Candriam has announced the launch of a new Sustainable Equity Water Fund aimed at tackling the global water crisis.
The SFDR Article 9 fund aims to address the escalating global water challenge by investing in companies that provide solutions to treat, transport, distribute and valorise water as well as companies that, through their own processes in high water use sectors, lead the reduction in water intensity.
The fund responds to a global growth in demand for robust water infrastructure and efficient value chains amid increasing water scarcity. With only 1% of the Earth’s water available for human consumption, and a predicted 40% shortage by 2050, immediate action is needed, Candriam said.
The actively managed fund employs thematic and ESG screening, supported by a bespoke water taxonomy developed using multifaceted data sources and artificial intelligence.
It is co-managed by senior fund managers Bastien Dublanc and David Czupryna, alongside a dedicated ESG team. Candriam’s Thematic Global Equity team, which manages €12.2bn in assets, also supports the Fund.
The fund is available in Luxembourg, Austria, Belgium, France, Italy, Germany, Switzerland, Finland, Sweden, Denmark, and the Netherlands, with availability in the UK expected soon.
Pension funds have become regular investors in water companies, though some have burned their fingers through exposure through private market investments in highly leveraged firms such as Thames Water. In contrast, listed firms tend to display relatively lower debt levels.
