Beijing Enterprises Water Group Limited is an environmental leader and a holding in the Pax Global Environmental Markets Fund. The Fund invests in companies that are developing innovative solutions to resource challenges – including water, energy, waste, and sustainable food & agriculture. In this article we discuss Beijing Enterprises Water Group Limited as an example of how positive environmental impact is a natural outcome of the Fund’s investment process.
Rapid industrial growth not only requires water as a resource, but also contaminates fresh water sources when waste is released back into the environment. For example, in 2012, China’s discharge of wastewater reached 68.5 billion tonnes1, a figure similar to that of the annual flow of the Yellow River.
It is estimated that about one third of industrial wastewater is released into rivers and lakes without treatment, while nearly 80% of China’s cities have no sewage treatment facilities.2 In 2011, the Chinese government reported that 43% of China’s rivers were so polluted, they were deemed unsuitable for any form of human contact2. Raising water quality has now become a strategic area of investment and creates opportunities for companies to expand water infrastructure and treatment services.
Beijing Enterprises Water Group Limited sees a long-term opportunity in providing access to clean drinking water across China. The scope of their business covers sewage treatment, waste incineration, water distribution and construction projects.3 It is already involved with over 450 operational or soon to be operational water plants across 25 provinces.3 Beijing Enterprises Water Group Limited provided approximately 3 million megalitres of safe, clean water throughout China in 2016.4 Companies such as Beijing Enterprises Water Group Limited can help mitigate industrial pollution and protect fragile communities and ecosystems.
For information about the Pax Global Environmental Markets Fund, visit the Fund page here. To learn how we measure the Fund’s environmental impact, read the blog post Making an Impact: Investing in the Transition to a More Sustainable Economy.
As of 3/31/18, Beijing Enterprises Water Group Limited was 1.6% of the Pax Global Environmental Markets Fund. Holdings are subject to change.