BNP Paribas Aqua, a fund dedicated to the water industry

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.

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:  

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