Better Health for All

American Water Works' core business of providing clean, safe drinking water and wastewater services directly contributes to public health, with its entire business devoted to health improvement. Its water quality consistently met or exceeded federal and state standards in 2022

, and the company received 12 awards for optimizing water treatment and distribution systems . This fundamental service means the company's entire operation is focused on disease prevention and health promotion. While the company has incurred approximately $126.9 million in penalties for water pollution violations since 2000 , indicating negative health externalities, it made a substantial investment of $1.98 billion in 2023 for regulatory compliance to meet water quality standards . The company also demonstrates strong risk transparency by publishing Consumer Confidence Reports.

Fair Money & Economic Opportunity

American Water Works is a water utility company. The provided articles detail various initiatives such as affordable water rates and payment assistance options for low-income customers in Indiana

, Illinois , West Virginia , and Maryland . The company also engages in philanthropic activities, including $3.5 million in donations from its Charitable Foundation in 2023 , and grants totaling $32,500 in New Jersey in 2024 and $35,000 in Pennsylvania in 2023 , supporting community development, inclusion, diversity, equity, and aid for low-income families. Additionally, American Water launched a $100,000 scholarship program in 2023 for students from underrepresented groups and promotes supplier diversity, which generated over $846.7 million in economic impact and supported more than 4,342 jobs in 2022 . However, the 'Fair Money & Economic Opportunity' value and its associated KPIs are specifically designed to assess companies involved in lending, insuring, moving, or storing money. As a water utility, American Water Works' core business activities and the initiatives described do not fall within the scope of these financial services-focused KPIs.

Fair Pay & Worker Respect

The company reported an OSHA Recordable Incident Rate (ORIR) of 0.40 in 2024, a decrease from 0.86 in 2023.

However, it experienced one employee fatality in 2024 and another in January 2025. Approximately 46% of the workforce was represented by unions under collective bargaining agreements as of December 31, 2024. A third-party analysis revealed that men and women in the non-union workforce were paid within 1% of each other, and pay parity was achieved for Hispanic and Asian employees compared to their white counterparts. A pay difference slightly above 1% was identified for Black employees. The annualized employee turnover rate was 10.5% in 2024, down from 11.5% in 2023.

Honest & Fair Business

In October 2024, a data breach was discovered, potentially compromising the personal information of millions of customers, which led to a proposed class action lawsuit.

The company incurred a $21,000 fine in 2024 for a water pollution violation. American Water Works has a whistleblower policy that prohibits retaliation for good faith reports and provides a confidential ethics hotline, supported by regular training and annual certification for ethics and compliance programs. The company has a comprehensive, Board-approved Anti-Corruption & Anti-Bribery Policy, effective January 2021, which prohibits bribes and kickbacks, emphasizes compliance, and includes due diligence for third parties. Eight of the nine directors on the Board, representing 88.89%, are independent.

Kind to Animals

American Water Works is a water and wastewater utility. As such, KPIs related to cruelty-free certification, animal testing, animal-derived ingredients, animal agriculture, and related supplier audits or policy engagement are not applicable to its operations, resulting in a score of 0 for these categories. The company does engage in wildlife conservation, including awarding $1 million in grants in 2024 for habitat creation and water quality

, providing a $20,000 grant for Steelhead trout conservation , implementing a Habitat Conservation Plan for the Karner blue butterfly across 86 acres , and constructing wetlands that provide habitat for species like the Black-necked Stilt . However, the 'wildlife_conservation_impact' KPI cannot be assigned a score as the provided evidence does not include the percentage of revenue invested, which is the specific quantitative threshold required by the rubric's tiers.

No War, No Weapons

American Water Works' core business is providing water and wastewater services. The company explicitly states it does not participate in arms production, facilitate weapons manufacturing, or engage in military operations, indicating 0% direct arms revenue.

However, it has engaged in long-term contracts with the U.S. Department of Defense to manage water and wastewater systems on military bases, which are considered minor defense-adjacent services. The company does not actively participate in peacebuilding initiatives; a $15,000 donation was made to support military members and their families, not peacebuilding. The company states it does not produce or supply weapons or military technologies, confirming zero exposure to controversial weapons. Its assets are water and wastewater systems, which are not considered defense-related assets requiring divestment.

Planet-Friendly Business

In 2024, the company's total Scope 1, 2, and 3 greenhouse gas emissions were 1,257,674 tCO2e, which increased by 6.24% from 2023.

Its short- and medium-term emissions goals are science-based and aligned to a 2°C scenario, while its long-term net-zero target for Scope 1 and 2 emissions by 2050 is aligned to a 1.5°C scenario. In 2024, 5.0% of operational energy consumption was sourced from renewables. The company withdrew 1,620,000,000 m³ of water in 2024, with a revenue of $4,684 million, resulting in 345,858 m³ per $1 million revenue. In 2024, the company received 22 Drinking Water Notices of Violation, including 1 Tier 1 (Acute) and 6 Tier 2 (Non-Acute) violations. The company conducts numerous comprehensive planning studies and asset management plans annually. It reports climate-related information in line with TCFD recommendations and uses climate-related scenario analysis, including RCP 2.5, RCP 6.0, and RCP 8.5, to inform its strategy. The company identifies climate-related risks that could lead to asset impairment or obsolescence. In 2024, 3% of freshwater was sourced from regions with high or extremely high baseline water stress. The company's supplier engagement program targets suppliers representing the top ≥50% of sourceable spend, with 54% of sourceable spend represented by suppliers responding to a sustainability survey. Biodiversity considerations are integrated into operations, and the company funds projects to improve and protect watersheds. Approximately 10% of its $36-$37 billion 10-year capital plan is dedicated to increasing the resiliency of assets.

Respect for Cultures & Communities

American Water Works provides a 24/7 Ethics Helpline accessible to external stakeholders, including communities, for reporting concerns.

The company reported no cultural appropriation incidents. Its Intelligent Virtual Assistant (IVA) system offers bilingual support in English and Spanish for customer information and self-service options.

Safe & Smart Tech

A cybersecurity incident occurred on October 3, 2024.

, , affecting 14 million customers with potential exposure of sensitive personal and financial data. The company proactively disconnected systems, and employees acted immediately to limit the breach. , Initial communication was made on October 7, 2024. , with systems reconnected by October 10-11, 2024. , Water and wastewater facilities were not impacted, and the incident did not materially affect the company's financial condition. This incident constitutes an unauthorized data use incident. The company filed an 8-K report with the SEC on October 7, 2024, and publicly disclosed the cyberattack, demonstrating compliance with applicable regulations.

Zero Waste & Sustainable Products

American Water has implemented several waste reduction initiatives. New Jersey American Water introduced a grant program in 2024 to fund water bottle filling stations in public spaces, aiming to reduce single-use plastic waste.

This subsidiary also manages water loss, preventing 6.4 billion gallons of wasted water over five years. Additionally, American Water provided 49 environmental grants totaling $188,000 in 2018 to support community projects, including river cleanups. The grant program for water bottle filling stations also serves to educate customers by promoting sustainable hydration options and encouraging the use of reusable bottles.