HSBC Announces Five Year Global Investment In Water

HSBC Announces Five Year Global Investment In Water

Importance of river basins in driving global growth to rocket: top ten basins’ GDP set to exceed that of USA, Japan and Germany combined by 2050i

• Universal access to water supply and sanitation would amount to $220bn global economic gain

• Against these findings, HSBC announces 5-year $100m global investment in water

HSBC Group Chairman, Douglas Flint, has announced the launch of the HSBC Water Programme, a new $100 million, five-year partnership with WWF, WaterAid and Earthwatch to tackle water risks in river basins; bring safe water and improved sanitation to over a million people; and raise awareness about the global water challenge.

The announcement comes as a new report from Frontier Economics for HSBC reveals that by 2050, the top ten river basinsii by population are expected to produce a quarter of global GDP - a figure greater than the combined future economies of the US, Japan and Germany - and a sharp increase from a current contribution of 10%. The nine most populous river basins are in growing and fast-growing markets:

World GDP share of ten most populated river basins

Source: Frontier Economicsiii

However the report also forecasts that by 2050, without any improvement in water resource managementiv, seven of these basins will face unsustainable water consumption, with significant to severe water scarcity, meaning at least 30% of the natural water run-off is being consumed. This could mean the GDP growth expected in the river basins would not materialise. In addition, ecosystems home to a quarter of the global population would see further permanent damage, affecting communities’ and businesses’ ability to thrive.

HSBC Group Chairman Douglas Flint commented, “Today’s findings show that the future of river basins is critical for global economic growth. Rapid, collaborative action worldwide is needed to improve water resource management in river basins. The report also highlights the powerful economic rationale for improving access to freshwater and sanitation, at a time when total aid for

water access and sanitation has actually declinedv. The HSBC Water Programme will benefit communities in need, and enable economies to prosper.”

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