Asset manager ACTIAM is seeking to achieve a water-neutral investment portfolio by 2030 and has launched its first-ever water footprint which it says is already 2.5 times lower than that of comparable funds.
ACTIAM wants its investment portfolio to be water-neutral by 2030 in order to contribute to one of the UN sustainable development goals – ensuring availability and sustainable management of water and sanitation for all.
The asset manager is aiming to achieve this by actively encouraging companies in the portfolio to use water responsibly.
Dennis van der Putten, director of responsible investment at ACTIAM, says: “Companies are major contributors to water problems through wastage and pollution in production processes. That has got to change. We want the companies we invest in to consume no more than nature can replenish and to cause no more pollution than is acceptable for the health of humans and ecosystems. We call this water neutrality. As water is not equally distributed across the world, there is no single recipe for responsible water usage. But one thing is clear: water neutrality can only be achieved through a combination of water reduction, water recycling, water reuse and collective action.”
To measure the progress that is made on its objective, ACTIAM has calculated the water footprint of its own active investment portfolio.
Putten says: “For us, measuring the water footprint of our portfolio is the first step towards providing transparency on the impact we, as an investor, can have on one of the largest global problems. This transparency is an important initial move towards the fair and responsible distribution of water around the world. The water footprint currently measures the usage of scarce water by the companies we invest in. Over the coming years, its scope will be extended to include water pollution.
“The measurement shows that the water footprint of the companies included in ACTIAM’s current portfolio is already 2.5 times lower than that of comparable funds. That is excellent and confirms tor us that we are making the right choices in our portfolio selections and as an active shareholder. But to make a real difference for the world at large, that footprint needs to be reduced to zero.”
