Investing in people, investing in the planet – how a purpose-led utility company spreads opportunity

PEOPLE AND PLANET ARE TWO SIDES OF THE SAME COIN. INCREASING SOCIAL VALUE FOR COLLEAGUES, CUSTOMERS AND THE COMMUNITIES THEY SERVE WHILE ALSO DELIVERING A STEP CHANGE ON THE ENVIRONMENT IS A GOAL TO WHICH EVERY ORGANISATION SHOULD ASPIRE.

That ethos is particularly important for utility companies who are rooted in the areas they serve and whose fundamental business of environmental infrastructure is so closely connected with its landscape. As the cost of living crisis bites ever more keenly into people’s quality of life as well as their pockets, businesses have an increasingly important part to play in helping them navigate the pressures of higher energy and food costs. Utility companies are on the front line. Many have already put support in place. The businesses best equipped to respond effectively are those who already have a deep sense of purpose embedded in everything they do, taking steps that will help at a time of crisis in the shortterm but which are firmly set within the context of a longer-term strategy, aimed at creating a fairer, more equal society where barriers to opportunity are dismantled.

The Pennon Group is a FTSE 250 listed company and one of the leading businesses in the UK water sector, providing clean water and wastewater services across nine counties in the South West. With 3000 employees, it serves about 3.5 million people and approximately 80,000 business customers across the UK. It’s investing in places and structure so that it can provide a resilient and sustainable service which is so crucial in the journey to Net Zero but also continues to prioritise investment in people and customers so that they reap the rewards too.

The most urgent need now is to support its customers, especially the most vulnerable as cost of living challenges mount, and over 100,000 are already benefiting from one or more of its affordability initiatives. More broadly, it is delivering over £78 million of benefits to customers at a time when it is needed most. That includes a commitment to share the benefits of financial performance with customers through a second issuance of its unique Watershare plus scheme, with £40 million funded so far to give customers the option of a stake as well as a say in their water company, or money off their bill.

Pennon has also recently announced plans to invest in future talent by doubling its apprenticeship and graduate schemes to 2030 and by offering 5000 placements to school children over the same period. That will ensure that local people not only have access to advice and information that will help them choose a job that’s right for them but will also provide skilled employment opportunities that will improve their lives, and the prospects of their communities. That’s in addition to its participation in the Government’s Kickstart scheme - one of the first water companies, and the first in the south west, to sign up - offering 16-24 year olds at risk of long-term unemployment, six-month paid work placements. It has exceeded its original offer of 50 placements and is now offering 56, with many taking up employment at the end of their training and work placements.

Committed to playing its part in the country’s efforts to reach Net Zero, it plans to reduce its operational carbon emissions and hit its own Net Zero target by 2030. Recently, it has gone even further with a Race to Zero commitment to reduce greenhouse gas emission across its entire value chain by 2045.

Adele Barker, Chief People Officer at Pennon Group said: Chair of the Purpose Coalition, Rt Hon Justine Greening said: “As a member of the Purpose Coalition, Pennon is already playing its part in shaping a levelling up agenda that spreads opportunity and is focused on reducing the obstacles that can prevent people from getting on, whether that is because of financial insecurity or a lack of access to positive career destinations. With other leading businesses, universities, NHS Trusts and third sector organisations, it is demonstrating its commitment to developing and sharing new ideas and projects that will inform and inspire others. In areas of the country which often suffer from being left behind, it has shown how a purpose-led organisation can reflect the priorities of the people who live there, delivering valuable opportunities and making a real difference. It can improve social mobility in the region at the same time as helping the country to be ready for Net Zero, a win-win outcome.”