Better Health for All
-10
The company's core services provide clean drinking water and wastewater management, which are fundamental to public health. However, a Cryptosporidium outbreak in Brixham in May 2024 resulted in over 100 confirmed cases of illness.
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The company was also fined £2.2 million in April 2023 for illegal sewage spills over four years
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and has faced criticism for pollution failings for ten consecutive years.
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Despite these issues, pollution incidents halved
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and storm overflow spills dropped nearly 50% by August 2025,
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and bathing water quality remained at 100% for five consecutive years.
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The company claims to have eliminated water poverty, defined as households spending more than 5% of disposable income on water bills,
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during the last regulatory period and extended this pledge to 2030.
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They supported over 150,000 households with affordability schemes,
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offer discounted tariffs of up to 85% off,
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and committed £200 million to customer support.
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Support for customers on the Priority Services Register increased by 250%,
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and the company holds the BSI ISO 22458 Kitemark for Vulnerability and Inclusive Service.
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A new £5 million 'Better Futures' program provides hardship and community funding.
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Transparency is demonstrated through the WaterFit platform, which provides real-time updates on bathing water quality and storm overflow activity,
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with monthly reports published.
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Preventative health measures include 'What not to flush' campaigns,
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water efficiency audits,
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providing water-saving devices,
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educating over 13,250 children on water use,
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and funding community groups promoting physical activities, education, health, and wellbeing.
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During the Covid pandemic in 2021, the company conducted a limited £350k campaign to increase visibility around its Green Recovery initiative.
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Fair Money & Economic Opportunity
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The company demonstrates significant pricing fairness by offering discounted tariffs of up to 85% off for eligible households
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and a Smart Saver Tariff where 90% of participants are expected to see reduced bills.
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It supports 266,000 customers, representing one in seven households, through its Priority Services Register, providing tailored assistance.
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As a utility company, it generates no revenue from high-cost financial products or penalty fees. Through its WaterShare+ scheme, approximately 80,000 customers have become shareholders, providing a direct stake in the business.
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Fair Pay & Worker Respect
30
Pennon Group became an accredited Living Wage Foundation employer in April 2021
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and offers a Share Incentive Plan for qualifying employees
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. The CEO pay ratio was 69:1 for the median employee in 2020/21
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. The Lost Time Injury Frequency Rate (LTIFR) for employees and agency workers was 0.9 in 2019-20
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, with no employee, agency, or contractor fatalities in the past 5 years
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. In 2022, the mean gender pay gap was 8.41%
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, and the ethnicity pay gap was 10.3%
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. The company achieved an 84% participation rate in its annual engagement survey
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, with a Trust Index© score of 68%
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. The group-wide employee turnover rate was 11.35% in 2020/21
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. Temporary employees and contractors constituted 8.28% of the workforce in 2020/21
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Fair Trade & Ethical Sourcing
-30
Pennon Group reported no instances of modern slavery or concerns raised to date for the financial year 2024-2025
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, and also for the period of April 2022 to March 2023
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, supported by policies prohibiting child labour
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and proactive risk assessment through a third-party assurance platform
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. However, while the company states that all suppliers adhere to its Code of Conduct and other policies
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, these policies explicitly do not include several critical ethical provisions, such as freedom of workers to terminate employment, freedom of movement, prohibition of worker-paid recruitment fees, compulsory overtime, confiscation of identification documents, or access to remedy for victims of modern slavery
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. Furthermore, the company identifies a specific high-risk material, PV modules, due to the risk of forced labour in Xinjiang Province, China, for its Pennon Power projects
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, and has implemented a prohibition on procurement from that region for these specific projects
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Honest & Fair Business
10
Pennon Group has reported no fines, penalties, or significant issues related to bribery, corruption, or fraud.
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An ongoing Ofwat investigation into a subsidiary, initiated in June 2022, is an enforcement action with an unknown outcome.
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The company maintains a comprehensive anti-corruption policy with zero tolerance for bribery, corruption, facilitation payments, and kickbacks.
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This policy mandates thorough due diligence and corruption risk assessments for third-party suppliers and contractors, and includes training for employees.
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Outcomes of bribery or corruption allegations are disclosed to external auditors.
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The company also has a comprehensive whistleblowing policy, including a third-party provided "Speak Up" hotline and web portal, which offers legal protection from reprisals.
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All incidents are reported directly to the Audit Committee, and the Board receives annual updates.
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Kind to Animals
0
The provided articles detail Pennon Group's environmental initiatives, including improving the management of over 115 hectares
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, achieving a 30% reduction in water discoloration
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, measurable reductions in phosphates
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, and maintaining 100% bathing water quality for three consecutive years
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. These efforts are stated to enhance habitats for various species and positively impact aquatic life and ecosystems. However, the rubric for 'wildlife_conservation_impact' requires specific quantitative data points such as documented increases in biodiversity metrics, population recovery for key species, or a percentage of revenue invested in conservation, which are not explicitly provided in the articles. For all other KPIs related to animal testing, animal-derived ingredients, or animal agriculture, no specific, concrete data points are provided in the articles to allow for scoring against the rubric's tiers.
No War, No Weapons
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Pennon Group Plc operates primarily in the water and wastewater services sector, focusing on environmental infrastructure and customer services
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. The company maintains a neutral stance regarding military involvement and engagements
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. Its core business is not involved in arms manufacturing, military contracts, or conflict facilitation
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. The company's investments are directed towards renewable energy and customer support, aligning with environmental stewardship and community welfare
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Planet-Friendly Business
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Pennon Group has a history of environmental compliance issues, with 177 cases since 2010
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, including a £24 million fine in 2025
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and a £2.15 million fine in 2023 for water services and pollution violations
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. The company's emissions targets were approved by the Science Based Targets initiative (SBTi) in May 2024
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, committing to reduce Scope 1 and 2 GHG emissions by 68%
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and Scope 3 emissions by 30% by 2032/33 from a 2021/22 base year
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. In 2023/24, 7.5% of the company's energy usage was from renewable generation
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. For its supply chain, 35.23% of suppliers had science-based targets in 2024/25
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. Pennon Group aims for operational net-zero by 2030
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and total net-zero by 2045
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. The company has fully adopted TCFD recommendations, addressing all 11 disclosures
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, and performs climate scenario analysis using IPCC Representative Concentration Pathways and NGFS transition scenarios, including Orderly transition (Net Zero 2050) and Hot house world (Current Policies)
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Respect for Cultures & Communities
20
Pennon Group's 2023 report details initiatives for peatland restoration and tree planting, which contribute to preserving cultural landscapes
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. No incidents disrupting cultural or heritage sites are reported
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Safe & Smart Tech
-40
In May 2023, the water industry regulator Ofwat launched an investigation into South West Water, a subsidiary of Pennon Group, to assess the accuracy of its leakage and per-capita consumption data
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, noting that a breach could result in significant financial penalties
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. South West Water continues to hold ISO27001 accreditation, demonstrating adherence to international standards for information security management
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. Pennon has strengthened its information security framework in response to heightened external cyber threats, aligning with guidance from the National Cyber Security Centre
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. The company is also undertaking a three-year 'Safe Smart Systems' project to create an AI-driven water network
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, with a stated commitment to integrating advanced technology responsibly
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Zero Waste & Sustainable Products
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Pennon Group diverted 99.4% of waste from landfill.
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The company uses materials with high recycled content, including up to 100% recycled steel in reinforcement and piles, and over 80% recycled material in ductile iron pipework.
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Pennon has implemented over 10 waste reduction initiatives, such as re-using construction and demolition waste, designing prefabricated pipework to minimize waste, and promoting off-site builds.
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Viridor, a subsidiary, supports a regenerative circular economy, developing closed-loop solutions for high-quality recycled plastics, and utilizing circular economy models where practicable.
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In 2022, Pennon Group had two serious pollution events, a 75% reduction from eight events.
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Viridor operates 11 educational centres, which received 8,455 visitors and delivered 52 outreach events in the year ending March 2019, running tailored programs on sustainable waste management.
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