Qatium
I don’t think water should be “CSR” (Corporate social responsibility), and for the last two decades I’ve been saying this to companies: Don’t call it CSR, call it something that you have to do something about because otherwise, you won’t have it. It’s as simple as that.
In this latest episode of Distilled, host Will Sarni, CEO of Water Foundry, listens to a new guest’s take on water as an investment, water stewardship in the private sector, and the components necessary to instigate positive change — as well as exploring their journey throughout the water industry.
Usha Rao-Monari, Senior Partner at Wellers Impact and Former Under Secretary at the UN, joined Will to talk through her background. Kicking off the discussion, Will began by asking Usha about what got her hooked on water.
Watch the full video episode below or keep reading for the write-up.
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Usha on how she got hooked on water
Starting in the fields of general infrastructure and energy in the 1990s, just as privatization was gaining momentum, Usha recognized that she didn’t initially choose to work in the world of water.
However, during her tenure at The International Finance Corporation (IFC) while working on water projects, Usha recognized how fascinating the water sector is and its significance as a funding space.
Fascinated by the mix of contrasts in the space fascinating, and citing the emotional, economic, behavioral, and technological drivers within the sector, Usha focused her efforts in the water sector while still maintaining her involvement in renewable energy projects. She believed that water projects offered the most interesting, long-term deals and opportunities.
Usha on water as an investment
Will then went on to ask Usha about water as an investible asset.
Usha began by highlighting the disparity in investment among different infrastructure sectors, with energy receiving the lion’s share of investment. However, she said that when we look at investment flows and despite the crucial role of water infrastructure in society, both public and private investment rarely exceeds 10-15% of total annual infrastructure funding.
You’ve got to wonder why it’s [water] not being invested in. Even countries, multilateral development banks, you name them, are not putting as much money into water — which is very needed — as they do into energy, roads, bridges, and telecom, so that’s why I say it is not yet an investible asset class.
Expressing her opinion on the investment potential of water, Usha said that water, being essential for life, should naturally generate solid cash flows.
She also noted some key differences between water and other areas, recalling the initial skepticism around renewable energy. However, she also referenced how innovative policies like feed-in tariffs eased investor concerns to provide a sense of stability and predictability. Similarly, she mentioned India’s approach to road infrastructure, where the government ringfenced a pool of money to offer the first wave of private investors guaranteed returns.
While recognizing that the situation is changing slowly, Usha said she still questions why similar strategies that combine policy and financial instruments have not been adopted or embraced within water projects as a whole.
Usha on water stewardship in the private sector
Will then asked Usha to comment on her view of water stewardship strategies in the private sector.
Usha believes that companies, under their stewardship umbrellas, are not doing enough. She said that they can significantly increase their involvement in the water sector by playing a role in shaping public policy through increased investment, effort, and technological contributions.
She also said that for these companies, the concept of a “water footprint” often falls under the umbrella of corporate social responsibility (CSR), which she believes shouldn’t be the case. Instead of labeling it as CSR, she emphasized the importance of focusing on the proactive actions and initiatives themselves.
Will then commented that the private sector’s focus on their water footprint has become a box-ticking exercise. Usha agreed and said that there is a lack of genuine commitment from the companies themselves.
However, drawing from her experience on the board of an extractor company, she has noted a shift in perspective among corporations, acknowledging the importance of water solutions alongside other operational concerns.
Companies are beginning to realize that water solutions for their operations are just as important as energy solutions, or transport solutions, or telecom solutions because they are coming up against walls of one sort or another where they are not getting the water they need.
Usha shared her involvement in devising a long-term water plan for the extractors company, emphasizing the need for collaboration with other water users for mutual benefit. She highlighted her contribution of resources, both financial and technological, to tackle the issue. However, she stressed that despite some progress, significant change has yet to materialize.
Usha on the components necessary for positive change
In Usha’s view, every infrastructure or natural resource challenge requires a specific set of solutions. Firstly, it requires some form of long- or short-term financing. Secondly, it requires innovation, both in technology and business models. She said that Infrastructure models are also crucial. Equally important, if not more so, is proper governance — not just policies and regulations, but the institutions that uphold them, whether at the national or local level.
And last but definitely not least for water issues, she said there’s a need for a social inclusion aspect. Without addressing social equity and inclusion, projects and funding might struggle to maintain momentum.
Of bringing together 3 instruments to fund water: The policy instrument, the financial instrument, and finally the social instrument. And by that I mean, how do you ex-ante structure in social equity or social inclusion or justice into a deal structure or a project structure or even a country’s water plan? Once we start looking at it like that, I honestly believe things will start changing.
Usha also underscored the need to integrate social justice into project structures, including the perspectives of civil society and indigenous communities. Finally, she said that water justice means that everybody who needs water gets water, and that ensuring a safe and profitable investment requires covering all bases, including engaging civil society in decision-making processes.
Interested in more Distilled content?
Hosted by Water Foundry CEO Will Sarni, Distilled is a video podcast series that features water leaders from around the world. Each one-on-one conversation explores the guest’s unique career path, discusses the challenges and opportunities facing the water industry, and considers what’s next for water.
You’ll find more episodes here.
