Developing an Environmental, Social, and Governance Framework for Water Utilities

Environmental, Social, and Governance (ESG) is integral to business and risk management, and ESG factors are now widely considered by investors in the investment decision-making process. ESG factors help investors and other stakeholders assess an organization’s sustainability, ethical impact, and long-term value creation. Strong ESG performance influences an organization’s ability to attract funding, correlating with strong bond ratings, improved access to capital, and heightened investment resilience. The ESG topics relevant to the water utility sector, typical utility performance by topic, and suggested action plans are tailored by utility type and compiled in the ESG Framework Webtool on WRF’s website. This report and accompanying technology deliverable address improving both ESG performance and reporting. It considers ESG strategy and performance improvement as a set of business practices that identify and address environmental, social, and governance risks. Additionally, it addresses ESG disclosure expectations and best practices. Published in 2025.