The problem
Less than 1.2% of all water on earth is available for human use, and the UN projects a 40% shortfall in meeting demand for global water by 2030. More efficient use of water is critical to addressing this shortfall, as well as mitigating the impact of increasing droughts and floods resulting from climate change. Companies play a central role in how water is used, especially in industrial, agricultural, and food industries. Companies can contribute to sustainable water use in several ways, including by reducing water withdrawals, especially in high-stress water regions; setting specific targets for their water use and establishing robust policies for water use and management; engaging with their value chains on sustainable water use; leading on developing and implementing international standards for water use; and setting board and executive compensation incentives to better manage water issues
How companies are rated
Ethos is using 90,690 unique data points since 2017 to rate companies, stocks and funds on sustainable use of water, including from these metrics:
Financial performance
r =
Company ratings 1-yr return
Top 10 for sustainable use of water
Top 50 for sustainable use of water
S&P 500 Index
Bottom 50 for sustainable use of water
Bottom 10 for sustainable use of water
Sustainable use of water has a slight positive correlation (
) with financial returns, meaning companies that perform better in this impact area tend to perform slightly better financially
Data partners and sources
What this formula is about
Water use
sustainable farming
industrial agriculture
access to water
water stress
UN Sustainable Development Goal 6