Stakeholder Why we engage How we engage How this has influenced our business and shaped our sustainability approach Regulators, Government and NGOs The policy framework for the water sector in England and Wales is set by the English and Welsh Governments, respectively. We seek to engage constructively with both Governments to achieve the best outcomes for customers and the environment. Below the policy framework, our industry is regulated by Ofwat and others. We agree commitments with our regulators and continually report our performance to these. We work constructively with our regulators to help ensure the right outcomes for customers and the environment. We engage with Ofwat, the Drinking Water Inspectorate, Defra, the Environment Agency, Natural England, Public Health England, Public Health Wales, Environmental Health, Natural Resources Wales, MPs, Local Resilience Forums and a range of environment and farming NGOs. We engage regularly through meetings, email, calls, and consultation responses with Government officials and elected representatives on water and environment-related issues. Our engagement with regulators aims to find constructive solutions to mutual aims, and has shaped both parties’ approaches to PR19, including incentives and the treatment of costs, and other areas, such as our ambitious Green Recovery package of investment. Colleagues Our experienced, diverse and dedicated workforce is key to achieving our ambitions and purpose. Our social purpose and commitment to sustainability helps attract, retain and inspire our employees. Our quarterly company forum facilitates ongoing dialogue between management, employee representatives and unions. Topics include updates on health and safety, engagement survey outcomes, business performance and sustainability initiatives, e.g. net zero commitment and electric vehicle roll-out. Our CEO continued our employee roadshow tour, and we’ve hosted specific leadership events focused on our net zero commitment. Our employee engagement survey gathers employee perceptions. We introduced additional questions on diversity and inclusion to allow us to better understand views in this area. Our colleagues are responsible for producing business plans (e.g. WMRP19, Drought Management Plan) which shape our sustainability approach. Our intranet allows colleagues to contribute to our sustainability approach by interacting through article comments or posts on our internal social platform, and sharing best practice. This year’s new graduate intake also embarked on a newly set project on ‘engaging the business on sustainability’. Presenting their ideas to senior leaders within the business, we are now integrating many of these ideas into our wider engagement strategy. Domestic violence has increased during lockdown restrictions and we engaged The Haven in Wolverhampton to provide training, specialist support and tools to support colleagues who were affected or worried about their domestic safety. Our employee advisory groups help define our policies and interventions. Communities Our aim is to be a force for good in the communities we serve and, in doing so, create value for all our stakeholders. We engage with local communities through our large capital schemes. This will include organising drop-in sessions for residents, attending parish council meetings and setting up project exhibitions to raise awareness of our schemes, and address people’s needs and concerns. Our Community Fund enables local community groups to seek funding for projects that will enhance environmental and social capital. We engaged directly with communities to understand their needs, which led us to design our fund to improve community wellbeing. Specifically this means funding people, places and environment projects. You can read more in the section ‘Supporting the region Community Fund’. Stakeholder engagement and materiality assessment