investment opportunities.

Thomas Schumann, born, raised and educated in Frankfurt am Main, the world’s most sustainable city in 2015, is the leading expert working at the intersection of water security and sustainable investment to turn water management by businesses into a financial metric. He has identified two key strategies through which savvy, forward-looking investors can realize significant returns while contributing to global water sustainability: pricing water risk into financial securities, and investing in companies that demonstrate good water stewardship:

  • Schumann’s firm Thomas Schumann Capital (TSC) is sponsor of the Water Risk Index, the world's first benchmark index that prices financial securities according to their exposure to water risk. Water Risk Index uses the waterBeta™ methodology to offer investors the ability to calculate the previously hidden factor of water risk into their investment decisions.
  • TSC also sponsors the Water Security Fund, which employs a proprietary method to assess the financial and physical water risk of blue-chip stocks. By investing in those stocks that are good water stewards, Water Security Fund seeks to deliver long-term sustainable alpha whilst actuating social and environmental responsibility through advancement of the UN Sustainable Development Goal 6, "Sustainable Management of Water.” The firm is currently welcoming anchor investors for the Water Security Fund to advance a water-secure world.

Thomas Schumann Capital is a signatory to the UN Principles for Responsible Investment (PRI), the Carbon Disclosure Project (CDP), and the CEO Water Mandate, and supports global organizations that are committed to water security and climate risk mitigation.