At United Utilities, corporate responsibility (CR) is how the group assesses, manages and measures its economic, environmental and social impact and this embraces all aspects of its performance. Taking a balanced approach between medium and longer-term benefits in pursuing CR means that in the current difficult economic circumstances, the group will continue to have regard to ensuring its services are meeting the needs of its customers, including addressing the issues of affordability, and to contributing to the communities it serves. For instance, to help vulnerable customers, the group’s contribution to the United Utilities Trust Fund will increase by 67 per cent to £5 million per year from 2009.
The group assesses its CR impact in the following key areas: conserving natural resources; protecting and enhancing the environment; supporting communities; and maintaining economic growth. Particular focus is on climate change and skills development in engineering, science and technology as both have the greatest impact on the group’s ability to operate now and in the future. The group’s community investment committee and CR panel continue to provide strategic governance and challenge to this approach.
Given the importance the group places on CR, a dedicated report has been produced online at unitedutilities.com/crreport2009
The environment
The group continues to deliver the plans it set out in 2007 for tackling climate change. Activities have focused on the carbon reduction potential associated with expanding renewable energy generation using sewage gas as a source of energy. In 2008/09 100 GWh of renewable energy was generated, the equivalent of 53,788 tonnes of carbon dioxide.
The UK Government’s forthcoming Carbon Reduction Commitment will present a significant challenge to the water industry to deliver carbon reductions against an increasing requirement to improve water and wastewater quality. To drive further reductions, the group is continuing to research and invest in more efficient treatment processes and additional renewable energy resources. In recognition of its efforts, United Utilities was awarded the Carbon Trust standard.
Sustainable management of water resources is vital in protecting the environment and ensuring reliable supplies of drinking water. In January the group launched its draft 25-year Water Resources Management Plan and continues to reduce the amount of water needed to be taken from the environment through programmes on leakage, water efficiency and metering. Customers are encouraged to take part in reducing demand. For example, installing a meter typically reduces household water consumption by 10 per cent. Last year 58,240 meters were installed under UUW’s free meter scheme.
2009 is the final year of a £10 million programme to improve the condition of the Peak District and Trough of Bowland estates. Nearly a third of the land is designated Sites of Special Scientific Interest, with over 96 per cent now rated as ‘favourable’ or ‘favourable recovery’, ahead of national targets. The scheme is bringing considerable benefits to wildlife habitats, as well as improvements to raw water quality.
The group has improved its management of waste, working with partners to ensure compliance with the Site Waste Management Plan regulations that came into force in April 2008. Innovative ways to manage waste, using recycled products, including aggregate and transformer oil, continue to reduce the amount sent to landfill.
A new method of charging for surface and highway drainage services on a site area basis, rather than rateable value, for metered non-household customers was introduced. This method, preferred by Ofwat, spreads the cost of providing this service more fairly across the whole customer base and is designed to encourage more environmental ways of dealing with surface water, for instance by installing ‘soakaways’. However, even with a phased introduction, some customer groups have experienced significant increases in their charges. The group has therefore imposed a moratorium for faith buildings, scout and guide associations and community amateur sports clubs pending review of this charging approach, and community partner Groundwork is helping to promote actions that organisations can take to reduce bills.
Community
The group’s education programme supports the focus on climate change and engineering skills, and promotes water and energy efficiency in schools. Since September 2008, 50 schools have signed up to the programme, which aims to have a measurable impact on how they tackle climate change issues.
2009 brings the final year of the group’s 25-year partnership with the Mersey Basin Campaign. This has seen improvement in water quality across the region; an example which is now being replicated in Europe.
Partnerships with Hope through Action, Youth Sport Trust and a further commitment to WaterAid have evolved as a result of the Executive Leadership Team’s Changing Lives Challenge. Around £660,000 was raised by employees, suppliers and partners in support of a team challenge that helped to improve sanitation
in Zambia in collaboration with WaterAid.
Last year the group invested around £3 million in the communities in which it operates, including cash, time and in-kind contributions. It increased support to employees involved in community activity by linking volunteering activity to personal development and supporting them through community grants and matched funding.
Detail on the group’s corporate responsibility performance is available at unitedutilities.com/crreport2009
