Our thinking

Time to get on board with environmental responsibility

6 December, 2024

Recently, several MPs have called for environmental experts to be included on water company boards, and we find it hard to see the controversy in this. For most industries, having a board member who prioritises environmental accountability is beneficial. But in sectors like water, where decisions have a direct and profound impact on ecosystems and communities, and where getting wrong can cost the company a considerable amount of money, it should be essential. 

Water companies in England have come under scrutiny for their handling of untreated sewage. In 2022, water companies dumped raw sewage into rivers and coastal areas over 300,000 times, totalling more than 1.7 million hours of discharge. This has caused frustration and anger from the public, who expect these companies to safeguard water quality and the environment. The issue is compounded by poor performance in preventing serious pollution incidents, which increased to 47 last year, with over 90% of these attributed to just four firms: Anglian Water, Southern Water, Thames Water, and Yorkshire Water.

The stark contrast in performance across the water industry is telling. Notably, Severn Trent has maintained a four-star rating (the highest) from the EPA five consecutive years and reported zero serious pollution incidents last year, and it is notable that over one-third of Severn Trent’s board members have corporate sustainability expertise, setting it apart in governance terms from its peers.

While governance alone doesn’t guarantee high performance, the connection between board-level expertise and outcomes is evident. Having a dedicated voice for environmental concerns at the decision-making level ensures issues like sewage spills are treated with the seriousness they deserve.

A shift in governance could help mitigate pollution incidents and rebuild public trust. For an industry so vital to both people and the planet, it’s time water companies make the environment a core priority, not an afterthought.

By Sirisha Venkatesh