Water has become a key sustainability issue. Water and water management is crucial for worldwide health, economic development, fighting poverty, and global peace. Prompted by its desire to make a contribution to solving social problems, the bank established the SNS REAAL Water Fund in late 2005. The objective of the fund is to promote sustainable development, entrepreneurship and innovation in the area of water management. SNS REAAL Water Fund invests in projects related to water purification, irrigation, sanitary and drinking-water facilities in regions such as Africa, Asia, Eastern Europe and other regions. Small and medium-sized enterprises (SMEs) based in the Netherlands and which focus on sustainable development are also eligible for financial support. The Fund also aims to develop into a centre of expertise concerning sustainable water investments. It promotes the exchange of specialist knowledge between various bodies concerned with water projects, such as governments, non governmental organisations, companies, local banks and of course, water consumers.

The objectives of the Fund are in line with the United Nations eight Millennium Development Goals: specifically the goal of promoting access to safe drinking water and sanitation facilities. Despite considerable growth during 2008, the overall extent of the Fund has remained limited. The aim for 2009 is to expand further by combining investments with micro financing.