Abstract

This paper examines the impact and challenges of Environmental, Social, and Governance (ESG) Standards within the water utilities sector, highlighting the pressing need for sustainable governance models amid increasing scrutiny of ESG criteria. This study emphasizes collaborative governance strategies as essential for equitable and sustainable water resource management, by recognizing the critical role of water management for sustainable development, as underscored by the United Nations’ SDG 6. It delves into the complexities of defining and implementing ESG standards, critiquing their conceptual fluidity and the risks of poor implementation. Starting from Integrated Water Resources Management (IWRM), through the lens of the Urban Commons and Co-City theory, the paper proposes a participatory, multistakeholder governance model – “Co-Governance”—characterized by shared decision-making, community engagement and equitable resource distribution. This model challenges traditional ownership paradigms, advocating for collective stewardship and long-term sustainability. The hypothesis is tested through empirical case studies of utility companies in diverse contexts, including Glas Cymru in the UK, Acquedotto Pugliese (AQP) in Italy, and Runda Water Ltd (RWL) in Nairobi, Kenya.

TABLE OF CONTENTS

1. Introduction

2. From the Birth of ESG to a purpose-led corporate management

3. Water, Energy, Food and Ecosystems: an integrated Nexus perspective

4. Corporate Co-governance of Water Management: Theoretical foundations with EU and African Doctrine Evolutions

5. Case study analysis
   5.1 Glas Cymru
   5.2 Runda Water
   5.3 Acquedotto Pugliese

6. Findings

7. Discussion and Conclusion