UK Water Companies Taking Steps To Be Greener
As commercial water saving experts, the team here at H2O Building Services is all too well aware of the pressure that global water resources are now under, thanks to climate change, urbanisation and a growing worldwide population.
This is why we’re so pleased to hear that water suppliers around the UK are now taking steps to help protect and restore water ecosystems, which is required under Sustainable Development Goal (SDG) 6, one of 17 SDGs set out by the UN in 2015, calling for clean water and sanitation for all.
Writing for Business Green, UK head of corporate coverage and transaction banking at BNP Paribas Simon Gates explained that it could be harder than you might think for the UK to achieve its SDG6 goals because, despite the fact that the country is renowned for its damp climate, parts of the UK actually see less rainfall than some deserts around the world.
Apparently, there’s a trend among suppliers in the water industry to engage with investors and demonstrate their environmental, social and governance plans by attaching them to debt financing, primarily through green or sustainable bonds.
These tie the use of proceeds to eco-friendly projects and sustainability-related loans, where a borrower will pay a rate of interest that is tied to sustainability key performance indicators.
For example, Yorkshire Water has a sustainability bond, which it issued in April, that goes further than green bonds because social categories are included that allow the company to include areas like social tariffs and support for vulnerable customers.
Anglian Water, meanwhile, was the first UK utility supplier to issue a green bond. It has now issued its second, financing projects that help mitigate the impact of climate change through water conservation and the use of energy-efficient facilities and which help to adapt to long-term climate change impacts like flood risks.
Mr Gates went on to note that there is also growing awareness of water usage among consumers as well and the importance of being more efficient in this regard.
“This will likely become more acute as the recommendations from the Task Force on Climate-related Financial Disclosures require them to consider the implications of water stress on their business.
“Hopefully this will be visible in future financings for water-hungry industries too, and the sustainable finance revolution could become the new normal in accelerating water sustainability strategies,” Mr Gates concluded.
Businesses concerned about water conservation can start taking steps now to protect this precious resource – and save themselves some money into the bargain as well.
What about looking into rainwater harvesting, where the water that collects on the roof of your site can be used instead of mains water? Or you could prioritise water leak detection to see if you’re wasting any water in this way. Give us a call today if you’d like to find out more.