American Water has received a score of 87 out 100 on S&P’s Global Ratings ESG Evaluation Report owing to its commitment to environmental leadership, social responsibility and governance.
The score is the highest given by S&P to a company in the US and the 2nd highest in the world.
American Water “prioritises commitments to safety, environmental stewardship, and public health in its strategy, and that ESG goals are a natural fit for and align well with its business model. Additionally, we view American Water’s preparedness assessment of best in class as reflective of its ability to identify, assess, and act on risks and opportunities its business faces, such as climate change, infrastructure replacement, water contamination, and an ageing workforce,” according to S&P.
The recognition follows American Water reducing its greenhouse gas emissions by 31% through 2018 and reducing 40% by 2025.
The company has reduced annual water usage by 3.3 billion gallons through conservation, recycles over a billion gallons of water a year, and will invest more than $8.5 billion to address ageing infrastructure, reduce or eliminate leaks, improve cyber and physical security, and increase resiliency of critical assets against the impacts of climate variability.
Walter Lynch, the president CEO of American Water, said: “Today, companies must do more than just put words down on paper, they need to show defined and measured actions and results that are reflective of a company’s commitment to ESG.”
The utility was named as one of the 100 Most Sustainable Companies by Barron’s Magazine. The company was the highest-ranked utility of any type, coming in at #22.
American Water was also recently named on Corporate Knights 16th annual Global 100 list of the World’s Most Sustainable Corporations. American Water was ranked number 16 and is the only U.S. based utility on the list.
The full S&P Global Ratings American Water ESG Evaluation Report can be found here.