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Highlights
- According to leading environmental disclosure platforms CDP and Planet Tracker, losses of a minimum of US$225 billion are being faced by financial institutions owing to water-related risks.
- The most widespread effects of these risks on businesses include a decline in revenues, and a fall in production, accompanied by a hike in costs.
- Environmentally conscious investors are nowadays investing in companies that are more sustainable in their operations.
Financial firms are facing losses of a minimum of US$225 billion owing to water-related risks, as per leading environmental disclosure platforms CDP and Planet Tracker. As per the report presented by the think tanks, more than 30% of the financial firms are not taking any kind of action to evaluate the likely effect of these risks.
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The water situation may worsen if immediate steps aren’t taken to alter the ways of producing and consuming water. By 2030, the supply of water may decline by 40% in case of failure to take the appropriate action. Over the coming years, natural calamities like droughts and floods may create several obstacles for businesses amid the rapidly rising pollution levels.
As per CDP, the most widespread effects of these risks on businesses include a decline in revenues, and a fall in production, accompanied by a hike in costs. Businesses have been underestimating the risks associated with water security, and a third of the financial companies reporting to CDP was not reviewing the harm that could be caused to their business due to the water-related risks.
Banks, investors, and insurers should thus be aware of their investments becoming potentially uneconomic in the long run due to ignoring the water security issues. Environmentally conscious investors are nowadays looking for investment options that are more sustainable in their operations.
Let’s look at 3 UK companies with LSE’s green economy mark that investors may keep an eye on.
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Foresight Solar Fund Limited (LON: FSFL)
Foresight Solar Fund Limited’s shares were up by 1.03% as the market opened at 9:25 AM (GMT+1) on 5 May 2022, at GBX 118.20. The company has offered its shareholders a return of 22.35% over the last one year as of 5 May 2022, while its return on a year-to-date basis stands at 16.80%. The company’s current market cap stands at £713.65 million.
2022 Kalkine Media®
Bluefield Solar Income Fund Ltd (LON: BSIF)
Bluefield Solar Income Fund Ltd’s shares were up by 0.74% at 9:27 AM (GMT+1) on 5 May 2022, at GBX 135.50. The company has offered its shareholders a return of 9.79% over the last one year as of 5 May 2022, while its return on a year-to-date basis stands at 8.49%. The company’s current market cap stands at £667.21 million.
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Downing Renewables & Infrastructure Trust PLC (LON:DORE)
Downing Renewables & Infrastructure Trust PLC’s shares were down by 0.67% at 9:28 AM (GMT+1) on 5 May 2022, at GBX 111.50. The company has offered its shareholders a return of 17.95% over the last one year as of 5 May 2022, while its return on a year-to-date basis stands at 8.18%. The company’s current market cap stands at £153.79 million.
