How important are anchor institutions?

Illustration by Danni Zeng, Arup, for the EWSC project

What do we mean by an ‘anchor institution’, how can they benefit local communities, and how could water companies play this role? EWSC takes a look at the role that anchor institutions can play in supporting the development of water smart communities.

Check out these articles on the EWSC Medium site by The Centre for Local Economic Strategies (CLES) – which provide insights in relation to water smart communities.

Anchor institutions are large public, commercial and social sector organisations that are rooted in their local place by way of their mission and history of physical assets – they are typically organisations like local authorities, NHS trusts and universities. These institutions exert sizeable influence on the local economy through the purchase of goods and services, employment and through the deployment of land and property. As agents that can affect economic and social well-being, they are key to building community wealth. 

The article ‘water companies as placed-base anchors’ explains how water companies have a clear role as anchor institutions. They have significant potential to utilise their procurement spend, employment and land to deliver positive social, economic and environmental outcomes. 

‘Amplifying impact through anchor networks’ explores how anchor institutions can come together in networks around a shared purpose. Such networks can coordinate and scale activities to amplify positive social, economic and environmental impacts in a distinct place/geography.   

‘Shaping local economies through anchor activity’ considers practical ways in which water companies can use their roles as anchors to improve local economies. Good practice already exists (such as Anglian Water’s Alliance Partnership), but could be expanded through anchor networks and by making the sector more representative of the communities it serves.  

The article also proposes that water industry bodies, such as Water UK and Ofwat, can help water companies become positive anchor institutions through their convening power and by shaping the regulatory framework – for example, by setting incentives and targets linked to community wealth building.