Climate Change Data

United Utilities Water Limited

Climate Impact & Sustainability Data (2022-04 to 2023-03, 2023-04 to 2024-03, 2024-2030)

Reporting Period: 2022-04 to 2023-03

Environmental Metrics

Total Carbon Emissions:260,734 tCO2e/year (location-based)
Scope 1 Emissions:132,620 tCO2e/year (market-based)
Scope 2 Emissions:0 tCO2e/year (market-based)
Scope 3 Emissions:476,169 tCO2e/year
Renewable Energy Share:100% (purchased electricity)
Total Energy Consumption:983.9 GWh/year
Carbon Intensity:73.4 tCO2e per £million revenue (gross, market-based)

ESG Focus Areas

  • Climate change
  • River health
  • Affordability
  • Diversity & Inclusion
  • Governance

Environmental Achievements

  • 39% reduction in reported storm overflow activations since 2020
  • Zero serious pollution incidents
  • 4* industry-leading rating in the Environment Agency's Environmental Performance Assessment (EPA) for 2021
  • 100% renewable electricity throughout operations
  • 585ha peatland restored
  • 37ha woodland created

Social Achievements

  • Industry-leading £280 million affordability support package
  • 82% colleague engagement score (higher than UK and Utilities norms)
  • 84,002 customers lifted out of water poverty
  • 4th ranked water and sewerage company in England and Wales for customer satisfaction (C-MeX)

Governance Achievements

  • Improved CDP score to A-
  • Upper quartile performance across a suite of ESG ratings and indices
  • First female CEO appointed
  • Improved position in the Financial Times Inclusive Leaders Index 2023

Climate Goals & Targets

Long-term Goals:
  • Net zero GHG emissions by 2050
  • Reduce leakage by 50% by 2050
  • Eliminate lead pipes by 2070
  • Deliver service using natural capital sustainably
Medium-term Goals:
  • Achieve 50% self-sufficiency in renewable energy by 2030
  • Reduce scope 1 & 2 GHG emissions by 42% by 2030
  • Reduce other scope 3 GHG emissions by 25% by 2030
  • 66% of construction services suppliers by emissions to have science-based targets by 2025
  • 1000ha peatland restoration and 550ha woodland creation by 2030
Short-term Goals:
  • Reduce leakage by 15% by 2025
  • 100% monitoring of storm overflows by end of 2023
  • 200 electric vehicles in next 18 months
  • Deliver all 2025 Better Rivers pledges

Environmental Challenges

  • Rising cost of living impacting customer bills and cash collection
  • Increased public concern regarding storm overflows
  • High absolute level of leakage
  • Severe freeze-thaw event causing burst pipes and supply interruptions
  • High rainfall and combined sewers in the North West posing challenges for reducing storm overflow activations
  • Significant investment needed to meet new environmental targets (Environment Act 2021)
Mitigation Strategies
  • Increased awareness of available affordability support and flexible payment plans
  • Better Rivers: Better North West programme with additional £250 million reinvestment
  • Accelerated investment (£900 million in AMP8 schemes, £200 million in next two years of AMP7) to reduce storm overflow activations
  • Improved monitoring and operation of storm overflows (97% monitored, aiming for 100% by end of 2023)
  • Investment in Dynamic Network Management (DNM) to reduce flooding incidents
  • Plans to develop 150 megawatts of new renewable energy capacity by 2030
  • Strengthening affordability support package for AMP8

Supply Chain Management

Responsible Procurement
  • United Supply Chain (USC) approach
  • Responsible Sourcing Principles
  • Enhanced due diligence audits

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events (storms, heatwaves, floods, freeze-thaw)
  • Water sufficiency
  • Sewer flooding
  • Asset damage
  • Land management issues
Transition Risks
  • Decarbonisation of the UK electricity grid
  • Changes in legislation and standard practice
  • Higher energy costs
  • Changes in social expectations
Opportunities
  • Development of energy-efficient products and processes
  • Increased self-generation of renewable energy
  • Nature-based solutions

Reporting Standards

Frameworks Used: TCFD, TNFD, GRI, SASB, UN SDGs, WEF IBC

Certifications: ISO 9001, ISO 14001, ISO 55001, ISO 45001, ISO 22458, ISO 27001, CarbonReduce, Fair Tax Mark

Third-party Assurance: Achilles Group

UN Sustainable Development Goals

  • Goal 6 (Clean Water and Sanitation)
  • Goal 7 (Affordable and Clean Energy)
  • Goal 8 (Decent Work and Economic Growth)
  • Goal 9 (Industry, Innovation and Infrastructure)
  • Goal 11 (Sustainable Cities and Communities)
  • Goal 12 (Responsible Consumption and Production)
  • Goal 13 (Climate Action)
  • Goal 15 (Life on Land)
  • Goal 17 (Partnerships for the Goals)

Initiatives contribute to these goals through water and wastewater services, renewable energy generation, job creation, infrastructure investment, sustainable land management, emissions reduction, biodiversity protection, and collaborative partnerships.

Awards & Recognition

  • Highly Commended for Diversity & Inclusion Initiative of the Year (2022 Water Industry Awards)
  • Winner of Inclusive Culture Initiative Award (2022 Inclusive Companies Awards)
  • 11th consecutive RoSPA gold standard medal for health and safety

Reporting Period: 2023-04 to 2024-03

Environmental Metrics

Renewable Energy Share:22.4%

ESG Focus Areas

  • Environmental
  • Social
  • Governance

Environmental Achievements

  • Surpassed 2030 target with 1,211 hectares of peatland restoration.
  • Met leakage target for the 18th consecutive year.
  • On track for a 4-star rating in the Environment Agency’s annual Environmental Performance Assessment for 2023.
  • 60% reduction in spills from storm overflows between 2020 and 2030 (on track).

Social Achievements

  • 81% colleague engagement score for 2023/24.
  • Helped over 375,000 customers since 2020 and over 400,000 customers signed up to Priority Services.
  • Lifted over 100,000 customers out of water poverty.
  • Committed to support the ‘10,000 Black Interns’ programme.

Governance Achievements

  • Retained Fair Tax Mark accreditation.
  • Upper quartile performance in selected ESG ratings and indices.
  • Sustainalytics assessment shows negligible risk of material financial impacts from ESG factors.

Climate Goals & Targets

Long-term Goals:
  • Net zero GHG emissions; Install additional water meters to achieve coverage of around 75% of households; Help reduce water demand to 110 litres per person per day; Reduce leakage by 50%; Reduce to an average of no more than ten spills per storm overflow per year; Eliminate lead pipes in customers’ homes.
Medium-term Goals:
  • 50% female executives and their direct reports; Improve 437 storm overflows and reduce spills by 60%; Restore 1,000ha of peatland and create 550ha of woodland; 100% of our fleet to be green.
Short-term Goals:
  • Improve water quality in 1,315km of rivers; 100% of targeted suppliers signed up to United Supply Chain; >220,000 customers registered for Priority Services scheme.

Environmental Challenges

  • Increased instances of flooding and spills from storm overflows due to exceptionally high rainfall in 2023.
Mitigation Strategies
  • Strong operational resilience and hard work of colleagues helped maintain service and minimize environmental impact.
  • Accelerated investment in storm overflow reduction programme.

Supply Chain Management

Responsible Procurement
  • Sustainability performance indicators for suppliers
  • Climate-related criteria in AMP8 delivery partner selection
  • Encourage capital delivery partners to set SBTs

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather (drought, heavy rainfall, freeze-thaw)
  • Flooding
Transition Risks
  • Regulatory changes
  • Market shifts
Opportunities
  • Development of energy-efficient products
  • Renewable energy generation

Reporting Standards

Frameworks Used: ICMA and LMA principles, ISSB standards

Certifications: Fair Tax Mark, ISO22458: 2022

Third-party Assurance: KPMG LLP

Awards & Recognition

  • European Natura 2000 Award 2016
  • CIEEM Awards 2018

Reporting Period: 2024-2030

Environmental Metrics

Total Carbon Emissions:399,099 tCO2e (2024-25 forecast)
Renewable Energy Share:25% of large electricity consumption (generated on-site)

ESG Focus Areas

  • Climate Change

Environmental Achievements

  • Reduced scope 1 and 2 emissions by more than 70% since 2010.
  • Reduced operational emissions by around 43% during AMP8.
  • Avoided and deferred approximately 858,000 tCO2e of operational and embodied emissions during AMP8.

Social Achievements

  • Integrated net zero into consultation, engagement and customer research.
  • Customer research showed strong support for net zero proposals.

Governance Achievements

  • First UK water company to have SBTs approved by SBTi.
  • Published independently assured GHG accounts for many years.
  • Early adopter of TCFD and published long-term transition plans.

Climate Goals & Targets

Long-term Goals:
  • Net zero emissions by 2050 (scopes 1, 2, and 3).
Medium-term Goals:
  • Further reduce GHG emissions to 160,137 tCO2e by 2034-35.
  • Develop substantial new renewable generation capacity by 2030.
Short-term Goals:
  • Reduce operational emissions by 43% during AMP8 (to 227,532 tCO2e by 2029-30).

Environmental Challenges

  • Growth pressures from legal and regulatory requirements (Environment Act).
  • Population growth requiring infrastructure investment.
  • Climate change adaptation needs.
  • Increasing costs and complexity of emission reduction.
  • Improved measurement and reporting of process emissions.
  • Uncertainty in UK's transport market for vehicle electrification.
Mitigation Strategies
  • Innovation and optimization to minimize emissions.
  • Net zero enhancement programme (£196.3 million investment).
  • Collaboration with regulators and supply chain.
  • Nature-based solutions.
  • Improved measurement and monitoring of process emissions.
  • Proposals for transport electrification in net zero enhancement programme.

Supply Chain Management

Responsible Procurement
  • Collaboration with supply chain partners to reduce emissions.
  • Improved data quality with suppliers.

Climate-Related Risks & Opportunities

Physical Risks
  • Droughts
  • Storms
Transition Risks
  • Increasing costs of green energy.
  • Changing policy and regulations.
Opportunities
  • Renewable energy generation.
  • Nature-based solutions.
  • Circular economy initiatives.

Reporting Standards

Frameworks Used: GHG Protocol, PAS 2080, TCFD, SBTi

Third-party Assurance: Suitably qualified third party