Highlights

• England’s water industry has issued £10.5 billion in green bonds since 2017.
• Anglian Water and Thames Water are major issuers despite continuous sewage pollution.

The English water industry has raised £10.5 billion in green bonds since 2017, despite problems with the sewage pollution cascade.

Anglian Water and Thames Water have led the issuance, thereby attracting investors interested in projects linked to environmental benefits.

Green bonds are used to fund sustainable water management, clean energy projects, and greenhouse gas emissions reduction, among other initiatives. However, the sector’s environmental record has faced scrutiny due to repeated failures in tackling pollution and upgrading deteriorating infrastructure.

Read More: What Are ESG Bonds? Benefits & Future of Green Investing

Major water companies and green bond issuance

Anglian Water is the largest issuer in the sector, which raised £3.5 billion, followed by Thames Water with £3.1 billion. Together, they rank among the top corporate green bond issuers in the UK.

Green bonds in the water sector often qualify because regular water and wastewater operations can be framed as sustainable practices. This has helped companies borrow at lower interest rates and project projects as sustainable.

Between 2017 and 2025, water companies accounted for almost 19% of all UK corporate green bonds, rising to 22% when including Thames Tideway’s super sewer project.

Also Read: Green Finance: New Guidelines for Climate Transition Bonds

Environmental record and public criticism

Despite billions raised through green bonds, water companies have struggled to tackle pollution in rivers and other environmental issues.

Environmental performance, as per reports, across the sector has declined in the past year. Critics describe the practice as corporate greenwashing, arguing that investors profit while the public and ecosystems face risks from failing infrastructure.

Thames Water has requested government leniency on environmental standards for up to 15 years, and some of its green bond impact reports have not been published, breaching industry norms.

Company responses and infrastructure investments

Anglian Water maintains that green bond funds have supported infrastructure improvements and reductions in carbon emissions, although it acknowledges that pollution problems persist.

Thames Water indicated plans to release its pending impact reports, covering the £1.65 billion raised through its latest green bond, but has fallen behind schedule.

The companies say that more investment is needed to reduce pollution as well as expand water services, and they also note that environmental progress means multiple measures, not just water quality.

See Also: Denmark Issues $1.56 Billion Green Bond Under EU Rules

Takeaway: green bonds and environmental accountability

The issuance of £10.5 billion in green bonds by English water companies spotlights tension between investment marketing and environmental performance.

While funds target sustainable water management and other environmental initiatives, critics point out the continuing sewage pollution and inadequate transparency. The situation raises questions over whether these green bonds genuinely benefit the environment or are tools for corporate profit.

Investors, regulators, and the public stay focused on ensuring that green finance delivers meaningful environmental and community outcomes.

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