Italian asset manager plans flow of deals to reduce water waste

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An Italian asset manager has launched plans to create a European champion for decreasing water waste, as giant swaths of the continent battle extreme droughts.

Ambienta, which invests in personal and listed corporations with an environmental focus, is stepping up its publicity to teams whose merchandise restrict water waste. Although the struggle in Ukraine has put vitality safety entrance and centre for European corporations and policymakers, the choice asset manager has warned that water shortage dangers being missed.

“Seventy one per cent of the planet is made up of water but only a small fraction is accessible and renewable,” mentioned Nino Tronchetti Provera, Ambienta’s founder and managing companion. “Already today 10 per cent of the global population lacks access to the water it needs and the figure risks rising to 40 per cent by 2040 if we don’t make the right choices.”

The group, which has €3bn of property underneath administration, has lately made a sequence of investments linked to water with the goal of creating a number one European group within the sector.

Last month it acquired Calpeda, a high-tech water pumps producer primarily based in northern Italy, which it’s planning to combine in its water investments holding firm, christened Wateralia. Water pumps similar to Calpeda’s reduce water dispersion in companies and households, main to vitality and water financial savings.

Wateralia additionally contains Caprari, one other Italian family-owned enterprise specialising in water pumps wherein Ambienta took a majority stake final yr. It now plans to purchase extra such companies and improve its publicity to the sector.

Almost half of continental Europe and the UK are presently uncovered to extreme drought dangers, with uncommon heatwaves being exacerbated by little rainfall through the winter, in accordance to a research by the European Commission.

Italy is one of probably the most affected international locations with the northern area experiencing its worst drought in many years.

“This is not surprising in a world where economic growth has outpaced the ability of the planet to digest pollution and produce enough resources for everyone,” mentioned Tronchetti Provera. “We need practical solutions to traditional business models. If there are water pumps that allow industries that consume large amounts of water to save some, that’s a good investment.”

According to the UN, half of the worldwide inhabitants could possibly be dwelling in areas going through water shortage by as early as 2025.

Water has emerged as a distinct segment funding theme in recent times, spurred by wider curiosity in sustainable investing. Global funding corporations similar to Amundi and Fidelity have launched change traded funds on water-related themes.

Ambienta invests by way of its personal hedge fund and by taking stakes in private and non-private corporations, generally shopping for the latter outright.

The asset manager has revamped €1bn in revenues throughout 148 international locations because it started investing in 2007. In 2021 earnings earlier than curiosity, taxes, depreciation and amortisation grew 18 per cent in contrast with the earlier yr.

The agency has invested in 54 corporations throughout Europe together with in Italy, Germany and France. These international locations had many efficiently family-run corporations that wanted exterior funding to develop additional, mentioned Tronchetti Provera.

One former investee firm, German water-based paint producer Oskar Nolte, expanded globally after being purchased by Ambienta and is now Sweden’s Ikea’s paint provider. Water-based paints are considerably much less pollutant than the normal solvent-based ones.

“Companies won’t solve the world’s environmental issues by planting trees or installing solar panels on their roofs,” mentioned Tronchetti Provera. “If you don’t update your traditional industrial processes, the market will eventually sweep you away.”



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