Task Force on Climate-related Financial Disclosures
Our integrated report, supported by further content on our website, contains all the climate-related disclosures required to be consistent with the all sector guidance on recommendations of TCFD. Our disclosures include how climate-related risks are influencing our strategy, our net zero transition plan incorporating our verified science-based targets (SBTs) and our energy and carbon report.
TCFD – our progress and future focus
Strategy
Governance
Risk management
Metrics and targets
Climate strategy: How climate-related risks and opportunities impact
the organisation’s businesses, strategy and financial planning
Summary
- Twin track approach of adaptation and mitigation to address climate change and manage both physical and transitional risks in a sustainable and resilient way.
- Further developed our strengths in long-term and adaptive planning to manage uncertainties and ensure a low regrets approach.
- Built relationships with key suppliers to reduce environmental impact by sharing best practice and collaborating on how to reduce GHGs and improve resilience.
- Assessed the carbon impact of our DWMP, WRMP and PR24 plan to minimise impact while enhancing environmental and social value and resilience.
Future focus
- Publish more details behind our net zero transition plan.
- Continue to improve our assessment of climate-related risks and opportunities.
- Embed low-carbon and climate-adjustable approaches in our long-term delivery strategies and PR24 business plans.
Governance around climate-related risks and opportunities
Summary
- The board and its committees have oversight and scrutiny of climate change matters, including tracking delivery of our carbon pledges, science-based targets, and review of the climate-related risks.
- Climate-related governance is fully integrated within board and management committee responsibilities, supported by our director-led climate change mitigation steering group and cross business working groups.
- Carbon measures are included within the executive remuneration framework and are key components of the environmental performance metrics.
- Public disclosures are complemented through conversations with investors and participation in climate-related indices and assessments. Leadership ratings in both climate change (A-) and supplier engagement (A) for CDP 2022.
Future focus
- Continued communication and engagement programme with all stakeholder groups.
- Deploy whole-life carbon costing using an internal carbon price aligned to government carbon values.
How we identify, assess and manage climate-related risks and opportunities
Summary
- The company operates a mature risk and resilience framework for the identification, assessment and management of all risks.
- We have both physical and transitional climate risks in our corporate business risk profile, including seven of our most significant event-based risks.
- Climate change is fully integrated across our overall corporate risk management system with climate change identified as both a material issue (see page 30 of the 2023 Annual Report) and one of our most prominent causal themes of event-based risks.
- Our 2021 climate change adaptation report available on our website includes a comprehensive climate change risk assessment of both physical and transition risks and opportunities. The most material of these are presented on page 42 of the 2023 Annual Report and it is clear how these risks are key drivers to our strategies and business planning.
- We published our 2022 Drought Plan.
Future focus
- Produce our PR24 business plan with full integration of carbon reduction and climate resilience priorities.
- Improve our long-term strategic plans for water resources and drainage, integrating advanced climate change analysis to shape our investment and operational approaches in the short, medium and long term.
- Learn more about the profile of risk events, their causes and consequences, and to identify opportunities to improve our capacity and capability.
- Further embed climate change impacts into corporate decision-making tools and processes.
Climate-related metrics and targets used to assess and
manage climate-related risks and opportunities
Summary
- United Utilities was the first UK water company to have targets verified by the SBTi, including for scope 3 emissions. We have now achieved SBT 2 as 100 per cent of our annual electricity purchased is from renewable sources.
- We have made progress on SBT 1 reducing absolute scope 1 and 2 emissions by 3.6 per cent (gross) compared to our baseline year 2019/20 and SBT 3 where 23 per cent of our suppliers of capital goods (by emissions) have set their own science-based target.
- UK Government carbon values (BEIS) are used in our risk assessments and our planning for medium and long-term investments, including PR24.
Future focus
- Continue our collaboration with suppliers so that we can increase the proportion of our scope 3 emissions that are estimated using volume of product purchased rather than spend.
- Attempt to inform national approach to water investment programmes arising from public pressure and the new Environment Act 2021.
- Work to validate our long-term net zero ambition to the new SBTi Net Zero Standard.
Progress against our carbon pledges
Pledge 1
42% reduction of scope 1 & 2 emissions from our 2020 baseline by 2030
Our progress
↓ 3.6%
Confident of meeting pledge
We are making good progress towards our pledge and SBT, having made a year-on-year 1.5 per cent reduction from 2021/22. Progress is not expected to be linear while we have emerging challenges that drive increasing emissions.
2019/20: 138,961 tCO2e baseline
2022/23: 133,930 tCO2e reduction
Pledge 2
100% renewable electricity by 2021
Our progress
100%
Pledge met
Since October 2021 all electricity we use is renewable. Around 25 per cent of our needs are renewably generated directly by us or with partners and the remainder is purchased on a renewable tariff backed with REGO certificates. We are working on plans to increase the energy we can self-supply through new investment in renewable capacity and storage.
Pledge 3
100% green fleet by 2028
Our progress
33 vehicles
Confident of meeting pledge
Our initial focus has been on understanding the travel patterns of our fleet. With this insight we have begun the delivery of the required charging infrastructure, the purchase of an initial 200 electric vehicles and are continuing to explore options for HGVs.
We are also supporting colleagues to switch to electric with a salary sacrifice scheme.
Pledge 4
1,000 hectares of peatland restoration by 2030
Our progress
585ha
Confident of meeting pledge
We have peatland restoration activities across the North West at different stages of maturity including the 2000ha improved through our 2005–15 SCaMP projects. We have 585ha currently under restoration towards meeting this pledge.
Pledge 5
Plant one million trees to create 550 hectares of woodland by 2030
Our progress
37ha
Confident of meeting pledge
Weather and tree disease slowed our planting progress but we have two well established nurseries and plans for more and have identified hundreds of sites for new and ‘replanted’ woodlands.
Pledge 6
Set scope 3 science-based target by 2021
Our progress
SBTs verified July 2021
Pledge met
We have two science-based targets which between them cover all our relevant scope 3 emissions. 29 per cent of our scope 3 emissions are from our construction services partners delivering infrastructure as part of our AMP7 business plan. We are working with our partners to reduce the emissions from building these projects by supporting their own environmental ambitions and encouraging them to set their own science-based targets. 23 per cent of these suppliers (by 2022/23 emissions) have set SBTi verified science-based targets for their organisation and approximately 60 per cent more have either made an SBTi or other public commitment statement to set targets that are science-based.
Pledge 1
42% reduction of scope 1 & 2 emissions from our 2020 baseline by 2030
Our progress
↓ 3.6%
Confident of meeting pledge
We are making good progress towards our pledge and SBT, having made a year-on-year 1.5 per cent reduction from 2021/22. Progress is not expected to be linear while we have emerging challenges that drive increasing emissions.
2019/20: 138,961 tCO2e baseline
2022/23: 133,930 tCO2e reduction
Pledge 2
100% renewable electricity by 2021
Our progress
100%
Pledge met
Since October 2021 all electricity we use is renewable. Around 25 per cent of our needs are renewably generated directly by us or with partners and the remainder is purchased on a renewable tariff backed with REGO certificates. We are working on plans to increase the energy we can self-supply through new investment in renewable capacity and storage.
Pledge 3
100% green fleet by 2028
Our progress
33 vehicles
Confident of meeting pledge
Our initial focus has been on understanding the travel patterns of our fleet. With this insight we have begun the delivery of the required charging infrastructure, the purchase of an initial 200 electric vehicles and are continuing to explore options for HGVs.
We are also supporting colleagues to switch to electric with a salary sacrifice scheme.
Pledge 4
1,000 hectares of peatland restoration by 2030
Our progress
585ha
Confident of meeting pledge
We have peatland restoration activities across the North West at different stages of maturity including the 2000ha improved through our 2005–15 SCaMP projects. We have 585ha currently under restoration towards meeting this pledge.
Pledge 5
Plant one million trees to create 550 hectares of woodland by 2030
Our progress
37ha
Confident of meeting pledge
Weather and tree disease slowed our planting progress but we have two well established nurseries and plans for more and have identified hundreds of sites for new and ‘replanted’ woodlands.
Pledge 6
Set scope 3 science-based target by 2021
Our progress
SBTs verified July 2021
Pledge met
We have two science-based targets which between them cover all our relevant scope 3 emissions. 29 per cent of our scope 3 emissions are from our construction services partners delivering infrastructure as part of our AMP7 business plan. We are working with our partners to reduce the emissions from building these projects by supporting their own environmental ambitions and encouraging them to set their own science-based targets. 23 per cent of these suppliers (by 2022/23 emissions) have set SBTi verified science-based targets for their organisation and approximately 60 per cent more have either made an SBTi or other public commitment statement to set targets that are science-based.
Our TCFD disclosures including our net zero transition plan
Our energy and carbon report – and progress against our pledges