UN World Water Day: water sustainability needs more recognition – Fidelity International

Understanding water-related risks is vital in fixed income investing. Companies leading in sustainable water practices, like Cargill and Mars, can be supported through bond markets, alongside large-scale investments from sovereign and supranational issuers.

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... A key focus of fixed income investing is evaluating credit risk, and water-related risks are an important component of this, which is often overlooked by both issuers and investors.

Independent environmental disclosure advocates, Carbon Disclosure Project, estimated water-related risks for businesses in 2020 was over $300bn, with the cost of mitigating those risks estimated at $55bn. These heady figures underline how expensive it is if we do not confront these challenges.

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