Sustainability-focused asset management firm Candriam announced today the launch of the Candriam Sustainable Equity Water Fund, a new actively managed fund aimed at investing in companies pursuing and developing solutions to reduce pressures on water resources caused by human activities.

According to Candriam, the new fund is being launched as the world faces a water shortage, exacerbated by the impacts of climate change, with growing scarcity emerging as one of the leading challenges for sustainable development, driving a need for investment of nearly $23 trillion for essential infrastructure by 2050.

Classified as Article 9 under the EU’s SFDR regulation, indicating a clearly defined sustainable investing objective, the new fund aims to create a broad spectrum of investment opportunities, targeting both “water solutions enablers” providing solutions to treat, transport, distribute and valorize water, and “water efficiency leaders” reducing water intensity through their own processes in high water use sectors.

The fund will be co-managed by Senior Fund Managers Bastien Dublanc and David Czupryna, and will follow a portfolio construction approach which includes thematic screening, ESG screening and in-depth thematic analysis.

Johan Van der Biest, Co- Head of Thematic Global Equity at Candriam, said:

“Water, indispensable for survival, is at the center of a growing global imperative. The launch of this Fund provides sustainably conscious investors with an opportunity to be part of the solution to an intensifying global challenge. As the water crisis escalates, the market of solutions working to mitigate these challenges is growing in tandem – the global water market is expected to exceed $1100 billion by 2030 [8]. Investors also benefit from access to a growing market opportunity backed by our extensive experience in sustainable and thematic investing.”

The new fund is available for distribution in Luxembourg, Austria, Belgium, France, Italy, Germany, Switzerland, Finland, Sweden, Denmark, and The Netherlands, and will also be available in the UK in the coming weeks.