Water scarcity is an urgent global challenge. According to Candriam’s fifth Sovereign Sustainability report, water scarcity has far-reaching implications beyond environmental concerns. “Water scarcity has a ‘ripple effect’ – not only are the economic repercussions of water stress becoming increasingly evident, but water vulnerability is becoming evident in national elections and immigration challenges,” explained Vincent Compiègne, Deputy Global Head of ESG Investments and Research at Candriam.

The asset manager’s model underscores the finite nature of natural capital, penalising nations in their ranking that attempt to boost economic or other capital at the expense of natural resources. At the same time, the report shows how water stress impacts sovereign debt.

Download the full report here.