ESG Matters, Issue 5, April 2013 - Allianz Global Investors

More documents

Recommendations

Info

water andmining/section 5to offer a wider range of solutions. Thus, it is reasonableto claim that more than 90% of wastewater can alreadybe reused if adequately treated.Looking at environmental contamination incidents,most of the water pollution cases in the industry aredue to negligence and not necessity. Integral pollutioncontrol systems, water treatment systems, sufficientmeans allocated to plant security, adequate wastemanagement and efficient emergency plans in theevent of incidents are all measures to better tacklewater pollution.Are there any opportunities to seize upon?Increasing demand for water treatment systemsfrom the mining industry is a big opportunity forthe water treatment industry. Mining companiesare increasingly investing in water treatment,wastewater reuse and water stewardship andthis set to continue as public criticism of themining industry’s environmental practices putspressure on companies’ license to operate andwater scarcity becomes a reality.According to the Global Water Intelligencereport, the mining industry may double theamount spent on improving water infrastructureby 2014 (US$13.6bn vs. US$7.7bn in 2012). Themajority of this increase is expected to be spenton desalinisation systems, chemicals filtrationand wastewater treatment (microfiltration,reverse osmosis, etc.). This is a great opportunityfor the water treatment industry!The mining industry is vital for global economicdevelopment and growth. Natural resources drivemuch of the modernisation of society and as such playa crucial role in the global economy. As the world’spopulation grows, and as emerging markets develop,the demand on these scarce resources will onlyintensify. Ceasing to mine natural resources is not anoption. However, responsible mining should be moreheavily enforced.After years of irresponsible use of resources, progresshas then been made regarding water management inthe mining industry and some companies arebeginning to significantly distinguish themselves,trying to solve the water related risks, considered asinherent to the industry for such a long time. However,while global growth remains below trend, demand formetals is falling, and mining companies are starting tobecome less aggressive towards growth. Instead,without such high levels of demand, they are focusingon keeping shareholders happy through capitalreturns and share buybacks. There are concerns that inthis environment some mining companies will look tocut corners and not be willing to invest in watermanagement systems. Investors cannot ignore waterrisk while analysing mining companies’ performances.Investors need to understand the big and complexchallenge water represents for industry, and shouldencourage companies to disclose right and reliableindicators to assess and mitigate water costs and risksfor a company.30
ESG Matters | Issue 5DisclaimerInvesting involves risk. The value of an investment and the income from it may fall as well asrise and investors may not get back the principal invested. Past performance is not indicativeof future performance. No offer or solicitation to buy or sell securities, nor investment advice/strategy or recommendation is made herein. In making investment decisions, investorsshould not rely solely on this material but should seek independent professional advice.Statements concerning financial market trends are based on current market conditions,which will fluctuate. Forecasts are inherently limited and should not be relied upon as anindicator of future results. The views and opinions expressed herein, which are subject tochange without notice, are those of the issuer and/or its affiliated companies at the time ofpublication. The data used is derived from various sources, and assumed to be correct andreliable, but it has not been independently verified; its accuracy or completeness is notguaranteed and no liability is assumed for any direct or consequential losses arising from itsuse, unless caused by gross negligence or wilful misconduct. The conditions of any underlyingoffer or contract that may have been, or will be, made or concluded, shall prevail. Theduplication, publication, extraction or transmission of the contents, irrespective of the form,is not permitted.This is a marketing communication. This material has not been reviewed by any regulatoryauthorities, and is published for information only, and where used in mainland China, only assupporting materials to the offshore investment products offered by commercial banksunder the Qualified Domestic Institutional Investors scheme pursuant to applicable rules andregulations.This document is being distributed by the following Allianz Global Investors companies:Allianz Global Investors US LLC, an investment adviser registered with the US Securities andExchange Commission; Allianz Global Investors Europe GmbH, an investment company inGermany, authorized by the German Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin);RCM (UK) Ltd., which is authorized and regulated by the Financial Services Authority in theUK; Allianz Global Investors Hong Kong Ltd. and RCM Asia Pacific Ltd., licensed by the HongKong Securities and Futures Commission; Allianz Global Investors Singapore Ltd., regulatedby the Monetary Authority of Singapore [Company Registration No. 199907169Z]; and AllianzGlobal Investors Japan Co. Ltd., registered in Japan as a Financial Instruments BusinessOperator.31
Page 2 and 3: The Global ESG TeamLONDONBozena Jan
Page 4 and 5: ottom of thepyramid/ section 1Botto
Page 6 and 7: ottom of thepyramid/ section 1typic
Page 8 and 9: 8Unsustainableopportunities/section
Page 10 and 11: Unsustainableopportunities /section
Page 12 and 13: 12Legislativedrive towardsESG/secti
Page 14 and 15: legislativedrive towardsesg/section
Page 16 and 17: legislativedrive towardsesg/section
Page 18 and 19: THE year ofthe snake/section 4The Y
Page 20 and 21: THE year ofthe snake/section 424,00
Page 22 and 23: THE year ofthe snake/section 4prote
Page 24: Water andMining/section 5Water and
Page 27 and 28: ESG Matters | Issue 5Dewatering imp
Page 29: ESG Matters | Issue 5... roughly 60

ESG Matters, Issue 5, April 2013 - Allianz Global Investors

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?