Biodiversity & nature: Royal London Asset Management, UK Water Utilities Engagement Initiative

We joined an engagement programme led by Royal London Asset Management, targeting 11 UK water companies. The investor group focused on four key pillars to influence companies to meet best practice expectations. We led the engagements with two companies, and the group received responses from nine out of 11 and saw improvements from all nine.

Water companies are addressing various challenges and enhancing services by adopting innovative technologies, such as machine learning, for climate change adaptation, conducting baseline assessments for biodiversity, and collaborating with stakeholders to enhance natural capital. They are implementing social tariffs and financial support initiatives to assist low-income households. Additionally, they are investigating the impact of treatment processes on antimicrobial resistance (AMR) and undertaking pilot projects with academic collaboration to better understand this systemic risk.

We will continue with our engagement with the sector to ensure water companies are held accountable for implementing their business plans and improving disclosure.

At time of publishing, May 2025, Royal London Asset Management is one of our partners on our High Alpha Global Equity & Sterling Corporate Bond portfolios

Photo by Uttam Kumar Roy on Unsplash