Anglian Water funds 850 capital investment projects through Green Bonds
05 December 2019
Since it announced its first Green Bond in 2017, Anglian Water has funded a staggering 850 capital investment projects through financing from Green Bonds totaling £811 million.
The water company is leading the way in green financing with five Green Bonds now in operation and a sixth ready to draw down in 2020. Anglian became the first European utility company to issue a sterling Green Bond in 2017. The investments made through the Green Bonds issued to date are expected to save or avoid 160,736 tonnes of carbon – a 61% reduction from the company’s 2010 capital carbon baseline.
Projects funded by the Green Bonds must contribute to five environmental objectives:
Climate change mitigation
Climate change adaptation
Natural resource conservation
Pollution prevention and control
Uniquely for a utility company, the sustainability focus at the heart of its business means all Anglian Water’s capital expenditure qualifies for the Green Bond.
Aware of its wider environmental and social responsibility, and of the major role the company plays in the regional and UK economy, Anglian Water has committed to a range of ambitious environmental goals, including pledging to reach net zero carbon by 2030. This goal is just one part of the water industry’s recently pledged Public Interest Commitment.
Earlier this year, Anglian became the first water company to change its Articles of Association to enshrine its long-term commitment to deliver wider public interest outcomes for society and the environment by altering the core documents that govern the overall management of the business. Embedding public interest objectives in this way means the company’s Board must take account of the wider impact Anglian Water has on customers, communities and the environment, as well as delivering a fair return for shareholders.
Steve Buck, Chief Financial Officer for Anglian Water, said, “We made history in 2017 when we became the first ever public utility to launch a Sterling Green Bond, and we are very proud that all our capital activity meets the strict environmental criteria set for Green Bond investment. Sustainability is simply how we do business, all day, every day.”
Long-term access to secure water supplies is one of the most pressing global challenges today. Operating in one of the driest, yet fastest growing regions of the UK, means that the water company selects some of its largest, and stand out schemes to be funded by Green Bond investment all of which directly tackle these challenges. These have included: innovative water abstraction technology, drought and flood resilience schemes, and progressive water recycling and water resource management projects.
The Anglian Water Green Bond Framework has been reviewed by DNV GL which has issued a Second Party Opinion. DNV GL were also engaged to perform limited assurance in accordance with ISAE 3000 (revised) standard on ‘Reduction in CO2 (eT)’ key performance indicator disclosed on pages 15, 16 and 17 of the Green Bond Impact Report.
Click here to read the 2019 Anglian Water Green Bond Impact Report.
Anglian Water’s Prelim results for the first half of 2019 including a commentary from CEO Peter Simpson can be found here.