In this latest chapter, Franklin Templeton will focus on risk and use fixed income investing as their lens. Firms with water intensive business operations and those operating in areas of water stress - where water withdrawals are high relative to supply - face the risk of having to pay higher water prices or losing access to water supply. These risks are likely to rise in the future: water scarcity is rising due to population growth, over-use, and ecosystem degradation, plus more frequent and severe droughts. Where water scarcity has been severe enough to have an operational impact, several bond issuers have had their credit ratings downgraded in the past.
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