River Action says use of issuance tied to environmental benefits is ‘corporate greenwash on steroids’
Water companies have issued a fifth of the UK’s “green bonds” since 2017, despite a consistently poor record of sewage pollution during that time, research has shown.
Privately owned water companies in England have together issued £10.5bn in bonds tied to projects that offer “environmental benefits”, according to analysis of financial market data by Unearthed, which is part of Greenpeace UK.
Anglian Water has been the biggest issuer in the water industry, at £3.5bn, with struggling Thames Water second at £3.1bn. The two companies were the third- and sixth-largest issuers of corporate green bonds overall since 2017.
Issuers of green bonds are expected to use the proceeds for defined purposes such as renewable energy, greenhouse gas control and clean transportation such as electric vehicles. Sustainable water and wastewater management is also included. This means many water companies’ standard operations qualify. In return, companies tend to be able to borrow more cheaply, because they attract investors hoping to benefit the environment while also profiting.
