Essential Utilities 2023

WHEREAS: A 2017 study[1] indicated that costs associated with chemical exposures worldwide likely exceed 10 percent of global GDP, or 11 trillion dollars. A growing body of literature links chemical exposure to many human health problems, from cancer, to developmental disabilities, to reproductive harm.

Poly and perfluoroalkyl substances (PFAS) are a class of chemicals that has been under particular scrutiny in recent years. After significant controversy and classaction lawsuits, two PFAS chemicals have been phased out of production (PFOA and PFOS,) but remain in the environment. Many other chemicals in the same class remain in use today. PFAS exposure has been linked to hormone disruption, liver and kidney disease, cancer, and other human health harms.

According to the EPA, “Certain technologies have been found to remove PFAS from drinking water, especially Perfluorooctanoic acid (PFOA) and Perfluorooctanesulfonic acid (PFOS), which are the most studied of these chemicals.” [2]

Toxic chemical impacts present systemic portfolio risks to investors. With the EPA poised to announce a PFAS National Drinking Regulation[3], Essential/Aqua must position itself to achieve levels compliant with EPA regulations, should they be lower than the company currently requires.

In Horsham, PA, the municipal Water and Sewer Authority has aggressively worked to mitigate high concentrations of PFAS and other toxic chemicals emanating from two military bases in the area. Through extensive treatment programs, the have achieved non-detectible levels of PFAS chemicals in most wells.[4]

“Current peer-reviewed scientific studies have shown that exposure to certain levels of PFAS may lead to:

• Reproductive effects such as decreased fertility or increased high blood pressure in pregnant women.

• Developmental effects or delays in children, including low birth weight, accelerated puberty, bone variations, or behavioral changes.

• Increased risk of some cancers, including prostate, kidney, and testicular cancers.

• Reduced ability of the body’s immune system to fight infections, including reduced vaccine response.

• Interference with the body’s natural hormones.

• Increased cholesterol levels and/or risk of obesity.” [5]

BE IT RESOLVED: Shareholders request that Essential Utilities, at reasonable cost and omitting proprietary information, report to shareholders on PFAS levels at all Essential water sources along with the potential public health and/or environmental impacts of toxic materials in the water it provides to the public.

SUPPORTING STATEMENT: In the report, shareholders seek information, at board and management discretion regarding:

• existing chemical management practices;

• any metrics by which chemical risk is currently being, or will be, measured and disclosed;

[1] Calculation of the disease burden associated with environmental chemical exposures: application of toxicological information in health economic estimation | Environmental Health | Full Text (biomedcentral.com)

[2] Reducing PFAS in Drinking Water with Treatment Technologies | US EPA

[3] 2022-18657.pdf (govinfo.gov)

[4] HWSA Public Water Supply PFAS Test Results | Horsham Water and Sewer Authority (horshamwater-sewer.com)

[5] Our Current Understanding of the Human Health and Environmental Risks of PFAS | US EPA