Matthias Fawer & Thomas Trsan ( Vontobel AM) | If oil greases the wheels of the global economy, water helps to make its turbines spin. The amount of water used in industrial processes may be less publicized than the “blue gold’s” significance for planting crops, but it is no less significant. Earlier this year TSMC, one of the world’s largest manufacturers of electronic chips based in drought-hit Taiwan, had to resort to water imports to maintain production. Whilst crude oil and its derivatives are part of a well-established industry that may be past its peak, water and its varieties – green, blue, grey, or any other color – may still have surprises in store for us.
The exceptionally hot summer afflicting large parts of the planet has highlighted the precariousness of a finite resource – clean, consumable water. According to Allianz Global Investors, “by helping to bridge the gap between water supply and demand, investors can help address a critical structural problem while adding growth potential to their portfolios.”