Resilient water utility infrastructure
In the climate of the future, heatwaves and droughts may cause water supply challenges. Periods of intense rainfall threatens to cause surface water and sewer flooding to homes and businesses, as well as pollution and sewerage discharges into waterways.
The North West’s water company, United Utilities, has a responsibility to account for the changes in climate and the extremes of weather it will bring to ensure continuity of water supplies and efficient and effective urban drainage.
““Weather is fundamental to how we deliver water and wastewater services so climate change has, and always will, be of strategic and operational importance.””
Water utility infrastructure
United Utilities incorporate climate change in its long term planning, influencing strategy and behaviours across the organisation’s responsibilities and business activity.
The company’s Chief Executive Officer has ultimate responsibility for the group’s preparedness for both adapting to climate change and driving mitigation strategy. The impact of climate change is now specifically considered as part of United Utilities corporate risk framework.
Across 2020-2021 United Utilities used ‘systems thinking’ to develop an enhanced understanding of the sensitivity of the business to climate change.
In their 2021 Annual Report, United Utilities declared it had developed an understanding of the action required to adapt to a changing climate. A summary of current and future corporate action on climate resilience and adaptation is outlined in the table below.
Work is now on-going to understand the cascading impacts of climate change and where multiple weather events in a short time frame can have cumulative impacts.
Summary of action relating to climate resilience and adaptation
Our approach to climate change
Governance - The organisation’s governance around climate risks and opportunities
United Utilities engage in reporting on climate action through the Climate Disclosure Project (CDP). In 2020 CDP climate change rating improved from B to A-, demonstrating leadership-level reporting and disclosure.
Report on climate related risks in board-level risk review.
Creation of a long-term strategy team with a focus on climate adaptation and mitigation.
Plans to mainstream climate related risks and opportunities across all investment decisions, processes and governance.
Risk management - The processes used by the organisation to identify, assess and manage climate-related risk
Work to develop strategic business planning around three 'alternative' scenarios, each one aligned to a specific emissions pathway.
Enhanced analysis of risks arising from the climate change we are already experiencing and the extent to which that might affect operations.
A review of corporate vulnerabilities to climate change and quantification of the impact and time sensitivity.
Future work will formalise climate-related physical and transitional risks into risk management systems.
Embedding identification of climate-related risks and opportunities throughout the organisation as business as usual.
Strategy- the actual and potential impacts of climate-related risks and opportunities of the organisation’s businesses, strategy and financial planning
Work to develop a third climate change adaptation progress report later in 2021, after stakeholder consultation. The report will include a review of climate impacts and how we will adapt.
Updated water resources and flood models to include climate scenario analysis and UKCP18 forecasts.
Development of company-wide scenarios to explore how multiple factors (including climate change) interact to assist thinking about future uncertainty.
Work will be undertaken to Implement climate change resilience plans, including nature based solutions.
Identification and evaluation of climate-related opportunities.
Metrics & targets
The metrics and targets used to assess and manage climate related risks and opportunities
Development of drought plan triggers to improve resilience to periods of prolonged dry weather.
Analysis to understand cascade impacts and our resilience, particularly for multiple extreme weather events occurring in a short time frame.
Specific pledges to restore 1,000 hectares of peatland restoration and 550 hectares of woodland creation by 2030.
Further information
Summary of work on climate change adaptation, including references to adaptation reports: https://www.unitedutilities.com/corporate/responsibility/environment/climate-change/climate-change-adaptation/
Summary of work on climate change adaptation, as outlined in the 2021 Annual Report: https://unitedutilities.annualreport2021.com/our-approach-to-climate-change/
United Utilities strategic report: Our approach to climate change. Task Force on Climate-related Financial Disclosures
