What is resource scarcity and why is it an investment opportunity?

Resource scarcity refers to the growing shortage of essential natural resources like fresh water, arable land, and raw materials as global population and consumption increase. It creates investment opportunities because companies developing innovative solutions to these challenges are likely to see increasing demand for their products and services. As resources become more constrained, technologies that improve efficiency, create alternatives, or enable sustainable production become more valuable.

How do water technology companies make money?

Water technology companies generate revenue through multiple channels. They sell equipment for water treatment, filtration, and desalination; provide maintenance services and replacement parts; offer consulting and engineering services; develop and license water management software; and some operate utilities that charge for water supply and wastewater treatment services. As water scarcity intensifies globally, these revenue streams are expected to grow substantially.

What is vertical farming and why is it significant?

Vertical farming is an agricultural technique where crops are grown in vertically stacked layers, often in controlled indoor environments using LED lighting and hydroponics. It's significant because it can produce food with 95% less water and up to 99% less land than traditional farming, while eliminating pesticides and reducing transportation emissions. As arable land becomes scarcer and climate change disrupts traditional agriculture, vertical farming technology offers a solution for sustainable food production closer to urban centers.

What are supercritical water oxidation and advanced materials?

Supercritical water oxidation (SCWO) is a waste treatment technology that uses water at high temperature and pressure to completely break down organic compounds into water, CO2, and recoverable minerals. Advanced materials refer to newly developed substances with superior properties (like biodegradable polymers or recycled plastics) that can replace scarce or environmentally harmful conventional materials. Both technologies represent innovative approaches to maximizing resource efficiency and reducing dependence on virgin raw materials.

15 handpicked stocks

Resource Scarcity Portfolio

Innovation is key to solving the planet's dwindling supply of essential resources. This portfolio is built on companies whose technologies are creating sustainable access to water, food, and materials, positioning them for significant growth as global demand intensifies.

Han Tan | Market Analyst

Updated 2 days ago | Published at juin 17