Our Transition Plans
At Pennon, we recognise the need to transition to a low-carbon and climate-resilient economy in line with the Paris Agreement and a 1.5°C future. As a leading provider of water and wastewater services, we are committed to delivering a sustainable future while protecting the natural environment across our regions.
During the year, we revalidated our near-term Science Based Targets (SBTs) through the Science Based Targets initiative (SBTi), updating our baseline to reflect the inclusion of SES Water and alignment with the latest climate science. These targets provide a clear and credible pathway for reducing our greenhouse gas emissions in line with a 1.5°C trajectory.
We are focused on delivering against these targets through our decarbonisation strategy, supported by investment in renewable energy, operational efficiency and low-carbon infrastructure.
Alongside our near-term ambitions, we are developing a Group Climate Transition Plan, which will set out our pathway to Net Zero across all emissions scopes by 2050. This will provide greater transparency on the actions, dependencies and milestones required to achieve our long-term ambitions.
We continue to align our approach with emerging best practice, including the Transition Plan Taskforce (TPT) guidance, and will build on our disclosures over time as our transition planning evolves.
Climate adaptation
Assessing climate change risk and any potential impacts and possible mitigations on our various operations, assets and networks, remains an ongoing priority.
We have made good progress in mitigating the impacts of climate change and continue to embed climate resilience across our long-term planning frameworks. As climate-related risks evolve, we regularly monitor and review these plans to ensure they remain effective, which collectively are delivered through:
- Water Resource Management Plans (WRMPs) across South West Water, Bristol Water and SES Water, setting out long-term water supply strategies over 25 years
- Drainage and Wastewater Management Plans (DWMPs), supporting resilience and sustainable wastewater services
- Our 2025–2030 Business Plan, delivering investment to strengthen infrastructure, improve environmental outcomes and build resilience to climate change
These plans are regularly reviewed and updated to reflect evolving risks, including more frequent extreme weather events, population growth and environmental pressures.
- South West Water, Bristol Water and SES Water - Water Resource Management Plans for the next 25 years.
- South West Water - Drainage and Waste Water Management Plan for the next 25 years.
- South West Water, Bristol Water and SES Water - five-year business plan covering the period 2025-2030.
Each of these plans can be found on the relevant company website, as below:
For further details of how our business is preparing for climate change please see our latest Climate Change Adaptation Report
We are core members of the Water Resources West Country Water Resources group, established in 2017 to allow improved collaboration in water resources management in the South West of England.
Task Force on Climate-related Financial Disclosures’ (TCFD)
TCFD provides a framework setting out how businesses should integrate climate change risk and opportunities into their business strategy, governance, risk management and metrics and targets. Pennon support the Financial Stability Board Task Force on Climate-related Financial Disclosures’ (TCFD) recommendations that were introduced as mandatory reporting for 2022..
We operate in a changing environment where the impacts of climate change and biodiversity loss are increasingly evident. To remain resilient, we monitor climate risks, assess their implications, and embed these insights into our strategic planning and investment decisions.
Our disclosures under the TCFD and TNFD frameworks reflect our commitment to transparency, accountability, and continuous improvement. Our regulated water business is the focus of our TCFD and TNFD disclosures, with most of our assets, revenues, and expenditures related to this area of our business.
TCFD recommendations
In alignment with the FCA Listing Rule 6.6.6(8), we have taken into account available knowledge and guidance concerning the Listing Rule and climate-related risks to develop our TCFD disclosure, which is consistent with the TCFD framework. We have addressed the 11 recommended disclosures and have considered the best practice guidance from the TCFD.
TNFD recommendations
The TNFD published their final framework in September 2023 and published sector guidance for water utilities in June 2025.
This is our fifth year of voluntarily reporting against the TNFD framework and we have now embedded our long-term commitment to managing nature-related risks and opportunities across the Group, through becoming an official TNFD adopter.
We continue to integrate TNFD into our TCFD disclosures, recognising the substantial overlap and synergies between action on climate change and the nature emergency.
At the same time, we also recognise some trade-offs in meeting our goals around resilience, Net Zero, and nature.
There is further work to do on the recommended TNFD disclosures, and we are continuing to monitor the inclusion of nature risks in the UK sustainability disclosure requirements.
Read out TCFD and TNFD reports in the Annual Report and Accounts 2025/26 available here.