Swiss water ambassador outdoes Putin for a good cause
Swiss extreme athlete and "water ambassador" Ernst Bromeis is swimming the entire length of Lake Baikal - around 800 kilometers. Bromeis is not only underlining the importance of clean water, he is also surely outdoing Vladimir Putin, who usually chases along on horseback. Now his challenger is entering the stage of Siberia.
The convinced water ambassador Ernst Bromeis sets off unaccompanied on the 800-kilometer northward journey. Only on certain occasions can he call on shore support. The professional swimmer is no stranger to this type of water sport activity. In addition to crossing the largest Swiss lakes, he swam the length of the Rhine (1,200 kilometers and more) 3 to convey the message of the importance of clean water. Nevertheless, this venture in the almost empty Siberian wilderness will be fundamentally different from drifting downstream between the Swiss Alps and the Netherlands.
Swim down the Rhine "a piece of cake"
Either way, Bromeis' immersion in a lake of unimaginable proportions, where the water temperature rarely exceeds 12 degrees Celsius even in summer - and the idea behind it - will send shivers down the spines of athletes and environmentalists alike. The United Nations Water Day on March 22, should also provide an opportunity to look more broadly at Bromeis' plan. After all, the UN has made H2O one of its Sustainable Development Goals (SDGs), or top priorities. 4 In 2015, 29% of the world's population lacked safely managed drinking water supplies and 61% lacked well-functioning sanitation facilities. If these percentages are to be significantly reduced by 2030, as envisioned by the SDGs, major investments in water resources will be required, including pollution control and the development of transportation and water treatment infrastructure.
Just as Bromeis' adventure would not be possible without sponsors, the challenges highlighted in the context of the United Nations Water Goals can only be met with the help of innovative products and services.
Among the companies investors should keep an eye on is the waste management, water and energy group China Everbright. According to the Chinese government's current five-year economic plan, more than $100 billion will be spent on wastewater treatment projects by 2020. The company, whose recent publications include the article "Ecology and Environment for a Beautiful China, "5 is clearly at the forefront of this effort. Beijing companies involved in wastewater treatment could also benefit from this initiative.
A government-sponsored cleanup is one thing; private investment is another. Throughout Asia and Africa, drinking tap water is often unthinkable, forcing households to rely on bottled goods. Manufacturers of water filters such as A.O. Smith, who are in this line of business in addition to manufacturing water heaters and boilers for the U.S. market, could benefit from growing demand in exposed urban areas around the world. The products, which can be installed under the kitchen sink, cost far less than the typical $10 per week a household in emerging markets typically spends on bottled water.
Access to clean water - in raw quantities
For centuries, the largest reservoir of unfrozen fresh water on earth was untouched by civilization. Only the Trans-Siberian Railway moved at regular intervals along the southern shore of Lake Baikal. Its resident salmon species, the Baikal Omul, thrived for many years and despite its reputation as a local delicacy. A look at the reasons why the omul suddenly appears on the list of endangered fish species today shows that conditions in its habitat have deteriorated. Algae1 and pollution from a paper mill that was reopened by Kremlin decree threaten its species.2
While such companies can be a good choice for any equity fund, they seem to be a particularly good fit for a portfolio with an impact-oriented approach. Often, investors who value sustainability seek not only financial performance, but also non-monetary gains. In this case, that means investors hope that companies will improve access to clean water through their products. Ernst Bromeis, for his part, should have plenty of clean water in the coming months.
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1 "Vast and Pristine, Russia's Lake Baikal Is Invaded by Harmful Algae," The New York Times, November 14, 2016.
2 "Ecologists fear for Baikal as Putin saves factory," Reuters, April 2, 2010.
3 "During 44 days swimming the Rhine," Neue Züricher Zeitung, August 20, 2014
4 The Sustainable Development Goals Report 2018, Goal 6: Clean water and sanitation
5 https://www.ebchinaintl.com/en/media/factsheet_dec2018.pdf
