We actively engage with stakeholders to understand what matters most to them through strong and constructive relationships.
What matters most to our stakeholders
Our strategic priorities reflect the areas of highest focus for our business and our stakeholders. In order to ensure our disclosures cover all areas of material interest, we regularly refresh our materiality assessment, which ranks material themes based on their potential impact on our ability to create value for the company and for our stakeholders.
Engaging with our stakeholders
We actively engage with stakeholders to build and maintain trust and ensure we create long-term value for all. Strong, constructive relationships help us understand what matters most to them.
Customers
To deliver value for customers, we need to understand their immediate issues, and longer-term expectations of us as their water and wastewater company. As expectations change, we need to evolve our services to ensure we meet them. We actively seek feedback on what customers think about our service so we can make our services better and address the issues that matter to them.
Environment
We depend on the environment and have a key role in protecting and enhancing it. We engage with interested groups such as environmental regulators, non-governmental organisations, campaigners and local communities to find the best ways to tackle environmental issues, such as climate change and land management. Working together is often the best way to find the right solution.
Communities
Our work puts us at the heart of local communities – places where customers and colleagues live and work. We want to support them to be stronger and increase understanding of the impact and contribution our work has. We balance decisions based on often-competing stakeholder interests and look to develop collaborative and partnership solutions where feasible.
Colleagues
We could not deliver our services without our colleagues. They know our business better than anyone, and bring a diverse range of views and experience, making them well placed to help us identify new ways of working and opportunities for improvement, which can be raised directly to the CEO through our ‘Call it Out’ initiative. We have hosted two all-colleague events in Blackpool to share our plans for AMP8.
Suppliers
Good relationships help ensure projects are delivered effectively and efficiently. Awareness of issues in the supply chain means we can address them together and become more resilient. Supplier engagement can also help us identify and realise innovative approaches and solutions. We engaged the supply chain early and have already appointed several contract partners for AMP8.
Investors
It is important that investors have confidence in the organisation and how it is managed. We provide regular updates to debt and equity investors and meet with many top investors to establish two-way dialogue about matters of interest to them. Increasingly, this includes environmental, social and governance (ESG) updates alongside financial and performance data.
Media
The media is influenced by current public interests and, in turn, the media also has the power to influence the public through what it reports. Many people hear about us and our activities from traditional and/or social media, so it is important that coverage is fair, balanced and accurate. This requires effective two-way dialogue, and we continuously engage with local and national media on important issues.
Politicians
Politicians influence the long-term national water strategy and environmental priorities, matters that affect how all businesses operate, and champion issues raised by their constituents. Local government, elected representatives and devolved administrations provide insight into shared ESG and economic issues across the North West.
Regulators
Through proactive, constructive engagement with economic, quality and environmental regulators, we understand requirements and deliver against commitments, aiming to meet, or exceed, the expectations they have of our business. We actively engage in workshops and respond to consultations to contribute towards the policy and regulatory framework.
2024/25 assessment of material themes
We have carried out a thorough review of our material themes and materiality matrix. Striking the right balance between different interests and views is not easy, but our assessment process consolidated feedback based on a balance of views obtained from all of our stakeholders.
Our materiality
assessment process
Define
We reviewed current best practice in materiality reporting. The assessment criteria was confirmed as potential value creation for both the company and stakeholders. Building on our existing matrix, we evolved the matrix design to integrate fully with our strategic priorities. This assessment provides the basis for disclosures included in this report, with more detailed commentary on the most material themes.
Engage
Views were obtained from across all our stakeholder groups. Insight from consultations and data was made available through the engagement processes described on page 26 of our Integrated Annual Report. Key internal subject matter experts and stakeholder relationship managers provided further insight on themes.
Assess
Comments and data were drawn together to form an initial view of the themes. The rationale for theme selection and its significance was reviewed and approved by the executive team. This included potential new themes, removal of themes, and movement of existing themes.
Align
We cross-referenced and aligned identified themes with SASB industry-specific topics and our principal risks and uncertainties. Matrix visuals were then created to easily display the prioritisation of themes.
Material themes matrix
Themes are plotted on the matrix from higher (top right) to lower (bottom left) in terms of their potential to impact company value (horizontal axis) and their potential impact on the value we create for stakeholders, and have been colour-coded according to the key elements of our purpose.
Impact on value created
for stakeholders
Based on a balance of views from those who influence what we do and/or benefit from the value we create.
Potential to impact
company value
Based on the potential effect on our ability to create financial and non-financial value over the short, medium and long term.
Key
Our material themes are aligned to other key ambitions of our purpose – stronger, greener and healthier
Overarching theme
Stronger
Greener
Healthier
Material theme
Overarching
Trust, transparency and legitimacy
Our comprehensive disclosures and integrated reporting approach provide leading levels of transparency throughout our reporting
Resilience
Resilience is a key consideration in our long-term planning, the way we manage our key resources, and the ultimate focus of our risk management approach
Political and regulatory environment
Our external environment, including the political and regulatory environment, is covered on pages 24 to 25 of our integrated annual report
Greener
Top material themes related to climate change are covered across the four pillars in our TCFD disclosures in our integrated annual report
Climate change adaption
Climate change mitigation
Top material themes related to nature are covered across the four pillars in our TNFD disclosures in our integrated annual report
Environmental river water quality and storm overflows
Water resources and leakage
Natural capital and biodiversity
Other material themes related to climate change are covered in the performance section in our integrated annual report
Energy management
Other material themes related to nature are covered in our water cycle, risk management and performance sections in our integrated annual report
Sewage sludge to land
Waste management
Healthier
Top material themes related to customers are covered across the four pillars in our integrated annual report
Customer service and operational performance
Affordability and vulnerability
Drinking water quality
Emerging contaminants
Top material themes related to colleagues are covered across the four pillars in our integrated annual report
Health, safety and wellbeing
Diverse and skilled workforce
Other material themes related to customers are covered in the regulatory environment section in our integrated annual report
Competitive markets
Other material themes related to colleagues are covered in our TNFD governance pillar and performance section in our integrated annual report
Colleague engagement
Human rights
Stronger
Top material themes related to efficiency are covered across the four pillars in our integrated annual report
Financial risk management
Corporate governance and business conduct
Top material themes related to communities are covered across the four pillars in our integrated annual report
Supporting communities
Other material themes related to efficiency are covered in our key resources and performance sections in our integrated annual report
Land management
Innovation
Responsible supply chain
Other material themes related to communities are covered in our economic environment and stakeholder value creation sections in our integrated annual report
North West regional economy
Recreational land and waters
Top material themes related to cyber and data security are covered across the four pillars in our integrated annual report
Cyber and data security