Corporate Responsibility Report

Corporate

Responsibility

Report

Introduction

“As a water supplier we believe we have a corporate and

social responsibility to our customers, our stakeholders, our

regulators and our employees. It is at the heart of everything

we do from our key strategic goals to the individual actions of

our people.

“We take this responsibility very seriously and firmly believe in

going the extra mile in terms of sustainability, community

support and offering our employees a great place to work.”

Michael Halstead

Chairman

“Corporate social responsibility is not a new concept for

Cambridge Water – it has been at the heart of what we do

for generations.

For example we have introduced a variety of energy saving

measures to reduce our impact on the environment and have

always actively supported the communities we serve, with

projects such as the Cambridge Water Life Funds. We also aim

to empower our employees, through offering them flexibility

and the freedom to lead and take on new challenges.

In nurturing the combined needs of the environment, the

community and our employees, we believe Cambridge Water

is ideally placed to develop a sustainable business that takes

into account both the needs of today and of the future.”

Stephen Kay

Page

Cambridge Water:

Who we are and what we do

2

Key themes at Cambridge Water

3

A sustainable future

4

Water abstraction 5

Reducing carbon emissions 5

Water efficiency 6

Protecting our resources 6

Reducing leakage 6

Metering 6

Engaging with the community 7

Hippos and Hogs 7

Replacement of tap washers 7 Supporting water re-use technologies 7 Supporting organisations that care for the environment 7

At the heart of the community

8

In Celebration of Water 9

Water for events 9

The Cambridge Water Life Funds 10/11 River Mel Restoration Group 10 Communicating with our customers 12

Newsletter 12

Website 12

Customer service 12

PR campaign 12

Education 12

Protecting vulnerable members of society 13

Bogus callers 13

WaterSure 13

Cambridge Water Charitable Trust 13

A great place to work

15

Head office 16

Investor in People 16

Employee development 17

Employee support 17

Cambridge Water supplies high

quality drinking water to a

population of 300,000 and covers

an area of 453 square miles.

This includes Cambridge city and

extends to the surrounding towns

and villages of Ramsey and St Ives in

the north, Gamlingay in the east,

Balsham in the west and Melbourn in

the south.

The company operates in one of the

driest areas of the UK. We have less

rainfall here than in Barcelona.

We also operate in one of the

fastest growing areas with our

population predicted to increase by

50,000 over the next 25 years.

To meet these challenges Cambridge

Water operates a stringently

managed water programme.

This takes into account the needs of

the community and the environment

and ensures we continue to supply

high quality drinking water to

homeowners and businesses for

generations to come.

For more details visit our website at

www.cambridge-water.co.uk

or

contact our customer services team

on

01223 706050

.

Cambridge Water:

Who we are and what we do

“We have less rainfall here

Key themes at Cambridge Water

Caring for the

environment by:

쎲 Adapting to cope with climate change

쎲 Minimising the effect of water abstraction

쎲 Reducing our carbon footprint

쎲 Promoting water efficiency

Working with the

community to:

쎲 Provide sponsorship and support for local projects

쎲 Build a company trusted and respected by the customers it supplies 쎲 Protect vulnerable members of society

Develop a working

environment where

employees:

쎲 Operate successfully as a team

쎲 Are recognised and rewarded for individual achievements

쎲 Are supported in achieving their personal goals

Our number one priority is to ensure a constant supply of high quality drinking water remains available to households and businesses for generations to come.

We must also consider the impact of our actions on the environment, particularly when it comes to abstracting water and reducing our carbon footprint.

In looking to the future, and planning for the next 25 years, we have set ourselves the following priorities:

쎲 To satisfy the demand for water from new and

existing customers, including supplying 50,000 new customers and reducing leakage

쎲 To deliver safe, clean drinking water

쎲 To help our customers use water wisely in the

face of climate change

쎲 To adapt our internal operations to mitigate the

effects of climate change

쎲 To satisfy customers’ expectations

쎲 To finance our vision

A sustainable future

In planning for the future,

Cambridge Water recognises there is

a need to balance human and

environmental requirements for

sustainability to be achieved.

Water abstraction

Cambridge Water works in partnership with Natural England and the Environment Agency to ensure our water abstractions are sustainable.

Together we aim to:

쎲 Tackle water resource and quality problems

affecting Sites of Special Scientific Interest

쎲 Develop schemes and investigations to help

wetland biodiversity

쎲 Develop more sustainable approaches to water

abstraction

Reducing carbon emissions

At Cambridge Water we are committed to reducing our carbon emissions.

We currently source 50 per cent of the energy required for pumping water from renewable resources by purchasing green energy.

We are also committed to reducing our energy use by a further 10 per cent by 2020.

To achieve this we will focus on:

쎲 Obtaining more energy from renewable sources

쎲 Investing in equipment that will assist in pumping

water more efficiently

쎲 Replace lead pipes to avoid the long-term reliance

on chemical water treatment

쎲 Invest in “carbon efficient” water treatment

쎲 Utilise work planning techniques to reduce

vehicle use

쎲 Raise awareness among customers of the carbon

emissions produced by heating water in the home

We are also committed to reducing our

Water efficiency

It is therefore vital that we conserve water supplies for our use now and for generations to come by protecting our existing water resource, ensuring our leakage figures are as low as possible and engaging with our customers to raise awareness of water efficiency.

Protecting our resources

All of the water supplied by the company is derived from groundwater sources and it is our policy to safeguard those to ensure we have adequate water resources to serve our

customers now and in the future.

Reducing leakage

Because all water distribution systems include thousands of kilometres of pipe work they are unavoidably subject to water loss through minor leaks and seepage.

Each year Cambridge Water

refurbishes more than 10km of existing mains and repairs around 200 leaks at people’s homes. Our new water efficiency strategy means we aim to repair any significant leaks within two days of them being reported to us. We also schedule the renewal, refurbishment and relining of old mains before they cause problems.

During 2007/2008 Cambridge Water also installed special district meters, located in villages and

Cambridge city, to assist in the rapid detection of leaks. All this work means Cambridge Water consistently meets the leakage targets set by industry regulator Ofwat.

Metering

It is widely acknowledged that customers with a metered supply use between 10–15 per cent less water than those who are not on a meter, simply because they are more conscious of the water they use. Over 60 per cent of Cambridge Water customers already have a water meter and the company plans to meter 100 per cent of properties over the next 25 years.

We live in one of the driest areas of the

UK. East Anglia’s rainfall is only half the

national average and Cambridge is the

driest part of this region.

Engaging with the community

A significant way that we can increase water efficiency is through engaging with our customers to

educate them about water conservation, in much the same way that we all

know to turn the lights off in an empty room to save energy or

re-use carrier bags to help protect the environment. In 2008 Cambridge Water adopted a campaign

encouraging people to use water wisely. This included a series of articles telling customers how they can save water and, in turn, save money off their water bills. We have also linked up with Save Water Save Money - one of the UK’s largest online retailers of water efficiency products - to offer customers advice on how to save water and a selection of water saving products. Stickers have also been produced and handed out at shows and charity events encouraging people to use water wisely, and there are many more activities planned for the future.

Hippos and Hogs

Cambridge Water supplies hippos or hogs free to all its customers on request. These are simple devices that reduce

the capacity of the toilet therefore using less water per flush.

Replacement of tap

washers

A dripping tap can waste 25 litres of water every day and for those on a water meter this can affect the cost paid for water. In recognition of this Cambridge Water offers to re-washer up to four standard taps for just £20 (£10 for pensioners).

Supporting water re-use technologies

Cambridge Water supports the incorporation of rainwater harvesting and grey-water recycling in major new housing developments.

Cambridge Water contributes regionally and globally to organisations dedicated to protecting water and the environment. The company:

쎲Is a member of the Cambridgeshire and Bedfordshire

Wildlife Trust.

쎲Sponsors the RSPB site at

Fowlmere, where reed beds are being regenerated to provide a safe habitat for water birds.

쎲Part-funds Waterwise, an

independent non-governmental organisation (NGO) committed to reducing water wastage in the UK. Cambridge Water is also part of Waterwise East, which aims to reduce demand for water in the East of England by influencing planners, developers and the public by acting as an authoritative focal point for water efficiency in the region.

쎲Has made discretionary awards to local restoration projects

for World Water Day on March 22.

쎲Subscribes generously, along

with customers and fellow water companies, to the international charity, WaterAid. WaterAid’s aim is to overcome poverty by enabling the world’s poorest people gain access to safe water, sanitation and hygiene education.

Supporting

organisations that care

for the environment

At the heart of

the community

Since our inception more than 150 years ago

Cambridge Water has been at the heart of the

community we serve.

While our primary aim is to supply high quality

drinking water to homes and businesses in and

around the Cambridge area we are also committed

to taking an active role in community issues.

This support ranges from making grants to local

groups, clubs and societies, to educating people

about their water supply and ways they can help to

save water and save money.

In Celebration of Water

Water is a precious commodity and one that is vital to life. In 2007, Cambridge Water launched a new competition celebrating this fact. To date ‘In Celebration of Water’ has included a water-colour and a photographic competition, with prize winners ranging in age from four to 70. The competitions are held in association with the Cambridge News and are open to all members of the community.

Water for events

Cambridge Water welcomes applications from organisations which are hosting charitable events in the Cambridge area and would like water supplied for participants.

The company regularly provides water for Chariots of Fire and Bridge the Gap, both of which take place in Cambridge city centre.

In Celebration

of Water

Announcing ‘In Celebration of Water’, a painting competition in water colours for everyone to enjoy.

Sponsored by Cambridge Water and the Cambridge Evening News.

Deadline for entries: 13 August 2007

A summer opportunity for an Autumn exhibition

For entry form and full details, see overleaf.

Capturing Water 2008

A photographic competition in the Cambridge W ater series, In Celebration of W

ater, held in association with the Cambridge Evening News

.

For amateurs a_{nd professionals} , children and a

dults, a competition to capture, in photographs, images o

f water in and a round East Anglia. Prizes include photographic equipment and a master class with a top East Anglian pho

tographer. Win the opportun

ity to see your work on public display at Michaelhouse in Cambridge.

>>>> See the reverse of this poster for the entry fo rm and full details >>>>

For further information call _{01223 846 955}

hoto Competition 19/5/08 16:32 Page 1 Ms Marion Shave, winner of the 2007 In Celebration of Water competition, with Andrew Hunter, a non-executive director of Cambridge Water.

The Cambridge Water Life Funds

In 2003, Cambridge Water launched the Village Life Fund, which was soon followed by the Cambridge City Life Fund. Ten

grants of £250 each are made available annually for both funds, and applicants are invited to write in

with full-details of a village fundraising project, or a neighbourhood initiative in Cambridge, to be

considered for a grant.

From the outset the Life Funds have been a success. In the villages we have funded

wild-flower meadows and conservation projects, restoration projects ranging from an old

village pump to part of a church floor, activity groups for children, cricket teams, village history brochures and a Keep Our Village Tidy campaign.

In Cambridge city we have supported farm holidays for less privileged school children, a concert for the elderly performed by local students, scouting projects, local drama productions and societies which bring together ethnic groups.

Both funds are conducted in association with the Cambridge News, which generously provides editorial coverage for the winning projects.

River Mel Restoration Group

Although Cambridge Water works to a limited budget we do have a discretionary fund to support local

initiatives for water conservation projects. For example, the River Mel Restoration Group received a grant of £500 from us in support of a community project to restore the River Mel at Meldreth. The grant is being used to install soft revetments, which will be planted with native plants to increase biodiversity.

Are you looking to organise som

ething special in your neighbourhood? Something for your local community to enjoy together?

Would a grant for £250 help? Cambridge W ater, in association with the

Cambridge Evening News

,

has 10 grants to award for special occasions organised by local residents in Cambridge neighbourhoods from March 2007. A street party

, a tea dance, a concert, an outing, a lecture series, a book club, a gardening project.

Why not apply and see if Cambridge W ater can help?

Please call us on 01223 846 955

for an application form.

Closing date for entries is Friday 16th February 2007.

Grants. Bringing Cambridge people together

Ramsey Town Centre Partnership ‘Keep

Ramsey Tidy Campaign’– for printing

posters and the cost of a special paste that will not damage local authority-owned bins.

Swavesey Parish Council– interpretation

boards containing historical facts and information on local wildlife.

Steeple Morden Village Hall– lighting for

wheelchair access.

Hinxton Village Hall– purchase of an

extractor hood for a newly refurbished kitchen in the village hall.

Holywell-cum-Needingworth Parish

Council– printing of leaflets which provide

information on amenities, activities and services in the village.

The Mordens 6th Royston Air Scout

Group– purchase of hiking tents.

Barrington Forget Me Not Club– coach

trip and Christmas lunch for elderly residents of the village.

St Mary’s Church Hall, Horse Ware, Over–

ongoing work to enable the hall to function for community groups.

Ladybird Playgroup, Thriplow – purchase

of bikes, trikes and tractor trailer equipment for preschool children.

The Play Area Users Group,

Whittlesford– cost of producing

a sign, designed by the children, to display park rules.

Village Life Fund grants have been

Communicating with our customers

At Cambridge Water our aim is to operate a company that is trusted and respected by the customers we supply and regular communication is an important part of this process. Cambridge Water proactively communicates with customers through a variety of methods outlined below.

Newsletter

Cambridge Water

has been issuing its Reflections newsletter to customers twice yearly since 2003. Reflections covers important information for customers, such as price changes and company policy, as well as more light-hearted updates on community involvement and competitions.

Website

The Cambridge Water website is designed to give customers and interested parties information about all areas of water supply.

Sections on the site look at news, our work in the community, environmental reports, strategic direction statements and billing information. In 2008, we will be working to further strengthen our website’s position as a central resource for

Customer service

Cambridge Water prides itself on providing the highest levels of customer service whether that is through answering a query on the phone or by letter, providing 24-hour support in times of a crisis, or visiting homes to read meters or repair leaks. We also operate regular focus groups at which we invite members of the public to comment about all aspects of water supply.

PR campaign

For many years Cambridge Water has worked closely with the local media to proactively inform consumers about activities taking place within the company itself and trends within the industry. It also regularly attends events and organises roadshows to take its messages direct to the community.

Education

Our water quality officer makes regular visits to schools, groups or societies to give informative, interesting and entertaining talks about the water supply.

Although the high rainfall in 2007 resulted in a rather dreary summer, it has meant that despite the drier months of November and December, our boreholes were in a healthy position at the start of 2008. A wet January saw winter recharge of the aquifer begin to take effect, with a corresponding rise in groundwater levels. This should stand us in good stead for the remainder of the year

, and we are pleased to say that no water shortages are anticipated.

Drought Plan – preparing for all eventualities Cambridge Water’s Drought Plan complements our Water Resources Management Plan and sets out the short-term operational steps we will take if and when a drought occurs. Although water levels are currently healthy it is important to have the necessary plans in place should the situation change, so that we are able to continue to provide the best possible service to our customers. A consultation period took place in the summer of 2006, when representations were made to the Secretary of State. W e have modified our draft Drought Plan to take these representations into account. We are pleased to announce that the Secretary of State has now agreed to publication of the plan. The final version of our Drought Plan is now available on our website at

www.cambridge-water.co.uk

Leakage reductions

In Celebration of Water

Last year Cambridge Water ran a competition for water-colour painting. Titled‘In Celebration of Water’ the competition was open to budding amateur artists of all ages giving them the opportunity to showcase their skills and the inspiration they received from water in all its forms. In September, the winners were invited to an award ceremony at the Round Church, in Cambridge, where the paintings were exhibited. As part of their prize, the winners were also given the opportunity to attend a masterclass with Michael Chaplin, well known through his Channel 4 series on painting. The winners all thoroughly enjoyed their day-long masterclass.

Lucky winners of the Christmas Hampers

Just before Christmas, three lucky winners were drawn at random from amongst Cambridge Water’s direct debit customers and were presented with Christmas hampers from Waitrose worth £150 each. One of the winners, Mr Ted Aldous, can be seen here receiving his hamper from Pauline Wilson, Customer Services Manager at Cambridge Water.

Our Water Resources Management Plan, mentioned in the last newsletter, is now close to completion. This is a long-term plan, designed to show how Cambridge Water will match supply with demand over the next 25 years. It is particularly important with so many new houses planned for the mbridge area in the coming years. It is vital that Cambridge ater is able to anticipate continued and new demand for ater so that we can manage our r

esources to meet the needs f our customers. he Environment Agency ensures that all water companies in England nd Wales submit a 25-year Water Resources Management Plan to show ow they intend to provide sufficient water and protect the environment in coming years. W

ater companies review and improve their plans annually and report on progress, or changes. W

e are now preparing for a new cycle of these statutory plans, which will be published finally in 2009 and will cover 2010 to 2035. The draft plan goes to the Secretary of State in March and we expect to publish it on our website soon afterwards. There is then a 12-week consultation period, when representations may be made to the Secretary of State. The consultation process is open to all individuals and organisations, and we do encourage you to take part. Please visit

www.cambridge-water.co.ukfor more information. Printed copies of the draft plan are also available by calling

01223 70 60 50.

Ramsey Town Centre Partnership– Keep Ramsey Tidy Campaign. For printing posters and the cost of a special paste that will not damage the local-authority-owned bins. Swavesey Parish Council – Interpretation boards, containing information on local wildlife and history. Steeple Morden Village Hall– Lighting for wheelchair access. Hinxton Village Hall– Purchase of an extractor hood for a newly refurbished kitchen in the village hall Hollywell-cum-Needingworth Council

– Printing of information leaflets regarding amenities, activities and services in the village The Mordens 6th Royston Air Scout Gr

oup – Purchase of two or three hiking tents. Barrington Forget Me Not Club – Coach trip and Christmas lunch for elderly residents in the village St Mary’s Church Hall, Horse Ware, Over– Ongoing work to enable the hall to function for community groups. Ladybird Playgroup, Thriplow – Purchase of bikes, trikes and tractor-trailer equipment for pre school children; to improve outdoor facilities. The ‘Play Area Users Group’, Whittlesford– A sign to be made displaying park rules; designed by the children. We are delighted to publish the names of the local groups and projects that have now each received awards of £250 towards ventures within village communities.

In November last year, representatives of the winning projects collected their cheques over afternoon tea at Cambridge Water’s headquarters at Fulbourn Road. The event was also attended by the award judges: Chris Elliott, chief reporter for the Cambridge Evening News and Stephen Kay

, Managing Director of Cambridge Water.

The award winning projects were: ater Resources

anagement Plan

ave your say

Water levels healthy for 2008

To help us find leaks quicker we are investing over £1 million to install meters at key points in the mains network to give early warning of increased flow that may be caused by leaks. The project has now reached Cambridge where construction work isvisible on many street corners. The last 10

years has seen a steady reduction in leakage per connected property (see graph) and the district meters we are installing coupled with faster targeted renewal of the network will help maintain this progress. Even with the most up-to- date equipment we cannot spot every leak and encourage customers to call us free on 0800 316 76 76

if they spot a leak. We always aim to act as quickly as possible to repair leaks. Large bursts are our first priority while other

less severe leaks will be fixed in order of their size and accessibility

.

Watch your flush!

Q. Water is constantly running into my toilet pan, is this right?

A. Modern toilets are increasingly being fitted with an internal overflow arrangement. This replaces the traditional pipe that used to go outside of the property. If you see water constantly running into your WC bowl then this could indicate that your WC has not been fitted correctly or has developed a fault. Leaving any overflow running not only wastes water but could also increase your water bill if you are on a water meter

. We would recommend seeking the advice of a registered plumber

.

Ms Marion Shave, overall winner of the competition, with Andrew Hunter, a non-executive director of Cambridge Water.

Strategic Direction Statement delivered As you will have read on page 1 or heard on the radio or via the press, Cambridge Water has now delivered its 25-year Strategic Direction Statement to Ofwat, the water regulator

.

Our statement describes how we plan to meet all of the issues we face in the longer term to ensure we all have a sustainable future. The Strategic Direction Statement is available on our website at www.cambridge-water.co.ukor by calling 01223 70 60 50.

Cambridge W ater is currently on track with its programme of leakage r

Cambridge Water makes every effort to ensure its more vulnerable customers receive support where appropriate.

Bogus callers

Distraction burglary can be a distressing crime – especially as most victims are elderly or vulnerable members of society.

More than half of bogus caller crimes committed in the UK are carried out by criminals pretending to be from the “water board.”

To help raise awareness of the situation in our region Cambridge Water works closely with a number of organisations including Age Concern, Trading Standards, Cambridgeshire Constabulary and local councils.

One project headed up by Cambridge Water involved working with local children to make cards carrying messages about bogus callers. These were then distributed to elderly or vulnerable friends, relatives or neighbours. The best of the cards were subsequently made into a calendar by Cambridge Water and distributed to people considered to be most at risk.

Bogus caller posters were also designed

and distributed among sheltered housing sites and other central locations. Cambridge Water also operates a password protection scheme, whereby members of the public can register a password for use by water officials needing to gain access to a property.

WaterSure

Cambridge Water has had a programme in place for many years to assist vulnerable customers.

The scheme, known as WaterSure, works by putting a limit on charges for water and sewerage services for people on low incomes who need to use significantly more water than the average household – either for medical reasons or because they have a large family.

Cambridge Water Charitable

Trust

Cambridge Water has a trust fund that makes annual payments to Central Aid, a local charity in Cambridge, which assists customers in debt.

Protecting vulnerable members of society

Low income and on a water meter?

WaterSure

For more details and how to apply please call our Customer Service Team on 01223 70 60 50

Monday to Friday 8.30am to 5.00pm www.cambridge-w ater.co.uk

Cambridge Water can help

by putting a limit on your

charges for water and

sewerage services, as long as

you meet certain conditions

:

You have a water meter The water bill payer receives benefit or tax credit There are either: a.three or more children under the age of 19 living in the household for whom the person receiving benefit also claims Child Benefit; OR b.You or someone living in your household has a medical condition that means they use a lot of extra water

As an ambitious, innovative and well-established

local employer, Cambridge Water aims to bring out

the best in its employees.

We employ around 100 people across a diverse

range of occupations – ranging from water

technicians and engineers to IT specialists,

accountants and customer service representatives.

What binds us all together is commitment to our

customers and sense of shared responsibility.

Whether supplying the highest quality drinking

water at the lowest cost or delivering our

associated products and services, we strive to be

efficient, effective and focused on the needs of our

customers. We also like to enjoy what we do and

have some fun!

Head office

Cambridge Water moved to new headquarters in Fulbourn Road, Cambridge in April 2005. Originally a 1930s water pumping station, developers transformed the existing building into a new environmentally friendly head office.

They conserved the original front elevation behind a full-height glazed exterior and sourced sustainable materials, many of which can be recycled again should the need arise.

Energy consumption was also minimised by controlling heat reclamation and water cooling, ensuring a comfortable internal environment and keeping down the long-term running costs of the building.

The head office has also been designed to provide employees with a positive and pleasant working environment. Natural light has been utilised as much as possible in the building, which includes a south-facing roof terrace and a ground floor glazed dining area.

Its striking design is now considered to be one of Cambridge’s landmark buildings – praised for its architecture, use of light, and for its environmental credentials.

It was shortlisted for a number of high profile awards and in 2007 received the David Urwin Award for a building being agreeable and sympathetic to its occupants.

Investor in People

In 2007 Cambridge Water was proud to receive full recognition under the Investor in People standard. The standard recognises that people are an organisation's greatest asset, and that for it to succeed everyone has to perform well. To achieve this, people need the right knowledge, skills and motivation to work efficiently.

In achieving the standard Cambridge Water adopted the Investor in People framework – helping us to improve performance and realise objectives through the effective management and development of our employees.

Employee development

As part of our company vision we are committed to investing in the future development of each of our employees. Specifically we want to ensure every employee:

쎲Knows and understands the objectives of the

company and communicates them positively.

쎲Knows how their performance contributes

to the fulfilment of those objectives, what

performance is required and that their contribution is valued.

쎲Has a personal development plan tailored

to their needs and those of the company.

쎲Is rewarded for their achievements.

At Cambridge Water we accomplish this with a regular system of appraisals at which line managers work with employees to establish personal

development plans, identify training needs and offer rewards via bonus schemes and pay reviews. Outside of this formal structure the company also organises a number of social and sporting events for employees ranging from visits to the Christmas pantomime to football matches, ten-pin bowling and an annual family cricket day.

Employee support

Many of our employees choose to take part in events to raise money for charity. Where possible Cambridge Water actively supports these activities and will often match any sponsorship money raised. Recent fundraising initiatives our employees have taken part in include the British Heart Foundation Bike Ride, Chariots of Fire, the Pink Ribbon Walk and Run and the Three Peaks Challenge.

Cambridge Water employees dress up to raise money for WaterAid

Cambridge Water Company 90 Fulbourn Road

Cambridge, CB1 9JN