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Disclaimer: The Reuters news staff had no role in the production of this content. It was created by Reuters Plus, the brand marketing studio of Reuters. To work with Reuters Plus, contact us here.
The $58 trillion crisis
How water is being redefined as the world’s most critical asset
Photo credit: Stefan Forster
Water shortages around the world are causing droughts, health problems and leading to conflicts. Fueled by population growth, rapid urbanization and climate change, the number of people living in water-stressed regions is already 2.4 billion. By 2030, global freshwater demand is projected to outstrip supply by 40%. This is unfolding faster than many climate experts predicted. While the world continues to debate the actions needed to address climate change, the accelerating threat of water scarcity has a direct economic impact that demands immediate attention. Established in 2011 by Thomas Deng Mahmoud Schumann, Thomas Schumann Capital (TSC) has positioned itself at the intersection of freshwater and capital markets. Through Project Greenland, which stewards 140 trillion liters of freshwater from melting glaciers; and the creation of the world's first water security financial instruments (the Global Water Security Index® and the Thomas Schumann Water Security Fund) the company offers a new model for water investment. It is one that seeks to redefine how we address the global water crisis by treating freshwater not as a commodity to be speculated on, but as an investable infrastructure.
The permanent asset
While the global markets obsess over volatile assets such as gold, oil and digital currencies, water remains humanity's only truly permanent asset. Freshwater underpins an astonishing $58 trillion in economic value. It is the lifeblood of agriculture, industry and daily life. Yet, this foundational resource is increasingly under threat. The lack of water security risks an annual loss of 6% of global GDP, equivalent to $10.2 trillion each year. The implications of this are profound. Without a stable supply of this most critical resource, global economic stability is at risk.
The financial sector has an important role to play in mitigating this risk. As TSC has identified, water usage and stewardship can pose significant financial risks that are frequently missed in traditional equity valuations. These risks can directly affect a company's earnings and negatively impact both stock prices and investment performance. By recognizing water as a permanent asset with intrinsic economic value, a new paradigm emerges for investment and conservation.
The investment chasm
A colossal gap exists today between current investment in water infrastructure and the amount needed to avert a global crisis. To achieve universal access to water and sanitation under the Sustainable Development Goals, annual capital investment needs to triple to reach $1.7 trillion by 2030.[1] This figure represents just one component of the broader water infrastructure challenge. Looking at the full scope of global water security—including storage, irrigation, flood protection, and ecosystem preservation—cumulative investment requirements are estimated to reach between $6.7 trillion by 2030 and $22.6 trillion by 2050.[2] This chasm between current spending and future needs represents not just a catastrophic risk, but also an unprecedented opportunity for those willing to innovate.
Traditional water management strategies and funding models are insufficient to bridge this gap. The market for freshwater is vast, estimated at $843 billion in 2022 and projected to reach $1.142 trillion by 2030. However, most competition exists in the downstream value chain, via distribution and treatments. Conversely, there is limited competition in the upstream value chain, where the total freshwater stock can be increased. The extraction of new freshwater is key to reducing pressure on the overall supply. While desalination is one option, it is both energy-intensive and expensive. By contrast, glacier freshwater harvesting represents a sustainable and healthy alternative.
The Greenland paradox
The climate and water crises are deeply intertwined, as is perfectly illustrated in Greenland. With global temperatures rising, the Greenland Ice Sheet is melting at an alarming rate. In 2019 alone, 532 trillion liters of freshwater melted into the ocean, contributing significantly to a rise in sea levels. This melting ice represents a paradox: a precious resource lost to the sea at the same time as the world faces critical water shortages. TSC’s Project Greenland is a bold vision to address this paradox, aiming to advance UN Sustainable Development Goal #6 or "Global Water Security". Its mission is to capture pristine, melting glacier freshwater and transfer this precious resource to drought-stricken regions. This approach not only mitigates the loss of freshwater into the oceans but also increases the world's total freshwater stock by approximately 10%.
Unlike desalinated water, which requires extensive processing, glacier water requires minimal treatment, resulting in lower energy consumption and costs. It is a more sustainable solution, capturing water at source and offering a healthy and pristine freshwater alternative. This "super-premium freshwater" from the Greenland Ice Sheet is the essence of Inland Ice, a premium product that has garnered accolades from Danish chefs, sommeliers and baristas for its high quality and unique gastronomic capabilities.
The innovative water security initiatives
To bridge the investment chasm and scale solutions such as Project Greenland, TSC has also pioneered new financial instruments that treat water as an investable infrastructure, rather than commodity speculation. At the core of this innovation are two initiatives: the Global Water Security Index® and the Thomas Schumann Water Security Fund. The Global Water Security Index® identifies and tracks companies that demonstrate strong water stewardship and manage their water risk effectively; a ground-breaking approach to investing.
This index is a critical tool for incorporating financial water risk into investment strategies and achieving sustainable equity market performance. By focusing on companies that are leaders in water stewardship, the index shifts the conversation from water as a simple resource to a core component of a company's long-term performance. Designed to offer investors a way to mitigate water risk and achieve diversification, the Thomas Schumann Water Security Fund is based on selecting the “best water stewards” from the Global Water Security Index®. By applying ESG (Environmental, Social, Governance) and SDG (Sustainable Development Goal) standards and aligning with SDG 6 and 13 goals, it aims to address water sustainability across all sectors.
The MENA Imperative
While the water crisis is a global problem, its effects are felt most acutely in certain regions. The Middle East and North Africa (MENA) is a prime example. Home to 6.3% of the global population, this region possesses just 1.4% of the world's freshwater. TSC's solutions, such as Project Greenland, are therefore particularly relevant in the MENA region where freshwater resources are scarce.
By providing a new source of freshwater, it helps to alleviate the pressure on existing supplies and offers a foundation for addressing critical challenges across diverse sectors, from drinking water supply and humanitarian relief to potential green hydrogen production. However, MENA isn’t the only region where limited freshwater is providing a challenge. With seven out of ten people expected to live in cities by 2050, water supply will be even more stretched in some urban areas. Climate change is further exacerbating the issue, with 2.4 billion people already living in water-stressed regions, a number projected to grow to 2.7 billion by 2030.
To 2030 and beyond
With eight billion stakeholders and one permanent asset, the next five years will be decisive. We can choose to treat water as a limiting factor, or we can embrace it as a catalyst for innovation and sustainable prosperity. TSC's approach, aligned with UN SDG #6, represents a fundamental shift. By treating water not as a commodity to be traded but as critical infrastructure requiring massive-scale investment, the firm is not just building a profitable business; it is also securing the future of the world's most critical asset for generations to come. The time to act is now.
Discover more from Thomas Schumann Capital
Photo credit: Stefan Forster
With seven out of ten people expected to live in cities by 2050, water supply will be even more stretched in some urban areas
The Thomas Schumann Water Security Fund is based on selecting the “best water stewards” from the Global Water Security Index®
Glacier water requires minimal treatment, resulting in lower energy consumption and costs
The market for freshwater is vast, estimated at $843 billion in 2022 and projected to reach $1.142 trillion by 2030
Freshwater underpins an astonishing $58 trillion in economic value. It is the lifeblood of agriculture, industry and daily life.
A chunk of ice on the shoreline, with waves and a vivid sunset / Photo credit: Stefan Forster
A small waterfall flows through mossy rocks in a dense, green rainforest / Photo credit: Stefan Forster
An eagle swoops low over rippling water, wings fully extended and talons poised for the catch / Photo credit: Stefan Forster
Aerial view of scattered icebergs drifting across deep blue Arctic waters / Photo credit: Stefan Forster
A glacier winds through rugged mountains under a glowing sunset sky / Photo credit: Stefan Forster
A misty waterfall tumbles into a quiet river, framed by moss-covered cliffs / Photo credit: Stefan Forster
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Water shortages around the world are causing droughts, health problems and leading to conflicts. Fueled by population growth, rapid urbanization and climate change, the number of people living in water-stressed regions is already 2.4 billion. By 2030, global freshwater demand is projected to outstrip supply by 40%. This is unfolding faster than many climate experts predicted. While the world continues to debate the actions needed to address climate change, the accelerating threat of water scarcity has a direct economic impact that demands immediate attention. Established in 2011 by Thomas Deng Mahmoud Schumann, Thomas Schumann Capital (TSC) has positioned itself at the intersection of freshwater and capital markets. Through Project Greenland, which stewards 140 trillion liters of freshwater from melting glaciers; and the creation of the world's first water security financial instruments (the Global Water Security Index® and the Thomas Schumann Water Security Fund) the company offers a new model for water investment. It is one that seeks to redefine how we address the global water crisis by treating freshwater not as a commodity to be speculated on, but as an investable infrastructure.
Water shortages around the world are causing droughts, health problems and leading to conflicts. Fueled by population growth, rapid urbanization and climate change, the number of people living in water-stressed regions is already 2.4 billion. By 2030, global freshwater demand is projected to outstrip supply by 40%. This is unfolding faster than many climate experts predicted. While the world continues to debate the actions needed to address climate change, the accelerating threat of water scarcity has a direct economic impact that demands immediate attention. Established in 2011 by Thomas Deng Mahmoud Schumann, Thomas Schumann Capital (TSC) has positioned itself at the intersection of freshwater and capital markets. Through Project Greenland, which stewards 140 trillion liters of freshwater from melting glaciers; and the creation of the world's first water security financial instruments (the Global Water Security Index® and the Thomas Schumann Water Security Fund) the company offers a new model for water investment. It is one that seeks to redefine how we address the global water crisis by treating freshwater not as a commodity to be speculated on, but as an investable infrastructure.
The Reuters news staff had no role in the production of this content. It was created by Reuters Plus, the brand marketing studio of Reuters.
Produced by Reuters Plus for
Disclaimer: The Reuters news staff had no role in the production of this content.
It was created by Reuters Plus, the brand marketing studio of Reuters.
To work with Reuters Plus, contact us here.
References
Hutton G., Varughese M.C. (2016), The costs of meeting the 2030 sustainable development goal targets on drinking water, sanitation, and hygiene, The World Bank
Winpenny, J. (2015), Water: Fit to Finance? Catalyzing National Growth through Investment in Water Security, report of the High Level Panel on Financing Infrastructure for a Water-Secure World.
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