Severn Trent, one of the largest water companies in the UK, is planning to spend the money on environmental reparation, and on mitigating its impact on global climate.
The FTSE 100 company is planning on using 100% renewable energy to power its water-pumps, as well as on-boarding a fleet of all-electric vehicles, in order to cut down its emissions to net zero by 2030.
Along with committing to a ‘triple carbon pledge’, the company will work with 9,000 farmers to reduce the use of chemical fertilisers on their land. Severn Trent will also invest in initiatives to improve biodiversity across 5,000 hectares of land within the next seven years.
Chief executive, Liv Garfield, said: “By committing to invest £1.2bn in the next five years, we believe we can make a real difference to the environment and people we serve while delivering strong business outcomes”.
The company also notified investors of its intent to set aside 1% of profits into its community fund for supporting projects in local communities.
“We firmly believe that businesses with a strong social purpose can deliver better and more sustainable outcomes for all stakeholders over the long term,” said Garfield.
The chair of Natural England, Tony Juniper, said that the changes made by Severn Trent would be a “very significant contribution” to the Nature Recovery Network. The project is looking to rebuild the woodlands and peatlands of Britain, as well as working with farmers to restore soil quality and to protect species.
The measures being taken are seen to be a vital element in the UK’s battle against climate change, as it helps to trap and absorb carbon emissions from the atmosphere.
“We hope other major companies will soon come forward with comparable ambition, leading over time to an historic turnaround in the fortunes of our wildlife and natural environment,” said Juniper.
Around 8 million people in the Midlands and Wales are supplied with fresh and waste water services by Severn Trent.
The company recently came under pressure from Ofwat, the industry regulator, to make improvements in their services without increasing prices in order to cover the cost.
Other large water companies are planning to lodge an appeal against the regulator with the Competition and Markets Authority, but Severn Trent themselves have agreed to meet the regulator’s demands.
The government will today convene a task force with telecoms...
The UK government has issued a new “call for evidence”...
The energy retail arm of Royal Dutch Shell will take...
An electricity import cable taken out by a fire in...