Water utility

South East Water

36Laggard

0 followers

www.southeastwater.co.uk

Water-only company supplying 2.3 million customers across Kent, Sussex, Surrey and Hampshire, owned by a consortium managed by Hastings Infrastructure including Utilities Trust of Australia (50%), Desjardins (25%) and NatWest pension fund (25%).

Green Score

36/100
Laggard
Greenwashing risk
medium
Data confidence
medium
Method
how it is calculated
Climate Impact & Solution35%42

Does the core business genuinely avoid or reduce emissions, or build climate resilience? Share of revenue that is actually 'green'. Fossil-dependent models score low.

The company's core business is water supply — inherently energy-intensive and climate-exposed — and while it has invested in leakage reduction, smart metering, flood-protection of 92 sites, and a Power Purchase Agreement covering ~40% of energy needs, it has not yet executed the switch to renewable energy at scale, and Ofwat-verified progress on its own operational GHG trajectory is not publicly quantified in audited form.

Decarbonization & Targets20%32

Credible, science-based targets (SBTi), a real net-zero plan with progress to date, and CDP disclosure — not just a dated press release.

South East Water states a commitment to operational carbon net zero by 2030 and aligns with the UK water industry's sector ambition, and Ofwat's PR24 final determination also requires it to work toward net zero by 2050; however, no SBTi-validated target has been found, no CDP disclosure score is publicly recorded for the UK entity, and the net-zero routemap lacks independently verified annual milestones.

ESG & Operations15%38

Operational footprint, labour and social practices, and governance quality across the company's own operations and supply chain.

Ofwat's 2024 performance report noted South East Water moved from 'lagging behind' to 'average' in service delivery, and PR24 sets stretching targets on leakage (−13%), demand (−8%) and biodiversity; however, the proposed £22.5m fine for supply failures affecting 286,000+ customers between 2020–2023, and a follow-on Ofwat investigation into further outages in late 2025/early 2026, indicate material social and governance deficiencies.

Transparency & Verification15%35

Quality of disclosure, independent third-party verification, and how much hard data backs the company's claims.

South East Water publishes a public performance portal and an annual financial report that references carbon ambitions and a net-zero routemap, but independently verified Scope 1/2 carbon data for the UK entity is not publicly accessible in disaggregated form, no CDP submission has been identified, and Ofwat's PR24 process found the company's business plan initially 'lacking ambition', requiring revision before a quality penalty was removed.

Integrity15%28

Controversies, litigation, pollution, fossil-fuel lobbying, conflict-zone involvement and governance scandals. Higher means cleaner.

Ofwat proposed a £22.46m fine in March 2026 — 8% of turnover, near the maximum permissible — for repeated supply interruptions across 2020–2023 affecting over 286,000 people, finding the company failed to maintain infrastructure resilience and conduct adequate root cause analysis; a second Ofwat investigation was simultaneously opened covering further outages in November–January 2025/26, and the company sought (unsuccessfully) a judicial review injunction to block the fine.

Why it's on ClimateTicker

South East Water (UK) is a monopoly drinking water utility whose climate relevance is primarily defensive — it faces acute physical climate risk from drought and flooding in the water-stressed south-east of England, and has committed to operational net zero by 2030. However, its targets lack SBTi validation, independent third-party carbon verification is thin, and a proposed £22.5m Ofwat fine (March 2026) for repeated supply failures reveals governance and resilience shortfalls that directly undercut its climate-adaptation narrative.

adaptationSouth East Water earns regulated revenue by abstracting, treating and distributing drinking water to approximately 2.3 million customers across Kent, Sussex, Surrey and Hampshire, with prices set by Ofwat every five years under the periodic review (PR24 final determination covers 2025–2030).

Commitments & Certifications

Controversy & Greenwashing Watch

highOfwat £22.5m fine for repeated supply failures (2020–2023)

Ofwat proposed an £22.46m penalty (8% of turnover) in March 2026 after finding South East Water failed to maintain supply resilience, affecting 286,000+ customers; the company challenged the fine via judicial review but the injunction request was rejected.ofwat.gov.uk

highSecond Ofwat investigation: further supply outages late 2025/early 2026

Ofwat launched a new investigation into South East Water's supply interruptions in November–December 2025 and January 2026, examining compliance with its customer-focused licence condition introduced in February 2024.thecanary.co

mediumPR24 business plan rated 'lacking ambition' by Ofwat

Ofwat's quality and ambition assessment initially placed South East Water's PR24 business plan in the 'lacking ambition' category, imposing a QAA penalty that was only removed after the company revised its submission.ofwat.gov.uk

mediumLeakage and performance underperformance payments

South East Water was among companies ordered to make underperformance payments to customers in 2023–24, having moved only from 'lagging' to 'average' in Ofwat's annual sector performance assessment.ofwat.gov.uk

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