Water: The next ESG investment frontier

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With climate impacts intensifying and regulatory scrutiny mounting, strategic investment in water is emerging as the next big opportunity for forward-looking businesses and investors alike.

At Waterscan, we believe water is the untapped ESG frontier, ready for innovation, risk mitigation, and measurable return.

31% of global GDP, circa $70 trillion, will be exposed to high water stress by 2050 (WRI). Yet, many companies still lack even a basic water strategy, leaving them vulnerable to operational disruptions, reputational damage, and price volatility.

Unlike carbon, where markets and metrics are now well developed, water remains undervalued and under-managed. But that’s changing – fast.

From food production and pharmaceuticals to data centres and distribution hubs, every sector depends on clean, reliable water supplies. And as resource risk intensifies, so too does investor interest.

Far from being a sunk cost, water efficiency is already proving to be one of the most cost-effective ESG plays available.

Our clients, including some of the UK’s leading retail, manufacturing, and logistics operators, are seeing this first-hand: measurable cost savings, fewer supply chain disruptions, and enhanced regulatory compliance, all while contributing to their Net Zero and nature-positive ambitions.

The capital markets are starting to price in water risk. ESG ratings agencies are integrating water metrics. And regulators, especially in the UK, are tightening standards on corporate water use and disclosure.

The upcoming PR24 price review in England is already creating sharper cost signals for large water users. Businesses that take control of their water footprint now will be better positioned to weather the pricing and regulatory shifts ahead.

At World Water Week 2025, Waterscan will be hosting a special talk show event: ‘Wading Into Change’  bringing together sustainability leaders, investors, and water experts to explore the future of corporate water stewardship.

We’ll unpack:

  • What makes water the next carbon for ESG investors
  • How leading organisations are already profiting from better water strategies
  • Where the market is headed — and who’s poised to lead

If you’re serious about building a future-fit business, now is the time to put water at the heart of your ESG approach.

Our representatives:

Madeline Lockyer, Sustainability Business Manager

Eleanor Pendle, Sustainability Research Lead

Barry Millar, Chief Technology Officer

WATCH: Madeline Lockyer previews World Water Week 2025, and how it’s about elevating the role of water within the global climate agenda.

Waterscan