Stockholm (NordSIP) – C8 Technologies, a Direct Index provider, partnered with Thomas Schumann Capital®, a solution provider for water security and responsible investing, to produce the TSC US Water Risk Index® and TSC Euro Water Risk Index® for use by global investors.
“Nearly a third of the world is subject to water stress, a burgeoning crisis that only promises to get worse,” Thomas Schumann said. He further explains that “as climate change exacerbates droughts and flooding, and as population growth fuels the ever-growing demand for water, operating and financial risks to businesses will increase. Looking ahead, we believe that companies with good water management practices are positioned to be tomorrow’s market winners.”
“We are excited to welcome the innovative TSC Water Risk Indices onto the C8 platform which will enable asset owners or managers to easily trade the underlying assets of the Indices and, by so doing, keep full control of their capital,” C8’s CEO Mattias Eriksson said. “Importantly, the platform also gives full transparency of any investments, which aligns well with ESG values. With their socially responsible aims, the TSC Water Risk Indices® are ideal to host on our platform.”
According to the announcement, the new index is a systematic, rules-based, thematic investment strategy designed to provide both financial performance and “advance a water-secure future”. The partnership’s target market are pension funds, family offices, asset managers, and endowments. Reportedly, “the new index provides exposure to a diversified basket of large-capitalisation companies across all sectors while tracking UNSDG 6”, rather than the narrower approach of investing “solely in a concentrated basket of water purification manufacturers and water utilities” preferred by its competitors. The partners reported backtesting (2015-2020) outperformance for both benchmarks with better footprints.
“The world needs sustainable solutions that reward investors while encouraging good corporate water stewardship for a sustainable future,” Schumann continued. “That’s why I sponsored this index and why we are so excited to collaborate with C8 to offer it to global investors at the lowest cost and with the greatest transparency and highest degree of control over their capital,” he said.