Water disruption: investment risk from multiple angles - Franklin Templeton Investments

Before the well runs dry: the time for investors to understand water risk is now, chapter 1.

Only members with restricted access (ie. academics, asset owners, government and regulatory, independent advisers/trustees and sponsoring employers) can view this article. Please login or join to view.

As stewards of their clients’ assets, Franklin Templeton believe water risk must be accounted for in portfolios today, not in 2030 or 2050. But how can this be done? Water is not only a misunderstood commodity but also a basic human right recognized by the United Nations (UN) in 2010. As sustainability-informed investors using environmental, social and governance (ESG) metrics as key performance indicators, how do they address the dual-bottom line of adding value to clients’ portfolios while also contributing to positive outcomes?

Franklin Templeton are thinking about these questions on a daily basis and aspire to grow their knowledge base and capabilities. In the case of water, they see three main areas contributing to information gaps: pricing, risk and markets. This piece explores each of these ideas through the lens of equity, fixed income and alternative investments.

Learn more here