Trends Watch: Water Investment Opportunity

EisnerAmper’s Trends Watch is a weekly entry to our Alternative Investments Intelligence blog, featuring the views and insights of executives from alternative investment firms. If you’re interested in being featured, please contact Elana Margulies-Snyderman.  

This week, Elana talks with Thomas Schumann, Principal, Thomas Schumann Capital.

What is your outlook for investing in water?

I consider water the single largest investment opportunity in the history of mankind for social, environmental, and financial impact and profit.

What are the greatest opportunities you see and why?

Water security, the United Nations’ Sustainable Development Goal 6, is the greatest opportunity as it ensures social, environmental, and economic health and wealth. No human, society, business can survive and thrive without access to water. Water risk affects all asset classes. The financials of every company are either directly or indirectly impacted by access to water. Nine out of the ten worst global risks are linked to water, according to the World Economic Forum. Climate IS water. Climate expresses itself primarily through water. Investing in water security and water stewardship mitigates the risks of underperformance, loss of capital, stranded assets for corporates and investors worldwide. 

What are the greatest challenges you face and why?

The single greatest challenges are: 1) The lack of education and information of global capital markets about the value and importance of water as a key financial metric and input in every single portfolio, investment decision and allocation and 2) The misguided narrative of the mainstream media that climate is the biggest threat humanity and society faces. Humans and businesses can operate and survive in high carbon environments. They cannot function without access to clean water. Hence water needs to elevated ASAP next or ideally above climate. Both UN SDGs Water Security and Climate Action are inextricably linked; however, water is the key driver of life and the foundation of economies. 

What keeps you up at night?

Nothing. I am blessed with great sleep, restful sleep I need for a daily purpose-driven mission and investment solutions that fast-track water security by influencing capital flows to serve 7.8 billion stakeholders. 

The views and opinions expressed above are of the interviewee only, and do not/are not intended to reflect the views of EisnerAmper.