Commentary Water management

From contamination to innovation: solving the PFAS problem

Katie Woodhouse •

• 10th April 2025

For decades, they’ve been hiding in plain sight - coating your rain jacket, lining your popcorn bag, even woven into dental floss1. PFAS, or per- and polyfluoroalkyl substances, have quietly worked their way into nearly every part of our lives. But the tide is turning.

With growing awareness of the health and environmental risks, the world is waking up to the urgent need for change. And across the globe, companies are stepping up with the tools and technologies to make that change possible.

What are PFAS and why do they matter?

PFAS are a group of over 10,000 synthetic chemicals known for their durability and resistance to heat, water, and oil. First developed in the 1940s, they’ve been used in everything from Teflon pans and firefighting foams to food packaging, electronics, and textiles. Their ability to repel moisture and grease has made them a staple in industrial processes and consumer products.

However, that same resilience is also the problem. PFAS don’t break down easily in the environment or the human body. Once released, they persist for decades, if not longer, earning them the nickname "forever chemicals".

The health risks associated with PFAS exposure are now well documented. Studies have linked exposure to PFAS to cancer, thyroid dysfunction, immune suppression, reproductive harm, and developmental issues in children². Over time, PFAS accumulate in our bodies and ecosystems. Shockingly, 99% of all humans, including foetuses, have detectible levels of PFAS in their blood³.

In Europe alone, there are over 17,000 PFAS “hot-spots”. These could be close to manufacturing sites or military bases where firefighting foam may have been used. PFAS are an everyday concern for the residents in these areas, where they are even unable to eat the vegetables grown in their gardens⁴.

The regulatory response

Governments have begun to respond. In the US, the Environmental Protection Agency (EPA) made history in April 2024, introducing national limits on PFAS in drinking water. This step alone will protect up to 100 million people⁵.

The EPA also designated certain PFAS as hazardous substances under the Superfund law, holding polluters financially accountable for clean-up. Legal cases followed swiftly. Companies like 3M and DuPont are now facing thousands of lawsuits and have agreed to multi-billion-dollar settlements.

However, recent developments have created uncertainty. In early 2025, the Trump administration rescinded several proposed PFAS regulations, including a key EPA rule that would have limited PFAS discharges into waterways. This rollback shifts more of the regulatory burden to individual states and has raised concerns among environmentalists.

In contrast, the EU is proposing a near-total ban on over 10,000 PFAS. The European Chemicals Agency (ECHA) is leading efforts to phase out their use, particularly in food packaging, textiles and industrial applications⁶.

Who’s solving the PFAS problem?

As the pressure mounts, a growing group of companies, held in the WHEB funds, are leading the charge with solutions for detection, treatment, and clean-up.

Veralto focuses on environmental and water quality technologies. Its tools help municipalities and companies monitor PFAS in real time, offering essential information for compliance and safety. Veralto’s partnership with Axine also provides a solution to destroy PFAS through electrochemical oxidation technology⁷. With a strong presence in rapidly growing markets, Veralto offers stable revenue growth and margin expansion.

Agilent equips laboratories to detect PFAS at parts-per-trillion levels, helping customers meet the new regulatory standards⁸. Its advanced scientific instruments are in high demand across defensive sectors such as healthcare and environmental testing, providing resilience across the business cycle from recurring customers.

Arcadis, a global design and engineering firm, specialises in remediation services for contaminated sites. It works with cities, water utilities, and private companies to assess PFAS pollution and implement clean-up strategies like filtration, soil removal, and water treatment⁹. By consulting across a range of sectors, Arcadis can provide environmental impact along with earnings growth opportunities.

A leader in water tech, Xylem offers filtration systems capable of removing PFAS from drinking water. Its technologies are being implemented in municipal water systems around the world to meet stricter quality standards and protect public health¹⁰. Xylem is set to benefit from regulatory tailwinds and the rising demand for clean water solutions.

Whilst PFAS-related revenues are currently a small percentage of total revenues at these businesses, the PFAS testing market is predicted to grow at 14.5% to 2030¹¹, providing an opportunity for meaningful returns.

What’s next?

PFAS are no longer flying under the radar. Regulatory scrutiny is rising, lawsuits are multiplying, and consumers are demanding transparency. Businesses can no longer afford to ignore PFAS.

This challenge can be overcome though, provided it’s met with innovation and accountability. As companies like Veralto, Agilent, Arcadis, and Xylem are showing, science and technology offer a path forward. With the right investment, collaboration, and urgency, the era of forever chemicals can become much more finite.

¹ https://time.com/6281242/pfas-forever-chemicals-home-beauty-body-products/
² https://www.epa.gov/pfas/our-current-understanding-human-health-and-environmental-risks-pfas
³ https://chemsec.org/wrappedinchemicals/facts/pfas-fact-1/
⁴ https://chemsec.org/wrappedinchemicals/facts/pfas-fact-1/
⁵ https://www.epa.gov/pfas/key-epa-actions-address-pfas
⁶ https://www.gleisslutz.com/en/news-events/know-how/pfas-restriction-proposal-eu-level
⁷ https://investors.veralto.com/2024-11-13-Veralto-Invests-in-Axine-Water-Technologies
⁸ https://www.agilent.com/en/solutions/environmental/pfas-testing
⁹ https://www.arcadis.com/campaigns/pfas/index.html
¹⁰ https://www.xylem.com/en-uk/making-waves/water-utilities-news/combatting-pfas-through-proven-water-technologies/
¹¹ https://www.marketsandmarkets.com/Market-Reports/pfas-testing-market-168277170.html

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Foresight Group LLP completed an acquisition of the trade and assets of WHEB Asset Management LLP (WHEB). By way of Novation, Foresight Group LLP now acts as investment manager. Foresight Group LLP uses the trading names WHEB and WHEB Asset Management.

Foresight Group LLP and is authorised and regulated by the Financial Conduct Authority with Firm Reference Number 198020 and has its registered office at The Shard, 32 London Bridge Street, London, SE1 9SG. FundRock Partners Limited (formerly Fund Partners Limited) remains the Authorised Corporate Director of the Funds and is authorised and regulated by the Financial Conduct Authority with Firm Reference Number 469278 and has its registered office at Hamilton Centre, Rodney Way, Chelmsford, England, CM1 3BY.

Important Notices:

Risks include: the price of shares (“Shares”) in FP WHEB Sustainability Impact Fund, WHEB Sustainable Impact Fund or WHEB Environmental Impact Fund may increase or decrease and you may not get back the amount originally invested, for reasons including adverse market and foreign exchange rate movements. Past performance does not predict future returns. The Fund invests in equities and is exposed to price fluctuations in the equity markets, and focuses on investments in mid-sized companies in certain sectors so its performance may not correlate closely with the MSCI World Index (the benchmark). For full risks, please see fund prospectus on www.whebgroup.com

General: This information, its contents and any related communication (altogether, the “Information”) is issued by WHEB Asset Management LLP (“WHEB Asset Management”). It is intended for information purposes only and does not constitute or form part of any offer or invitation to buy or sell any security including any shares in the FP WHEB Sustainability Impact Fund or WHEB Sustainable Impact Fund, including in the United States. It should not be relied upon to make an investment decision in relation to Shares in the FP WHEB Sustainability Impact Fund or WHEB Sustainable Impact Fund or otherwise; any such investment decision should be made only on the basis of the Fund scheme documents and appropriate professional advice. This Information does not constitute advice of any kind, investment research or a research recommendation, is in summary form and is subject to change without notice. The performance shown does not take account of any commissions and costs charged when subscribing to and redeeming shares. WHEB Asset Management has exercised reasonable care in preparing this Information including using reliable sources, however, makes no representation or warranty relating to its accuracy, reliability or completeness or whether any future event may or may not occur. This Information is only made available to recipients who may lawfully receive it in accordance with applicable laws, regulations and rules and binding guidance of regulators. WHEB Asset Management LLP is registered in England and Wales with number OC 341489 and has its registered office at 7 Cavendish Square, London, W1G 0PE. WHEB Asset Management LLP is authorised and regulated by the Financial Conduct Authority with Firm Reference Number 496413.

FP WHEB Sustainability Impact Fund

FundRock Partners Limited (formerly Fund Partners Limited) is the Authorised Corporate Director of the Fund and is authorised and regulated by the Financial Conduct Authority with Firm Reference Number 469278 and has its registered office at 6th Floor Bastion House, 140 London Wall, London, EC2Y 5DN. The state of the origin of the Fund is England and Wales. The Representative in Switzerland is ACOLIN Fund Services AG, Leutschenbachstrasse 50, CH-8050 Zurich, whilst the Paying Agent is NPB Neue Privat Bank AG, Limmatquai 1/am Bellevue, P.O. Box, 8024 Zurich . The relevant documents such as the prospectus, the key investor information document (KIIDs), the Articles of Association as well as the annual and semi-annual reports may be obtained free of charge from the Representative in Switzerland.

WHEB Sustainable Impact Fund

The Manager of the Fund is FundRock Management Company S.A., authorised and regulated by the Luxembourg regulator to act as UCITS management company and has its registered office at 33, rue de Gasperich, L-5826 Hesperange, Grand-Duchy of Luxembourg. The Representative in Switzerland is ACOLIN Fund Services AG, Leutschenbachstrasse 50, CH-8050 Zurich, whilst the Paying Agent is NPB Neue Privat Bank AG, Limmatquai 1/am Bellevue, P.O. Box, 8024 Zurich. The relevant documents such as the prospectus, the key investor information document (KIIDs), the Articles of Association as well as the annual and semi-annual reports may be obtained free of charge from the representative in Switzerland. The state of the origin of the Fund is Ireland. The Fund is registered for distribution to professional investors in Austria, France, Germany, Italy, Luxembourg, Norway, Singapore, Sweden and the United Kingdom, and is registered for offering to retail investors in Switzerland, Denmark and the Netherlands. The Fund is also available for professional investors in Belgium and Hong Kong. It is not available to investors domiciled in the United States.

WHEB Environmental Impact Fund

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