Severn Trent has committed to put environment, community and transparency at the heart of its business with a social purpose report.
The company said it would encourage staff to spend two business days volunteering locally each year and donate one per cent of profits to community projects.
Liv Garfield, chief executive of ST, said: “Our customers rightly expect us to be a company they can trust. Providing a safe, reliable and affordable service is vital, but for many this isn’t enough. They want to know that we do the right things for the right reasons. We hope this consultation will help us achieve this.”
The company committed to achieving carbon neutrality by 2030 and only using renewable energy. As part of this pledge it will switch its vehicle fleet to electric vehicles wherever possible.
By 2025 it will improve up to 2,100 kilometres of rivers and as part of an industry-wide pledge, will plant 1.3 million trees across its region.
To support customers and communities ST will offer social tariffs for vulnerable customers; run water-themed classes in primary schools across its region; encourage staff to volunteer for two working days each year; and support WaterAid, as well as giving one per cent of profit to local charitable groups.
It committed to be honest and fair with stakeholders; to pay its fair share of tax; to be open and accountable; and to take a long-term approach to business decisions.
The report builds on ST’s amendment to its constitution announced last month and reflects a shift across the sector to make social purpose central to business, as supported by Ofwat.
The company’s business plan, which was fast-tracked by Ofwat, includes 37 Outcome Delivery Incentives (ODIs) seeking to align its investor and company interests behind those of its customers and wider society.
“Since privatisation, some water companies have lost sight of that mission which they all share and see themselves as but another variant of business whose primary purpose is profit maximisation. That was wrong on two counts,” the report said.
“For water companies their purpose is particularly precious: their ongoing success is crucial to our capacity to live and to live well. They must curate the entire water ecosystem – from the rivers and reservoirs through to its distribution and then disposal.”
ST has invited stakeholders to give feedback on its report before it publishes a final view in Spring 2020.