The report looks back to the performance of the Group’s major business units in 2005/06 and looks forward to the challenges which arise from Severn Trent’s new strategy to focus on water. The report has been independently verified by Acona Ltd. The report is available at www.severntrent.com/ ^[1] and hard copies can be ordered by emailing corporate.responsibility@stplc.com ^[2]

2005/06 contained significant change for Severn Trent, with the announcement of the demerger of the group’s waste business, Biffa, as a result of a new group strategy to focus on water. There was also a significant challenge, with the OFWAT report into the allegations of misreporting of regulated data at Severn Trent Water being published in March 2006.

Severn Trent has used the report as an opportunity to detail the steps it has taken to improve performance and rebuild stakeholder confidence. The report explains the Group’s new corporate responsibility strategy and goes into detail regarding its plans in four particularly important areas: health and safety, climate adaptation, business standards and water leakage.

The report also details Severn Trent’s performance in 2005/06 on a wide range of environment, workplace, community and marketplace issues. During the year the RIDDOR reportable incident rate per 1,000 employees fell by 27.5% as a result of the continued focus on health and safety. The Group also expanded its renewable energy activities further, generating over 4% of UK renewable electricity.

Severn Trent is a leading FTSE 100 water group which serves 3.7 million household and business customers in England and Wales, and provides water purification, operating and testing services in the UK and overseas.

Feedback on the report is welcomed by email to corporate.responsibility@stplc.com ^[3]

Visit www.CorporateRegister.com ^[4] to access this publication together with a further 12,000 CSR reports.