Sustainability challenge and related SDGs:
95% of urban expansion in the next decades is expected to take place in the developing world. To address the growing number of slum dwellers, inadequate and overburdened infrastructure and services (such as waste collection and water and sanitation systems, roads and transport), investment in #ResidentialUtilities is urgently needed.
Around one billion people worldwide lack access to electricity and another 2 billion lack access to clean drinking water in their homes. We take #ResitdentialUtilities for granted: access to electricity, gas, water, sanitation and waste directly to the home is a fundamental requirement for moving forward as a society.
Together, they facilitate access to clean drinking water and sanitation, allow for easy cooking and food storage and heating or cleaning. With this simplified access to #ResidentialUtilities, their users have more time to think about and work on other challenges in life. Imagine your life without access to these #ResidentialUtilities.
Possible solutions and their contribution to achieving the SDGs
#ResidentialUtilities comprises the provision and financing, as well as the management of infrastructure for electricity, gas, water, wastewater and waste. The focus lies primarily on private and residential customers, including in emerging markets and underserved regions.
In SDG 1 “No Poverty” one target explicitly measures the “Proportion of population living in households with access to basic services”. Providing households with access to energy and water, as well as waste removal frees up time and headspace.
The time and effort spent on these activities, often performed by women or children, can then be used for other activities, thereby contributing to SDG 10 “Reduced Inequalities”.
By ensuring access to basic services (e.g. moving from slums to formal housing) #ResidentialUtilities also contributes directly to SDG 11 “Sustainable Cities and Communities”.
Primarily related SDG Targets: 1.4.1, 10.2, 10.3, 11.1, 11.6
Investment Rationale and Growth Potential
The world is becoming increasingly urban. Since 2007, more than half the world’s population lives in cities. This share is expected to rise to 60 per cent by 2030. With 10% of the world’s population living on less than $1.90 per day, it will be decades before everyone has access to basic services.
#ResidentialUtilities are often capital intensive and highly regulated. Their development depends on government action. In developed countries with a functioning and broad infrastructure for #ResidentialUtilities, the market focuses primarily on maintenance and technological upgrades. In emerging and developing countries, on the other hand, #ResidentialUtilities are at an earlier stage and new construction projects are the main focus.