CSR Performance digest

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2011-04-04

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CSR Performance digest

  1. 1. 2010 CSRPERFORMANCEDIGEST
  2. 2. The global benchmark in environmental solutionsVeolia Environnement operates in 77 countries around the world, servinglocal public authorities and industrial companies. Veolia Environnement’sclients enjoy access to expertise in four complementary areas: watercycle management, waste management and resource recovery, energymanagement, and travel mobility services. The company designs andimplements tailored solutions for its clients that combine economicefficiency with control over environmental impacts, thereby helpingto combat climate change, save resources and conserve ecosystems.Four divisions:Veolia WaterVeolia Environmental ServicesVeolia Energy – DalkiaVeolia Transport€34,787 million in consolidated revenue*€2,056 million in adjusted operating income317,034 employees in 77 countries (at December 31, 2010)* Revenue from continuing operations as defined by International Financial Reporting Standards (IFRS). 1
  3. 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 sustainable5 Committed to sustainable development7 Structured organization development is a demanding ambition that is based on a shared strategic11 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 services21 Active social responsibility Innovation, teaching skills, building expertise and measuring performance23 Partnering with international organizations are the foundations that Veolia Environnement relies on to manage its Corporate Social Responsability (CSR) program. MANAGING ENVIRONMENTAL PERFORMANCE28 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 impact35 Conserve ecosystems and biodiversity The aim of this Performance Digest is to bring together in a single39 Protect natural resources document all the data that form the basis of our company’s CSR approach. MANAGING SOCIAL PERFORMANCE45 Employment trends, a reflection of the company’s business activities47 Managing employees to reflect local needs50 Four HR priorities underpinning Corporate Social Responsibility MANAGING RESPONSIBLE PURCHASING59 Sustainable purchasing policy60 Incorporate sustainable development in the purchasing process61 Sustainable development training and awareness-raising for purchasing officers62 Commit our suppliers to sustainable development63 Evaluate our suppliers’ CSR commitment and performance REPORTING INDICATORS65 Environmental indicators67 Social indicators69 Good governance standards71 INDEPENDENT OPINIONS78 DETAILS OF METHODOLOGY 2
  4. 4. MANAGINGCORPORATERESPONSIBILITY 3
  5. 5. As the world leader in environmental solutions, Veolia Environnement must adaptits activities to the social and environmental upheaval caused by resource depletion.This is why sustainable development issues form an integral part of the contract policiesthat are incorporated in our day-to-day operations.In a clear display of commitment at the operating level, we reinforced our Sustainable DevelopmentDepartment in 2010 so that it could focus on serving the company’s businesses and on providingall the support needed to ensure that the various facets of sustainable development are factoredinto 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 governanceand measures its performance using relevant indicators. Veolia Environnement — Managing corporate responsibility 4
  6. 6. 1 Committed to sustainable developmentWhatever the geographical context, The “Ethics, Commitment and Responsibility” program 3. Raise awareness of environmental challenges and the ensuingVeolia 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 ofstandards and the recommendations fundamental values our employees share and must reflect in the advice we provide and our expertise, to meet the needsof 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 improvefor 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. 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 toOur commitment under the Global Compact furthering the cause of water as a vital human right.Veolia Environnement joined the United Nations Global Compacton 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 forgovernance bodies followed by a declaration of membership its viewpoint on this matter and has always responded and contributed actively to the worksigned by its Senior Executive Vice-President. Since then, that culminated in 2010 with this important declaration. The resolution stipulates that publica permanent correspondent has been monitoring our close authorities are the guarantors of the effective implementation of the Right to Water and thatrelations and contacts with the Global Compact Board they may engage third-party players to provide water and sanitation services while respectingin New York, which meets regularly with Veolia representatives. the principles of transparency, non-discrimination and empowerment. Given that nearly 1 billionOur 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 andresponsibility 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 ofBy 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 andrespecting the protection of internationally proclaimed humanrights within its sphere of influence and to ensuring that its owncompanies were not complicit in human rights abuses.For several years now, Veolia Environnement has committedto respecting human rights in both its activities and in thecountries where it operates. For example, tests conductedin several developing countries (Morocco, Niger, India, Ecuador,etc.) demonstrate that it is possible to reconcile service qualityand accessibility and to encourage respect for the human rightsof the populations it serves. Veolia Environnement — Managing corporate responsibility / Committed to sustainable development 6
  8. 8. 2 Structured organization COMPLIANCE MANAGEMENT ANTICIPATION FORWARD THINKINGTo 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 universitiesto-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&Dmanagement 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 forumVeolia Environnement uses a variety of bodies and methods Internal Audit Department defines and deploys company the “Ethics, Commitment for dialogue with the academicto 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.orgstages of the issues affecting the company. The Sustainable Sustainable purchasing and internal control proceduresDevelopment Department, which is directly accountable to independently and objectively reporting Risk Management Independent Sustainablethe 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 Environnementthis 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 sustainableand 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 Innovationdevelopment 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 companyand 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 Departmentto 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.comFor further information, visit www.annualreport.veolia.com Veolia Environnement — Managing corporate responsibility / Structured organization 7
  9. 9. 2.1 Coordinated anticipation of risksVeolia Environnement’s growth is supported Overall management of risks Ensuring service continuityby 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. Sincethe 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 alertsbasic services that are essential to community and then implement the action plans needed. To approve ans business continuity plans at various levels, ensuring thatlife and to industry demands constant vigilance risk reduction or risk transfer plans and monitor their service is maintained or resumed following unusual events. Theseand preparedness: the management of the risks implementation, the Risk Management Department works have proved effective in a number of situations, particularlydelegated 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. 10. 2.2 Ethics and governanceIn 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 inGeneral’s Department would be responsible the company’s ethical principles are deployed in the functional Germany. The Ethics Committee has also conducted an internalfor applying and monitoring the company’s departments concerned and by the Internal Control Department. profile-raising communication campaign aimed especially at thepolicy 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 employeesVeolia Environnement’s “Ethics, Commitment and Responsibility” of corruption prevention. Veolia Environnement uses training to ingrain its ethical cultureprogram(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 executivesguide 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 managersVeolia 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. 11. 2.3 Representing our interestsVeolia Environnement contributes to reflection, In 2010, Veolia Environnement’s main contributions were as Last, Veolia Environnement renewed its listing on the registerdiscussions and work initiated by the French follows: of Interest Representatives of the European Commission. Our Brussels employees in direct contact with the Europeanand 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 Energythe 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 theinternal 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 ofVeolia 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. 12. 3 Assessment and management proceduresProgress is impossible unless we measure whathas been done and evaluate what remains to 3.1 Internal procedures ANTICIPATING SUSTAINABLE DEVELOPMENT ISSUESbe done. We have to manage performance Environmental reportingby making ambitious commitments, produce At the end of 2009, Veolia Environnement began ■ Around 100 indicators monitored since 2001 usingaccurate 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 externalAs a company listed on France’s CAC 40 index, and Reporting of Environmental Indicators. sustainability factors provided by internationalVeolia 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 ofinformation and statements. In addition, our Social reporting our sustainable development strategy. It enables us ■ Actual human resources situation measured using 200 socialcompany 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 environmentalgives its opinion on the company’s CSR policy. for a total of 1,239 separate legal entities. responsibility policies. In this way, it supplementsAll this information allows us to see where ■ A network of 700 correspondents to collect annual data using our internal information and helps us identify prioritywe stand and serves as a guide for continuous dedicated software. areas by region and by issue, and also feeds otherimprovement of our sustainable development mechanisms and financial decision-making proceduresperformance. 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. 13. 3.2 Selection by extra-financial indexes and company rankingsExtra-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 mostmeasure 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, Veoliaperformance. 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’senvironmental performance, ethics, human sustainable development performance remains at a high levelrights, customer care, supplier relations and (71/100). The company’s scores were higher than 2009 for Classified “Prime” by Oekom Researchdialogue 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 project2004. 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 Carbonand tightened, Veolia Environnement’s recurrent inclusion Stock Market Index (DJGTSMI), only 323 were selected for inclusion Disclosure Leadership Index (CDLI) Francein 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, whichperformance and long-term commitment to sustainable the European selection of the DJSI (Dow Jones Sustainability is an improvement on the previous yeardevelopment. The FTSE4Good index comprises about Europe Index). (+6 points). CDLI selects the companies with the best quality900 companies listed on the FTSE Global Equity indexes. responses at the Carbon Disclosure Project (CDP) and rewardsThese companies are selected on the basis of a series of Ethibel Sustainability Indexes (Vigeo) transparent communication on climate change. The CDP’s aiminternationally recognized corporate responsibility and Veolia Environnement’s inclusion in the Ethibel Excellence Europe is to assist investment decisions so they account for the effectssustainable 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. 14. 3.3 Solicited external ratingsEvery year, for the last seven years, Veolia BMJ Ratings evaluates the company’s activities in its fourEnvironnement has asked to be evaluated by divisions and covers the environment, human resources, 2005 2006 2007 2008 2009 2010BMJ 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 2011it is meeting its corporate responsibilities. The Since 2008, targeted audits have been carried out in business for 2010, shows satisfactory results above the sectorresults of these assessments help the company units in Europe (France, Germany, UK, Ireland, Spain, Estonia and standards. The overall performance was similar in all CSRrefine 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. 15. 3.4 The Independent Sustainable Development Committee’s viewof Veolia Environnement’s sustainable development policyThe Independent Committee (IC) has continued its work The IC has also reviewed the Company’s policies and programsin advising the company on sustainability and corporate for research and development, in particular the Innovationresponsibility. The new Chairman of the company, Antoine Frérot, Accelerator and advances in biotechnology. Through ourhas reaffirmed his commitment to the process and to his oversight of this work, we aim to ensure that Veolia retainsinvolvement in the deliberations of the Committee. In future, its leadership as a cutting-edge innovator—particularlyIC 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 theThe IC has reviewed the work of the Ethics Committee, which issues raised by the Jerusalem Tramway (1), consider what lessonsit 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 sustainabilityof recommendations to improve its workings including an targets and methodology and the company’s involvementextension of its membership, the strengthening of its local and expectations for the World Water Summit in Marseillesmechanisms, and the particular consideration of protection and Rio+20.of workers in countries where cultural considerations militateagainst filing legitimate complaints. In some countries withno tradition of whistleblowing, special care needs to be takento ensure that management makes itself approachable John Gummerin 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. 16. MANAGINGSOCIETALPERFORMANCE 15
  17. 17. Through the services it provides, Veolia Environnement develops deep roots in localcommunities by playing a direct part in their everyday lives.We feel it is our responsibility to develop trustful relationships with our stakeholders so thatthey 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, sincethe public services it manages are indispensable to ensuring a quality of life that is satisfactoryand 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 accessto basic services across a diverse spectrum of contexts and countries and thus meet the needsof the public authorities that entrust us with the management of their services.To manage the societal contributions of our activities more effectively, in late 2010we set up a Social Commitment and Perspective Unit within our Sustainable DevelopmentDepartment. The unit’s role is, on the one hand, to consolidate and develop our company’sexpertise in the area of social innovation so as to respond more effectively to the needsand 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. 18. 1 Contributing to societal development within the framework of contractual services1.1 Dialogue and supportAll of our company’s four divisions develop local initiatives To accurately assess social costs and benefits, developto inform local communities of the services they provide appropriate solutions and inform and support the familiesand promote dialogue. These initiatives include neighborhood concerned, Veolia Environnement forms special teams locallymeetings, meetings with elected representatives and local that include employees who have been trained in socialnon-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 areasdialogue 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 takeand via the IDEA system that Veolia Water proposed and the suggestions and comments of local communitiesset 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. 19. 1.2 Enabling access to basic services 1.3 Creating business models that reflect social and economic realitiesOne 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, transportationby 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 companiesto 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 organizedVeolia 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 providersservice management contracts, Veolia Water works with Veolia Water’s corporate social responsibility: into account, by either eliminating the most unacceptablethe authorities that delegate the services to conduct programs 1. Do more with the same infrastructure. practices, such as child labor, while providing the socialto 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 findwater 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, solidfinancial, 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 populationthat 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. 20. 1.4 Adapting tarifs and prices to local marketsService 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 capabilitieseach service contract. However, Veolia Environnement can who are having difficulty making their payments. This unit, of local populations. Achieving these innovations effectivelypropose pricing arrangements to make these services more which works with social workers in the field, handled requires not only partnership with the public authoritiesaccessible to the most disadvantaged populations. Particular 1,700 individual cases in 2010. Its work involves helping and elected representatives, but also with sociologistscare 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 socialcommunities. In some countries, contractual pricing information and administrative assistance. This unit also entrepreneurs and local public services that can providecommitments 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 principleIn Varna, Bulgaria, where households have little disposable officials, apartment building operators and receivers. In 2010, of social acceptability Veolia Environnment works withincome in comparison with heating costs, Veolia Energy – Dalkia some 310 cases involving such buildings were handled. its partners to design and implement innovative financinghas 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 connectof 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 firstto 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 programsand distribution, Veolia Energy-Dalkia can improve the insulation to provide subsidized connections to pipe and power systemsof 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. 21. 1.5 Measuring the social impact of the company’s activitiesPeople’s well-being, the smooth functioning of communitiesand human development are key concerns at VeoliaEnvironnement and are at the foundation of everything we do,covering the entire spectrum of water, transportation, wastemanagement and energy services, all of which are essential.This means that the services we provide must gradually improvethe living conditions of local populations and have a positiveimpact in general on human development. In some cases,these improvements are clearly expected by clients and ASSESSMENT OF THE IMPACT OF SUBSIDIZEDare explicit contractual objectives. UTILITY CONNECTIONS IN MOROCCOYet we are also quite vigilant about the potential negative socialimpacts that our activities may have locally. These negative In 2006, Veolia Environnement Morocco and its Tangier-based subsidiary Amendis decided to assessimpacts 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 TangierAs in the area of environmental performance, Veolia Environnement since 2002. This assessment was made in conjunction with the Abdul Latif Jameel Povertyconsiders 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. 22. 2 Active social responsibility2.1 Contributing to local developmentVeolia 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 Servicesnature 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 actorsin 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 integrationgenerate. 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 Veoliato 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 forVeolia Environnement, a founding member and supporter and by local communities in 2009 and 2010. This project has consumption—is provided by young volunteers as partof PIMMS of their civil service. The pilot project conducted so far enabled eight people with critically low resources to findIn France “Multiservice Mediation and Information Points”, in 2009-2010 involved 100 volunteers, including 64 in jobs, including three under permanent employment contractsknown as PIMMS, serve as a liaison between communities the two Delegations assisting 114 families. These young at a materials recovery facility, three temporary jobsthat 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 civicPIMMS 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 phaseservices 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 improveeducation 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 togetherVeolia 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 RSAthe federation of PIMMS that owns the PIMMS trademark and employment earned income supplement. Working in small groups in partnerand manages the network of local PIMMS, in partnership Veolia Environmental Services in central-western France companies, the RSA recipients have the opportunity to makewith 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 themactors 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 extendedin 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, wasand 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. 23. 2.2 Supporting innovation 2.3 New business models 2.4 The Veoliathrough start-ups for the most difficult situations Environnement Foundation’s commitment in the fieldThe company-wide Veolia Innovation Accelerator (VIA) program Goalmari project assessment Since its creation in 2004, the Veolia Environnementwas designed to facilitate the identification, assessment The Goalmari project, conducted in partnership with Grameen Bank, Foundation has supported over 1,000 outreach, workforceand implementation of the eco-technologies capable of most the winner of the 2006 Nobel Peace Prize, continues. Three years after development and environmental conservation projectseffectively 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 servesstart-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 volunteerproviding 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 emergencyresearch tools, enabling full-scale testing of solutions at 200 pilot populations that live in areas where groundwater naturally contains humanitarian and international development aidindustrial facilities, and promoting technological innovations high concentrations of arsenic. assignments. In 2010, 100 new projects were undertakencommercially 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 partnershipextensive 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 Environnementwas 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 twothe 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 AgrisudFor more information about Veolia Environnement’s research Since 1992, NGO Agrisud International has been supportingendeavors, see the Research & Innovation section of the company’s the creation of very small family-run farms and agricultural enterpriseswebsite at www.veolia.com for the Research & Innovation Report in underdeveloped countries, thereby stimulating economic activityand 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. 24. 3 Partnerships with international organizationsVeolia 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 Coalitionand 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 byDevelopment 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 withknowledge between cities and towns and applying methodological their environmental performance and benefit from the the International Chamber of Commerce and the Associationapproaches. 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. 25. COMMUNICATION ON PROGRESS IN IMPLEMENTING SUSTAINABLE DEVELOPMENT BEST PRACTICEVeolia Environnement regularly informs the Global Compact of the best practices ■ A public lighting program in the city of Fortaleza, Brazil, to foster socialit 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. 26. MANAGINGENVIRONMENTALPERFORMANCE 25
  27. 27. A reliable, structured system was required to manage the company’s environmental impacts and compliance withenvironmental regulations. Since 2002, the Environmental Management System (EMS) has served as the instrumentfor improvement in the fields of environment and environmental health. Applied in all divisions and structuredaround four levels of responsibility (corporate, division, business units and sites), the EMS enables the evaluationof environmental impacts, compliance with the regulations and the company’s internal requirements, the settingof 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 reportsdirectly to the company’s senior management. The committee ensures overall consistency in the EMS by guaranteeinga coherent view of the extent to which impacts are controlled and defines the strategic orientations on environmentalmanagement every year. In addition, the EMS is overseen by the Environmental Management Committee, made upof 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 EMSdeployment, 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. 28. In connection with our 2009-2011 environmental program, we defined quantified targets along withcommitments on trends for 10 key indicators covering the main environmental priorities. The valuesset for these targets by the end of 2011 are indicative and may be revised, in particular dependingon 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, 2010Environmental Management System (EMS) implementation 81% 85%Environmental evaluation of priority facilities 85% >95%in the past five years New methodology in 2009Percentage of renewable and alternative energy 26% >25%in total energy consumptionCarbon 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 populationPercentage of treated waste disposed of without any energy 53.0% 51.5%or materials recoveryPercentage 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/kmby 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. 29. 1 Manage environmental performancePercentage 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. TargetPercentage 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

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