ESG Enforcement Tracker

Key facts:

Following an investigation into its compliance with water treatment laws by Ofwat, SWW proposed a £24 million “enforcement package” aimed at improving its sewage management. Ofwat considered the proposal to be both sufficient to secure SWW’s compliance with its legal obligations, and appropriate to accept in lieu of a enforcement order and penalty of £19 million (6.5% of SWW’s relevant turnover).

In its “minded-to decision”, Ofwat concluded that SWW was in breach of its licence, as well as the Urban Waste Water Treatment (England and Wales) Regulations 1994 and the Water Industry Act 1991. Ofwat considered that SWW had failed, in particular, to:

• Operate, maintain, and upgrade its wastewater assets;
• Provide drainage and deal with the contents of its sewers;
• Put in place adequate processes to identify and address compliance risks;
• Ensure that its data gathering and analysis were fit for purpose; and
• Ensure that its Executive Board received sufficient information on the company’s operational performance.

In response to that minded-to decision, SWW proposed undertakings under section 19 of the Water Industry Act 1991. It was made clear that the redress package within the undertakings would be “entirely funded by the company and its shareholders rather than customers”, and would be comprised of:

• £20 million investment to reduce discharges at key overflows, in particular in sensitive and community areas;
• £2 million for the creation of a fund to tackle sewer misuse and misconnections, which will support plumbing repairs, community outreach, education, surveys, enforcement, and technology to improve detection; and
• £2 million for the creation of a “Nature Recovery Fund”, which is aimed at supporting biodiversity projects, river quality work, and local initiatives such as rainwater storage, tree planting, and pond creation.

In September 2025, the redress package was confirmed by Ofwat following a public consultation. The delivery of the undertakings will be monitored by Ofwat and are enforceable by Ofwat under section 18 of the Water Industry Act 1991. SWW has also committed to publishing on its website details of its progress and a summary of the actions it has taken.