Southern Water has successfully secured £825m in sustainable bonds in one of the biggest public market financing issues for the water sector.
Earlier this year the company established an Environmental, social and governance (ESG) framework which demonstrates a set of standards for a company’s operations that socially conscious investors use to screen potential investments.
Southern Water’s relationship with the environment is integral to the business, the company’s Environmental Policy reflects an ambition which includes providing sustainable services that prevent pollution and minimise emissions, supporting sustainable development, and protecting the environment by promoting the sustainable, efficient use and conservation of water, energy and natural resources.
Chief Executive Ian McAulay said CEO Ian McAulay, “We know that the sustainability of water and waste water services are critical to other key organisations and front line services alongside the socio-economic wellbeing of the region. As our economy starts on the road to recovery from COVID-19 our programmes and role in supporting our communities are vital. This funding from investors with a stringent sustainability criteria demonstrates confidence in Southern Water’s fundamental commitment to improving outcomes for our customers and the environment.”
As a business Southern Water is committed to managing the impact of climate change and plastic pollution, as well as responsible environmental management, waste management and integrated water cycle management.
A £2bn proposed programme of work over the next few years includes;
Reactive comm pipe and stop tap replacements - Reducing leakage and water abstraction which reduces the impacts on the environment in a water stressed part of the UK.
Waste water pumping stations - This will protect SWS customers and the environment from internal & external flooding as well as pollution events
Budds Farm – by increasing treatment capacity at the wastewater treatment works the environment will be better protected from pollution events in future.
Brighton East Nitrate removal - protects customer health by working to remove nitrate from the water source in the most affordable and environmentally sustainable way possible.
Thanet Sewers - Scheme to upgrade the sewer network in Margate.
Additional water importation from Portsmouth Water through Gaters Mill (further 23Ml/d) - This ensures that SWS utilises all water available in the SE of England, by sharing available water resources before looking to abstract from new, potentially more environmentally damaging, sources of water.
Business transformation
Over the past 3 years Southern Water has fundamentally transformed the way it operates and redefined its purpose and culture.
Some of the key changes include;
• a stronger governance structure with detailed plans aligned to a risk process
• a comprehensive transformation programme aimed at improving efficiency and delivering the level of service customers expect
• a full company restructure, with a new executive team and a strengthened Board
• new systems to safeguard services and enhancements to whistle blowing procedures
• a revised set of company values and values based ethical business practices
• a modern compliance framework
All these elements support the fundamental change in culture at Southern Water