Water companies in England have issued £10.5bn in green bonds since 2017, despite a consistently poor record on sewage pollution, according to analysis by Unearthed, part of Greenpeace UK. The bonds, tied to projects offering environmental benefits, account for 19% of all corporate green bond issuance in the UK over that period.
Anglian Water was the biggest issuer at £3.5bn, followed by struggling Thames Water at £3.1bn. The two companies ranked third and sixth respectively among all UK corporate green bond issuers since 2017. Green bonds typically offer cheaper borrowing costs, attracting investors seeking both profit and environmental impact.
James Wallace, chief executive of River Action, described the practice as 'corporate greenwash on steroids'. He said: 'UK water companies are raising billions through green bonds while failing to deliver the environmental improvements these funds are supposed to support.' The Environment Agency recently reported that environmental progress across the sector had declined in the last year.
Thames Water has failed to publish impact reports for its green bonds for two years, contravening industry standards. A spokesperson said the company takes reporting seriously and acknowledged falling short of expectations. Anglian Water defended its use of green bonds, stating the funds helped deliver significant environmental improvements, though it acknowledged more work is needed on pollution.
