UK Water Companies Borrow £10bn in Green Bonds Amid Rising Pollution
An investigation by Unearthed reveals that England's water companies have borrowed over £10.5 billion through green bonds since 2017, ostensibly to fund environmental improvements. Despite this significant influx of capital, the sector's environmental performance has deteriorated, with sharp increases in sewage leaks and pollution incidents. Major issuers Anglian Water and Thames Water, which raised £3.5 billion and £3.1 billion respectively, recorded the highest number of pollution incidents and received poor ratings from the Environment Agency. Critics argue that these funds are often used to refinance completed projects or meet legal obligations rather than delivering additional environmental benefits. This practice has been described as a 'sewage swindle' by politicians and analysts, who warn that it undermines investor confidence in the UK's green finance market. The report highlights a disconnect between the marketing of sustainable finance and the actual operational failures of water utilities, raising questions about the efficacy and integrity of green bonding mechanisms within the industry.
Wire timeline
UK Water Companies Borrow £10bn in Green Bonds Amid Rising Pollution
An investigation by Unearthed reveals that England's water companies have borrowed over £10.5 billion through green bonds since 2017, ostensibly to fund environmental improvements. Despite this significant influx of capital, the sector's environmental performance has deteriorated, with sharp increases in sewage leaks and pollution incidents. Major issuers Anglian Water and Thames Water, which raised £3.5 billion and £3.1 billion respectively, recorded the highest number of pollution incidents and received poor ratings from the Environment Agency. Critics argue that these funds are often used to refinance completed projects or meet legal obligations rather than delivering additional environmental benefits. This practice has been described as a 'sewage swindle' by politicians and analysts, who warn that it undermines investor confidence in the UK's green finance market. The report highlights a disconnect between the marketing of sustainable finance and the actual operational failures of water utilities, raising questions about the efficacy and integrity of green bonding mechanisms within the industry.
Unearthed