ISO 24540:2023

Overview

ISO 24540:2023 - Principles for effective and efficient corporate governance of water utilities - establishes a practical governance framework for water utilities of any size, ownership model or location. The standard focuses on aligning corporate governance with stakeholder needs and expectations to ensure sustainable, resilient water and wastewater services. It supports improved decision‑making by clarifying roles, responsibilities and the types of decisions water utilities and their responsible bodies must make.

Key topics and technical requirements

ISO 24540:2023 addresses governance elements and practical requirements including:

• Governance framework: define vision, mission and strategic objectives; identify governance gaps; establish decision‑making processes.
• Roles and responsibilities: mapping and definition of who does what (responsible bodies, operators, boards, management committees, auditors).
• Stakeholder engagement: inclusive processes for users, regulators, communities and other stakeholders; annex with stakeholder engagement guidance.
• Decision‑making processes: consensus‑oriented approaches and key decision types; Annex A covers consensus‑oriented decision making.
• Capacity building and information sharing: promote skills development and transparency across organizations.
• Monitoring, evaluation and performance: adoption of monitoring bodies, assessment criteria and specific performance indicator examples (see Annex C).
• Influencing factors: legal and legislative frameworks, water policy, business models, users’ needs, and overall system operation.
• Implementation and organizational functions: operational objectives, corporate social responsibility, disaster response, alignment with UN SDG 6, and roles of executive boards/municipal councils and management committees.
• Recommendations: openness and transparency, cooperation between ownership/responsible bodies/operators, and operational improvement monitoring.

Practical applications and users

ISO 24540:2023 is designed for practical use by:

• Water utility managers and operators seeking to strengthen governance and operational performance.
• Municipal councils, executive boards and responsible bodies that authorize and oversee water services.
• Regulators, policymakers and national standards bodies aligning legal and policy frameworks with good governance.
• Consultants, auditors and capacity‑building organizations implementing or assessing governance systems.
• Stakeholder groups and NGOs engaging with utilities on service quality, transparency and sustainability.

Use cases include governance gap analysis, developing decision‑making procedures, stakeholder mapping, organizational restructuring and establishing monitoring and evaluation programs tied to service delivery and SDG 6 targets.

Related standards and references

• OECD Principles on Water Governance (referenced as a governance benchmark).
• Prepared by ISO/TC 224 (Drinking water, wastewater and stormwater systems and services).

Keywords: ISO 24540:2023, corporate governance of water utilities, water utility governance, stakeholder engagement, governance framework, monitoring and evaluation, SDG 6.