Water is overused, undervalued and underinvested, and there is a fundamental need to change the current approach to investment in this area (Figure 1). The water crisis is complex, but solvable. Unlocking solutions will require greater recognition of water as an investment area that underpins economic stability, public health and environmental resilience. Water’s close connection to public health makes the sector inherently risk-averse and historically slow to adopt new technologies. But this also means there is a significant untapped opportunity for innovation to transform how this essential resource is managed and valued, and for first-mover investors to set the direction of innovation in water. The reality is clear: water remains severely underinvested, despite the urgent need for financial support. Technological innovation is a critical tool that can be deployed in every market, enabling efficient water use, improving water quality and enhancing water management in diverse settings. As this paper will show, there are diverse impactful opportunities to invest in solutions that protect, conserve and sustainably manage this vital resource.Investing responsibly As interest in water as an investment opportunity grows, it is essential to adopt a responsible approach to investing that prioritizes equity, sustainability and long-term stewardship. Water is not merely an economic asset; it is a fundamental human right, a shared public good and an ecological necessity. As more private capital enters the sector, strong oversight and accountability mechanisms are needed to ensure that investments do not compromise access, affordability or environmental integrity. Without clear guardrails, there is a risk of repeating the mistakes seen in other essential sectors such as housing and healthcare, where financial returns have sometimes come at the expense of public well-being. Responsible water investing must be grounded in principles that protect vulnerable communities, respect local governance and align capital with solutions that enhance resilience and long-term public benefit.1.1 The environmental, economic and social imperative of investing in water The need for innovation in water: A snapshot FIGURE 1 Source: Global Commission on the Economics of Water; WWF; Kumar, M., Jangam, C. L., & Singh, S. K.; The World Bank; Guo, Y., et al..By 2030 water demand is expected to outstrip supply by 40%4Water is integral to over 60% of global gross domestic product (GDP)5Groundwater is being withdrawn at a rate 3.5 times faster than it is able to replenish itself in some major aquifers6To meet SDG commitments, the world needs to mobilize up to $7 trillion by 2030 for global water infrastructure7 By 2027, global AI demand is expected to account for 1.1–1.7 trillion gallons (4.2–6.6 billion cubic metres) of water withdrawal, more than four to six times the total annual water withdrawal of Denmark8 Aquakit: a greywater treatment technology solution. Investing in Water: Aligning Investment Strategies with Water Innovation 8

Investing in Water Aligning Investment Strategies with Water Innovation 2025