11 July 2024
Anchored by Purpose: Building a resilient future
Our purpose is to bring environmental and social prosperity to the region we serve through our commitment to Love Every Drop. This kept us striving for the greatest outcomes during a challenging year defined by sector instability, operational challenges driven by climate change and a continued cost-of-living crisis. Our Annual Integrated Report provides an update on our performance throughout the financial year 2023/24.
2023/24 was a year of strong financial performance, underlined by support from our shareholders, who have agreed £350 million of additional investment - including £100 million to accelerate our work on reducing spills and pollutions. The year also saw our highest-ever annual investment in our capital programme, with over £960 million invested in schemes to build resilience and support environmental improvements. With next year marking the last year of AMP7 (2020-2025) we are in a strong financial position, with all funding in place to complete our plans to 2025.
Reports
23 May 2024
Board Succession Announcement: Mark Thurston to be appointed as Anglian Water Chief Executive
The Board of Directors (Board) of Anglian Water is pleased to announce the appointment of Mark Thurston as Group Chief Executive Officer Designate. Mark will join the business on 1 July 2024 and will be appointed to the board of both Anglian Water and Anglian Water Group Limited on 5 August at which point he will succeed Peter Simpson as Group Chief Executive Officer. Mark is a highly experienced leader who, over more than 30 years, has held leadership roles for major infrastructure projects including the Olympics, Crossrail and most recently, High Speed Two (HS2), as well as playing a key role in the growth of engineering business CH2M. He was the longest serving CEO of HS2, the biggest infrastructure project in Europe. During his tenure he oversaw the development of an organisation and joint venture partnership model with the largest supply chain of any infrastructure project in the UK. With deep experience in both public and private sectors, Mark has a strong track record on projects requiring complex stakeholder engagement including high-profile regulatory and governmental interface. Having started his career as a technician apprentice on the London Underground, Mark became a chartered engineer, honorary fellow of the Association for Project Management, and fellow of the Institution of Civil Engineers. As announced in October 2023, Peter Simpson will retire from the Board in August 2024, and will remain with the business as a Strategic Advisor to support a smooth leadership transition before taking retirement. Ros Rivaz, Chair of Anglian Water Group, commented: “On behalf of the Board, I am delighted that Mark Thurston will be joining Anglian Water as CEO. He has substantial experience across major infrastructure with a focus on health and safety, and is expertly placed to lead Anglian Water as we deliver our biggest ever business plan. His diverse experience in the challenges of providing infrastructure while protecting and enhancing the natural environment fits squarely with Anglian Water’s long-term ambitions. Mark’s stand-out track record in leadership and his major projects expertise will be a huge asset for Anglian Water, creating value for all our stakeholders, through this crucial next phase. "It has been a tremendous honour working with Peter, who has worked with our long-term shareholders to deliver more than £5 billion of investment in his 10 years as CEO. Most recently, together with the Board, Peter has worked to refresh his leadership team with top talent to facilitate his succession.” Mark Thurston commented: "It is a privilege to join Anglian Water at this crucial point when the business will be delivering some of the biggest infrastructure enhancements in the UK water industry. As well as providing vital services for millions of customers, Anglian Water has an outstanding culture, strong values and a clear purpose, which I am really excited to be part of. My focus will be on making sure the business is set up for success for the long term and I look forward to engaging with customers, colleagues, regional stakeholders, government, regulators and our shareholders to deliver on our objectives.” No other information is required to be disclosed pursuant to Listing Rule 9.6.13R in relation to Mark Thurston’s appointment as the Group's Chief Executive Officer. Remuneration details will be included in Annual Integrated Report.
15 February 2024
Sustainable Finance Framework 2024
The Anglian Water Sustainability Finance Framework supports the financing of water and water recycling projects that demonstrate our environmentally sustainable management of natural resources and land use, as well as adapting to climate change.
In our previous Framework, launched in 2020, the eligible categories reflected our business plan outcomes for the Asset Management Period, 2020-2025, also known as AMP7. For this Framework update, we have introduced a new set of ambitious and bespoke KPIs to align our Sustainable Finance Programme with our long-term ambitions.
We constantly challenge ourselves and our supply chain partners to find new and better ways to deliver our service to customers. Over the years we have invested in schemes to build resilience to flood and drought, enabled sustainable economic and housing growth, improved the ecological quality of catchments, and are working towards becoming a carbon neutral business.
However, delivering on our purpose is becoming increasingly challenging. We are managing water resources in a region that is water scarce, vulnerable and already feeling the impacts of climate change, has many precious environmental sites to protect, a fast-growing population and a sizeable agricultural economy that relies on water to feed the nation. As we head into the near and long-term future, our sector faces unparalleled demand for investment.
Our Business Plan (2025-2030) was submitted to Ofwat in 2023, and outlines our bold ambitions as we face into these challenges. As well as continuing to invest in our customers’ number one priority - safe, clean water, now and in the future - our plan places a large emphasis on protecting and enhancing the environment to deliver broader benefits for nature and communities within the region we serve.
The framework aligns with the ICMA Green Bond Principles 2021 including the updated appendix I of June 2022, the Social Bond Principles June 2023, the Sustainability Bond Guidelines 2021, as published by the International Capital Market Association (“ICMA”) and Loan Market Association’s (“LMA”) Green and Social Loan Principles 2023.
10 October 2022
Public consultation on proposed location for a new reservoir in Lincolnshire begins 12 October
Anglian Water is launching the first phase of public consultation on a proposed new reservoir in Lincolnshire on Wednesday 12 October.
The proposed location for the reservoir confirmed by Anglian last month is an area south-east of Sleaford, about halfway between Grantham and Boston.
The reservoir will supply enough water for around half a million homes, as well as protecting the environment by enabling Anglian to reduce the amount of water taken from rivers and underground aquifers elsewhere in the region. It will also create a new visitor destination, creating new jobs, and wider economic, environmental, leisure and health benefits for the local community.
The project forms part of Anglian’s long term Water Resources Management Plan, and is linked to the wider regional plan led by Water Resources East. These plans look 25 years ahead, with the objective of ensuring the region is resilient to more frequent episodes of drought brought on by climate change, all while improving environmental protection.
Dr Geoff Darch, Water Resources Strategy Manager for Anglian Water said: “This project will build on decades of existing investment in resilient infrastructure – like a 400km strategic pipeline which will move water from the north to the south and east of the region, existing networks of reservoirs and water storage, as well as continuing to help customers to reduce demand and driving down leakage to world leading low levels. But we know, that to keep taps running in the future, we’ll need more water storage in our region, in the form of new reservoirs.”
The plan for new reservoirs has been developing over the last 10 years, with the water company now ready to share the findings of a detailed site selection study in the autumn, in what will be the first of a multi-phase consultation on the proposals.
Geoff added: “This week (12 October) a formal public consultation process will begin giving communities and wider stakeholders the opportunity to have their say and to help shape the development of the design of the reservoir and inform the economic, social, and environmental opportunities it could create for the local area.
“We know the effect on those impacted by our proposals including homeowners, landowners and the nearby community because we’ve already been speaking to those most directly affected, to give them the opportunity to ask us any questions about what this might mean for them.
“We are committed to working with everyone as the project develops and want to hear all views on our emerging proposals. Our proposals go beyond just building a new reservoir, we will create new habitats for wildlife and places for people and create great natural places to explore, and exciting new leisure facilities for people to enjoy. The reservoir will help secure water supplies for future generations, in Lincolnshire and across the wider Anglian region, so we can address the challenges of a changing climate, environmental protection and population growth.
Together with a panel of expert partners, Anglian Water has been undertaking a wide range of assessments to identify potential locations for the reservoir. That includes considering impacts on people and communities, the needs of the environment, landscape, existing water sources, engineering requirements, flood protection and many other factors. The work has also considered what opportunities the reservoir could create for local communities and the wider region.
The initial consultation will run from 12 October until the 21 December. As part of this consultation Anglian has provided a very early concept design for the reservoir to help stimulate thought and discussion. It shows some of the potential features they hope to include in the reservoir like wildlife areas, recreation and water sports, green infrastructure like cycleways and renewable energy, and others. This will be developed further as the project progresses taking account of everyone’s feedback.
Further information on the reservoirs and how to get involved can be found at: www.lincsreservoir.co.uk
10 October 2022
Anglian Water confirms proposed location for a new reservoir in Cambridgeshire
First phase of public consultation begins on 12 October.
Anglian Water has confirmed today the proposed location for a new reservoir in the Cambridgeshire Fens situated north of Chatteris near the villages of Doddington and Wimblington.
The reservoir will supply enough water for around a quarter of a million homes, as well as protecting the environment by enabling a reduction in the amount of water taken from rivers and underground aquifers elsewhere in the region. It will also create a new visitor destination, creating new jobs, and wider economic, environmental, leisure and health benefits for the local community.
The reservoir is being developed in partnership with Cambridge Water and a formal public consultation period will begin on Wednesday (12 October).
The announcement comes after one of the driest summers on record, comparable to 1976. This saw many water companies implementing hosepipe bans to conserve water supplies. Anglian Water was able to avoid implementing a hosepipe ban for its customers because of the significant investment it has put into reducing leakage, increasing metering and adding resilience to the water supply system over many decades, despite operating in a region that is the driest in the country, and one of the fastest growing.
The project forms part of both Anglian’s and Cambridge Water’s long term Water Resources Management Plans and is linked to the wider regional plans led by Water Resources East. These plans look 25 years ahead, with the objective of ensuring the region is resilient to more frequent episodes of drought brought on by climate change, all while improving environmental protection.
Dr Geoff Darch, Water Resources Strategy Manager for Anglian Water said: “This project will build on decades of existing investment in resilient infrastructure – like a 400km strategic pipeline which will move water from the north to the south and east of the region, existing networks of reservoirs and water storage, as well as continuing to help customers to reduce demand and driving down leakage to world leading low levels. But we know, that to keep taps running in the future, we’ll need more water storage in our region, in the form of new reservoirs.”
After detailed work between Anglian Water working in partnership with Cambridge Water, the findings of a detailed site selection study will be shared as part of the consultation beginning next week.
Geoff added: “Following a thorough and multi-stage site selection process, assessing a wide range of criteria, we have now identified the best performing location for a new reservoir.
“We know the effect on those impacted by our proposals including homeowners, landowners and the nearby community because we’ve already been speaking to those most directly affected. We wanted to give them the opportunity to ask us any questions about what this might mean for them, before publicising the information more widely. We are committed to working with everyone as the project develops and want to hear all views on our emerging proposals.
“The new reservoir will store more water so it’s always on tap when we need it, meeting the challenges of a changing climate and a growing population. It will mean less water is taken from sensitive sources, such as chalk streams, helping us to protect and restore the environment.
“Our vision for the project goes beyond just building a reservoir. We want to create a place where water, people and nature come together. That means creating space for wildlife, such as wetlands, alongside enabling new recreational and educational activities and natural places for people to explore. It also means creating new jobs and providing opportunities for local businesses and tourism.
“A formal consultation process will begin on 12 October, open for 10 weeks, and we encourage communities and wider stakeholders to have their say and to help shape the development of the design of the reservoir and inform the economic, social, and environmental opportunities it could create for the local area.”
Together with a panel of expert partners, the two water companies have been undertaking a wide range of assessments to identify potential locations for the reservoir. That includes considering impacts on people and communities, the needs of the environment, landscape, existing water sources, engineering requirements, flood protection and many other factors.
The initial consultation will run from 12 October until the 21 December. As part of this consultation a very early concept design for the reservoir has been provided to help stimulate thought and discussion. It shows some of the potential features they hope to include in the reservoir like wildlife areas, recreation and water sports, green infrastructure like cycleways and renewable energy, and others. This will be developed further as the project progresses taking account of feedback from the consultation.
Further information on the reservoirs and how to get involved can be found at www.fensreservoir.co.uk.
30 August 2022
Anglian Water goes green in Canada
Anglian Water issues £225m green bond to fund UK's biggest ever drought resilience project.
Anglian Water has become the first UK company to issue a corporate green bond in the Canadian ‘maple’ bond market. It’s another first in financial history for the water company and its sustainable finance leadership.
The C$350 million bond raised will specifically fund Anglian Water’s Strategic Pipeline Alliance (SPA) which is delivering a brand new network of hundreds of kilometres of large-scale interconnecting pipelines to move water to drier areas of our region, alongside other future resilience projects identified by Anglian Water. SPA is the biggest infrastructure programme in Anglian Water’s history and one of the largest infrastructure projects in the UK. On completion, the outcome will be improved the climate resilience for water supplies across the Anglian region.
Crucially, flexibility in moving water more freely around the region helps improve resilience to droughts and enables the company to reduce abstraction from the environment in water-stressed areas. Reducing abstraction is one of the most important contributions to protecting the environment.
This year’s driest July on record since the 1911 and the driest summer since 1976 highlights the importance of such schemes that ensure resilience to drought for future generations and support customers and businesses, including critical industries such as food production.
Anglian Water’s Group Treasurer, Jane Pilcher, said: “The impacts of climate change are acutely impacting the water industry in the UK, and the world over. Ours is the driest region in the UK and particularly vulnerable to climate change. Therefore reducing our carbon emissions and adapting to the climate emergency is embedded in everything we do. Spend on resilience to climate change and environmental protection is vitally important. This focus is why 100 per cent of our debt raised in 2021/22 was sustainable finance.”
Anglian Water’s capital investment is financed by sustainable debt finance as well as through shareholders, supported by stable regulatory environmental. Jane added: “By holding ourself accountable to the green bond principles we are delivering enhanced environmental and social benefits.
“The Maple bond market is a stable and growing sustainable finance market, so for us it’s presented an opportunity to continue our sustainable financing strategy.”
Anglian recently published its 2022 Sustainable Finance Impact Report consolidating its financial and sustainability performance in one place as part of its Environmental and Social Governance (ESG) commitments – closely linked with its Purpose – recognising that long-term sustainable performance relies on an understanding of the interdependency between financial, social and environmental factors. The report goes beyond just reporting carbon emission reductions and showcases SPA as well as Anglian’s WINEP Environmental Programme to give investors clarity on how their investment is helping bring social and environmental prosperity to the Anglian Water region.
In 2017, Anglian issued the first ever public utility sector Sterling (GBP) Green Bond and last year, it took assurance standards to a new level by becoming the first water company in the world to issue a sustainability-linked bond tied to net zero commitments. This is the eleventh green bond issued by Anglian Water.
In 2021/22 all its debt investment was derived through sustainable finance, enabling the company to save more than 180,000 tonnes of carbon through Green Bond-funded projects, which also improved resilience to climate change, water quality at source, and biodiversity.