Chinese bottled water IPO offers up a muddy glass 18 Dec 2019 Market-leader Nongfu Spring could raise more than $1 bln in Hong Kong. Mainland households are drinking more of the bottled stuff as incomes rise. That thirst, though, has brought competitors, and may also prompt a much-needed tightening of environmental and consumer rules.
E-book: Water, climate and finance 18 Nov 2019 Global warming makes itself felt most keenly through floods, drought and changing rain and snowfall patterns. This collection of columns lays out Breakingviews’ take on what that means for companies, investors and economies around the world.
Nestlé shrugs off eco worries with water refresh 17 Oct 2019 The $316 bln consumer giant wants to revive a tepid growth in a business dogged by environmental concerns. Splitting the division into three locally-managed units may help the Perrier maker push new products. But any dilution of financial reporting would also mean less scrutiny.
Suez turnaround is stuck on an amber light 2 Oct 2019 Empire-building has weighed on the French utility’s returns. A new focus on the bottom line is thus a win for activist Amber Capital. Still, a share price dip on Wednesday suggests investors aren’t ready to take CEO Bertrand Camus’s promises of better top line growth on trust.
Markets short-termism keeps climate fight boxed in 27 Sep 2019 Governments and the private sector alike pledged to do more to tackle global warming at the U.N. climate summit. Committed financial resources, though, are thin on the ground. Blame wary CFOs, hidebound investors and skewed incentives. It’s creating huge embedded risks.
Guest view: Water can make or break climate action 23 Sep 2019 Billions lack access to safe water and sanitation. Traditional fixes are energy- and carbon-intensive. But as Peter Gleick of the Pacific Institute and Gary White and Matt Damon of Water.org argue, a mix of leak detection, renewable power and green finance can take up the slack.
Climate-activist investors are due for a new dive 3 Sep 2019 Treating and moving water can account for 20% of energy use. And many companies are ignoring the risk to their operations of too much or too little of the liquid, judging by a recent industry conference. That presents fertile ground for pushy stock- and bondholders.
The Exchange: Banking on water 27 Aug 2019 Wall Street is diving into climate risk - with the exception of water. Torgny Holmgren of the Stockholm International Water Institute explains how that’s starting to change and how properly valuing the asset and smart use of technology are key to solving the crisis.
Wall Street mistakes water for a business washout 26 Aug 2019 Big banks and investors are thin on the ground at water confabs, including this week’s bumper affair in Stockholm. Yet clean, fresh supplies are increasingly scarce. The economic and financial implications interact with climate risks, too. The finance whizzes are missing out.
Suez boss gets helpful kick in derriere from Amber 18 Jul 2019 The 8 bln euro French utility, whose history includes the Egyptian canal’s construction, presents a juicy target for the activist. Bertrand Camus just took the reins in May, following years of crummy empire-building returns. He should welcome Amber’s thoughtful approach.
Viewsroom: Can India solve its water crisis? 11 Jul 2019 Chennai, the country’s Motor City, has run dry. Another 20 metropolises could follow by next year. The personal and economic toll is mounting. Plugging leaks, better crop choices and proper pricing can help. Often, as water problems elsewhere show, that requires good governance.
India Insight: Not enough water for 1.3 bln people 10 Jun 2019 Maharashtra boasts one-tenth of the country’s population and the biggest economy of any state, but it is parched. Beyond the capital, Mumbai, a cattle camp offers a window into India’s struggle with water. Skewed incentives need to be reset, and more, to avert a stirring crisis.
Water can flow around U.S. infrastructure blockage 24 May 2019 The $1 trln needed to fix the nation’s aging pipes and other H2O infrastructure isn’t coming any time soon – as a new delay to a U.S. funding plan makes clear. The industry still has room for improvement, though, starting with better use of technology, data and capital.
UK may swap one utilities dogma for another 15 May 2019 If elected, opposition Labour leader Jeremy Corbyn could nationalise water and energy networks below market value. Crudely ditching privatisation for state ownership carries legal and reputational risks. Better to lower the returns that regulators allow these companies to make.
UK water-scarcity fix may pour billions down drain 22 Mar 2019 Climate change and population growth could cause chronic shortages by 2050. Whitehall’s preference is to target individual consumption and talk up costly infrastructure. It would be smarter and cheaper to push the biggest users – business and the power industry – to cut back.
The Exchange: The water-crisis marathoner 19 Mar 2019 Investors and companies are ill prepared for the rising scarcity of this most important natural resource. With World Water Day on March 22, Thirst CEO Mina Guli lays out the issues and explains why she decided to run 100 marathons in 100 days to draw attention to the problem.
Investors and citizens try to dam U.S. water risk 1 Mar 2019 An Ohio city voted to protect Lake Erie by granting it rights similar to humans'. Investors managing $6.5 trln want fast-food giants like McDonald's to reduce suppliers' pollution. It's welcome pushback against lax business practices and President Trump's environmental neglect.
World will improve where it matters most in 2019 24 Dec 2018 By next December, more people will have electricity and clean water. Child deaths are likely to be rarer and education more common. In future years, the pace of gains could accelerate. The open question is whether progress will undermine prosperity by also bringing more conflict.
What makes Connecticut Water so tantalizing? 6 Aug 2018 SJW is now paying a one-third premium for the staid Nutmeg State utility. It may flush away rival bidder Eversource and stalker California Water. But the investment return will be low. It only makes sense as a way to invest in infrastructure and prepare for a wave of water deals.
Franco-Dutch utility deal muddies U.S. M&A waters 31 Jul 2018 Suez is selling a fifth of its stateside unit to pension manager PGGM for 30 times earnings. The $601 mln transaction looks even pricier than the takeover battles for two other U.S. water utilities. With asset scarcity making the market frothy, buyers risk ending up high and dry.