There are also investment implications for sustainable investing with the companies who will be building the water treatment, agricultural and electricity generation projects in these hard to come by areas.
Morgan Stanley estimates that global demand for food and energy will go up by 50% from current levels by 2030 and water demand will increase by 40%. There will be trillions of dollar spent in pursuit of meeting that increased demand.
There are obviously no guarantees that share prices of the engaged companies will outperform the broad market but sustainability creates a multi decade, multi trillion dollar tail wind and clients will increasingly ask about this theme, they will want their advisors to know about sustainable investing and want to hear about what portion of their portfolio is devoted to sustainability.
This article was written by AdvisorShares ETF Strategist Roger Nusbaum.