One of the City’s most prominent fund management groups is heaping fresh pressure on the environmental record of Britain’s water industry by calling for suppliers to take steps to curtail the spread of antimicrobial resistance (AMR).
Sky News understands that Royal London Asset Management (RLAM), which manages £169bn in assets, is calling on the UK’s regulated water companies to address the risks of AMR by treating wastewater more effectively.
Its call comes as the water industry faces unprecedented political and public scrutiny over its finances, governance and performance, with the largest player, Thames Water, hovering on the brink of collapse.
The AMR call from a major fund manager underlines growing global concerns about its impact on global health.
The World Health Organisation has labelled AMR as one of the 10 most pressing health threats, with an estimated 10m lives being lost annually by 2050.
Many of the UK’s water companies are engaged in a tense standoff with Ofwat, the industry watchdog, over their spending plans for the next five-year regulatory period.
Water quality in rivers has re-emerged as a subject of national controversy in recent months, with investors such as RLAM hopeful of raising awareness of issues such as AMR and of water companies confronting them.
Carlota Garcia-Manas, RLAM’s head of climate transition and ESG engagement, said: “Wastewater treatment plants can play a pivotal role in mitigating the spread of AMR by serving as an effective barrier that reduces the discharge of antibiotic resistant genes into the environment.
“Although wastewater treatment plants have seen technological advancements, historically, these facilities were not specifically designed with AMR in mind.
“We are committed to continuing our engagement with water companies to ensure the adoption of best practice and the crucial role they can play in mitigating the spread of AMR and ensuring the safety of water resources.”