Conference Presentation, Panel
The Water Crisis: Time to Turn the Tide
- By 2030, projections indicate 3 billion people will face water scarcity and 50% of the global population will encounter water scarcity problems.
- Water.org aims to provide cumulative water access to 6 million people within the next two or three years, with a long-term goal of serving between 500 million and 1 billion people through coordinated global action.
- As mature loan programs scale, the cost of water connections per person is expected to decrease to a range of $6 to $7, with the new Water Credit debt fund launching in the third quarter of the current year offering a targeted 2% financial return to investors.
- Loan repayment rates for completed water credit loans are anticipated to remain between 98% and 99%, occasionally exceeding 99%, while the model is expected to lower end-borrower costs by reducing capital expenses for microfinance institutions.
- PepsiCo achieved $45 million in cost reductions from 2006 to 2011 through water and energy initiatives and expects to reduce annual production plant water use by 16 billion liters, noting that 2% agricultural efficiency gains could meet the water needs of 750 million people.
- Demographic shifts project that 75% of the planet's population will reside in cities over the next 10 to 20 years, driving the expectation that utilities will eventually view slum communities as a profitable market.
- Water scarcity is ranked as the third highest threat by CEOs according to a World Economic Forum poll, and social impact capital is expected to enter the sector via the new debt fund to correct market failures.
- Corporate and utility perspectives are expected to shift regarding slum communities, while future operations will require a social license to extend sustainability efforts beyond factory gates into surrounding communities.