TIDMSVT

RNS Number : 8309M

Severn Trent PLC

24 September 2021

LEI: 213800RPBXRETY4A4C59

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 2017/18 prices.

2 In 2017/18 prices.

Enquiries

Stuart Howell, Head of Investor Relations +44 (0) 7703 718361

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 items.

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 rates.

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 Plc.

Nothing in this document should be regarded as a profits forecast.

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).

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.

END

MSCLJMPTMTTTBIB

(END) Dow Jones Newswires

September 24, 2021 02:00 ET (06:00 GMT)

Severn Trent (LSE:SVT)
Historical Stock Chart
From Apr 2022 to May 2022 Click Here for more Severn Trent Charts.
Severn Trent (LSE:SVT)
Historical Stock Chart
From May 2021 to May 2022 Click Here for more Severn Trent Charts.