Climate Change and Sanitation: A Case for Investing in Intersectional Impact

In a crowded slum in Ghatkopar, Mumbai, families live in cramped, tin-roofed rooms surrounded by narrow, muddy alleys. Their biggest challenge isn’t just the small space or the constant noise—it’s the lack of proper sanitation. People in these slums often have no access to a private toilet. Instead, they rely on a communal facility shared by several households. The toilet is old, often clogged, and poorly maintained, with the stench of untreated waste hanging in the air. For Meena, the mother of three, this situation is a source of constant worry. The unsanitary conditions lead to frequent bouts of illness among her three young children, keeping them out of school and adding to the family’s struggles. The open drains that run through the slum are breeding grounds for mosquitoes and other pests, further endangering their health, especially during the monsoon season when the area floods with contaminated water. 

The lack of adequate sanitation make people like Meena and her family more vulnerable to the impacts of climate change. As extreme weather events, such as heavier rains and more intense heatwaves, become more common, the risks they face increase. Flooding from monsoons exacerbates the spread of waterborne diseases, while the already poor drainage systems struggle to cope, leaving stagnant, polluted water in the streets. These conditions not only threaten the health of residents but also undermine their resilience to climate change, trapping them in a cycle of poverty and vulnerability.  

While the challenges we face today are significant, they also open the door to new opportunities for growth and transformation. By embracing innovation, businesses have the unique chance to lead the way, driving positive change and shaping a more resilient future. 

Small (Sanitation) Enterprises, Big (Climate/Cost) Impact 

Enter Suvidha. Unveiled by Hindustan Unilever Limited (HUL) in Azad Nagar, Ghatkopar—a slum in Mumbai—Suvidha is a first-of-its-kind urban water, hygiene, and sanitation community centre. Designed to address the critical needs of low-income urban households, Suvidha provides essential services such as clean toilets, handwashing facilities, safe drinking water, and state-of-the-art laundry operations, all at an affordable cost. The centre is equipped with a water recycling plant that processes greywater from laundry and washrooms, repurposing it for use in toilets. This innovative approach not only ensures a sustainable water supply but also significantly reduces water waste, a crucial step in conserving this precious resource in a city where millions struggle with irregular water access. 

The environmental benefits of Suvidha are clear. By incorporating water recycling and efficient water management systems, Suvidha reduces the strain on Mumbai’s overburdened water infrastructure and minimizes the carbon footprint associated with water treatment. Beyond the immediate health benefits—such as reducing the incidence of waterborne diseases and improving overall sanitation—the center’s sustainable practices contribute to climate resilience in vulnerable communities. Investing in such climate-smart infrastructure is not just about addressing the sanitation crisis; it’s about creating a model that integrates climate action with public health. Suvidha demonstrates that the path to a sustainable future in rapidly urbanizing areas like Mumbai lies in the intersection of climate-efficient systems and accessible sanitation, showing that these two critical needs can—and must—be addressed together. 

Climate Change and WASH 

Climate change and water, sanitation, and hygiene (WASH) are deeply intertwined, as shifting climate patterns and extreme weather events increasingly jeopardize access to safe drinking water. 90% of all disasters are related to water, and over two billion people live in countries experiencing high water stress. Around four billion people face severe water scarcity for at least a month every year. Approximately 436 million children live in areas of high water vulnerability, where scarcity and inadequate water services expose them to life-threatening conditions. These disasters not only destroy water supplies but also contaminate them, heightening the risk of waterborne diseases like cholera and typhoid, particularly for children who are most susceptible. Furthermore, rising temperatures contribute to the proliferation of deadly pathogens in freshwater sources, transforming vital water supplies into hazardous resources. 

On the other hand, sanitation and wastewater systems, while essential for public health, contribute to greenhouse gas emissions through the breakdown of organic matter and the energy required for treatment processes. The expansion of these systems, particularly in rapidly urbanizing regions, poses a complex challenge for climate action. Effective climate strategies must, therefore, integrate WASH considerations, ensuring that access to safe water and sanitation is maintained while minimizing the environmental footprint of these critical services. 

The Economic and Social Benefits of Directing Climate Capital into WASH 

Investing in the sanitation sector is crucial for mitigating climate change, given its significant contribution to global greenhouse gas (GHG) emissions. The sanitation sector is responsible for an estimated 2-6 % of global methane emissions, and 1-3% of nitrous oxide emissions. 

Capturing value from waste is known to not only enhance the overall ecosystem but also reduce emissions. For instance, pit latrines used in informal urban settlements emit approximately 112 megatonnes of CO2-equivalents, representing 0.32% of global emissions. Urine-diverting toilets with off-site composting offer a more sustainable alternative, potentially reducing GHG emissions by about 126 kg of CO2 equivalent per capita annually. If implemented globally, this could mitigate up to 336 megatonnes of CO2 equivalents per year, or 13-44% of the sanitation sector’s methane emissions. The benefits extend beyond emission reductions, including improved soil health, safer sanitation, decreased diarrheal diseases, and job creation.  

Capital invested in sanitation is not only a critical strategy for combating climate change but also a powerful driver of economic growth, particularly in low-income countries. For instance, poor WASH conditions resulted in economic losses of $3.3 billion for Indonesia and $1 billion for the Philippines in 2008 alone. Inadequate sanitation costed India considerable economic losses, equivalent to 6.4% of India’s GDP (in 2006) at US$53.8 billion.  

Investing in sanitation and water, sanitation, and hygiene (WASH) can yield significant returns for individuals and companies, and not just for national development. For example, the Suvidha Centre enhances economic productivity by saving users an average of 25 minutes daily, translating to 150 person-hours saved annually per individual. This time saving, especially for women, reduces time poverty and healthcare expenses, leading to a significant return of INR 15.15 for every rupee invested in the center. Suvidha centres also employ over 150 individuals, contributing to the economy via job creation.  

Way Forward 

Investing in the intersection of climate and sanitation, as demonstrated by the Suvidha Centres, leads to substantial positive outcomes. The centers have achieved a 50% reduction in illnesses such as gastrointestinal and urinary tract infections, with healthcare costs dropping by approximately INR 500 for each ailment averted.  

Additionally, a 27% decrease in water-borne and vector-borne diseases has been reported, with over 90% of users attributing this improvement to healthier practices, including better post-defecation and food-handling hygiene. The availability of safe, purified drinking water at Suvidha Centres during water shortages builds community resilience against climate change impacts, while solar panels on the rooftops contribute to a more than 50% reduction in monthly electricity bills. These statistics underscore that integrating climate-smart infrastructure with sanitation not only improves public health and economic productivity but also strengthens the community’s ability to withstand the growing challenges of climate change. 

Are you interested in high-impact investment? Join our regional 2024 Investor Forums to connect with a dynamic lineup of entrepreneurs from the Toilet Board Coalition Accelerator – matching progressive investors with promising innovation. Register your interest here.

Author: Malavika Ravi, Accelerator & Investment Manager Email: ravi@toiletboard.org

References 

 

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CDP. (2023, March). Riding the Wave:How the private sector is seizing opportunities to accelerate progress on water security. https://cdn.cdp.net/cdp-production/cms/reports/documents/000/006/925/original/CDP_Water_Global_Report_2022_Web.pdf 

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Deloitte. (2023). Suvidha centres: Impact Assessment. HUL Unilever. https://www.hul.co.in/files/92ui5egz/production/431ebe1772ad4e73a5799d90bacfd62ce06cffd1.pdf 

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GIZ, & Resilient Cities Network. (2021, June). Climate Resilient Urban Sanitation. Sustainable Sanitation Alliance. https://www.susana.org/_resources/documents/default/3-4343-7-1624432507.pdf 

Inadequate sanitation costs India equivalent of 6.4% of GDP. (2011, January 13). World Bank. https://urls.fr/EE0Eky

Water and the global climate crisis: 10 things you should know. (n.d.). UNICEF. https://www.unicef.org/stories/water-and-climate-change-10-things-you-should-know 

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