4th Mar 2020 08:49
(Alliance News) - Severn Trent PLC on Wednesday said it will invest GBP1.2 billion over the next five years as the UK water utility looks to build a "sustainable long-term future".
The investment will go towards it pledge of going carbon neutral by 2030. By 2030, Severn Trent is also aiming to source all of its energy from renewable sources and have an all-electric fleet.
The FTSE 100 listing is hosting its capital markets day on Wednesday, "focusing on our approach to sustainability and the benefits we can deliver both for the environment and for the wider stakeholders we serve".
Severn Trent added: "We are making a number of ambitious long-term commitments that will enable us to support our purpose of taking care of one of life's essentials. These commitments are integral to the delivery of the customer outcomes agreed in our business plan for the next five years and also in securing a sustainable long-term future for the business we run. As part of our plan we have chosen to invest GBP1.2 billion in delivering our commitments."
The company is committed to reducing leakage, water lost from the distribution system, by 15% by 2025 and by 50% by 2045, it said.
It also aims to pay the national living wage to all who work on its supply chain, including those it does not directly employ.
The UK's national living wage, the minimum wage level payable to adults over the age of 25, will rise by 6.2% to GBP8.72 per hour from GBP8.21 in April 2020.
Severn Trent added that by 2025, it will also look to support 195,000 customers per year who struggle to pay their bills.
Chief Executive Liv Garfield said: "By committing to invest GBP1.2 billion in the next five years we believe we can make a real difference to the environment and people we serve while delivering strong business outcomes at the same time."
Shares in the company were 0.2% lower at 2,598.00 pence each in London on Wednesday morning.
By Eric Cunha; [email protected]
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