About this report This report covers the most significant environmental, social and governance issues for the financial year 1 April 2020 to 31 March 2021. We have designed the contents to complement the information in our Annual Report and Accounts. Our regulated water and waste water business includes the wholesale water and waste water activities of Severn Trent Water Limited and its retail services to domestic customers, and Hafren Dyfrdwy Cyfyngedig , the information in this report relates to Severn Trent Water, which makes up 98% of our total customer base. Unless stated otherwise Our reporting is guided by our Materiality Assessment, which is informed by the GRI and SASB reporting frameworks and the UN Sustainable Development Goals. We take into account the GRI’s Reporting Principles of stakeholder inclusiveness, sustainability context, materiality and completeness, which are complemented by the subset of sustainability issues that are financially material to our sector, as identified by SASB’s materiality map. Using these standards together ensures a holistic picture of our corporate performance on sustainability. This approach is further supported by our examination of how our efforts contribute to the UN’s Sustainable Development Goals, which set our local efforts with the context of these global goals. The independent and external indices and awards shown on this page help validate the credibility of our sustainability performance, and we recognise their importance to investment decisions. However, they do not show the whole story, and this report serves to add to the honest assessment of our performance and the work we know we still have to do. Additional information Partnerships/memberships/recognition Benchmarking CDP CDP (formerly the Carbon Disclosure Project) is a not-for-profit organisation that runs the global disclosure system for investors, companies, cities, states and regions to manage their impact on the environment. CDP helps assess our plans for climate change and the action we’re taking. We were rated B in 2020, and we’re working hard to improve our future responses. FTSE4Good As a FTSE100 company, we are part of the FTSE4Good Index Series, designed to measure the performance of companies demonstrating strong environmental, social and governance practices. Our latest review was in June 2020. Sustainalytics Based in Amsterdam, Sustainalytics is a company that rates the sustainability of other organisations based on their environmental, social and corporate governance performance. In early 2021, Sustainalytics gave us a risk rating score of 14.4, which means we are assessed to be at low risk of experiencing material financial impacts from ESG factors. This rating places us second within the water utilities sub-industry. MSCI (formerly Morgan Stanley Capital International) is based in New York and provides a range of market and business analysis to investors around the world. MSCI scores companies based on their plans and behaviours in relation to issues including climate change, pollution and waste, human capital, social opportunities, and corporate governance and behaviour. In February 2021, MSCI rated us A (Scale AAA to CCC). Tortoise Intelligence Responsibility100 Index We were ranked sixth in the April 2021 refresh of the Tortoise Intelligence Responsibility Index. An index unique for ranking whether companies do what they say they will – providing a ‘walk’ as well as a ‘talk’ perspective on performance. The index ranks the FTSE100 companies on their commitment to key social, environmental and ethical objectives, inspired by the UN Sustainable Development Goals. This index is updated on a quarterly basis. social and governance practices. Our latest review was in April 2021. Institutional Shareholder Services (ISS) ESG ISS Corporate Performance analyses a company’s management of ESG issues on the basis of up to 100 rating criteria. We received a B+ ‘Prime status’ for our assessment that took place on August 2020, awarded to companies with ESG performance above sector specific thresholds. Task Force on Climate-related Disclosures Task Force on Climate-related Disclosures The Taskforce on Climate-related Financial Disclosures (TCFD) recommendations are designed to achieve consistent, decision-useful, forward-looking information on the material financial impacts of climate-related risks and opportunities, including those related to the global transition to a lower-carbon economy Carbon Trust We have held the Carbon Trust standard for over 10 years, recognising our best practice in measuring, managing and reducing our environmental impact. We receive valuable feedback from the Carbon Trust on how to improve on these topics. United Nations Global Compact Through the delivery of our sustainability ambitions, Severn Trent is committed to upholding the UN Global Compact’s Ten Principles on human rights, the environment and anti-corruption. This report along with our GRI Content Index acts as our Communication on Progress. Data quality and assurance In ensuring data quality for this report, we followed the GRI’s Reporting Principles of balance, clarity, accuracy, reliability, timeliness and comparability. Data assurance Across our Sustainability Report, we have used our established risk based, three lines of assurance approach, with our most material sustainability metrics being independently assured. As part of the ARA and APR process, Jacob have assured our sustainability-related Performance Commitments and Deloitte has assured our financial data. Other high-risk sustainability information has been assured by Internal Audit with the remaining lower risk areas being second line assured. Full assurance statements can be found on in the Severn Trent Plc Annual Report and Accounts 2021 and Severn Trent Water Annual Performance Report 2021. Carbon reporting Our approach to carbon reporting is based on the Greenhouse Gas Protocol Corporate Accounting and Reporting Standard and we have included only emissions from the assets which we own and operate and which we can directly influence and reduce, known as the financial control boundary. Bloomberg Gender-Equality Index In 2021, we were announced as one of the 380 companies across 44 counties and regions included in the 2021 Bloomberg Gender-Equality Index (GEI). The Index tracks the performance of public companies committed to supporting gender equality through policy development, representation, and transparency www.severntrent.com Severn Trent Plc Sustainability strategy