ESG Enforcement Tracker

In July 2024, Ofwat opened an enforcement investigation into Severn Trent Water to investigate whether it was managing its wastewater treatment works and networks appropriately, such that the company limits spills and environmental harm from storm overflows. The case formed part of Ofwat’s wider industry investigation into wastewater management practices.

In its decision, in July 2026, Ofwat concluded that Severn Trent Water had breached its statutory duties by failing to operate and maintain its wastewater assets adequately or upgrade them where necessary. It also found that the company had failed to put in place adequate processes and systems to routinely monitor and maintain the capacity and performance of its assets to ensure they were meeting legal requirements. The company had also historically failed to maintain adequate systems and processes to ensure compliance with those duties.

Despite these findings, Ofwat decided not to impose a financial penalty, accepting instead undertakings from the company. In taking this decision, Ofwat considered the significant and timely remedial work carried out by the company, including substantial action to identify and address the problems before Ofwat formally opened its enforcement case in July 2024, the contribution of the company and its shareholders to funding that, and its proactive engagement and early offer of undertakings.

The company has already invested £98 million of shareholder funds to improve its wastewater infrastructure. Measures included increasing treatment capacity at 65 wastewater sites, enhancing storm tanks, expanding storage capacity at storm overflows and investing £26 million in nature-based solutions in Mansfield.

The undertakings require Severn Trent to:

• • Complete the work necessary to address outstanding wastewater and sewerage issues;
  • Maintain and strengthen compliance systems and governance arrangements;
  • Ensure future compliance across its wastewater network; and
  • Continue investment and operational improvements aimed at reducing pollution and storm overflow spills.

According to Ofwat, these measures contributed to a 41% reduction in spills from each storm overflow during 2025 compared with 2024.