RNS Number : 8309M
Severn Trent PLC
24 September 2021
SEVERN TRENT CAPITAL MARKETS EVENT
Severn Trent is hosting a Capital Markets Event today to provide
more detail about three key areas of differentiation that we
believe will drive outperformance in the years ahead, benefitting
all of our stakeholders:
1. Our sector leading customer ODI performance and how we can
continue to deliver outperformance into AMP8 and beyond.
2. Strong RCV growth, with a particular emphasis on our six Green Recovery schemes.
3. Our approach to Net Zero, and how we will reach our Triple Carbon Pledge target by 2030.
Sector leading customer ODI performance
Our strong ODI performance in the first year of AMP7 resulted in
a sector leading ODI reward of GBP79 million(1) . We have harnessed
the power of ODIs to transform our business for the benefit our
customers and wider stakeholders. We remain confident in the
guidance we provided at our year-end results, of a net reward of at
least GBP40 million(1) for the current year.
Investing for the future
Following the award of Ofwat's Green Recovery scheme, we expect
AMP7 RCV growth in real terms to be over 10%. Our Projects will
support economic recovery in our region and deliver environmental
improvements, through new innovative schemes that could provide a
blueprint for future RCV growth. 85% of the GBP565 million(2)
investment under the Green Recovery Scheme will be added to our
RCV, with the balance taken as AMP7 revenue.
Path to Net Zero
In the two years since we announced our Triple Carbon Pledge of
Net Zero Emissions, 100% Electric Fleet, and 100% of energy from
renewable sources - all by 2030, we have made good progress:
-- We have substantially achieved one of our triple pledges,
with all our electricity now coming from renewable sources.
-- We have put in place extensive monitoring and baselined our
carbon reduction target at 470 ktonnes.
-- We have innovative trials including low emissions processes
currently treating 500,000 litres of water per day while also
creating green fertiliser.
We recently had our plans accredited by the Science Based
Targets initiative and are signatories of the Global Race to Zero
initiative, which is central to COP26. Today we provide more
details on our progress to Net Zero and insight into the projects
that underpin our plan.
We are also publishing two other documents today:
-- Our full TFCD disclosure, which is aligned to our Climate
Change Adaptation Report, Strategic Direction Statement and
Environment Strategy; and
-- Our Caring for our Environment report, which showcases the
role that sustainability can play in providing one of life's
essentials for our customers.
Liv Garfield, Severn Trent Chief Executive, said:
"While the pandemic has quite rightly taken everyone's attention
in recent months, we've always taken the long-term view and have
been clear we wanted to thrive and not just survive during this
difficult time. We've achieved this by being bold; by targeting the
measures that matter most to our customers on our ODIs, by
submitting and winning the sector's most ambitious set of Green
Recovery schemes, and by setting out a very clear and achievable
path to reach Net Zero by 2030. It's this ambition that makes
Severn Trent that little bit special."
1 Customer Outcome Delivery Incentives are quoted pre-tax in
2 In 2017/18 prices.
Stuart Howell, Head of Investor Relations +44 (0) 7703
Jonathan Sibun, Tulchan Communications +44 (0) 20 7353 4200
Cautionary statement regarding forward-looking statements
This document contains statements that are, or may be deemed to
be, 'forward-looking statements' with respect to Severn Trent's
financial condition, results of operations and business and certain
of Severn Trent's plans and objectives with respect to these
Forward-looking statements are sometimes, but not always,
identified by their use of a date in the future or such words as
'anticipates', 'aims', 'due', 'could', 'may', 'will', 'would',
'should', 'expects', 'believes', 'intends', 'plans', 'projects',
'potential', 'reasonably possible', 'targets', 'goal', 'estimates'
or words with a similar meaning, and, in each case, their negative
or other variations or comparable terminology. Any forward-looking
statements in this document are based on Severn Trent's current
expectations and, by their very nature, forward-looking statements
are inherently unpredictable, speculative and involve risk and
uncertainty because they relate to events and depend on
circumstances that may or may not occur in the future.
Forward-looking statements are not guarantees of future
performance and no assurances can be given that the forward-looking
statements in this document will be realised. There are a number of
factors, many of which are beyond Severn Trent's control, that
could cause actual results, performance and developments to differ
materially from those expressed or implied by these forward-looking
statements. These factors include, but are not limited to: the
Principal Risks disclosed in our latest Annual Report and Accounts
(which have not been updated since the date of its publication);
changes in the economies and markets in which the Group operates;
changes in the regulatory and competition frameworks in which the
Group operates; the impact of legal or other proceedings against or
which affect the Group; and changes in interest and exchange
All written or verbal forward-looking statements, made in this
document or made subsequently, which are attributable to Severn
Trent or any other member of the Group or persons acting on their
behalf are expressly qualified in their entirety by the factors
referred to above. This document speaks as at the date of
publication. Save as required by applicable laws and regulations,
Severn Trent does not intend to update any forward-looking
statements and does not undertake any obligation to do so. Past
performance of securities of Severn Trent Plc cannot be relied upon
as a guide to the future performance of securities of Severn Trent
Nothing in this document should be regarded as a profits
This document is not an offer to sell, exchange or transfer any
securities of Severn Trent Plc or any of its subsidiaries and is
not soliciting an offer to purchase, exchange or transfer such
securities in any jurisdiction. Securities may not be offered, sold
or transferred in the United States, absent registration or an
applicable exemption from the registration requirements of the US
Securities Act of 1933 (as amended).
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