Ecolab is investing $10 million to a new fund that hopes to bring clean drinking water to 5 million people around the world.
Among the other contributors to the $140 million WaterEquity Global Access Fund IV are Starbucks, Gap, Reckitt and DuPont.
The fund is being managed by WaterEquity, an impact investment asset manager whose co-founder is the actor Matt Damon. The announcement came last week as the United Nations Water Conference was set to start.
The companies are all part of the Water Resilience Coalition, a CEO-led initiative to bring attention to and take action against a growing global water crisis. Nearly 2 billion people today live in water stressed areas and, according to the coalition, that number may grow to half the world's population by 2050.
"As a global water leader who helps customers manage 1.1 trillion gallons around the world, Ecolab believes that water stewardship and sustainable business growth must go hand in hand," said Emilio Tenuta, Ecolab's chief sustainability officer.
Starbucks' contribution is $25 million. The fund also has a $100 million commitment from the U.S. International Development Finance Corp.
Tenuta said Ecolab not only believes the cause is the right thing to do but also boosts "the business case for sustainability by showing a positive return on investment and a positive impact," he added.
The fund is part of a new investment portfolio by the Water Resilience Coalition. More investment will be needed to fund the nearly $1 billion in collective investment opportunities identified by the portfolio.
The portfolio may eventually include other funding vehicles including private equity investments, microloans and impact bonds.
