Policy Influence
Why It Matters
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Our primary goal as a regulated utility is to support
laws and policies that enhance our ability to provide
safe, affordable and high-quality water and wastewater
services to our customers. We engage with every level
of government to voice our support for effective policy
and provide support that aligns with our business values.
We also participate in several non-partisan partnerships
to advocate for effective environmental, health and safety
and water quality standards and regulations at the local,
state and federal level.
We see ourselves as a key stakeholder for policy
decisions that affect the water and wastewater utility
industry. Our thought leadership can help inform the
decisions of regulators or politicians and prevent
ineffective or costly regulation that has little benefit to
our customers and communities. Our policy influence
may also provide communities with more options
to address challenges like water scarcity or water
affordability and access. We will continue working
with regulators and other stakeholders to support
responsible policies that enhance our ability to provide
our customers with water and wastewater solutions
and align with our business.
Our Approach
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Policies
Our Code of Ethics governs our interactions with
government officials and regulators, including lobbying,
political contributions and anti-bribery and anti-corruption
policies. We require our employees to complete an
annual training on our Code of Ethics. Our Board of
Directors must approve any updates or changes to our
Code of Ethics. For more details on our Code of Ethics,
please read the Business Ethics section of this report.
Our Political Contribution Policy, most recently updated
in 2020, requires that our Board of Directors have direct
oversight of our political contributions, and that we
publicly disclose our contributions annually.
In early 2021, American Water adopted an Anti-Corruption
& Anti-Bribery Policy, underscoring our commitment to
engaging with government officials in compliance with
applicable anti-corruption laws and regulations in the
areas where we operate. In 2021, we will also implement
anti-corruption training as we continue to keep the
highest standards of integrity front of mind.
Governance
The Board of Directors delegates oversight of policy
activities and political contributions to two of our Board
committees. Our Nominating/Corporate Governance
Committee establishes the policies and procedures
for Board oversight of public policy activities, while
our Safety, Environmental, Technology and Operations
Committee reviews any policies and practices that are
significant to environmental and business operations
and objectives, which may include public policy activities.
Our Senior Vice President of Communications and
External Affairs supervises the regulatory relationships
and engagements across our entire business and works
with the Presidents of our state utilities to oversee
policies and external affairs.
Collaboration & Engagement
As a thought-leader in water research, we work closely
with the EPA, CDC, state Departments of Environmental
Protection, regulatory agencies and other organizations to
collaborate on research that informs effective standards
and regulations for our industry. We focus primarily on
policies relevant to water quality, infrastructure, health
and safety and environmental stewardship.
We strive to maintain consistent and meaningful
engagement with industry associations and regulators.
Through our involvement in such organizations, we help
implement best practices, inform regulations and provide
safe and reliable water and wastewater services to our
customers. We collaborate with industry associations and
government agencies through panels, thought leadership,
research and other engagements to both share and build
our expertise on issues relevant to water and our industry.
We will continue to share and discuss best practices
throughout the water and wastewater industry.
We focus our efforts on opportunities to support
solutions to water and wastewater challenges for our
industry, customers and communities, such as water
affordability and infrastructure safety and resilience.
We tailor our engagement strategy depending on
the geographic location, operational challenges and
regulatory landscape of each state where we operate.
American Water engages directly with policymakers
in a variety of ways, including legislative sessions,
educational meetings, conferences and political action
committee (PAC) events. In 2020, American Water shifted
our engagement to a virtual format to support the health
and safety of our employees and stakeholders. It is our
hope that our efforts to engage on water policies will
continue to benefit our business, our customers and
our communities.