In 2009/10, United Utilities was recognised as Business in the Community’s Company of the Year, having achieved the highest platinum plus ranking in that organisation’s Corporate Responsibility (CR) Index. In addition, the group led the water sector in the Dow Jones Sustainability Index.
Achieving this recognition is a result of the company including CR factors as a strategic consideration in its decision-making over the last 10 years, recognising the importance of building trust and reputation with all its stakeholders.
The group’s CR policy sets out its commitment to environmental, social and economic improvements. This is communicated in a way that enables all employees to recognise how their roles and responsibilities contribute to maintaining and improving sustainability performance.
The group uses the Dow Jones Sustainability Index as a measurement tool to ensure a deeper and more strategic response to its most significant and material social, economic and environmental issues. It helps to embed the principles of sustainability and CR into corporate strategy and everyday business practice.
Natural resource protection and environmental enhancement
The group is committed to protecting and enhancing natural habitats and biodiversity as part of the way it manages operational sites and landholdings. The group is extending its flagship Sustainable Catchment Management Programme (SCaMP), building on recognised successes over the last five years. Integral to this is the ongoing partnership with the Royal Society for the Protection of Birds, reflecting the importance the group attaches to developing relationships with key organisations. The group continues to play an active role in the North West Biodiversity Forum and has signed up to the United Nations International Year of Biodiversity network in the UK.
Sustainable consumption and production
Last year, the group set a new waste target, demonstrating its commitment to help ensure a sustainable future for the North West by diverting more than 95 per cent of its waste from landfill by 2015. This target will help offset additional costs from increases in landfill tax. The group is planning a pilot project to produce a nutrient-rich compost by combining household green waste with wastewater treatment process waste that would normally go to landfill.
Climate change and energy
This year, the group updated its carbon strategy to take account of its 2010-15 five-year investment programme and to bring its targets and aspirations into line with revised carbon accounting rules. A major part of its carbon strategy is generating renewable energy from sludge and other sources. Last year the group generated over 107 GWh.
Current best available technology means the water quality investment programme will often be energy intensive, increasing the group’s overall carbon footprint. The company has secured Ofwat’s approval to invest £15 million in a mitigation programme to reverse that increase.
The group is looking at further environmental benefits from using biogas, extracted from wastewater sludge. The gas is currently used in combined heat and power engines but the group is now building a plant to clean the biogas to a standard that can be used in vehicles or, potentially, put into the gas grid. This will be the first such plant at a UK wastewater treatment works.
Community engagement
Last year the group invested approximately £2.3 million in the communities in which it operates, including cash, time and in- kind contributions. It continued to support employees involved in community activity by linking volunteering activity to personal development and supporting them through community grants and matched funding. This investment includes a number of community partnerships such as United Futures, a partnership with Groundwork to deliver bespoke community projects that support core business objectives. The group has also continued its support of WaterAid by promoting the charity to its customers and organising staff-led fundraising events.
For many years, United Utilities has provided education services to schools on subjects ranging from the water cycle to climate change. In light of the 2009 price review, the group took the difficult decision to end classroom-based education services from April 2010. The business will continue to promote specific campaigns such as reservoir safety and education materials will be available on its website.
Customer service
The group is committed to improving its service to its customers and meeting their needs. The group recognises that in the current economic climate some customers may be experiencing financial difficulty and struggling to pay their water bills. The group is currently trialling a support tariff in specific areas to help those customers who are typically in debt with their water charges. Ofwat has approved a two-year trial, which consists of new pricing bands based upon an independent assessment of customers’ ability to pay.
United Utilities offers a wide range of payment options to help customers. One of the easiest ways to pay is by Direct Debit and last year nearly 40,000 Direct Debit mandates were set up. The group also offers a facility for customers to pay bills online; in the last year over 200,000 online payments were made.
Developing talent
The company regards its workforce as a key asset and invests in each employee by identifying future skills and knowledge requirements, matching need with opportunity. The group measures and targets the extent to which training contributes to business success and looks for opportunities to retrain and redeploy employees when skill and knowledge requirements change. In addition, the company has 142 apprentices following accredited training frameworks in the business.
Given the importance the group places on CR, a dedicated report has been produced online at unitedutilities.com/crreport2009
