Rand Water | Integrated Annual Report 2025

NATURAL CAPITAL Rand Water is committed to environmental stewardship and sustainability. Our integrated reporting highlights our comprehensive approach to environmental management, with a specific focus on preserving natural capital. This commitment is central to our operations, ensuring that we manage our impact on the environment for the benefit of current and future generations.

Supplying water is our core business, and it is directly linked to natural capital, a resource we are committed to protecting. This includes the raw water and surrounding ecosystems within our area of supply, servitudes, and properties. We abstract, purify, and deliver this essential resource to millions of South Africans, and consistently exceeding the SANS 241 potable water quality standards. Our commitment extends beyond water distribution; we actively contribute to the preservation and enhancement of natural capital through comprehensive environmental management services. By investing in conservation, sustainability, and climate resilience, we are ensuring the long-term viability of our resources. During this year, we implemented significant projects aimed at improving operational efficiency and strengthening environmental compliance across all organisational activities and projects. REDUCING OUR CARBON FOOTPRINT AND BUILDING CLIMATE RESILIENCE CLIMATE CHANGE RISK Rand Water acknowledges the growing environmental risks posed by extreme weather patterns associated with climate change. In alignment with the United Nations Framework Convention on Climate Change (UNFCCC) and guided by South Africa’s legislative requirements and sectoral climate change adaptation strategies, we have developed a comprehensive Climate Change Policy and Strategy in the 2024/25 financial year. This foundational document provides a framework for managing climate risks, enhancing adaptation, resilience, and mitigating the effects of global warming on our operations. It underscores Rand Water’s commitment to environmental stewardship and sustainability, ensuring we continue to deliver essential services in a changing climate. The strategy directly supports the country’s commitment to the global climate agenda, aiming to contribute to the mitigation initiative in contribution to the efforts to limit the global temperature increase while remaining agile in adapting to climate change impacts. The strategic objectives of this initiative are embedded within our operational framework, ensuring that climate resilience and adaptation are core to our business. Our climate change risks and opportunities, strategic objectives and focus • Energy efficient and transit to clean energy. • Carbon footprint reduction focusing on Scope 1 Emission (Fleet Carbon Footprint) and Scope 2 Emissions (electricity) intending to incorporate Scope 3 reduction and neutral organisation carbon footprint. • Water conservation and demand management of the scarce raw water resource. • Environmental management for protecting and sustaining our natural resources. • Research on raw water availability, alternative sources and quality. • Reduce vulnerability of the infrastructure to the impacts of floods. During the reporting period, we have integrated several proactive measures into our operations to address climate change. This proactive approach demonstrates our commitment to long-term sustainability and safeguards our operations and assets against future climate-related challenges, providing a commitment to long-term sustainability and operational resilience.

The following are some of the proactive mitigation and adaptation measures:

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Rand Water | Integrated Annual Report 2025