Southern Water has successfully secured £825 million in sustainable bonds in one of the biggest public market financing issues for the water sector.

Earlier this year the company established an Environmental, social and governance (ESG) framework which demonstrates a set of standards for a company’s operations that socially conscious investors use to screen potential investments.

Chief Executive Ian McAulay commented:

“We know that the sustainability of water and waste water services are critical to other key organisations and front line services alongside the socio-economic wellbeing of the region. As our economy starts on the road to recovery from COVID-19 our programmes and role in supporting our communities are vital. This funding from investors with a stringent sustainability criteria demonstrates confidence in Southern Water’s fundamental commitment to improving outcomes for our customers and the environment.”

As a business Southern Water is committed to managing the impact of climate change and plastic pollution, as well as responsible environmental management, waste management and integrated water cycle management.

The water company’s proposed £2 billion programme of work over the next few years includes:

• Reactive communication pipe and stop tap replacements - reducing leakage and water abstraction which reduces the impacts on the environment in a water stressed part of the UK.
• Waste water pumping stations - this will protect SWS customers and the environment from internal & external flooding as well as pollution events
• Budds Farm – by increasing treatment capacity at the wastewater treatment works the environment will be better protected from pollution events in future
• Brighton East Nitrate removal - protects customer health by working to remove nitrate from the water source in the most affordable and environmentally sustainable way possible.
• Thanet Sewers - scheme to upgrade the sewer network in Margate.

Additional water importation from Portsmouth Water through Gaters Mill (further 23Ml/d) - this ensures that SWS utilises all water available in the SE of England, by sharing available water resources before looking to abstract from new, potentially more environmentally damaging, sources of water.

Want to know more about winning new business in AMP7? The water companies in England and Wales are set to spend a record £51 billion in the next five years.

Our  new report Complete AMP7 Contracts Tier 1 Alliances and Tier 1 Contractors 2020-25 contains details of the companies, the alliances, the contracts they’re already working on in the UK water sector, together with hundreds of key named contacts - click here for more information.