Acona verification statement

This is the fourth year that Acona has been retained by the Sustainability Committee of Pennon Group to undertake an independent review of the South West Water Corporate Responsibility Report and provide assurance that:

  • The quantitative data (including those relating to carbon emissions) are materially accurate
  • The qualitative statements can be supported by evidence and properly represent activity across the company
  • The report gives a balanced picture of performance
  • Performance in respect of previously published targets is accurately reported

Responsibilities of South West Water and Acona Partners LLP

The information and statements contained within South West Water's Corporate Responsibility Report for 2011 (hereinafter the Report) are the responsibility of South West Water. This statement is the responsibility of Acona Partners LLP and represents our independent opinion of the content of the report and is addressed to Pennon Group's (South West Water's parent company) Sustainability Committee.

Scope and process

The review covered South West Water's operations for the period specified in the Report. Information subject to verification by other third parties - such as financial data included within the Annual Report and Accounts and other regulated information, including that presented to OFWAT - was outside our scope. However, we have relied on it in forming our conclusions.

In performing our work we adopted the following approach:

  • Desk-top evaluation and detailed analysis of the raw data used to construct the Report, including comparisons with previous years
  • Review of internal and external documents relating to Corporate Responsibility management, including policies, procedures and stakeholder comments, particularly ensuring that evidence was made available to support substantive comments and claims made in this Report
  • Detailed interviews with employees involved in compiling the Report to test the accuracy of the data and underlying processes.

The work was undertaken by a multi-disciplinary team whose members have expertise in the areas of CR assurance and reporting, and of wider aspects of CR both within the water sector and more broadly. Biographical information - including details of individuals' experience and backgrounds - can be found on our website www.acona.co.uk

Opinion

Based on our work we conclude that:

  • The Report correctly identifies the company's material social and environmental impacts and provides a balanced and comprehensive account of its performance in these areas
  • The data, and inferences drawn from them, and substantive statements are materially accurate and are supported by a range of evidence from internal and external sources. Inaccuracies identified during the verification process were of a minor nature, were readily rectified and the report was amended accordingly
  • Data relating to carbon emissions were reported in accordance with the guidelines contained within the UK Water Industry Research's Carbon Accounting in the UK Water Industry (which is consistent with the approach adopted by the WRI Protocol for Greenhouse Gas Emissions)
  • Progress against a wide range of targets was accurately presented.

South West Water's approach to Corporate Responsibility reporting is well-established and closely aligned with the company's wider process of reporting performance and other information to its regulators and various stakeholders. The underlying systems used to capture and collate social and environmental data are robust and subject to regular internal and external scrutiny.

This year's report builds on these strong foundations and provides further information on the company's economic impact - something which is of particular importance given the scale of its contribution to the local economy. Recommendations made in previous years (in relation to how stakeholders' views are reconciled with the company's environmental objectives; including more detailed information on its "Upstream Thinking" initiative; and how it is seeking to influence the performance of its suppliers) have been acted upon. Overall, the report offers stakeholders a clear insight into how Corporate Responsibility and sustainability are integrated into both strategy and day-to-day operations.

Recommendations for future reporting

Our comments on the reporting process and report itself, together with suggested areas for improvement, will be raised in a letter to Pennon Group's Sustainability Committee. Neither the comments nor recommendations contained therein affect our opinion on the Report as set out in this statement. Our main recommendations are provided below.

In future Reports, the company may wish to consider the following areas for inclusion:

  • Further information on the specific - and quantified - benefits that are likely to accrue both to itself and to other stakeholders from its Upstream Thinking initiative.
  • Examples of how the company's collaboration with suppliers has helped to foster innovation that improves environmental and financial performance.
  • How it is using its approach to Corporate Responsibility and sustainability to engage and motivate employees.
Paul Burke

Paul Burke
Senior Partner

20th June 2011

Acona Partners LLP

Acona is an employee-owned consultancy, based in London but with employees all over the UK. We have broad expertise and advise large, mainly corporate, clients on the full range of social, environmental and ethical matters. More information on Acona can be found on our website - www.Acona.co.uk

With the exception of this work, Acona has no commercial relationship with Pennon Group and/or its subsidiaries. The total fees payable in respect of this work accounted for less than 10% of Acona's annual turnover.