Environmental Performance Evaluation in the Water Industry of England and Wales

The appropriate means of benchmarking environmental performance within and between companies is a matter of considerable debate and raises issues such as what information to compare and the reliability and consistency of data. Comparing environmental performance through company environment reports is an approach which has been widely used but, as this paper shows, is difficult and has severe limitations. This paper presents a unique analysis, based on the UK water industry, which compares data reported in company environmental reports and data on the same companies reported through the industry regulators. In turn, this is compared with the environmental performance indicators proposed by two other systems, one advanced by the UK water industry itself. The results demonstrate the difficulty of specifying environmental indicators that enable meaningful comparison. The difficulty of comparing environmental performance in a sector with a comprehensive approach to, and long history of, environmental performance reporting presents some hard lessons for other sectors.