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. Despite progress, billions of people lack access to safe water, sanitation and handwashing facilities. One third of all primary schools lack basic drinking water, sanitation and hygiene services, affecting the education of millions of schoolchildren. Concerted action is needed to ensure all people have access to safe water and sanitation, today and in future generations. Companies can contribute to this effort in several ways, including by avoiding polluting local water sources, reducing water withdrawals and ensuring sustainable water use in internal operations and supply chains (especially in water-stressed regions), providing safe water at all global facilities, creating jobs (economic mobility usually allows greater access to clean water), and making charitable donations to clean water and sanitation organizations
How companies are rated
Ethos is using 187,017 unique data points since 2017 to rate companies, stocks and funds on water and sanitation, including from these metrics:
Financial performance
r =
Company ratings 1-yr return
Top 10 for water and sanitation
Top 50 for water and sanitation
S&P 500 Index
Bottom 50 for water and sanitation
Bottom 10 for water and sanitation
Water and sanitation 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
Clean water
safe water
drinking water
water use
sustainable farming
access to water
access to sanitation
UN Sustainable Development Goal 6