ESG Reporting

ESG (Environmental, Social, and Governance) is critically important to Anglian Water Group for several reasons:

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1. Environmental Responsibility

Anglian Water operates in the East of England, one of the driest regions in the UK, making environmental stewardship essential for its business. Climate change and water scarcity are significant challenges for us. By prioritising environmental sustainability within our ESG framework, Anglian Water can:

• Protect water resources through efficient water management, conservation, and infrastructure investments.
• Reduce carbon emissions by transitioning to renewable energy, optimising operational efficiency, and innovating within water treatment processes.
• Adapt to climate change by improving flood resilience and preparing for extreme weather events that can impact water supply and wastewater treatment.

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2. Social Impact

As a utility company, Anglian Water provides essential services to millions of customers and our social responsibility initiatives reflect the need to ensure:

• Access to clean water and sanitation, which is a human right.
• Customer affordability, ensuring that even the most vulnerable communities can afford basic water services.
• Community support, particularly in the form of educational programs, community engagement, and charitable initiatives.

By focusing on the social aspects of ESG, we can foster positive relationships with customers and communities, while ensuring fair service delivery.

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3. Governance Practices

Good governance is at the heart of our approach to long-term sustainability. By integrating strong governance structures, we ensure:

• Transparent decision-making, ensuring that all stakeholders, including shareholders, regulators, and customers, have confidence in the company's operations.
• Compliance with regulations, including environmental and safety standards.
• Accountability for delivering on ESG commitments through measurable goals, like reducing emissions or improving water efficiency.

Strong governance also positions us as an ethical leader in the utility sector, enhancing our reputation and long-term financial performance.

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4. Meeting Regulatory and Investor Expectations

The UK's water industry is regulated by bodies like Ofwat, which expects water companies to meet strict ESG-related criteria. Investors and stakeholders are increasingly concerned with sustainable practices, and integrating ESG into Anglian Water's strategy helps us:

• Attract investment from ESG-focused funds and socially responsible investors.
• Comply with regulatory frameworks, which often include performance measures tied to sustainability goals.
• Mitigate financial risks associated with climate change, regulatory fines, or customer dissatisfaction.

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5. Innovation and Long-Term Value Creation

ESG drives innovation in water management technologies, sustainable infrastructure, and customer engagement. By prioritising ESG, Anglian Water ensures it remains competitive and relevant in a rapidly changing world, securing our long-term value.

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Summary

For us, ESG is not just a set of values; it’s a strategic necessity. It ensures operational resilience, regulatory compliance, investor appeal, and community trust, all while positioning the organisation as a leader in sustainable water management.