The Flow of Innovation: Global Events Create Opportunity For Water Solutions

Access to water is facing severe pressure worldwide, a reality we’re reminded of in near-daily headlines. The statistics tell a clear story: nearly 10% of the global population lives in areas experiencing high or critical water insecurity​​, and climate change-related drought patterns are only increasing.

At Reynders, McVeigh, we see the water crisis as a global challenge – and as a pivotal opportunity for long-term, impactful investment. Companies at the forefront of water technology are creating solutions to ensure reliable access to clean water, build resilient infrastructure, and minimize environmental impacts, all while driving sustainable economic growth.

The Ripple Effects of Severe Weather

For decades, the scientific community reported on the threat of weather events being supercharged by a warming client. It is no surprise that the effects are now rearing their heads, and the speed and intensity of the change is adding to the water crisis.

The hurricane season we just experienced, for example, was foretold to be a busy one by the NOAA. It was exactly that, to the tune of an estimated $500 billion in total damage and economic impacts. The US Southeast was thrashed by several storms, punctuated by Hurricane Helene in September and Hurricane Milton in October.

Hurricane Helene brought extensive damage to North Carolina’s water infrastructure, shutting down critical water treatment plants and leaving hundreds of thousands without clean water access for several weeks.

The damage compounded water infrastructure concerns that predated the hurricane season, with several areas already overdue for maintenance. This is a story playing out across the country. Communities need a stronger, resilient infrastructure and innovative solutions that can be deployed when events curtail access to water.

Global Food Systems Face Disruption

The strain on water infrastructure is not limited to urban systems and storm damage—it extends to our food supply, as well. Global food production, which depends on a stable and abundant water supply, is facing significant disruption by the accelerating water crisis.

According to a report from the Global Commission on the Economics of Water, more than half of the world’s food production faces risk of failure within the next 25 years unless measures are taken to conserve water resources and protect ecosystems that underpin freshwater availability.

The report also found that without action, water problems will shave about 8% off global GDP, with developing nations facing a 15% loss. This imbalance is exacerbated by uneven access: water remains artificially cheap for some—fueled by subsidies that encourage wasteful practices—while being prohibitively expensive or inaccessible for others. These disparities are impacting our agricultural industries, favoring more developed economies at the expense of smallholder farmers in vulnerable regions.

The interconnected nature of global food systems means that water issues in one country ripple outward, broadly affecting trade and supply chains. For example, atmospheric rivers—weather systems that transport moisture across continents—are critical to food security in some regions. A drought in one area will spread related challenges to another.

Countries like China and Russia benefit significantly from these natural phenomena, while nations such as Brazil and India play the role of upstream providers. Without equitable water management and conservation efforts, there could be notable consequences for food security worldwide. Investing in more efficient water systems will help lay the groundwork for protecting this delicate balance.

Looking Ahead

As the water crisis intensifies, addressing challenges requires a collective effort from governments, industries, and, importantly, the businesses driving innovation in water resilience. Backbone players—companies that provide integral pieces of the necessary solutions—are essential to moving the needle on this pressing global issue.

At Reynders, McVeigh, we have the tools and the track record to identify these critical changemakers. By leveraging a long-term approach to sustainable investing, we aim to channel resources into companies at the forefront of water technology, resilient infrastructure, and efficient systems that address water scarcity while promoting economic and environmental sustainability. 

The need for action is urgent, but it is also an opportunity. By investing in the future of water resilience today, we can help secure a more sustainable relationship with our most precious resource tomorrow.

Read more about our water investment strategy in our latest discussion paper, here.

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