Water Scarcity

Global water demand has increased six-fold over the last century and, by 2030, the gap between global water supply and demand is projected to reach 40%. Water scarcity is a threat to all humanity: 

• A quarter of the world’s population currently lacks access to safe drinking water. 
• Drought is a major threat to food security, as a quarter of the world’s crops are grown in areas where the water supply is highly stressed or unreliable. 
• Water scarcity threatens power generation in countries which depend upon hydroelectric power. 
• Extremes of drought are exacerbated by climate change, the rising global population and agricultural and industrial practices. 
• The World Bank has estimated that water scarcity in some regions could diminish growth by up to 11.5% over the next 25 years. 
• Water-intensive companies in the pharmaceutical, technology and agricultural sectors face significant threats to their business models and the prospect of litigation. 

Investment in water infrastructure is also a significant opportunity for investment and insurance. Trillions of dollars are now being invested in water-saving innovations, desalination projects and alternative farming methods.