Within the current environmental crises, the urgency of the emergencies is not necessarily where we think it is.
The climate and biodiversity emergencies are real, but water dominates and will dominate the short-term agenda. Let us not forget that if humans die of hunger in a few weeks because of a lack of food, they die of thirst in a few days because of a lack of drinking water. It is no coincidence either that one of the 17 United Nations sustainability goals for 2030 is dedicated to "access to safe water and sanitation".
Current events do not reassure us. From 21 January to 20 February, France experienced 32 consecutive days without rain, causing an exceptional drought during the winter period. It is in this context that World Water Day is being held on 22 March, as it has been every year since 1993, to raise awareness about the importance of protecting water resources. It is not surprising that a World Water Day is dedicated to water when we consider the consequences of water scarcity: drought, reduced agricultural yields, famine, poverty, increased inequality between high and low income countries...
In this context, it is essential that investors get involved through a responsible approach. On the risk side, this means, for example, refusing to invest in mining sites that operate in areas of high water stress. On the opportunity side, this means investing in companies that are at the forefront of optimal water use in the agricultural sector. Agriculture accounts for 70% of the world's freshwater withdrawals.
Jean-Philippe Desmartin, Head of Responsible Investment at Edmond de Rothschild Asset Management