MASHINIi

SEVERN TRENT PLC.

SVT.LSE | Water collection, treatment and supply

Severn Trent PLC is a water company operating primarily in the United Kingdom. It provides clean water and wastewater services to households and businesses in the Midlands and Wales. The company manages the entire water cycle, from sourcing and treating water to collecting and treating wastewater be...Show More

Ethical Profile

Mixed.

Severn Trent PLC's ethical standing presents a mixed picture. The company faced a £2 million fine for a sewage discharge incident, with Ofwat expanding its investigation into outflows. Yet, it achieved a 4-star Environment Agency rating in 2023 with zero serious pollution incidents. Severn Trent is investing £15 billion to create 7,000 jobs and offers a £575 million financial package for 700,000 customers. A Living Wage Employer, it provides 46 weeks of full-pay maternity leave, though reports suggest a rising ethnicity pay gap. Critics also highlight a $1.9 billion, 25-year contract with the UK Ministry of Defence. Environmentally, Severn Trent self-generates 58% of its electricity from renewables, targeting 500 GWh annually, and is restoring over 7,000 hectares of wildlife habitat.

Value Scores

Better Health for All0
-100100
Fair Money & Economic Opportunity-10
-100100
Fair Pay & Worker Respect50
-100100
Fair Trade & Ethical Sourcing0
-100100
Honest & Fair Business-10
-100100
Kind to Animals0
-100100
No War, No Weapons0
-100100
Planet-Friendly Business-30
-100100
Respect for Cultures & Communities20
-100100
Safe & Smart Tech10
-100100
Zero Waste & Sustainable Products-30
-100100

Better Health for All

0

Severn Trent's core business of providing clean water and wastewater services is fundamental to public health, preventing waterborne diseases and promoting hygiene. The company's revenue is derived from these essential services, which do not have inherently negative health outcomes. Severn Trent demonstrates transparency by self-reporting 89% of all pollution incidents.

1
However, the company faced a £2 million fine in February 2024 for allowing 260 million liters of raw sewage to flow into the River Trent between 2019 and 2020, and missed its Compliance Risk Index target in the fiscal year ending March 2024 amidst sewage pollution concerns.
2
Despite these negative externalities, the company achieved a 4-star Environmental Performance Assessment rating for five consecutive years (2019-2023), reported zero serious pollution incidents in 2023, and completed 1,500 engineering projects to reduce storm overflows, with 600 more planned to reduce spills by over 25%.
3
The company also offers substantial mental health support to its 6,500 employees through a mobile app, therapies, meditation, and mental health first aiders.
4
,
5
Additionally, Severn Trent runs the 'Wonderful Water Tour' educational roadshow to promote public health from an early age by educating children on water efficiency and hydration, and partners with RoSPA to promote home safety awareness.
6

Fair Money & Economic Opportunity

-10

Severn Trent provides affordability schemes and social tariffs, supporting over 290,000 customers in the reported year, which is approximately 6.17% of its 4.7 million households and businesses.

1
The company aims to support 700,000 customers, or one in six, by 2030.
2
The Severn Trent Community Fund donates 1% of Severn Trent Water’s annual profits after tax to good causes in the region.
3
In 2024/25, the fund awarded over £2 million to more than 113 organizations, and has awarded over £11 million to 896 organizations since its inception.
4
For other KPIs, the company does not offer lending or deposit services, consumer credit products, or financial service access points, making those KPIs not applicable as per the rubric's definitions.

Fair Pay & Worker Respect

50

Severn Trent is an accredited Living Wage Employer, ensuring employees and applicable suppliers' employees earn the Real Living Wage

1
, with 72% of employees participating in a Sharesave Scheme.
2
The CEO to median employee pay ratio is 67:1.
3
Approximately 91% of employees are covered by collective bargaining agreements.
4
The Lost Time Incident (LTI) rate is 0.08 per 100,000 hours worked.
5
The median gender pay gap is 7.8%, meaning women earn 92.2% of men's median pay.
6
The employee engagement score is 8.6 out of 10 (86/100) for 2023/24, placing the company in the top 3% of utilities globally.
7
There have been no substantiated modern slavery activities identified or cases raised through speak-up since 2015/16.
8
None of the direct workforce are on zero-hour contracts
9
, and approximately 2.45% of the workforce consists of temporary employees and contractors; the company is also an accredited Living Hours Employer.
10

Fair Trade & Ethical Sourcing

0

Severn Trent has implemented several initiatives to promote ethical sourcing and fair practices within its supply chain. The company works with its supply chain to ensure all suppliers adopt the Real Living Wage for direct employees on Severn Trent contracts

1
. It has committed to paying 98% of suppliers within 60 days, with an average payment time of 32 days
2
. To combat modern slavery, Severn Trent partnered with the Slave-Free Alliance, conducting risk assessments and providing training to employees and suppliers
3
. It also implemented a Modern Slavery Supplier Assurance Programme, requiring high-risk suppliers to complete self-certification questionnaires and undergo assessments
4
. The company established a Sustainable Supply Chain Charter, outlining ethical labor standards and environmental stewardship for its suppliers, supported by a Sustainable Procurement Statement
5
. Additionally, Severn Trent launched tenders for a more sustainable supply chain
6
and, in October 2024, initiated the Midlands Employer Alliance to boost job skills for marginalized groups
7
.

Honest & Fair Business

-10

Severn Trent PLC incurred approximately $2.55 million in ethics-related regulatory fines in the past three years

1
, including a £2 million fine in February 2024 for a sewage pollution incident that occurred in 2020
2
, and £43,000 in July 2024 for traffic management offences
3
. The company's audit coverage is robust, with 96% of Group revenue, 99% of Group net assets, and 99% of Group profit before interest and tax subject to independent audit testing for the year ended March 2025
4
. Severn Trent has a 'Speak Up' whistleblowing policy, which includes a confidential and independent helpline and online channel for all Group companies and suppliers
5
. Investigations are conducted independently, with findings reported directly to the Audit and Risk Committee, and the Board is satisfied with the policy's effectiveness
6
. Additionally, the company maintains a Group Financial Crime and Anti-Bribery and Anti-Corruption Policy, outlining acceptable behaviors and covering improper payments, gifts, or inducements, supported by mandatory e-learning modules on Anti-Bribery and Anti-Fraud
7
.

Kind to Animals

0

Severn Trent is a water utility company, and its core business model does not involve products requiring cruelty-free certification, animal testing, animal husbandry, animal-derived inputs, or sourcing of animal products like eggs, meat, or dairy. Its R&D is not relevant to animal-free substitution, and its operations do not intersect with animal welfare policies in the manner described by these KPIs. Therefore, most KPIs are scored as N/A. For wildlife conservation, the company has enhanced biodiversity on over 7,000 hectares, planted nearly 700,000 trees, and created wetland habitats.

1
It partnered with Butterfly Conservation on a three-year project to develop habitats for eight butterfly species.
2
Following a pollution incident, Severn Trent paid £327,500 to the Gloucestershire Wildlife Trust to fund habitat creation and restoration.
3
However, the rubric's specific quantitative thresholds for this KPI, such as financial investment as a percentage of revenue or detailed population recovery metrics, are not provided in the articles. Consequently, the wildlife_conservation_impact KPI is omitted.

No War, No Weapons

0

Severn Trent holds a 25-year contract, valued at $1.9 billion, with the UK Ministry of Defence (MOD) for delivering water and wastewater services to MOD sites

1
. The company also supports military personnel, including reservists and veterans, with additional paid leave, flexible working policies, and assistance in transitioning to civilian careers, earning Gold Status with the Armed Forces Covenant
2
. Based on the nature of its core business as a water company and the MOD contract being for water services, there is no evidence of exposure to controversial weapons, no defense assets requiring divestment, and no indication of needing or having ethical red lines related to weapons.

Planet-Friendly Business

-30

Severn Trent's carbon reduction plan, aiming for net-zero operational carbon emissions by 2030, has been approved by the Science Based Targets initiative, aligning with a 1.5°C warming limit.

1
This plan includes a commitment to a 46% reduction in Scope 1 and 2 emissions by 2031.
2
The company self-generated 58% of its electricity needs from renewable sources.
3
Severn Trent Green Power generated over 302 GWh of renewable energy in a 12-month period
4
and plans to increase total renewable energy output to 500 GWh annually with new solar farms.
5
The company is investing £100 million in solar farms
6
and plans a £40 million project to develop a carbon-neutral wastewater treatment plant, aiming to eliminate 34,000 tonnes of carbon annually.
7
For biodiversity, Severn Trent has committed to restoring 2,000 acres of peatland by 2025
8
, planted nearly 700,000 trees towards a goal of 1.3 million by 2030
9
, and improved over 7,000 hectares of land, surpassing initial goals.
10
The company achieved a 4-star status in the Environment Agency's Environmental Performance Assessment for five consecutive years
11
, noting a 30% cut in pollution incidents
12
and a 16% reduction in storm overflow activations.
13

Respect for Cultures & Communities

20

Severn Trent has no reported cultural appropriation incidents. The company actively supports cultural preservation, demonstrated by a £199,093 donation in 2022 for the refurbishment of Cromford Mill in Derbyshire.

1

Safe & Smart Tech

10

Severn Trent has not received any formal warnings, notices, or fines from the Information Commissioner's Office regarding data breaches, and states it has avoided data breaches.

1
The company invested £71 million in enhancing cybersecurity, which represents approximately 3.04% of its £2,338.2 million group turnover.
2
,
3
All employees receive mandatory annual cybersecurity and data protection training, including mock phishing exercises, which has increased vigilance and helped avoid data breaches.
4
The company emphasizes ethical AI principles, including transparency, accountability, and fairness, in its technology deployment.
5
Users are provided with standard GDPR rights, including access, rectification, objection, erasure, and restriction of personal data processing.
6
The company states it will not disclose personal information to third parties except as permitted by law, with no documented incidents of unauthorized data use.
7
Security testing involves regular internal and third-party testing of its network, systems, and sites.
8
Severn Trent demonstrates strong regulatory compliance, having achieved Network and Information Systems Regulations (NIS-R) compliance a year early and committing to General Data Protection Regulation (GDPR), Data Protection Act 2018, Security and Emergency Measures Direction (SEMD), and Payment Card Industry Standard (PCI-DSS).
9
,
10

Zero Waste & Sustainable Products

-30

Severn Trent demonstrates leading circular design implementation across its operations, utilizing anaerobic digestion to produce bio-fertilizer, installing the UK's first cellulose recovery plant for construction and green fuels

1
, exploring phosphorus and nitrogen recovery from sewage sludge
2
, and using Daphnia for wastewater treatment enabling reuse
3
. The company has numerous waste reduction initiatives, including a £40 million Net Zero Hub at Strongford cutting 34,000 tonnes of CO2 annually
4
, a Methane ‘Find and Fix’ Programme
5
, and a 40% reduction in blockages over the AMP7 period
6
. They also convert over 400,000 tonnes of food waste annually into low-carbon solid fuels
7
. For hazardous waste, the company actively manages PFAS, including testing, piloting treatment options, and investigating biochar production
8
. Waste audits are conducted annually for major facilities, with 197 site audits completed to date
9
and a target of 100 sites per year
10
. The company was fined £2 million for a pollution incident at its Barlaston wastewater treatment works in 2020
11
. Severn Trent has ambitious waste reduction targets, aiming to halve spills by 2030
12
and reduce the average number of spills from storm overflows by over 25% from 2024 levels
13
, targeting 18 spills per year by December 2025
14
. They have a comprehensive supplier waste program with performance monitoring, including a sustainability guidance document
15
, Net Zero commitments
16
, supplier questionnaires
17
, and a Supply Chain Sustainability Charter signed by 100% of suppliers
18
. The company also runs comprehensive customer education programs for children and the public on water efficiency, proper sewer use, and choosing tap water to reduce plastic
19
.

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AI-generated analysis based on publicly available data. Not financial advice. Ratings are expressions of opinion derived from automated models and may contain inaccuracies. See our Risk Disclosure for full details.