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Infracapital worked with Affinity Water to implement best practice governance standards as the company invested to deliver a sustainable and responsible service to its customers.
Industry: Water Utility
Headquarters: South East England
Affinity Water is the UK's largest water-only supply company by revenue and population served. Each day, the company delivers 900 million litres of drinking water to 3.6 million people in the south east of England.
Between 2012 and 2017, Infracapital owned a 35% stake in Affinity Water. Given the essential and regulated service that Affinity provides, we placed significant focus on ESG factors and considered its governance, environmental practices and community interactions in depth prior to investment.
Throughout our ownership, we worked closely with Affinity's management to implement several important best practice governance standards at the company. These included:
The company's environmental management system exhibits a high level of commitment to mitigate environmental impact and ensures that appropriate controls are in place. As part of this, Affinity has undertaken proactive conservation schemes, such as restoring the Springwell reed-bed in the Colne Valley, an important breeding habitat for bird species, in conjunction with the Middlesex Wildlife Trust.
Affinity has also made specific commitments to the environment within its business plan, which are brought together under five key themes:
Affinity Water’s ambition is to be the leading community-focused water company and has conducted projects that aim to reduce flood risks, minimise water wastage and inspire local schools. The company recognises the importance of opening its land for recreational use by the public and has partnerships with angling and sailing clubs who regularly use its reservoirs. It has also established a customer scrutiny group that ensures it is accountable towards the communities it serves.
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