Annual report and financial statement 2009 - United Utilities

BUSINESS REVIEW: CORPORATE RESPONSIBILITYCorporate responsibilityAt United Utilities, corporate responsibility (CR) is how the groupassesses, manages and measures its economic, environmental andsocial impact and this embraces all aspects of its performance.Taking a balanced approach between medium and longer-termbenefits in pursuing CR means that in the current difficult economiccircumstances, the group will continue to have regard to ensuringits services are meeting the needs of its customers, includingaddressing the issues of affordability, and to contributing to thecommunities it serves. For instance, to help vulnerable customers,the group’s contribution to the United Utilities Trust Fund willincrease 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 theenvironment; supporting communities; and maintaining economicgrowth. Particular focus is on climate change and skills developmentin engineering, science and technology as both have the greatestimpact on the group’s ability to operate now and in the future. Thegroup’s community investment committee and CR panel continueto provide strategic governance and challenge to this approach.Given the importance the group places on CR, a dedicated reporthas been produced online at unitedutilities.com/crreport2009THE ENVIRONMENTThe group continues to deliver the plans it set out in 2007 fortackling climate change. Activities have focused on the carbonreduction potential associated with expanding renewable energygeneration using sewage gas as a source of energy. In 2008/09100 GWh of renewable energy was generated, the equivalentof 53,788 tonnes of carbon dioxide.The UK Government’s forthcoming Carbon Reduction Commitmentwill present a significant challenge to the water industry to delivercarbon reductions against an increasing requirement to improvewater and wastewater quality. To drive further reductions, thegroup is continuing to research and invest in more efficienttreatment processes and additional renewable energy resources.In recognition of its efforts, United Utilities was awarded theCarbon Trust standard.Sustainable management of water resources is vital in protectingthe environment and ensuring reliable supplies of drinking water.In January the group launched its draft 25-year Water ResourcesManagement Plan and continues to reduce the amount of waterneeded to be taken from the environment through programmes onleakage, water efficiency and metering. Customers are encouragedto take part in reducing demand. For example, installing a metertypically reduces household water consumption by 10 per cent. Lastyear 58,240 meters were installed under UUW’s free meter scheme.2009 is the final year of a £10 million programme to improve thecondition of the Peak District and Trough of Bowland estates.Nearly a third of the land is designated Sites of Special ScientificInterest, with over 96 per cent now rated as ‘favourable’ or‘favourable recovery’, ahead of national targets. The scheme isbringing considerable benefits to wildlife habitats, as well asimprovements to raw water quality.The group has improved its management of waste, working withpartners to ensure compliance with the Site Waste ManagementPlan regulations that came into force in April 2008. Innovativeways to manage waste, using recycled products, includingaggregate and transformer oil, continue to reduce the amountsent to landfill.A new method of charging for surface and highway drainageservices on a site area basis, rather than rateable value, formetered non-household customers was introduced. This method,preferred by Ofwat, spreads the cost of providing this servicemore fairly across the whole customer base and is designedto encourage more environmental ways of dealing with surfacewater, for instance by installing ‘soakaways’. However, even witha phased introduction, some customer groups have experiencedsignificant increases in their charges. The group has thereforeimposed a moratorium for faith buildings, scout and guideassociations and community amateur sports clubs pendingreview of this charging approach, and community partnerGroundwork is helping to promote actions that organisationscan take to reduce bills.COMMUNITYThe group’s education programme supports the focus on climatechange and engineering skills, and promotes water and energyefficiency in schools. Since September 2008, 50 schools havesigned up to the programme, which aims to have a measurableimpact on how they tackle climate change issues.2009 brings the final year of the group’s 25-year partnershipwith the Mersey Basin Campaign. This has seen improvement inwater quality across the region; an example which is now beingreplicated in Europe.Partnerships with Hope through Action, Youth Sport Trust and afurther commitment to WaterAid have evolved as a result of theExecutive Leadership Team’s Changing Lives Challenge. Around£660,000 was raised by employees, suppliers and partners insupport of a team challenge that helped to improve sanitationin Zambia in collaboration with WaterAid.Last year the group invested around £3 million in the communitiesin which it operates, including cash, time and in-kind contributions.It increased support to employees involved in community activityby linking volunteering activity to personal development andsupporting them through community grants and matched funding.Detail on the group’s corporate responsibilityperformance is available at unitedutilities.com/crreport2009Big Tick re-accreditation14 unitedutilities.com