For BNP Paribas, a long-term partner of the energy industry, serving as a bank working towards...
BNP Paribas Aqua, a fund dedicated to the water industry
Water is an increasingly rare and precious resource. Water purification, access to drinking water, climate change and its consequences are some of the major challenges the water industry is now facing. To support the industry, the Group launched a dedicated fund in 2008 called BNP Paribas Aqua, which invests in shares of international companies whose activity is related to water treatment: water infrastructure, treatment and purification, municipal services, etc. Learn more below.
Running water and its challenges
With the rise in both the world population and global standards of living, water needs have continued to expand. In the last 30 years, global water consumption has doubled, while annual demand is expected to climb 10-12% on average over the next 20 years. Designated by the United Nations as one of its 17 Sustainable Development Goals, universal access to clean water is far from a reality. Every year, millions of people worldwide fall victim to diseases associated with inadequate water supply, sanitation and hygiene. This situation is exacerbated by climate change, which is responsible in part for more frequent and intense droughts. The UN estimates that by 2050, 25% of the world’s population will live in a country affected by chronic or recurring shortages of fresh water.
In today's world:
Though developing countries in Africa and Asia are impacted the hardest by the lack of access to clean water, developed countries also face challenges in this area. They need to update decaying treatment and distribution infrastructure, while adapting to the effects of climate change on soil water supply.
A sustainable finance fund dedicated to the water industry
As part of its Corporate Social Responsability (CSR) strategy and its commitment to the UN’s Sustainable Development Goals, the Group launched BNP Paribas Aqua in 2008. This sustainable finance fund category aims to support the water industry in all parts of the world.
BNP Paribas Aqua enables investors to buy shares in companies active across the entire water sector value chain:
- Treatment and purification
- Installation, maintenance and renovation of water conveyance networks
- Management of these networks (pumping, treatment before use, purification of wastewater, decontamination and recycling), etc.
The portfolio is composed of 50 international shares, selected based on their growth prospects and their potential to generate value. All companies in the portfolio respect all 10 principles of the United Nations Global Compact for Sustainable Development. Since launching 10 years ago, BNP Paribas Aqua has attracted mounting success with investors. In late December 2018, the Group managed €3.2 billion in assets in this fund category, including €1.942 billion for the BNP Paribas Aqua fund and €1.287 billion for the Parvest Aqua fund.
Photo credits : header ©昊 周 // ©zhu difeng
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