ARTICLE
Sydney Water’s experience as a participant in the NSW Sustainability Bond Programme
Published 5 February 2026
Water recycling plant, St Mary’s. Image courtesy of Sydney Water.
Australia’s largest water utility, Sydney Water, participated in the inaugural 2018 issuance and has contributed assets to all the NSW Government’s green and sustainable bond issuances since.
Sydney Water’s Operating Licence Lead, Customer Delivery, Christine Turner and Manager, Corporate Finance, George Boulous talk through the organisation’s path to more sustainable operations and services and how it continues to embrace a circular economy mindset that will deliver better value to its customers.
How did Sydney Water first hear about the NSW Sustainability Bond Programme (the Programme) and what was behind the reason to participate?
Christine Turner: At Sydney Water I have consistently advocated for ways that demonstrate our path to becoming a more sustainable organisation. Key for me, as a sustainability champion in our business, is being able to talk about this from an environmental and financial perspective, as well as the social benefits such as enhanced public health and wellbeing. My vision has always been to give nature and the environment a more prominent voice.
I learned about how green bonds can help in transitioning to a low carbon economy and improve environmental performance at a conference several years ago, so when I heard about the NSW Sustainability Bond Programme being launched, I thought it would be valuable to explore further. It was also a great opportunity for us to showcase our sustainability credentials to a broader audience, particularly in the financial sector, and demonstrate how a water utility is helping to address the UN Sustainable Development Goals (SDGs).
George Boulous: Coming on board for the first bond in 2018 showed true foresight and a major way to show how we have implemented and embedded sustainability practices across our organisation. We had already looked at environmental and social issues, but how these interact with financial sustainability was one we had yet to fully explore; the Programme provides a mechanism for capital to flow more directly to projects which deliver positive environmental and social outcomes.
Sydney Water has taken its sustainability activities further by incorporating circular economy principles into everything we do. As a water utility, overseeing a resource vital for future generations, we have an important role to play in shaping a low carbon future by mitigating the impacts of climate change as well as protecting and enhancing the environment.
Which Sydney Water assets are part of the Programme?
George: So far we have had 9 assets participate in the Programme – Lower South Creek Treatment Program, Green Square Trunk Stormwater Improvement and seven stormwater naturalisation and improvement projects, representing close to $1 bn in assets, earmarked against all 4 of TCorp’s green and sustainability bonds issued to date. Our Green Square Trunk Stormwater Improvement and Waterway Naturalisation and Stormwater Improvement assets have since left the pool upon the Programme’s March 2025 bond maturity.
Sydney Water has put forward “green” projects that showcase our approach to renewable energy, energy efficiency, pollution prevention and control, sustainable stormwater management, climate change mitigation, and circular economy adapted production technologies that recover resources from waste streams.
Christine: The approach to stormwater asset renewal is a great example. We reimagined this through a naturalisation lens, which gave Sydney Water and our stakeholders the opportunity to rethink water infrastructure by incorporating more natural and innovative design solutions. It’s part of our desire to maximise the value of our natural capital and extent of our green assets that also increases the lifespan of our assets and improves resilience to climate change. Even further, these types of assets produce a variety of other benefits like water quality improvements, reduced carbon emissions, recreational opportunities and habitat protection.
We have also been able to demonstrate improved integration of sustainability practices by measuring, reporting and ensuring transparent disclosure of our outcomes. This is a key element of our transition to an SDG-aligned and net zero carbon economy.
We believe the success of participating in the Programme was a driver that led to the NSW Department of Climate Change, Energy, the Environment and Water (DCCEEW) starting the Natural Capital Programs to look at how green assets can be better valued in decision making. This is a national initiative that aims to develop fit-for-purpose methodology to recognise natural capital in financial decision making and accounting, which is a very important development for Sydney Water as it is linked to our environmental stewardship efforts and circular economy framework. It will help Sydney Water to assess the real value of nature and the ecosystem services provided that are not fully realised by current, linear economy measures.
What was the process to get assets into the pool?
Christine: Firstly, the robust framework that underpins the Programme is integral to its success. The Asset Identification Group (AIG) is instrumental in delivering new assets that can be considered for inclusion in the programme, and we’ve found that it’s a very streamlined process, well-structured and easy to implement.
Ultimately, any successful process comes out of collaboration and, to that end, NSW DCCEEW’s Environment and Heritage Group has been an enormous help; they worked with me in the early stages to ensure Sydney Water’s documentation meet all asset eligibility criteria set by the Climate Bonds Standard and that we can provide the evidence to support the claim. We also deeply value the great support from TCorp and NSW Treasury.
What has been your experience of the reporting requirements?
Christine: Sydney Water has vigorous processes in place generating large amounts of verified information that can support our inclusion in the Programme. Reporting on our assets is not cumbersome – what is required under the Programme is already part of Sydney Water’s annual reporting processes.
Our aim is to keep things simple; our reporting team across Sydney Water really helps home in on the most relevant information that demonstrates the value of the assets and the outcomes being sought. This is an extraction exercise from our information database; it’s data that is always verified because we use it for our regulatory reporting as well. Repurposing this information to put forward to the Programme reinforces our environmental performance and stewardship efforts and puts a spotlight on how that has improved over time.
George: Part of embracing the circular economy is about finding more value from what you already do. Our reporting is a great illustration of that. We want to grow awareness of sustainable finance among all our stakeholders, to choose natural over technical solutions that help improve Sydney Water’s environmental performance. It’s also led to more conversations with other water authorities around Australia who are very interested in what we’re doing. As with all new initiatives, everyone has a different starting point when looking for better and strategic ways to recognising the value of our natural capital – and ours was through the participation in the Programme.
In your view, what outcome has been achieved from participating in the Programme?
Christine: Implementing circular economy principles through focusing on nature-based solutions will help improve liveability for Sydney Water customers and communities now and into the future. Continuing to focus on new and innovative ways to meet our sustainability goals cements Sydney Water’s environmental stewardship efforts and sustainability credentials. Being part of the Programme also provides a great opportunity to show other sectors such as financial markets how we’re implementing projects that will improve sustainability outcomes and test investor interest in natural assets.
George: TCorp always told us that investors were interested in this area, rather than solely built or engineered assets. That gave us a signal of their worth and that there was change in the market with natural assets starting to be viewed as more valuable.
What would you say to other organisations thinking about participating in the Programme?
Christine: We’ve been part of the Programme the longest of any of the participating organisations – since 2018. Involvement improves your reputation and your sustainability credentials both externally and internally. An example of the internal benefit to Sydney Water is the way participation resonates with our people and how our approach to protecting the environment and delivering services in a more sustainable way aligns with their values.
Being part of this Programme makes us feel that we’re part of a great big family; it’s an amazing partnership of passionate people where we get to learn from everyone else that’s involved. This is a Programme that not only brings more investment into the state but contributes to increasing NSW’s resilience, helping it transition to a low carbon economy that will provide a better place for future generations.