Veolia Environnement is a global leader in environmental solutions operating in 77 countries. It provides water, waste, and energy management services to both public and private sector clients. The company is committed to sustainable development and has established governance structures and policies to manage corporate social responsibility. These include an "Ethics, Commitment and Responsibility" program, sustainable development charter, and risk management processes. Veolia aims to integrate sustainability into its business activities through innovation, social business models, and measuring environmental and social performance indicators. It works with partners and stakeholders to advance access to basic services and combat issues like climate change and resource depletion.

1. 2010 CSR
PERFORMANCE
DIGEST

2. The global benchmark in environmental solutions
Veolia Environnement operates in 77 countries around the world, serving
local public authorities and industrial companies. Veolia Environnement’s
clients enjoy access to expertise in four complementary areas: water
cycle management, waste management and resource recovery, energy
management, and travel mobility services. The company designs and
implements tailored solutions for its clients that combine economic
efficiency with control over environmental impacts, thereby helping
to combat climate change, save resources and conserve ecosystems.
Four divisions:
Veolia Water
Veolia Environmental Services
Veolia Energy – Dalkia
Veolia Transport
€34,787 million in consolidated revenue*
€2,056 million in adjusted operating income
317,034 employees in 77 countries (at December 31, 2010)
* Revenue from continuing operations as defined by International Financial Reporting Standards (IFRS).
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3. MANAGING CORPORATE In the face of major issues concerning the sharing of scarce resources
RESPONSIBILITY and access to basic services, being the benchmark in sustainable
5 Committed to sustainable development
7 Structured organization
development is a demanding ambition that is based on a shared strategic
11 Assessment and management procedures vision and an efficient, coherent and legible managerial structure.
This ambition obliges us to be exemplary and transparent in the eyes
MANAGING
SOCIETAL PERFORMANCE of all our stakeholders.
17 Contributing to societal development
within the framework of contractual services
21 Active social responsibility
Innovation, teaching skills, building expertise and measuring performance
23 Partnering with international organizations are the foundations that Veolia Environnement relies on to manage
its Corporate Social Responsability (CSR) program.
MANAGING ENVIRONMENTAL
PERFORMANCE
28 Manage environmental performance Preparing company-wide indicators is a difficult and delicate undertaking,
29 Combat climate change and we take pains to publish pertinent, verifiable and transparent data.
33 Mitigate our impact
35 Conserve ecosystems and biodiversity The aim of this Performance Digest is to bring together in a single
39 Protect natural resources document all the data that form the basis of our company’s CSR approach.
MANAGING SOCIAL PERFORMANCE
45 Employment trends, a reflection of the company’s business activities
47 Managing employees to reflect local needs
50 Four HR priorities underpinning Corporate Social Responsibility
MANAGING RESPONSIBLE PURCHASING
59 Sustainable purchasing policy
60 Incorporate sustainable development in the purchasing process
61 Sustainable development training and awareness-raising
for purchasing officers
62 Commit our suppliers to sustainable development
63 Evaluate our suppliers’ CSR commitment and performance
REPORTING INDICATORS
65 Environmental indicators
67 Social indicators
69 Good governance standards
71 INDEPENDENT OPINIONS
78 DETAILS OF METHODOLOGY
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4. MANAGING
CORPORATE
RESPONSIBILITY
3

5. As the world leader in environmental solutions, Veolia Environnement must adapt
its activities to the social and environmental upheaval caused by resource depletion.
This is why sustainable development issues form an integral part of the contract policies
that are incorporated in our day-to-day operations.
In a clear display of commitment at the operating level, we reinforced our Sustainable Development
Department in 2010 so that it could focus on serving the company’s businesses and on providing
all the support needed to ensure that the various facets of sustainable development are factored
into our activities and cater as closely as possible for needs on the ground.
The department’s main activities are:
■ Coordinating management systems in areas of corporate social responsibility;
■ Supporting the development of commercial offers that incorporate the three aspects
of sustainable development, thus ensuring our ability to support our clients’ sustainable
development strategies;
■ Designing contract
models and innovative partnerships in social business, so that disadvantaged
populations may have access to basic services, notably in emerging countries.
In addition to its commitments, Veolia Environnement has established suitable governance
and measures its performance using relevant indicators.
Veolia Environnement — Managing corporate responsibility 4

6. 1 Committed to sustainable development
Whatever the geographical context, The “Ethics, Commitment and Responsibility” program 3. Raise awareness of environmental challenges and the ensuing
Veolia Environnement’s activities must be In 2003, Veolia Environnement introduced the “Ethics, need for behavioral changes among all concerned with our
Commitment and Responsibility” program to serve as guiding activities.
carried out in compliance with both national
principles for all its employees. This program outlines the 4. Adapt our service offers, through dialog, the quality of
standards and the recommendations fundamental values our employees share and must reflect in the advice we provide and our expertise, to meet the needs
of international organizations like the ILO their behavior under all circumstances. This includes strict and expectations of clients.
and OECD, in particular as concerns respect respect for the law in effect in all the countries where we operate, 5. Ensure our employees’ health and safety and help improve
for basic rights, accounting for cultural diversity loyalty within the company and toward all our stakeholders, public health.
and protecting the environment. social responsibility, risk management, quality company 6. Provide working conditions in which fundamental human
information and governance, and commitment to sustainable rights and international labor standards are complied with.
development. 7. Promote diversity and combat discrimination to guarantee
For more information please consult the “Ethics, Commitment equal opportunities.
and Responsibility Program” report on our website. 8. Encourage skills development and upward mobility for
our employees throughout their career.
Sustainable Development Charter 9. Gradually set our own environmental and social standards
In line with our “Ethics, Commitment and Responsibility” to be applied to all our operations around the world.
Program, in 2006 we outlined our commitment to sustainable 10. Base our corporate governance on transparent
development in a 12-point Charter: communication, anticipation of risks and the definition of rules
for ethical conduct and compliance.
1. Protect the environment; contribute to conserving natural 11. Contribute to local economic and social development,
resources and biodiversity, and combat climate change. and to meeting international goals for access to essential services.
2. Promote—through innovation, research and development— 12. Encourage partners, subcontractors and suppliers to adhere
environmental, economic and social solutions that will meet to our values and make their own contribution to our sustainable
the needs of future generations. development commitments.
Veolia Environnement — Managing corporate responsibility / Committed to sustainable development 5

7. RECOGNITION OF THE RIGHT TO WATER
Veolia Environnement welcomed the official recognition of the Right to Water that was
proclaimed when the United Nations General Assembly and Human Rights Council adopted
respectively one resolution in 2010. These two resolutions have already contributed to
Our commitment under the Global Compact
furthering the cause of water as a vital human right.
Veolia Environnement joined the United Nations Global Compact
on June 12, 2003 as a result of an official decision of its
Since 2007, Veolia Environnement has been asked regularly by the Human Rights Council for
governance bodies followed by a declaration of membership
its viewpoint on this matter and has always responded and contributed actively to the work
signed by its Senior Executive Vice-President. Since then,
that culminated in 2010 with this important declaration. The resolution stipulates that public
a permanent correspondent has been monitoring our close
authorities are the guarantors of the effective implementation of the Right to Water and that
relations and contacts with the Global Compact Board
they may engage third-party players to provide water and sanitation services while respecting
in New York, which meets regularly with Veolia representatives.
the principles of transparency, non-discrimination and empowerment. Given that nearly 1 billion
Our participation in the Global Compact has become a major
people do not have access to safe drinking water and 2.6 billion do not have access to sanitation,
consideration in all aspects of our company’s social
by clarifying the roles, the resolution will help advance the successful completion of new and
responsibility policy.
more ambitious projects that will increase access to these basic services.
Our commitment to human rights
Veolia Environnement is a modest contributor given the size of the challenge, but it is a part of
By joining the United Nations Global Compact,
the solution to turn the Right to Water into a concrete and effective reality.
Veolia Environnement committed notably to supporting and
respecting the protection of internationally proclaimed human
rights within its sphere of influence and to ensuring that its own
companies were not complicit in human rights abuses.
For several years now, Veolia Environnement has committed
to respecting human rights in both its activities and in the
countries where it operates. For example, tests conducted
in several developing countries (Morocco, Niger, India, Ecuador,
etc.) demonstrate that it is possible to reconcile service quality
and accessibility and to encourage respect for the human rights
of the populations it serves.
Veolia Environnement — Managing corporate responsibility / Committed to sustainable development 6

8. 2 Structured organization
COMPLIANCE MANAGEMENT ANTICIPATION FORWARD THINKING
To anchor sustainable development in the day- Legal Department Environmental Management Research, Innovation and Research and Innovation
Ensures that company activities System Sustainable Development Partnership with universities
to-day operations of its businesses, Veolia comply with the regulations Managed by the Sustainable Strategy Committee (attached and programs to drive innovation
and provides legal intelligence. Development Department, which to the Board of Directors) in eco-technologies.
Environnement incorporates the concept in its defines and deploys company Assesses the company’s R&D
management systems by defining commitments IT and Administrative policy on the environment and sustainable development Institut Veolia Environnement
Systems Department and environmental health. strategies and policies. (IVE)
and deploying policies, objectives and procedures. Formalizes and deploys internal Forecasts economic, environmental
control procedures (transposed for Social reporting Ethics Committee (made up and social trends and challenges,
the divisions and business units). Managed by the Human of four independent members) based on the work of a network
Resources Department, which Ensures compliance with of experts. Serves as a forum
Veolia Environnement uses a variety of bodies and methods
Internal Audit Department defines and deploys company the “Ethics, Commitment for dialogue with the academic
to ensure its corporate responsibility is actively managed at all Assesses the company’s risk policy on human resources. and Responsibility” program community and civil society.
management, governance (alert system and ethics audits). www.institut.veolia.org
stages of the issues affecting the company. The Sustainable Sustainable purchasing
and internal control procedures
Development Department, which is directly accountable to independently and objectively reporting Risk Management Independent Sustainable
the Secretary General’s Department, drives and coordinates and contributes to improving Managed by the Purchasing Department Development Committee
these procedures using and Sustainable Development Coordinates the analysis of risks Helps Veolia Environnement
this process and encourages the adaptation of contract models a systematic and methodical Departments. that could affect the company’s move forward in its vision of
approach. activities and implements action and thinking on sustainable
and commercial offers in order to make sustainable development
Client reporting plans. development.
a priority and a lever for value creation. Our sustainable Fraud reporting Managed by the divisions’
Information transmitted to marketing departments. Research and Innovation
development policy involves a large number of internal (VERI)
the heads of internal audit,
stakeholders—functional departments, operating divisions IT and Administrative Systems Extra-financial rating Manages and coordinates R&D
Department and to the Accounts Managed by the Sustainable programs on priority company
and independent bodies—and therefore requires a structured issues.
and Audit Committee to report Development Department.
approach for managing all the challenges, from compliance cases of financial fraud.
Campus Veolia European Affairs Department
to forward thinking. Plans, coordinates and represents
Environnement
Personnel training to meet the company’s position to the
company needs. French authorities and European
Union institutions.
Veolia Environnement
Foundation
Financial assistance for projects
and volunteering of skills.
www.fondation.veolia.com
For further information, visit www.annualreport.veolia.com
Veolia Environnement — Managing corporate responsibility / Structured organization 7

9. 2.1 Coordinated anticipation of risks
Veolia Environnement’s growth is supported Overall management of risks Ensuring service continuity
by overall and coordinated management of A dedicated risk management organization has been rolled For its clients and customers, risk management allows
out for the company as a whole and each of its four divisions. the company to ensure service quality and continuity. Since
the risks associated with its activities. Providing
We use risk mapping to identify and rank risks and opportunities 2005, the Company has deployed processes for managing alerts
basic services that are essential to community and then implement the action plans needed. To approve ans business continuity plans at various levels, ensuring that
life and to industry demands constant vigilance risk reduction or risk transfer plans and monitor their service is maintained or resumed following unusual events. These
and preparedness: the management of the risks implementation, the Risk Management Department works have proved effective in a number of situations, particularly
delegated to us by our clients is at the heart with the Risk Management Committee, which comprises during simulation exercises.
of our company’s expertise. the heads of the functional departments at head office
and in the divisions. Each division also has its own Risk Company-wide social and environmental guidelines
Management Committee. Risk management supports our international growth, particularly
when it comes to environmental and social best practices.
Risk management involves close cooperation between the Risk Our program for putting in place company-wide social and
Management Department, the Internal Audit Department, environmental guidelines give us a firm foundation for this.
the Management Systems and Processes Department,
and the Sustainable Development Department, which oversee
the implementation of suitable risk reduction plans and
adherence to the procedures.
Veolia Environnement — Managing corporate responsibility / Structured organization 8

10. 2.2 Ethics and governance
In 2010, Veolia Environnement’s executive These documents are available on our intranet site and training In recent years, a member of the Ethics Committee visited Egypt,
management decided that the Secretary courses are also available to supplement them. the United Arab Emirates, Norway and Japan. In 2010, as part of
Furthermore, control procedures to ensure compliance with his duties, the chairman of the Ethics Committee visited sites in
General’s Department would be responsible
the company’s ethical principles are deployed in the functional Germany. The Ethics Committee has also conducted an internal
for applying and monitoring the company’s departments concerned and by the Internal Control Department. profile-raising communication campaign aimed especially at the
policy on ethics. Last, ethical questions have been systematically incorporated in company’s non-executive employees.
the auditing duties of the Internal Audit Department since 2008.
The “Ethics, Commitment and Responsibility” Program In 2009, an internal audit was conducted on the implementation Raising awareness and training employees
Veolia Environnement’s “Ethics, Commitment and Responsibility” of corruption prevention. Veolia Environnement uses training to ingrain its ethical culture
program(1), introduced in 2003 and translated into nine languages, in its employees. In 2004 and 2005, the “Ethics and Business Life”
is binding on all our employees. It is a corporate project designed to The Ethics Committee awareness-raising campaign targeted over 400 senior executives
guide the behavior of our employees in their day-to-day activities. In March 2004, we established an Ethics Committee comprising in France and other countries. From 2008 over 3,500 managers
Veolia Environnement uses a number of internal mechanisms independent members to examine any issues pertaining to the attended the “Competition law compliance” training program,
to reduce the risk of non-compliance with ethical principles: “Ethics, Commitment and Responsibility” program. It can be which consisted of seminars, support material and online
■ the “Competition Law Compliance Guide”(1) (published in 2008) contacted by any employee or can itself take the initiative to training in France and other countries. Lastly, the new “Preventing
and the “Guide to Managing and Minimizing Criminal Risk analyze any issue concerning ethics and conduct visits to check criminal risk exposure and raising awareness of corruption risks”
Exposure in Group Operations” (published in 2010) have been ethics in all of the company’s operations. The Ethics Committee’s training program was rolled out in France and attended by
distributed to managers; mission is to make recommendations concerning Veolia around 800 managers in 2010. It is being deployed outside
■ we also have mechanisms to ensure strict control over Environnement’s fundamental values, either on a subject it has France in 2011.
subcontracting. The Purchasing Charter(1) and the Purchasing analyzed at its own initiative or following questions submitted by
Code of Conduct have sections describing the ethical practices others. The Ethics Committee remains the ultimate body to receive
to be respected and promoted by anyone involved in company alerts that cannot be communicated to the managers in charge.
procurement; The committee reports on this whistleblowing system to
■ our contract model applying to commercial intermediaries and the Accounts and Audit Committee. The Ethics Committee’s code
business introducers also contains a detailed “ethics and of conduct stipulates that it must treat matters with strict
anticorruption clause” and; impartiality and confidentiality.
■ our sponsorship and patronage activities must follow a special
procedure(1).
(1) Documents available on our website.
Veolia Environnement — Managing corporate responsibility / Structured organization 9

11. 2.3 Representing our interests
Veolia Environnement contributes to reflection, In 2010, Veolia Environnement’s main contributions were as Last, Veolia Environnement renewed its listing on the register
discussions and work initiated by the French follows: of Interest Representatives of the European Commission.
Our Brussels employees in direct contact with the European
and European government authorities, – European institutions:
Parliament are also accredited lobbyists to it. In France,
professional associations, think-tanks, NGOs ■ Revision of directive 86/278/EEC on sewage sludge management.
Veolia Environnement is registered on the public list of interest
■ Development of the EU’s climate policy.
and international institutions on changes in representatives of the French National Assembly and is currently
■ Development of the EU’s energy policy (“Towards a New Energy
the management of environmental solutions. being added to the French Senate’s list.
Strategy for Europe 2011-2020”).
■ Assessment of the regional policy (5th Cohesion Report).
We share our expertise with these stakeholders at their behest ■ EU Initiative on Concessions.
or on issues that have a direct or indirect impact on our activities. ■ State aid and the Monti-Kroes package.
Given the importance of the European environmental and – The French Parliament, as part of hearings organized by the
internal market regulatory framework, we set up a European rapporteurs of the information missions and workgroups:
Affairs Department in 2010 to coordinate the representation of ■ “Treating household waste: what options in the wake of
Veolia Environnement’s interests to French and EU authorities. the Grenelle Environment Forum?”, French Senate report.
■ “Carbon contribution”, the workgroup of the French Senate’s
Commission for the economy, sustainable development and
spatial planning.
■ “European cohesion policy after 2013”, French Senate’s
European Affairs Commission.
■ “Implementation of the law on guidance and lifelong
vocational training”, National Assembly Report.
■ “What can researchers and public authorities do about
the influenza A (H1N1) virus and virus mutation?”,
the Parliamentary Office of Scientific and Technological
Assessment’s Report.
Veolia Environnement — Managing corporate responsibility / Structured organization 10

12. 3 Assessment and management procedures
Progress is impossible unless we measure what
has been done and evaluate what remains to
3.1 Internal procedures ANTICIPATING SUSTAINABLE
DEVELOPMENT ISSUES
be done. We have to manage performance
Environmental reporting
by making ambitious commitments, produce At the end of 2009, Veolia Environnement began
■ Around 100 indicators monitored since 2001 using
accurate and complete reports and take drafting the “Atlas of Responsibilities and Opportunities
the Environmental Information System (EIS).
into account external views and judgments. for Sustainability”. The objective is to use an e-device to
■ Procedures defined in the Protocol for the Measurement
centralize, region by region, information on external
As a company listed on France’s CAC 40 index, and Reporting of Environmental Indicators.
sustainability factors provided by international
Veolia Environnement is rated for its extra- ■ Deployed in 2,197 local business units where data are entered.
organizations and acknowledged institutional players.
financial performance based on published This tool stimulates thinking on the management of
information and statements. In addition, our Social reporting our sustainable development strategy. It enables us
■ Actual human resources situation measured using 200 social
company can solicit ratings. The Independent to improve our understanding of the characteristics of
indicators.
Sustainable Development Committee also the regions where we operate that could affect the
■ The scope covers 77 countries where the company operates,
implementation of our social and environmental
gives its opinion on the company’s CSR policy. for a total of 1,239 separate legal entities.
responsibility policies. In this way, it supplements
All this information allows us to see where ■ A network of 700 correspondents to collect annual data using
our internal information and helps us identify priority
we stand and serves as a guide for continuous dedicated software.
areas by region and by issue, and also feeds other
improvement of our sustainable development mechanisms and financial decision-making procedures
performance. Purchasing reporting with information on sustainable development.
Tracking of five performance indicators set up gradually
since 2009 for the following subject areas:
■ Sustainable development training and awareness-raising
of purchasing officers.
■ Relations with suppliers.
Client reporting
■ Annual assessment of client relations in each business using
relevant indicators.
■ Procedures defined in the “Client Reporting Procedures” guide.
Veolia Environnement — Managing corporate responsibility / Assessment and management procedures 11

13. 3.2 Selection by extra-financial indexes and company rankings
Extra-financial ratings and inclusion Evaluation by SAM ASPI Eurozone (Vigeo)
in specialized stock market indexes provide a In 2010, Veolia Environnement was not selected in the Dow Jones The European Index ASPI Eurozone comprises the 120 most
measure of companies’ sustainable development Sustainability Indexes (DJSI). The “best in class” methodology used competitive companies in terms of social and environmental
by the agency and applied to the “Water Utilities” sector led this responsibility listed in the eurozone. In 2010, Veolia
performance. The principal areas evaluated
year to the selection of only one company even though results of Environnement was included once again in the index,
are governance, human resources management, as it was from 2004 to June 2008.
other companies were good. The rating of Veolia Environnement’s
environmental performance, ethics, human sustainable development performance remains at a high level
rights, customer care, supplier relations and (71/100). The company’s scores were higher than 2009 for Classified “Prime” by Oekom Research
dialogue with civil society. 11 criteria out of 20 and received a grade above the average of In 2010, Veolia Environnement maintained the “Prime” category
the “Water Utilities” sector concerning 17 criteria. In addition, classification assigned by Oekom Research to companies that are
Veolia Environnement received the highest scores in six categories. among the best in their industry for social and environmental
Since 2003, Veolia Environnement has been selected for inclusion responsibility.
FTSE4Good in these indexes every year, except for 2005 and 2010.
Veolia Environment has been listed on the FTSE4Good since
The Dow Jones Sustainability indexes rate the performance Carbon disclosure project
2004. It is assessed by Eiris (United Kingdom) and Ethifinance
of companies that are leaders in sustainable development. In 2010, Veolia Environnement was ranked eighth out
(France). Considering that inclusion criteria are regularly reviewed
of the 2,500 largest companies on the Dow Jones Global Total of the 20 leading companies in the Carbon
and tightened, Veolia Environnement’s recurrent inclusion
Stock Market Index (DJGTSMI), only 323 were selected for inclusion Disclosure Leadership Index (CDLI) France
in these indexes is an acknowledgment of the company’s
in the DJSI World. Some 163 companies of the DJGTSMI composed in 2010 with a score of 82/100, which
performance and long-term commitment to sustainable
the European selection of the DJSI (Dow Jones Sustainability is an improvement on the previous year
development. The FTSE4Good index comprises about
Europe Index). (+6 points). CDLI selects the companies with the best quality
900 companies listed on the FTSE Global Equity indexes.
responses at the Carbon Disclosure Project (CDP) and rewards
These companies are selected on the basis of a series of
Ethibel Sustainability Indexes (Vigeo) transparent communication on climate change. The CDP’s aim
internationally recognized corporate responsibility and
Veolia Environnement’s inclusion in the Ethibel Excellence Europe is to assist investment decisions so they account for the effects
sustainable development criteria and standards.
and Ethibel Excellence Global indexes was confirmed in 2010, of climate change on companies. The association is supported
on the basis of assessments by Vigeo. The Ethibel Sustainability by several institutional investors with worldwide assets worth
indexes offer an overall view of the financial performance of the $64 billion.
world’s largest companies in terms of sustainable development.
These two indexes are composed of companies listed in the
Excellence Register compiled by the independent organization
Forum Ethibel.
Veolia Environnement — Managing corporate responsibility / Assessment and management procedures 12

14. 3.3 Solicited external ratings
Every year, for the last seven years, Veolia BMJ Ratings evaluates the company’s activities in its four
Environnement has asked to be evaluated by divisions and covers the environment, human resources, 2005 2006 2007 2008 2009 2010
BMJ Ratings, an extra-financial rating agency,
commercial function, purchasing and subcontracting, A++ A++ AA+ AA+ AA++ AA++
relationships with civil society and corporate governance.
so that it has an up-to-date assessment of how
Veolia Environnement’s latest rating, updated in 2011
it is meeting its corporate responsibilities. The Since 2008, targeted audits have been carried out in business for 2010, shows satisfactory results above the sector
results of these assessments help the company units in Europe (France, Germany, UK, Ireland, Spain, Estonia and standards. The overall performance was similar in all CSR
refine its sustainable development policy. Romania), Asia (China and India), Africa (Morocco), North America fields analyzed, even though the agency observed a dip
(USA) and South America (Brazil, Colombia, Ecuador, Argentina, in the governance field.
Mexico, Chile and Venezuela). The agency has maintained its positive rating regarding
the incorporation of energy/carbon issues and has noted
the energy services division’s commitment to structuring
the biomass supply chain. It also noted the formalization
of a robust corporate policy in workforce diversity and
non-discrimination and the operability of this policy’s
deployment in France. The agency observed that
the company has stepped up the incorporation of
extra-financial criteria in its cross-division purchasing
policy and also intensified CSR training and awareness
raising for purchasing officers. It also noted increased
extra-financial rating of key suppliers.
Veolia Environnement — Managing corporate responsibility / Assessment and management procedures 13

15. 3.4 The Independent Sustainable Development Committee’s view
of Veolia Environnement’s sustainable development policy
The Independent Committee (IC) has continued its work The IC has also reviewed the Company’s policies and programs
in advising the company on sustainability and corporate for research and development, in particular the Innovation
responsibility. The new Chairman of the company, Antoine Frérot, Accelerator and advances in biotechnology. Through our
has reaffirmed his commitment to the process and to his oversight of this work, we aim to ensure that Veolia retains
involvement in the deliberations of the Committee. In future, its leadership as a cutting-edge innovator—particularly
IC will have at least two formal meetings together with regular in water technology.
informal updates and advice. At our meetings in 2011, we would expect to look again at the
The IC has reviewed the work of the Ethics Committee, which issues raised by the Jerusalem Tramway (1), consider what lessons
it sees as carrying out an important function in a company with should be learned, and make recommendations to management.
so large and diverse a workforce. The IC has made a number We will also consider, among other things, Veolia’s sustainability
of recommendations to improve its workings including an targets and methodology and the company’s involvement
extension of its membership, the strengthening of its local and expectations for the World Water Summit in Marseilles
mechanisms, and the particular consideration of protection and Rio+20.
of workers in countries where cultural considerations militate
against filing legitimate complaints. In some countries with
no tradition of whistleblowing, special care needs to be taken
to ensure that management makes itself approachable John Gummer
in a way which is clearly understood by the whole workforce. Chairman of the Independent Sustainable Development Committee
(1) Up-to-date information is available on our corporate website: www.veolia.com/en/medias/focus-on/jlrt.htm
Veolia Environnement — Managing corporate responsibility / Assessment and management procedures 14

16. MANAGING
SOCIETAL
PERFORMANCE
15

17. Through the services it provides, Veolia Environnement develops deep roots in local
communities by playing a direct part in their everyday lives.
We feel it is our responsibility to develop trustful relationships with our stakeholders so that
they can help us better meet our contractual obligations and become a better corporate citizen.
Veolia Environnement’s contribution to these communities is a particularly vital one, since
the public services it manages are indispensable to ensuring a quality of life that is satisfactory
and consistent with the UN’s International Covenant on Economic, Social and Cultural Rights.
Our expertise and the original support solutions we provide enable us to help increase access
to basic services across a diverse spectrum of contexts and countries and thus meet the needs
of the public authorities that entrust us with the management of their services.
To manage the societal contributions of our activities more effectively, in late 2010
we set up a Social Commitment and Perspective Unit within our Sustainable Development
Department. The unit’s role is, on the one hand, to consolidate and develop our company’s
expertise in the area of social innovation so as to respond more effectively to the needs
and demands of local communities, public authorities and stakeholders for essential services,
and on the other to report on the company’s societal performance internally and externally.
Veolia Environnement — Managing societal performance 16

18. 1 Contributing to societal development
within the framework of contractual services
1.1 Dialogue and support
All of our company’s four divisions develop local initiatives To accurately assess social costs and benefits, develop
to inform local communities of the services they provide appropriate solutions and inform and support the families
and promote dialogue. These initiatives include neighborhood concerned, Veolia Environnement forms special teams locally
meetings, meetings with elected representatives and local that include employees who have been trained in social
non-profit organizations, visits to sites and “open-house” expertise. New types of tools are also created to make customers’
events to inform the general public. In Romania, for example, lives easier and meet their needs, such as:
Veolia Water helped set up an ongoing process to promote ■ mobile customer service centers near large urban areas
dialogue about its water service with its customers through that are available at times agreed with local populations,
weekly meetings with “CAB” building-management associations as is the case in Morocco;
and owner and renter associations. In late 2009, HABITAT, ■ prepaid solutions for water and energy service;
a Romanian consumers’ association, took over this process ■ neighborhood meetings to explain projects and take
and via the IDEA system that Veolia Water proposed and the suggestions and comments of local communities
set up, now provides Veolia Water with innovative suggestions into account.
submitted by customers to continuously improve service.
Providing social support to disadvantaged populations
is increasingly becoming a distinct activity for
Veolia Environnement.
Veolia Environnement — Managing societal performance / Contributing to societal development within the framework of contractual services 17

19. 1.2 Enabling access to basic services 1.3 Creating business models
that reflect social and
economic realities
One of the Millennium Development Goals (MDG) is to “Halve, The body of expertise Veolia Water has developed for this In the developing countries, waste, water, transportation
by 2015, the proportion of people without sustainable access purpose is referred to as ACCES and is based on the following and energy services are often provided by small companies
to safe drinking water and to basic sanitation services”. eight principles, of which the first five seek to adapt its activities and individuals, who are sometimes not even formally organized
Veolia Water is the largest private-sector provider of these provided under public service management contracts to and play an important part in the local and economic fabric.
services in the emerging and developing countries. Under public low-income customers, while the last three directly concern Modern service systems must therefore take these providers
service management contracts, Veolia Water works with Veolia Water’s corporate social responsibility: into account, by either eliminating the most unacceptable
the authorities that delegate the services to conduct programs 1. Do more with the same infrastructure. practices, such as child labor, while providing the social
to provide these basic services to communities that do not have 2. Implement pricing policies that are appropriate and socially and educational support this requires, or by seeking to find
water supply and sanitation systems. This activity has lead acceptable. a balance between conflicting interests.
Veolia Water to adopt a social approach that covers technical, 3. Increase the number of subsidized connections. For example, at the Presidente landfill site in Colombia, solid
financial, marketing, communication and legal aspects 4. Create a new collective, secure and personalized way of waste had traditionally been recovered by rag-collectors.
of its operations and to work with numerous stakeholders distributing water to people without access to home-service To improve the situation of this highly disadvantaged population
that offer expertise that is complementary to its own. pipes. while preserving its employment, Proactiva Colombia set up
5. Develop customer services that meet the needs of local a training and social integration program in partnership
communities. with local authorities. It includes a variety of actions: workshops
6. Explain how water should be used to optimize the benefits in health education, projects to create microenterprises, literacy
of access to services. training, efforts to improve self-esteem, and training in various
7. Research and Innovation: develop new service models occupations such as preparing compost and medicinal plants.
for rural environments.
8. Assess the impact of actions on the quality of life
of local residents.
For more information see the document titled “Veolia Water’s
ACCES expertise”.
Since Veolia Water began operations in Morocco, Gabon, Niger
and India, it has provided 2.6 million more people with access
to water and 1.3 million with access to sanitation.
Veolia Environnement — Managing societal performance / Contributing to societal development within the framework of contractual services 18

20. 1.4 Adapting tarifs and prices to local markets
Service charges for the users of water, energy and transportation In 2006, in the Greater Paris region, Veolia Water’s customer These programs require innovative marketing, engineering,
services are systematically set by the public authority under service department set up a special unit to assist customers financial and legal techniques to meet the needs and capabilities
each service contract. However, Veolia Environnement can who are having difficulty making their payments. This unit, of local populations. Achieving these innovations effectively
propose pricing arrangements to make these services more which works with social workers in the field, handled requires not only partnership with the public authorities
accessible to the most disadvantaged populations. Particular 1,700 individual cases in 2010. Its work involves helping and elected representatives, but also with sociologists
care must also be taken to ensure that service charges are customers pay their bills by providing those who benefit and other specialists (local neighborhood associations,
aligned with the demand for services and income of local from subsidized housing payments or are over-indebted with NGOs and other civil society actors), as well as with social
communities. In some countries, contractual pricing information and administrative assistance. This unit also entrepreneurs and local public services that can provide
commitments can be made under locally established policies participates in plans to rehabilitate apartment buildings complementary expertise.
to ensure sustainable development and reduce social disparities. and closely monitors the situations of buildings that are under To ensure that the families involved in these programs
rehabilitation or in receivership, working closely with community are able to bear these costs, in accordance with the principle
In Varna, Bulgaria, where households have little disposable officials, apartment building operators and receivers. In 2010, of social acceptability Veolia Environnment works with
income in comparison with heating costs, Veolia Energy – Dalkia some 310 cases involving such buildings were handled. its partners to design and implement innovative financing
has made a commitment to ensuring long-term price stability. mechanisms such as zero-interest loans of up to 10 years,
Efforts to increase energy production and the efficiency But solidarity is not just a question of the price charged to use social funds financed from various service revenues,
of facilities have made it possible to reduce energy costs a service. It sometimes also involves the cost of accessing and external sources of financing.
and therefore the price charged for heating service. The number the service, such as the cost of connection to a water or sewer In Morocco this policy has made it possible to connect
of unpaid bills has been halved and the average time required pipe or a power cable. In some countries that are experiencing 350,000 people to potable water systems since the first
to collect payments has decreased by three months. particularly rapid urban growth, at the request of its public- contracts were signed in 2002.
In addition to increasing the efficiency of energy production authority clients Veolia Environnement develops programs
and distribution, Veolia Energy-Dalkia can improve the insulation to provide subsidized connections to pipe and power systems
of its customers’ buildings and homes and thus help them reduce in accordance with the local social and economic context.
their energy bills.
Veolia Environnement — Managing societal performance / Contributing to societal development within the framework of contractual services 19

21. 1.5 Measuring the social impact of the company’s activities
People’s well-being, the smooth functioning of communities
and human development are key concerns at Veolia
Environnement and are at the foundation of everything we do,
covering the entire spectrum of water, transportation, waste
management and energy services, all of which are essential.
This means that the services we provide must gradually improve
the living conditions of local populations and have a positive
impact in general on human development. In some cases,
these improvements are clearly expected by clients and ASSESSMENT OF THE IMPACT OF SUBSIDIZED
are explicit contractual objectives. UTILITY CONNECTIONS IN MOROCCO
Yet we are also quite vigilant about the potential negative social
impacts that our activities may have locally. These negative In 2006, Veolia Environnement Morocco and its Tangier-based subsidiary Amendis decided to assess
impacts must be systematically controlled and minimized the actual impact on human development (health, well-being, education, independence, and so on)
in so far as possible. of the subsidized water and sanitation system individual connections it had completed in Tangier
As in the area of environmental performance, Veolia Environnement since 2002. This assessment was made in conjunction with the Abdul Latif Jameel Poverty
considers that it must now measure and evaluate the social Action Lab (J-PAL), an economic-research laboratory at the Massachussetts Institute of Technology,
impacts of its activities and implement action plans that improve headed by Esther Duflo, and a leading authority in the assessment of development programs.
the societal performance of the services it provides. This assessment was conducted in close cooperation with all stakeholders, which include J-PAL,
the City of Tangier (elected representatives and municipal services), the Wilaya (prefecture)
of Tangier-Tetouan, the Tangier-Assilah Province Health Ministry, Veolia Environnement
Morocco and Amendis. This was the first time that the randomized trial method was used
for a home-service drinking water program. The measured effects on social integration,
increased free time and well-being were clearly positive.
For more information see the brochure titled “Evaluation of the Impact of Social Connection
Programmes”.
Veolia Environnement — Managing societal performance / Contributing to societal development within the framework of contractual services 20

22. 2 Active social responsibility
2.1 Contributing to local development
Veolia Environnement contributes to the economic and social Promoting eco-citizenship and employment in these communities. Also participating in this project,
development of the areas it serves, not only due to the inherent with “MédiaTerre” and “Unis-Cité” which was a joint initiative of Veolia Environmental Services
nature of the services it provides but also through its investment Through its foundation and its Northwest and Ile-de-France and the Nantes metropolitan area, are a variety of local actors
in these areas and the direct and indirect jobs its services Delegations, Veolia Environnement has been working in that include the Maison de L’Emploi, the social integration
generate. partnership with the Unis-Cités agency to support the MédiaTerre associations L’Homme Debout and Océan, and the recycling
project, which aims to help lower-income families adopt more and refurbishing association Ecorev.
The company’s subsidiaries also develop local initiatives sustainable consumption behavior. This assistance—which Thanks to the REFLET project, some 15 visits to Veolia
to promote social integration through employment. among other things includes promoting the adoption of Environmental Services’ facilities and various employment
eco-friendly behavior to reduce waste and water and energy and furniture restoration workshops were organized for
Veolia Environnement, a founding member and supporter and by local communities in 2009 and 2010. This project has
consumption—is provided by young volunteers as part
of PIMMS of their civil service. The pilot project conducted so far enabled eight people with critically low resources to find
In France “Multiservice Mediation and Information Points”, in 2009-2010 involved 100 volunteers, including 64 in jobs, including three under permanent employment contracts
known as PIMMS, serve as a liaison between communities the two Delegations assisting 114 families. These young at a materials recovery facility, three temporary jobs
that have little access to public services and those who provide people, who received eco-behavior training from Campus and two with L’Homme Debout.
these services. Managed by local non-profit organizations, Veolia Environnement, receive support and guidance in civic
PIMMS have two objectives: helping people have acess to public The “100 000 Rencontres Solidaires” back-to-work project
education and career planning to ensure that this phase
services more effectively and helping people with limited Launched in France, in June 2009, by the Horizons Club
of their service will make them better citizens and improve
education and skills find employment. in partnership with the New Agency for Active Solidarity,
their employment prospects.
Veolia Water helped found the PIMMS in Lyons, France, in 1995. the “100 000 Rencontres Solidaires” project brings together
Veolia Environnement is now a founding member of UPIMMS, The “REFLET” project to get people back into society employees who volunteer their services and recipients of the RSA
the federation of PIMMS that owns the PIMMS trademark and employment earned income supplement. Working in small groups in partner
and manages the network of local PIMMS, in partnership Veolia Environmental Services in central-western France companies, the RSA recipients have the opportunity to make
with the French government, local authorities and other local is actively involved in the REFLET project, which seeks to contacts and get the advice they need to encourage them
actors and stakeholders. The company has played an active role help people with low employability near Nantes find jobs in in their search for employment. This project, which was extended
in creating 21 of the 42 PIMMS currently in operation in France the environment and waste management sectors, thereby in 2010 to Veolia Energy – Dalkia and Veolia Transport, was
and helps monitor their activities. strengthening social bonds and improving living conditions perceived very positively by the volunteers and 30 job-seekers alike.
Veolia Environnement — Managing societal performance / Active social responsibility 21

23. 2.2 Supporting innovation 2.3 New business models 2.4 The Veolia
through start-ups for the most difficult situations Environnement
Foundation’s
commitment in the field
The company-wide Veolia Innovation Accelerator (VIA) program Goalmari project assessment Since its creation in 2004, the Veolia Environnement
was designed to facilitate the identification, assessment The Goalmari project, conducted in partnership with Grameen Bank, Foundation has supported over 1,000 outreach, workforce
and implementation of the eco-technologies capable of most the winner of the 2006 Nobel Peace Prize, continues. Three years after development and environmental conservation projects
effectively meeting the needs of our clients as well as those of the creation of a joint subsidiary with Veolia Water, Grameen-Veolia and has an annal budget of €7.2 million.
the industry as a whole. VIA encourages cooperation between Water’s first drinking water plant in Bangladesh currently serves
start-ups and investors throughout the innovation process, two villages with a total population of 40,000. This plant’s objective Veoliaforce, the Foundation’s network of volunteer
providing access to the network of Veolia researchers and is to supply drinking water that meets WHO standards to poor rural employees, stands ready to assist in emergency
research tools, enabling full-scale testing of solutions at 200 pilot populations that live in areas where groundwater naturally contains humanitarian and international development aid
industrial facilities, and promoting technological innovations high concentrations of arsenic. assignments. In 2010, 100 new projects were undertaken
commercially by dissiminating them massively through This first social business venture is currently undergoing a sanitary and Veoliaforce volunteers spent 1,300 days in the field.
the company’s vast network of diverse and geographically and socioeconomic assessment under a research partnership
extensive operations. Just one year after the VIA program agreement that Veolia Water signed in early 2010 with the Innovation For more information see the Veolia Environnement
was launched some 200 applications had been evaluated and Social Entrepreneurship Institute of the French business school Foundation Report.
and five have led to partnerships with start-ups offering Essec. The objective is to assess the performance of these first two
the most innovative eco-technologies capable of meeting rural water projects and find ways to improve the business model.
the environmental challenges that lie ahead.
Support for Agrisud
For more information about Veolia Environnement’s research Since 1992, NGO Agrisud International has been supporting
endeavors, see the Research & Innovation section of the company’s the creation of very small family-run farms and agricultural enterprises
website at www.veolia.com for the Research & Innovation Report in underdeveloped countries, thereby stimulating economic activity
and the eight R&D program booklets (available in French only). that creates jobs and wealth by meeting local market needs and
thus reducing the need to import food. Veolia Environnement provided
financial assistance that enabled AgriSud to publish a guidebook
on agro-ecological practices in 2010 and is supporting a research
program conducted with the University of Antananarivo to try
to assess the impact of the very small farm models that Agrisud
has been implementing in Africa and Asia on carbon sequestration
and emissions.
Veolia Environnement — Managing societal performance / Active social responsibility 22

24. 3 Partnerships with international organizations
Veolia Environnement continued to work with major UN agencies ■ Veolia Environnement has joined the World Urban Campaign ■ The company has also joined the “R20” Climate Action Coalition
and various civil society organizations to achieve the Millennium and the “100 Cities” initiative, both launched by UN-Habitat composed of the world’s 20 largest regions and headed by
Development Goals and meet its commitments as a member at the World Urban Forum in Rio de Janeiro, Brazil, in February the United Nations Development Program (UNDP)
of the Global Compact. Through its development partnerships 2010. Veolia Environnement, in partnership with the city and the United Nations Environment Program (UNEP),
Veolia Environnement seeks to foster solidarity between regions of Rabat, Morocco, is to participate in these initiatives, which the objective of which is to establish Regional Climate Plans.
and communities by promoting the exchange of experience and will enable many of the world’s largest cities to improve For this novel initiative, Veolia Environnement will work with
knowledge between cities and towns and applying methodological their environmental performance and benefit from the the International Chamber of Commerce and the Association
approaches. Here are some examples: exchange of experience and knowledge in a decentralized of European Regions to provide a comprehensive analysis
framework of cooperation between the developing countries. of the factors that influence climate in a given region.
■ For eight years, Veolia Environnement has served as official Veolia Environnement sits on the World Urban Campaign
expert to the UN-Habitat working group that prepared Steering Committee, which held its first meeting in Shanghai ■ Last, Veolia Environnement is regularly invited by the United
the International Guidelines on Decentralization and Access in October 2010. Nations Global Compact to participate in focus and working
to Basic Services for All (i.e., water, sanitation, transportation groups on such issues as water resource management
and energy services). In 2010, the municipality of Aguascalientes, ■ For the past eight years, Veolia Environnement has also been (the Water Mandate), climate disruption (as a member
Mexico, where ProActiva Medio Ambiente, a joint subsidiary supporting the program to Strengthen Local Governance of the Caring for Climate working group at the Seoul conference
of Veolia Environnement and the Spanish company FCC, to Improve the Management of Urban Services, sponsored by in April 2010), and doing business in conflict zones.
operates water and sanitation services, served as a pilot site UNITAR, the United Nations Institute for Training and Research.
for testing the effectiveness of these guidelines in preventing Many country managers from the company’s various divisions
social exclusion. For this project the company developed contributed their expertise in such areas as urban mobility,
a methodological evaluation framework that it presented waste collection and water services management
at a meeting organized by the French Ministry of Foreign at 12 seminars organized in 2010.
and European Affairs in October 2010 and that could serve
to extend this approach to other regions on other continents.
Veolia Environnement — Managing societal performance / Partnerships with international organizations 23

25. COMMUNICATION ON PROGRESS
IN IMPLEMENTING SUSTAINABLE DEVELOPMENT BEST PRACTICE
Veolia Environnement regularly informs the Global Compact of the best practices ■ A public lighting program in the city of Fortaleza, Brazil, to foster social
it has implemented in the area of sustainable development and has reported 10 best development and sustainable urbanization by optimizing energy consumption,
practices so far in its “Communication on Progress”. Here are some examples: decreasing crime and highlighting the city’s architectural heritage; and
two public lighting projects in the cities of Kunming, China, and Sant Fost, Spain,
■ Integrated waste management in Alexandria, Egypt, with the implementation with specific energy savings targets.
of a clean development mechanism, in compliance with the Kyoto Protocol. ■ Integrated water supply and sanitation services in Aguascalientes, Mexico, using
This project was awarded the UN-Habitat’s Scroll of Honor Award in 2005 a new optimized management model that won the municipality a national prize
for exemplary cooperation between the public and private sectors and in 2007 for the efficiency of its water and wastewater systems in meeting
in particular for the excellent training and employability of waste collection the needs of the local residents, particularly those of the lowest income families.
and treatment personnel. ■ Two environment-friendly wastewater treatment processes: Géolide
■ Integrated management of water and wastewater services in Bucharest, (in Marseilles, France) and Organica (in Hungary) that reduce impact on urban
Romania, with quality performance indicators. environments and help protect biodiversity.
■ A public-private partnership to create and operate a Bus Rapid Transit (BRT) ■ Industrial waste management at ArcelorMittal’s plant in Vega do Sul, Brazil,
system in Bogotá, Colombia, that facilitates access to and from the city’s that deals effectively with environmental externalities.
poorest neighborhoods, ensures faster transportation and significantly reduces
pollution and the risk of accident. One novel feature of this partnership
is that Veolia Environnement is a member of a local public transportation
organization that is composed of seven companies, including several small
and medium-sized operators.
Veolia Environnement — Managing societal performance / Partnerships with international organizations 24

26. MANAGING
ENVIRONMENTAL
PERFORMANCE
25

27. A reliable, structured system was required to manage the company’s environmental impacts and compliance with
environmental regulations. Since 2002, the Environmental Management System (EMS) has served as the instrument
for improvement in the fields of environment and environmental health. Applied in all divisions and structured
around four levels of responsibility (corporate, division, business units and sites), the EMS enables the evaluation
of environmental impacts, compliance with the regulations and the company’s internal requirements, the setting
of targets and then the implementation of measures and action plans for achieving them.
The guiding principles for the EMS are defined and validated by the Environmental Liaison Committee, which reports
directly to the company’s senior management. The committee ensures overall consistency in the EMS by guaranteeing
a coherent view of the extent to which impacts are controlled and defines the strategic orientations on environmental
management every year. In addition, the EMS is overseen by the Environmental Management Committee, made up
of the environmental managers in each division, which transmits information and coordinates the action plans.
In 2007, the company put together a team of internal auditors with the purpose of ensuring direct control over EMS
deployment, including in particular checking regulatory compliance and the pertinence of the action plans.
TARGET MANAGEMENT OPERATIONAL MANAGEMENT EMS DEPLOYMENT CONTROL AND VERIFICATION
AND VALIDATION
Environmental Liaison Environmental Sustainable Development External data verification
Committee Management Committee Department, divisions and by Ernst & Young
(EMC) business units Sustainable Development
Department
ISO 9001/14001
EMS requirements policy certification audits
Divisions and business units
Quantified targets
Environmental information Internal EMS audits
system Environmental Performance
Department
General audit of the Environmental Management System (Internal Auditing Department)
Veolia Environnement — Managing environmental performance 26

28. In connection with our 2009-2011 environmental program, we defined quantified targets along with
commitments on trends for 10 key indicators covering the main environmental priorities. The values
set for these targets by the end of 2011 are indicative and may be revised, in particular depending
on changes in the company’s consolidation scope. The environmental indicators will be revised in 2011,
and the targets will be redefined at the end of 2011.
INDICATOR ACHIEVED AT TREND 2011 TARGET
DECEMBER 31, 2010
Environmental Management System (EMS) implementation 81% 85%
Environmental evaluation of priority facilities 85% >95%
in the past five years New methodology in 2009
Percentage of renewable and alternative energy 26% >25%
in total energy consumption
Carbon efficiency ratio of Veolia Energy – Dalkia 27.1% >24%
(overall reduction in GHG emissions/total GHG emissions)
Volume of water lost in water distribution networks 1,608 million m3 <1,615 million m3
(2008 reference scope) (2008 reference scope)(1)
Percentage of the population evaluated with water quality classes 96.1% 100%
Overall wastewater treatment efficiency for plants 83.1% >80%
with a capacity of over 50,000 equivalent population
Percentage of treated waste disposed of without any energy 53.0% 51.5%
or materials recovery
Percentage of waste treated in incinerators 93.4% >95%
with dioxin emissions lower than 0.1 ng/Nm3 (all sites)
Unit emissions of CO, HC and particle matter (PM) CO: 2.58 g/km CO: 2.36 g/km
by passenger transportation vehicles HC: 0.52 g/km HC: 0.48 g/km
Particles: 0.21 g/km Particles: 0.20 g/km
(2008 reference scope) (2008 reference scope)(2)
(1) The 2009 and 2010 pro forma figures compared with a 2008 base geographic scope are respectively 1,644 and 1,608 million m3.
(2) The 2009 and 2010 figures are compared with a 2008 base geographic scope representing 84% of the fleet of heavy road vehicles (excluding electric vehicles).
Veolia Environnement — Managing environmental performance 27

29. 1 Manage environmental performance
Percentage of EMS implementation (including ISO 14001 certified In 2010, the percentage implementation of the Environmental Management System (internal EMS and ISO 14001 certifications)
facilities) for the relevant activities* increased by 3 percentage points to 81% as a result of improvements in each of the four divisions. Additionally, this change is
essentially the result of the implementation of the internal EMS.
85%
78% 81%
77%
Veolia Environnement’s internal EMS is applied all the way through to business unit level, in accordance with guidelines specific
to each division and compliant with company requirements. They are equivalent to ISO 14001 requirements.
Locally, ISO 14001 certification provides external assurance that the internal EMS has been implemented in the business units.
In 2010, 48.3% of the relevant revenue was covered by ISO 14001 certification.
Since 2009, the Environmental Management System implementation criteria have been incorporated into the company’s
Environmental Information System (EIS), so that the level of internal EMS implementation can be calculated from the responses
entered for each of the standard EMS requirements. Following the methodology change in 2009, a new reporting process has
provided a more valid measure of the internal EMS implementation rate in the company. The outreach efforts that are underway will
2008 2009 2010 2011 be continued to reduce the risk of incorrect interpretation of EMS deployment requirements by operational staff.
Target
Percentage of priority facilities evaluated* An environmental evaluation was made of 85% of the total 1,454 priority facilities(1) over the past five years. This evaluation is,
(in the previous five years) within the context of the EMS, an assessment of the regulatory compliance with the applicable environmental texts. The assessment
methods are defined for each of the four divisions and so may differ depending on the nature of the activity(2).
>95%
91%
87% 85%
The number of priority facilities has increased slightly (1%), as has the number of evaluations performed in the year (2%). Even so,
the percentage of priority facilities assessed since 2006 dropped by 2 percentage points compared with 2009.
Not all the facilities due for assessment in 2010 were audited during the year; this was partly because some of the audits performed
included sites that had already been audited less than five years ago.
2008 2009 2010 2011
Target
(1) Priority facilities are those facilities with the most sensitive environmental impact for the company.
* Indicator with a quantified Target. (2) ISO 14001 certification audits, environmental audits (internal and external), and regulatory environmental assessments are in particular considered to be environmental assessments.
Veolia Environnement — Managing environmental performance / Manage environmental performance 28

30. 2 Combat climate change
Total direct and indirect GHG emissions In 2010, our total direct and indirect greenhouse gas (GHG) As in 2009, a reasonable level of assurance was obtained through
(million metric tons CO2 eq.) emissions fell 5% overall to 47 million metric tons CO2 external verification of the key data relating to climate change
equivalent. (total energy consumption, direct CO2 emissions and total direct
The main changes are as follows: and indirect GHG emissions). This assurance level was reached
4.9 5.0
■ For Veolia Environmental Services, direct emissions fell sharply directly through the work done by the main business units that
44.9 44.5 5.4
by 17% as a result of the divestment of the incineration contributed data to the company during the visits made this year
42.1
activity’s assets in the United States as well as the improved and indirectly through the historical trust acquired over previous
calibration of the methane emission calculation model used years, when moderate assurance was associated with the data.
at landfills, the installation of innovative biogas collection (See the Ernst & Young assurance report.)
systems, and the ongoing efforts to manage biogas collection.
This improvement work will be continued next year and
will also result in specific variations.
■ For Veolia Energy – Dalkia, the slight 2% rise in direct emissions
2.0 2.2 2.1
23.6 23.4 23.9 is in particular due to increased activity in China combined
with harsher weather in 2010. Indirect emissions fell 2%,
0.2 0.2
18.6 18.3
particularly as a result of lower purchases of heat from outside
0.2 production units.
15.2
METHODOLOGY
■ For Veolia Water, indirect emissions increased 11% compared
with the previous year(1). This increase is due to electricity For each of its activities, the company measures the direct
consumption for new contracts in Asia and updating emissions of the industrial processes, vehicles, facilities
the emission factor at sites in Reunion and Guadeloupe. and equipment it manages, and the indirect emissions from
2.2 2.5 2.9 0.4 0.1 0.1 ■ For Veolia Transport, direct emissions increased 7% because the electricity and heat it consumes. The greenhouse gases
0.2 0.3 0.3 2.4 2.5 2.6 of increased business (new contracts), and the incorporation concerned are:
of consumption of heating oil and gas at facilities. Indirect ■ CO2 emitted by combustion facilities, the incineration of
emissions rose 43%, because of the integration of Line 9 of the fossil content of waste and the combustion of fuel
08
*
10
08
09
10
08
09
10
08
09
10
08
*
10
09
09
the Seoul metro. Despite this rise, indirect emissions remain
20
20
20
20
20
20
20
20
20
20
20
20
20
by mobile sources (75.9% of direct emissions);
20
20
Veolia Veolia Veolia Veolia Veolia limited in comparison with the fuel consumption of vehicles. ■ CH4 from the biogas emitted by landfills that is not collected
Water Environmental Energy – Transport Environnement by the collection systems installed, and the combustion
Services Dalkia
of compressed natural gas (23.8% of direct emissions);
Direct emissions Indirect emissions ■ N2O from the waste incineration process (0.4% of direct
emissions).
(1) Following a reporting error in the electricity consumption at one site, the 2009 figure
for indirect emissions at Veolia Water and the company as a whole has been adjusted
to enable comparison with the 2008-2010 figures.
Veolia Environnement — Managing environmental performance / Combat climate change 29

31. Overall reduction in GHG emissions In addition, the company helps decrease overall GHG(1) is an example of the increased use of renewable energy sources
(million metric tons CO2 eq.) by reducing emissions at the facilities it manages and by our activities. Last, Veolia Energy – Dalkia applies its expertise
by enabling others to avoid emissions. in integrated energy management to achieve significant
In 2010, Veolia Environnement improved the overall GHG reductions in greenhouse gas emissions.
27.5
26.9 26.8 emission reduction by 3% with 27.5 million metric tons ■ For Veolia Environmental Services, the reduction reversed by
CO2 equivalent. 2%, attributable to the drop in energy recovery following asset
■ For Veolia Energy – Dalkia, the reduction improved by 18% as divestments in the United States. However, it should be noted
the result of more use of wood in the energy mix and improved that the GHG emissions avoided by recycling improved by 1%
recovery of alternative energies. The commissioning of following the upturn in metals recovery, especially in France.
19.1 19.5 19.1 a cogeneration plant fired by biomass in Biganos, France,
METHODOLOGY
7.0
5.6 5.9 Veolia Energy – Dalkia Veolia Transport
Reduction of CO2 emissions through: CO2 emissions avoided by:
■ using renewable and alternative energy instead of fossil fuels; ■ replacing transportation in private vehicles with mass transit.
2.1
1.25 1.21 ■ proper use of energy transformation facilities (energy
0.1 0.1 0.1
efficiency); Veolia Environmental Services
■ optimum supply of energy services (integrated energy CO2 emissions avoided through:
Veolia Veolia Veolia Veolia Veolia
management); ■ the sale of energy produced from the biogas collected
Water Environmental Energy – Transport Environnement
Services Dalkia ■ combined production of heat and electricity (cogeneration). at landfills;
■ the sale of heat and electricity from the combustion
2008 2009 2010
Veolia Water of incinerated waste;
Reduction of CO2 emissions and emissions avoided through: ■ the recovery of raw materials contained in waste.
■ the on-site consumption of part of the heat and electricity
from the production of renewable energy on site; Reduction of GHG emissions through:
■ the sale of energy produced from renewable energy sources ■ the on-site consumption of part of the electricity generated
on site (biogas from sludge digestion, hydraulic microturbines, by the incineration of waste and recovery of biogas;
heat pumps, etc.). ■ the collection of biogas at landfills.
(1) The overall reduction in GHG emissions corresponds to reductions in direct and indirect
emissions (CO2 not emitted as a result of certain operating methods implemented by
the company), and the emissions third parties avoid as a result of a company activity.
Veolia Environnement — Managing environmental performance / Combat climate change 30

32. Carbon efficiency ratio (Veolia Environnement) For a more accurate reflection of the company’s performance, Carbon performance of Veolia Energy – Dalkia’s
a method applying to the four business areas has been combustion facilities
developed. (metric tons of CO2 per thermal MWh produced)
59% The method takes into account all the positive impacts from
55% 54%
the overall decrease in GHG emissions. Refined from year to year, 0.294
the method provides a carbon efficiency ratio that reflects the 0.264 0.257
overall reduction in GHG emissions attributable to the company’s
activity and the total GHG emissions (direct and indirect) ➞
managed on behalf of its clients.
In 2010, the ratio was 59%, up 5 percentage points on 2009.
–10.2%
➞
Therefore, the positive actions and impacts of Veolia –2.7%
Environnement’s activity in decreasing overall GHG emissions
2008 2009 2010 offsets more than half of the GHG emissions attributable
to its activities.
2008 2009 2010
In addition, Veolia Energy-Dalkia, which has a specific objective
on this indicator, has also improved its carbon efficiency ratio
by four points. In 2010, Veolia Energy – Dalkia managed close to 115 TWh of input
energy, corresponding to direct emissions of 23.9 million metric
tons of CO2. While the figures were similar to those in 2009,
the “carbon content” of the heat produced(1) fell by 2.7%.
This improvement in carbon performance is related to:
Carbon intensity of revenue Taking a very broad approach, it is also possible to assess
■ the decreased use of coal and heating oil and its replacement
(million metric tons CO2 eq. by billion euros of revenue) the carbon intensity of Veolia Environnement’s revenue.
with gas for which the carbon equivalent emission factor
Between 2009 and 2010, the figure was stable at 1.4 million
is lower;
metric tons CO2 equivalent per billion euros of revenue. Thus,
1.4 1.4 1.4 ■ the increased use of wood in Veolia Energy – Dalkia’s energy
while continuing to develop its activities (2.5% of total revenue),
mix, especially in France. This result reflects the application
Veolia Environnement has been able to maintain the carbon
of the policy on increasing biomass use, which was developed
intensity of its contracts at a steady level.
in 2007 and implemented in 2008.
2008 2009 2010
(1) CO2 emissions associated with electricity generation are evaluated according
to the energy mix of the business unit.
Veolia Environnement — Managing environmental performance / Combat climate change 31

33. Methane collection rate in landfills Waste decomposition in landfills generates biogas that is To improve the reliability of these results, Veolia Environmental
(sites under operation) composed of between 40% and 60% methane. By mixing with Services is continuing its research, in particular for
air in the atmosphere, this biogas contributes to global warming, the determination of fugitive methane emissions, and has
all the more so as methane has a high global warming potential. undertaken to introduce an indicator/target to assess
48.9% 54.0%
46.5% its methane collection performance.
In 2010, fugitive methane emissions accounted for nearly
24% of Veolia Environnement’s direct GHG emissions. Given
this significant percentage, Veolia Environnement is motivated ESTIMATING FUGITIVE METHANE
to continually improve: EMISSIONS
■ the precision of its calculation methodologies;
■ knowledge of the typology of landfilled waste; Until 2008, various models were used to calculate theoretical
■ the performance of landfill cell capping techniques, biogas methane production at landfills in different countries
collection and its recovery as heat, electricity or as a fuel. (LandGEM in the United States, GasSIM in the United Kingdom,
2008 2009 2010 Swana-Ademe in France, NGERS in Australia and Tier 2, which
For this reason, the calculation of methane production at waste was recommended by the Intergovernmental Panel on Climate
landfills was fine-tuned this year with the integration in Change, for other countries). It is in fact impossible to
the model of a more precise typology of the waste (percentage continuously measure the emissions from sites directly because
of fermentable waste) at some sites. This change to the model is the sources are too diffuse.
the main reason for the reduction in methane emissions in 2010. Given the uncertainty due to differences in the design and use
Additionally, efforts were made to install innovative biogas of the various models (use of factors by default or calculated for
collection systems and improve management techniques, methanogenic power, type of waste, oxidation factor, the actual
resulting in improved performances at these sites. These two collection rate, etc.), Veolia Environmental Services has used
factors combined led to a reduction in methane emissions a single model (Tier 2) to consolidate the data from all its landfills
of 20.5%, and so to a 6 percentage points improvement in worldwide since 2009.
the collection rate, which was 54% in 2010.
Veolia Environnement — Managing environmental performance / Combat climate change 32

34. 3 Mitigate our impact
3.1 Limiting the discharge 3.2 Environmental health
of pollutants into water
Treatment efficiency of wastewater treatment plants* To assess the quality of the water it supplies throughout the The target remains to adapt our tools and organization
(capacity above 50,000 eq. pop.) world, in 2007, Veolia Water created the “Quality class” indicator to achieve a 100% coverage rate.
based on the chemical and bacteriological parameters deemed With respect to the population for which it was possible
90.7% 91.6% 92.8% to be priorities by the WHO(2). to calculate this indicator in 2010, the percentage served by
In 2010, Veolia Water was able to calculate this indicator for Veolia Water benefiting from water of excellent or high quality
96.1% of the total population it serves throughout the world, remained unchanged on the previous year (97.4% in 2010
80%
up 5.8 percentage points compared with 2009. This noticeable compared with 97% in 2009). The presence of chronic chemical
BOD5 treatment
improvement in the coverage rate is attributable to the rollout parameters reflecting a problem with the water resource
efficiency of a specific tool making water quality data collection more was noted for the remaining 2.6%.
80.9% 81.1% 83.1% Overall treatment reliable, along with personalized assistance for the
efficiency implementation of this indicator for new contracts. (2) The WHO considers five parameters as being widely distributed worldwide
and able to present a significant danger for human health due to water-borne exposure
Target set for overall
(Escherichia Coli, fluorides, selenium, arsenic and nitrates).
efficiency
2008 2009 2010 Sanitary quality of drinking water
In 2010, the pollution abatement rate expressed as BOD5 rose
1.2 percentage points to 92.8% – which results in highly effective 8.9% 9.7% 3.9%
treatment. This improvement is due to the excellent treatment
rates of new contracts, up to 97.3%, and a one-point improvement
Excellent or
in the performance at plants already operated. This applies 91.1% 90.3% 96.1% 97.4% high-quality water
particularly to Asia with the implementation of new biological
treatment systems at certain sites. Similarly, the overall
treatment efficiency(1) rose 2 points to 83.1% in 2010.
2008 2009 2010
Non-compliant
2.6%
water quality
* Indicator with a quantified Target. Percentage of Percentage of
the population evaluated the population evaluated
(1) A composite indicator that takes into account and weights the different forms
of pollution based on the impact analysis model developed by the French river basin
by water quality class solely by compliance rate
agencies: five-day Biological Oxygen Demand (BOD5), Chemical Oxygen Demand (COD),
nitrogen (N), phosphorus (P) and suspended solids (SS).
Veolia Environnement — Managing environmental performance / Mitigate our impact 33

35. 3.2 Environmental health 3.3 Limit air pollution
Managing dioxin emissions from waste treated in incinerators Waste incineration plant emissions (hazardous and non-hazardous) Unit emissions per passenger transportation vehicle*
is a major public health issue for the company. Veolia in grams/metric ton of incinerated waste (g/km)
Environmental Services has adopted the most stringent 18 16
regulatory yardstick, i.e., that set by the European Union. 55 52 14
In 2010, Veolia Environmental Services saw its performance 42 2.70 2.58 0.64 0.27
2.49 2.37 0.56 0.52 0.24
drop due to an incomplete data set outside the European Union. 0.49 0.21 0.20
Conservatively, the tonnage concerned has been considered 871 853
as having been treated in an incinerator that does not meet 763
the target.
83 91 87
CO unit emissions HC unit emissions Particle matter (PM)
2008 2009 2010 (g/km) (g/km) unit emissions (g/km)
Percentage of non-hazardous waste treated in incinerators
with dioxin emissions lower than 0.1 ng/Nm3*
SOx NOx HCl Dusts 2008 2009 2010 Target pro forma 2008
96.6% 98.6% In 2010, SOx, NOx, HCl and dust emissions at incineration plants In 2008, Veolia Transport developed a new reference base
93.4% >95%
declined due to the ongoing improvement in the performance of corresponding to 84%(1) of the vehicle fleet (excluding electric road
flue gas treatment systems and to the divestment of incinerators vehicles) and undertook to reach by 2011 three reduction targets:
in the United States and South Korea. ■ –5%(2) for carbon monoxide (CO), i.e., 2.37g/km;
Furthermore, the company is working on enhancing the reliability ■ –24% for hydrocarbons (HC), i.e., 0.49g/km;
of an indicator for measuring NOx and SOx for energy production ■ –27% for particle matter (PM), i.e., 0.20g/km.
(Veolia Energy – Dalkia).
At the end of 2010, HC and PM unit emissions had fallen 17%
and 22% respectively compared with 2008. These results are due to
upgrades to fleet vehicles compliant with the Euro 4 and 5 standards
2008 2009 2010 2011
Target
(up 22%), and the improved environmental performance as a result
of a greater number of vehicles being fitted with particle filters
* Indicator with a quantified Target. (up 15%).
The drop in the number of petrol vehicles (down 5%) reduced unit
(1) The 2009 and 2010 figures are compared pro forma with the 2008 reference geographic CO emissions by 5% compared with 2009, to a level comparable
scope representing 84% of the fleet of heavy road vehicles (excluding electric vehicles).
(2) After adjustment of the figures at March 31, 2010. with that in 2008.
Veolia Environnement — Managing environmental performance / Mitigate our impact 34

36. 4 Conserve ecosystems and biodiversity
The United Nations declared 2010 the “International Year
of Biodiversity” to boost awareness among the international
COMMITTED TO WORKING ALONGSIDE
community of the major issues surrounding the decrease THE IUCN
in the number of species and the declining quality of ecosystem
In 2008, Veolia Environnement signed
services.
a partnership agreement with the French
Committee of the International Union for
Within this context, and in direct conjunction with the first
the Conservation of Nature (IUCN). The aim of the action
two principles of the Convention on Biological Diversity (CBD)(1),
program defined by the two parties is:
Veolia Environnement remains committed in particular to:
■ for the IUCN to work with the company on integrating
■ conserving ecosystems and their vitality by characterizing
biodiversity in its corporate strategy;
the company’s impacts and dependency on ecosystems;
■ to underscore the directions adopted in Research and
■ restoring and developing urban biodiversity;
Development through a network of renowned experts;
■ protecting remarkable ecological areas;
■ to participate in boosting employees’ awareness through
■ understanding ecosystems better to inform, educate and boost
training programs.
awareness of biodiversity issues.
IUCN France has 55 members (ministries, state entities and
NGOs) as well as a network of around 250 experts. At the global
These commitments are set out in the “Biodiversity: taking
level, IUCN has had UN observer status since 1999.
action” guide that was widely distributed inside and outside
the company in 2010, and is available on the company’s website.
They are monitored by the Biodiversity Steering Committee,
which comprises members drawn from the departments
responsible for this topic in the company’s four divisions.
(1) The Convention on Biological Diversity (CBD) is an international treaty that was
adopted at the Earth Summit in Rio de Janeiro (Brazil) in 1992. It has three main aims:
• the conservation of biological diversity;
• the sustainable use of its components;
• the fair and equitable sharing of the benefits arising out of the utilization of genetic
resources.
Veolia Environnement — Managing environmental performance / Conserve ecosystems and biodiversity 35

37. The challenge for the company is to ensure the management of
its impacts while promoting the contribution its activities make
to conserving or restoring ecosystem services.
The impact of the company’s Interdependency Evaluation tools
activities
By their very nature, Veolia Environnement’s activities help Veolia Environnement needs ecosystems to function properly The company’s approach is above all based on identifying those
conserve ecosystems by reducing environmental pollution. in order to provide some of its services. Veolia Water makes sure zones where it needs to take priority action, and then rolling out
The services provided by Veolia Water and Veolia Environmental it can continue to benefit from the ecosystem service that an evaluation method to define an action plan.
Services collect and treat wastewater and waste to contain regulates the quality of water resources by working closely with Since 2010, the company has used information from the IBAT
various forms of urban and industrial pollution and prevent them municipal and industrial clients to reduce accidental and chronic (Integrated Biodiversity Assessment Tool) database developed
from contaminating the soil, air, and rivers, lakes and oceans. pollution, and to protect water withdrawal points. By doing so, by BirdLife International, Conservation International, IUCN
In energy services, the development of centralized district treatment to make the raw water potable can be kept to and the United Nations Environment Program in its “Atlas of
heating networks, operated under continuous supervision and a minimum. Responsibilities and Opportunities for Sustainability”. This tool
subject to strict regulations, helps reduce air pollution compared Veolia Energy – Dalkia ensures it benefits from the ecosystem was developed internally to identify, for any given site, all
to more polluting individual systems burning heating oil or coal. service that supplies biomass for its combustion facilities, the sustainability challenges involved, including its ecological
The promotion of public transportation also helps reduce air while rigorously protecting resources by directly controlling context. Ongoing additions to the Atlas will make it possible
pollution—the use of a private car can emit up to three times and ensuring the sustainable management of supply, both to include data from a geolocation data system for company
the amount of local air pollution per person transported than from forestry and agriculture. facilities.
a bus for a given trip (Source: Ademe, French agency for Lastly, Veolia Water’s wastewater services and Veolia Furthermore, the company has developed a biodiversity
the environment and energy management, 2007). Environmental Services’ composting and soil remediation diagnostic tool. The method chosen factors in the characteristics
Nonetheless, Veolia Environnement’s activities generate activities use biological processes to break down organic of the natural environment and the development and
secondary impacts, especially due to the consumption of components. The conservation of ecosystems is therefore management methods applied at each site in order to compile
natural resources and the residual pollution in the discharge central to the development and even the future of Veolia an action plan reflecting local issues. The aim is to give priority
from its facilities. Environnement’s activities. to implementing this tool at sites located in areas of ecological
interest. Its use will in particular encourage the implementation
of alternative management of the spaces at a greater number
of sites.
Veolia Environnement — Managing environmental performance / Conserve ecosystems and biodiversity 36

38. PROTECTION AND ENHANCEMENT Action plans Management of discharges and emissions
Conventional physical-chemical approaches that involve
OF WETLANDS at our sites measuring the pollutant content in the water discharged are not
on their own sufficient for evaluating the state of conservation
The many ecosystem services provided by wetlands have
Land management of the biological diversity of a given environment. Because
been identified, but the manner in which these services are
The aim here is to develop an alternative way of managing sites they largely focus on so-called “remarkable” species, current
qualified and enhanced can be improved. Consequently,
to drive standard methods forward by incorporating conservation conservation tools are also insufficient. Today, new overall
Veolia Environnement, Conservatoire du Littoral and Rivages
into the design and management of the land at operational sites. approaches are being developed to define the ecological state
de France (French association of authorities and organizations
In particular, this involves: of an environment. The results obtained with these new tools
managing natural coastal and lakeside areas) have committed
■ reducing the frequency of lawn maintenance by late mowing; are currently difficult to translate into operational management.
to a partnership with a dual purpose:
■ promoting the regeneration of native species; As a result, the company is developing its own expertise in
■ develop research on pilot projects or sites helping to compile
■ combating (through thermal, mechanical and manual weeding) biological tools to evaluate the level of danger and impact of its
a method for qualifying wetlands in terms of the services
invasive exotics that colonize the environment in an discharges on aquatic environments, its air emissions and its
rendered;
uncontrolled and rampant manner, pushing out native species; products (organic soil improvers and secondary raw materials).
■ develop awareness tools for these areas for stakeholders in
■ creating ground-level and aboveground havens for fauna In particular, the Research and Development teams are extending
regional development.
at these sites. the scope of their work to include ecological engineering that
can identify impact-reducing techniques (lagooning, grass filter
This program in particular reflects the company’s commitment to
strips, etc.), and developing expertise in environment restoration.
improving our knowledge of ecosystems and the appreciation
of our dependency on remarkable ecosystems.
Veolia Environnement — Managing environmental performance / Conserve ecosystems and biodiversity 37

39. Other examples of the many actions implemented at the sites
BIODIVERSITY AND WASTE LANDFILLS operated by Veolia Environnement are listed in the “Biodiversity: NAGOYA
taking action” guide available on the company’s website.
The rollout of the alternative space management policy in Veolia Environnement participated in the tenth meeting of
the past few years is ongoing, especially at the landfills operated the Conference of the Parties (COP10) to the Convention
by Veolia Environmental Services. on Biological Diversity (CBD) in Nagoya, Japan, by presenting
In addition to making space management sustainable, these
practices make it possible to maintain and extend ecological
Economic approach to the results of the study on the economic benefits from the reuse
of treated wastewater.
corridors in a manner that is fully compatible with landfill biodiversity and ecosystem This work is part of the company’s involvement in the Road Test
operation methods. services for the WBCSD’s Corporate Ecosystem Valuation (CEV), through
In France, two landfills (Graulhet and Saint-Cyr-des-Gâts) have a study carried out in Berlin, Germany, jointly with Berliner
incorporated into each operation stage (from the initial opening Wasserbetriebe. The aim of this study was to prepare a financial
As part of the commitment to improving our understanding
to the progressive closure of the storage cells), alternative and economic cost-benefit study of various water management
of ecosystems, Veolia Environnement is also pursuing work on
management of the spaces and maintenance of the remarkable and ground use scenarios.
promoting practices that are favorable to maintaining or
areas in order to conserve their ecosystem services. They were We also contributed by sharing our best practices through
improving ecosystem services, in particular through the
both awarded a label in 2010 for their excellent biodiversity involvement in the document titled “Responding to the
“Economics and Biodiversity” working group run by the Orée
management. Biodiversity Challenge – Business contribution to the CBD”
non-profit organization. This work has led to the publication of
In the United Kingdom, Veolia Environmental Services received published by the WBCSD.
a document entitled “Rendre compte des dépendances et impacts
the Biodiversity Benchmark certification from Wildlife Trusts for
en matière de biodiversité et des services ecosystémiques : Vers
its Croft Farm and Pitsea landfills in recognition of the company’s
la standardisation d’un Bilan Biodiversité” (Biodiversity and
continuous biodiversity improvement.
ecosystem services awareness of dependency and impacts:
Toward standardizing a Biodiversity Balance) (Orée/Foundation
for Biodiversity Research – October 2010).
Veolia Environnement — Managing environmental performance / Conserve ecosystems and biodiversity 38

40. 5 Protect natural resources
Percentage of waste per treatment process Percentage of waste disposed of*
(with energy or materials recovery) (without energy or materials recovery)
55.5%
51.6% 53.0% 51.5%
17.2% 17.8%
14.7% Energy recovery from landfills(1)
Energy recovery from incineration
18.0% 18.8% 16.8% Materials recovery
11.7% 12.5% 12.5%
2008 2009 2010 2008 2009 2010 2011
Target
Source-separated collection and sorting of the waste (wood, paper, board, glass, metals, plastics, In 2010, materials recovery remained stable. Progress was made in energy recovery from landfills
etc.) generated by industrial companies and households enables the waste to be recycled and (up 0.6 percentage points) through the increased percentage of biogas recovered (up 2 percentage
transformed into reusable materials. Waste that is not suitable for materials recovery can be points). The divestment of a number of incinerators resulted in the reduction in percentage of
treated with processes allowing energy recovery. It is possible to recover the heat produced waste incinerated with energy recovery (down 2 percentage points).
by incinerators fitted with energy recovery systems and to collect the biogas emitted by The percentage of waste disposed of(2) without energy or materials recovery increased in 2010
the decomposition of waste in landfills(1). to 53%.
(1) Calculated from a ratio between methane emissions produced and tonnages landfilled at the French sites of Veolia Environmental
Services. The changes linked to the typology of waste worldwide have not been yet applied to the constants used for this indicator;
this development will be reviewed in 2011.
(2) The following data is excluded from the indicator’s scope:
• waste generated by the treatment activities of Veolia Environmental Services (metals, hazardous waste, etc.);
• biological treatment;
• physical-chemical treatment;
• soil remediation.
* Indicator with a quantified Target. As a consequence, the indicator covers 93.5% of waste treated (excluding transfer) by Veolia Environmental Services.
Veolia Environnement — Managing environmental performance / Protect natural resources 39

41. Preserving energy resources
Renewable and alternative energy consumption The divisions contribute at different rates to the company’s overall consumption of renewable and alternative(1) energy.
(thousands of MWh – Veolia Environnement) Veolia Environmental Services accounted for 72% due to the incineration of waste and combustion of biogas recovered in its landfills.
Veolia Energy – Dalkia contributed 23% of this consumption due in particular to the use of wood, solar and geothermal power in
19,293 17,572 the energy mix in its combustion facilities. For its part, Veolia Water consumes renewable or alternative energy through the use of
19,074
biogas from treatment sludge and the purchase of hydro, wind and solar power. Last, Veolia Transport also promotes the consumption
of non-fossil energy by increasingly using clean fuels (biogas, diester and bioethanol). For example, the consumption of biogas was up
28,226 27,455 sharply in Sweden and Norway.
25,833
In 2010, Veolia Environnement’s consumption of renewable and alternative energy fell 5%, again due to the divestment of part of
2008 2009 2010 the incineration activity in the United States. Nonetheless, improved biogas recovery at landfills, the increasing use of biomass as
Renewable energy Alternative energy a source of energy and improved recovery of alternative energies at municipal waste incineration plants helped offset the decrease
at the company level.
Production of renewable and alternative energy
(thousands of MWh – Veolia Environnement)
5,603
5,799
5,990 Renewable and alternative energy production largely involves the direct consumption of renewable and alternative resources, mainly
by Veolia Energy – Dalkia. However, it also refers to the production of energy at facilities (methane from anaerobic digestion and
12,778 energy recovery at landfills).
10,709 12,179
Veolia Environmental Services and Veolia Energy – Dalkia contribute 46% and 50% respectively to the company’s energy sales.
In 2010, renewable and alternative energy production rose 2% because of the increase in wood consumption in the energy mix
of Veolia Energy – Dalkia and the improved recovery of alternative energy at municipal waste incineration plants.
2008 2009 2010
Renewable energy Alternative energy
Renewable and alternative energy as a percentage
of total energy consumption*
26.5% 27.7%
26.1% >25%
11.2% 10.2%
11.3%
In 2010, renewable and alternative energy as a percentage of the total energy consumed by the company was 26.1%, which remained
above target.
15.2% 16.4% 15.9%
2008 2009 2010 2011
Target
Renewable energy Alternative energy
(1) Alternative energies are natural or industrial sources of energy that would be lost if not immediately recovered. Renewable energies are indefinitely and inexhaustibly renewed or
* Indicator with a quantified Target. regenerated sources.
Veolia Environnement — Managing environmental performance / Protect natural resources 40

42. Saving water resources
Water distribution network efficiency Linear loss index in m3/km/day Water losses (in millions of m3)*
76.5% 77.1% 75.1% 75.3% 17.1
14.9
13.9 13.4
5,541 5,549 5,473 6,661
1,700 1,644 1,608 1,615 2,188
2008 2009 2010 2010 2008 2009 2010 2010 2008 2009 2010 2011 Target 2010
pro forma pro forma pro forma pro forma pro forma pro forma pro forma
2008 2008 2008 2008 2008 2008 2008
Volume consumed (in millions of m3)
Volume lost (in millions of m3)
In 2010, the efficiency of water distribution networks was 75.3%, Expressed as a linear index, water losses totaled 17.11 m3 per day Veolia Water’s target of reducing the volume of water lost by 5%
which is virtually unchanged compared with 2009. The same and per kilometer for 2010. In terms of the constant 2008 scope, by 2011 compared with the 2008 reporting scope.
applies at a constant scope, for which the efficiency rate was this linear loss index is 14.9 m3 per day and per kilometer, which
75.1%. The trend reflects the excellent performance of new corresponds to 1,608 million cubic meters of water lost, down
contracts and the persistence of a good efficiency rate for 2.2% compared with the volume of water lost in 2009, and 5.4%
existing contracts. compared with 2008. The results are therefore in line with
* Indicator with a quantified Target.
Veolia Environnement — Managing environmental performance / Protect natural resources 41

43. MANAGING
SOCIAL
PERFORMANCE
42

44. As the leader in environmental solutions, Veolia Environnement has particular economic
and social responsibility in all countries where it operates. Its industrial model has always
encouraged the implementation of a human resources policy across all businesses and
all countries.
Ensuring the company’s continued growth, whether viewed in terms of its globalization,
its commercial choices or the economic crisis, requires regularly reviewing its social model.
In 2010, Veolia Environnement reasserted its aims in this area and set the priorities for
the years ahead. Four strategic areas were identified with a view to maintaining skills
development, ensuring social equity, strengthening health and safety measures,
and ensuring solidarity within the company for all employees.
To carry out the necessary analyses and contribute to human resources management,
an annual HR reporting procedure was introduced in 2001. The data provides an insight
into HR management in the company’s various entities, in particular through the division
and geographic area breakdowns. A summary table of the main data is provided on p. 67.
Veolia Environnement — Managing social performance 43

45. Veolia Environnement worldwide
Europe
209,327 employees
North America
29,721 employees Asia-Pacific
33,406 employees
Africa/
Middle East
23,247 employees
South America
21,333 employees
More than 10,000 employees Between 5,000 and 10,000 employees Between 1,000 and 5,000 employees Fewer than 1,000 employees Fewer than 100 employees Campus Veolia Environnement
Veolia Environnement — Managing social performance 44

46. 1 Employment trends, a reflection
of the company’s business activities
At December 31, 2010, Veolia Environnement Veolia Environnement’s growth strategy has been implemented Breakdown of workforce by division in 2010
had 317,034 employees, 1.4% more than at over several years, as reflected in the comparative changes in Excluding Veolia Environnement head office employees: 1,821
its four divisions.
the end of 2009. In mainland France, there were
■ Veolia Water remains the company’s main division with
100,840 employees, including 13,300 managers, 96,260 employees in 67 countries. Its workforce increased 0.5% 30% Veolia Water: 96,260
compared with 100,524 and 13,141 respectively 17% Veolia Environmental
over 2009. This growth is attributable to the development of Services: 84,740
in 2009. its positions internationally and the loss of employees in France
Veolia Transport: 80,756
following the phasedown of certain activities with Suez
Veolia Energy – Dalkia: 53,457
This controlled growth is the result of: Environnement.
■ Scope effects: the balance from mergers & acquisitions and new ■ Veolia Energy – Dalkia has 53,457 employees and experienced
contracts for the one part, and divestment & subsidiarization and 1.7% growth in its workforce. In 2010, this business activity 27%
loss of contracts for the other, with an end result of 637 additional entered Turkey but closed operations in Algeria and Saudi 26%
employees, illustrating an overall balance. This relative stability in Arabia.
the company does, however, mask some significant movements. ■ Veolia Environmental Services, with 84,740 employees, saw
Change in workforce by division
■ Organic growth: the difference between hires and departures its workforce shrink 1%. After the divestment of the industrial
is an additional 3,807 new employees. cleaning business in 2009, the division continued to refocus its Change 2009-2010
business by acquiring market share in Estonia, Ukraine, Latvia, Average annual change 2006-2010
16,758 internal transfers
Lithuania and Qatar, while at the same time closing down
Departures Entries 4.7%
operations in Romania and South Africa. 4.1%
–38,361 Unlimited- +35,748 ■ Veolia Transport gained an additional 4% employees, bringing
term
2009 workforce: 312,590
2010 workforce: 317,034
contract its total workforce to 80,756, in particular because of its
5,803
fixed-term contracts business in France and the United States.
converted to unlimited- 1.7% 1.9%
term contracts
–15,225 +21,645 0.5%
Fixed-
term
contract
–0.3%
–1.0% –1.1%
–13,327 Change +13,964
Veolia Water Veolia Energy – Veolia Veolia
in scope
Dalkia Environmental Transport
Services
Veolia Environnement — Managing social performance / Employment trends, a reflection of the company’s business activities 45

47. In all businesses, the company continued to grow internationally. Breakdown of workforce by geographic area in 2010 Change in workforce by geographic area
In Europe, especially in France, contract renewals and the
distribution of assets made it possible to seize the best
Change 2009-2010
opportunities. Average annual change 2006-2010
7% 34%
Europe remains the company’s strongest geographic area, 9.2%
8.9%
accounting for almost two-thirds of its workforce, despite a 0.6% 7%
drop in the number of employees. In the past five years, this area 7.2%
has gained 12,502 employees. In 2010, the aim was to refocus 5.9%
32% 5.5%
certain activities through contract renewals and new contracts. 9% 5.1%
For example, Veolia Environmental Services withdrew from 4.4%
Romania but entered Ukraine, while Veolia Energy – Dalkia
withdrew from some business areas in Poland but stepped up its 11%
1.5%
activity in the Czech Republic. In France, the contract with SEDIF, 0.3% 0.5%
the Greater Paris water authority, was renewed for 12 years,
and Veolia Transport won new intercity contracts. Europe (excluding France): 108,487
France: 100,840
–1.4%
In the past five years, the Asia-Pacific area gained Asia-Pacific: 33,406 –2.1%
16,017 employees, an increase of more than 90%. At the end North America: 29,721 Europe France Asia- North South Africa/
of 2010, there were 1,393 more employees than at the end of (excluding France) Pacific America America Middle
Africa/Middle East: 23,247
the previous year (a 4.3% increase). China gained 616 employees East
South America: 21,333
and India 475. Veolia Water also entered into Indonesia.
In 2010, the workforce in North America rose by 5.5%. The
United States ended the year with 1,548 additional employees
attributable to the growth of the company’s transportation
business. With 27,533 employees, it is the company’s second In the Africa/Middle East area, the 7.3% growth in the workforce
largest geographic area. was driven by Morocco, especially the waste management
division and the transportation contract in Rabat. Veolia
In Latin America, workforce growth, particularly in Brazil and Environmental Services in Egypt and Veolia Water in Qatar
Mexico, was further augmented by the entry of Peru. As a result, also contributed to this growth. In the past five years,
the number of employees grew by 5.9% in 2010, or 32% in the Africa/Middle East area has gained 8,979 employees,
five years. or an additional 63%.
Veolia Environnement — Managing social performance / Employment trends, a reflection of the company’s business activities 46

48. 2 Managing employees to reflect local needs
The nature of the company’s businesses requires Breakdown of employees by socio-professional category Percentage of female employees by socio-professional category
local management of personnel. The structure
9% Men Women
of the company’s workforce therefore reflects
Manual workers /
the labor markets in which we operate. Operatives: 197,573 23% 20% 12%
Supervisory /
Of the company’s total workforce, 63% are manual workers Technical: 51,624 59%
and 80% are men. Depending on the level of an activity’s Office workers: 38,753
development and the structure of the local labor market,
12%
Managers: 29,084
these ratios are subject to considerable variations. In Lebanon,
for example, 15 of the 29 employees are managers, and women
63%
occupy 40% of the positions. In Brazil, 76% of the 6,531 16%
employees are manual workers and women account for 37% Managers Supervisory / Office Manual
of the workforce for cultural reasons specific to this country. Technical workers workers /
Nonetheless, these local situations aside, the company’s Operatives
commitment to diversity is very active and the percentage
Age pyramid (average age 41.8 years)
of women in the workforce at Veolia Environnement is tending
to increase (see p. 51). Men (average age 42.2 years) Women (average age 40.3 years)
4.5% Over 60 2.5%
The distribution of employees by age bracket reflects the
demographics of the countries where Veolia Environnement 9.5% 56-60 6.9%
operates. The average age in the company is 41.8 years. It is 13.3% 51-55 10.6%
higher in Europe (42.5 years) and the United States (44 years) 15.0% 46-50 14.4%
than in Africa (39 years) and Asia (39.7 years). The distribution
14.5% 41-45 16.0%
of employees by age bracket also corresponds to the structure
13.7% 36-40 15.0%
of the labor market. In France, in the company as a whole,
employees aged over 50 account for 24% of the workforce. 12.0% 31-35 14.0%
This figure rises to 41% in Sweden and 49% in the Netherlands. 10.4% 26-30 12.8%
The Nordic countries are pioneers in employment management, 6.8%
6.0% 20-25
especially for the older worker cohort.
1.1% Under 20 1.0%
Veolia Environnement — Managing social performance / Managing employees to reflect local needs 47

49. Whatever the characteristics of the labor market where Breakdown by type of contract Hires and departures 2010
we operate, Veolia Environnement subsidiaries are committed
to promoting stable employment: 93% of employees have
an unlimited-term contract.
Unlimited- 13,964 Gain of new contracts
Given the continuous growth in our businesses and employee term contract
turnover, Veolia Environnement has to continually hire. In 2010, 93%
the employee turnover rose slightly to 13.3%, but this figure
is compared with 2009, an exceptional year because of the
economic crisis. Overall, the trend is downwards when viewed 35,748 Hires under unlimited-term
contracts *
over five years. Fixed-term
contract
7%
Voluntary departure (16,598) is the main reason for employees
leaving. In 2010, 722 employees were made redundant in some
30 entities, especially in Veolia Environmental Services in the 21,645 Hires under fixed-term
contracts
United States (202 employees) and in Norway (63 employees);
Veolia Water in Armenia (60 employees); and Veolia Energy – Change in employee turnover
Dalkia in Romania (43 employees). This type of departure involves
16,598 Voluntary departures
consultation managed locally reflecting the relevant entity’s 16.3%
legal and employment situation. 14.9% 14.8% 2,028 Contract terminations by mutual consent
13.3% 10,408 Redundancies
12.6%
Employee turnover and business growth led Veolia Environnement
to hire 57,393 employees, of whom 35,748 directly under 15,225 End of fixed-term contracts **
an unlimited-term contract. 4% of these external hires
were managers. Additionally, 26% of the hires under fixed-term 3,385 Retirements
5,942 Departures for other reasons
contracts were transformed into unlimited-term contracts
in the year. 13,327 Contract losses
In mainland France, there were 14,841 external hires,
2006 2007 2008 2009 2010
of whom almost 7% were managers.
* Excluding fixed-term contracts that evolved into unlimited-term contracts (5,803).
** Including fixed-term contract departures due to unlimited-term hires (5,803).
Veolia Environnement — Managing social performance / Managing employees to reflect local needs 48

50. A Veolia Environnement employee works an average of 1,613 hours
a year (excluding overtime). To meet additional business
or to replace an employee, fixed-term contracts, temporary
employment and overtime are contingencies used to varying
degrees depending on the country. From the graph, it is
evident that North American entities, especially those in the
United States, tend to resort to overtime, whereas in Europe, Fixed-term contracts, temporary employment and overtime
the preference is to hire additional employees on fixed-term
contracts. Percentage of fixed-term contracts
Percentage of temporary employees
Number of hours overtime per employee in 2010
Whereas the average number of overtime hours dropped
markedly by 6% between 2008 and 2009, it rose again in 2010
to 84.5 overtime hours on average per employee (compared with
78 in 2009). This figure varies by a factor of one to three between 165.7 162.6
Europe and the Africa/Middle East and North America areas.
The use of temporary employees rose marginally from 4.1% to 4.4%.
109.9 107.7
57.4
0.3% 3.6% 6.6% 7.6% 8.8% 3.9% 5.9% 3.9% 6.7% 4.4%
North America Africa/Middle East South America Asia-Pacific Europe
Veolia Environnement — Managing social performance / Managing employees to reflect local needs 49

51. 3 Four HR priorities underpinning
Corporate Social Responsibility
In 2010, the Human Resources Department (representing around one-third of the company’s employees). Type of collective bargaining agreements signed in 2010
defined a three-year strategic plan based Its implementation initially involved the allocation of resources
to help negotiation, and also the creation of a partnership with
on four priorities.
the Institut d’études politiques in Paris (France) and the
56% Pay
“Dialogues” association. The aim of this partnership is to
11% Other
strengthen the management of union careers through training
Labor-management
3.1 Guarantee social equity courses planned throughout 2011. dialogue
Health and safety and
Structuring labor-management dialogue worldwide Additionally, a new internal assessment campaign of the quality working conditions
Labor-management dialogue is a key component of the of labor-management dialogue was carried out in December 20%
company’s human resources policy, and is structured at several 2010. It revealed overall satisfaction in the 21 countries covered 13%
levels in the organization: by the European Works Council, and reiterated the areas
■ at the subsidiary or entity level, which remains the most for improvement to be explored in 2011, in particular in Poland
natural forum for negotiations. It is at this level that many and Portugal.
issues impacting on employees’ day-to-day activity are
addressed and discussed with the objective of reflecting as Worldwide, 95% of the company’s employees are covered
by a worker protection mechanism. This means that in these
2,143 collective bargaining
closely as possible the entity’s economic and employment
conditions (working hours, leave, training, salaries, etc.); countries at least one agreement was signed and/or an employee agreements
■ at the country level, which includes the joint information representative nominated in 2010. The number of agreements
and negotiation bodies addressing all national issues;
■ at the transnational level in Europe through the European
signed increased 4.7% between 2009 and 2010, and the number
of employee representatives also increased 1.7%.
95% of employees covered
Works Council, which represents almost two-thirds of the by a worker protection mechanism
company’s workforce. With regard to the countries less well covered by worker
protection systems, the company contracted Vigeo in 2008 to
To consolidate the basis for the company’s commitment and its perform audits in Niger and Egypt to gain a better understanding
of the cultural context, and in particular to identify the hurdles
15,822 employee
labor policy, a new collective bargaining agreement specifically
to overcome in implementing labor-management dialogue.
representatives
covering the quality of labor relations was signed in February
2010 by the general management and all unions in France
Veolia Environnement — Managing social performance / Four HR priorities underpinning Corporate Social Responsibility 50

52. Promote diversity and combat discrimination Priority employees under the “Diversity” approach as a percentage of the total workforce (at December 31)
The “Diversity Label” awarded in July 2010 to 132 entities
in France is testimony to Veolia Environnement’s commitment 2008 2009 2010
to combating discrimination and promoting equal opportunity.
After a comprehensive study launched in 2007, the “Diversity
& Equal Opportunity” action plan defined three levers for action 25.1% 25.8%
24.2%
22.1% 22.6% 23.0%
and five categories of employees for which actions needed 21.4%
19.9% 20.0%
to be implemented: women, employees of various ethnic origin,
disabled employees, older workers and future top managers.
The actions implemented in favor of these so-called “priority”
populations enabled the company to improve the employment 1.6% 1.6% 1.7%
rate of older workers (aged 50 and over) and disabled employees
in 2010. The position of women in managerial positions is
continuing to improve: they accounted for 24.7% of external hires >50 years Women Female managers Disabled employees*
of managers in 2010.
* The number of employees having declared they have a disability as a ratio of the total workforce at December 31, and not the ratio of disabled employees according to the definition
For more details, consult the “Diversity is our Wealth” brochure of Agefiph (a French non-profit organization that specializes in providing assistance in the employment of disabled people).
and the “Diversity” video on the company’s internal website.
The main outcomes from this “2008-2011 Diversity & Equal
These systems provide employees with a gateway to expressing ■ cross-division management of seven disabled employee
Opportunity” plan include:
any discomfort, in the event of discrimination, harassment projects dealing with access to premises, workstation
■ the adoption and gradual international rollout of a common
or any other ethical problem that may arise in the workplace. arrangements to promote job retention of disabled employees,
recruitment portal, which will ensure compliance with
and the development of subcontracting to the protected
the recruitment process and non-discriminatory management
Other actions: employment sector;
of job mobility;
■ training for recruiters, the diversity network, trade union ■ the signing in France of an agreement on older workers
■ the use in France of a tool to create awareness of and assess
representatives, employee representation entities, (aged over 50).
stereotypes and prejudiced behavior, in partnership
and managers in the conceptual and legal framework
with the Discrimination Observatory;
of discrimination, as well as how to manage this risk;
■ the creation and management in France of a unit to hear and
■ the inclusion of a chapter on union careers in the agreement
process discrimination complaints, as well as provide “diversity
on labor-management dialogue signed in February 2010
referee” training for this system. It complements the action
in France;
of the Ethics Committee, which remains the independent
reference body for all questions regarding compliance
with ethics and human rights in the company.
Veolia Environnement — Managing social performance / Four HR priorities underpinning Corporate Social Responsibility 51

53. Toward reducing the pay gap between men and women Gap between the average pay of men and women employees
Pay policy rules are set locally as a function of the labor market
and local situation.
2008 2009 2010
At the company level, there are several overarching trends:
average annual men’s pay is 13.4% higher than that of women,
and for male managers it is 22.8% higher than that of female
managers.
Pay gaps vary considerably from one region of the world
to another; the breakdown of female employees by – 13.9% – 13.4%
socio-professional category or age does not explain these
– 17.3%
differences. On average within the company in 2010, the gross
annual wage was 27,222 euros; 23,771 euros for non-executives
and 60,038 euros for managers.
Gap between the average pay of men and women employees
2010 2009 2008
Promote employee share-ownership
Since 2002, Veolia Environnement has offered its employees –5.8%
the possibility of investing in various instruments under the – 6.2% France
Employee Stock Purchase Plan. Initially reserved for employees –13.0%
in France, this option has gradually been extended to other –14.3%
countries. In 2010, 1,692,862 new shares, representing –16.2% Europe (excluding France)
–20.3%
0.34% of the company’s share capital, were offered to
185,000 employees in 24 countries. – 39.5%
Today, there are around 56,500 employees who own shares – 39.9% Asia-Pacific
– 43.0%
in Veolia Environnement; they hold 1.91% of the share capital.
– 29.7%
– 30.7% South America
– 26.3%
– 18.4%
– 18.1% North America
– 22.5%
3.1%
Africa/Middle East 19.2%
38.8%
Veolia Environnement — Managing social performance / Four HR priorities underpinning Corporate Social Responsibility 52

54. 3.2 Boost solidarity
Job mobility and the employment ladder Even so, job transfers that result in changing subsidiaries within Support for the most vulnerable
Veolia Environnement has for many years promoted internal Veolia Environnement remain limited as they accounted for only In 2009, an Active Solidarity Plan was implemented in consultation
transfers for all categories of employees, with the aim of enriching 9.8% of all movements. Transfers between divisions, in particular, with the French Works Council to support the most vulnerable
their careers throughout their professional life. accounted for only 1.6% of the total. employees in a difficult economic environment.
The Human Resources and Skills Planning agreement signed “Allô Solidarité”, an organization that employees can contact to
To encourage this mobility, the “Veolia pour tous” (Veolia for in France on February 3, 2011 (known as “GPEC” from its name in talk about their problems and to obtain support, was implemented
everyone) program was introduced in France. It supports French) supplements the 2004 agreement on “skills development with the backing of an external non-profit. The system’s pilot
employees with their mobility project, in particular by providing and professional training”. This new agreement aims to make phase initially concerned the Greater Paris area, which has more
them with mobility correspondents and online tools enabling recruitment and skills requirements clearer in each of the than 30,000 employees. A card with the freephone call number
them to apply for positions within the company. company’s businesses and to encourage job transfers between and basic explanations was included with pay slips. After the first
subsidiaries. year’s operation, more than 600 cases had been handled, mainly
In 2010, there were 16,758 internal job transfers within Alongside job transfers, 10,968 promotions were recorded concerning housing and/or financial issues; of these, 250 cases
the company, an increase of 3.8% on 2009. As a result, 9.8% in 2010 within Veolia Environnement subsidiaries, covering 3.5% were considered urgent. Given these initial results, “Allô Solidarité”
of managers and 4.8% of non-managers took up the possibility of the workforce present at December 31, 2009. was extended at the end of 2010 to three French regions with the
of job transfers in 2010. most pressing housing issues: southeastern France, Rhône-Alpes
and North & Normandy.
Job mobility in 2010
90.2% Within a subsidiary
Between subsidiaries
within the same division
Between divisions
1.6% 8.2%
Veolia Environnement — Managing social performance / Four HR priorities underpinning Corporate Social Responsibility 53

55. 3.3 Developing professional skills
Improving employees’ training qualifications Average number of training courses per employee Total number of training hours
Professional training and skills development for all employees are
also a priority for Veolia Environnement. Training courses are Male Female
2.4 6,526,100 6,060,027
provided throughout the employee’s career, with targets to maintain 2.2 2.3 5,687,612
a level of skills in accordance with the company’s activities, improve
1.8
people’s employability and provide fulfilling career paths.
In 2010, the training budget equated to 2.24% of the total payroll,
relatively unchanged on 2009. The number of training courses
per employee has risen steadily over the past four years. On average,
each employee has access to 1.9 training courses per year. Of the 27.8% 28.8% 29.6%
participants in training courses, 23% are women (whereas women
represent 20% of the total workforce), and 89% are non-managers. Managers Non- Managers Non- 2008 2009 2010
managers managers
Veolia Environnement has adopted an ambitious training policy Percentage of training hours devoted to safety
that is evidenced in particular by the introduction of new Campus
Veolia centers focusing on local needs. This worldwide network
now has 18 campuses and training centers in 12 countries, Percentage of payroll devoted to training
covering two-thirds of the company’s employees (see map
on page 44). These centers develop and deliver training that 2008 2009 2010
corresponds to the businesses’ needs. There are 95 full-time 3.2% 3.2%
3.1%
trainers and 893 employees are assigned from around the
2.4% 2.4%
company to deliver courses, as they are best placed for passing
1.9% 2.0%
on their professional skills. Additionally, the company has adopted 1.8% 1.8% 1.8%
1.6% 1.7%
1.4% 1.4% 1.5% 1.3%
the model of a “diploma-conferring company” and offers a range 1.3%
1.0%
of certificates and diplomas in its four business areas, at all levels
of training. In France, there are eight vocational certificates, three
secondary vocational diplomas, two undergraduate degrees and
one master’s degree; four additional certificates are being prepared Africa/Middle East North America South America Asia-Pacific Europe France
by the Campus network. (excluding France)
Veolia Environnement — Managing social performance / Four HR priorities underpinning Corporate Social Responsibility 54

56. Hire through work-study programs Change in the number of work-study contracts and internships
Veolia Environnement has asserted its commitment to providing
young people with access to employment and wants to continue Work-study Internships
to focus on work-study programs. In 2010, 1,486 contracts of this
type were signed in France, representing 10% of external hires,
similar to the level in 2009 (11%).
The number of people on work-study programs at December 31,
2010 was down 5.5% compared with 2009, but at the same time 3,337 3,505 3,749
the number of people on internships was up 7%, providing
opportunities for young graduates to gain experience.
5,096 4,925 4,652
There are also 108 employees on a VIE (Volunteer for
International Experience) contract providing a breeding ground
for young managers destined to work abroad.
2008 2009 2010
Veolia Environnement — Managing social performance / Four HR priorities underpinning Corporate Social Responsibility 55

57. 3.4 Strengthen health and safety
In 2008, the company sought to boost its health
and safety action plans. A company Health
3,149 bodies dedicated to studying
Information
health and safety issues
feedback
and Safety Department was created, and seven
Co
m
m
un
priority action areas were defined with a view
ica
tio
rks
ns
wo
to progressing toward “zero accidents”. In France,
a Workplace Risk Prevention, Health and Safety
Management
Net
230 collective agreements regarding
agreement was signed by management and Trai
nin
health, safety and working conditions
g
labor in December 2008. Between 2008 and signed in 2010
s
ard
Monito
2010, the number of agreements signed
nd
Sta
regarding occupational health and safety issues
ring
increased 25%.
The seven priority action areas are:
■ information feedback through a shared software program for
reporting and in-depth analysis of the root causes of accidents, he set the company the priority target of a 10% annual reduction the workforce in 2010, with 192,144 employees trained for
which is still being rolled out across the company. More than in the frequency of workplace accidents. To pass this message a total of 1,793,617 hours dedicated to safety, or nearly 30%
two-thirds of operations were using this system at the end on to its managers, Veolia Energy – Dalkia, for example, arranged of the total number of training hours;
of 2010; a videoconference with 26 countries during which its chairman ■ establishment and dissemination of health and safety
■ communication of safety results. In addition to the annual presented a review of the previous year and underlined the standards. To ensure the compliance of practices with these
publication of workplace accident indicators, two reports targets. Similarly, safety seminars were held by Veolia Water standards, several hundred audits are performed each year
are presented each year to management and labor under in the various regions around the world. Lastly, at a more by the network of health and safety officers. These standards
the Workplace Risk Prevention, Health and Safety agreement; grassroots level, 3,149 bodies dedicated to health and safety may have specific versions for each division. Veolia Transport
■ management of the health and safety networks. Experience issues were identified in 2010 (up 2.6% compared with 2009), has, for example, developed its own standard in France and
feedback emphasizes the need to mobilize the entire including in countries where these legal obligations do not has begun an exhaustive audit of its sites, which will take until
managerial chain. In this respect, in May 2010, the Chief exist, such as the initiative taken by Veolia Environmental 2013 to complete;
Executive Officer of Veolia Environnement reiterated the Services in Switzerland;
essential need for the involvement of all managers, employees, ■ training of employees by providing specific health and safety
and labor-management bodies. Furthermore, courses. These courses covered almost two-thirds of
Veolia Environnement — Managing social performance / Four HR priorities underpinning Corporate Social Responsibility 56

58. ■ safety management by drawing up and deploying road maps; Change in the workplace accident frequency rate
■ monitoring of health needs and risks. Risk prevention implies
adopting an identification and assessment approach very early 29.16
in the process. The risks linked to the use of chemical products, 25.22 25.05
22.59 23.36
for example, are the subject of particular attention as part 20.84 21.92
of the European REACH regulations. In 2010, Veolia 18.88 18.09
17.71
Environnement launched a study on inaptitude in partnership 13.94 13.10
12.65 12.30
with ANACT (French agency for the improvement of working 11.23
conditions). Similarly, a study on absenteeism, its causes
and costs has been commenced in conjunction with the École
d’économie in Paris, under the supervision of Professor
P. Askenazy. 08 09 10 08 09 10 08 09 10 08 09 10 08 09 10
Veolia Environnement Veolia Water Veolia Energy – Dalkia Veolia Environmental Services Veolia Transport
All these actions have led to a significant 13% reduction in the
accident frequency rate for the company as a whole in the past
three years.
The 2010 workplace accident frequency rate fell 4.2% from
18.88 in 2009 to 18.09 in 2010. Change in the workplace accident severity rate
The workplace accident severity rate also fell in all divisions 1.21
except transportation. Overall, the severity rate for the company 1.09
1.00 0.98
remained unchanged at 0.72.
0.83 0.80
0.75 0.72 0.72
0.44 0.48 0.43 0.48 0.45 0.43
08 09 10 08 09 10 08 09 10 08 09 10 08 09 10
Veolia Environnement Veolia Water Veolia Energy – Dalkia Veolia Environmental Services Veolia Transport
Veolia Environnement — Managing social performance / Four HR priorities underpinning Corporate Social Responsibility 57

59. MANAGING
RESPONSIBLE
PURCHASING
58

60. 1 Sustainable purchasing policy
Purchasing expresses Veolia Environnement’s social and Development of responsible purchasing actions
environmental commitments through its processes and approach Purchasing officers’ involvement in sustainable development SURVEY ON THE PERCEPTION
to suppliers. The sustainable purchasing policy deployed in issues motivates them to establish responsible purchasing OF PURCHASING
the company helps to improve its economic performance, practices. This means that they are more likely to take
anticipate and prevent risks, and build long-term relationships environmental certification, eco-design or total cost of ownership In 2010, the Purchasing Department launched an international
with suppliers. It is supported by the following principles: (TCO) into account in managing their purchases. Similarly, consultation on the perception of purchasing within the
the purchasing officers also promote responsible practices in company. Over 300 suppliers and close to 250 purchasing officers
Purchasing officers’ commitment to sustainable contract users, for example by encouraging better consumption from around the world were asked to express their opinions
development habits, or by rewarding paperless orders or fewer deliveries. using an online questionnaire. After one month, the results were
Purchasing officers are given responsibilities toward the analyzed anonymously and the findings used to define priorities
environmental and social implications of the company’s activities Consideration of suppliers’ CSR commitment for action, such as increasing the added value of purchases,
so that those considerations enter into the officers’ management and performance in particular by an emphasis on sustainable purchasing.
of their specific purchasing areas. Thus, CSR issues are covered Purchasing officers make sure that suppliers share the company’s
in Veolia Environnement’s purchasing guidelines, actions to raise position on CSR and that the associated risks are managed
awareness take place regularly and training modules are offered. throughout the process, from supplier selection to monitoring
relations with the supplier. Procedures for supplier evaluation
and audits are used to measure suppliers’ CSR performance
and implement improvement plans where necessary.
Veolia Environnement — Managing responsible purchasing / Sustainable purchasing policy 59

61. 2 Incorporate sustainable development
in the purchasing process
CONSULTATION
COMMITMENT OF SUPPLIER
PURCHASING OFFICERS QUALIFICATION CONTRACTS CONTRACT MANAGEMENT OPTIMIZING BUSINESS TRAVEL
Purchasing Charter Suppliers Charter “Sustainable development” Evaluation of suppliers Business travel is a real issue for the company, with its operations
Purchasing Code of Conduct Questionnaire sent clause Audit of suppliers in 77 different countries. For several reasons, including
Targeted training to suppliers during Commit suppliers to practices Measure the suppliers’ CSR
Awareness raising a consultation consistent with the company’s performance, evaluate the environmental benefit of reducing transportation-related
Commit purchasing officers Evaluate whether sustainable development their application of CO2 emissions, a policy for environmental, social and economic
to the priorities in sustainable the suppliers’ practices commitments the sustainable development
development and ethical are consistent with commitments and identify
optimization of travel was rolled out for our employees in France.
conduct rules the company’s sustainable areas for improvement Through a dedicated portal linked to internal management tools,
development commitments the reservation process is optimized to offer travel conditions
consistent with the company’s sustainable development
commitments. The employees are trained and the tool is
programmed to propose less-polluting alternatives, for example,
rail rather than air for trips of less than three and half hours,
or teleconferencing rather than rail. The best travel options
for protecting our employees’ health, paperless billing
Examples of responsible purchasing practices and electronic ticketing round out the approach to overall
optimization of the policy on business travel.
Furthermore, by tracking CO2 emissions and sensitizing all
THINKING IN TOTAL-COST TERMS stakeholders to the impacts of their travel, the policy ensures
that everyone is involved in more-responsible mobility.
For long-term cost-containment and to optimize resources Our experience over the past few years makes it clear that
consumption in running its equipment, the company studied this approach to sustainable purchasing, arrived at after
the total cost of ownership (TCO) for chassis for trucks consultation with the operators and maintenance personnel,
weighing over 12 metric tons. The total cost of this type of is effective in reducing, managing and optimizing costs.
equipment over eight years, including fuel, any additives, and The TCO approach is considered a source of value creation
preventive and corrective maintenance can represent up to four and resource savings, and will be extended to include chassis
times the initial investment for the chassis alone. design and dismantling.
Veolia Environnement — Managing responsible purchasing / Incorporate sustainable development in the purchasing process 60

62. 3 Sustainable development training
and awareness-raising for purchasing officers
Purchasing officers are in the front line for implementing Percentage of buyers trained in sustainable development in the past three years(1)
a sustainable purchasing policy. Training modules have been
set up on sustainable development issues in purchasing to
give purchasing officers the tools and resources they need to
understand and implement the policy. 8%
Veolia 36%
Environmental Veolia Water
In addition, awareness-raising actions take place regularly on Services
different media. This allows us to communicate on the policy’s
latest results and to create a framework for discussion of CSR 17%
company purchasing
issues. This makes it easier to incorporate them in day-to-day 14% officers, broken down
purchasing processes and practices. Veolia into the following
Transport entities:
25%
A total 17% of the purchasing officers working for the company Veolia Energy –
Dalkia
on December 31, 2010 had received training during the preceding
18%
three years in sustainable development issues and their integration Veolia
to the purchasing process. The training included the specific Corporate
“Sustainable Purchasing” module of the company’s “Fundamentals
of Purchasing” program, as well as individual courses for
purchasing officers. For its water and wastewater operating Number of corporate actions designed to raise buyers’ sustainable development awareness in 2010
activities, Veolia Water in France dispensed training during
Total of 34 company-wide actions in 2010
the on-site supplier audits, and 31% of its purchasing officers
received sustainable development training in the modules. 5 5
4 4
Regular communication about the latest news in sustainable
3 3 3
purchasing and ongoing sustainable purchasing projects in Monthly average: 2.88
the company keep the purchasing officers informed and raise 2 2 2
their awareness about the importance of taking CSR issues 1
into account in their work.
0
(1) See Details of methodology. Jan. Feb. March April May June July Aug. Sept. Oct. Nov. Dec.
Veolia Environnement — Managing responsible purchasing / Sustainable development training and awareness-raising for purchasing officers 61

63. 4 Commit our suppliers
to sustainable development
Veolia Environnement’s sustainable development commitments New reporting methods were introduced in 2010. They enable Percentage of contracts integrating
are contained in the company’s purchasing policy and are monitoring of the inclusion of sustainable development sustainable development requirements(1)
gradually being included in a dedicated clause in the contracts requirements in contracts and measurement of progress in
32% 33%
signed with suppliers. this area.
The company has introduced the clause in order to ensure
compliance and in preparation for regulatory changes in certain
At the end of 2010, 17% of the current contracts in the company’s
portfolio were declared by purchasing officers to contain
17%
of company
contracts(1),
markets, as well as to formalize its commitments and involve formalized sustainable development requirements. Some representing for
suppliers in its sustainable development approach. of these contracts concern more than one company division, each division: 15%
13%
which breaks down into the percentages for each division
Updated in 2010 primarily to include the company’s new shown in the diagram.
commitments in occupational health and safety and in diversity,
the standard sustainable development clause, which covers
the environment, ethical standards and social considerations, Veolia Veolia Veolia Veolia
Water* Energy – Environmental Transport
may be adapted to the particular issues associated with Dalkia Services
the products or services being purchased. The clause and its
* 24% in contracts applicable to Veolia Water in France for its water and wastewater
appendixes are available to purchasing officers on the company’s activities.
purchasing intranet site.
(1) See Details of methodology.
Veolia Environnement — Managing responsible purchasing / Commit our suppliers to sustainable development 62

64. 5 Evaluate our suppliers’ CSR commitment
and performance
A system for evaluating our suppliers’ CSR performance Percentage of preferred suppliers evaluated Percentage of strategic suppliers audited by Veolia Water
was introduced in 2010. It is managed by an independent on their CSR performance(2) in France for its water and wastewater operating activities(2)
international service provider and is based on 21 criteria,
divided into environmental, social and ethical aspects, Percentage of suppliers audited (cumulative since 2008)
as well as supplier relations. The results of the evaluations 47%
form the basis for targeted improvement actions: action plans
Highlight
or on-site audits are set up.
ties best
rtuni
Oppo practices
Besides this system, some divisions have for several years 7%
of preferred 17%
been carrying out on-site audits of their strategic suppliers
suppliers 14%
using methodologies appropriate to their issues. Risks
Action
In 2010, pilot CSR evaluations were carried out on over plans
100 suppliers serving one or more divisions. This evaluation 2008 2009 2010
covered preferred suppliers(1) and consultant suppliers. On-site
At the end of 2010, preferred suppliers represented 7% of audit
our suppliers under contract. As internal company suppliers, Percentage of strategic suppliers audited
and to serve as examples, some of Veolia Environnement’s by Veolia Environmental Services in France(2)
business units were also evaluated.
Percentage of suppliers audited (cumulative since 2008)
Based on their priorities, all of Veolia Environnement’s divisions 19%
established their definition of strategic suppliers for their For its water and wastewater operating activities, Veolia Water
particular activity, considering, for example, the amount spent in France audited 47% of its strategic suppliers over the three
or risks (economic, environmental, social, etc.). Specific actions preceding years. 12%
can be introduced for these suppliers, for example, on-site audits Veolia Environmental Services in France had audited 19% 9%
that include, as a minimum, a part relating to sustainable of its strategic suppliers since 2008.
development issues.
(1) Suppliers under framework agreements.
(2) See Details of methodology. 2008 2009 2010
Veolia Environnement — Managing responsible purchasing / Evaluate our suppliers’ CSR commitment and performance 63

65. REPORTING
INDICATORS
64

66. 1 Environmental indicators
2008 2009 2010 2010
ENVIRONMENTAL INDICATORS Unit Veolia Veolia Veolia Veolia Veolia Veolia Veolia
Environnement Environnement Environnement Water Energy – Environmental Transport
Dalkia Services
MANAGEMENT
EMS deployment ratio (including ISO 14001 certified facilities) for relevant activities(1a)(3) % relevant revenue 77% 78% 81% 87% 94% 81% 58%
Relevant revenue covered by a certified management system (ISO 9000 or 14001)(5) % 71% 72% 71% 81% 85% 75% 26%
Number of sites covered by ISO 14001 certification(2) Number 27,575 21,826 26,086 1,333 23,753 932 68
Veolia Transport drivers (working at Dec. 31, 2009, hired since Dec. 31, 2006) % 61.8% 60.9% 60.5% – – – 60.5%
who have been trained in eco-driving
Percentage of priority facilities audited over the past five years(1a) % 91% 87% 85% 82% 86% 95% 78%
Revenue from relevant activities(4) Billions of euros 23.5 27.6 29.6 7.0 7.5 9.8 5.2
RESPONSIBLE PURCHASING
Percentage of buyers trained in sustainable development in the past three years (World 2010)(1a) % – 10%* 17% – – – –
Number of corporate actions designed to raise buyers’ sustainable development awareness(1a) Number – 12 34 – – – –
Percentage of contracts integrating sustainable development requirements(1a) % – – 17% – – – –
Percentage of preferred suppliers evaluated on their CSR performance(1a) % – – 7% – – – –
AIR
Carbon efficiency ratio(1a)(6)(8) % 55% 54% 59% 5% 27% 124% 52%
Direct CO2 emissions(1b) Million metric tons CO2 32.0 31.7 31.9 0.3 23.9 5.1 2.6
Direct CH4 emissions(6) kt CH4 603.3 598.7 476.0 – – 474.7 1.3
Direct N2O emissions (Veolia Environmental Services) kt N2O 0.58 0.57 0.49 – – 0.49 –
Total direct greenhouse gas emissions(1b)(2)(6) Million metric tons CO2 eq. 44.9 44.5 42.1 0.3 23.9 15.2 2.6
Indirect emissions of greenhouse gases related to energy consumption (electricity and heat)(1a) Million metric tons CO2 4.9 5.0 5.4 2.9 2.1 0.2 0.1
Total direct and indirect (electricity and heat) emissions of greenhouse gases(1b)(2)(6) Million metric tons CO2 eq. 49.8 49.5 47.4 3.2 26.0 15.4 2.7
Total reduction of greenhouse gas emissions(1a)(9) Million metric tons CO2 26.9 26.8 27.5 0.1 7.0 19.1 1.2
– of which overall reduction of greenhouse gas emissions Million metric tons CO2 16.3 17.1 18.2 0.1 7.0 11.0 –
– of which greenhouse gas emissions avoided through energy(9) Million metric tons CO2 5.1 4.2 3.8 0.02 – 2.6 1.2
– of which greenhouse gas emissions avoided through materials recovery Million metric tons CO2 5.5 5.5 5.5 – – 5.5 –
Carbon performance of combustion facilities (world)(1a) Metric tons CO2/MWh produced 0.294 0.264 0.257 – 0.257 – –
CH4 collection rate at landfill sites (in operation)(1a)(6)(12) % 46.5% 48.9% 54.0% – – 54.0% –
Emissions from hazardous and non-hazardous waste incineration plants per metric ton
of waste incinerated
– SOx(2) g/metric ton incinerated 83 91 87 – – 87 –
– NOx g/metric ton incinerated 871 853 763 – – 763 –
– Dusts g/metric ton incinerated 18 16 14 – – 14 –
– HCl g/metric ton incinerated 55 52 42 – – 42 –
Emissions per unit of passenger transportation vehicles
– CO(1a)(6)(11) g/km 2.49 2.70 2.58 – – – 2.58
– HC(1a)(6)(11) g/km 0.64 0.56 0.52 – – – 0.52
– PM(1a)(6)(11) g/km 0.27 0.24 0.21 – – – 0.21
Completion of Legionella risk prevention plan(1a)(14) % 89% 86% 76% – 76% – –
Waste treated in incinerators with dioxin emissions lower than 0.1 ng/Nm3 (all plants)(1a)(2) % 96.6% 98.6% 93.4% – – 93.4% –
Veolia Environnement — Reporting indicators 65

67. 2008 2009 2010 2010
ENVIRONMENTAL INDICATORS Unit Veolia Veolia Veolia Veolia Veolia Veolia Veolia
Environnement Environnement Environnement Water Energy – Environmental Transport
Dalkia Services
WATER
Water distribution network efficiency (world)(1a) % 76.5% 75.0% 75.3% 75.3% – – –
Water losses per mains length (1a) m3/km/day 13.9 16.3 17.1 17.1 – – –
Amount of water losses from water distribution networks(10) m3 millions 1,700 2,082 2,188 2,188 – – –
Industrial water consumption(2) m3 millions 494.8 541.7 562.2 505.5 39.0 10.1 7.6
Overall wastewater treatment efficiency (biological treatment plants with a treatment capacity % 80.9% 81.1% 83.1% 83.1% – – –
of over 3 metric tons of BOD5 per day —50,000 EP)(1a)
Wastewater treatment efficiency in terms of BOD5 (biological treatment plants with a treatment % 90.7% 91.6% 92.8% 92.8% – – –
capacity of over 3 metric tons of BOD5 per day —50,000 EP)(1a) (2)
Percentage of customers equipped with water meters % 96.5% 97.4% 97.5% 97.5% – – –
Drinking water quality
– Percentage of population supplied with excellent quality or high quality water(1a) % 96.1% 97.0% 97.4% 97.4% – – –
– Bacteriological compliance rate % 99.5% 99.6% 100% 100% – – –
– Overall compliance rate % 99.3% 99.4% 98.9% 98.9% – – –
ENERGY
Total energy generation (electricity and heat)(1a) MWh millions 90.6 91.4 96.5 0.8 87.2 8.5 –
– of which electricity MWh millions 21.7 21.8 21.7 0.3 15.8 5.6 –
– of which heat MWh millions 68.9 69.6 74.8 0.5 71.4 2.9 –
Generation of renewable or alternative energy (electricity and heat) MWh millions 16.7 18.0 18.4 0.8 9.1 8.5 –
– of which renewable energy(1a) MWh millions 10.7 12.2 12.8 0.8 7.1 4.9 –
Total energy consumption (electricity and heat)(1b) (2) (7) MWh millions 169.6 171.9 172.5 8.9 115.2 38.0 10.3
– of which electricity MWh millions 9.9 10.6 10.6 7.0 1.5 1.7 0.4
– of which heat MWh millions 159.7 161.4 162.0 1.9 113.8 36.3 10.0
Amount of electricity procured from renewable sources MWh millions 0.5 0.5 0.4 0.2 0.0 0.1 0.1
Renewable and alternative energy consumption MWh millions 44.9 47.5 45.0 1.0 10.5 32.7 0.8
– of which renewable energy(1a) MWh millions 25.8 28.2 27.5 1.0 8.5 17.6 0.4
Share of renewable and alternative energy consumed % 26.5% 27.7% 26.1% 11.0% 9.1% 86.1% 7.7%
– of which renewable energy(1a) % 15.2% 16.4% 15.9% 11.0% 7.4% 46.4% 3.5%
Incineration plants equipped with energy conversion systems % 93.5% 94.9% 68.1% – – 68.1% –
WASTE
Quantity of sludge dealt with Thousands of metric tons 1,027 1,018 1,130 1,130 – – –
Percentage of waste disposed of without energy or materials recovery(1a) % 55.5% 51.6% 53.0% – – 53.0% –
Quantity of compost produced(2) Thousands of metric tons 1,231.5 1,293.6 1,129.8 35.9 – 1,093.8 –
SOIL
Sludge produced used in agriculture(1a) (2) % 52% 54% 47% 47% – – –
(1a) Indicator that has been independently checked (moderate assurance). (9) Emissions avoided by Veolia Transport (Eco-Efficient Travel) are net of direct and indirect greenhouse gases for the corresponding scope.
(1b) Indicator that has been independently checked (reasonable assurance). (10) The 2009 and 2010 figures pro forma 2008 are 1,644 million m3 and 1,608 million m3 respectively.
(2) Indicators satisfying NRE requirement. (11) The 2009 and 2010 figures are pro forma in regard to a 2008 base scope representing 84% of the fleet of heavy road vehicles
(3) Method concerning the evaluation of internal EMS deployment was modified in 2009. (excluding electric).
(4) Scope of relevant activities now includes all Veolia Environmental Services activities. (12) Calculation of the indicator does not take into account methane oxide.
(5) Includes Veolia Transport’s NFS service certificates in France. (–) Indicators not available, not significant or not applicable.
(6) 2008 figures have been updated to take into account the change in calculation method in 2009. (14) The method for evaluating the Legionella risk prevention plan was modified in 2010.
(7) The Company’s own thermal consumption is not included because it is marginal. * France 2009.
(8) The 2009 values for Veolia Transport are consistent with the scope of the Eco-Efficient Travel indicator.
Veolia Environnement — Reporting indicators / Environmental indicators 66

68. 2 Social indicators
Unit
2008
Veolia
2009
Veolia
2010
Veolia
Veolia
Water
Veolia
Energy –
2010
Veolia
Environmental
Veolia
Transport France
Environnement* Environnement* Environnement*
Dalkia Services
HEADCOUNT
Total headcount** 336,013 312,590 317,034 96,260 53,457 84,740 80,756 101,088
Number of employees on unlimited-term contracts 312,388 292,223 294,638 90,428 48,470 78,936 75,196 95,932
Number of employees on fixed-term contracts 23,625 20,367 22,396 5,832 4,987 5,804 5,560 5,156
Number of men 263,941 250,253 253,672 73,419 44,114 71,376 63,858 81,279
Number of women 72,072 62,337 63,362 22,841 9,343 13,364 16,898 19,809
Number of managers 27,974 28,580 29,084 13,108 5,956 5,818 3,037 13,346
Number of non-managers 308,039 284,010 287,950 83,152 47,501 78,922 77,719 87,742
Headcount of employees on work-study program contracts (Dec. 31, 2010) 5,096 4,925 4,652 1,563 923 1,452 628 2,327
of which headcount of employees on apprenticeship contracts 2,870 2,791 2,932 1,177 582 772 354 1,493
Headcount of disabled employees (Dec. 31, 2010) 5,366 4,932 5,546 1,747 855 1,543 1,379 3,286
Total weighted annual mean headcount (full-time equivalent)** 309,917 296,120 301,433 93,368 51,939 80,903 73,561 98,234
Weighted annual mean headcount of employees on unlimited-term contracts** 291,210 278,223 282,857 88,013 47,705 76,320 69,287 93,214
Weighted annual mean headcount of employees on fixed-term contracts** 18,707 17,908 18,587 5,352 4,232 4,579 4,291 5,020
RECRUITMENT
Total number of new hires 76,896 52,183 57,393 10,227 10,985 18,644 17,214 14,841
– of which number hired on fixed-term contracts 33,086 22,581 21,645 4,393 3,662 6,205 7,193 9,214
– of which number hired on unlimited-term contracts 43,810 29,602 35,748 5,834 7,323 12,439 10,021 5,627
DEPARTURES
Total number of staff departures 75,657 64,397 58,072 10,544 10,601 19,595 17,088 16,307
– of which the number of individual dismissals 10,355 9,478 9,686 1,506 1,760 3,230 3,184 1,812
– of which the number of group redundancies 923 860 722 117 250 302 53 4
JOB MOBILITY TRANSFERS
Total number of job mobility transfers 16,575 16,139 16,758 3,966 3,337 5,359 3,864 4,824
– of which the number of manager transfers 2,853 2,670 2,863 902 548 903 330 1,497
Number of fixed-term contracts transformed into unlimited-term contracts 7,506 5,961 5,803 1,289 902 1,992 1,583 1,856
OVERTIME
Total number of overtime hours** hours 27,754,016 24,381,733 26,780,561 4,797,621 2,097,350 12,800,518 7,078,750 3,799,617
Mean amount of overtime per employee per year hours 83 78 84 50 39 151 88 38
OUTSOURCED LABOR
Temporary staff (full-time equivalent) 13,893 12,112 13,443 4,808 1,202 6,644 761 5,649
Amount paid to temporary staffing agencies euros 466,498,956 386,205,315 390,407,292 121,909,926 42,949,621 191,307,325 32,973,845 235,375,852
ORGANIZATION, WORKING TIME, ABSENTEEISM
Working week** hours 38.6 38.7 38.9 38.4 39.1 39.9 38.3 35.2
Part-time staff (full-time equivalent) 17,218 13,700 13,743 2,955 733 3,001 6,939 4,928
Total number of calendar days lost through absence (unlimited-term contracts)** days 4,403,771 4,431,589 4,377,067 1,069,162 663,629 1,201,382 1,425,300 1,930,248
– of which total number of calendar days lost through sick leave (unlimited-term contracts) days 2,936,208 2,835,636 2,937,715 707,277 477,801 764,231 980,615 1,301,406
Veolia Environnement — Reporting indicators 67

69. 2008 2009 2010 2010
Veolia Veolia Veolia Veolia
Veolia Veolia Veolia
Unit Water Energy – Environmental Transport France
Environnement* Environnement* Environnement*
Dalkia Services
REMUNERATION AND COMPENSATION, SOCIAL CONTRIBUTIONS, BONUSES AND EMPLOYEE GAINSHARING
Mean gross annual remuneration euros 26,107 26,617 27,222 26,766 24,954 26,825 29,001 32,014
Mean gross annual remuneration paid to men euros 26,996 27,341 27,940 28,136 26,165 26,736 29,689 32,370
Mean gross annual remuneration paid to women euros 22,337 23,549 24,186 22,278 19,100 27,364 26,241 30,476
Difference between average remuneration paid to women and men % –17.3 –13.9 –13.4 –20.8 –27.0 +2.3 –11.6 –5.8
Ratio of average compensation to average minimum compensation in 19 countries 2.2 2.4 2.3 2.7 2.5 2.2 2.1 2.0
that have a legal minimum wage
Ratio of social contributions % 30.1 30.5 30.6 32.7 32.8 26.8 30.1 46.4
Total amount of bonus payments (in France) euros 62,361,751 68,810,823 68,993,445 46,471,588 7,033,633 7,731,009 7,088,596 68,993,445
Total amount of employee gainsharing payments (in France) euros 68,139,127 64,616,872 62,107,636 25,001,753 13,315,642 12,565,497 12,387,565 62,107,636
PROFESSIONAL RELATIONS AND COLLECTIVE AGREEMENTS
Total number of collective agreements signed 1,606 2,047 2,143 556 339 463 768 766
– of which the number of remuneration-related agreements 846 1,023 1,190 278 158 343 407 456
– of which the number of agreements related to health, safety or working conditions 184 268 230 91 42 39 57 74
– of which the number of agreements related to labor-management dialogue 287 317 286 64 25 24 169 92
– of which related to other issues or several of the above 289 439 437 123 114 57 135 144
Total number of employee representatives 16,471 15,553 15,822 4,620 2,193 4,641 4,223 9,370
HYGIENE, HEALTH AND SAFETY CONDITIONS
Total number of occupational accidents leading to sick leave** 11,471 10,049 9,933 1,846 1,205 3,596 3,275 4,585
Total number of calendar days lost through occupational accidents** days 413,129 382,247 395,572 71,063 39,733 126,748 157,806 244,913
Accident frequency rate** 20.83 18.88 18.09 11.23 13.1 22.59 25.05 30.70
Accident severity rate** 0.75 0.72 0.72 0.43 0.43 0.8 1.21 1.64
Total number of employees who received safety-related training 186,787 200,442 192,144 58,180 29,005 57,991 46,451 41,839
Total number of committees on occupational health and safety 3,068 3,360 3,149 708 447 1,345 640 631
TRAINING
Total expenditure on training as a percentage of total payroll % 2.40 2.22 2.24 2.48 2.72 1.78 2.08 3.20
Total number of employees attending training programs 527,979 508,697 592,924 206,227 105,252 173,004 106,546 119,070
– Managers 50,708 53,405 64,955 32,467 14,426 11,661 5,317 17,587
– Non-managers 477,271 455,292 527,969 173,760 90,826 161,343 101,229 101,483
– Men 374,026 389,578 454,243 159,080 86,775 129,625 77,826 99,566
– Women 153,953 119,119 138,681 47,147 18,477 43,379 28,720 19,504
Expenditure per trained employee euros 368 344 310 300 335 223 416 846
Total number of training hours** hours 6,526,100 5,687,612 6,060,027 1,794,663 1,402,297 1,269,123 1,559,084 1,843,653
Mean length of training programs hours 12.4 11.1 10.2 8.7 13.3 7.3 14.6 15.5
CORPORATE PHILANTHROPY
Subsidies paid for social activities euros 72,266,878 66,151,454 67,438,790 29,890,206 14,231,032 10,704,147 11,795,810 47,354,758
* Veolia Environnement data includes data for the Veolia SA Head Office, the Environmental Analysis Center, the Campus, VERI, VEIT, DES, Seureca and OFIS.
** Indicators that have been independently checked.
Veolia Environnement — Reporting indicators / Social indicators 68

70. 3 Good governance standards
GOVERNANCE CRITERIA
Reference codes and regulations
SITUATION ON MARCH 30, 2011
The Company’s code of reference is
OBSERVATIONS OF VEOLIA ENVIRONNEMENT
The Company believes that it is in compliance with its code of reference.
the Afep-Medef corporate governance code. See chapter 16 of the Registration Document.
Separation of the functions of Chairman of the Board
No Functions reunited December 12, 2010.
of Directors and CEO
Chairman Creation of a post of Vice-Chairman of the Board
Post created October 21, 2009 Louis Schweitzer is Vice-Chairman of the Board of Directors (senior independent director).
and CEO of Directors
As Chairman and CEO, Henri Proglio ended his employment contract in 2009, in accordance with the recommendations
Simultaneous employment contract and Company office No
of the Afep-Medef code. In December 2009, Antoine Frérot, CEO, also ended his employment contract (after 19 years).
Definition in compliance with that of the
Definition of the independence of directors used
Afep-Medef code
INDEPENDENCE
Accounts Nominations Research, Innovation and
Existence of committees independent
Board of Directors and Audit and Compensation Sustainable Development
Directors among of the Board of Directors
Committee Committee Committee
themselves
and in relation According to the Afep-Medef code, the proportion of
to management independent directors must be at least: 50% of the members
of the Board of Directors, two-thirds of the members of the 11/17 4/4 3/4 2/3
Accounts and Audit Committee and the majority of the
members of the Nominations and Compensation Committee
Term of office of a director 4 years Annual renewal of a quarter of the members of the Board of Directors.
Fees of the statutory auditors (KPMG and Ernst & Young
networks) paid by the Company and its worldwide
consolidated subsidiaries:
Refer to chapter 9.5 of the Registration Document.
– Audit tasks: €30.1 million (86.74%)
– Other services directly related to audit tasks: €4.6 million (13.26%)
Statutory auditors – Other duties and services (legal, fiscal, social): 0.0 (0%)
in relation to
management Meetings between statutory auditors and directors and
between statutory auditors and operational management Yes
in the absence of senior management
Maximum term and rotation of appointment Rotation of external auditors every five years Renewal of term of statutory auditors every six fiscal years in compliance with French law and rotation of the auditor
of external auditors (auditor engagement partner of statutory auditor) engagement partner every five years in compliance with US law.
Payment of part of attendance fees linked to participation Application of fees withheld in relation to attendance.
Yes
in meetings of the Board of Directors Refer to chapter 15.1.2 of the Registration Document.
Accounts Nominations Research, Innovation and
ROLE IN DECISION-MAKING
Number of meetings and average participation ratio
Board of Directors and Audit and Compensation Sustainable Development
at meetings of the Board of Directors and committees:
Committee Committee Committee
• Number of meetings 11 7 6 6
• Participation ratio 83.6% 100% 100% 100%
Directors
Regular evaluation of the operation of the Board of Directors
Annual evaluation Informal evaluation in 2009 via a questionnaire sent out to directors.
and its committees
Regular formal evaluation of the operation of the Board Yes, every three years Evaluation formalized in 2010-2011 (chapter 16.1.4 of the Registration Document).
In accordance with this law and the Afep-Medef code revised in April 2010, the Nominations and
Balanced gender representation on the Board of Directors.
One woman sits on the Board of Directors Compensation Committee will make recommendations to the Board regarding the nomination
French Law of January 27, 2011 on balanced gender
representing 5.9% of Directors of a greater number of women for Board membership at future annual shareholders’ meetings.
representation on company Boards.
(Refer to chapter 16.1.2 of the Registration Document.)
Veolia Environnement — Reporting indicators 69

71. GOVERNANCE CRITERIA SITUATION ON MARCH 30, 2011 OBSERVATIONS OF VEOLIA ENVIRONNEMENT
ROLE IN DECISION-MAKING (CONTINUED)
Reference codes and regulations The Company’s code of reference is The Company believes that it is in compliance with its code of reference.
the Afep-Medef corporate governance code. See chapter 16 of the Registration Document.
Participation ratio (quorum) at the last Shareholders’ Meeting
60.10%
(2010)
Minimum percentage of share capital to submit a resolution
One or more shareholders representing at least 0.5% of the share capital In compliance with Article R. 225-71 of the French Commercial Code.
to the Annual Shareholders’ Meeting
On March 31, 2011 shareholders were provided with the Registration
Shareholders Document containing the draft resolutions for the Annual Shareholders’
Means of obtaining information and voting made available
Meeting on May 17, 2011.
to shareholders
Information via the www.finance.veolia.com website,
with direct retransmission from the meeting.
Criteria for adoption of a resolution (minimum percentage 50% for ordinary business resolutions
In compliance with the French Commercial Code.
of shares present or represented) 66.7% for extraordinary business resolutions
Remuneration paid to the Company representatives (Henri Proglio, Chairman €1,334,415
Refer to chapter 15.1 of the Registration Document.
of the Board of Directors up to December 12, 2010) (including 2009 variable remuneration paid in 2010)
€1,188,743
Remuneration paid to the Company representatives in 2010
(of which 28% in respect of 2009 variable remuneration prior to being Refer to chapter 15.1 of the Registration Document.
(Antoine Frérot, CEO)*
appointed CEO of Veolia Environnement)
FINANCIAL INFORMATION
€5,021,651
Remuneration paid to the senior management in 2010 (Executive Committee) (of which 36% in respect of 2009 variable remuneration) Refer to chapter 15.2 of the Registration Document.
(Executive Committee as of December 31, 2010)
Criteria for determining the 2010 and 2011 variable remuneration 70% quantitative share on criteria determined by the Board of Directors 2010 and 2011 quantitative criteria.
or subscription of the Chairman and CEO 30% qualitative share determined by the Board of Directors Refer to chapters 15.1 and 15.2 of the Registration Document.
Number of share purchase options awarded to the Chairman and CEO 285,000 share purchase options awarded to Executive Committee
Refer to chapter 17.3.1 of the Registration Document.
and to the senior managers (Executive Committee) in 2010 members (excluding CEO)
Number of bonus shares allotted to the Chairman and CEO The Company’s current policy does not provide for the allotment of bonus shares
0
and senior managers (Executive Committee) in 2010 to the Chairman and CEO or senior managers (Executive Committee).
The conditions for fixing and disbursing the termination payment that will be granted
to Antoine Frérot if his functions as CEO are terminated are in compliance with the
The principle of a termination payment was approved by the Board of French Commercial Code (ascertainment of performance condition). The payment
Termination payments (“golden parachutes”) provided for the Chairman Directors on December 17, 2009, subject to the approval of the May 7, will be calculated on the basis of the remuneration received by Mr. Frérot during the
and CEO and senior managers (Executive Committee) 2010 Annual Shareholders’ Meeting, in application of the French base period (fixed amount of the remuneration received during the previous year, to
Commercial Code (TEPA law). which the performance rate will be applied, plus the average variable remuneration).
In application of the Afep-Medef code, the termination payment may not exceed
two years of remuneration (fixed and variable).
* Amounts paid during the 2010 fiscal year including fixed 2010 remuneration, variable 2009 remuneration paid in 2010, benefits in kind and attendance fees paid during the year by the Company and its subsidiaries.
Veolia Environnement — Reporting indicators / Good governance standards 70

72. INDEPENDENT
OPINIONS
71

73. 1 Extra-financial rating by BMJ Ratings
BMJ Ratings was mandated by Veolia In France, audits covered all the Company’s activities in its Northwest Conclusions
delegation.
Environnement to carry out a strategic → Environment
Elsewhere, eight subsidiaries were assessed in the following regions:
assessment of all aspects of Corporate Social ■ Europe: Spain (energy distribution), Estonia (energy distribution),
Veolia Environnement continued with the operational
Responsibility (CSR) between December 2010 Romania (water management), Sweden (transportation); implementation of Environmental Management Systems in 2010.
■ Africa: Morocco (water management); The agency confirms its positive assessment concerning
and April 2011, and to perform the Company’s the integration of energy/carbon issues within the four divisions,
■ Asia: China (waste management);
extra-financial rating. ■ North America: USA (transportation); and points out Dalkia’s engagement in regard to the structuring
■ Latin America: Mexico (water and waste management). of the biomass industry. The agency also notes that the Company
The extra-financial rating of Veolia Environnement is based on BMJ increased its efforts in 2010 to define a “water footprint” standard.
Methodology Ratings’ registered DEEPP Model® (Drivers, Engagement, Exposure, However, there remain some important progress margins concerning
Since 2004, BMJ Ratings has carried out an extra-financial rating Performance, Plan for Action). This strategic and managerial the integration of biodiversity within Operations and the
of Veolia Environnement. The agency’s assessment covers the entire evaluation model takes into account companies’ operational implementation of comprehensive offers for urban eco-development.
scope of CSR fields: environment, human resources, marketing and activities. Veolia Environnement’s performance is analyzed in the
→ Human resources
sales, purchasing and subcontracting, relationships with civil society, light of its specific issues—in terms of risks and opportunities—
The agency points out the formalization of a strong corporate policy
and corporate governance. in all of its fields of responsibility. Each issue is analyzed by
on diversity and combating discrimination. It was able to assess
assessing stakeholders’ expectations and the Company’s leeway
the effective rollout of this policy in France, implemented by
The assessment provided by BMJ Ratings is the result of an analysis for addressing these.
the Divisions; however, integration of the policy into operations in
based on the consultation of internal documents provided by Veolia
other countries remains a challenge. In 2010 Veolia Environnement
Environnement, completed by interviews with the Company’s Independence maintained its high level of commitments to training and
management, audits within business units, and stakeholder surveys. BMJ Ratings is an agency specialized in solicited extra-financial the development of its human capital, which is an essential asset
The data analyzed were prepared under the responsibility of rating, working for public and private organizations. BMJ Ratings for an industrial services company. However, the agency underlines
Veolia Environnement’s Sustainable Development Department. is completely independent and none of its clients own shares the necessity for the Company to engage in a cross-division approach
Twenty-two interviews were conducted at the headquarters in the company. None of its employees are subject to conflicts to knowledge management (capitalizing on operational expertise,
of the Company and its Divisions; they covered the main functions of interest due to their activities. setting up of means for exchanging knowledge, participative
concerned by the establishment and implementation
innovation, etc.) Last, in a deteriorated economic context that
of the Company’s CSR strategy.
CSR assessment of Veolia Environnement is a source of pressure for Operations, the agency notes that
Audits were organized within business units in all four
The assessment of Veolia Environnement—carried out in 2011 on the Company stepped up its efforts to improve accident prevention
of the Divisions.
the basis of information relating to 2010—reveals a high level of results, and safety measures in its Business Units, but recommends that
superior to sector standards. The Company’s performance remains this criterion be taken into account as a systematic item when
consistent overall in all six of the CSR fields assessed, although setting managers’ bonuses.
the agency noticed a decrease in the field of corporate governance.
Veolia Environnement — Independent opinions 72

74. → Marketing and sales Insufficiencies have also been noticed in regard to the Company’s Rating by CSR field
The Veolia brand is a solid asset in industrial and international communication on and management of reputation risks.
markets, where the Company’s ability to meet complex 82/100 (stable)
→ Corporate governance
comprehensive demands represents a major competitive advantage. 1. Environment
Veolia Environnement reviewed and clarified its governance model
However, the agency notes that the Company faced challenges
in 2010. The agency notes the reunification of the formerly distinct 85/100 (+1)
in 2010 regarding the rollout of eco-innovative offers. A key issue
functions of Chairman and Chief Executive Officer, and deplores 2. Human resources
for Veolia Environnement is to increase business development
the lack of reasons given by the Company regarding this decision.
in a way that mitigates its overall exposure to “volume effects.”
In addition, independence of the Board members and diversity 81/100 (–1)
Last, the agency calls for better integration of country-risk
among governance bodies remain weak points, even though five 3. Marketing and sales
assessment in acquisition and development processes.
Board members were renewed in 2010. Last, the agency notes
86/100 (+1)
→ Purchasing and subcontracting that the Company is increasingly integrating extra-financial issues
The Company continued with the implementation of its sustainable in risk mapping and internal audit processes. 4. Purchasing and subcontracting
purchasing policy. Extra-financial criteria are increasingly integrated 80/100 (stable)
into cross-division purchasing, and the agency notes greater Extra-financial rating 5. Relationships with civil society
awareness of CSR issues on behalf of the purchasing officer network.
In addition, the Company made progress in the extra-financial 77/100 (–3)
evaluation of its key suppliers. The main areas for improvement RATING: AA++ 6. Corporate governance
are the implementation of training in sustainable purchasing and
internal awareness-raising on business ethics in supplier relations. BMJ Ratings confirms the AA rate assigned to Veolia Environnement
for 2010. The assessment of Veolia Environnement is established for
→ Relationships with civil society a one-year period starting April 20, 2011.
Veolia Environnement maintains a high level of contribution to The trend is set at ‘‘++,” which expresses the agency’s positive
the fields of social integration through employment and engagement opinion regarding the resources put in place by the Company The agency’s conclusions do not take into account any
with communities. The Company also stands out for its proactive in order to steer the operational implementation of its CSR strategy. information about commitments that may have been taken by
involvement in international aid projects and corporate philanthropy, Veolia Environnement after this date.
especially in regard to transfer of expertise. In addition, the Company
is capitalizing on social business projects launched by its Water Paris, April 20, 2011
Division to organize a “societal innovation” approach that aims
to develop access to the basic services provided by the Company Pascal Bello,
for populations in deprived areas. However, the agency underlines CEO
the Company’s progress margins—both at the corporate and
Business Unit levels—in terms of stakeholder mapping.
Veolia Environnement — Independent opinions / Extra-financial rating by BMJ Ratings 73

75. 2 E&Y independent opinion
Statutory Auditor’s assurance report on a selection
of sustainable development environmental indicators
the Indicators according to the Criteria. It is our responsibility to
express on the basis of our review a conclusion on the Indicators.
Division
Veolia Water
France
Centre Est, Ouest*,
Europe
SORICAL (Italy),
Rest of the world
Pudong (China),
Flandres-Artois- Berliner Wasser Veolia Water
(environment and sustainable purchasing) Picardie* Betriebe, Veolia North America*
Nature and scope of our review
Île-de-France Wasser (MIDEWA (USA),
This is a free English translation of the original report issued in → Limited assurance on the Environmental Indicators Centre**, and OEWA, Shenzen SEZ*
the French language. We conducted the following review for all the Environmental Normandie**, Germany), (China),
Banlieue de Paris*** Veolia Voda* (PVK, CGE Australia
Indicators:
Further to Veolia Environnement’s request and in our capacity SCVK and Movo, and United Water***
■ we have assessed the Environmental Criteria with respect to their Czech Republic), (Australia)
as Statutory Auditor of Veolia Environnement, we have performed accuracy, understandability, neutrality, completeness and relevance Three Valleys**
a review in order to express: with respect to the Company’s activities and the environmental (United Kingdom)
■ limited or reasonable assurance that the Environmental Indicators
reporting practices published in 2010 using a sample of Veolia The five regions SIRAM (Italy), Veolia Energy
for the financial year 2010 identified by the symbols (1a) or (1b) comparable environmental services companies (water, energy, Energy- of Dalkia France Dalkia UK North America*
in the 2010 environmental performance dashboard of the 2010 CSR waste management and transportation); Dalkia (Île-de-France, (United Kingdom), (USA)
performance digest (1) (the “Environmental Indicators”) have been ■ at the Company level and for its four divisions (water, energy
Est, Nord, Dalkia
prepared in accordance with the Protocol for the measurement Centre Czech Republic *,
services, waste management and transportation), we have Méditerranée and Dalkia Hungary**,
and reporting of environmental indicators dated December 23, 2010 interviewed those in charge of environmental reporting; Atlantique) Dalkia Polska
(the “Environmental Criteria”), a summary of which is included in ■ at these levels, based on a materiality and risk analysis, we have
(Poland)+,
the “Details of methodology used in environmental and purchasing Eraküte and Tallinn+
verified the application of the Environmental Criteria, implemented (Estonia),
reporting” section (2) of the 2010 CSR performance digest, completed by analytical procedures and verified, on a sample basis, Litesko and Vilnius+
the notes associated with the environmental performance dashboard. the calculations and consolidation of data; (Lithuania),
■ Limited assurance that the Sustainable Purchasing Indicators for Dalkia Romania+,
■ we have selected a sample of more than 40 Business Units (newly
the financial year 2010, identified by the symbol (1a) in the 2010 Dalkia Slovakia+
selected Business Units or Business Units which were reviewed the
environmental performance dashboard of the 2010 CSR performance two previous years and for which we performed a remote follow-up Veolia Île-de-France Veolia VES Asia* (China),
digest(3) (the “Sustainable Purchasing Indicators”), have been prepared review) in 13 countries in France, Europe (Germany, Poland, Czech Environmental and Bartin, Umweltservice VES Solid Waste**
in accordance with the Protocol for the measurement and reporting of Services Sud Ouest*, Deutschland, (United States),
Republic, Hungary, United Kingdom, the Netherlands and Belgium), SARPI*, VES UK* Proactiva
purchasing indicators dated February 9, 2011 (the “Purchasing Criteria”), the Americas (United States, Mexico, Venezuela) and Asia (China Rhin Rhône**, (United Kingdom) Medioambiente+
a summary of which is also included in the “Details of methodology and Australia), based on their activity, their geographical location, Nord Normandie**, (Mexico and
used in environmental and purchasing reporting” section(2) of the their contribution to the Environmental Indicators and the anomaly
France+ Venezuela)
2010 CSR performance digest, with the addition of the footnotes risks identified beforehand; Veolia Centre Ouest Veolia Transport Veolia
associated with the environmental performance dashboard. ■ the selected Business Units account on average for 62% of the Transport and Sud Ouest, Germany, Transportation
Our review was conducted in accordance with the professional Est*, Nord Ouest*, Netherlands* (USA)
consolidated value of the Environmental Indicators at the Company SNCM** and Belgium*
practice defined by IFAC’s (International Federation of Accountants) level and between 47% and 77% of the indicators or themes
ISAE 3000 (International Standards on Assurance Engagement). considered (environmental management systems, sanitary risks, * Business Unit subject to a remote follow-up of the review performed
It is Veolia Environnement‘s responsibility to establish the Criteria, for the 2009 financial year.
greenhouse gases and energy, water and wastewater, waste, ** Business Unit subject to a remote follow-up of the review performed
ensure their accessibility on its website (3) and establish transportation). for the 2008 financial year.
*** Business Unit subject to a remote follow-up of the review performed
for the 2007 financial year.
(1) Page 65 of the 2010 CSR performance digest.
(2) Page 79 of the 2010 CSR performance digest. + Specific approaches (GHG cross audits, methane, regional approaches, etc.).
(3) http://www.veolia.vom/en/group/performance/environmental-performance
Veolia Environnement — Independent opinions 74

76. Themes Average Contribution At this level: ■ at these levels, based on a materiality and risk analysis, we have
contribution by indicator – For newly selected Business Units, we have verified the verified the application of the Sustainable Purchasing Criteria,
Environmental 64% 62% of revenue from relevant activities* appreciation and application of the Environmental Criteria, implemented analytical procedures and verified, on a sample basis,
management and 66% of priority facilities and tested the data by means of random checks which consisted the calculations and consolidation of data.
systems in verifying calculations and comparing source data with For the Sustainable Purchasing Indicators, the review described above
Sanitary risks 51% 49% of the population served with drinking supporting documents. allows us to provide limited assurance that the selected data,
water, 56% of sites involved in legionella
– For Business Units for which a review was performed the two identified by the symbol (1a), are free of any significant anomaly.
risk prevention plan (hot water production
plants and cooling towers of Veolia Energy), previous years and followed up on this year, we have analyzed in A higher level of assurance would have required more extensive work.
and 47% of incinerated non-hazardous detail the anomaly risks, analyzed material variations of data with
waste respect to the previous year and verified the correct application of Information about the Criteria
Climate 74%* 77% of direct CO2 emissions*, 72% of observations stated during the review performed the previous year. The Environmental and Sustainable Purchasing Criteria call from
change direct and indirect emissions (electricity For the Environmental Indicators identified by the symbol (1a),
and heat) of total greenhouse gases*, our part for the following remarks.
73% of total energy consumption* the review described above allows us to provide limited assurance
that the selected data are free of any significant anomaly. A higher
68% 66% direct CH4 emissions, 58% of Relevance
the overall reduction of greenhouse gas level of assurance would have required more extensive work.
■ The Company remains innovative in the field of the measurement
emissions, 67% of total energy production,
and 56% of renewable energy
of sanitary risks by publishing quantitative indicators of the quality
→ Reasonable assurance on the Environmental Indicators of drinking water (water quality classes), of legionella (advancement of
consumption
For the Environmental Indicators identified by the symbol (1b), the risk prevention plan) and of dioxins. However, the Company does
Water and 58% 56% of drinking water volumes introduced
specifically EMS deployment, total energy consumption, direct CO2 not report information on the treatment of leachates from landfills.
wastewater into networks, 63% of the water
distribution network length and 54% emissions, and total direct and indirect emissions of greenhouse ■ Indicators related to NOx and SOx emissions measure the impact
of the installed capacity of wastewater gases, the degree of precision with which our review was conducted, of waste incineration activities but do not cover the impacts
treatment plants similar to the procedure described above but in greater detail, of energy production and transportation.
Waste 55% 47% of treated waste and 63% of and particularly concerning the detailed tests, allows us to provide ■ For 2010, the Company has improved the publication of
wastewater sludge
reasonable assurance. Sustainable Purchasing Indicators and added indicators related
Transportation 51% 51% of the total road vehicles fleet
to the contractualization and evaluation of sustainability
* These indicators are subject to reasonable assurance. → Limited assurance on the Sustainable Purchasing Indicators requirements of suppliers.
We conducted the following review, for all the Sustainable ■ The Company could:
Purchasing Indicators: – complete its reporting by monitoring the performance of its
■ we have assessed the Sustainable Purchasing Criteria with respect suppliers relative to sustainability issues, by measuring the level
to their accuracy, understandability, neutrality, completeness and of customer satisfaction and by following environmental events
relevance with respect to the Company’s activities and the (incidents or accidents);
sustainable purchasing reporting practices published in 2010 using – reinforce the environmental reporting of activities not currently
a selected sample of 15 comparable environmental services reported (engineering and works or services to industrial
companies; activities, specifically in the water sector);
■ at the Company level and for its four divisions (water, energy – extend its accounting of the environment beyond the scope of
services, waste management and transportation), we have its operational activities (demand management, water resource
interviewed those in charge of sustainable purchasing reporting; management, management of subcontractors, etc.) as part of
an eco-design rationale.
Veolia Environnement — Independent opinions / E&Y independent opinion 75

77. Completeness also in total greenhouse gas emissions), as well as a mechanical ■ Conclusions
■ The reporting scope is described in the “Details of methodology increase in the methane capture rate; → Limited assurance
used in environmental and purchasing reporting” section of – this update was, however, not reflected in the estimate Based on our review, nothing has come to our attention that causes
the 2010 CSR performance digest (with the addition of of the recovered portion of landfilled waste that is used us to believe that the Environmental Indicators identified by
the footnotes associated with the environmental performance in the calculation of the waste disposal rate. the symbol (1a) and the Sustainable Purchasing Indicators identified
dashboard), most importantly regarding the scope of ■ The cross-division “carbon efficiency ratio” evolves mainly with by the symbol (1a) were not established, in all material respects,
the Company’s activities worldwide. the activity of the Company and is very complex to drive. in accordance with the Environmental and Purchasing Criteria.
■ The Company could be more specific with respect to the definition The numerator is composed of the overall reduction of greenhouse
of operational control, particularly in the case of joint control gas emissions as related to the Company’s base scenarios, which → Reasonable assurance
(for example, the Proactiva joint venture in South America), control include CO2 emission reductions or avoided CO2 emissions from In our opinion, the Environmental Indicators identified by the symbol
of multi-division activities (for example, BS Energy or waste and very varied sources cumulated over several years while their (1b) as related to EMS deployment, total energy consumption,
energy activities in Porto), direct Company control (multiservice relevance or coherence was not consistently evaluated. direct CO2 emissions, and total direct and indirect greenhouse gas
subsidiaries), subcontracted activities or financial year acquisitions ■ Within the sustainable purchasing reporting, “sustainable clauses”
emissions were established, in all material respects, in accordance
and transfers. and “sustainable training” could be defined more precisely with the Environmental Criteria.
■ The purchasing reporting scope has been specified this year and and communicated more forcefully in order to reduce the risk
henceforth refers to purchasing officers, suppliers and contracts of diverging interpretations. Neuilly-sur-Seine (France), May 2, 2011
referenced in an online tool implemented in 2010. This significant
improvement ensures that the reporting will extensively cover Reliability The Statutory Auditor, Assisted by ERNST&YOUNG
the Company’s worldwide activities. ■ The environmental reporting reliability has been strengthened ERNST&YOUNG Climate Change
by the extension of the Company’s environmental information et Autres and Sustainability Services
Understandability and neutrality system to all divisions. Only a limited number of indicators are Nicolas Pfeuty Éric Duvaud
■ The Company assesses the deployment of its Environmental still reported outside of this system.
Management System based on a set of criteria that helps ■ Data management of the Environmental Indicators could
understand the progress of the EMS (policy, impacts, measures, be improved by more frequent reporting of a limited set of key
audits, etc.). The definition of these criteria is not yet precise enough indicators and by analyzing variations on a stable scope
to ensure an unequivocal interpretation at the operational level. (at the level of Business Units, contracts or facilities).
■ The Company reports the proportion of priority facilities evaluated
during the previous five years. In the absence of a precise
definition, the evaluations that are accounted for (ISO 14001
audits, environmental audits, self-evaluation, etc.) can be
heterogeneous. The various types of evaluation are not specified
at the Company or division level.
■ The estimation methodology used for methane emissions was
updated again this year in order to exclude fermentable waste
from treated waste:
– This update was only applied to the current year, which generates
a significant mechanical drop in methane emissions (therefore
Veolia Environnement — Independent opinions / E&Y independent opinion 76

78. 3 KPMG independent opinion
Statutory Auditor’s report providing limited assurance
on a selection of social indicators for the Veolia
■ interviewed the people in charge of the social reporting process
at the Holding company and at the four divisions(2) of the Company.
Conclusion
Based on our review, we did not identify any material misstatements
Environnement group It enabled us to assess the correct application of the Protocol which could call into question the fact that the Data mentioned
and to verify, on a test basis, the calculations and Data on pages 67 and 68 of the 2010 CSR Performance Digest, identified
Period ended December 31, 2010 consolidation. We also carried out an analytical review of the Data; by the ** symbol, have not, in all material respects, been prepared
This is a free translation into English of the original report issued ■ performed detailed tests on several business units(3) selected on in accordance with the above-mentioned Protocol.
in the French language and is provided solely for the convenience the basis of their activities, locations and contributions
of English-speaking readers. This report should be read Paris-la Défense, April 26, 2011
to the Company’s consolidated Data, as well as the results of the
in conjunction with, and construed in accordance with, French work performed over the previous years. The selected business
law and professional auditing standards applicable in France. The statutory auditor
units represent 18.6% of the Company’s consolidated headcount.
KPMG Audit
As requested and in our capacity as Statutory Auditor of Veolia We verified that the units had understood and applied the Protocol.
Department of KPMG SA
Environnement, we have performed a review to enable us to provide On a test basis, we verified the calculations, performed consistency
a limited level of assurance on a selection of 2010 social indicators(1) controls and reconciled the Data with the supporting
Jay Nirsimloo Baudouin Griton Philippe Arnaud
(“the Data”) selected by the Veolia Environnement group and documentation.
identified by the ** symbol on pages 67 and 68 of the 2010 CSR The environment and sustainability specialists of our firm assisted Partner Partner Partner
Performance Digest which is available on the Company’s website us in the completion of our work. in charge of
at www.veolia.com. the Sustainability
Information on the procedures and Climate Change
The conclusions expressed below relate solely to these Data
We have the following comments to make on the reporting process: Services
and not to all the indicators presented.
■ Detailed reporting procedures have been set out.
The Data were prepared under the responsibility of the Human
They are updated annually and sent to all the Company
Resources Department in accordance with the internal
contributors in five languages.
protocol “List and Definition of Human Resources Indicators”
■ All the business units in the scope use the same IT tool for reporting
(“the Protocol”). The reporting methodology provided on page 80
purposes. This ensures that the collection and consolidation of the
of the 2010 CSR Performance Digest specifies the data collection
Data is reliable, particularly due to automatic controls.
or calculation methodologies used to calculate the published
■ A stringent control environment is in place, in particular at division
performance indicators. It is our responsibility, based on the work
level and our work at site level enabled us to observe that
performed, to express a conclusion on the selected Data.
the Protocol was understood and properly followed by the verified
(1) Total headcount at 31/12/N, Total annual headcount (full-time equivalent), Headcount
Nature and scope of the review business units. However: full-time equivalent (unlimited-term contracts), Hours of training, Weekly work time
– The reporting process could be further improved at site level (in hours), Annual amount of working days per employee, Average number of working
We performed our review in accordance with the ISAE 3000 standards, days per week for a full-time employee, Absenteeism in calendar days (employees
in compliance with applicable professional guidelines in France. with an increased involvement of the hierarchy regarding with an unlimited-term contract), Absenteeism in calendar days (fixed-term contract),
the validation of the reported Data; Total number of overtime hours, Work accidents with sick leave (excluding the journey
We planned and performed the assurance engagement described to and from work), Work days lost due in calendar days to work accidents (excluding
below to provide limited assurance that the selected Data are free – The control of the correct application of the calculation the journey to and from work) (unlimited-term and fixed-term contracts), Work accident
methodologies should be further strengthened at site level, frequency rate, Work accident severity rate.
of material misstatement. A higher level of assurance would have (2) Veolia Water, Veolia Energy – Dalkia, Veolia Environmental Services, Veolia Transport.
required a more extensive review. in particular regarding the “Total number of calendar days lost (3) Veolia Water: OTV France and Société des Eaux de Marseille (France), Berlinwasser
Gruppe (Germany), Veolia Water North America (US), Veolia Water Central (UK), Lanzhou
through occupational accidents” performance indicator; Veolia Water Co (China), SC Apa Nova Bucuresti (Romania), Veolia Energy: Dalkia France
For the selected Data, we have: – The performance indicator related to the number of training hours (France), DK Energia (Spain), Veolia Environmental Services: SARP France, OTUS France,
■ assessed the Protocol with respect to its relevance, reliability, TAIS France and Veolia Propreté Ile-de-France (France), Veolia Environmental Services
needs to be defined more precisely in the Protocol, in order to Holdings (UK), Veolia Transport: TCAR (France), Veolia Transportation Services (US)
neutrality, understandability and completeness; ensure consistency of the Data calculated by the business units. and Veolia Transport Sverige (Sweden).
Veolia Environnement — Independent opinions 77

79. DETAILS OF
METHODOLOGY
78

80. 1 Details of methodology used in environmental
and purchasing reporting
In the absence of any recognized and relevant reporting baseline for Consolidation method ■ the Company’s policy of incorporating sustainable development
its activities, the Company has defined its own reporting procedures The environmental data within the scope described above into purchasing;
based on best practices and draft international standards. are fully consolidated. In general, purchasing data are also fully ■ regulatory obligations (NRE law in France).
consolidated, unless it is specifically stated that only data for
Methodological procedures France are consolidated. Consolidation and checks
The procedures of the Company are composed of: Environmental data are consolidated and checked by each Division
■ for its environmental indicators, a company-wide Measurement and Scope variations for environmental data and by the Environment Department, based on data collected from
Reporting Protocol, available on the corporate website Scope variations are taken into account on the date on which the business units. For certain indicators, data are calculated or
(www.veolia.com/en/group/performance/environmental-performance/) they become effective. Acquisitions, the creation of companies estimated directly at the divisional level.
supplemented by specific instructions for each Division; or contracts won may, however, only be taken into account after The most relevant environmental indicators have been
■ for its sustainable purchasing indicators, a Reporting Protocol a full year of operation. For 2010, the main changes in scope independently appraised since 2001 by Ernst & Young, the
available on the corporate website or activity were: Company’s Statutory Auditor. The detailed report can be found
(www.veolia.com/en/group/performance/sustainable-purchasing). ■ Veolia Water: acquisition of new contracts in Belgium, Qatar, on pages 74-76.
Oman, China, Thailand and Japan, inclusion in the reporting scope Purchasing data are consolidated and checked by the Company’s
of Monégasque des Eaux et St Martin and the sale of contracts in Purchasing Department, and were also checked by the Statutory
Scope of reporting and consolidation method
France and Thailand. Auditor for the second year.
The scope of environmental reporting covers all worldwide activities
■ Veolia Energy – Dalkia: inclusion in the reporting scope of Turkey
over which the Company has operational control. Activities in the
and exclusion of Algeria, business development in France, Italy, Limits to the methodology
construction and operation of industrial water systems are excluded
Czech Republic, Sweden, UK, USA and South Korea.
from the scope of reporting. Some subcontracted activities may There can be limits to the environmental and purchasing
■ Veolia Transport: acquisition of various contracts in China,
also be included in the scope, in particular in the field of waste indicators due to:
South Korea and Morocco, and the sale of contracts, mainly
management (e.g., biogas conversion) or transportation. ■ the lack of harmonization between national and international
in the UK.
legislation;
■ Veolia Environmental Services: acquisition of new business units,
The scope of purchasing reporting covers all of the Company’s ■ the unrepresentative nature of certain measurements and
mainly in the UK and France, and the sale of contracts, mainly
purchasing officers registered on the Veolia Environnement estimations;
in France, UK and USA.
Purchasing Information System, and covers the contracts and ■ changes in definition that may affect comparison of the indicators;
approved suppliers listed on this same tool (except for specific cases ■ the practicalities of collection methods.
set out in the Protocol). The purchasing Information System lists Choice of indicators Taking into account these elements, we consider the accuracy
principally all cross-division and cross-function contracts that are The indicators have been chosen in order to track:
of most of our data to be within 5-10%.
handled by joint managerial groupings (Corporate, Division, Country, ■ the Company’s commitments and policy (EMS, environmental
Business Units and Regions). In addition, some Business Units have audits, etc.);
the possibility of listing their local contracts in this same tool. ■ performance related to the Company’s main challenges and
impacts;
Veolia Environnement — Details of methodology 79

81. 2 Details of methodology
used in social reporting
In the absence of any recognized and relevant reporting baseline for This broke down as: ■ changes in definition that may affect comparison of the indicators;
its activities, the Company has defined its own reporting procedures ■ Veolia Water: 471 new employees, for a 0.49% increase ■ particularities of labor laws in some countries;
for social data based on best practices and draft international in the division’s workforce; ■ the practicalities of collection methods;
standards. ■ Veolia Energy – Dalkia: 900 new employees, for a 1.71% increase; ■ the availability of source data when the reporting process must
■ Veolia Environmental Services: 860 fewer employees than in 2009, be completed.
Methodological procedures for a 1% decrease;
■ Veolia Transport: 3,165 more employees than in 2009,
The procedures of the Company are composed of: Additional details
■ a protocol for the indicators reported, which is available for a 4% increase. In 2010, the calculation methods for the staff turnover rate were
in five languages and can be consulted by contacting the Veolia modified:
Environnement Human Resources Department; Choice of indicators ■ The calculation was made by including certain departures under
■ a methodology for gathering, checking, analyzing and The indicators have been chosen in order to track: fixed-term contracts in the figures for unlimited-term contracts as
consolidating the data, based on reporting software that includes ■ performance related to the Company’s main human resources a full-time equivalent. To be more precise, departures under
a workflow process. challenges; fixed-term contracts for reasons other than the end of the contract
■ effects of the Company’s labor practices; were taken into account;
■ regulatory obligations (NRE law in France). ■ It was modified in order to ensure that only departures under
Scope and consolidation methods
The scope of social reporting covers all consolidated companies unlimited-term contracts were counted in the figures for the
whose human resources are managed by the Company. Consolidation and checks workforce under unlimited-term contracts as a full-time equivalent;
■ The figures for the previous years were adjusted in accordance with
In the case of Proactiva (water and waste management activities Automated checks are performed at the business unit level
in South America), the companies owned 50-50 by Veolia by the software package used. the new calculation methods in order to provide comparable data.
Environnement and a Spanish company partner are included Social data are consolidated and checked by each Division and
in the reporting scope. by the Veolia Environnement Human Resources Department. As concerns the accident severity rate, the definition chosen by
The most relevant social indicators set by the Company have been the Company is the number of days lost to workplace accidents,
Consolidation method subject to an independent audit by KPMG since the 2007 financial including days lost during the year under review due to accidents
The social data within this scope are fully consolidated. that occurred in previous years. Differences in the application
year. The report is available page 77.
of this method can occur in some business units.
Scope variations
Scope variations are taken into account on the date on which Limits to the methodology
they become effective. Acquisitions, the creation of companies There can be limits to the social indicators due to:
or contracts won may, however, only be taken into account after ■ the lack of harmonization between national and international
a full year of operation. For 2010, there was very little change legislation;
in the workforce (a total increase of 1.4%). ■ the mix of data managed and of tools in the Company’s many
subsidiaries;
Veolia Environnement — Details of methodology 80

82. Veolia Environnement
Sustainable Development Department
developpement.durable@veolia.com
36-38, avenue Kléber – 75116 Paris – France
Tel: +33 (0)1 71 75 00 00 – Fax: +33 (0)1 71 75 10 00
www.veolia.com
2010 Annual and Sustainability Report
www.annualreport.veolia.com
Designed and produced by: