Company Profiles

Severn Trent

United Kingdom

Severn Trent is an environmental services company offering water utility services in the UK, as well as operating services, water purification, and testing services worldwide. The company addresses watershed biodiversity concerns and gives particular attention to the benefits of biological processes. Severn Trent educates its customers on water conservation techniques as well as operating an awareness campaign to reduce household pesticide, chemical, and oil pollution. The company has made progress on its climate change impact and generates almost one-fifth of its electricity consumption via its own sewage gas combined heat and power (CHP) facilities. While the company has made progress, Portfolio 21 has asked Severn Trent to continue to reduce the leakage rate of its water pipe network. The company notes that it operates in a highly regulated industry and faces limitations, however, we believe the company should increase its efforts to communicate the range of benefits to both the public and government regulators. This effort may help secure support for additional investments to improve network efficiency. Portfolio 21 has also asked that Severn Trent increase its reporting and transparency regarding chemical usage.

To the best of our knowledge the above information is accurate and was obtained from sources we believe to be reliable. Neither the information presented above nor any opinion expressed shall be construed as an offer to sell or a solicitation to buy the security. The views expressed are those of portfolio management as of 12/31/08 and may not reflect current opinions or subsequent events.