London, December 12, 2018: This week in a series of private meetings organised by Earth Security with banks, investment funds, diplomats and representatives of the UN, a new sustainable finance brief was released, which serves as a blueprint to guide collaboration between investors and governments to align global investments with water security.
Conflicts over water have increased fourfold in the past decade. Diplomatic efforts are intensifying as hydro-political conflicts are expected to rise sharply in the coming decades due to growing competition over water, environmental degradation, climate change in critical regional hotspots (see map below).
The brief, developed as part of our Earth Security Partnerships platform in collaboration with the Swiss Agency for Development and Cooperation (SDC), is a pioneering approach to enable the financial sector to play a more prominent role in addressing key planetary challenges which require addressing their transboundary nature.
The brief offers banks, investors and other financial institutions a clear view of how to better consider the risk scenarios in their ESG investment policies, and the innovation opportunities to actively collaborate with development finance banks and governments to pilot a new generation of impact investment vehicles, from “Blue Peace Bonds” to blended finance and sustainable infrastructure insurance.
Projected hydro-political tensions