Anglian Water funds 850 capital investment projects through Green Bonds since 2017
21 December 2020
Since it announced its first Green Bond in 2017, Anglian Water has funded a staggering 850 capital investment projects through financing from Green Bonds totalling £876 million.
The water company has six Green Bonds now in operation funding schemes including innovative water abstraction projects, drought and flood resilience work and progressive water recycling and water resource management projects - saving more than 161,000 tonnes of CO2e.
Utilising green finance is not new to Anglian. The company became the first European utility company to issue a sterling Green Bond in 2017. Since then, the projects delivered via bonds issued to date have enabled a 62% 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
The sustainability focus at the heart of its business means all Anglian Water’s capital expenditure qualifies for the Green Bond.
Last 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. This 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.
The company has also committed to using six capitals thinking in decision making to keep these responsibilities front of mind, balancing natural capital against social, financial, manufactured, people and intellectual capital to help drive the right outcomes. It has developed a set of metrics to help it understand, track and report on its impact on them
As part of the water industry’s recently pledged Public Interest Commitment, Anglian has committed to a range of ambitious environmental goals, including pledging to reach net zero carbon by 2030. Just last month the water industry became the first sector in the world to launch a ‘Route map to net zero’ outlining plans for how it intends to meet this ambitious target.
Steve Buck, Chief Financial Officer for Anglian Water, said:
“We made history in 2017 when we became the first 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.
“Sustainable finance has never been higher on the corporate agenda. Forward-thinking investors recognise that environmental and social responsibility is no longer an afterthought, but a fundamental part of their decision-making process. They are looking to make investments that enable the right choices to be made to safeguard the planet, while enabling sustainable growth.”
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 this challenge is felt nowhere more keenly than in the East of England. All Anglian’s schemes funded by Green Bond investment directly tackle these challenges.
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 e (T)’ key performance indicator disclosed on pages 15 to 18 of the Green Bond Impact Report.
Click here to read the 2020 Anglian Water Green Bond Impact Report.