What matters most to our stakeholders
We continuously challenge ourselves to make sure we understand what matters most regarding our role in society, the impact that we have and the value we create.
Our materiality assessment process
1.
Define
We reviewed current best practice in materiality reporting. The assessment criteria for stakeholder interest and our ability to create value was confirmed. Building on our existing matrix we brought in more stakeholder views and evolved the matrix design. We committed to provide more detailed commentary on the most material issues.
2.
Engage
Views were obtained from across all our stakeholder groups. Insight from consultations and data was made available through the engagement processes described on pages 56 to 57 of the 2023 integrated annual report. Key internal subject matter experts and stakeholder relationship managers provided further insight on issues.
3.
Assess
Comments and data were drawn together to form an initial view of the issues. The rationale for issue selection and its significance was presented to senior management for discussion. This included potential new issues, removal of issues and movement of existing issues.
4.
Align
We cross-referenced and aligned identified issues with our principal risks and uncertainties, as set out on pages 64 to 65 of the integrated annual report. Matrix visuals were then created to easily communicate the prioritisation of issues. For the first time an indication of how issues have moved since the previous review has been included.
Our materiality assessment process
1.
Define
We reviewed current best practice in materiality reporting. The assessment criteria for stakeholder interest and our ability to create value was confirmed. Building on our existing matrix we brought in more stakeholder views and evolved the matrix design. We committed to provide more detailed commentary on the most material issues.
2.
Engage
Views were obtained from across all our stakeholder groups. Insight from consultations and data was made available through the engagement processes described on pages 56 to 57 of the 2023 integrated annual report. Key internal subject matter experts and stakeholder relationship managers provided further insight on issues.
3.
Assess
Comments and data were drawn together to form an initial view of the issues. The rationale for issue selection and its significance was presented to senior management for discussion. This included potential new issues, removal of issues and movement of existing issues.
4.
Align
We cross-referenced and aligned identified issues with our principal risks and uncertainties, as set out on pages 64 to 65 of the integrated annual report. Matrix visuals were then created to easily communicate the prioritisation of issues. For the first time an indication of how issues have moved since the previous review has been included.
Our materiality matrix
Key
- Movement based on significance
Engaging with our stakeholders
We actively engage with stakeholders to understand what matters most to them through strong and constructive relationships.
Colleagues
Our colleagues are the face of the company and we could not deliver our services without them, so maintaining productive relationships built on trust is vital to delivering our purpose. Colleagues know our business better than anyone, with a diverse range of views and experience, making them well placed to help us identify new ways of working and opportunities for improvement.
How we engage
- Annual opinion survey enabling confidential feedback
- Regular manager one-to-one meetings providing two-way engagement
- Colleague Voice panel providing a link to the board
- Monthly trade union forums
Top three material issues
- Colleague engagement
- Diverse and skilled workforce
- Health, safety and wellbeing
Communities
Our work puts us at the heart of local communities, places where customers and colleagues live and work. We want to support them to be stronger and increase understanding of the impact and contribution our work has on everyday life. We balance decisions based on often competing stakeholder interests and look to develop collaborative and partnership solutions where feasible.
How we engage
- Face-to-face meetings with local and parish councils to discuss projects
- Online portals for large capital projects to get the views of communities where we are working
- Facilitated workshops with partners to scope out solutions
- Public events across the region to promote sustainable uses
Top three material issues
- Land management, access and recreation
- Supporting communities
- Trust, transparency and legitimacy
Customers
To deliver value for customers, we need to understand their short-term issues, and longer-term expectations of us as their water company. As expectations change, we need to evolve our services to ensure we meet them. We actively seek feedback on what customers think about us so we can make our services better and address the issues that matter.
How we engage
- Contacts through our operational call centre and social media channels
- Visits to customer properties to resolve issues. Direct customer research on our service provision
- Face-to-face engagement with groups representing vulnerable customers, such as MIND
Top three material issues
- Drinking water quality
- Customer service and operational performance
- Affordability and vulnerability
Environment
We depend on the environment and have a key role in protecting and enhancing it across the North West. We engage with interested groups such as environmental regulators, non-governmental organisations, campaigners and local communities to find the best ways to tackle environmental issues, like climate change and land management. Working together is often the best way to find the right solution.
How we engage
- Meetings with national and regional environmental regulators, such as the Environment Agency
- Customer research to shape our investment plans
- Events such as our Environmental AGM
- Partnerships where we have common interests
Top three material issues
- Storm overflows
- Climate change
- Water resources and leakage
Investors
It is important that investors have confidence in the organisation and how it is managed. We provide regular updates to debt and equity investors and meet with many top investors to establish two-way dialogue about matters of interest to them. Increasingly, this includes environmental, social and governance (ESG) updates alongside financial and performance data.
How we engage
- Capital market days and investor roadshows
- Annual general meeting open to all shareholders
- Direct dialogue with relationship banks and credit agencies
- Participation in investor-led ESG ratings and indices
Top three material issues
- Customer service and operational performance
- Financial risk management
- Corporate governance and business conduct
Suppliers
We rely on suppliers to deliver our services. Good relationships help ensure projects are delivered on time, to good quality, at efficient costs. Awareness of issues in the supply chain means we can address them together and become more resilient. Supplier engagement can also help us identify and realise innovative approaches and solutions.
How we engage
- Directly through supplier relationship management process and United Supply Chain (USC)
- Setting challenges through our Innovation Lab
- Supplier databases such as Achilles, to assess market opportunities
Top three material issues
- Trust, transparency and legitimacy
- North West regional economy
- Responsible supply chain
Media
The media is influenced by stakeholders’ interests, and in turn influences them through what it reports. Many people receive their information about us and our activities from traditional and/or social media, so it is important that coverage is fair, balanced and accurate. This requires effective two-way dialogue between the company and the media, and we provide media training to key senior managers to facilitate this.
How we engage
- 24/7 press office available to respond to media requests and publish content for direct media use
- Dedicated social media team covering multiple channels
- Active media and social monitoring focused on the company and sector
Top three material issues
- Storm overflows
- Customer service and operational performance
- Trust, transparency and legitimacy
Politicians
Politicians influence the long-term national water strategy and environmental priorities, matters that affect how all businesses operate, and champion issues raised by their constituents. Local government, elected representatives and devolved administrations provide insight into shared social, environmental, economic and governance issues across the North West.
How we engage
- Direct engagement with regional and national politicians across the spectrum, and working groups with devolved administrations and local authorities on common interests
- Direct engagement with parish councils linked to planning applications
- Responding to enquiries through our corporate affairs team
Top three material issues
- Colleague engagement
- Diverse and skilled workforce
- Health, safety and wellbeing
Regulators
Through proactive, constructive engagement with economic, quality and environmental regulators, we understand requirements and deliver against commitments over specified time periods, aiming to meet or exceed the expectations they have of our business. We actively engage in events such as workshops and respond to consultations to contribute towards the policy and regulatory framework in which we operate, covering customer, economic, environmental, social and governance matters.
How we engage
- Regular meetings with all regulators on objectives and performance
- Responses to consultations and contributing to policy debates on how regulation could evolve
Top three material issues
- Political and regulatory environment
- Customer service and operational performance
- Resilience