Research indicates that water companies in the UK have issued approximately 20% of the nation’s green bonds since 2017, despite facing ongoing criticism regarding sewage pollution during the same period. Analysis conducted by Unearthed, a project affiliated with Greenpeace UK, reveals that privately owned water companies in England have raised £10.5 billion through these bonds, which are linked to projects that claim to provide environmental benefits.
Anglian Water has emerged as the largest issuer within the sector, accounting for £3.5 billion, followed closely by Thames Water at £3.1 billion. Together, these companies rank as the third and sixth largest corporate green bond issuers since 2017. Green bonds are designed to finance projects in areas such as renewable energy, greenhouse gas reduction, and sustainable water management, thereby allowing water companies to utilize funds for routine operations and attract investors interested in environmental sustainability.
Despite this financial support, the privatized water industry in England and Wales continues to receive substantial backlash for its environmental performance, attributed to alleged underinvestment and substantial dividends paid to shareholders. The UK’s Environment Agency recently reported a decline in environmental progress within the water sector over the past year.
Thames Water has requested leniency on environmental regulations for up to 15 years as part of a rescue strategy amid its financial struggles. Furthermore, it has not published impact reports related to its green bonds for the past two years, a move that, while not legally mandated, deviates from industry standards.
Both Anglian Water and Thames Water emphasize their commitment to enhancing environmental performance, noting that substantial investments are necessary for infrastructure improvements. While Anglian Water acknowledged ongoing pollution issues, it asserted that improvements in other environmental metrics should also be recognized. Water UK, the industry’s lobby group, did not provide comments regarding these developments.
Source: https://www.theguardian.com/business/2025/nov/30/england-water-companies-issued-105bn-in-green-bonds-despite-pollution-record