2020 Sustainability Report| Global challenge | 57 Regulatory and administrative compliance Innovation in the water sector Legislation, regulations and administrations in the different Innovation is a key factor in the water sector, which countries should also adapt to the increasingly strict should meet regulatory requirements by promoting regulatory requirements of international organisations in projects related to the application of new technologies to terms of water cycle management requirements, water the management of the end-to-end water cycle, its use stress, governance, as well as climatic and financial and re-use, etc. requirements. In this regard, companies like Aqualia should ensure the European Directive 2020/2184, on water intended for quality of this resource via a risk management system. human consumption, requires transparency and access To do this, risk assessments and control need to be to information on water quality parameters, to achieve carried out by means of Water Safety Plans, which increased client confidence and greater consumption start in the abstraction area and continue as far as the of tap water. home distribution system. Operational supply control programmes also need to be prepared. The EU's energy and climate objectives are leading to investment in sustainable projects and activities. Once again, the different innovations to be undertaken InJune 2020, Regulation EU/2020/852 on establishing require large investment and public-private collaboration. a framework to facilitate sustainable investment There is great potential for reducing GHG emissions, for was published. This included a classification system example in the case of the water and sanitation sector. (taxonomy) that establishes a list of environmentally sustainable economic activities. To achieve this and to encourage activities that contribute to mitigating or adapting to climate change, companies In Spain, the state continues to pay a fine to the EU such as Aqualia will be looking to access international of 10 million euros every six months.This sanction by finance, so they need to explain their innovative initiatives the European Commission is due to non-compliance from an environmental perspective, taking into account with Directive 91/271 / EEC on wastewater treatment, energy consumption and other significant metrics. due to the lack of treatment plants in a number of urban agglomerations. Another outstanding national issue is investment in water infrastructures to comply with the Water Framework Directive (184/014081). Global risk management The company has a compliance model and a control and or their feasibility, and financial risks, those that may assessment system for its strategic risks which are those affect the financing of the company to a greater or lesser that may affect the company's positioning: Reputational, degree and therefore the future of the business, as well social-political, economic, etc-; operationalrisks, those as the regulatory compliance risks mentioned above and that may have an impact on the provision of services managed by the Regulatory Compliance Department.