Mitigating climate change

The Climate Change Act 2008 requires the UK to cut greenhouse gas emissions. We have stated our aim to work towards the emission reductions incorporated into the Act in an equitable way, to help ensure the sustainability of the natural environment and our business operations.

We are committed to reducing our contribution to climate change and aim to reduce emissions in accordance with government policy, the Carbon Reduction Commitment Energy Efficiency Scheme and the Climate Change Act 2008. Our voluntary target is to achieve a challenging 20 per cent reduction in emissions (compared to 1990 levels) by the end of the current five-year investment period [1] in 2015 for our scope 1 and scope 2 emissions.[2]

In 2009/10, we continued to manage our emissions through energy and business efficiencies and by increasing the amount of renewable energy we generate. Our five-year business plan sets out how we aim to reduce our emissions, which we will achieve in part through completing a range of carbon mitigation projects. For example, we intend to:

• deliver further ongoing energy efficiencies

• increase our capacity to generate renewable energy, including new Combined Heat and Power (CHP) capacity, CHP enhancement, hydro schemes and wind power

• continue to invest in low carbon operational processes and assets.

Banbury Sewage Treatment Works is one of the sites where we generate renewable energy.

In our 25-year Strategic Direction Statement in 2007, we made a clear commitment to respond to the impacts of climate change (adaptation) and address its causes (mitigation) in a sustainable way. This was integrated into our plans for the 2009 Price Review and is consistent with the Climate Change Act 2008 and our own Climate Change Policy.

Our approach has been supported by Ofwat in its recent publication, 'Climate change – good practice from the 2009 Price Review'.

This stated: “What stood out about Thames Water's approach was that its target had been translated into a set of clear and individually justified business plan proposals to meet that target. The company demonstrated a flexible approach to achieving it and used a range of measures to evidence this.”

The report added that the cases presented in the company's business plan were clear, economic, rationally appraised and generally backed up with good evidence.

“It demonstrated a sensible overall approach to considering emissions in investment planning. It has also shown that it has considered the wide range of options available to a water and sewerage company to set and meet exacting reduction targets as part of its core business”.

Beyond 2015, we anticipate the need for more carbon reductions, which will require further significant investment in carbon mitigation activities.

• ¹We have assumed for planning purposes that grid electricity intensity will decrease in line with the projections in the Government's Low Carbon Transition Plan in order to achieve this goal.

• ²Scope 1 emissions are those direct emissions associated with the operation of our business.
  Scope 2 emissions are the indirect emissions associated with the consumption of grid electricity.