US water investors call for better disclosure on company threats

A group of investors have asked for better disclosure on how US water companies are dealing with environmental challenges, including the impact of climate change on water supplies and their strategies for water conservation.

A dozen investors, controlling over $40 billion in assets, requested the greater transparency in a letter to the National Federation of Municipal Analysts (NFMA) – a not-for-profit that assesses the solvency of bonds, which the investors have purchased to help fund the water projects.

Ceres – which supports sustainability leadership – has launched a new framework to help the suppliers reach out to their investors on the issue.

Its framework is designed to help them prepare financial disclosure documents for investors, which will improve disclosure between the two.

“Given the heightened attention to credit analysis across the municipal market, and the shifting operating environment facing issuers within the water and sewer sector, Ceres is issuing this disclosure framework to ensure that all material information is provided to investors in the primary and secondary markets”, said Ceres in response to the launch of the framework.

Many political leaders met in the Netherlands on World Water Day in March, where water co-operation was discussed in an effort to address the 783 million people who lack access to a clean supply.

It has been estimated that improving water efficiency through increased investment could provide 3.7m jobs by 2020.

Further reading:

World Water Day: why we need to tackle water poverty

World Water Day: long-term opportunities in investing in water

WaterAid urges governments to ‘invest in access to sanitation and water’

Investment in water is a ‘first necessity’

Water efficiency could provide 3.7m jobs by 2020