Global investor group to pressure corporations on water risks

Investview

17/08/2022 11:00

By Ross Kerber
    Aug 17 (Reuters) - A global group of investors and pension
funds have said they will push top corporate water users to
address financial risks and protect resources, citing widespread
droughts and severe weather. 
    The Valuing Water Finance Initiative is the latest led by
sustainability investor group Ceres to bring pressure
corporations on environmental issues.
    Ceres on Tuesday said https://www.ceres.org/water/valuing-water-finance-initiative?utm_source=marketingcloud&utm_medium=organic&utm_campaign=vwfi
 participants include 64 U.S. and international investors with a
total of $9.8 trillion under management including pension funds
and plus asset managers such as Franklin Resources,  BEN.N 
Federated Hermes  FHI.N   and Fidelity International.  
    The group wants companies in industries, including food and
technology, to pay more attention to the impact their operations
have on water quality and availability and the protection of
freshwater ecosystems.
    While organizers said they wanted to bring attention to the
issue, they did not set out many specific steps for portfolio
companies to take, in contrast to some investor efforts https://www.gfanzero.com/press/gfanz-releases-guidance-on-credible-net-zero-transition-plans-and-seeks-public-input-to-accelerate-action
 that set goals to reduce greenhouse gas emissions to net-zero
by 2050.
    "The very first thing is you’d expect a company to map its
own risks" stemming from issues like water scarcity, said John
Anzani, executive at the Local Authority Pension Fund Forum for 
 United Kingdom-based funds, during a webcast to introduce the
event. 
    Participants might consider additional steps of "escalation"
like voting against directors at companies like those that won't
engage, he added.
    In a report https://www.ceres.org/resources/reports/financial-implications-addressing-water-related-externalities-meat-sector
 last year, Ceres and research partners found three large
packaged meat companies would need to spend $422 million a year
on capital and operating expenses to address their impact on
freshwater from nutrient runoff and water withdrawals, a low
price to address risks, according to the report.
      
     

 (Reporting by Ross Kerber; Editing by Aurora Ellis)
 ((ross.kerber@thomsonreuters.com; (617) 856 4341; Reuters
Messaging: Ross.Kerber.Reuters.com@Reuters.net))