14 October, 2015
Piet Klop, Senior Adviser Responsible Investments, PGGM which is one of the biggest Pension Funds in Netherlands. PGGM consistently implements the idea of Responsible Investments, Exclusion and financial sustainability. Quoting their own words ‘PGGM is convinced that financial and social returns can go hand in hand’. The Fund has chosen few directions for the investments in the problematic areas based on their motto to Invest in Solutions. According to the PGGM Annual Report 2014, their investments in Solutions for 4 challenging areas such as Climate change, Water Scarcity, Healthcare and Food Security totaled € 4.7 billion with new investments in 2014 of € 123 million.
It is not a secret that been carried away by energy resources consumption we really oversaw another Life Threatening scarcity silently worming along the Earth. We are talking about Water Scarcity, which looks and IS absolutely Unstoppable and imminent caused by the whole complex of reasons. Talking of which we should refer in the first place to the almost exponential population growth (just compare 4,371,527,871 in 1970 and 7,243,784,121 in 2014), and climate change. The former has been recognized as a major cause of the Himalayan glaciers melting with the acceleration speed, it draws the darkest future of water consumption for more than half of the Globe population whose drinking water demand depends on the river flowing from those glaciers.
Our question is – why we have being facing such an alarm in regard to the energy resources consumption transforming all of them into commodities trading for years , and so far while paying for the water consumption we refuse the water resources to undergo the same transformation and become the traded commodities?
As we understand from our conversation with Mr. Piet Klop, PGGM there are few major factors that brings water competition more to the Governmental rather than purely market regulation. In contrary to the oil, the first of them is a lack of efficient technologies of water delivery to the distant locations from the source both in terms of speed and expenses, including the water consumption for delivery itself.
The second reason out of many others is the lack of sufficient and up-to – date pricing system. Amazingly on many territories that are suffering from water scarcity – the price of the water consumption is lower than in the places with lots of water sources! Examples? In Denmark and Netherlands people and industries pay much more for the water consumption that in the “dry” covered with desert Arizona (USA).