Severn Trent Plc · LSE:SVT
Severn Trent — ESG Presentation (May 2012)
73 slides from Severn Trent's sustainability presentation, May 21, 2012
Slide 1: Making the right choices
Making the right choices Climate change stakeholder workshop 21 May 2012
Slide 2: Making the right choices
Making the right choices Climate change stakeholder workshop Dr Tony Ballance Director, Strategy and Regulation 21 May 2012
Slide 3: Today is part of a programme of consultation
Today is part of a programme of consultation We will use what you tell us today, together with the outcome of customer research, to develop a draft plan. 2011 2012 2013 2014 2015 JAS OND J FM AMJ JAS OND J FM AMJ JAS OND J FM AMJ JAS OND J FM 1. Shaping the 2. Shaping the 3. Balancing 4. Assessment
Slide 4: We will need to make trade-offs between priorities for 2015-20
We will need to make trade-offs between priorities for 2015-20 We cannot take decisions on climate change in isolation from other issues. A guide to help calibrate discussions today: • Each £50m capital we invest £1 change in customer bills • For every £5m operating expenditure spent (per year)
Slide 5: Thank you
Thank you
Slide 6: Introduction from Green Issues Communiqué
Introduction from Green Issues Communiqué The role of GIC • Independent workshop facilitation • Ensuring the comments are noted • Production of the Stakeholder Participation Report Format for the day • Session 1: Reducing our effect on the climate • Session 2: Adapting to a changing climate 6 | Clim
Slide 7: Agenda for the day
Agenda for the day Part 1 Reducing our effect on the climate 10.20 - 10.30 Presentation: Background and current priorities 10.30 - 11.15 Round table workshop: Background and current priorities 11.15 - 11.20 Electronic voting: Current priorities 11.20 - 11.40 Coffee break 11.40 - 11.50 Presentation:
Slide 8: Agenda for the day
Agenda for the day Part 2 Adapting to a changing climate 14.00 - 14.05 GIC introduction 14.05 - 14.15 Presentation: Background and current priorities 14.15 - 15.00 Round table workshop: Background and current priorities 15.00 - 15.05 Electronic voting: Current priorities 15.05 - 15.25 Coffee break 1
Slide 9: Electronic voting
Electronic voting We want ite) know your views
Slide 10: Electronic voting: practice questions
Electronic voting: practice questions QA: Are you awake? 1. Yes 2. No 10 | Climate change workshop 21052012
Slide 11: Electronic voting: practice questions
Electronic voting: practice questions QB: How did you travel to the event? 1. By car 2. By train 3. Walked 4. Taxi 5. Bicycle 11 | Climate change workshop 21052012
Slide 12: Electronic voting: practice questions
Electronic voting: practice questions QC: Who are our stakeholders today? 1. Council officer or elected representative 2. Developer 3. Environmental / conservation group representative 4. Customer 5. Business group representative 6. Domestic customer representative 7. Regulator or national governmen
Slide 13: Electronic voting: practice questions
Electronic voting: practice questions QD: Are you a Severn Trent Water customer? 1. Yes 2. No 3. Rather not say! 13 | Climate change workshop 21052012
Slide 14: Making the right choices: Reducing our effect on the climate
Making the right choices: Reducing our effect on the climate Climate change stakeholder workshop Dr Steve Hill, STW Energy, Climate Change and Carbon Manager 21 May 2012
Slide 15: Session 1: Background and current priorities
Session 1: Background and current priorities
Slide 16: Climate change mitigation – a quick overview
Climate change mitigation – a quick overview • To tackle the causes of climate change, carbon emissions need to reduce. • The water industry is likely to be seriously impacted by climate change so we want to see climate change reduce. • We have no binding carbon target placed upon us by government o
Slide 17: Carbon emissions in context
Carbon emissions in context Annual UK carbon emissions by sector • The UK water sector recognises it contributes to UK emissions. • The water sector is 1% of UK total emissions. • STW can directly affect its part of this. • STW customers can indirectly affect STW emissions e.g. By being water effici
Slide 18: STW annual carbon footprint comes from different sources
STW - our annual carbon footprint (546 kt CO2e in 2011-12) comes from different sources Process Emissions: Methane and Nitrous Oxide from our sewage Waste to land: treatment processes. Emissions from Grid Electricity used by disposing of sludge to Clean Water: Mostly for our land pumping water aroun
Slide 19: Our performance – we have consistently reduced our carbon emissions
Our performance – we have consistently reduced our carbon emissions Our emissions have reduced by 14% (190 kt CO2e) since 2007 800 700 600 500 kt CO2e 400 300 200 100 0 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 Early Reporting Industry-agreed methodology We have
Slide 20: Our performance – electricity is the main source of our emissions
Our performance – electricity is the main source of our emissions Year Gross electricity consumption Other 2006-07 951 GWh 29% 2007-08 921 GWh 2008-09 916 GWh Electricity 2009-10 902 GWh 71% 2010-11 906 GWh 2011-12 891 GWh Electricity consumption accounts for 71% Our gross electricity consumption ha
Slide 21: How we compare with other UK water and sewerage companies
Our performance – how we compare with other UK water and sewerage companies 2010-11 Clean Water emissions (kgCO2e/Ml) 2010-11 Wastewater emissions (kgCO2e/Ml) 500 1,200 400 1,000 300 800 600 200 400 100 200 0 0 We use more electricity than most of the We use less grid electricity treating other comp
Slide 22: Regulated renewable energy – we are leaders in our sector
Regulated renewable energy – we are leaders in our sector Renewable energy generated in the UK water industry Renewable energy generated by Severn Trent 250 250 200 200 GWh (2010-11) 150 150 GWh 100 100 50 50 0 0 2011-12 2010-11 1999/00 2004/05 2009/10 Hydropower Combined Heat and Power In 2011-12 S
Slide 23: We pursue profitable renewable opportunities within and outside the regulated business
We pursue profitable renewable opportunities within and outside of the regulated business. These projects provide financial benefits, increase security of supply and help us mitigate fluctuating energy costs. Regulated business We are investigating the injection of biogas into the gas grid at one of
Slide 24: Our current business plan (2010-2015)
Our current business plan (2010-2015) – we aim: 1. To have no net increase in our operational greenhouse gas emissions between 2010 and 2015. Our main ways of achieving this are to: • Continue our energy efficiency programme. We are investing £14.7m over the five year period to reduce our energy con
Slide 25: Session 1: Current priorities – Discussion questions
Session 1: Current priorities Discussion questions Q1: Before this session, how aware were you of the issue of carbon reduction for Severn Trent Water? Q2: What are your views on our current approach? Q3: Is there anything you think is missing? Q4: From your experience of other companies’ carbon red
Slide 26: Electronic voting
Electronic voting We want ite) know your views
Slide 27: Session 1: Current priorities – Electronic voting
Session 1: Current priorities Electronic voting Q5: To what extent do you agree with this statement? “STW is currently doing enough to reduce its carbon footprint?” 1. Strongly disagree 2. Disagree 3. Neither agree nor disagree 4. Agree 5. Strongly agree 27 | Climate change workshop 21052012 27
Slide 28: Session 1: Current priorities – Electronic voting
Session 1: Current priorities Electronic voting Q6: To what extent do you agree with this statement? “STW is currently doing enough in energy efficiency?” 1. Strongly disagree 2. Disagree 3. Neither agree nor disagree 4. Agree 5. Strongly agree 28 | Climate change workshop 21052012 28
Slide 29: Session 1: Current priorities – Electronic voting
Session 1: Current priorities Electronic voting Q7: To what extent do you agree with this statement? “STW is currently doing enough with renewable energy?” 1. Strongly disagree 2. Disagree 3. Neither agree nor disagree 4. Agree 5. Strongly agree 29 | Climate change workshop 21052012 29
Slide 30: Session 1: Current priorities – Electronic voting
Session 1: Current priorities Electronic voting Q8: From your experience of other companies’ carbon reduction programmes how well do you think STW compares? 1. Extremely poorly 2. Poorly 3. About the same 4. Very well 5. Extremely well 6. Don’t know 30 | Climate change workshop 21052012 30
Slide 31: Session 2: Future priorities
Session 2: Future priorities
Slide 32: Climate change mitigation – recap
Climate change mitigation Let’s recap on what we discussed this morning: • We have been steadily reducing our carbon footprint over the past decade. • Our main ways of doing this have been: • By reducing our gross energy consumption • By increasing our renewable energy generation • You have given us
Slide 33: Future pressures on our ability to reduce emissions
In Making the right choices we identify what in the future will put pressure on our ability to further reduce our emissions • Impact of climate change e.g. during hotter, drier summers we use more energy. • Increased legislation e.g. having to increase phosphorous removal means we use more energy. •
Slide 34: Options for the pace of future emissions reductions
In Making the right choices we identify options for the pace of future emissions reductions, these have different costs and impacts on customer bills • Do nothing – and assume the electricity grid will decarbonise at a sufficient rate. • Self funding projects. • Increase investment. • Increase inves
Slide 35: Options for how we might reduce emissions
In Making the right choices we identify options for how we might reduce emissions • Work collaboratively, e.g. with customers to reduce water demand. • More investment to improve our energy efficiency. • Generating more renewable energy through increasing efficiency at existing sites or investing in
Slide 36: Session 2: Future priorities – Discussion questions
Session 2: Future priorities Discussion questions Q9: What is your view on the pressures we have identified? Q10: What do you think our future approach should be? Q11: Should we be considering other options? Q12: In our current investment period, about a third of our carbon emissions will result fro
Slide 37: Electronic voting
Electronic voting We want ite) know your views
Slide 38: Session 2: Future priorities – Electronic voting
Session 2: Future priorities Electronic voting Q14: Which of the following do you believe STW should adopt towards our carbon footprint? 1. Take no action 2. Hold carbon use steady 3. Invest for a modest reduction 4. Invest more for a significant reduction 5. Don’t know Higher cost Faster emissions
Slide 39: Session 2: Future priorities – Electronic voting
Session 2: Future priorities. Electronic voting Q15: STW could do all or some of the following, but which one would you like us to prioritise? 1. Improving our fuel and energy efficiency 2. Developing more renewable energy 3. Reducing our process emissions 4. Identifying and investing in different,
Slide 40: Session 2: Future priorities – Electronic voting
Session 2: Future priorities. Electronic voting Q16: To what extent do you agree with this statement: “It is STW’s responsibility to encourage its customers to be more carbon efficient in the way they use water” 1. Strongly disagree 2. Disagree 3. Neither agree nor disagree 4. Agree 5. Strongly agre
Slide 41: Thank you
Thank you
Slide 42: Agenda for the afternoon
Agenda for the afternoon Part 2 Adapting to a changing climate 14.00 - 14.05 GIC introduction 14.05 - 14.15 Presentation: Background and current priorities 14.15 - 15.00 Round table workshop: Background and current priorities 15.00 - 15.05 Electronic voting: Current priorities 15.05 - 15.25 Coffee b
Slide 43: Making the right choices: Adapting to a changing climate
Making the right choices: Adapting to a changing climate Climate change stakeholder workshop Dr Mike Keil, Water Services, Climate Change and Resilience Manager 21 May 2012
Slide 44: Session 3: Background and current priorities
Session 3: Background and current priorities
Slide 45: What is climate change adaptation?
What is climate change adaptation? • Climate change adaptation is being able to cope with future weather. • The UK struggles to deal with today’s weather: • April 2012 floods • High flood alerts across England and Wales • Disruption to road and rail • Damage to property • Occurring during a drought.
Slide 46: The global climate is changing
The global climate is changing 46 | Climate change workshop 21052012
Slide 47: The water sector is particularly vulnerable to weather and climate change
The water sector is particularly vulnerable to weather and climate change • Our infrastructure • 47000km of pipes • 91000km of sewers • 126 water treatment works • 1026 sewage treatment works • Water resources (our raw material). • Drainage and sewage (putting treated effluent back into the environm
Slide 48: We have experienced the impacts first hand
We have experienced the impacts first hand • Flooding affecting water supplies • Mythe 2007 • Drought • we last had restrictions in 1995 • Sewer flooding • blockages in extremely dry weather • overwhelmed in very heavy downpours • Pollution events • from both low flows and high flows • Water quality
Slide 49: The impact for us is significant
The impact for us is significant East Midlands: 2080s, medium emissions scenario Summer rainfall and temperature, based on UKCP09 scenarios Wide range of future states Change in rainfall Most likely future states +20% 0 Change in 2 4 6 8 temperature (OC) -20% -40% -60% 2006 2003 Years that we think
Slide 50: Adaptation: finding the right balance
Adaptation: finding the right balance • Don’t do enough: risk of service failure. • Do too much: risk of spending unnecessarily. • Two key issues: • How we find the balance • How fast we do it. • Our current approach to finding the right balance • Use the best available evidence • Understand the ris
Slide 51: Work we are already doing
Work we are already doing • Our climate change risk assessment • Opportunities for collaboration • We are taking action to reduce the risks, including: • Lowest ever leakage • Flood protection of key water and waste water sites • Leaders in water efficiency • Reducing sewer flooding • Building resil
Slide 52: Session 3: Current priorities – Discussion questions
Session 3: Current priorities Discussion questions Q17: Before this session, how aware were you of the challenges climate change presents for Severn Trent Water? Q18: What are your views on our current approach? Q19: Is there anything you think is missing? 52 | Climate change workshop 21052012
Slide 53: Electronic voting
Electronic voting We want ite) know your views
Slide 54: Session 3: Current priorities – Electronic voting
Session 3: Current priorities Electronic voting Q20: How significant do you think the risks of climate change impacts are to the services STW provide? 1. Not significant 2. Significant 3. Very significant 4. Don’t know 54 | Climate change workshop 21052012
Slide 55: Session 3: Current priorities – Electronic voting
Session 3: Current priorities Electronic voting Q21: How would you rate the action STW is taking now to cope with the current weather? 1. Insufficient 2. Sufficient 3. Too much 4. Don’t know 55 | Climate change workshop 21052012
Slide 56: Session 3: Current priorities – Electronic voting
Session 3: Current priorities Electronic voting Q22: How would you rate the action STW is taking now to prepare for future climate impacts? 1. Insufficient 2. Sufficient 3. Too much 4. Don’t know 56 | Climate change workshop 21052012
Slide 57: Session 4: Future priorities
Session 4: Future priorities
Slide 58: Future challenges: we are vulnerable to the impacts of climate change
Future challenges: we are vulnerable to the impacts of climate change and we need to take action | Mythe WTW, 2007 Carsington Water, 2011 58
Slide 59: The future: our adaptation approach
The future: our adaptation approach Risk Autonomous adaptation: Things worth doing without specific adaptation considerations, but deliver adaptation benefits. For example; SUDS, water efficiency Incremental adaptation: Areas where adaptation benefits can be delivered at a small incremental costs. F
Slide 60: Adaptation – doing things in a better way
Options 2015-2020: Adaptation – doing things in a better way There are opportunities to improve what we do (as opposed to simply “climate proofing” exactly what we currently do). Our options include: • A ‘grab it when it’s there’ approach to abstraction from rivers • Make use of heavy rainfall by ca
Slide 61: Options for 2015 – 2020: Our choices
Options for 2015 – 2020: Our choices Timescales: given the uncertainty around when we will experience the impacts of climate change, we have choices regarding how quickly we adapt. • If we adapt quickly we could have protection in place that might not be needed for a while – that money could be spen
Slide 62: Session 4: Future priorities – Discussion questions
Session 4: Future priorities Discussion questions Q23: To what extent you think climate change presents a growing risk to our services in the future? Q24: When planning ahead, how quickly should we take action to reduce the risks posed by long-term changes to our weather? Q25: What approach should w
Slide 63: Electronic voting
Electronic voting We want ite) know your views
Slide 64: Session 4: Future priorities – Electronic voting
Session 4: Future priorities Electronic voting Q27: To what extent do you agree with this statement: “ Climate change presents a growing risk to STW’s services” 1. Strongly disagree 2. Disagree 3. Neither agree nor disagree 4. Agree 5. Strongly agree 64 | Climate change workshop 21052012
Slide 65: Session 4: Future priorities – Electronic voting
Session 4: Future priorities Electronic voting Q28: When planning ahead, how quickly should we take action to reduce the risks posed by long-term changes to our weather? 1. Tackle them all in the short term (the next five years) 2. Tackle them over the short to medium term (now - next 20 years) 3. T
Slide 66: Session 4: Future priorities – Electronic voting
Session 4: Future priorities Electronic voting Q29: How far should we go with our approach to adaptation? Should we: 1. Only do projects that deliver adaptation benefits at no additional cost. 2. Also include projects the deliver some adaptation benefits at a low additional cost. 3. Also include pro
Slide 67: Session 4: Future priorities – Electronic voting
Session 4: Future priorities Electronic voting Q30: If you had to take out an insurance policy against climate change disrupting services, where on this scale would you opt to be? 1 2 3 4 5 Take out lots Don’t of insurance bother with against the insurance risk, but at and carry the cost of a the ri
Slide 68: Session 4: Future priorities – Electronic voting
Session 4: Future priorities Electronic voting Q31: Considering innovation comes with its own risks, to what extent do you agree with this statement? “STW take every opportunity for innovation presented by climate change” 1. Strongly disagree 2. Disagree 3. Neither agree nor disagree 4. Agree 5. Str
Slide 69: Making the right choices
Making the right choices Climate change stakeholder workshop Dr Tony Ballance Director, Strategy and Regulation 21 May 2012
Slide 70: We will use what you tell us to develop a draft plan
We will use what you tell us to develop a draft plan Together with customer research, we will use your feedback to help prioritise what we do in 2015-2020 • We are consulting as we believe what you tell us will help us make a better plan. • But, we will need to balance competing priorities and make
Slide 71: Next steps
Next steps We will feed back to you: • A copy of Green Issues’ report will be available. • Our Water Forum will discuss this report. • We will keep you updated in a newsletter. • When we publish our draft plan in April 2013, we will explain how views have been taken into account, and if not, why not
Slide 72: You can still give us your views in writing
You can still give us your views in writing Making the right choices • Open for written responses until 31 July 2012 • www.severntrent.com/makingthe rightchoices Tell us how we did today • Please complete an evaluation form Keep up to date • By signing up for our newsletter at www.severntrent.com 72
Slide 73: Thank you
Thank you