Finance
BlackRock Says Investors Underestimate Risk of Water Scarcity
- Regions including Northern Africa face increasing water stress
- Companies may need to pay more; geopolitical risks are rising
Residents queue to fill plastic water containers at a natural spring in Cape Town in 2018.
Photographer: Waldo Swiegers/BloombergThis article is for subscribers only.
Investors are overlooking the risk of water scarcity and the impact it could have on their portfolios in the coming decade, according to BlackRock Inc.
Water demand exceeding supply in parts of the world is becoming a larger risk to investors a headwind to supply chains and a cause of geopolitical tension, according to the firm’s research arm, the BlackRock Investment Institute.