SUSTAINABILITY
TRENDS
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Our Vision
To be the national leader in the provision of sustainable
water and waste water services.
Northumbrian Water Limited (NWL) is one of the ten regulated water
and sewerage businesses in England and Wales.
NWL operates in the north east of England, where it trades as
Northumbrian Water, and in the south east of England, where it trades
as Essex & Suffolk Water. Northumbrian Water currently provides
water and sewerage services to 2.7 million people and Essex & Suffolk
Water provides water services to 1.8 million people in a combined area
of over 12,260 square kilometres.
Contents
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14 Competiveness
19 People
32 Environment
46 Community
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Awards 2013
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SUSTAINABILITY
TRENDS
CUSTOMER
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CUSTOMER
Our relationship with customers is core to the
success of our business and it is essential that
they trust us. Customer service is at the heart of
the company’s culture and all employees have a
clear focus on getting things ‘right first time every
time’. Although we are required to meet regulated
standards for customer service, this does not
define our aspiration and the quality of our service
goes beyond that.
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MEDIUM TERM GOALS
Our medium term goals are company-wide. By working together to achieve each
goal and constantly improve our performance, we will ultimately achieve our vision
as the national leader.
Customer medium term goals
Lowest on unplanned interruptions
Top SIM score for a water and sewerage company
Top Consumer Council for Water research score in value for money Customer satisfaction scores increased to 8.5 average
Stable serviceability
Industry leading water quality Security of supply
Minimised internal flooding
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CUSTOMER AT A GLANCE
We report on our sustainability performance across many aspects of our business,
below are the indicators which sum up our customer 2012/13 annual performance
and trend data.
Medium term goals
Lowest on unplanned interruptions
We plan to have the lowest number of customer’s affected by unplanned losses of water supply but, if one does occur, we aim to restore supplies within six hours.
Water supply interruptions three hours or longer (average duration per property connected)
mm:ss
Includes planned and unplanned interruptions. 17:27 19:45 18:15 09:46 06:57 00:00 05:00 10:00 15:00 20:00 08/09 09/10 10/11 11/12 12/13
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Top Service Incentive Mechanism (SIM) score for a water and sewerage
company
We will deliver top class customer service, right first time every time, which clearly sets us, apart and places us firmly at the top of Ofwat’s performance league table for water and sewerage companies.
Quantitative SIM score Number Quantitative SIM score (Score out of five)
Number
The indicator measures complaints and unwanted contacts from customers, the measure combines existing performance indicators with ones specifically developed for the SIM. The better a company’s performance, the lower the score.
The indicator measures how satisfied customers are with the quality of service they receive, based on a survey of consumers who have had direct contact with us. The top score on this measure is five.
Overall SIM scores for water and sewerage companies
%
The overall SIM score is produced by combining the two measures, with both having equal weighting. The two scores are then added to produce an overall score between 0 and 100. The better a company’s performance, the higher the score. 211.11 162.07 157.22 119 109 109 0 50 100 150 200 250 10/11 11/12 12/13 Northumbrian Water Ltd Sector leader 4.14 4.33 4.46 4.47 4.56 4.69 0 1 2 3 4 5 10/11 11/12 12/13 Northumbrian Water Ltd Sector leader 71.66 78.12 80.15 84 85 85 0 10 20 30 40 50 60 70 80 90 100 10/11 11/12 12/13 Northumbrian Water limited Sector leader
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Top Consumer Council for Water research score in value for money
We will deliver top quality water and sewerage services at prices our customers think are value for money.
Satisfaction with value for money of water services for Northumbrian Water
% Satisfaction with value for money of sewerage services for Northumbrian Water
%
Our bills did increase which may have influenced customers’ perception, albeit they remain amongst the lowest (on average) across the industry. A more influential factor in terms of value for money may well be the current economic climate which will impact upon many aspects of customer affordability.
81 70 79 69 71 72 83 72 74 72 0 10 20 30 40 50 60 70 80 90 100 2008 2009 2010 2011 2012 Northumbrian Water CCWater score All companies CCWater score 82 76 8071 71 73 84 71 77 73 0 10 20 30 40 50 60 70 80 90 100 2008 2009 2010 2011 2012 Northumbrian Water CCWater score All companies CCWater score
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Customer satisfaction scores increased to 8.5 average
We will deliver great service to our customers so that they are completely satisfied and more likely to share that satisfaction with family, friends and colleagues.
We measure the views of our customers with quarterly tracking research alongside qualitative work in focus groups. This helps us understand their views on service, value for money and other issues as well as general perception of the Company.
Overall customer satisfaction
Number Customer satisfaction with value for money
%
Overall customer satisfaction % Customer satisfaction with value for money
%
The reporting period for this measure changed to calendar year in 2012.
The reporting period for this measure changed to calendar year in 2012. Domestic customers’ satisfaction with overall service and overall value for money, expressed as an average over the surveys carried out during the year. Average
satisfaction is based on a scale of 1 to 10 using the score of 6 and above as satisfied. Net scores are used to show true satisfaction by taking into consideration those who are dissatisfied who score between 1 and 3.
Independent surveys of 300 customers (150 north, 150 south) chosen at random, but representative of the customer base, are carried out each quarter, a total of 1,200 customers each year
8.1 8.0 8.1 8.2 8.2 0 1 2 3 4 5 6 7 8 9 10 08/09 09/10 10/11 11/12 12/13 Average score out of ten 7.9 7.6 7.9 7.8 7.9 0 1 2 3 4 5 6 7 8 9 10 08/09 09/10 10/11 11/12 12/13 Average score out of ten 88 88 89 90 92 90 90 91 91 91 80 82 84 86 88 90 92 08/09 09/10 10/11 11/12 2012 Customers satisfied or very satisfied with the service NWL provides Target 84 83 85 85 88 85 85 87 87 87 80 82 84 86 88 90 92 08/09 09/10 10/11 11/12 2012 Customers satisfied or very satisfied with value for money for the service NWL provides Target
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Stable serviceability
We want Ofwat to judge that our assets are performing to the required standard so that they are able to deliver expected levels of service now and in the future.
Maintaining our assets in a serviceable condition is key to providing excellent service for our customers.
Serviceability for the water and sewerage non infrastructure sub-services remains stable. Our assessment is that the water and sewerage infrastructure sub-areas have also remained stable.
Serviceability performance
09/10 10/11 11/12 12/13
Water non infrastructure Stable Stable Stable Stable Serviceability maintained Water infrastructure Marginal Stable Stable Stable Serviceability
maintained Sewerage non
infrastructure Stable Stable Stable Stable
Serviceability maintained Sewerage infrastructure Marginal Marginal Stable Stable Serviceability
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Industry leading water quality
We plan to deliver industry leading water quality for all the water we supply. This will be shown by performance against a single set of water quality metrics and associated
targets. This new medium term goal replaces zero breaches of health related water quality standards and minimised discoloured water.
Coliform compliance at water treatment works
% Coliform compliance at service reservoirs
%
2012 - 10 failures in 9,685 samples 2012 - 17 failures in 16,173 samples
E. Coli compliance at water treatment works
% E. Coli compliance at service reservoirs
%
2012 - 1 failures in 9,685 samples 2012 - 3 failures in 16,173 samples
Customer complaints about discoloured water Number Excludes incidents 99.90 99.92 99.97 99.94 99.90 100 100 100 100 100 100 99.0 99.1 99.2 99.3 99.4 99.5 99.6 99.7 99.8 99.9 100.0 2008 2009 2010 2011 2012 2013 Sample compliance Target 99.90 99.88 99.87 99.91 99.89 100 100 100 100 100 100 99.0 99.1 99.2 99.3 99.4 99.5 99.6 99.7 99.8 99.9 100.0 2008 2009 2010 2011 2012 2013 Sample compliance Target 99.99 100 99.99 100 99.99 100 100 100 100 100 100 99.90 99.92 99.94 99.96 99.98 100.00 2008 2009 2010 2011 2012 2013 Sample compliance Target 99.97 99.98 99.99 99.99 99.98 100 100 100 100 100 100 99.90 99.92 99.94 99.96 99.98 100.00 2008 2009 2010 2011 2012 2013 Sample compliance Target 5,253 4,681 5,685 4,459 4,511 0 1,000 2,000 3,000 4,000 5,000 6,000 2008 2009 2010 2011 2012
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Security of supply
We want 100% security of supply as it means that we have adequate water resources. Through demand management we aim to ensure that there are no hosepipe bans in the north and no more than one in every 20 years in the south.
Security of Supply Index –
Northumbrian Water
% Security of Supply Index –
Essex & Suffolk Water
% Security of supply 08/09 09/10 10/11 11/12 12/13 Housepipe restrictions 0 0 0 0 0 Drought orders 0 0 0 0 0 Sprinkler/unattended hosepipe restriction 0 0 0 0 0 100 100 100 100 100 0 10 20 30 40 50 60 70 80 90 100 08/09 09/10 10/11 11/12 12/13 84 85 82 85 97 0 10 20 30 40 50 60 70 80 90 100 08/09 09/10 10/11 11/12 12/13
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Minimised internal flooding
We want to limit the number of properties flooded internally each year to no more than 300. We will achieve this by investment in flooding alleviation schemes, network performance instrumentation, rain radar and management information systems.
Extremely high levels of rainfall in 2012 led to both minor and major flooding incidents across the country. Rainfall falling on saturated ground and rapidly running–off into sewers and drains caused some sewer flooding even with non-intense storms. However, the high intensity of storms on a number of occasions, some of which were not expected to occur more than once in 100 years on average, caused problems for river flood defences operated by the Environment Agency, local authority drainage, highway drainage as well as our sewerage system.
The total number of properties in our area flooded internally from sewers, for all causes (but excluding severe weather), was 566 in 2012/13 compared to 377 for 2011/12. This is a relatively small increase given the prolonged period of persistent rainfall experienced from April to December 2012.
The total number of properties flooded internally in the year from all causes (including severe weather) was 1,797 compared with 398 for 2011/2012.
Last year we introduced a new ‘repeat flooding measure’. This shows a total of 1,196 properties experienced repeat flooding in 2012/13 as compared to 313 properties in 2011/12. The measure includes sewer flooding from severe weather and, therefore, is affected by the intense storms referred to above.
Properties subject to internal flooding
Number Properties removed from the flooding register as a result of our activities
Number
Properties subject to repeat internal sewer flooding
Number Investment to reduce internal sewer flooding
£(millions) 829 973 383 377 566 0 200 400 600 800 1,000 1,200 08/09 09/10 10/11 11/12 12/13 111 277 178 226 102 0 50 100 150 200 250 300 08/09 09/10 10/11 11/12 12/13 587 763 290 313 1,196 0 200 400 600 800 1,000 1,200 08/09 09/10 10/11 11/12 12/13 16.6 27.0 24.8 22.9 23.4 0 5 10 15 20 25 30 08/09 09/10 10/11 11/12 12/13
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High standards of customer service in non-regulated business
We will set measures for our non-regulated business to ensure that all our customers get great service.
Customer satisfaction with fishing facilities % 94 79 98 83 98 85 98 87 0 10 20 30 40 50 60 70 80 90 100 2009 2010 2011 2012 Customer service Quality of facilites
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Customer additional information
Properties at risk of low pressure
Northumbrian Water
Number Properties at risk of low pressure
Essex & Suffolk Water
Number
Billing contacts responded to (within five working days) Northumbrian Water
% Billing contacts responded to (within five working days) Essex & Suffolk Water
% 271 260 230 216 229 274 274 256 270 210 0 50 100 150 200 250 300 08/09 09/10 10/11 11/12 12/13 Properties at risk of low pressure Target 40 40 41 41 41 126 126 55 41 41 0 20 40 60 80 100 120 140 08/09 09/10 10/11 11/12 12/13 Properties at risk of low pressure Target 99.20 99.40 99.30 99.30 99.43 99.20 99.20 99.30 99.20 99.20 90.0 91.0 92.0 93.0 94.0 95.0 96.0 97.0 98.0 99.0 100.0 08/09 09/10 10/11 11/12 12/13 Billing contacts responded to (within five working days) Target 99.60 99.40 99.70 99.84 98.01 99.20 99.20 99.30 99.20 99.20 90.0 91.0 92.0 93.0 94.0 95.0 96.0 97.0 98.0 99.0 100.0 08/09 09/10 10/11 11/12 12/13 Billing contacts responded to (within five working days) Target
SUSTAINABILITY
TRENDS
COMPETIVENESS
Competiveness
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Competiveness
Competitiveness will drive us to greater efficiency and,
indeed, to be most efficient water company. It is not just
about driving cost down but using innovation to support
out activity.
Competiveness
2013
MEDIUM TERM
GOALS
Our medium term goals are company-wide. By working together to achieve each
goal and constantly improve our performance, we will ultimately achieve our vision
as the national leader.
Competiveness medium term goals
Maximise income collection
Ofwat measure of minimum of lower A for water and waste water by March 2014 Credit rating BBB plus stable outlook
Non-regulated business growth
External recognition for achieving business excellence Capital efficiency at 10%
Excellent information systems Excellent information management Ofwat recognition for asset management Plan for a successful PR14
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Competiveness at a glance
We report on our sustainability performance across many aspects of our business,
below are a few indicators which sum up our 2012/13 annual performance and
trend data at a glance.
Medium term goals
Maximise income collection
We will work with customers who don’t pay to ensure that we collect as much money as possible. This will minimise the cost of bad debt to the company and also reduce the burden of additional cost placed on those customers who pay their bills.
We will ensure that all customers will be made aware of the best available tariff for them. In addition, for customers who have difficulty paying, we will offer a comprehensive package of affordability measures and we are committed to introducing a social tariff that is
acceptable to our customers.
Ofwat measure of a minimum of lower A for water and waste water by
March 2014
OFWAT is changing the way it may look at efficiency for the 2015-20 price review. It will be our plan to be the most efficient by whatever method they choose.
Credit rating BBB plus stable outlook
We will maintain a stable credit rating as we need to continue to borrow money to fund our operations and keep borrowing costs efficient.
Credit rating for Northumbrian Water Limited
08/09 09/10 10/11 11/12 12/13 Fitch BBB+ stable BBB+ stable BBB+ stable BBB+ stable BBB+ stable Standard & Poor’s BBB+
stable BBB+ stable BBB+ stable BBB+ stable BBB+ stable Moody’s Baa1 stable Baa1 stable Baa1 stable Baa1 stable Baa1 stable
Competiveness
2013
Non-regulated business growth
We aim to grow our non-regulated business by 5% per year, whilst maintaining our high levels customer satisfaction.
Customer satisfaction with fishing facilities % 94 79 98 83 98 85 98 87 0 10 20 30 40 50 60 70 80 90 100 2009 2010 2011 2012 Customer service Quality of facilites
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SUSTAINABILITY
TRENDS
PEOPLE
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PEOPLE
People are our greatest asset and we want to be
recognised as a great company to work for with high
levels of satisfaction from our employees.
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MEDIUM TERM GOALS
Our medium term goals are company-wide. By working together to achieve each
goal and constantly improve our performance, we will ultimately achieve our vision
as the national leader.
People medium term goals
Company values are embedded. Great company to work for. Attendance level of 97%.
Performance management embedded.
Management competency framework embedded, and personal development and succession planning in place.
Excellent internal communications. Excellent employee relations.
Flexible work force to respond to customer needs. Improve the diversity of our workforce.
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People at a glance
We report on our sustainability performance across many aspects of our business,
below are the indicators which sum up our people 2012/13 annual performance and
trend data.
Please note that the employee survey is carried out in alternate years to our entry
into the Best Companies to work for survey. Some of the figures below are from
the last available employee survey data in 2011
,
2013 results are not yet available.
We enter the Sunday Times Best Companies survey so that we can benchmark
with other companies about how well we are doing in our aim to be a great place
to work. Not only will this help us understand what we could be doing to make
NWL an even better place for us to work but, there is clear evidence that
customers feel they have a better customer experience with companies where
people are proud to work, highly motivated and committed.
Company values are embedded
We will live and breathe our values as they describe who we are, how we behave
and what sort of business we aspire to be. How well our values are embedded will
be assessed through performance reviews, 360 feedback and employee surveys.
I am aware of NWL’s mission and values
% I believe the Company lives up to its values % 73 74 86 88 94 0 10 20 30 40 50 60 70 80 90 100 2007 2008 2009 2010 2011 60 63 76 75 87 0 10 20 30 40 50 60 70 80 90 100 2007 2008 2009 2010 2011
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Great company to work for
Our people tell us this is a great place to work and we will continue to measure this,
using independent assessments of how we perform against other UK
organisations, including The Sunday Times Best Companies survey.
Employee turnover % Employees who would
recommend the company as a great place to work
%
Employees who say that NWL is a great organisation to work for
% Employees who are proud to work for the Company
%
Best Companies Survey 2011 – One to watch (first attempt).
Best Companies Survey 2013 – One star (first class) – score increase described as remarkable by Best Companies.
6.4 6.5 5.8 4.6 4.8 10.4 9.2 9.4 9.4 9.4 0 2 4 6 8 10 12 08/09 09/10 10/11 11/12 12/13 Employee turnover rate Industry average 78 79 82 81 85 0 10 20 30 40 50 60 70 80 90 100 2007 2008 2009 2010 2011 66 71 77 77 80 66 71 76 82 82 0 10 20 30 40 50 60 70 80 90 100 2007 2008 2009 2010 2011 Employee survey results Target 75 77 80 80 83 82 83 83 81 81 81 0 10 20 30 40 50 60 70 80 90 100 2007 2008 2009 2010 2011 2015 Employee survey results Target
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Attendance level of 97%.
We aim to sustainably increase attendance to 97% through our health and
wellbeing initiatives such as health surveillance, RehabWorks and NWL Support
and aim to support the long term health of our people.
Northumbrian Water Limited attendance level
% Average monthly number of employees on the payroll during the financial year
Number
Total number of employees at the year end of the
financial year Number 97.06 96.82 96.89 97.00 96.86 97.15 97.15 97.15 97.15 97.15 97.00 95.0 95.5 96.0 96.5 97.0 97.5 08/09 09/10 10/11 11/12 12/13 13/14 Attendance level Target 2,942 2,930 2,875 2,894 2,957 0 500 1,000 1,500 2,000 2,500 3,000 08/09 09/10 10/11 11/12 12/13 2,966 2,894 2,866 2,933 2,981 0 500 1,000 1,500 2,000 2,500 3,000 08/09 09/10 10/11 11/12 12/13
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Performance management embedded
We will develop a high performance culture by developing an effective performance
management approach and supporting people to use it so that great performance is
the standard for everyone.
Employees qualified to National Qualification
Framework Level 2* or above
% Managers qualified to minimum National Qualification
Framework Level 3**
%
* Equates to five GCSEs at grades A to C, a BTEC first diploma or City & Guilds Level 2.
**Equates to two or more A levels, BTEC Ordinary National Diploma (OND), City & Guilds Level 3. 88.00 90.21 90.80 90.08 90.00 75 80 85 90 95 2009 2010 2011 2012 2013 NQF L2 qualified employees Target 70.00 74.90 75.30 76.61 75.00 66 68 70 72 74 76 78 2009 2010 2011 2012 2013 NQF L3 qualified managers Target
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Management competency framework embedded, and personal development
and succession planning in place.
We will ensure that all people managers have practical support to achieve competency. We will ensure all employees have a personal discussion annually and support realistic
aspirations.
We will review our people plans each year to ensure we have appropriate succession plans and resource in the company to meet future needs.
An integrated Management Development Framework has been developed and
implemented to meet the needs of people managers at all levels across the business. The framework is structured to cover any training needs of current and future managers, helping develop leadership skills for all levels of management from potential managers to directors.
Plans are being developed to ensure that key skills and knowledge are retained within the company.
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Excellent internal communications
We want to ensure that over 90% of our employees are satisfied with the communications they receive and will measure this in our employee survey which takes place in alternate years to the Best Companies Survey
.
The company keeps me well informed about its objectives and performance % Communication in my team is good % 77 74 81 79 85 0 10 20 30 40 50 60 70 80 90 100 2007 2008 2009 2010 2011 73 70 73 70 67 0 10 20 30 40 50 60 70 80 90 100 2007 2008 2009 2010 2011
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Excellent employee relations
We will continue to work constructively with employee representatives, including trade unions, to balance the interests of our people with the needs of the business to ensure long term success and security for all.
Employees covered by
Negotiation and Consultation Group (NCG) or Personal Contract Consultation Group
% 100 100 100 100 100 0 10 20 30 40 50 60 70 80 90 100 2008 2009 2010 2011 2012
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Flexible work force to respond to customer needs
We will evolve how we work flexibly to meet customer expectations and ensure value for money. People who work for us will be able to take real pride in their work being rated 5/5 by customers and colleagues.
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Improve diversity in our workforce
We will be recognised as a company people wish to work for, an employer who embraces the rich and diverse communities we serve and appreciates the abilities of current and potential employees. Employee profile (Overall Workforce) % 71.1 70.2 69.7 68.6 68.1 28.9 29.8 30.3 31.4 31.9 0 10 20 30 40 50 60 70 80 90 100 08/09 09/10 10/11 11/12 12/13 Female Male
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Independent assessment of our health and safety practices
We will demonstrate our commitment to health and safety by achieving a gold
award from the Royal Society for the Prevention of Accidents.
Lost time accidents per 1,000 employees
Number Days lost through accidents per 1,000 employees
Number
RIDDORs per 1,000 employees
Number
NWL has been awarded the RoSPA Gold Award for the second year running.
8.2 10.5 11.3 6.6 6.5 0 2 4 6 8 10 12 2008 2009 2012 2011 2012 198.1 151.9 252.3 117.9 79.9 0 50 100 150 200 250 300 2008 2009 2012 2011 2012 5.1 8.1 6.2 2.4 4.8 0 1 2 3 4 5 6 7 8 9 2008 2009 2012 2011 2012
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SUSTAINABILITY
TRENDS
ENVIRONMENT
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ENVIRONMENT
The environment is critical to us and our
stakeholders and we acknowledge our
responsibilities to protect and enhance the natural
environment. Our carbon management plan will help
reduce our carbon footprint and we will adopt good
environmental practice in all aspects of our activity.
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POLICY
Northumbrian Water Limited (NWL) is founded on water and environmental
engineering and much of what we do influences the environment. We recognise
the impact we have on the environment and in everything we do, we aim to
protect and improve the environment for the benefit of all.
We are committed to protecting and enhancing the environment as a business
priority and promoting awareness of environmental issues throughout the
business. We will work ethically to achieve this by:
Complying with relevant legislation and other applicable requirements in all
of our activities and seeking to continually improve performance and achieve
best practice standards.
Providing appropriate systems and procedures to plan, develop, implement,
monitor and review the environmental policy and ensure appropriate
resources are available to maintain, monitor and, where necessary, improve
environmental performance.
Requiring contractors and suppliers to carry out their activities to standards
that at least match those of NWL and that their environmental performance
is monitored closely.
Demonstrating effective communication and consultation on environmental
matters at every level of the business.
Providing appropriate environmental information, instruction, training and
supervision to ensure that environmental requirements are understood
throughout the business.
Striving to achieve our environmental medium term goals, set out in our
visions in the areas of:
o
Pursuing our comprehensive water efficiency strategy
o
Enhancing biodiversity on our land holdings
o
Ensuring all sewage works meet their consents
o
Increasing our use of energy from renewable sources
o
Ensuring all bathing waters in our region meet EU standards
o
Using all recycled material as backfill on street works
o
Reducing leakage
o
Reducing our carbon footprint
o
Aiming to prevent pollution incident
Ensuring that environmental indicators are reported to the company
management team each month and feature prominently in corporate
communications, including the Annual Report.
We annually review the environment policy and the way it operates, or more
frequently in the case of significant change to the nature or scope of
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MEDIUM TERM GOALS
Our medium term goals are company-wide. By working together to achieve each
goal and constantly improve our performance, we will ultimately achieve our vision
as the national leader.
Environment medium term goals
Meet our water efficiency targets.
Enhance biodiversity on our land holdings. All sewage works meet their consents
Increased use of energy from renewable sources
90% of our bathing waters to be at least EU guideline quality (good). Reduce waste and increase recycling.
Reduced leakage.
Reduce our carbon footprint.
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ENVIRONMENT AT A GLANCE
We report on our sustainability performance across many aspects of our
business, below are the indicators that sum up our environmental annual
performance 2012/13 and trend data at a glance.
Medium term goals
Meet our water efficiency targets
We will reduce water consumption by at least one litre per property per day each year by working with our customers to educate and encourage participation in water saving activities and changing behaviours.
Water efficiency performance
Northumbrian Water
Ml/d Water efficiency performance
Essex & Suffolk Water
Ml/d 1.71 1.16 1.22 1.12 1.12 1.12 0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 1.6 1.8 10/11 11/12 12/13 Total assumed savings Target 1.77 1.54 1.3 0.74 0.74 0.74 0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 1.6 1.8 10/11 11/12 12/13 Total assumed savings Target
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Enhance biodiversity on our landholdings
We will ensure that the impact of our operations on the natural environment is positive and will protect the natural habitats on our sites and where appropriate, encourage a wider biodiversity.
Condition of SSSI areas on Northumbrian Water
landholdings
% Condition of SSSI areas on Essex & Suffolk Water landholdings % 08/09 09/10 10/11 11/12 12/13 08/09 09/10 10/11 11/12 12/13 Favourable 6.8 14.3 16.8 16.8 16.8 Favourable 81.3 81.3 85.0 85.0 85.0 Unfavourable recovering 87.3 85.7 83.2 83.2 83.2 Unfavourable recovering 9.5 12.3 12.3 12.3 12.3 Unfavourable no change 0 0 0 0 0 Unfavourable no change 9.2 6.4 2.7 2.7 2.7 Unfavourable declining 5.9 0 0 0 0 Unfavourable declining 0 0 0 0 0 Part destroyed 0 0 0 0 0 Part destroyed 0 0 0 0 0 6.8 14.3 16.8 16.8 16.8 87.3 85.7 83.2 83.2 83.2 5.9 0 10 20 30 40 50 60 70 80 90 100 08/09 09/10 10/11 11/12 12/13 Part destroyed Unfavourable declining Unfavourable no change Unfavourable recovering Favourable 81.3 81.3 85.0 85.0 85.0 9.5 12.3 12.3 12.3 12.3 9.2 6.4 2.7 2.7 2.7 0 10 20 30 40 50 60 70 80 90 100 08/09 09/10 10/11 11/12 12/13 Part destroyed Unfavourable declining Unfavourable no change Unfavourable recovering Favourable
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All sewage treatment works meet their consents
We will retain our leading status and ensure that all sewage works meet their consents by improved knowledge of asset performance and good workforce management, reinforced with careful capital management.
Population equivalent served by sewage treatments works compliant with WRA consent (LUT)
% Sewage treatment works compliant with numerical consents % 100 100 100 100 100 100 100 100 100 100 100 0 10 20 30 40 50 60 70 80 90 100 2008 2009 2010 2011 2012 2013 Performance Target 98.2 99.4 100.0 99.4 100.0 100 100 100 100 100 100 0 10 20 30 40 50 60 70 80 90 100 2008 2009 2010 2011 2012 2013 Performance Target
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Increase energy use from renewable sources
We aim to protect the environment and reduce business costs by producing 20% of the energy we use in the business from renewable sources, such as sludge digestion, hydro electric stations and wind turbines.
Renewable energy use % Northumbrian Water Limited total net energy use
GWh
Renewable energy generated GWh
Note:
Some prior year figures in the above charts are different than those reported previously. The figures have been revisited to properly account for heat energy from renewable sources, which had either not been included in past years or, as was the case for
2011/12, had been reported in a way that was out of step with water industry
convention. Where energy is derived from renewable sources we account for the electricity generated and any heat applied (though not waste heat), quantified in GWh. This convention also applies to any exports.
4.9 9.0 12.8 14.4 19.2 20.0 0 2 4 6 8 10 12 14 16 18 20 08/09 09/10 10/11 11/12 12/13 2020 Renewable energy use Target 0 526.7 610.0 508.4 472.0 486.3 100 200 300 400 500 600 700 08/09 09/10 10/11 11/12 12/13 25.94 54.84 65.21 68.10 93.22 0 10 20 30 40 50 60 70 80 90 100 08/09 09/10 10/11 11/12 12/13
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90% of bathing waters to be at least EU guideline quality (good)
We will ensure that 90% of our bathing waters meet the EU guideline for quality, by monitoring the performance of our sewage treatment works and investing in the sewer network.
From 2015 the revised Bathing Water Directive will mean that every bathing water is classed as either Excellent, Good, Sufficient or Poor. We are aiming for every bathing water to be at least Sufficient by then with 90% or more being classed as Good/Excellent. Visit our website for more information
http://www.nwl.co.uk/your-home/your-services/bathingwaters.aspx
Northumbrian Water has invested millions of pounds to improve the bathing water quality in our region over the past 15 years. In 2011 we were the first water company to have more than 90% percent of our beaches passing the most stringent Guideline measure. This meant that our bathing waters were amongst the cleanest in England and Wales. In comparison, in 1998, there were no bathing waters in our region passing the Guideline standard under the current European bathing water directive.
In 2012 however, the bathing season saw prolonged periods of rainfall with occasional intense downpours that overloaded our sewers and drainage systems. The high water table meant that the ground was already charged for much of the year requiring little more rainfall to trigger repeat flooding events and cause increased polluted run-off from rural and urban areas. Travel in our region was also disrupted on a number of occasions as roads and railways flooded.
All this rain and flooding had an adverse effect on bathing water quality across our region. As a result, North East bathing water quality was the worst since 2000.
Since 2006 all 34 of our region’s designated beaches have consistently passed the
minimum Mandatory standard with the exception of one in 2010 and several more beaches in 2012. Through working in partnership with the Environment Agency and Beach
Managers we are investigating how to reduce pollution further from all sources towards improving bathing water quality.
Bathing waters passing Mandatory Standard
% Bathing water passing Guideline Standard % 100 97 100 85 100 100 100 100 100 100 100 0 10 20 30 40 50 60 70 80 90 100 2009 2010 2011 2012 2013 2014 Mandatory standard pass Target 88 82 91 41 88 90 90 90 90 0 10 20 30 40 50 60 70 80 90 100 2009 2010 2011 2012 2013 2014 Guideline standard pass Target
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Reduce waste and increase recycling
We will continue to develop the use of recycled aggregates in our water and waste water street works operations.
This replaces the previous medium term goal of 100% backfill on street works to be recycled material.
In addition we are reviewing all the different waste streams in the business and will set targets to reduce waste and increase recycling over the course of 2014.
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Reduce leakage
We want to keep leakage as low as possible and meet our agreed targets.
Operational leakage Northumbrian Water
Ml/d Operational leakage Essex & Suffolk Water
Ml/d 149.8 155.7 157.8 129.5 136.0 153.0 153.0 150.0 147.0 145.0 141.0 0 20 40 60 80 100 120 140 160 08/09 09/10 10/11 11/12 12/13 13/14 Measured leakage rate Ofwat Leakage target 66.7 67.4 65.1 59.1 53.9 67.0 66.0 66.0 66.0 66.0 66.0 0 10 20 30 40 50 60 70 08/09 09/10 10/11 11/12 12/13 13/14 Measured leakage rate Ofwat Leakage target
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Reduce our carbon footprint
We will deliver the range of targets stated in our Carbon Management Plan, including reducing our carbon emissions by 35% by 2020.
Total greenhouse gas emissions (GHG)
KtCO2e Operational greenhouse gas
emissions
KgCo2e/Ml
Operational GHG emissions per Ml of sewage treated (water distribution input)
KgCo2e/Ml Operational GHG emissions
per Ml of sewage treated (flow to full treatment)
KgCo2e/Ml
The water industry has been reporting on the emissions intensity of its activities since 2008, using volume as a denominator. The emissions intensity is measured in kgCO2e/ML, and
allows comparisons to be drawn between companies as well as to track trends over time as shown here. The denominator volume for water is that put into supply from our treatment plants; for wastewater the figure was one related to this, reflecting the proportion of the water used in homes returned to the sewer system. Both these figures were routinely reported by companies for other reasons.
Since 2010/11 a second measure has been reported for wastewater. This uses as a denominator the total volume of wastewater arriving at the largest treatment plants. This includes other flows entering the sewer system, including rainwater and indirect surface runoff. In some ways this presents a more accurate reflection of performance, and one more closely related the energy needed in pumping the flows to the treatment plants and in treating it there. This is the first year that we publicly report on this measure
281.7 256.3 248.1 220.2 214.8 0 50 100 150 200 250 300 08/09 09/10 10/11 11/12 12/13 261 269 259 244 218 0 50 100 150 200 250 300 08/09 09/10 10/11 11/12 12/13 834 698 638 542 620 0 100 200 300 400 500 600 700 800 900 08/09 09/10 10/11 11/12 12/13 355 363 271 0 50 100 150 200 250 300 350 400 10/11 11/12 12/13
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Pollution incidents to be no more than 75 per year
We will improve our environmental performance through better management of the sewer network and pumping stations, using monitoring data to spot problems and fix them before a pollution incident occurs.
Pollution incidents Number Pollution incidents by category Number 2008 2009 2010 2011 2012 Category One 2 3 2 1 1 Category Two 3 5 5 10 2 Category Three 89 106 94 85 195 The increase is mainly the result of the new
way we count incidents, based on Environment Agency guidance on self-reporting, which became effective mid-year. A secondary impact was the exceptionally wet weather in 2012.
The change led to a significant increase in incidents reported by the company in the second half of the year, including an increase in self-reporting of incidents from 30% in 2011 to 71% in 2012.
Although there was a case for slackening the serviceability targets for pollution incidents to reflect the change in reporting, we decided to keep the target unchanged to demonstrate our commitment to reducing pollution incidents.
2012 includes four pollution incidents from transferred assets (transferred 1st October 2011).
Category 1 represents a persistent, extensive, major impact on the environment.
Category 2 represents significant damage to the aquatic ecosystem
Category 3 represents minor damage to water quality and ecosystems.
94 114 101 95 198 96 89 102 88 88 0 50 100 150 200 250 2008 2009 2010 2011 2012* Pollution incidents Target
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Environment additional information
Domestic households that are metered
Northumbrian Water Ltd
% Domestic households that are metered
%
Waste water treatment sludge disposal route
Ttds Water treatment sludge disposal route Ttds 30.3 32.1 33.7 35.0 37.4 0 5 10 15 20 25 30 35 40 08/09 09/10 10/11 11/12 12/13 42.7 44.7 48.5 49.0 52.3 20.7 22.5 23.3 25.0 27.0 56.2 58.0 60.1 61.0 62.5 0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0 08/09 09/10 10/11 11/12 12/13 Essex North East Suffolk 6.4 6.2 12.0 13.0 13.9 67.6 62.9 33.2 34.7 21.3 2.0 1.7 0.4 0 10 20 30 40 50 60 70 80 08/09 09/10 10/11 11/12 12/13 Landfill Farmland (conventional) Farmland (advanced) Other 7.8 2.9 0.76 0.76 0.76 11.0 15.4 17.2 16.0 16.8 0 2 4 6 8 10 12 14 16 18 20 08/09 09/10 10/11 11/12 12/13 Beneficial re use or recycled Site Storage
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SUSTAINABILITY
TRENDS
COMMUNITY
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COMMUNITY
Communities are important to us and we want to
build strong relationships with the communities we
serve. We will ensure that corporate responsibility
is embedded in performance management and that
we benchmark ourselves against the best
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Policy
We have a continuing commitment to support projects and organisations within the
geographic areas in which we
work
and to contribute to the long term sustainability
not only of our business, but also of the environment, society and communities we
serve.
Our community activities focus on:
Investment in our communities
Participation in our communities
Educating our communities about their environment
Supporting healthy communities
Supporting developing communities through WaterAid
We provide community support by dedicating expertise, employee time, money and
facilities to projects. Increasingly we are also focussed on building relationships and
developing genuine partnerships to tackle lasting change in communities rather than
simply giving cash grants and sponsorship.
Over many years, we have donated at least 1% of our pre-tax profits (through cash,
employee time and expertise, or use of our facilities) to projects which benefit the
communities we serve.
We reported this publicly as part of BITC’s Per Cent Club standard and, although
this standard ended in October 2007, we have maintained this commitment. The
percentage of pre-tax profit varies depending on the profits of the company.
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MEDIUM TERM GOALS
Our medium term goals are company-wide. By working together to achieve each
goal and constantly improve our performance, we will ultimately achieve our vision
as the national leader.
Community medium term goals
Corporate responsibility embedded in performance management. 50% of people involved in community activity by March 2013. Business in the community Platinum Plus status.
Community support.
Investment in our communities
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at a glance
We report on our sustainability performance across many aspects of our business,
below are a few indicators which sum up our community 2012/13 annual
performance and trend data at a glance.
Medium term goals
Corporate responsibility embedded in performance management
We will ensure that corporate responsibility is part of the recruitment process, highlighted during formal inductions and assessed against a Standard of Performance for specific Key Result Areas for all individuals.
This was formally written into our appraisal system in 2010 and every employee is now biannually assessed against our vision and values.
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50% of people involved in community activity
We will increase participation in voluntary community initiatives, such as ‘Just an hour’, so that at least half of all employees are actively taking part.
Employee participation in ‘Just an hour’
% Time volunteered under ‘Just an hour’
Hours
The reporting period for this measure changed to calendar year in 2012.
The reporting period for this measure changed to calendar year in 2012.
22.8 26.1 27.4 48.0 54.4 0 10 20 30 40 50 60 08/9 09/10 10/11 11/12 2012 6,930 7,890 7,674 15,204 16,246 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000 08/9 09/10 10/11 11/12 2012
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Business in the Community Platinum Plus status
We want to maintain our Platinum Plus status with Business in the Community as independent accreditation of our corporate responsibility practice.
Corporate Responsibility Index score
%
In 2013 BITC changed the way it scores and ranks companies and Platinum Plus was replaced with Platinum Big Tick. The 2013 figure represents our score against the new more rigorous Corporate Responsibility Index.
In June 2013 BITC published its Responsible Business Supplement in the Financial Times confirming that Northumbrian Water Group has achieved the new Platinum Big Tick status. Of the 32 companies that achieved this status we were one of only five to be shortlisted for the national title of Responsible Business of the Year. Companies become eligible for the Platinum status by scoring above 95% or above in the Corporate Responsibility Index. To be recognised as a Big Tick company we participated in a further stage of the CR index process which assesses the connectivity between sustainability and commercial strategy. Companies are asked for evidence that sustainable thinking underpins their commercial decision making and are then challenged and evaluated on the connections between sustainability and commercial strategy.
The Judges praised the value that we have placed on the natural environment and the large scale investment in the development and conservation of the Abberton reservoir which is seen as an invaluable asset to the business and industry.
The Judges were also very impressed by our integrated and long term agenda and saw great value in our 25 year vision.
We were awarded Big Ticks and named overall Employee Volunteering Company of the Year in our two operating regions, East of England, for Essex & Suffolk volunteers and North East of England, for our Northumbrian Water volunteers. Northumbrian Water was also named as North East Responsible Business of the Year, scored platinum in the East of England Environment Index and was named Climate Change Champion.
We also received big tick reaccreditations by demonstrating continuous improvement in the following categories:
Education for Building a better future for Castle View first awarded in 2011 Environmental Leadership first awarded in 2012
Workwell for our Wellbeing in water programme first awarded in 2012
98 98 98 98 95 95 95 95 95 95 90 91 92 93 94 95 96 97 98 99 100 2009 2010 2011 2012 2013 Index score Target
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Community support
We want to be recognised as an important part of the communities in which we operate.
People reached through ‘Water for health’
partnerships
Number Community funds levered through Northumbrian Water Limited contribution
£
The reporting period for this measure changed to calendar year in 2012.
The reporting period for this measure changed to calendar year in 2012.
Community Foundations Grants awarded to community projects
£ Community Foundations Grants awarded to community projects
Number Community Foundations Grants awarded to environmental projects £ Community Foundations Grants awarded to environmental projects Number 64,902 61,370 96,024 103,966 68,131 0 20,000 40,000 60,000 80,000 100,000 120,000 08/9 09/10 10/11 11/12 2012 80,000 200,000 600,000 140,048 127,330 0 100,000 200,000 300,000 400,000 500,000 600,000 700,000 08/9 09/10 10/11 11/12 2012 3,768 3,151 4,322 4,984 4,835 5,702 4,505 4,700 5,220 7,840 11,403 3,695 6,761 5,821 4,886 5,989 4,988 6,730 3,400 4,315 1,000 2,405 2,300 1,500 448 0 5,000 10,000 15,000 20,000 25,000 30,000 08/09 09/10 10/11 11/12 12/13 Abberton Scheme Essex and Suffolk Teeside Durham
Tyne & Wear and Northumberland 11 10 6 9 10 15 7 8 10 10 15 4 8 7 9 9 7 6 6 5 1 2 3 2 1 0 5 10 15 20 25 30 35 40 45 50 55 08/09 09/10 10/11 11/12 12/13 Abberton Scheme Essex and Suffolk Teeside Durham
Tyne & Wear and Northumberland 4,000 3,559 563 1,512 5,000 5,125 6,198 2,004 2,356 5,953 3,096 4,700 5,943 5,147 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 08/09 09/10 10/11 11/12 12/13 Durham Teeside
Tyne & Wear and Northumberland 9 3 1 1 1 6 7 1 1 2 4 5 5 5 0 2 4 6 8 10 12 14 08/09 09/10 10/11 11/12 12/13 Durham Teeside Tyne & Wear and
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'Tap into' bottled tap water donated to community and sporting events by NWL
Number (Thousand)
Organisations given financial and in-kind support
Number
The reporting period for this measure changed to calendar year in 2012.
The reporting period for this measure changed to calendar year in 2012.
129,550 100,000 116,000 143,200 102,160 0 20,000 40,000 60,000 80,000 100,000 120,000 140,000 160,000 08/9 09/10 10/11 11/12 2012 550 700 870 1,408 1,374 0 300 600 900 1,200 1,500 08/9 09/10 10/11 11/12 2012
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Investment in our community
We want to ensure that at least 1% of our pre-tax profit is re-invested in our communities through dedicating expertise, employee time, money and facilities.
Community giving as a percentage of pre-tax profits*
Number Value of community giving* £ (millions)
*includes employee time, cash donations, gifts in kind and use of facilities
The reporting period for this measure changed to calendar year in 2012.
*includes employee time, cash donations, gifts in kind and use of facilities
‘Water for health’ - mains fed water coolers installed under the scheme
Number ‘Water for health’ - funding given to provide free mains fed water coolers to schools and community groups (cumulative)
£ 1.11 1.16 1.11 1.09 1.04 0 0.2 0.4 0.6 0.8 1 1.2 08/9 09/10 10/11 11/12 2012 1.69 1.98 2.00 2.40 2.21 0.0 0.5 1.0 1.5 2.0 2.5 08/09 09/10 10/11 11/12 2012 22 86 62 59 31 0 10 20 30 40 50 60 70 80 90 100 08/9 09/10 10/11 11/12 2012 244,000 306,000 341,854 376,620 394,943 200,000 250,000 300,000 350,000 400,000 450,000 08/9 09/10 10/11 11/12 2012
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Representation on leading national and regional bodies
We will ensure that the company is represented at the right level on appropriate bodies so we are able to make a positive contribution to shared objectives and influence the future agenda.
We are currently undertaking a stakeholder mapping exercise in order to prioritize stakeholder engagement opportunities. Alongside this we are working with our senior managers to support them to take up relevant external positions through our ‘Just an hour’ employee volunteering programme.
Many of our senior managers are represented on leading national and regional bodies, for instance our CEO represents the water industry on the Government’s Green Economy Council discussing how government and industry can work together to support the transition to a green, low carbon economy and minimise the costs for business while maximising the opportunities.
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Additional information
Money raised by WaterAid employee fundraising committee
£ Visitors to Healthworks Number
The Northumbrian WaterAid comittee has raised over £5 million since 1996.
Money raised for charity through the Care for Safety scheme
£ Cash donations to charity by Northumbrian Water Limited
£
Students achieving at least five A*- C overall including English and Math
% Students achieving at least five A*- C % 226,000 167,300 170,000 115,000 152,000 0 50,000 100,000 150,000 200,000 250,000 08/9 09/10 10/11 11/12 2012 10,000 14,232 20,059 27,826 27,500 0 5,000 10,000 15,000 20,000 25,000 30,000 08/9 09/10 10/11 11/12 2012 £52,655 £49,605 £16,400 £28,190 £28,290 0 10,000 20,000 30,000 40,000 50,000 60,000 08/9 09/10 10/11 11/12 2012 134,415 156,517 151,633 155,031 102,246 0 20,000 40,000 60,000 80,000 100,000 120,000 140,000 160,000 08/9 09/10 10/11 11/12 2012 43 54 67 68 26 0 10 20 30 40 50 60 70 80 90 100 2009 2010 2011 2012 2013 Castle View Enterprise Academy Castle View School (closed) 86 94 97 95 63 0 10 20 30 40 50 60 70 80 90 100 2009 2010 2011 2012 2013 Castle View Enterprise Academy Castle View School (closed)
