The majority of our greenhouse gas (GHG) emissions consist of indirect emissions from purchased electricity and direct emissions from heating for buildings and wastewater treatment processes. We mitigate our emissions through two main elements: renewable energy generation and efficient energy management.

In July 2005 we published a Carbon Management Report based on the scenario models we developed with the Carbon Trust to forecast our GHG emissions. The report provided a detailed picture of Severn Trent Water's current and projected future emissions, and included the steps we proposed for controlling net emissions in the future.

The 2005 Carbon Management Report used a 2003/04 baseline, and also included figures for the Biffa business, which has now demerged from Severn Trent. In 2006/07 Severn Trent started work with independent consultants, Entec, to update our GHG projections. The report, to be published later in 2007/08, takes account of the Biffa demerger and more recent operational information.

In 2006 Severn Trent completed a third study with the Carbon Trust, a long-term greenhouse gas and energy cost analysis of different technology choices for wastewater treatment. This work will have a significant influence on long-term capital investment decisions within Severn Trent Water. In analysing our long-term investment choices in the context of greenhouse gas emissions, we are putting the climate change challenge at the very heart of our business.