The Sustainability Yearbook 2011 6. Sector Insights
Water
SECTOR SPECIFIC CRITERIA ECONOMIC DIMENSION
DRIVING FORCES
– Customer Relationship Management
Water utilities are challenged by an increasing shortage of accessible water re-
– Scorecards / Measurement Systems
sources, deteriorating water quality, infrastructure expansion and mainte-
– Water Operations
nance requirements as well as tightening regulation. Political risks and ad-
ENVIRONMENTAL DIMENSION
equate cost recovery represent another concern. Leading companies perform
– Biodiversity
active resource management, by implementing innovative approaches to wa-
– Climate Strategy
ter sourcing, reducing water losses in transportation and distribution and fos-
– Environmental Policy / Management System
tering demand-side efficiency. Best practices also include the application of in-
– Operational Eco-Efficiency
novative sewage and sludge treatment methods in combination with biogas SOCIAL DIMENSION
production. Quality-wise, substantial benefits can be achieved through ex-
– Access to Water
tended research and partnerships with technology providers in the field of ad-
– Occupational Health & Safety
vanced water treatment focusing on the handling of existing or emerging wa-
– Stakeholder Engagement – Standards for Suppliers
ter pollutants (e.g., endocrine disruptors). The ongoing trend toward liberalization of water utilities increases competition and rewards integrated, costefficient and customer-oriented water management strategies. Consequently, pricing strategies will come under increased scrutiny. Access to water continues to be highly political. A high degree of transparency of water utilities eases political risks, but still calls for effective stakeholder engagement. SUSTAINABILITY LEADERS 2010/2011
SECTOR STATISTICS
As of December 31, 2010
Company SAM Gold Class
Country
United Utilities Group plc*/**
Number of companies in universe
9
Number of companies assessed by SAM in 2010
5
United Kingdom 1)
Sociedad General Aguas de Barcelona SA
Spain
* SAM Sector Leader ** SAM Sector Mover 1) This company is not part of the largest 2,500 companies of the Dow Jones Global Stock Market Index and therefore not eligible for SAM Sector Leader.
Assessed companies to total companies in universe (%)
56
Market capitalization of assessed companies to total market capitalization (%)
69
RESULTS AT SECTOR LEVEL Total Score
0%
25%
50%
75%
100%
I Average Score* I Best Score
Dimension
Average Score*
Best Score
Weighting in Total Score
Economic
60%
73%
47%
Environmental
60%
87%
19%
Social
59%
84%
34%
*Average score of all assessed companies in the sector
105