According to a new study commissioned by HSBC, almost half the world’s population will be living with water scarcity by 2025 unless effective measures are taken.
The recent report, carried out by Frontier Economics, also shed new light on the ways in which fresh water and sanitation underpin socio-economic development.
Research shows that every $1 invested in water infrastructure can deliver nearly $5 of wider economic benefits over the long term, in addition to social and environmental benefits.
Moreover, the study also shows that the investment required to secure universal access to water in some African countries will be paid back in as little as three years.
In recognition of this looming water problem, HSBC is investing $100 million (€81 million) in the most far-reaching water programme ever committed to by a financial organisation.
Following the HSBC Climate Partnership (2007-2012), this new five-year environmental initiative will focus on three key objectives: providing water, sanitation and hygiene to communities in need; protecting key river basins vital to communities and business around the world; and promoting the value of water to the bank’s community of employees through learning and volunteering.
HSBC will be working closely with WWF, Water Aid and Earthwatch, to tackle the global water challenge through social and environmental projects that deliver water provision, water quality protection, and education.
These three leading NGOs, each targeting a specific area of action, will oversee projects in developed and growing markets, and driving development and socio-economic growth. WWF will work to promote more efficient use of water in five river basins in Asia, East Africa and South America. Water Aid will help 1.1 million people gain access to safe water and 1.9 million to improved hygiene and sanitation where it is most needed.
Earthwatch will set up research projects in over 20 cities worldwide, working with local conservation partners to address urban water management issues.
In addition, thousands of HSBC employees and their wider local communities will be volunteering in a large-scale citizen science programme, collecting robust scientific data using innovative technology. The results of these studies will be used to support environmental projects in the respective communities and increase awareness about water conservation around the world.
More information and research findings are available online at www.thewaterhub.org.
The table shows investment needs and potential economic gains in the six Asian and African countries through the HSBC Water Programme (Source: Frontier Economics).HSBC Malta’s water management polices
• Since 2007, the bank has taken a firm stand against the over-extraction of water from boreholes. HSBC Malta maintains a storm water reservoir which, in 2011 alone, provided 950,000 litres of second-class water.
• HSBC buildings are fitted with water-saving technologies: half-flush facilities and water restrainers on all taps, saving between 25 to 65 per cent.
• The bank is participating in the Malta Business Bureau’s EU Life+ Investing in Water Project, a €330,000 project to reduce the water consumption of businesses and hotels.
• Employees are actively encouraged to develop proposals as part of the bank’s Water Programme.