Environmental Education

Sustainable investment that won’t leave you dry

Experts warn that Australia’s current drought crisis may now be the norm, and the imposition of water restrictions around the country reflects the unwelcome reality of the severity of climate change.

The rainfalls for spring on the east coast of Australia have been dismal compared to the above-average rainfalls in June and July, further deepening fears that the drought is far from over. A drought statement issued by the Bureau of Meteorology reveals that the below average September rainfalls over the Murray-Darling Basin has been the driest since 1900.

Several years of above average rainfall will be required to ease the long-term water deficit, however according to predictions the chance of good rainfalls for the spring season does not exceed 50%.

Up to 60 per cent of Australia’s agricultural land is experiencing drought, while the problem of low dam levels in major capital cities are seeing tighter water restrictions being imposed. As such, there is a great need for other sources of water.

However, new dams or desalination plants do not address the problems of current water consumption level. Dams have severe environmental impacts and are dependent on rain to fill them up. Additionally, dams are a huge financial burden on rate players.

Desalination plants actually increase greenhouse gas emissions and so are direct contributors to climate change. Large amounts of energy are required to power these plants, which produces almost a million tonnes of carbon emissions per year – equivalent to 120 000 households. In addition, the discharges of saline concentrate that result from the desalination process, which often contains processing chemicals and toxins, has negative environmental consequences on the marine environment, such as harming fish and invertebrate populations and destroying marine habitats.

Water will no doubt be a key area for debate in investment circles in Australia as we face a future of water scarcity. In amongst the number of water supply strategies, structures and systems, it seems that water conservation and recycling will be a promising investment area for the future.

Investing in companies that promote water saving practices rather than the status quo fixation on dams and desalination plants will address the water crisis much more effectively and proactively. This guarantees a long-term economic and environmental solution and promotes sustainable water management techniques.

Ethical investment avoids status quo ideas, not for the sake of being different, but for the sake of supporting effective and constructive solutions that will benefit society in the long run. Investing ethically involves supporting the development of appropriate water systems that are sustainable and viable, and that do not increase greenhouse gas emissions, endanger ecosystems, or pollute the environment. Ethical investors invest in companies that adopt these systems, as sustainable returns will come from the support of businesses that are sustainable, both financially and environmentally.

Investing ethically means knowing what your money is doing, and knowing that your investments are not worsening are climate problems.

For more information about ethical investment please visit www.austethical.com.au or call 1800 021 227

By James Thier, Executive Director, Australian Ethical Investment