Severn Trent operates in the highly regulated water utilities sector. With strict governmental targets in place, Severn Trent’s approach is clearly focused on the long-term viability of its business as well as the precious resource it is responsible for.

The challenge

Severn Trent’s purpose is to serve its communities and build a lasting water legacy. This purpose recognises the companies responsibility for caring for one of our most critical resources – water. The challenge for Severn Trent’s reporting in 2018 was to demonstrate how the businesses strategy and business model focuses on the long term viability of both its services and the resources it is responsible for.

What we did

Since 2010, Radley Yeldar has worked with Severn Trent to develop a connected and coherent narrative throughout their reporting. This year there was a specific focus on creating a closer link between the business model and the resources and relationships critical to its success. As a business ultimately dependent and responsible for the environment in which it operates, we developed a business model which not only recognized its effect on the water cycle, but also on the careful use of renewable sources of energy. The model also identified the critical inputs that covered natural resources to relations with the government and regulators. These inputs were then discussed in some detail in a new and dedicated section on how Severn Trent managed and developed these resources and relationships.

We also recognised how Severn Trent’s purpose sits centrally to all that they do. Using their new brand – ‘water to tap’– we developed an engaging visual section upfront which highlighted how their long-term investments created value today.

The result

The 2018 annual report has been successful in creating a reporting narrative that links performance explicitly to Severn Trent’s long-term purpose. It provides a holistic and balanced view of how the company is maintaining and nurturing its critical resources and in turn demonstrates the culture and values of everyone involved in its activities.

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