Thomas Schumann Capital® signs the United Nations-supported Principles for Responsible Investment

Thomas Schumann Capital® (TSC), the world's leading solutions provider for investible indices and products that measure and track water risk, is now a proud signatory of the United Nations-supported Principles for Responsible Investment (PRI), an international network of over 3,600 organizations encompassing more than 60 countries and US$100 trillion in assets.

“Our solutions to help investors measure their exposure to water risk makes us a natural fit to be a PRI signatory,” explained founder Thomas Schumann. “Many investors are currently struggling to effectively integrate water risk into their investments because limited data and tools are hampering their ability to evaluate water risk and promote good water stewardship.”

PRI signatories have committed to following six responsible investment principles, which emphasize incorporating ESG (i.e. environmental, social, and governance) criteria, including water risk, into their business practices.

The organization also underscores targeting and shaping United Nations Sustainable Development Goal (SDG) outcomes through equity investment. In particular, the organization views SDG 6 (Clean Water and Sanitation) as an area that can be materially impacted by responsible investment.

With the weight of the PRI behind advancing SDG 6, all that’s lacking is a way to effectively quantify water risk.

That’s where TSC can help. 

TSC offers investable indices and products specifically designed to track water risk in equities. Solutions, such as the TSC Water Risk Index®, are the missing piece of the puzzle for accurately measuring water risk, which would allow investors to quantify and evaluate the water risks in their portfolios, thereby reducing their investment portfolio's water footprint.  

“We are delighted to welcome Thomas Schumann to the PRI,” said CEO Fiona Reynolds. “Water risk and the water risk of investments has long been a core issue for the PRI as one of the physical risks around climate change. We are looking forward to working with Thomas Schumann in the coming months.”

Thomas Schumann Capital® selects C8 Technologies as the Direct Indexing platform for the TSC Water Risk Indices on a global scale

TSC US and Euro Water Risk Indices® deliver an average 65% lower Water Footprint than their equity benchmarks while providing sustainable equity performance.

A ground-breaking collaboration between Thomas Schumann Capital®, the world’s only solution provider for water security and responsible investing, and C8 Technologies, the leader in Direct Indexing, will deliver the first-of-their-kind TSC US Water Risk Index® and TSC Euro Water Risk Index® directly to global investors.

Direct indexing via the C8 platform allows asset owners – such as pension funds, family offices, asset managers, and endowments – to take advantage of the flexibility of investing directly in the underlying index constituents, customised to their particular requirements.

“Nearly a third of the world is subject to water stress, a burgeoning crisis that only promises to get worse,” Schumann said. He further explains that “as climate change exacerbates droughts and flooding, and as population growth fuels the ever-growing demand for water, operating and financial risks to businesses will increase. Looking ahead, we believe that companies with good water management practices are positioned to be tomorrow’s market winners.”

C8’s CEO Mattias Eriksson said that “We are excited to welcome the innovative TSC Water Risk Indices onto the C8 platform which will enable asset owners or managers to easily trade the underlying assets of the Indices and, by so doing, keep full control of their capital. Importantly, the platform also gives full transparency of any investments, which aligns well with ESG values. With their socially responsible aims, the TSC Water Risk Indices® are ideal to host on our platform.”

The TSC Water Risk Index® is a systematic, rules-based thematic investment strategy designed to provide both financial performance and to advance a water-secure future. Thomas Schumann Capital’s investment ethos is guided by support for the UN Sustainable Development Goals framework, in particular, SDG 6 – sustainable management of water. The innovative suite of indices helps forward-looking investors to anticipate, and capitalize upon, listed companies’ growing exposure to the financial and operating risks created by future reduced access to water resources, while rewarding good corporate water stewardship.

Unlike existing water indices, which invest solely in a concentrated basket of water purification manufacturers and water utilities, the TSC Water Risk Indices provide exposure to a diversified basket of large-capitalisation companies across all sectors while tracking UNSDG 6.

Over the five-year back-test from October 30, 2015, through December 31, 2020, both regional TSC Water Risk Indices outperformed their benchmarks in the US and Eurozone while having an average 67% lower Water Footprint than the US benchmark and a 62% lower Water Footprint than the Eurozone benchmark.

“The world needs sustainable solutions that reward investors while encouraging good corporate water stewardship for a sustainable future,” Schumann continued. “That’s why I sponsored this index and why we are so excited to collaborate with C8 to offer it to global investors at the lowest cost and with the greatest transparency and highest degree of control over their capital,” he said.


About Thomas Schumann Capital®

Thomas Schumann Capital® (TSC) is the only solution provider for investable indices and products that track global water risk. TSC is the sponsor of the world’s first benchmark index series tracking water risk in securities and across asset classes due to their exposure to water and climatic extremes. For more information visit: www.thomasschumanncapital.com

Tickers

TSC US Water Risk Net Return Index (WTRUSNR)
TSC US Water Risk Price Return Index (WTRUSPR)
TSC Euro Water Risk Net Return Index (WTREUNR)
TSC Euro Water Risk Price Return Index (WTREUPR)

About C8 Technologies

C8 Technologies www.c8-technologies.com, provides direct access to tradeable active and passive indices developed by leading investment professionals and in-house. Institutional and professional investors can get the performance of any institutional-grade investment style by directly trading the underlying assets, at lower cost, with their own broker. Our patented process is unique in the financial markets, bringing many advantages to the asset owner including holding onto their own capital, full transparency on the underlying holdings and full control of trading, which allows for customization at will. By using C8, an asset owner can increase capital efficiency and avoid ongoing costs of operational due diligence.

Thomas Schumann® announces partnership with Water.org to help change lives with UN Sustainable Development Goal 6 “Clean Water and Sanitation”

The innovative provider of the first-ever investment vehicles that reduce the market’s water footprint chooses Gary White and Matt Damon’s Water.org as official cause partner.

Thomas Schumann®, the only solution provider of investable indices and products that track global water risk, today announced the selection of Water.org as its official cause partner to advance United Nations Sustainable Development Goal 6 – clean water and sanitation.

Thomas Schumann said: “I consider Water.org to be the number one water charity to advance UN Sustainable Development Goal 6 ‘Water Security’. I am excited to be partnering with Water.org and their proven expertise and work to bring water and sanitation to the world.”

As Thomas Schumann’s® cause partner, Water.org will receive direct donations through a featured donation portal at thomasschumanncapital.com in addition to other benefits that will support its important work.

“We appreciate Thomas’s recognition of the impacts the global water crisis has for people all over the world, and we are aligned in understanding the power of capital to create positive change,” said Gary White, CEO and Co-Founder of Water.org. “Access to safe water and sanitation transforms people’s lives and we’re grateful for the mission critical support that will come with this partnership.”


About Thomas Schumann Capital®

Thomas Schumann Capital® is the world’s leading solution provider at the nexus of water security and responsible investing. TSC sponsors the TSC Water Risk Indices® in order to enable investors to integrate physical and financial water risk into investment decisions to achieve sustainable performance, positive impact, water stewardship and engagement.

About Water.org

Water.org is an international nonprofit organization that has positively transformed more than 31 million lives around the world with access to safe water or sanitation. Founded by Gary White and Matt Damon, Water.org pioneers market-driven financial solutions to the global water crisis. For more than 30 years, we've been providing women hope, children health, and families a future. Learn more at https://water.org

Thomas Schumann Capital Selects Refinitiv as Exclusive ESG Water Metrics Data Partner Tackling Water Risk

Thomas Schumann Capital® to use Refinitiv ESG water metrics exclusively to create the first of its kind TSC Water Risk Index® facilitating enhanced water security and responsible investing.

Thomas Schumann Capital® (TSC), leading solutions provider for water security and responsible investing has entered into an agreement to utilize Refinitiv ESG water metrics exclusively for the TSC Water Risk Index®, the world’s first index family using a proprietary methodology to mitigate water risk in portfolios.

Climate change and the rising demand for fresh water puts greater pressure on existing water supplies and introduces additional uncertainty for companies that are dependent on fresh water. On average, 41% of assets owned by companies in the MSCI ACWI Index are in high water stress regions. Its scarcity poses a variety of risks to businesses and investors such as market, reputational, regulatory and litigation and operational risks.

TSC has identified two key strategies through which forward-thinking investors can achieve equity market returns while contributing to global water sustainability: investing in companies that demonstrate exceptional water stewardship and indexing water risk in equities. Used to aid in the build of the TSC Water Risk Index®, Refinitiv ESG data is designed to enable investors to make sound, sustainable investment decisions. Their ESG data covers 80% of global market cap and spans over 450 metrics, including 10 water metrics: water recycled, policy on water efficiency, targets for water efficiency, SDG 6 on clean water, water discharged, water pollutant emissions, fresh water totals and water withdrawals.

“TSC is honoured to collaborate with the world’s leading ESG and data solutions provider to advance responsible investing and UN SDG 6 “Water Security” in global capital markets,” says, Schumann.

Leon Saunders Calvert, Head of ESG, Lipper and I&A Insights, comments, “Refinitiv has an important role to play in enabling the mainstreaming of ESG data into finance practices to enable more robust risk management, opportunity identification and quantification of impact as capital is optimized for long term sustainable outcomes. The use of key Refinitiv data points in the TSC Water Risk Index®, is a great way to combine complimentary assets from both firms to productize new capabilities supporting the financial community to this end.”

By exclusively using ESG water metrics from Refinitiv, one of the world’s largest providers of financial markets data and infrastructure TSC is transforming corporate water management and stewardship into quantifiable financial metrics to minimize water risk in both equity and fixed income. The result provides the financial industry with a better understanding of climate and water risks and the insight to develop innovative financial instruments that meet global demand for responsible investment.

Refinitiv has been serving the financial industry with ESG data and solutions for over 18 years and offers one of the richest ESG databases in the industry – a fully transparent resource that is trusted by investors and corporates to drive positive impact and provide comprehensive analysis. As members of the UN Global Compact, Refinitiv is part of a community of 9,000+ businesses across 135 countries that are committed to operating with responsible business practices at its core. For more information about Refinitiv ESG data, visit https://www.refinitiv.com/en/sustainable-finance/esg-investing


About Refinitiv

Refinitiv is one of the world’s largest providers of financial markets data and infrastructure, serving over 40,000 institutions in approximately 190 countries. It provides leading data and insights, trading platforms, and open data and technology platforms that connect a thriving global financial markets community – driving performance in trading, investment, wealth management, regulatory compliance, market data management, enterprise risk and fighting financial crime. For more information visit: www.refinitiv.com

About Thomas Schumann Capital®

Thomas Schumann Capital® (TSC) is the world's leading solution provider for investable indices and products that track global water risk. TSC is the sponsor of the world’s first benchmark index series tracking water risk in securities and across asset classes due to their exposure to water and climatic extremes. For more information visit: www.thomasschumanncapital.com

Transformative Collaboration to Integrate Water Risk into Capital Markets

A groundbreaking partnership between Thomas Schumann Capital® and Anatase Ltd, two solutions providers committed to increasing water security through responsible investing, will launch the world’s first index family to benchmark water risk in global capital markets on January 4, 2021.

The TSC Water Risk Index® is a systematic, rules-based thematic investment strategy designed to provide both financial performance and to advance a water-secure future. As a leading solutions provider at the intersection of water security and responsible investing, Thomas Schumann Capital’s investment ethos is guided by support for the UN Sustainable Development Goals framework, in particular, SDG 6 – sustainable management of water. The innovative suite of indices helps forward-looking investors to anticipate, and capitalize upon, listed companies’ growing exposure to the financial and operating risks created by future reduced access to water resources, while rewarding good corporate water stewardship.

“Nearly a third of the world is subject to water stress, a burgeoning crisis that only promises to get worse,” says Thomas Schumann, founder of Thomas Schumann Capital®, who believes that addressing water as a core portfolio risk and long-term investment opportunity is a key strategy for capturing both sustainable performance and positive environmental impact. Schumann explains that “investors are shifting their focus to water risk as a proxy for climate risk because as climate change exacerbates droughts and flooding, and as population growth fuels the ever-growing demand for water, operating and financial risks to businesses will rise. Looking ahead, we believe that companies with good water management practices are positioned to be tomorrow’s market winners.”

Anatase LTD’s CEO, Markus Barth, a veteran index architect, is likewise committed to responsible investing. Said Barth, “We are excited to be collaborating with Thomas Schumann Capital® to incorporate their innovative proprietary measurement of water risk into investable, liquid equity indices.” He added that “we intend to leverage our 30 years of experience in index development and monetization with TSC's groundbreaking water risk metrics, in order to create the first-ever investment solution that enables investors to earn equity market returns while mitigating the potential negative impact of water risk."

In the five-year back-test from October 30, 2015 through November 30, 2020, the TSC U.S. Water Risk Index outperformed the benchmark S&P 500 Index by 2.5% per year while having an average 55% lower Water Footprint than the S&P 500. The TSC Eurozone Water Risk Index® outperformed the benchmark Euro STOXX 50 by 0.11% per year while having an average 62% lower Water Footprint than its benchmark.

“At last, investors can now significantly reduce their exposure to portfolio water risk without having to sacrifice performance,” said Barth.

“The world needs investment solutions that reward investors while encouraging good corporate water stewardship for a sustainable future,” Schumann said. “I collaborated with Anatase LTD to design and launch the world’s first benchmark index suite that maps water risk in equities and eventually across all asset classes and the first index family that meaningfully reduces the water footprint of investment portfolios.”


About Thomas Schumann Capital®

Thomas Schumann Capital® (www.thomasschumanncapital.com) is the leading solution provider at the nexus of water security and responsible investing. TSC is delighted to sponsor the TSC Water Risk Indices®, the world’s first index series that delivers performance while advancing UN Sustainable Development Goal 6. TSC’s solutions help capital markets to integrate physical and financial water risk into investment decisions in order to achieve long-term sustainable performance, positive impact, water stewardship and engagement.

About Anatase Ltd

Anatase Ltd (www.anataseltd.com) is an independent consulting company founded in 2019 by Markus Barth, CFA. A seasoned investment professional and index pioneer, Markus has designed, developed and launched many highly successful proprietary indices throughout his 30+ year career in the financial services industry. Anatase provides extensive expertise in index development, structured products and investment solutions while coordinating the wrapping of indices into various investment products that can be accessed on a global basis.