Outlook 2025
15 Nov 2024
24 May 2024
By Olivia Cook, Sustainable Product Specialist
This article is designed to be thought leadership content to offer big picture views and analysis of interesting issues and trends that matter to our clients and the world in which we live. It is not designed to be taken as expert advice, investment advice or a recommendation and any reference to specific companies is therefore not an opinion as to their present or future value or broader ESG credentials. Reliance upon any of the information in this article is at the sole discretion of the reader. Some of the views and issues discussed in this article may derive from third-party research or data which is relied upon by Barclays Private Bank and may not have been validated. Such research and data are made available as additional information for the reader where appropriate.
The COVID-19 pandemic highlighted to the world the importance of water, sanitation and hygiene (WASH), and showed how its prioritisation was crucial in helping many of us return to normal life. However, millions of people globally still lack adequate WASH services1. A 2022 analysis of WASH across 121 countries showed that only 45% are on track to achieve their drinking-water coverage targets, and just 25% are on course to hit their sanitation national targets1.
WASH receives a smaller share of funding compared to other areas of the UN’s Sustainable Development Goals (SDGs), despite the impacts of insufficient WASH services being broad and interwoven with other goals2. Among others, inadequate WASH services limits progress towards adapting to climate change, ensuring food security, improving education and increasing economic productivity3.
Access to water and sanitation is also a human rights issue, and one that will be key in achieving global equality, particularly for women and girls3. Many of the people most impacted by the lack of WASH services are those working in the informal sector, which makes up nearly 83% of employment in Africa and includes a high proportion of women4. By not properly addressing the issue of WASH, the global economy could lose billions, if not trillions, of US dollars5. Undeniably, part of this comes from the time women spend away from the workforce and education due to lack of access to safe water6.
Target 6.2 of the SDGs aims to “achieve access to adequate and equitable sanitation and hygiene for all and end open defecation, paying special attention to the needs of women and girls and those in vulnerable situations” by 20307.
Water scarcity has a greater impact on women and children as typically they are responsible for collecting water, with women fetching water in 7/10 households without on-site supply8. Lack of access to adequate toilet and hygiene facilities also disproportionately affects women6. For example, women who are unable to meet their health and hygiene needs due to menstruation often end up missing school and work9. All these hours lost due to inadequate WASH facilities can also be hours taken away from women being in paid work and contributing to the economy. According to WaterAid, in India alone, every year 150 million workdays are lost due to the time spent collecting and carrying water10.
Women are also more likely to expose themselves to illness through open defecation, than take a journey further afield that could make them more vulnerable to sexual harassment and assault11. Even where toilet facilities are available, sanitation services are often still lacking. Around 2 billion people are unable to wash their hands at home with soap and water6. In many countries, as women and girls are primarily responsible for domestic chores and care duties, the lack of handwashing facilities disproportionately impacts them, putting them more at risk of disease6.
In addition to all this, in recent years, global crises have exacerbated gender inequalities, including access to healthcare and economic opportunities, pushing the targets of SDG 5 (Gender Equality) further from completion12.
The reasons behind water scarcity are varied. To start with, only 3% of the world’s water resources are freshwater13. This, combined with water loss through leakages, as well as decades of over-extraction, misuse and increasingly contamination, has greatly increased the water stress experienced by millions of people14.
It is estimated that over 80% of wastewater produced is released into the environment without treatment15. In low-income countries, this rises to over 90%, causing environmental damage and increased water-borne diseases15. Water- and sanitation-related diseases are one of the leading causes of death in children under five, and past progress on cholera reduction has been lost16.
Furthermore, water and climate change are intrinsically linked. Around 74% of natural disasters between 2001 and 2018 were water-related, and the number and scale of these events is expected to increase with climate change14. Rising sea levels are causing freshwater sources to become salty, further threatening supplies and increasing water stress17. Meanwhile, higher water temperatures allow deadly pathogens to grow17. These risks are not always visible, as even clear water can harbour dangerous diseases.
Understanding and tackling the main causes of water scarcity will be crucial to achieving SDG 6 (Clean Water and Sanitation). A key limiting factor globally is a lack of investment in infrastructure, despite the positive economic and social impacts that development in this area could bring.
Globally, 30-40% of water is lost through leakages in distribution networks and is particularly problematic for countries already facing shortages18. Reducing these leakages would help preserve the little freshwater available. This could be supported through both governmental regulation (i.e. penalties to waterworks for water loss), as well as investment in technology that allows leaks to be detected and fixed18.
Investment in sanitation infrastructure will also be key, especially in improving health outcomes and safety for women. This includes the construction of safe and clean toilets, as well as the proper management of wastewater19. These solutions would also help make groundwater (i.e. water that is found underground) a more viable source of water, by reducing the risk of contamination, which is significantly higher in informal settlements and low-income areas20.
Focusing on alternative sources of water, such as groundwater, will be important, particularly in rural areas (where 80% of people without basic water services live21). This includes harnessing both groundwater and rainwater, as well as treating and reusing wastewater. Treating effluence can create water of a similar quality to drinking water, making it a good way to keep up with increasing water consumption. Advances in filtration and treatment technologies, including desalination technology, as well as water safety testing could make these options viable alternatives to tap water in many regions, improving the lives of the people who live there18.
While groundwater may be the most feasible option in theory, currently, it is poorly understood and often mismanaged22. Other than pollution, this lack of knowledge is one of the biggest threats to the groundwater cycle22. In order to ensure sustainable and fair use of this key resource, investment in trained groundwater professionals and institutions that can safely manage the supply will also be vital in helping to reduce inequalities and water scarcity22.
With the dual challenges of climate change and a growing population, the need for clean water and sanitation is only likely to grow. Without action, pressure on these already limited resources could exacerbate global inequalities. Investment in new technologies that can protect and expand access, as well as in the institutions to manage supply, especially in underserved communities, will be vital in moving towards a fairer and safer world.
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UN-Water Global Analysis and Assessment of Sanitation and Drinking-Water (GLAAS) 2022 report, UN Water and World Health OrganisationReturn to reference
‘Bridging the Financial Gap: Investing in SDG 6’ Catarina de Albuquerque, SDG Knowledge Hub, January 2021Return to reference
‘Global Issues – Water’, United Nations website, January 2024Return to reference
‘The Case for SDG 6 in a Post-COVID-19 World: How targeted investment in water and sanitation can boost resilience’, Oxfam, 2023Return to reference
‘Water crisis threatens USD58 trillion in economic value, food security and sustainability’, WWF press release, October 2023Return to reference
‘Progress on household drinking water, sanitation and hygiene 2000-2022: Special focus on gender’, World Health Organisation and UNICEF, 2023Return to reference
United Nations Sustainable Development Goals 2015Return to reference
‘Progress on household drinking water, sanitation and hygiene 2000-2022: Special focus on gender’, World Health Organisation and UNICEF, 2023Return to reference
‘Menstrual health and hygiene’, World Bank, May 2022Return to reference
Girl Strong campaign, Wateraid US, cited on the Wateraid US website as of February 2024Return to reference
‘Household sanitation access and risk for non-marital sexual violence among a nationally representative sample of women in India, 2015-16’, Kayser GL, Chokhandre P, Rao N, Singh A, McDougal L, Raj A, SSM Population Health, January 2021Return to reference
‘Sustainable Development Goal 5: Progress and Info', United Nations, 2023Return to reference
‘Water scarcity’, WWF website, October 2023Return to reference
‘Reimagining WASH: Water security for all’, UNICEF, March 2021Return to reference
‘Wastewater as a resource’, European Investment Bank, May 2022Return to reference
‘The Case for SDG 6 in a Post-COVID-19 World: How targeted investment in water and sanitation can boost resilience’, Oxfam, 2023Return to reference
‘Water and the global climate crisis: 10 things you should know’, UNICEF, March 2023 Return to reference
‘Water sobriety, alternative sources and circular models’, Roland Berger, 2023Return to reference
‘How improved sanitation can enhance the life of women and girls worldwide’, International Water Association, March 2023Return to reference
‘The invisible connection between groundwater and sanitation’, International Water Association, November 2022Return to reference
‘Progress on household drinking water, sanitation and hygiene 2000 – 2020’, World Health Organisation and UNICEF, 2021Return to reference
‘Groundwater, Making the invisible visible’, UN Water, 2022Return to reference