Our ESG targets, set for the 2025–2030 period following the completion of our Double Materiality Assessment, reflect the priority issues identified by our stakeholders that sit beyond existing regulatory commitments. These targets focus on areas of greatest impact, ensuring our ESG approach addresses the issues most relevant to both our business and the wider environment.
In 2025/26, we made strong progress in delivering against these refreshed targets, with 12 out of 14 targets on track, and further improvements expected as delivery accelerates across AMP8. This performance reflects continued progress in embedding ESG considerations across our strategy, operations and decision-making processes.
Progress during the year has been driven by advancements across key areas. We have maintained strong performance against our net zero ambitions, supported by a 41% reduction in Scope 1 and 2 emissions from our 2021/22 baseline. We have also continued to deliver our nature-based programmes, exceeding 400,000 cumulative trees planted to date, alongside strengthening our impact across communities and catchments through targeted investment and partnership programmes.
These outcomes demonstrate continued momentum in embedding ESG across the Group, while recognising that further progress is required in specific areas, including renewable electricity generation, to support delivery of our longer-term targets.
For more information on futher ESG performance metrics, see the ESG Databook available here.
Pennon’s ESG performance and reporting is assured by Jacobs, an independent consultancy with expertise in technical assurance for the utility sector. This limited assurance process is completed in accordance with the International Auditing and Assurance Standards Board’s (IAASB) International Standard on Assurance Engagements 3000 (ISAE 3000 (Revised) using a controls-based approach, assessing the processes, systems, and governance frameworks that underpin ESG data to ensure accuracy, consistency, and reliability.
Jacobs ESG Assurance Statement
Certain other disclosures within the Annual Report and ESG Databook that relate to the sustainability performance of South West Water and Bristol Water have also been subject to an independent audit of regulatory data conducted by Jacobs, who are engaged to independently audit technical (non-financial) data relating to our Outcome Delivery Incentives published in their Annual Performance Reports (APRs). This includes all regulatory targets, including a suite of environmental performance indicators.
This year, Jacobs are also conducting an independent audit of other non-financial data, also included in the APR.
Each of these assurance reports can be found in the relevant APR documents below:
www.southwestwater.co.uk/about-us/documents/Annual-reports/
www.bristolwater.co.uk/about-us/our-performance
www.seswater.co.uk/about-us/publications/our-annual-performance-report
Our Community Investment data has been assured by Business for Community Impact (B4SI).