Ofwat has published its final Climate Change Principles for water companies following stakeholder consultation and engagement on its discussion paper setting out its latest thinking on climate change and proposed climate change principles published in July 2025.

Image source Ofwat: Climate change principles – Responses document

Ofwat’s final Climate Change Principles are accompanied by a separate Responses document describing stakeholder feedback setting out the clarifications and minor revisions it has made to the principles outlined in the discussion paper.

Ofwat says stakeholders have generally welcomed the principles - stating that they are “reflective of current approaches and opportunities.”

Stakeholders also support the development of climate adaptation and resilience metrics and Ofwat will be engaging further with companies in Spring 2026.

Introducing the final Principles, Ofwat says:

“Our climate change principles provide a flexible framework to guide company responses, recognising that companies face different risks and contexts. A principles-based approach supports company specific approaches, whilst also promoting high standards and consistency across the sector. It also promotes acting with care, integrity and foresight to deliver resilient services, rebuild public trust and ensure water is valued and protected for future generations.”

Ofwat’s stakeholder feedback response says the companies outlined that they see opportunities from adopting the principles including:

• Delivery of social and environmental value alongside climate resilience;
• Stronger customer engagement, trust and legitimacy;
• Further development of catchment and nature-based approaches, and place-based approaches, including co-creating solutions with stakeholders;
• Consistent regulatory approach to adaptive planning.

Stakeholders also discussed barriers and challenges to implementation including skills and development, and supply chain capacity, both of which are vital for delivering innovation and nature-based solutions (NBS). Stakeholders also noted that the supply chain is subject to climate change risks.

The water sector regulator says it recognises the need for a more integrated regulatory approach and will continue to work with partner regulators to support consistency in scenarios, assumptions and metrics, as recommended by the IWC, as the sector moves towards arrangements for a new integrated regulator.

“We agree that effective implementation is critical. We expect companies to reflect the final principles in their operations and planning going forwards….

“We will explore climate resilience and adaptation metrics and reporting with the sector in Spring 2026. Within this, we will take an expanded view of resilience to climate change, which includes the importance of the resilience of natural assets, given the water sector's reliance on, and in turn, impact on the environment.” Ofwat comments.

Following the engagement process, Ofwat has made only minor revisions to the principles.

Since Ofwat’s engagement began, the Independent Water Commission’s report has been published, followed by the UK Government’s White Paper setting out plans to reform the water sector and wider system.

“We welcome the government's White Paper and its direction for the future of the water sector. Our principles are intended to support that direction,” Ofwat says.

Click here to download the final Climate Change Principles paper

Click here to download the Climate change principles – Responses document