Deepali Srivastava

[Madelyn Westfall]

UN. estimates of how much investment is needed for water security and infrastructure between now and 2050 cite eye-popping numbers in the trillions of dollars. But investing in water is not an easy proposition. Water is the lifeblood of societies and, therefore, water-related investments must be managed with care and in collaboration with affected communities and their governments. This might help to explain why investors have held back. In India, most impact investments go to the financial-services sector, thanks in part to the history of microfinance in the country, which means needs such as safe water and affordable housing are neglected.

Nokia is helping restore wetlands in the Bangalore Rural District in partnership with the district government, local panchayats (village councils), small businesses, and the WWF. The WWF reports that the Nokia-sponsored Bashettihalli wetland in India has reestablished connections with upstream wetlands thanks to rigorous data gathering and analysis, mapping of less disruptive supply chains, and improved water management practices at the basin level.

Similar efforts are underway in other parts of the world. Water is a business risk for Swedish clothing retailer H&M; two-thirds of its 500-plus suppliers are based in water-stressed countries. The company is not simply reducing its water footprint in its own operations but going well outside the fence line to influence small changes in many other locations. In Bangladesh, Turkey, and China, all home to thriving textile-export industries, H&M is running education campaigns on clean water and sanitation, mobilizing investments for cleaner production techniques, and engaging with policymakers on water management issues.

Companies need to explain how they are accelerating their progress toward achieving water sustainability for their own financial stability and reputation, and for the greater good of societies. It should no longer be optional. Governments and civil societies are pushing companies toward water audits, demanding they meet benchmarks for water use, and asking that companies disclose their water footprint.

These new requirements are coming as policymakers rethink economic models in the face of economic slowdown and environmental stress. For example, there is momentum behind new trade and investment policies designed to transition economies to a low-carbon path while creating new jobs.

Deepali Srivastava dee...@gga.nyc is senior director of content strategy at Global Gateway Advisors. Her articles on socioeconomic and environmental issues have appeared in Forbes Asia, MSNBC.com, and warscapes.com.

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