CSR Performance digest

2010 CSRPERFORMANCE DIGEST

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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

effi ciency 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 defi ned by International Financial Reporting Standards (IFRS).

2

In the face of major issues concerning the sharing of scarce resources

and access to basic services, being the benchmark in sustainable

development is a demanding ambition that is based on a shared strategic

vision and an effi cient, coherent and legible managerial structure.

This ambition obliges us to be exemplary and transparent in the eyes

of all our stakeholders.

Innovation, teaching skills, building expertise and measuring performance

are the foundations that Veolia Environnement relies on to manage

its Corporate Social Responsability (CSR) program.

Preparing company-wide indicators is a diffi cult and delicate undertaking,

and we take pains to publish pertinent, verifi able and transparent data.

The aim of this Performance Digest is to bring together in a single

document all the data that form the basis of our company’s CSR approach.

MANAGING CORPORATE

RESPONSIBILITY5 Committed to sustainable development

7 Structured organization

11 Assessment and management procedures

MANAGING

SOCIETAL PERFORMANCE

17 Contributing to societal development

within the framework of contractual services

21 Active social responsibility

23 Partnering with international organizations

MANAGING ENVIRONMENTAL

PERFORMANCE28 Manage environmental performance

29 Combat climate change

33 Mitigate our impact

35 Conserve ecosystems and biodiversity

39 Protect natural resources

MANAGING SOCIAL PERFORMANCE45 Employment trends, a refl ection of the company’s business activities

47 Managing employees to refl ect local needs

50 Four HR priorities underpinning Corporate Social Responsibility

MANAGING RESPONSIBLE PURCHASING59 Sustainable purchasing policy

60 Incorporate sustainable development in the purchasing process

61 Sustainable development training and awareness-raising

for purchasing offi cers

62 Commit our suppliers to sustainable development

63 Evaluate our suppliers’ CSR commitment and performance

REPORTING INDICATORS65 Environmental indicators

67 Social indicators

69 Good governance standards

71 INDEPENDENT OPINIONS

78 DETAILS OF METHODOLOGY

3

MANAGINGCORPORATERESPONSIBILITY

4 Veolia Environnement — Managing corporate responsibility

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 off ers 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.

5 Veolia Environnement — Managing corporate responsibility / Committed to sustainable development

The “Ethics, Commitment and Responsibility” program In 2003, Veolia Environnement introduced the “Ethics,

Commitment and Responsibility” program to serve as guiding

principles for all its employees. This program outlines the

fundamental values our employees share and must refl ect in

their behavior under all circumstances. This includes strict

respect for the law in eff ect in all the countries where we operate,

loyalty within the company and toward all our stakeholders,

social responsibility, risk management, quality company

information and governance, and commitment to sustainable

development.

For more information please consult the “Ethics, Commitment

and Responsibility Program” report on our website.

Sustainable Development Charter In line with our “Ethics, Commitment and Responsibility”

Program, in 2006 we outlined our commitment to sustainable

development in a 12-point Charter:

1. Protect the environment; contribute to conserving natural

resources and biodiversity, and combat climate change.

2. Promote—through innovation, research and development—

environmental, economic and social solutions that will meet

the needs of future generations.

3. Raise awareness of environmental challenges and the ensuing

need for behavioral changes among all concerned with our

activities.

4. Adapt our service off ers, through dialog, the quality of

the advice we provide and our expertise, to meet the needs

and expectations of clients.

5. Ensure our employees’ health and safety and help improve

public health.

6. Provide working conditions in which fundamental human

rights and international labor standards are complied with.

7. Promote diversity and combat discrimination to guarantee

equal opportunities.

8. Encourage skills development and upward mobility for

our employees throughout their career.

9. Gradually set our own environmental and social standards

to be applied to all our operations around the world.

10. Base our corporate governance on transparent

communication, anticipation of risks and the defi nition of rules

for ethical conduct and compliance.

11. Contribute to local economic and social development,

and to meeting international goals for access to essential services.

12. Encourage partners, subcontractors and suppliers to adhere

to our values and make their own contribution to our sustainable

development commitments.

Whatever the geographical context,

Veolia Environnement’s activities must be

carried out in compliance with both national

standards and the recommendations

of international organizations like the ILO

and OECD, in particular as concerns respect

for basic rights, accounting for cultural diversity

and protecting the environment.

1

Committed to sustainable development

6 Veolia Environnement — Managing corporate responsibility / Committed to sustainable development

Our commitment under the Global Compact Veolia Environnement joined the United Nations Global Compact

on June 12, 2003 as a result of an offi cial decision of its

governance bodies followed by a declaration of membership

signed by its Senior Executive Vice-President. Since then,

a permanent correspondent has been monitoring our close

relations and contacts with the Global Compact Board

in New York, which meets regularly with Veolia representatives.

Our participation in the Global Compact has become a major

consideration in all aspects of our company’s social

responsibility policy.

Our commitment to human rights By joining the United Nations Global Compact,

Veolia Environnement committed notably to supporting and

respecting the protection of internationally proclaimed human

rights within its sphere of infl uence 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 welcomed the offi cial 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

furthering the cause of water as a vital human right.

Since 2007, Veolia Environnement has been asked regularly by the Human Rights Council for

its viewpoint on this matter and has always responded and contributed actively to the work

that culminated in 2010 with this important declaration. The resolution stipulates that public

authorities are the guarantors of the eff ective implementation of the Right to Water and that

they may engage third-party players to provide water and sanitation services while respecting

the principles of transparency, non-discrimination and empowerment. Given that nearly 1 billion

people do not have access to safe drinking water and 2.6 billion do not have access to sanitation,

by clarifying the roles, the resolution will help advance the successful completion of new and

more ambitious projects that will increase access to these basic services.

Veolia Environnement is a modest contributor given the size of the challenge, but it is a part of

the solution to turn the Right to Water into a concrete and eff ective reality.

RECOGNITION OF THE RIGHT TO WATER

7 Veolia Environnement — Managing corporate responsibility / Structured organization

2

Structured organization

COMPLIANCE

Legal DepartmentEnsures that company activities

comply with the regulations

and provides legal intelligence.

IT and Administrative Systems DepartmentFormalizes and deploys internal

control procedures (transposed for

the divisions and business units).

Internal Audit DepartmentAssesses the company’s risk

management, governance

and internal control procedures

independently and objectively

and contributes to improving

these procedures using

a systematic and methodical

approach.

Fraud reporting Information transmitted to

the heads of internal audit,

IT and Administrative Systems

Department and to the Accounts

and Audit Committee to report

cases of fi nancial fraud.

MANAGEMENT

Environmental Management System Managed by the Sustainable

Development Department, which

defi nes and deploys company

policy on the environment

and environmental health.

Social reporting Managed by the Human

Resources Department, which

defi nes and deploys company

policy on human resources.

Sustainable purchasing reporting Managed by the Purchasing

and Sustainable Development

Departments.

Client reporting Managed by the divisions’

marketing departments.

Extra-fi nancial ratingManaged by the Sustainable

Development Department.

Campus Veolia EnvironnementPersonnel training to meet

company needs.

Veolia Environnement Foundation Financial assistance for projects

and volunteering of skills.

www.fondation.veolia.com

ANTICIPATION

Research, Innovation and Sustainable Development Strategy Committee (attached to the Board of Directors)Assesses the company’s R&D

and sustainable development

strategies and policies.

Ethics Committee (made up of four independent members)Ensures compliance with

the “Ethics, Commitment

and Responsibility” program

(alert system and ethics audits).

Risk Management DepartmentCoordinates the analysis of risks

that could aff ect the company’s

activities and implements action

plans.

Research and Innovation (VERI)Manages and coordinates R&D

programs on priority company

issues.

European Aff airs DepartmentPlans, coordinates and represents

the company’s position to the

French authorities and European

Union institutions.

FORWARD THINKING

Research and InnovationPartnership with universities

and programs to drive innovation

in eco-technologies.

Institut Veolia Environnement (IVE)Forecasts economic, environmental

and social trends and challenges,

based on the work of a network

of experts. Serves as a forum

for dialogue with the academic

community and civil society.

www.institut.veolia.org

Independent Sustainable Development CommitteeHelps Veolia Environnement

move forward in its vision of

and thinking on sustainable

development.

For further information, visit www.annualreport.veolia.com

To anchor sustainable development in the day-

to-day operations of its businesses, Veolia

Environnement incorporates the concept in its

management systems by defi ning commitments

and deploying policies, objectives and procedures.

Veolia Environnement uses a variety of bodies and methods

to ensure its corporate responsibility is actively managed at all

stages of the issues aff ecting the company. The Sustainable

Development Department, which is directly accountable to

the Secretary General’s Department, drives and coordinates

this process and encourages the adaptation of contract models

and commercial off ers in order to make sustainable development

a priority and a lever for value creation. Our sustainable

development policy involves a large number of internal

stakeholders—functional departments, operating divisions

and independent bodies—and therefore requires a structured

approach for managing all the challenges, from compliance

to forward thinking.


2.1 Coordinated anticipation of risks

Veolia Environnement’s growth is supported

by overall and coordinated management of

the risks associated with its activities. Providing

basic services that are essential to community

life and to industry demands constant vigilance

and preparedness: the management of the risks

delegated to us by our clients is at the heart

of our company’s expertise.

Overall management of risksA dedicated risk management organization has been rolled

out for the company as a whole and each of its four divisions.

We use risk mapping to identify and rank risks and opportunities

and then implement the action plans needed. To approve

risk reduction or risk transfer plans and monitor their

implementation, the Risk Management Department works

with the Risk Management Committee, which comprises

the heads of the functional departments at head offi ce

and in the divisions. Each division also has its own Risk

Management Committee.

Risk management involves close cooperation between the Risk

Management Department, the Internal Audit Department,

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.

Ensuring service continuityFor its clients and customers, risk management allows

the company to ensure service quality and continuity. Since

2005, the Company has deployed processes for managing alerts

ans business continuity plans at various levels, ensuring that

service is maintained or resumed following unusual events. These

have proved eff ective in a number of situations, particularly

during simulation exercises.

Company-wide social and environmental guidelinesRisk management supports our international growth, particularly

when it comes to environmental and social best practices.

Our program for putting in place company-wide social and

environmental guidelines give us a fi rm foundation for this.


2.2 Ethics and governance

In 2010, Veolia Environnement’s executive

management decided that the Secretary

General’s Department would be responsible

for applying and monitoring the company’s

policy on ethics.

The “Ethics, Commitment and Responsibility” Program Veolia Environnement’s “Ethics, Commitment and Responsibility”

program(1)

, introduced in 2003 and translated into nine languages,

is binding on all our employees. It is a corporate project designed to

guide the behavior of our employees in their day-to-day activities.

Veolia Environnement uses a number of internal mechanisms

to reduce the risk of non-compliance with ethical principles:

the “Competition Law Compliance Guide” ■ (1) (published in 2008)

and the “Guide to Managing and Minimizing Criminal Risk

Exposure in Group Operations” (published in 2010) have been

distributed to managers;

we also have mechanisms to ensure strict control over ■

subcontracting. The Purchasing Charter(1)

and the Purchasing

Code of Conduct have sections describing the ethical practices

to be respected and promoted by anyone involved in company

procurement;

our contract model applying to commercial intermediaries and ■

business introducers also contains a detailed “ethics and

anticorruption clause” and;

our sponsorship and patronage activities must follow a special ■

procedure(1)

.

These documents are available on our intranet site and training

courses are also available to supplement them.

Furthermore, control procedures to ensure compliance with

the company’s ethical principles are deployed in the functional

departments concerned and by the Internal Control Department.

Last, ethical questions have been systematically incorporated in

the auditing duties of the Internal Audit Department since 2008.

In 2009, an internal audit was conducted on the implementation

of corruption prevention.

The Ethics CommitteeIn March 2004, we established an Ethics Committee comprising

independent members to examine any issues pertaining to the

“Ethics, Commitment and Responsibility” program. It can be

contacted by any employee or can itself take the initiative to

analyze any issue concerning ethics and conduct visits to check

ethics in all of the company’s operations. The Ethics Committee’s

mission is to make recommendations concerning Veolia

Environnement’s fundamental values, either on a subject it has

analyzed at its own initiative or following questions submitted by

others. The Ethics Committee remains the ultimate body to receive

alerts that cannot be communicated to the managers in charge.

The committee reports on this whistleblowing system to

the Accounts and Audit Committee. The Ethics Committee’s code

of conduct stipulates that it must treat matters with strict

impartiality and confi dentiality.

In recent years, a member of the Ethics Committee visited Egypt,

the United Arab Emirates, Norway and Japan. In 2010, as part of

his duties, the chairman of the Ethics Committee visited sites in

Germany. The Ethics Committee has also conducted an internal

profi le-raising communication campaign aimed especially at the

company’s non-executive employees.

Raising awareness and training employeesVeolia Environnement uses training to ingrain its ethical culture

in its employees. In 2004 and 2005, the “Ethics and Business Life”

awareness-raising campaign targeted over 400 senior executives

in France and other countries. From 2008 over 3,500 managers

attended the “Competition law compliance” training program,

which consisted of seminars, support material and online

training in France and other countries. Lastly, the new “Preventing

criminal risk exposure and raising awareness of corruption risks”

training program was rolled out in France and attended by

around 800 managers in 2010. It is being deployed outside

France in 2011.

(1) Documents available on our website.


2.3 Representing our interests

Veolia Environnement contributes to refl ection,

discussions and work initiated by the French

and European government authorities,

professional associations, think-tanks, NGOs

and international institutions on changes in

the management of environmental solutions.

We share our expertise with these stakeholders at their behest

or on issues that have a direct or indirect impact on our activities.

Given the importance of the European environmental and

internal market regulatory framework, we set up a European

Aff airs Department in 2010 to coordinate the representation of

Veolia Environnement’s interests to French and EU authorities.

In 2010, Veolia Environnement’s main contributions were as

follows:

– European institutions:

Revision of directive 86/278/EEC on sewage sludge management. ■

Development of the EU’s climate policy. ■

Development of the EU’s energy policy ■ (“Towards a New Energy

Strategy for Europe 2011-2020”).

Assessment of the regional policy ■ (5th Cohesion Report).

EU Initiative on Concessions. ■

State aid and the Monti-Kroes package. ■

– The French Parliament, as part of hearings organized by the

rapporteurs of the information missions and workgroups:

“Treating household waste: what options in the wake of ■

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 Aff airs Commission.

“Implementation of the law on guidance and lifelong ■

vocational training”, National Assembly Report.

“What can researchers and public authorities do about ■

the infl uenza A (H1N1) virus and virus mutation?”,

the Parliamentary Offi ce of Scientifi c and Technological

Assessment’s Report.

Last, Veolia Environnement renewed its listing on the register

of Interest Representatives of the European Commission.

Our Brussels employees in direct contact with the European

Parliament are also accredited lobbyists to it. In France,

Veolia Environnement is registered on the public list of interest

representatives of the French National Assembly and is currently

being added to the French Senate’s list.

11 Veolia Environnement — Managing corporate responsibility / Assessment and management procedures

At the end of 2009, Veolia Environnement began

drafting the “Atlas of Responsibilities and Opportunities

for Sustainability”. The objective is to use an e-device to

centralize, region by region, information on external

sustainability factors provided by international

organizations and acknowledged institutional players.

This tool stimulates thinking on the management of

our sustainable development strategy. It enables us

to improve our understanding of the characteristics of

the regions where we operate that could aff ect the

implementation of our social and environmental

responsibility policies. In this way, it supplements

our internal information and helps us identify priority

areas by region and by issue, and also feeds other

mechanisms and fi nancial decision-making procedures

with information on sustainable development.

ANTICIPATING SUSTAINABLE

DEVELOPMENT ISSUES

Progress is impossible unless we measure what

has been done and evaluate what remains to

be done. We have to manage performance

by making ambitious commitments, produce

accurate and complete reports and take

into account external views and judgments.

As a company listed on France’s CAC 40 index,

Veolia Environnement is rated for its extra-

fi nancial performance based on published

information and statements. In addition, our

company can solicit ratings. The Independent

Sustainable Development Committee also

gives its opinion on the company’s CSR policy.

All this information allows us to see where

we stand and serves as a guide for continuous

improvement of our sustainable development

performance.

3

Assessment and management procedures

3.1 Internal procedures

Environmental reporting Around 100 indicators monitored since 2001 using ■

the Environmental Information System (EIS).

Procedures defi ned in the Protocol for the Measurement ■

and Reporting of Environmental Indicators.

Deployed in 2,197 local business units where data are entered. ■

Social reporting Actual human resources situation measured using 200 social ■

indicators.

The scope covers 77 countries where the company operates, ■

for a total of 1,239 separate legal entities.

A network of 700 correspondents to collect annual data using ■

dedicated software.

Purchasing reportingTracking of fi ve 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 defi ned in the “Client Reporting Procedures” guide. ■


3.2 Selection by extra-fi nancial indexes and company rankings

Extra-fi nancial ratings and inclusion

in specialized stock market indexes provide a

measure of companies’ sustainable development

performance. The principal areas evaluated

are governance, human resources management,

environmental performance, ethics, human

rights, customer care, supplier relations and

dialogue with civil society.

FTSE4Good Veolia Environment has been listed on the FTSE4Good since

2004. It is assessed by Eiris (United Kingdom) and Ethifi nance

(France). Considering that inclusion criteria are regularly reviewed

and tightened, Veolia Environnement’s recurrent inclusion

in these indexes is an acknowledgment of the company’s

performance and long-term commitment to sustainable

development. The FTSE4Good index comprises about

900 companies listed on the FTSE Global Equity indexes.

These companies are selected on the basis of a series of

internationally recognized corporate responsibility and

sustainable development criteria and standards.

Evaluation by SAMIn 2010, Veolia Environnement was not selected in the Dow Jones

Sustainability Indexes (DJSI). The “best in class” methodology used

by the agency and applied to the “Water Utilities” sector led this

year to the selection of only one company even though results of

other companies were good. The rating of Veolia Environnement’s

sustainable development performance remains at a high level

(71/100). The company’s scores were higher than 2009 for

11 criteria out of 20 and received a grade above the average of

the “Water Utilities” sector concerning 17 criteria. In addition,

Veolia Environnement received the highest scores in six categories.

Since 2003, Veolia Environnement has been selected for inclusion

in these indexes every year, except for 2005 and 2010.

The Dow Jones Sustainability indexes rate the performance

of companies that are leaders in sustainable development. In 2010,

of the 2,500 largest companies on the Dow Jones Global Total

Stock Market Index (DJGTSMI), only 323 were selected for inclusion

in the DJSI World. Some 163 companies of the DJGTSMI composed

the European selection of the DJSI (Dow Jones Sustainability

Europe Index).

Ethibel Sustainability Indexes (Vigeo) Veolia Environnement’s inclusion in the Ethibel Excellence Europe

and Ethibel Excellence Global indexes was confi rmed in 2010,

on the basis of assessments by Vigeo. The Ethibel Sustainability

indexes off er an overall view of the fi nancial performance of the

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.

ASPI Eurozone (Vigeo) The European Index ASPI Eurozone comprises the 120 most

competitive companies in terms of social and environmental

responsibility listed in the eurozone. In 2010, Veolia

Environnement was included once again in the index,

as it was from 2004 to June 2008.

Classifi ed “Prime” by Oekom Research In 2010, Veolia Environnement maintained the “Prime” category

classifi cation assigned by Oekom Research to companies that are

among the best in their industry for social and environmental

responsibility.

Carbon disclosure projectVeolia Environnement was ranked eighth out

of the 20 leading companies in the Carbon

Disclosure Leadership Index (CDLI) France

in 2010 with a score of 82/100, which

is an improvement on the previous year

(+6 points). CDLI selects the companies with the best quality

responses at the Carbon Disclosure Project (CDP) and rewards

transparent communication on climate change. The CDP’s aim

is to assist investment decisions so they account for the eff ects

of climate change on companies. The association is supported

by several institutional investors with worldwide assets worth

$64 billion.


3.3 Solicited external ratings

Every year, for the last seven years, Veolia

Environnement has asked to be evaluated by

BMJ Ratings, an extra-fi nancial rating agency,

so that it has an up-to-date assessment of how

it is meeting its corporate responsibilities. The

results of these assessments help the company

refi ne its sustainable development policy.

Veolia Environnement’s latest rating, updated in 2011

for 2010, shows satisfactory results above the sector

standards. The overall performance was similar in all CSR

fi elds analyzed, even though the agency observed a dip

in the governance fi eld.

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-fi nancial criteria in its cross-division purchasing

policy and also intensifi ed CSR training and awareness

raising for purchasing officers. It also noted increased

extra-fi nancial rating of key suppliers.

2005 2006 2007 2008 2009 2010

A++ A++ AA+ AA+ AA++ AA++

BMJ Ratings evaluates the company’s activities in its four

divisions and covers the environment, human resources,

commercial function, purchasing and subcontracting,

relationships with civil society and corporate governance.

Since 2008, targeted audits have been carried out in business

units in Europe (France, Germany, UK, Ireland, Spain, Estonia and

Romania), Asia (China and India), Africa (Morocco), North America

(USA) and South America (Brazil, Colombia, Ecuador, Argentina,

Mexico, Chile and Venezuela).


3.4 The Independent Sustainable Development Committee’s view of Veolia Environnement’s sustainable development policy

The Independent Committee (IC) has continued its work

in advising the company on sustainability and corporate

responsibility. The new Chairman of the company, Antoine Frérot,

has reaffi rmed his commitment to the process and to his

involvement in the deliberations of the Committee. In future,

IC will have at least two formal meetings together with regular

informal updates and advice.

The IC has reviewed the work of the Ethics Committee, which

it sees as carrying out an important function in a company with

so large and diverse a workforce. The IC has made a number

of recommendations to improve its workings including an

extension of its membership, the strengthening of its local

mechanisms, and the particular consideration of protection

of workers in countries where cultural considerations militate

against fi ling legitimate complaints. In some countries with

no tradition of whistleblowing, special care needs to be taken

to ensure that management makes itself approachable

in a way which is clearly understood by the whole workforce.

(1) Up-to-date information is available on our corporate website: www.veolia.com/en/medias/focus-on/jlrt.htm

The IC has also reviewed the Company’s policies and programs

for research and development, in particular the Innovation

Accelerator and advances in biotechnology. Through our

oversight of this work, we aim to ensure that Veolia retains

its leadership as a cutting-edge innovator—particularly

in water technology.

At our meetings in 2011, we would expect to look again at the

issues raised by the Jerusalem Tramway (1)

, consider what lessons

should be learned, and make recommendations to management.

We will also consider, among other things, Veolia’s sustainability

targets and methodology and the company’s involvement

and expectations for the World Water Summit in Marseilles

and Rio+20.

John GummerChairman of the Independent Sustainable Development Committee

15

MANAGINGSOCIETALPERFORMANCE

16 Veolia Environnement — Managing societal performance

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 eff ectively, 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 eff ectively 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.

17 Veolia Environnement — Managing societal performance / Contributing to societal development within the framework of contractual services

All of our company’s four divisions develop local initiatives

to inform local communities of the services they provide

and promote dialogue. These initiatives include neighborhood

meetings, meetings with elected representatives and local

non-profi t organizations, visits to sites and “open-house”

events to inform the general public. In Romania, for example,

Veolia Water helped set up an ongoing process to promote

dialogue about its water service with its customers through

weekly meetings with “CAB” building-management associations

and owner and renter associations. In late 2009, HABITAT,

a Romanian consumers’ association, took over this process

and via the IDEA system that Veolia Water proposed and

set up, now provides Veolia Water with innovative suggestions

submitted by customers to continuously improve service.

To accurately assess social costs and benefi ts, develop

appropriate solutions and inform and support the families

concerned, Veolia Environnement forms special teams locally

that include employees who have been trained in social

expertise. New types of tools are also created to make customers’

lives easier and meet their needs, such as:

mobile customer service centers near large urban areas ■

that are available at times agreed with local populations,

as is the case in Morocco;

prepaid solutions for water and energy service; ■

neighborhood meetings to explain projects and take ■

the suggestions and comments of local communities

into account.

Providing social support to disadvantaged populations

is increasingly becoming a distinct activity for

Veolia Environnement.

1.1 Dialogue and support

1 Contributing to societal development within the framework of contractual services


One of the Millennium Development Goals (MDG) is to “Halve,

by 2015, the proportion of people without sustainable access

to safe drinking water and to basic sanitation services”.

Veolia Water is the largest private-sector provider of these

services in the emerging and developing countries. Under public

service management contracts, Veolia Water works with

the authorities that delegate the services to conduct programs

to provide these basic services to communities that do not have

water supply and sanitation systems. This activity has lead

Veolia Water to adopt a social approach that covers technical,

fi nancial, marketing, communication and legal aspects

of its operations and to work with numerous stakeholders

that off er expertise that is complementary to its own.

The body of expertise Veolia Water has developed for this

purpose is referred to as ACCES and is based on the following

eight principles, of which the fi rst fi ve seek to adapt its activities

provided under public service management contracts to

low-income customers, while the last three directly concern

Veolia Water’s corporate social responsibility:

1. Do more with the same infrastructure.

2. Implement pricing policies that are appropriate and socially

acceptable.

3. Increase the number of subsidized connections.

4. Create a new collective, secure and personalized way of

distributing water to people without access to home-service

pipes.

5. Develop customer services that meet the needs of local

communities.

6. Explain how water should be used to optimize the benefi ts

of access to services.

7. Research and Innovation: develop new service models

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.

1.2 Enabling access to basic services

In the developing countries, waste, water, transportation

and energy services are often provided by small companies

and individuals, who are sometimes not even formally organized

and play an important part in the local and economic fabric.

Modern service systems must therefore take these providers

into account, by either eliminating the most unacceptable

practices, such as child labor, while providing the social

and educational support this requires, or by seeking to fi nd

a balance between confl icting interests.

For example, at the Presidente landfi ll site in Colombia, solid

waste had traditionally been recovered by rag-collectors.

To improve the situation of this highly disadvantaged population

while preserving its employment, Proactiva Colombia set up

a training and social integration program in partnership

with local authorities. It includes a variety of actions: workshops

in health education, projects to create microenterprises, literacy

training, eff orts to improve self-esteem, and training in various

occupations such as preparing compost and medicinal plants.

1.3 Creating business models that refl ect social and economic realities


Service charges for the users of water, energy and transportation

services are systematically set by the public authority under

each service contract. However, Veolia Environnement can

propose pricing arrangements to make these services more

accessible to the most disadvantaged populations. Particular

care must also be taken to ensure that service charges are

aligned with the demand for services and income of local

communities. In some countries, contractual pricing

commitments can be made under locally established policies

to ensure sustainable development and reduce social disparities.

In Varna, Bulgaria, where households have little disposable

income in comparison with heating costs, Veolia Energy – Dalkia

has made a commitment to ensuring long-term price stability.

Eff orts to increase energy production and the effi ciency

of facilities have made it possible to reduce energy costs

and therefore the price charged for heating service. The number

of unpaid bills has been halved and the average time required

to collect payments has decreased by three months.

In addition to increasing the effi ciency of energy production

and distribution, Veolia Energy-Dalkia can improve the insulation

of its customers’ buildings and homes and thus help them reduce

their energy bills.

In 2006, in the Greater Paris region, Veolia Water’s customer

service department set up a special unit to assist customers

who are having diffi culty making their payments. This unit,

which works with social workers in the fi eld, handled

1,700 individual cases in 2010. Its work involves helping

customers pay their bills by providing those who benefi t

from subsidized housing payments or are over-indebted with

information and administrative assistance. This unit also

participates in plans to rehabilitate apartment buildings

and closely monitors the situations of buildings that are under

rehabilitation or in receivership, working closely with community

offi cials, apartment building operators and receivers. In 2010,

some 310 cases involving such buildings were handled.

But solidarity is not just a question of the price charged to use

a service. It sometimes also involves the cost of accessing

the service, such as the cost of connection to a water or sewer

pipe or a power cable. In some countries that are experiencing

particularly rapid urban growth, at the request of its public-

authority clients Veolia Environnement develops programs

to provide subsidized connections to pipe and power systems

in accordance with the local social and economic context.

These programs require innovative marketing, engineering,

fi nancial and legal techniques to meet the needs and capabilities

of local populations. Achieving these innovations eff ectively

requires not only partnership with the public authorities

and elected representatives, but also with sociologists

and other specialists (local neighborhood associations,

NGOs and other civil society actors), as well as with social

entrepreneurs and local public services that can provide

complementary expertise.

To ensure that the families involved in these programs

are able to bear these costs, in accordance with the principle

of social acceptability Veolia Environnment works with

its partners to design and implement innovative fi nancing

mechanisms such as zero-interest loans of up to 10 years,

social funds fi nanced from various service revenues,

and external sources of fi nancing.

In Morocco this policy has made it possible to connect

350,000 people to potable water systems since the fi rst

contracts were signed in 2002.

1.4 Adapting tarifs and prices to local markets


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

are explicit contractual objectives.

Yet we are also quite vigilant about the potential negative social

impacts that our activities may have locally. These negative

impacts must be systematically controlled and minimized

in so far as possible.

As in the area of environmental performance, Veolia Environnement

considers that it must now measure and evaluate the social

impacts of its activities and implement action plans that improve

the societal performance of the services it provides.

1.5 Measuring the social impact of the company’s activities

In 2006, Veolia Environnement Morocco and its Tangier-based subsidiary Amendis decided to assess

the actual impact on human development (health, well-being, education, independence, and so on)

of the subsidized water and sanitation system individual connections it had completed in Tangier

since 2002. This assessment was made in conjunction with the Abdul Latif Jameel Poverty

Action Lab (J-PAL), an economic-research laboratory at the Massachussetts Institute of Technology,

headed by Esther Dufl o, and a leading authority in the assessment of development programs.

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 fi rst time that the randomized trial method was used

for a home-service drinking water program. The measured eff ects 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”.

ASSESSMENT OF THE IMPACT OF SUBSIDIZED

UTILITY CONNECTIONS IN MOROCCO

21 Veolia Environnement — Managing societal performance / Active social responsibility

Veolia Environnement contributes to the economic and social

development of the areas it serves, not only due to the inherent

nature of the services it provides but also through its investment

in these areas and the direct and indirect jobs its services

generate.

The company’s subsidiaries also develop local initiatives

to promote social integration through employment.

Veolia Environnement, a founding member and supporter of PIMMSIn France “Multiservice Mediation and Information Points”,

known as PIMMS, serve as a liaison between communities

that have little access to public services and those who provide

these services. Managed by local non-profi t organizations,

PIMMS have two objectives: helping people have acess to public

services more eff ectively and helping people with limited

education and skills fi nd employment.

Veolia Water helped found the PIMMS in Lyons, France, in 1995.

Veolia Environnement is now a founding member of UPIMMS,

the federation of PIMMS that owns the PIMMS trademark

and manages the network of local PIMMS, in partnership

with the French government, local authorities and other local

actors and stakeholders. The company has played an active role

in creating 21 of the 42 PIMMS currently in operation in France

and helps monitor their activities.

Promoting eco-citizenship and employment with “MédiaTerre” and “Unis-Cité”Through its foundation and its Northwest and Ile-de-France

Delegations, Veolia Environnement has been working in

partnership with the Unis-Cités agency to support the MédiaTerre

project, which aims to help lower-income families adopt more

sustainable consumption behavior. This assistance—which

among other things includes promoting the adoption of

eco-friendly behavior to reduce waste and water and energy

consumption—is provided by young volunteers as part

of their civil service. The pilot project conducted

in 2009-2010 involved 100 volunteers, including 64 in

the two Delegations assisting 114 families. These young

people, who received eco-behavior training from Campus

Veolia Environnement, receive support and guidance in civic

education and career planning to ensure that this phase

of their service will make them better citizens and improve

their employment prospects.

The “REFLET” project to get people back into society and employment Veolia Environmental Services in central-western France

is actively involved in the REFLET project, which seeks to

help people with low employability near Nantes fi nd jobs in

the environment and waste management sectors, thereby

strengthening social bonds and improving living conditions

in these communities. Also participating in this project,

which was a joint initiative of Veolia Environmental Services

and the Nantes metropolitan area, are a variety of local actors

that include the Maison de L’Emploi, the social integration

associations L’Homme Debout and Océan, and the recycling

and refurbishing association Ecorev.

Thanks to the REFLET project, some 15 visits to Veolia

Environmental Services’ facilities and various employment

and furniture restoration workshops were organized for

and by local communities in 2009 and 2010. This project has

so far enabled eight people with critically low resources to fi nd

jobs, including three under permanent employment contracts

at a materials recovery facility, three temporary jobs

and two with L’Homme Debout.

The “100 000 Rencontres Solidaires” back-to-work projectLaunched in France, in June 2009, by the Horizons Club

in partnership with the New Agency for Active Solidarity,

the “100 000 Rencontres Solidaires” project brings together

employees who volunteer their services and recipients of the RSA

earned income supplement. Working in small groups in partner

companies, the RSA recipients have the opportunity to make

contacts and get the advice they need to encourage them

in their search for employment. This project, which was extended

in 2010 to Veolia Energy – Dalkia and Veolia Transport, was

perceived very positively by the volunteers and 30 job-seekers alike.

2.1 Contributing to local development

2

Active social responsibility

22 Veolia Environnement — Managing societal performance / Active social responsibility

The company-wide Veolia Innovation Accelerator (VIA) program

was designed to facilitate the identifi cation, assessment

and implementation of the eco-technologies capable of most

eff ectively meeting the needs of our clients as well as those of

the industry as a whole. VIA encourages cooperation between

start-ups and investors throughout the innovation process,

providing access to the network of Veolia researchers and

research tools, enabling full-scale testing of solutions at 200 pilot

industrial facilities, and promoting technological innovations

commercially by dissiminating them massively through

the company’s vast network of diverse and geographically

extensive operations. Just one year after the VIA program

was launched some 200 applications had been evaluated

and fi ve have led to partnerships with start-ups off ering

the most innovative eco-technologies capable of meeting

the environmental challenges that lie ahead.

For more information about Veolia Environnement’s research

endeavors, see the Research & Innovation section of the company’s

website at www.veolia.com for the Research & Innovation Report

and the eight R&D program booklets (available in French only).

Goalmari project assessmentThe Goalmari project, conducted in partnership with Grameen Bank,

the winner of the 2006 Nobel Peace Prize, continues. Three years after

the creation of a joint subsidiary with Veolia Water, Grameen-Veolia

Water’s fi rst drinking water plant in Bangladesh currently serves

two villages with a total population of 40,000. This plant’s objective

is to supply drinking water that meets WHO standards to poor rural

populations that live in areas where groundwater naturally contains

high concentrations of arsenic.

This fi rst social business venture is currently undergoing a sanitary

and socioeconomic assessment under a research partnership

agreement that Veolia Water signed in early 2010 with the Innovation

and Social Entrepreneurship Institute of the French business school

Essec. The objective is to assess the performance of these fi rst two

rural water projects and fi nd ways to improve the business model.

Support for AgrisudSince 1992, NGO Agrisud International has been supporting

the creation of very small family-run farms and agricultural enterprises

in underdeveloped countries, thereby stimulating economic activity

that creates jobs and wealth by meeting local market needs and

thus reducing the need to import food. Veolia Environnement provided

fi nancial 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.

Since its creation in 2004, the Veolia Environnement

Foundation has supported over 1,000 outreach, workforce

development and environmental conservation projects

and has an annal budget of €7.2 million.

Veoliaforce, the Foundation’s network of volunteer

employees, stands ready to assist in emergency

humanitarian and international development aid

assignments. In 2010, 100 new projects were undertaken

and Veoliaforce volunteers spent 1,300 days in the fi eld.

For more information see the Veolia Environnement

Foundation Report.

2.2 Supporting innovation through start-ups

2.3 New business models for the most diffi cult situations

2.4 The Veolia Environnement Foundation’s commitment in the fi eld

23 Veolia Environnement — Managing societal performance / Partnerships with international organizations

Veolia Environnement continued to work with major UN agencies

and various civil society organizations to achieve the Millennium

Development Goals and meet its commitments as a member

of the Global Compact. Through its development partnerships

Veolia Environnement seeks to foster solidarity between regions

and communities by promoting the exchange of experience and

knowledge between cities and towns and applying methodological

approaches. Here are some examples:

For eight years, Veolia Environnement has served as offi cial ■

expert to the UN-Habitat working group that prepared

the International Guidelines on Decentralization and Access

to Basic Services for All (i.e., water, sanitation, transportation

and energy services). In 2010, the municipality of Aguascalientes,

Mexico, where ProActiva Medio Ambiente, a joint subsidiary

of Veolia Environnement and the Spanish company FCC,

operates water and sanitation services, served as a pilot site

for testing the eff ectiveness of these guidelines in preventing

social exclusion. For this project the company developed

a methodological evaluation framework that it presented

at a meeting organized by the French Ministry of Foreign

and European Aff airs in October 2010 and that could serve

to extend this approach to other regions on other continents.

Veolia Environnement has joined the ■ World Urban Campaign

and the “100 Cities” initiative, both launched by UN-Habitat

at the World Urban Forum in Rio de Janeiro, Brazil, in February

2010. Veolia Environnement, in partnership with the city

of Rabat, Morocco, is to participate in these initiatives, which

will enable many of the world’s largest cities to improve

their environmental performance and benefi t from the

exchange of experience and knowledge in a decentralized

framework of cooperation between the developing countries.

Veolia Environnement sits on the World Urban Campaign

Steering Committee, which held its fi rst meeting in Shanghai

in October 2010.

For the past eight years, Veolia Environnement has also been ■

supporting the program to Strengthen Local Governance

to Improve the Management of Urban Services, sponsored by

UNITAR, the United Nations Institute for Training and Research.

Many country managers from the company’s various divisions

contributed their expertise in such areas as urban mobility,

waste collection and water services management

at 12 seminars organized in 2010.

The company has also joined the ■ “R20” Climate Action Coalition

composed of the world’s 20 largest regions and headed by

the United Nations Development Program (UNDP)

and the United Nations Environment Program (UNEP),

the objective of which is to establish Regional Climate Plans.

For this novel initiative, Veolia Environnement will work with

the International Chamber of Commerce and the Association

of European Regions to provide a comprehensive analysis

of the factors that infl uence climate in a given region.

Last, Veolia Environnement is regularly invited by the United ■

Nations Global Compact to participate in focus and working

groups on such issues as water resource management

(the Water Mandate), climate disruption (as a member

of the Caring for Climate working group at the Seoul conference

in April 2010), and doing business in confl ict zones.

3

Partnerships with international organizations

24 Veolia Environnement — Managing societal performance / Partnerships with international organizations

Veolia Environnement regularly informs the Global Compact of the best practices

it has implemented in the area of sustainable development and has reported 10 best

practices so far in its “Communication on Progress”. Here are some examples:

■ Integrated waste management in Alexandria, Egypt, with the implementation

of a clean development mechanism, in compliance with the Kyoto Protocol.

This project was awarded the UN-Habitat’s Scroll of Honor Award in 2005

for exemplary cooperation between the public and private sectors and

in particular for the excellent training and employability of waste collection

and treatment personnel.

■ Integrated management of water and wastewater services in Bucharest,

Romania, with quality performance indicators.

■ A public-private partnership to create and operate a Bus Rapid Transit (BRT)

system in Bogotá, Colombia, that facilitates access to and from the city’s

poorest neighborhoods, ensures faster transportation and signifi cantly 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.

COMMUNICATION ON PROGRESS

IN IMPLEMENTING SUSTAINABLE DEVELOPMENT BEST PRACTICE

■ A public lighting program in the city of Fortaleza, Brazil, to foster social

development and sustainable urbanization by optimizing energy consumption,

decreasing crime and highlighting the city’s architectural heritage; and

two public lighting projects in the cities of Kunming, China, and Sant Fost, Spain,

with specifi c energy savings targets.

■ Integrated water supply and sanitation services in Aguascalientes, Mexico, using

a new optimized management model that won the municipality a national prize

in 2007 for the effi ciency of its water and wastewater systems in meeting

the needs of the local residents, particularly those of the lowest income families.

■ Two environment-friendly wastewater treatment processes: Géolide

(in Marseilles, France) and Organica (in Hungary) that reduce impact on urban

environments and help protect biodiversity.

Industrial waste management ■ at ArcelorMittal’s plant in Vega do Sul, Brazil,

that deals eff ectively with environmental externalities.

25

MANAGINGENVIRONMENTALPERFORMANCE

26 Veolia Environnement — Managing environmental performance

TARGET MANAGEMENT AND VALIDATION

Environmental Liaison Committee

OPERATIONAL MANAGEMENT

Environmental Management Committee (EMC)

General audit of the Environmental Management System (Internal Auditing Department)

CONTROL AND VERIFICATION

External data verifi cationby Ernst & YoungSustainable Development

Department

ISO 9001/14001certifi cation auditsDivisions and business units

Internal EMS auditsEnvironmental Performance

Department

EMS DEPLOYMENT

Sustainable Development Department, divisions and business units

EMS requirements policyQuantifi ed targetsEnvironmental information system

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 fi elds 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 defi ned 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 defi nes 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.

27 Veolia Environnement — Managing environmental performance

In connection with our 2009-2011 environmental program, we defi ned quantifi ed 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 redefi ned at the end of 2011.

INDICATOR ACHIEVED AT DECEMBER 31, 2010

TREND 2011 TARGET

Environmental Management System (EMS) implementation 81% 85%

Environmental evaluation of priority facilities

in the past fi ve years

85% >95%

New methodology in 2009

Percentage of renewable and alternative energy

in total energy consumption

26% >25%

Carbon effi ciency ratio of Veolia Energy – Dalkia

(overall reduction in GHG emissions/total GHG emissions)

27.1% >24%

Volume of water lost in water distribution networks 1,608 million m3

(2008 reference scope)

<1,615 million m3

(2008 reference scope)(1)

Percentage of the population evaluated with water quality classes 96.1% 100%

Overall wastewater treatment effi ciency for plants

with a capacity of over 50,000 equivalent population

83.1% >80%

Percentage of treated waste disposed of without any energy

or materials recovery

53.0% 51.5%

Percentage of waste treated in incinerators

with dioxin emissions lower than 0.1 ng/Nm3 (all sites)

93.4% >95%

Unit emissions of CO, HC and particle matter (PM)

by passenger transportation vehicles

CO: 2.58 g/km

HC: 0.52 g/km

Particles: 0.21 g/km

(2008 reference scope)

CO: 2.36 g/km

HC: 0.48 g/km

Particles: 0.20 g/km

(2008 reference scope)(2)

(1) The 2009 and 2010 pro forma fi gures compared with a 2008 base geographic scope are respectively 1,644 and 1,608 million m3.

(2) The 2009 and 2010 fi gures are compared with a 2008 base geographic scope representing 84% of the fl eet of heavy road vehicles (excluding electric vehicles).

28 Veolia Environnement — Managing environmental performance / Manage environmental performance

1

Manage environmental performance

77%

2008 2009 2010 2011 Target

85%

78% 81%

Percentage of EMS implementation (including ISO 14001 certifi ed

facilities) for the relevant activities*

Percentage of priority facilities evaluated*

(in the previous fi ve years)

91%

2008 2009 2010 2011 Target

>95%

87% 85%

In 2010, the percentage implementation of the Environmental Management System (internal EMS and ISO 14001 certifi cations)

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.

Veolia Environnement’s internal EMS is applied all the way through to business unit level, in accordance with guidelines specifi c

to each division and compliant with company requirements. They are equivalent to ISO 14001 requirements.

Locally, ISO 14001 certifi cation 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 certifi cation.

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 eff orts that are underway will

be continued to reduce the risk of incorrect interpretation of EMS deployment requirements by operational staff .

An environmental evaluation was made of 85% of the total 1,454 priority facilities(1)

over the past fi ve years. This evaluation is,

within the context of the EMS, an assessment of the regulatory compliance with the applicable environmental texts. The assessment

methods are defi ned for each of the four divisions and so may diff er depending on the nature of the activity(2)

.

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 fi ve years ago.

(1) Priority facilities are those facilities with the most sensitive environmental impact for the company.

(2) ISO 14001 certifi cation audits, environmental audits (internal and external), and regulatory environmental assessments are in particular considered to be environmental assessments.* Indicator with a quantifi ed Target.

29

2

Combat climate change Total direct and indirect GHG emissions

(million metric tons CO2 eq.)

Veolia Environnement — Managing environmental performance / Combat climate change

In 2010, our total direct and indirect greenhouse gas (GHG)

emissions fell 5% overall to 47 million metric tons CO2

equivalent.

The main changes are as follows:

For Veolia Environmental Services, direct emissions fell sharply ■

by 17% as a result of the divestment of the incineration

activity’s assets in the United States as well as the improved

calibration of the methane emission calculation model used

at landfi lls, the installation of innovative biogas collection

systems, and the ongoing eff orts to manage biogas collection.

This improvement work will be continued next year and

will also result in specifi c variations.

For Veolia Energy – Dalkia, the slight 2% rise in direct emissions ■

is in particular due to increased activity in China combined

with harsher weather in 2010. Indirect emissions fell 2%,

particularly as a result of lower purchases of heat from outside

production units.

For Veolia Water, indirect emissions increased 11% compared ■

with the previous year(1)

. This increase is due to electricity

consumption for new contracts in Asia and updating

the emission factor at sites in Reunion and Guadeloupe.

For Veolia Transport, direct emissions increased 7% because ■

of increased business (new contracts), and the incorporation

of consumption of heating oil and gas at facilities. Indirect

emissions rose 43%, because of the integration of Line 9 of

the Seoul metro. Despite this rise, indirect emissions remain

limited in comparison with the fuel consumption of vehicles.

As in 2009, a reasonable level of assurance was obtained through

external verifi cation of the key data relating to climate change

(total energy consumption, direct CO2 emissions and total direct

and indirect GHG emissions). This assurance level was reached

directly through the work done by the main business units that

contributed data to the company during the visits made this year

and indirectly through the historical trust acquired over previous

years, when moderate assurance was associated with the data.

(See the Ernst & Young assurance report.)

For each of its activities, the company measures the direct

emissions of the industrial processes, vehicles, facilities

and equipment it manages, and the indirect emissions from

the electricity and heat it consumes. The greenhouse gases

concerned are:

CO ■2 emitted by combustion facilities, the incineration of

the fossil content of waste and the combustion of fuel

by mobile sources (75.9% of direct emissions);

CH ■4 from the biogas emitted by landfi lls that is not collected

by the collection systems installed, and the combustion

of compressed natural gas (23.8% of direct emissions);

■ N2O from the waste incineration process (0.4% of direct

emissions).

METHODOLOGY

2.20.2

0.218.6

0.218.3

0.2

15.2

2.023.6

0.42.4

0.12.5

0.1

2.6

2.223.4

2.1

23.9

4.944.9

2.50.3

2.9

0.3

Veolia Veolia Veolia Veolia Veolia

Water Environmental Energy – Transport Environnement Services Dalkia

Direct emissions Indirect emissions

2008

2008

2008

2008

2008

2009*

2009

2009

2009

2009*

2010

2010

2010

2010

2010

5.044.5 5.4

42.1

(1) Following a reporting error in the electricity consumption at one site, the 2009 fi gure

for indirect emissions at Veolia Water and the company as a whole has been adjusted

to enable comparison with the 2008-2010 fi gures.

30 Veolia Environnement — Managing environmental performance / Combat climate change

Overall reduction in GHG emissions

(million metric tons CO2 eq.)

0.1

19.1

26.9

5.6

2.10.1

19.5

26.8

5.9

1.250.1

19.1

27.5

7.0

1.21

2008 2009 2010

In addition, the company helps decrease overall GHG(1)

by reducing emissions at the facilities it manages and

by enabling others to avoid emissions.

In 2010, Veolia Environnement improved the overall GHG

emission reduction by 3% with 27.5 million metric tons

CO2 equivalent.

For Veolia Energy – Dalkia, the reduction improved by 18% as ■

the result of more use of wood in the energy mix and improved

recovery of alternative energies. The commissioning of

a cogeneration plant fi red by biomass in Biganos, France,

is an example of the increased use of renewable energy sources

by our activities. Last, Veolia Energy – Dalkia applies its expertise

in integrated energy management to achieve signifi cant

reductions in greenhouse gas emissions.

For Veolia Environmental Services, the reduction reversed by ■

2%, attributable to the drop in energy recovery following asset

divestments in the United States. However, it should be noted

that the GHG emissions avoided by recycling improved by 1%

following the upturn in metals recovery, especially in France.

(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 TransportCO

2 emissions avoided by:

replacing transportation in private vehicles with mass transit. ■

Veolia Environmental ServicesCO

2 emissions avoided through:

the sale of energy produced from the biogas collected ■

at landfi lls;

the sale of heat and electricity from the combustion ■

of incinerated waste;

the recovery of raw materials contained in waste. ■

Reduction of GHG emissions through:

the on-site consumption of part of the electricity generated ■

by the incineration of waste and recovery of biogas;

the collection of biogas at landfi lls. ■

Veolia Energy – Dalkia Reduction of CO

2 emissions through:

using renewable and alternative energy instead of fossil fuels; ■

proper use of energy transformation facilities (energy ■

effi ciency);

optimum supply of energy services (integrated energy ■

management);

combined production of heat and electricity (cogeneration). ■

Veolia WaterReduction of CO

2 emissions and emissions avoided through:

the on-site consumption of part of the heat and electricity ■

from the production of renewable energy on site;

the sale of energy produced from renewable energy sources ■

on site (biogas from sludge digestion, hydraulic microturbines,

heat pumps, etc.).

METHODOLOGY

Veolia Veolia Veolia Veolia Veolia

Water Environmental Energy – Transport Environnement Services Dalkia

31

55%

2008 2009 2010

54%59%

1.4 1.4 1.4

2008 2009 2010

Carbon effi ciency ratio (Veolia Environnement)

Carbon intensity of revenue

(million metric tons CO2 eq. by billion euros of revenue)


0.2940.264 0.257

2008 2009 2010

➞

➞

–2.7%

–10.2%

For a more accurate refl ection of the company’s performance,

a method applying to the four business areas has been

developed.

The method takes into account all the positive impacts from

the overall decrease in GHG emissions. Refi ned from year to year,

the method provides a carbon effi ciency ratio that refl ects the

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.

Therefore, the positive actions and impacts of Veolia

Environnement’s activity in decreasing overall GHG emissions

off sets more than half of the GHG emissions attributable

to its activities.

In addition, Veolia Energy-Dalkia, which has a specifi c objective

on this indicator, has also improved its carbon effi ciency ratio

by four points.

Taking a very broad approach, it is also possible to assess

the carbon intensity of Veolia Environnement’s revenue.

Between 2009 and 2010, the fi gure was stable at 1.4 million

metric tons CO2 equivalent per billion euros of revenue. Thus,

while continuing to develop its activities (2.5% of total revenue),

Veolia Environnement has been able to maintain the carbon

intensity of its contracts at a steady level.

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 fi gures 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:

the decreased use of coal and heating oil and its replacement ■

with gas for which the carbon equivalent emission factor

is lower;

the increased use of wood in Veolia Energy – Dalkia’s energy ■

mix, especially in France. This result refl ects the application

of the policy on increasing biomass use, which was developed

in 2007 and implemented in 2008.

Carbon performance of Veolia Energy – Dalkia’s

combustion facilities

(metric tons of CO2 per thermal MWh produced)

(1) CO2 emissions associated with electricity generation are evaluated according

to the energy mix of the business unit.

32

46.5% 48.9% 54.0%

2008 2009 2010

Methane collection rate in landfi lls

(sites under operation)


Waste decomposition in landfi lls generates biogas that is

composed of between 40% and 60% methane. By mixing with

air in the atmosphere, this biogas contributes to global warming,

all the more so as methane has a high global warming potential.

In 2010, fugitive methane emissions accounted for nearly

24% of Veolia Environnement’s direct GHG emissions. Given

this signifi cant percentage, Veolia Environnement is motivated

to continually improve:

the precision of its calculation methodologies; ■

knowledge of the typology of landfi lled waste; ■

the performance of landfi ll cell capping techniques, biogas ■

collection and its recovery as heat, electricity or as a fuel.

For this reason, the calculation of methane production at waste

landfi lls was fi ne-tuned this year with the integration in

the model of a more precise typology of the waste (percentage

of fermentable waste) at some sites. This change to the model is

the main reason for the reduction in methane emissions in 2010.

Additionally, eff orts were made to install innovative biogas

collection systems and improve management techniques,

resulting in improved performances at these sites. These two

factors combined led to a reduction in methane emissions

of 20.5%, and so to a 6 percentage points improvement in

the collection rate, which was 54% in 2010.

To improve the reliability of these results, Veolia Environmental

Services is continuing its research, in particular for

the determination of fugitive methane emissions, and has

undertaken to introduce an indicator/target to assess

its methane collection performance.

Until 2008, various models were used to calculate theoretical

methane production at landfi lls in diff erent countries

(LandGEM in the United States, GasSIM in the United Kingdom,

Swana-Ademe in France, NGERS in Australia and Tier 2, which

was recommended by the Intergovernmental Panel on Climate

Change, for other countries). It is in fact impossible to

continuously measure the emissions from sites directly because

the sources are too diff use.

Given the uncertainty due to diff erences in the design and use

of the various models (use of factors by default or calculated for

methanogenic power, type of waste, oxidation factor, the actual

collection rate, etc.), Veolia Environmental Services has used

a single model (Tier 2) to consolidate the data from all its landfi lls

worldwide since 2009.

ESTIMATING FUGITIVE METHANE

EMISSIONS

33

3

Mitigate our impact

91.1% 90.3% 96.1%

8.9% 9.7% 3.9%

2008 2009 2010

2008 2009 2010

Treatment effi ciency of wastewater treatment plants*

(capacity above 50,000 eq. pop.)

Sanitary quality of drinking water

80.9%

90.7%

81.1%

91.6%

83.1%

92.8%

80%

BOD5 treatment

effi ciency

Overall treatment

effi ciency

Target set for overall

effi ciency

Percentage of

the population evaluated

by water quality class

Percentage of

the population evaluated

solely by compliance rate

* Indicator with a quantifi ed Target.

Veolia Environnement — Managing environmental performance / Mitigate our impact

Excellent or

high-quality water

Non-compliant

water quality

97.4%

2.6%

3.1 Limiting the discharge of pollutants into water

3.2 Environmental health

In 2010, the pollution abatement rate expressed as BOD5 rose

1.2 percentage points to 92.8% – which results in highly eff ective

treatment. This improvement is due to the excellent treatment

rates of new contracts, up to 97.3%, and a one-point improvement

in the performance at plants already operated. This applies

particularly to Asia with the implementation of new biological

treatment systems at certain sites. Similarly, the overall

treatment effi ciency(1)

rose 2 points to 83.1% in 2010.

To assess the quality of the water it supplies throughout the

world, in 2007, Veolia Water created the “Quality class” indicator

based on the chemical and bacteriological parameters deemed

to be priorities by the WHO(2)

.

In 2010, Veolia Water was able to calculate this indicator for

96.1% of the total population it serves throughout the world,

up 5.8 percentage points compared with 2009. This noticeable

improvement in the coverage rate is attributable to the rollout

of a specifi c tool making water quality data collection more

reliable, along with personalized assistance for the

implementation of this indicator for new contracts.

The target remains to adapt our tools and organization

to achieve a 100% coverage rate.

With respect to the population for which it was possible

to calculate this indicator in 2010, the percentage served by

Veolia Water benefi ting from water of excellent or high quality

remained unchanged on the previous year (97.4% in 2010

compared with 97% in 2009). The presence of chronic chemical

parameters refl ecting a problem with the water resource

was noted for the remaining 2.6%.

(2) The WHO considers fi ve parameters as being widely distributed worldwide

and able to present a signifi cant danger for human health due to water-borne exposure

(Escherichia Coli, fl uorides, selenium, arsenic and nitrates).

(1) A composite indicator that takes into account and weights the diff erent forms

of pollution based on the impact analysis model developed by the French river basin

agencies: fi ve-day Biological Oxygen Demand (BOD5), Chemical Oxygen Demand (COD),

nitrogen (N), phosphorus (P) and suspended solids (SS).

34 Veolia Environnement — Managing environmental performance / Mitigate our impact

96.6% 98.6%93.4% >95%

2008 2009 2010 2011

Target

Percentage of non-hazardous waste treated in incinerators

with dioxin emissions lower than 0.1 ng/Nm3*

Waste incineration plant emissions (hazardous and non-hazardous)

in grams/metric ton of incinerated waste

Unit emissions per passenger transportation vehicle*

(g/km)

83 91 87

871 853763

55 5242

18 1614

2008 2009 2010

SOx NOx HCl Dusts

CO unit emissions HC unit emissions Particle matter (PM) (g/km) (g/km) unit emissions (g/km)

2008 2009 2010 Target pro forma 2008

2.702.49 2.58 2.37 0.560.64

0.52 0.490.24

0.27

0.21 0.20


Managing dioxin emissions from waste treated in incinerators

is a major public health issue for the company. Veolia

Environmental Services has adopted the most stringent

regulatory yardstick, i.e., that set by the European Union.

In 2010, Veolia Environmental Services saw its performance

drop due to an incomplete data set outside the European Union.

Conservatively, the tonnage concerned has been considered

as having been treated in an incinerator that does not meet

the target.

In 2010, SOx, NOx, HCl and dust emissions at incineration plants

declined due to the ongoing improvement in the performance of

fl ue gas treatment systems and to the divestment of incinerators

in the United States and South Korea.

Furthermore, the company is working on enhancing the reliability

of an indicator for measuring NOx and SOx for energy production

(Veolia Energy – Dalkia).

In 2008, Veolia Transport developed a new reference base

corresponding to 84%(1)

of the vehicle fl eet (excluding electric road

vehicles) and undertook to reach by 2011 three reduction targets:

–5% ■ (2) for carbon monoxide (CO), i.e., 2.37g/km;

–24% for hydrocarbons (HC), i.e., 0.49g/km; ■

–27% for particle matter (PM), i.e., 0.20g/km. ■

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 fl eet vehicles compliant with the Euro 4 and 5 standards

(up 22%), and the improved environmental performance as a result

of a greater number of vehicles being fi tted with particle fi lters

(up 15%).

The drop in the number of petrol vehicles (down 5%) reduced unit

CO emissions by 5% compared with 2009, to a level comparable

with that in 2008.

3.2 Environmental health 3.3 Limit air pollution

(1) The 2009 and 2010 fi gures are compared pro forma with the 2008 reference geographic

scope representing 84% of the fl eet of heavy road vehicles (excluding electric vehicles).

(2) After adjustment of the fi gures at March 31, 2010.

35 Veolia Environnement — Managing environmental performance / Conserve ecosystems and biodiversity

4

Conserve ecosystems and biodiversity

The United Nations declared 2010 the “International Year

of Biodiversity” to boost awareness among the international

community of the major issues surrounding the decrease

in the number of species and the declining quality of ecosystem

services.

Within this context, and in direct conjunction with the fi rst

two principles of the Convention on Biological Diversity (CBD)(1)

,

Veolia Environnement remains committed in particular to:

conserving ecosystems and their vitality by characterizing ■

the company’s impacts and dependency on ecosystems;

restoring and developing urban biodiversity; ■

protecting remarkable ecological areas; ■

understanding ecosystems better to inform, educate and boost ■

awareness of biodiversity issues.

These commitments are set out in the “Biodiversity: taking

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.

In 2008, Veolia Environnement signed

a partnership agreement with the French

Committee of the International Union for

the Conservation of Nature (IUCN). The aim of the action

program defi ned by the two parties is:

for the IUCN to work with the company on integrating ■

biodiversity in its corporate strategy;

to underscore the directions adopted in Research and ■

Development through a network of renowned experts;

to participate in boosting employees’ awareness through ■

training programs.

IUCN France has 55 members (ministries, state entities and

NGOs) as well as a network of around 250 experts. At the global

level, IUCN has had UN observer status since 1999.

COMMITTED TO WORKING ALONGSIDE

THE IUCN

(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 benefi ts arising out of the utilization of genetic

resources.


The impact of the company’s activitiesBy their very nature, Veolia Environnement’s activities help

conserve ecosystems by reducing environmental pollution.

The services provided by Veolia Water and Veolia Environmental

Services collect and treat wastewater and waste to contain

various forms of urban and industrial pollution and prevent them

from contaminating the soil, air, and rivers, lakes and oceans.

In energy services, the development of centralized district

heating networks, operated under continuous supervision and

subject to strict regulations, helps reduce air pollution compared

to more polluting individual systems burning heating oil or coal.

The promotion of public transportation also helps reduce air

pollution—the use of a private car can emit up to three times

the amount of local air pollution per person transported than

a bus for a given trip (Source: Ademe, French agency for

the environment and energy management, 2007).

Nonetheless, Veolia Environnement’s activities generate

secondary impacts, especially due to the consumption of

natural resources and the residual pollution in the discharge

from its facilities.

Interdependency

Veolia Environnement needs ecosystems to function properly

in order to provide some of its services. Veolia Water makes sure

it can continue to benefi t from the ecosystem service that

regulates the quality of water resources by working closely with

municipal and industrial clients to reduce accidental and chronic

pollution, and to protect water withdrawal points. By doing so,

treatment to make the raw water potable can be kept to

a minimum.

Veolia Energy – Dalkia ensures it benefi ts from the ecosystem

service that supplies biomass for its combustion facilities,

while rigorously protecting resources by directly controlling

and ensuring the sustainable management of supply, both

from forestry and agriculture.

Lastly, Veolia Water’s wastewater services and Veolia

Environmental Services’ composting and soil remediation

activities use biological processes to break down organic

components. The conservation of ecosystems is therefore

central to the development and even the future of Veolia

Environnement’s activities.

Evaluation tools

The company’s approach is above all based on identifying those

zones where it needs to take priority action, and then rolling out

an evaluation method to defi ne an action plan.

Since 2010, the company has used information from the IBAT

(Integrated Biodiversity Assessment Tool) database developed

by BirdLife International, Conservation International, IUCN

and the United Nations Environment Program in its “Atlas of

Responsibilities and Opportunities for Sustainability”. This tool

was developed internally to identify, for any given site, all

the sustainability challenges involved, including its ecological

context. Ongoing additions to the Atlas will make it possible

to include data from a geolocation data system for company

facilities.

Furthermore, the company has developed a biodiversity

diagnostic tool. The method chosen factors in the characteristics

of the natural environment and the development and

management methods applied at each site in order to compile

an action plan refl ecting local issues. The aim is to give priority

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.

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 many ecosystem services provided by wetlands have

been identifi ed, but the manner in which these services are

qualifi ed and enhanced can be improved. Consequently,

Veolia Environnement, Conservatoire du Littoral and Rivages

de France (French association of authorities and organizations

managing natural coastal and lakeside areas) have committed

to a partnership with a dual purpose:

develop research on pilot projects or sites helping to compile ■

a method for qualifying wetlands in terms of the services

rendered;

develop awareness tools for these areas for stakeholders in ■

regional development.

This program in particular refl ects the company’s commitment to

improving our knowledge of ecosystems and the appreciation

of our dependency on remarkable ecosystems.

PROTECTION AND ENHANCEMENT

OF WETLANDS

Action plans at our sitesLand managementThe aim here is to develop an alternative way of managing sites

to drive standard methods forward by incorporating conservation

into the design and management of the land at operational sites.

In particular, this involves:

reducing the frequency of lawn maintenance by late mowing; ■

promoting the regeneration of native species; ■

combating (through thermal, mechanical and manual weeding) ■

invasive exotics that colonize the environment in an

uncontrolled and rampant manner, pushing out native species;

creating ground-level and aboveground havens for fauna ■

at these sites.

Management of discharges and emissionsConventional physical-chemical approaches that involve

measuring the pollutant content in the water discharged are not

on their own suffi cient for evaluating the state of conservation

of the biological diversity of a given environment. Because

they largely focus on so-called “remarkable” species, current

conservation tools are also insuffi cient. Today, new overall

approaches are being developed to defi ne the ecological state

of an environment. The results obtained with these new tools

are currently diffi cult to translate into operational management.

As a result, the company is developing its own expertise in

biological tools to evaluate the level of danger and impact of its

discharges on aquatic environments, its air emissions and its

products (organic soil improvers and secondary raw materials).

In particular, the Research and Development teams are extending

the scope of their work to include ecological engineering that

can identify impact-reducing techniques (lagooning, grass fi lter

strips, etc.), and developing expertise in environment restoration.


The rollout of the alternative space management policy in

the past few years is ongoing, especially at the landfi lls operated

by Veolia Environmental Services.

In addition to making space management sustainable, these

practices make it possible to maintain and extend ecological

corridors in a manner that is fully compatible with landfi ll

operation methods.

In France, two landfi lls (Graulhet and Saint-Cyr-des-Gâts) have

incorporated into each operation stage (from the initial opening

to the progressive closure of the storage cells), alternative

management of the spaces and maintenance of the remarkable

areas in order to conserve their ecosystem services. They were

both awarded a label in 2010 for their excellent biodiversity

management.

In the United Kingdom, Veolia Environmental Services received

the Biodiversity Benchmark certifi cation from Wildlife Trusts for

its Croft Farm and Pitsea landfi lls in recognition of the company’s

continuous biodiversity improvement.

Veolia Environnement participated in the tenth meeting of

the Conference of the Parties (COP10) to the Convention

on Biological Diversity (CBD) in Nagoya, Japan, by presenting

the results of the study on the economic benefi ts from the reuse

of treated wastewater.

This work is part of the company’s involvement in the Road Test

for the WBCSD’s Corporate Ecosystem Valuation (CEV), through

a study carried out in Berlin, Germany, jointly with Berliner

Wasserbetriebe. The aim of this study was to prepare a fi nancial

and economic cost-benefi t study of various water management

and ground use scenarios.

We also contributed by sharing our best practices through

involvement in the document titled “Responding to the

Biodiversity Challenge – Business contribution to the CBD”

published by the WBCSD.

BIODIVERSITY AND WASTE LANDFILLS NAGOYA

Economic approach to biodiversity and ecosystem servicesAs part of the commitment to improving our understanding

of ecosystems, Veolia Environnement is also pursuing work on

promoting practices that are favorable to maintaining or

improving ecosystem services, in particular through the

“Economics and Biodiversity” working group run by the Orée

non-profi t organization. This work has led to the publication of

a document entitled “Rendre compte des dépendances et impacts

en matière de biodiversité et des services ecosystémiques : Vers

la standardisation d’un Bilan Biodiversité” (Biodiversity and

ecosystem services awareness of dependency and impacts:

Toward standardizing a Biodiversity Balance) (Orée/Foundation

for Biodiversity Research – October 2010).

Other examples of the many actions implemented at the sites

operated by Veolia Environnement are listed in the “Biodiversity:

taking action” guide available on the company’s website.

39 Veolia Environnement — Managing environmental performance / Protect natural resources

5

Protect natural resources

Percentage of waste per treatment process

(with energy or materials recovery)

Percentage of waste disposed of*

(without energy or materials recovery)

11.7% 12.5% 12.5%

18.0% 18.8% 16.8%

14.7%17.2% 17.8%

2008 2009 2010

Energy recovery from landfi lls(1)

Energy recovery from incineration

Materials recovery

55.5%51.6% 53.0%

51.5%

2008 2009 2010 2011

Target

Source-separated collection and sorting of the waste (wood, paper, board, glass, metals, plastics,

etc.) generated by industrial companies and households enables the waste to be recycled and

transformed into reusable materials. Waste that is not suitable for materials recovery can be

treated with processes allowing energy recovery. It is possible to recover the heat produced

by incinerators fi tted with energy recovery systems and to collect the biogas emitted by

the decomposition of waste in landfi lls(1)

.

In 2010, materials recovery remained stable. Progress was made in energy recovery from landfi lls

(up 0.6 percentage points) through the increased percentage of biogas recovered (up 2 percentage

points). The divestment of a number of incinerators resulted in the reduction in percentage of

waste incinerated with energy recovery (down 2 percentage points).

The percentage of waste disposed of(2)

without energy or materials recovery increased in 2010

to 53%.


(1) Calculated from a ratio between methane emissions produced and tonnages landfi lled 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.

As a consequence, the indicator covers 93.5% of waste treated (excluding transfer) by Veolia Environmental Services.


Renewable and alternative energy consumption

(thousands of MWh – Veolia Environnement)

Production of renewable and alternative energy

(thousands of MWh – Veolia Environnement)

Renewable and alternative energy as a percentage

of total energy consumption*

15.2% 16.4% 15.9%

11.3%

26.5% 27.7% 26.1%

11.2% 10.2%

>25%

2008 2009 2010 2011

Target

Renewable energy Alternative energy



25,833 28,226 27,455

19,07419,293 17,572

2008 2009 2010

12,179 12,778

5,990

10,709

5,799 5,603

2008 2009 2010


Preserving energy resources

The divisions contribute at diff erent rates to the company’s overall consumption of renewable and alternative(1)

energy.

Veolia Environmental Services accounted for 72% due to the incineration of waste and combustion of biogas recovered in its landfi lls.

Veolia Energy – Dalkia contributed 23% of this consumption due in particular to the use of wood, solar and geothermal power in

the energy mix in its combustion facilities. For its part, Veolia Water consumes renewable or alternative energy through the use of

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

sharply in Sweden and Norway.

In 2010, Veolia Environnement’s consumption of renewable and alternative energy fell 5%, again due to the divestment of part of

the incineration activity in the United States. Nonetheless, improved biogas recovery at landfi lls, the increasing use of biomass as

a source of energy and improved recovery of alternative energies at municipal waste incineration plants helped off set the decrease

at the company level.

(1) Alternative energies are natural or industrial sources of energy that would be lost if not immediately recovered. Renewable energies are indefi nitely and inexhaustibly renewed or

regenerated sources.

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

energy recovery at landfi lls).

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.

In 2010, renewable and alternative energy as a percentage of the total energy consumed by the company was 26.1%, which remained

above target.


Water distribution network effi ciency Water losses (in millions of m3)*Linear loss index in m3/km/day

1,700 1,644 1,608 2,1881,615

5,541 5,549 5,473 6,661

76.5% 77.1% 75.1% 75.3%

2008 2009 2010 2010 pro forma pro forma 2008 2008

13.9 13.4 14.9

17.1

2008 2009 2010 2010 pro forma pro forma 2008 2008

2008 2009 2010 2011 Target 2010 pro forma pro forma pro forma

2008 2008 2008

Volume consumed (in millions of m3)

Volume lost (in millions of m3)

Saving water resources

In 2010, the effi ciency of water distribution networks was 75.3%,

which is virtually unchanged compared with 2009. The same

applies at a constant scope, for which the effi ciency rate was

75.1%. The trend refl ects the excellent performance of new

contracts and the persistence of a good effi ciency rate for

existing contracts.

Expressed as a linear index, water losses totaled 17.11 m3 per day

and per kilometer for 2010. In terms of the constant 2008 scope,

this linear loss index is 14.9 m3 per day and per kilometer, which

corresponds to 1,608 million cubic meters of water lost, down

2.2% compared with the volume of water lost in 2009, and 5.4%

compared with 2008. The results are therefore in line with

Veolia Water’s target of reducing the volume of water lost by 5%

by 2011 compared with the 2008 reporting scope.


42

PERFORMANCE

MANAGINGSOCIAL

43 Veolia Environnement — Managing social performance

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 identifi ed 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.

44 Veolia Environnement — Managing social performance

Veolia Environnement worldwide

More than 10,000 employees Between 1,000 and 5,000 employees Fewer than 1,000 employees Fewer than 100 employees Campus Veolia Environnement Between 5,000 and 10,000 employees

South America21,333 employees

Europe 209,327 employees

North America29,721 employees

Africa/ Middle East 23,247 employees

Asia-Pacifi c33,406 employees

45 Veolia Environnement — Managing social performance / Employment trends, a refl ection of the company’s business activities

At December 31, 2010, Veolia Environnement

had 317,034 employees, 1.4% more than at

the end of 2009. In mainland France, there were

100,840 employees, including 13,300 managers,

compared with 100,524 and 13,141 respectively

in 2009.

This controlled growth is the result of:

Scope eff ects: the balance from mergers & acquisitions and new ■

contracts for the one part, and divestment & subsidiarization and

loss of contracts for the other, with an end result of 637 additional

employees, illustrating an overall balance. This relative stability in

the company does, however, mask some signifi cant movements.

Organic growth: the diff erence between hires and departures ■

is an additional 3,807 new employees.

2009

wor

kfor

ce: 3

12,5

90

2010

wor

kfor

ce: 3

17,0

345,803fi xed-term contracts

converted to unlimited-term contracts

+21,645–15,225 Fixed-

term

contract

+35,748–38,361

Departures Entries

Unlimited-

term

contract

+13,964–13,327 Change

in scope

16,758 internal transfers

1 Employment trends, a refl ection of the company’s business activities

Veolia Environnement’s growth strategy has been implemented

over several years, as refl ected in the comparative changes in

its four divisions.

■ Veolia Water remains the company’s main division with

96,260 employees in 67 countries. Its workforce increased 0.5%

over 2009. This growth is attributable to the development of

its positions internationally and the loss of employees in France

following the phasedown of certain activities with Suez

Environnement.

Veolia Energy – Dalkia ■ has 53,457 employees and experienced

1.7% growth in its workforce. In 2010, this business activity

entered Turkey but closed operations in Algeria and Saudi

Arabia.

■ Veolia Environmental Services, with 84,740 employees, saw

its workforce shrink 1%. After the divestment of the industrial

cleaning business in 2009, the division continued to refocus its

business by acquiring market share in Estonia, Ukraine, Latvia,

Lithuania and Qatar, while at the same time closing down

operations in Romania and South Africa.

■ Veolia Transport gained an additional 4% employees, bringing

its total workforce to 80,756, in particular because of its

business in France and the United States.

Breakdown of workforce by division in 2010

Excluding Veolia Environnement head offi ce employees: 1,821

Veolia Water: 96,260Veolia Environmental

Services: 84,740Veolia Transport: 80,756Veolia Energy – Dalkia: 53,457

17%

26%

27%

30%

Change in workforce by division

Change 2009-2010

Average annual change 2006-2010

0.5%

4.7%

1.7% 1.9%

–1.0% –1.1%–0.3%

4.1%

Veolia Water Veolia Energy – Veolia Veolia Dalkia Environmental Transport Services

46 Veolia Environnement — Managing social performance / Employment trends, a refl ection of the company’s business activities

In all businesses, the company continued to grow internationally.

In Europe, especially in France, contract renewals and the

distribution of assets made it possible to seize the best

opportunities.

Europe remains the company’s strongest geographic area,

accounting for almost two-thirds of its workforce, despite a 0.6%

drop in the number of employees. In the past fi ve years, this area

has gained 12,502 employees. In 2010, the aim was to refocus

certain activities through contract renewals and new contracts.

For example, Veolia Environmental Services withdrew from

Romania but entered Ukraine, while Veolia Energy – Dalkia

withdrew from some business areas in Poland but stepped up its

activity in the Czech Republic. In France, the contract with SEDIF,

the Greater Paris water authority, was renewed for 12 years,

and Veolia Transport won new intercity contracts.

In the past fi ve years, the Asia-Pacifi c area gained

16,017 employees, an increase of more than 90%. At the end

of 2010, there were 1,393 more employees than at the end of

the previous year (a 4.3% increase). China gained 616 employees

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

largest geographic area.

In Latin America, workforce growth, particularly in Brazil and

Mexico, was further augmented by the entry of Peru. As a result,

the number of employees grew by 5.9% in 2010, or 32% in

fi ve years.

Breakdown of workforce by geographic area in 2010

Europe (excluding France): 108,487France: 100,840

Asia-Pacifi c: 33,406

North America: 29,721Africa/Middle East: 23,247South America: 21,333

Change in workforce by geographic area

–1.4%

1.5%0.3%

4.4%

8.9%

7.2%

0.5%

5.5%

9.2%

5.9%5.1%

–2.1%

Europe France Asia- North South Africa/ (excluding France) Pacifi c America America Middle East

Change 2009-2010

Average annual change 2006-2010

In the Africa/Middle East area, the 7.3% growth in the workforce

was driven by Morocco, especially the waste management

division and the transportation contract in Rabat. Veolia

Environmental Services in Egypt and Veolia Water in Qatar

also contributed to this growth. In the past fi ve years,

the Africa/Middle East area has gained 8,979 employees,

or an additional 63%.

7%

7%

9%

11%

32%

34%

47 Veolia Environnement — Managing social performance / Managing employees to refl ect local needs

The nature of the company’s businesses requires

local management of personnel. The structure

of the company’s workforce therefore refl ects

the labor markets in which we operate.

Of the company’s total workforce, 63% are manual workers

and 80% are men. Depending on the level of an activity’s

development and the structure of the local labor market,

these ratios are subject to considerable variations. In Lebanon,

for example, 15 of the 29 employees are managers, and women

occupy 40% of the positions. In Brazil, 76% of the 6,531

employees are manual workers and women account for 37%

of the workforce for cultural reasons specifi c to this country.

Nonetheless, these local situations aside, the company’s

commitment to diversity is very active and the percentage

of women in the workforce at Veolia Environnement is tending

to increase (see p. 51).

The distribution of employees by age bracket refl ects the

demographics of the countries where Veolia Environnement

operates. The average age in the company is 41.8 years. It is

higher in Europe (42.5 years) and the United States (44 years)

than in Africa (39 years) and Asia (39.7 years). The distribution

of employees by age bracket also corresponds to the structure

of the labor market. In France, in the company as a whole,

employees aged over 50 account for 24% of the workforce.

This fi gure rises to 41% in Sweden and 49% in the Netherlands.

The Nordic countries are pioneers in employment management,

especially for the older worker cohort.

63%16%

9%

12%

Manual workers /

Operatives: 197,573Supervisory /

Technical: 51,624Offi ce workers: 38,753Managers: 29,084

Breakdown of employees by socio-professional category

Age pyramid (average age 41.8 years)

Percentage of female employees by socio-professional category

Over 60

56-60

51-55

46-50

41-45

36-40

31-35

26-30

20-25

Under 20

2.5%

6.9%

10.6%

14.4%

16.0%

15.0%

14.0%

12.8%

6.8%

1.0%

4.5%

9.5%

13.3%

15.0%

14.5%

13.7%

12.0%

10.4%

6.0%

1.1%

Women (average age 40.3 years)Men (average age 42.2 years)

2

Managing employees to refl ect local needs

Managers Supervisory / Offi ce Manual Technical workers workers / Operatives

Men Women

20%

59%

12%23%


Whatever the characteristics of the labor market where

we operate, Veolia Environnement subsidiaries are committed

to promoting stable employment: 93% of employees have

an unlimited-term contract.

Given the continuous growth in our businesses and employee

turnover, Veolia Environnement has to continually hire. In 2010,

the employee turnover rose slightly to 13.3%, but this fi gure

is compared with 2009, an exceptional year because of the

economic crisis. Overall, the trend is downwards when viewed

over fi ve years.

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

United States (202 employees) and in Norway (63 employees);

Veolia Water in Armenia (60 employees); and Veolia Energy –

Dalkia in Romania (43 employees). This type of departure involves

consultation managed locally refl ecting the relevant entity’s

legal and employment situation.

Employee turnover and business growth led Veolia Environnement

to hire 57,393 employees, of whom 35,748 directly under

an unlimited-term contract. 4% of these external hires

were managers. Additionally, 26% of the hires under fi xed-term

contracts were transformed into unlimited-term contracts

in the year.

In mainland France, there were 14,841 external hires,

of whom almost 7% were managers.

Breakdown by type of contract

Unlimited-term contract

93%

Fixed-term contract

7%

Change in employee turnover

13.3%12.6%14.8%

16.3%14.9%

2006 2007 2008 2009 2010

Hires and departures 2010

* Excluding fi xed-term contracts that evolved into unlimited-term contracts (5,803).

** Including fi xed-term contract departures due to unlimited-term hires (5,803).

Hires under unlimited-term

contracts *

Gain of new contracts

35,748

13,964

Hires under fi xed-term

contracts

21,645

Voluntary departures16,598

Contract terminations by mutual consent2,028

Departures for other reasons

3,385

Contract losses

5,942

13,327

Redundancies10,408

Retirements

End of fi xed-term contracts **15,225


0.3% 3.6% 7.6% 3.9% 3.9% 4.4%6.7%6.6% 8.8%

165.7 162.6

109.9 107.7

57.4

5.9%

North America Africa/Middle East South America Asia-Pacifi c Europe

Fixed-term contracts, temporary employment and overtime

Percentage of fi xed-term contracts

Percentage of temporary employees

Number of hours overtime per employee in 2010

A Veolia Environnement employee works an average of 1,613 hours

a year (excluding overtime). To meet additional business

or to replace an employee, fi xed-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,

the preference is to hire additional employees on fi xed-term

contracts.

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 fi gure varies by a factor of one to three between

Europe and the Africa/Middle East and North America areas.

The use of temporary employees rose marginally from 4.1% to 4.4%.

50 Veolia Environnement — Managing social performance / Four HR priorities underpinning Corporate Social Responsibility

3 Four HR priorities underpinning Corporate Social Responsibility

Structuring labor-management dialogue worldwideLabor-management dialogue is a key component of the

company’s human resources policy, and is structured at several

levels in the organization:

at the subsidiary or entity level, which remains the most ■

natural forum for negotiations. It is at this level that many

issues impacting on employees’ day-to-day activity are

addressed and discussed with the objective of refl ecting as

closely as possible the entity’s economic and employment

conditions (working hours, leave, training, salaries, etc.);

at the country level, which includes the joint information ■

and negotiation bodies addressing all national issues;

at the transnational level in Europe through the European ■

Works Council, which represents almost two-thirds of the

company’s workforce.

To consolidate the basis for the company’s commitment and its

labor policy, a new collective bargaining agreement specifi cally

covering the quality of labor relations was signed in February

2010 by the general management and all unions in France

(representing around one-third of the company’s employees).

Its implementation initially involved the allocation of resources

to help negotiation, and also the creation of a partnership with

the Institut d’études politiques in Paris (France) and the

“Dialogues” association. The aim of this partnership is to

strengthen the management of union careers through training

courses planned throughout 2011.

Additionally, a new internal assessment campaign of the quality

of labor-management dialogue was carried out in December

2010. It revealed overall satisfaction in the 21 countries covered

by the European Works Council, and reiterated the areas

for improvement to be explored in 2011, in particular in Poland

and Portugal.

Worldwide, 95% of the company’s employees are covered

by a worker protection mechanism. This means that in these

countries at least one agreement was signed and/or an employee

representative nominated in 2010. The number of agreements

signed increased 4.7% between 2009 and 2010, and the number

of employee representatives also increased 1.7%.

With regard to the countries less well covered by worker

protection systems, the company contracted Vigeo in 2008 to

perform audits in Niger and Egypt to gain a better understanding

of the cultural context, and in particular to identify the hurdles

to overcome in implementing labor-management dialogue.

Type of collective bargaining agreements signed in 2010In 2010, the Human Resources Department

defi ned a three-year strategic plan based

on four priorities.

3.1 Guarantee social equity

Pay

Other

Labor-management

dialogue

Health and safety and

working conditions

11%

13%

20%

56%

2,143 collective bargaining

agreements

95% of employees covered

by a worker protection mechanism

15,822 employee

representatives


Priority employees under the “Diversity” approach as a percentage of the total workforce (at December 31)

>50 years Women Female managers Disabled employees*

25.8%25.1%24.2%

20.0%19.9%21.4%23.0%22.6%22.1%

1.7%1.6% 1.6%

2008 2009 2010

Promote diversity and combat discriminationThe “Diversity Label” awarded in July 2010 to 132 entities

in France is testimony to Veolia Environnement’s commitment

to combating discrimination and promoting equal opportunity.

After a comprehensive study launched in 2007, the “Diversity

& Equal Opportunity” action plan defi ned three levers for action

and fi ve categories of employees for which actions needed

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

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

of managers in 2010.

For more details, consult the “Diversity is our Wealth” brochure

and the “Diversity” video on the company’s internal website.

The main outcomes from this “2008-2011 Diversity & Equal

Opportunity” plan include:

the adoption and gradual international rollout of a common ■

recruitment portal, which will ensure compliance with

the recruitment process and non-discriminatory management

of job mobility;

the use in France of a tool to create awareness of and assess ■

stereotypes and prejudiced behavior, in partnership

with the Discrimination Observatory;

the creation and management in France of a unit to hear and ■

process discrimination complaints, as well as provide “diversity

referee” training for this system. It complements the action

of the Ethics Committee, which remains the independent

reference body for all questions regarding compliance

with ethics and human rights in the company.

These systems provide employees with a gateway to expressing

any discomfort, in the event of discrimination, harassment

or any other ethical problem that may arise in the workplace.

Other actions:

training for recruiters, the diversity network, trade union ■

representatives, employee representation entities,

and managers in the conceptual and legal framework

of discrimination, as well as how to manage this risk;

the inclusion of a chapter on union careers in the agreement ■

on labor-management dialogue signed in February 2010

in France;

cross-division management of seven disabled employee ■

projects dealing with access to premises, workstation

arrangements to promote job retention of disabled employees,

and the development of subcontracting to the protected

employment sector;

the signing in France of an agreement on older workers ■

(aged over 50).

* 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 defi nition

of Agefiph (a French non-profi t organization that specializes in providing assistance in the employment of disabled people).


Gap between the average pay of men and women employees

Gap between the average pay of men and women employees

3.1%19.2%

38.8%

–5.8%France

Europe (excluding France)

Asia-Pacifi c

South America

North America

Africa/Middle East

– 6.2%–13.0%

–14.3%–16.2%

–20.3%

– 39.5%– 39.9%

– 29.7%– 30.7%

– 26.3%

– 18.4%– 18.1%

– 22.5%

– 43.0%

– 17.3%

– 13.9% – 13.4%

2008 2009 2010

2010 2009 2008

Toward reducing the pay gap between men and womenPay policy rules are set locally as a function of the labor market

and local situation.

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

socio-professional category or age does not explain these

diff erences. 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.

Promote employee share-ownershipSince 2002, Veolia Environnement has off ered its employees

the possibility of investing in various instruments under the

Employee Stock Purchase Plan. Initially reserved for employees

in France, this option has gradually been extended to other

countries. In 2010, 1,692,862 new shares, representing

0.34% of the company’s share capital, were off ered to

185,000 employees in 24 countries.

Today, there are around 56,500 employees who own shares

in Veolia Environnement; they hold 1.91% of the share capital.


3.2 Boost solidarity

Job mobility and the employment ladderVeolia Environnement has for many years promoted internal

transfers for all categories of employees, with the aim of enriching

their careers throughout their professional life.

To encourage this mobility, the “Veolia pour tous” (Veolia for

everyone) program was introduced in France. It supports

employees with their mobility project, in particular by providing

them with mobility correspondents and online tools enabling

them to apply for positions within the company.

In 2010, there were 16,758 internal job transfers within

the company, an increase of 3.8% on 2009. As a result, 9.8%

of managers and 4.8% of non-managers took up the possibility

of job transfers in 2010.

Job mobility in 2010

Even so, job transfers that result in changing subsidiaries within

Veolia Environnement remain limited as they accounted for only

9.8% of all movements. Transfers between divisions, in particular,

accounted for only 1.6% of the total.

The Human Resources and Skills Planning agreement signed

in France on February 3, 2011 (known as “GPEC” from its name in

French) supplements the 2004 agreement on “skills development

and professional training”. This new agreement aims to make

recruitment and skills requirements clearer in each of the

company’s businesses and to encourage job transfers between

subsidiaries.

Alongside job transfers, 10,968 promotions were recorded

in 2010 within Veolia Environnement subsidiaries, covering 3.5%

of the workforce present at December 31, 2009.

Within a subsidiary

Between subsidiaries

within the same division

Between divisions

1.6%8.2%

90.2%

Support for the most vulnerableIn 2009, an Active Solidarity Plan was implemented in consultation

with the French Works Council to support the most vulnerable

employees in a diffi cult economic environment.

“Allô Solidarité”, an organization that employees can contact to

talk about their problems and to obtain support, was implemented

with the backing of an external non-profi t. The system’s pilot

phase initially concerned the Greater Paris area, which has more

than 30,000 employees. A card with the freephone call number

and basic explanations was included with pay slips. After the fi rst

year’s operation, more than 600 cases had been handled, mainly

concerning housing and/or fi nancial issues; of these, 250 cases

were considered urgent. Given these initial results, “Allô Solidarité”

was extended at the end of 2010 to three French regions with the

most pressing housing issues: southeastern France, Rhône-Alpes

and North & Normandy.


3.3 Developing professional skills

Improving employees’ training qualifi cations

Professional training and skills development for all employees are

also a priority for Veolia Environnement. Training courses are

provided throughout the employee’s career, with targets to maintain

a level of skills in accordance with the company’s activities, improve

people’s employability and provide fulfi lling 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

participants in training courses, 23% are women (whereas women

represent 20% of the total workforce), and 89% are non-managers.

Veolia Environnement has adopted an ambitious training policy

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,

covering two-thirds of the company’s employees (see map

on page 44). These centers develop and deliver training that

corresponds to the businesses’ needs. There are 95 full-time

trainers and 893 employees are assigned from around the

company to deliver courses, as they are best placed for passing

on their professional skills. Additionally, the company has adopted

the model of a “diploma-conferring company” and off ers a range

of certifi cates and diplomas in its four business areas, at all levels

of training. In France, there are eight vocational certifi cates, three

secondary vocational diplomas, two undergraduate degrees and

one master’s degree; four additional certifi cates are being prepared

by the Campus network.

Average number of training courses per employee

2.2 2.3

1.8

2.4

Managers Non- Managers Non-

managers managers

Total number of training hours

6,526,1005,687,612

6,060,027

27.8% 28.8% 29.6%

2008 2009 2010

1.8%1.4% 1.3%

1.0%1.3%

2.4% 2.4%

1.8% 2.0%1.6% 1.7%

3.2% 3.1% 3.2%

1.8%1.4%

1.9%1.5%

Africa/Middle East North America South America Asia-Pacifi c Europe France

(excluding France)

Percentage of payroll devoted to training

2008 2009 2010

Percentage of training hours devoted to safety

FemaleMale


Hire through work-study programsVeolia Environnement has asserted its commitment to providing

young people with access to employment and wants to continue

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

the number of people on internships was up 7%, providing

opportunities for young graduates to gain experience.

There are also 108 employees on a VIE (Volunteer for

International Experience) contract providing a breeding ground

for young managers destined to work abroad.

Change in the number of work-study contracts and internships

5,096 4,925 4,652

3,337 3,505 3,749

2008 2009 2010

Work-study Internships


3.4 Strengthen health and safety

In 2008, the company sought to boost its health

and safety action plans. A company Health

and Safety Department was created, and seven

priority action areas were defi ned with a view

to progressing toward “zero accidents”. In France,

a Workplace Risk Prevention, Health and Safety

agreement was signed by management and

labor in December 2008. Between 2008 and

2010, the number of agreements signed

regarding occupational health and safety issues

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,

which is still being rolled out across the company. More than

two-thirds of operations were using this system at the end

of 2010;

■ communication of safety results. In addition to the annual

publication of workplace accident indicators, two reports

are presented each year to management and labor under

the Workplace Risk Prevention, Health and Safety agreement;

management of the health and safety ■ networks. Experience

feedback emphasizes the need to mobilize the entire

managerial chain. In this respect, in May 2010, the Chief

Executive Offi cer of Veolia Environnement reiterated the

essential need for the involvement of all managers, employees,

and labor-management bodies. Furthermore,

Management

Com

mu

nica

tion

s

Info

rma

tio

n

fee

db

ack

Networks

Training

Mo

nito

ring

Stan

dard

s

he set the company the priority target of a 10% annual reduction

in the frequency of workplace accidents. To pass this message

on to its managers, Veolia Energy – Dalkia, for example, arranged

a videoconference with 26 countries during which its chairman

presented a review of the previous year and underlined the

targets. Similarly, safety seminars were held by Veolia Water

in the various regions around the world. Lastly, at a more

grassroots level, 3,149 bodies dedicated to health and safety

issues were identifi ed in 2010 (up 2.6% compared with 2009),

including in countries where these legal obligations do not

exist, such as the initiative taken by Veolia Environmental

Services in Switzerland;

training ■ of employees by providing specifi c health and safety

courses. These courses covered almost two-thirds of

the workforce in 2010, with 192,144 employees trained for

a total of 1,793,617 hours dedicated to safety, or nearly 30%

of the total number of training hours;

establishment and dissemination of health and safety ■

standards. To ensure the compliance of practices with these

standards, several hundred audits are performed each year

by the network of health and safety offi cers. These standards

may have specifi c versions for each division. Veolia Transport

has, for example, developed its own standard in France and

has begun an exhaustive audit of its sites, which will take until

2013 to complete;

3,149 bodies dedicated to studying

health and safety issues

230 collective agreements regarding

health, safety and working conditions

signed in 2010


safety ■ management by drawing up and deploying road maps;

monitoring ■ of health needs and risks. Risk prevention implies

adopting an identifi cation and assessment approach very early

in the process. The risks linked to the use of chemical products,

for example, are the subject of particular attention as part

of the European REACH regulations. In 2010, Veolia

Environnement launched a study on inaptitude in partnership

with ANACT (French agency for the improvement of working

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.

All these actions have led to a signifi cant 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.

The workplace accident severity rate also fell in all divisions

except transportation. Overall, the severity rate for the company

remained unchanged at 0.72.

Change in the workplace accident severity rate

Change in the workplace accident frequency rate

12.65

17.71

29.16

21.92

12.3013.94

25.22

18.88

23.36

11.2313.10

22.5925.05

18.0920.84

Veolia Environnement Veolia Water Veolia Energy – Dalkia Veolia Environmental Services Veolia Transport

08 09 10 08 09 10 08 09 10 08 09 10 08 09 10

0.44 0.48

1.00 0.98

0.48 0.45

0.83

1.09

0.72

0.43 0.43

0.80

1.21

0.720.75

Veolia Environnement Veolia Water Veolia Energy – Dalkia Veolia Environmental Services Veolia Transport

08 09 10 08 09 10 08 09 10 08 09 10 08 09 10

58

PURCHASINGRESPONSIBLEMANAGING

59 Veolia Environnement — Managing responsible purchasing / Sustainable purchasing policy

In 2010, the Purchasing Department launched an international

consultation on the perception of purchasing within the

company. Over 300 suppliers and close to 250 purchasing officers

from around the world were asked to express their opinions

using an online questionnaire. After one month, the results were

analyzed anonymously and the fi ndings used to defi ne priorities

for action, such as increasing the added value of purchases,

in particular by an emphasis on sustainable purchasing.

SURVEY ON THE PERCEPTION

OF PURCHASING

Purchasing expresses Veolia Environnement’s social and

environmental commitments through its processes and approach

to suppliers. The sustainable purchasing policy deployed in

the company helps to improve its economic performance,

anticipate and prevent risks, and build long-term relationships

with suppliers. It is supported by the following principles:

Purchasing offi cers’ commitment to sustainable developmentPurchasing offi cers are given responsibilities toward the

environmental and social implications of the company’s activities

so that those considerations enter into the offi cers’ management

of their specifi c purchasing areas. Thus, CSR issues are covered

in Veolia Environnement’s purchasing guidelines, actions to raise

awareness take place regularly and training modules are off ered.

Development of responsible purchasing actionsPurchasing offi cers’ involvement in sustainable development

issues motivates them to establish responsible purchasing

practices. This means that they are more likely to take

environmental certifi cation, eco-design or total cost of ownership

(TCO) into account in managing their purchases. Similarly,

the purchasing officers also promote responsible practices in

contract users, for example by encouraging better consumption

habits, or by rewarding paperless orders or fewer deliveries.

Consideration of suppliers’ CSR commitment and performancePurchasing officers make sure that suppliers share the company’s

position on CSR and that the associated risks are managed

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.

1

Sustainable purchasing policy

60 Veolia Environnement — Managing responsible purchasing / Incorporate sustainable development in the purchasing process

2 Incorporate sustainable development in the purchasing process

COMMITMENT OF PURCHASING OFFICERS

Purchasing CharterPurchasing Code of ConductTargeted trainingAwareness raisingCommit purchasing officers

to the priorities in sustainable

development and ethical

conduct rules

SUPPLIER QUALIFICATION

Suppliers CharterQuestionnaire sent to suppliers during a consultationEvaluate whether

the suppliers’ practices

are consistent with

the company’s sustainable

development commitments

CONTRACTS

“Sustainable development” clause Commit suppliers to practices

consistent with the company’s

sustainable development

commitments

CONTRACT MANAGEMENT

Evaluation of suppliersAudit of suppliersMeasure the suppliers’ CSR

performance, evaluate

their application of

the sustainable development

commitments and identify

areas for improvement

CONSULTATION

For long-term cost-containment and to optimize resources

consumption in running its equipment, the company studied

the total cost of ownership (TCO) for chassis for trucks

weighing over 12 metric tons. The total cost of this type of

equipment over eight years, including fuel, any additives, and

preventive and corrective maintenance can represent up to four

times the initial investment for the chassis alone.

Our experience over the past few years makes it clear that

this approach to sustainable purchasing, arrived at after

consultation with the operators and maintenance personnel,

is eff ective in reducing, managing and optimizing costs.

The TCO approach is considered a source of value creation

and resource savings, and will be extended to include chassis

design and dismantling.

Business travel is a real issue for the company, with its operations

in 77 diff erent countries. For several reasons, including

the environmental benefi t of reducing transportation-related

CO2 emissions, a policy for environmental, social and economic

optimization of travel was rolled out for our employees in France.

Through a dedicated portal linked to internal management tools,

the reservation process is optimized to off er 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

and electronic ticketing round out the approach to overall

optimization of the policy on business travel.

Furthermore, by tracking CO2 emissions and sensitizing all

stakeholders to the impacts of their travel, the policy ensures

that everyone is involved in more-responsible mobility.

THINKING IN TOTAL-COST TERMS

OPTIMIZING BUSINESS TRAVEL

Examples of responsible purchasing practices

61 Veolia Environnement — Managing responsible purchasing / Sustainable development training and awareness-raising for purchasing offi cers

Number of corporate actions designed to raise buyers’ sustainable development awareness in 2010

Percentage of buyers trained in sustainable development in the past three years(1)

3 Sustainable development training and awareness-raising for purchasing offi cers

Purchasing officers are in the front line for implementing

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.

In addition, awareness-raising actions take place regularly on

diff erent media. This allows us to communicate on the policy’s

latest results and to create a framework for discussion of CSR

issues. This makes it easier to incorporate them in day-to-day

purchasing processes and practices.

A total 17% of the purchasing offi cers working for the company

on December 31, 2010 had received training during the preceding

three years in sustainable development issues and their integration

to the purchasing process. The training included the specifi c

“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

activities, Veolia Water in France dispensed training during

the on-site supplier audits, and 31% of its purchasing officers

received sustainable development training in the modules.

Regular communication about the latest news in sustainable

purchasing and ongoing sustainable purchasing projects in

the company keep the purchasing offi cers informed and raise

their awareness about the importance of taking CSR issues

into account in their work.

36%Veolia Water

25%Veolia Energy –

Dalkia

18%Veolia

Corporate

14%Veolia

Transport

8%Veolia

Environmental

Services

17%company purchasing

officers, broken down

into the following

entities:

Jan. Feb. March April May June July Aug. Sept. Oct. Nov. Dec.

2

0

3

5

3

2

4

2

4

1

3

5

Monthly average: 2.88

Total of 34 company-wide actions in 2010

(1) See Details of methodology.

62 Veolia Environnement — Managing responsible purchasing / Commit our suppliers to sustainable development

4 Commit our suppliers to sustainable development

Percentage of contracts integrating

sustainable development requirements(1)

13%

32% 33%

15%

Veolia Veolia Veolia Veolia

Water* Energy – Environmental Transport

Dalkia Services

Veolia Environnement’s sustainable development commitments

are contained in the company’s purchasing policy and are

gradually being included in a dedicated clause in the contracts

signed with suppliers.

The company has introduced the clause in order to ensure

compliance and in preparation for regulatory changes in certain

markets, as well as to formalize its commitments and involve

suppliers in its sustainable development approach.

Updated in 2010 primarily to include the company’s new

commitments in occupational health and safety and in diversity,

the standard sustainable development clause, which covers

the environment, ethical standards and social considerations,

may be adapted to the particular issues associated with

the products or services being purchased. The clause and its

appendixes are available to purchasing officers on the company’s

purchasing intranet site.

New reporting methods were introduced in 2010. They enable

monitoring of the inclusion of sustainable development

requirements in contracts and measurement of progress in

this area.

At the end of 2010, 17% of the current contracts in the company’s

portfolio were declared by purchasing officers to contain

formalized sustainable development requirements. Some

of these contracts concern more than one company division,

which breaks down into the percentages for each division

shown in the diagram.

* 24% in contracts applicable to Veolia Water in France for its water and wastewater

activities.


17%of company

contracts(1),

representing for

each division:

63 Veolia Environnement — Managing responsible purchasing / Evaluate our suppliers’ CSR commitment and performance

5 Evaluate our suppliers’ CSR commitment and performance

A system for evaluating our suppliers’ CSR performance

was introduced in 2010. It is managed by an independent

international service provider and is based on 21 criteria,

divided into environmental, social and ethical aspects,

as well as supplier relations. The results of the evaluations

form the basis for targeted improvement actions: action plans

or on-site audits are set up.

Besides this system, some divisions have for several years

been carrying out on-site audits of their strategic suppliers

using methodologies appropriate to their issues.

In 2010, pilot CSR evaluations were carried out on over

100 suppliers serving one or more divisions. This evaluation

covered preferred suppliers(1)

and consultant suppliers.

At the end of 2010, preferred suppliers represented 7% of

our suppliers under contract. As internal company suppliers,

and to serve as examples, some of Veolia Environnement’s

business units were also evaluated.

Based on their priorities, all of Veolia Environnement’s divisions

established their defi nition of strategic suppliers for their

particular activity, considering, for example, the amount spent

or risks (economic, environmental, social, etc.). Specifi c actions

can be introduced for these suppliers, for example, on-site audits

that include, as a minimum, a part relating to sustainable

development issues.

Percentage of preferred suppliers evaluated

on their CSR performance(2)

14%

2008 2009 2010

17%

47%

Percentage of strategic suppliers audited by Veolia Water

in France for its water and wastewater operating activities(2)

Percentage of strategic suppliers audited

by Veolia Environmental Services in France(2)

Percentage of suppliers audited (cumulative since 2008)

Percentage of suppliers audited (cumulative since 2008)

9%

2008 2009 2010

12%

19%

For its water and wastewater operating activities, Veolia Water

in France audited 47% of its strategic suppliers over the three

preceding years.

Veolia Environmental Services in France had audited 19%

of its strategic suppliers since 2008.

(1) Suppliers under framework agreements.


Opportunities

Risks

Highlight

best

practices

7%of preferred

suppliers

Action

plans

On-site

audit

64

REPORTINGINDICATORS

65 Veolia Environnement — Reporting indicators

1

Environmental indicators

ENVIRONMENTAL INDICATORS Unit

2008 2009 2010 2010

Veolia

Environnement

Veolia

Environnement

Veolia

Environnement

Veolia

Water

Veolia

Energy –

Dalkia

Veolia

Environmental

Services

Veolia

Transport

MANAGEMENT

EMS deployment ratio (including ISO 14001 certifi ed facilities) for relevant activities(1a)(3) % relevant revenue 77% 78% 81% 87% 94% 81% 58%

Relevant revenue covered by a certifi ed management system (ISO 9000 or 14001)(5) % 71% 72% 71% 81% 85% 75% 26%

Number of sites covered by ISO 14001 certifi cation(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)

who have been trained in eco-driving

% 61.8% 60.9% 60.5% – – – 60.5%

Percentage of priority facilities audited over the past fi ve 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 effi ciency 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 landfi ll 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% –

66 Veolia Environnement — Reporting indicators / Environmental indicators

ENVIRONMENTAL INDICATORS Unit

2008 2009 2010 2010

Veolia

Environnement

Veolia

Environnement

Veolia

Environnement

Veolia

Water

Veolia

Energy –

Dalkia

Veolia

Environmental

Services

Veolia

Transport

WATER

Water distribution network effi ciency (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 effi ciency (biological treatment plants with a treatment capacity

of over 3 metric tons of BOD5 per day —50,000 EP)(1a)

% 80.9% 81.1% 83.1% 83.1% – – –

Wastewater treatment effi ciency in terms of BOD5 (biological treatment plants with a treatment

capacity of over 3 metric tons of BOD5 per day —50,000 EP)(1a) (2)

% 90.7% 91.6% 92.8% 92.8% – – –

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).

(1b) Indicator that has been independently checked (reasonable assurance).

(2) Indicators satisfying NRE requirement.

(3) Method concerning the evaluation of internal EMS deployment was modifi ed in 2009.

(4) Scope of relevant activities now includes all Veolia Environmental Services activities.

(5) Includes Veolia Transport’s NFS service certifi cates in France.

(6) 2008 fi gures have been updated to take into account the change in calculation method in 2009.

(7) The Company’s own thermal consumption is not included because it is marginal.

(8) The 2009 values for Veolia Transport are consistent with the scope of the Eco-Effi cient Travel indicator.

(9) Emissions avoided by Veolia Transport (Eco-Effi cient Travel) are net of direct and indirect greenhouse gases for the corresponding scope.

(10) The 2009 and 2010 fi gures pro forma 2008 are 1,644 million m3 and 1,608 million m

3 respectively.

(11) The 2009 and 2010 fi gures are pro forma in regard to a 2008 base scope representing 84% of the fl eet of heavy road vehicles

(excluding electric).

(12) Calculation of the indicator does not take into account methane oxide.

(–) Indicators not available, not signifi cant or not applicable.

(14) The method for evaluating the Legionella risk prevention plan was modifi ed in 2010.

* France 2009.


2

Social indicators2008 2009 2010 2010

UnitVeolia

Environnement*

Veolia

Environnement*

Veolia

Environnement*

Veolia

Water

Veolia

Energy –

Dalkia

Veolia

Environmental

Services

Veolia

Transport France

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 fi xed-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 fi xed-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 fi xed-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 fi xed-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 staffi ng 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

68 Veolia Environnement — Reporting indicators / Social indicators

2008 2009 2010 2010

UnitVeolia

Environnement*

Veolia

Environnement*

Veolia

Environnement*

Veolia

Water

Veolia

Energy –

Dalkia

Veolia

Environmental

Services

Veolia

Transport France

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

Diff erence 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

that have a legal minimum wage

2.2 2.4 2.3 2.7 2.5 2.2 2.1 2.0

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 Offi ce, the Environmental Analysis Center, the Campus, VERI, VEIT, DES, Seureca and OFIS.

** Indicators that have been independently checked.


IND

EPEN

DEN

CE

GOVERNANCE CRITERIA SITUATION ON MARCH 30, 2011 OBSERVATIONS OF VEOLIA ENVIRONNEMENTReference codes and regulations The Company’s code of reference is

the Afep-Medef corporate governance code.

The Company believes that it is in compliance with its code of reference.

See chapter 16 of the Registration Document.

Chairman

and CEO

Separation of the functions of Chairman of the Board

of Directors and CEONo Functions reunited December 12, 2010.

Creation of a post of Vice-Chairman of the Board

of DirectorsPost created October 21, 2009 Louis Schweitzer is Vice-Chairman of the Board of Directors (senior independent director).

Simultaneous employment contract and Company offi ce NoAs Chairman and CEO, Henri Proglio ended his employment contract in 2009, in accordance with the recommendations

of the Afep-Medef code. In December 2009, Antoine Frérot, CEO, also ended his employment contract (after 19 years).

Directors among

themselves

and in relation

to management

Defi nition of the independence of directors usedDefi nition in compliance with that of the

Afep-Medef code

Existence of committees independent

of the Board of DirectorsBoard of Directors

Accounts

and Audit

Committee

Nominations

and Compensation

Committee

Research, Innovation and

Sustainable Development

Committee

According to the Afep-Medef code, the proportion of

independent directors must be at least: 50% of the members

of the Board of Directors, two-thirds of the members of the

Accounts and Audit Committee and the majority of the

members of the Nominations and Compensation Committee

11/17 4/4 3/4 2/3

Term of offi ce of a director 4 years Annual renewal of a quarter of the members of the Board of Directors.

Statutory auditors

in relation to

management

Fees of the statutory auditors (KPMG and Ernst & Young

networks) paid by the Company and its worldwide

consolidated subsidiaries:

– Audit tasks:

– Other services directly related to audit tasks:

– Other duties and services (legal, fi scal, social):

€30.1 million (86.74%)

€4.6 million (13.26%)

0.0 (0%)

Refer to chapter 9.5 of the Registration Document.

Meetings between statutory auditors and directors and

between statutory auditors and operational management

in the absence of senior management

Yes

Maximum term and rotation of appointment

of external auditors

Rotation of external auditors every fi ve years

(auditor engagement partner of statutory auditor)

Renewal of term of statutory auditors every six fi scal years in compliance with French law and rotation of the auditor

engagement partner every fi ve years in compliance with US law.

ROLE

IN D

ECIS

ION

-MAK

ING

Directors

Payment of part of attendance fees linked to participation

in meetings of the Board of DirectorsYes

Application of fees withheld in relation to attendance.

Refer to chapter 15.1.2 of the Registration Document.

Number of meetings and average participation ratio

at meetings of the Board of Directors and committees:Board of Directors

Accounts

and Audit

Committee

Nominations

and Compensation

Committee

Research, Innovation and

Sustainable Development

Committee

• Number of meetings 11 7 6 6

• Participation ratio 83.6% 100% 100% 100%

Regular evaluation of the operation of the Board of Directors

and its committeesAnnual evaluation Informal evaluation in 2009 via a questionnaire sent out to directors.

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).

Balanced gender representation on the Board of Directors.

French Law of January 27, 2011 on balanced gender

representation on company Boards.

One woman sits on the Board of Directors

representing 5.9% of Directors

In accordance with this law and the Afep-Medef code revised in April 2010, the Nominations and

Compensation Committee will make recommendations to the Board regarding the nomination

of a greater number of women for Board membership at future annual shareholders’ meetings.

(Refer to chapter 16.1.2 of the Registration Document.)

3

Good governance standards

70 Veolia Environnement — Reporting indicators / Good governance standards

FIN

ANCI

AL IN

FORM

ATIO

N

Remuneration paid to the Company representatives (Henri Proglio, Chairman

of the Board of Directors up to December 12, 2010)

€1,334,415

(including 2009 variable remuneration paid in 2010)Refer to chapter 15.1 of the Registration Document.

Remuneration paid to the Company representatives in 2010

(Antoine Frérot, CEO)*

€1,188,743

(of which 28% in respect of 2009 variable remuneration prior to being

appointed CEO of Veolia Environnement)


Remuneration paid to the senior management in 2010 (Executive Committee)

€5,021,651

(of which 36% in respect of 2009 variable remuneration)

(Executive Committee as of December 31, 2010)


Criteria for determining the 2010 and 2011 variable remuneration

or subscription of the Chairman and CEO

70% quantitative share on criteria determined by the Board of Directors

30% qualitative share determined by the Board of Directors

2010 and 2011 quantitative criteria.

Refer to chapters 15.1 and 15.2 of the Registration Document.

Number of share purchase options awarded to the Chairman and CEO

and to the senior managers (Executive Committee) in 2010

285,000 share purchase options awarded to Executive Committee

members (excluding CEO)Refer to chapter 17.3.1 of the Registration Document.

Number of bonus shares allotted to the Chairman and CEO

and senior managers (Executive Committee) in 20100

The Company’s current policy does not provide for the allotment of bonus shares

to the Chairman and CEO or senior managers (Executive Committee).

Termination payments (“golden parachutes”) provided for the Chairman

and CEO and senior managers (Executive Committee)

The principle of a termination payment was approved by the Board of

Directors on December 17, 2009, subject to the approval of the May 7,

2010 Annual Shareholders’ Meeting, in application of the French

Commercial Code (TEPA law).

The conditions for fi xing and disbursing the termination payment that will be granted

to Antoine Frérot if his functions as CEO are terminated are in compliance with the

French Commercial Code (ascertainment of performance condition). The payment

will be calculated on the basis of the remuneration received by Mr. Frérot during the

base period (fi xed amount of the remuneration received during the previous year, to

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 (fi xed and variable).

* Amounts paid during the 2010 fi scal year including fi xed 2010 remuneration, variable 2009 remuneration paid in 2010, benefi ts in kind and attendance fees paid during the year by the Company and its subsidiaries.

ROLE

IN D

ECIS

ION

-MAK

ING

(CO

NTI

NU

ED) GOVERNANCE CRITERIA SITUATION ON MARCH 30, 2011 OBSERVATIONS OF VEOLIA ENVIRONNEMENT

Reference codes and regulations The Company’s code of reference is

the Afep-Medef corporate governance code.

The Company believes that it is in compliance with its code of reference.

See chapter 16 of the Registration Document.

Shareholders

Participation ratio (quorum) at the last Shareholders’ Meeting

(2010)60.10%

Minimum percentage of share capital to submit a resolution

to the Annual Shareholders’ MeetingOne or more shareholders representing at least 0.5% of the share capital In compliance with Article R. 225-71 of the French Commercial Code.

Means of obtaining information and voting made available

to shareholders

On March 31, 2011 shareholders were provided with the Registration

Document containing the draft resolutions for the Annual Shareholders’

Meeting on May 17, 2011.

Information via the www.fi nance.veolia.com website,

with direct retransmission from the meeting.

Criteria for adoption of a resolution (minimum percentage

of shares present or represented)

50% for ordinary business resolutions

66.7% for extraordinary business resolutionsIn compliance with the French Commercial Code.

71

OPINIONSINDEPENDENT

72 Veolia Environnement — Independent opinions

1

Extra-fi nancial rating by BMJ Ratings

BMJ Ratings was mandated by Veolia

Environnement to carry out a strategic

assessment of all aspects of Corporate Social

Responsibility (CSR) between December 2010

and April 2011, and to perform the Company’s

extra-fi nancial rating.

MethodologySince 2004, BMJ Ratings has carried out an extra-fi nancial rating

of Veolia Environnement. The agency’s assessment covers the entire

scope of CSR fi elds: environment, human resources, marketing and

sales, purchasing and subcontracting, relationships with civil society,

and corporate governance.

The assessment provided by BMJ Ratings is the result of an analysis

based on the consultation of internal documents provided by Veolia

Environnement, completed by interviews with the Company’s

management, audits within business units, and stakeholder surveys.

The data analyzed were prepared under the responsibility of

Veolia Environnement’s Sustainable Development Department.

Twenty-two interviews were conducted at the headquarters

of the Company and its Divisions; they covered the main functions

concerned by the establishment and implementation

of the Company’s CSR strategy.

Audits were organized within business units in all four

of the Divisions.

In France, audits covered all the Company’s activities in its Northwest

delegation.

Elsewhere, eight subsidiaries were assessed in the following regions:

Europe: Spain (energy distribution), Estonia (energy distribution), ■

Romania (water management), Sweden (transportation);

Africa: Morocco (water management); ■

Asia: China (waste management); ■

North America: USA (transportation); ■

Latin America: Mexico (water and waste management). ■

The extra-fi nancial rating of Veolia Environnement is based on BMJ

Ratings’ registered DEEPP Model® (Drivers, Engagement, Exposure,

Performance, Plan for Action). This strategic and managerial

evaluation model takes into account companies’ operational

activities. Veolia Environnement’s performance is analyzed in the

light of its specifi c issues—in terms of risks and opportunities—

in all of its fi elds of responsibility. Each issue is analyzed by

assessing stakeholders’ expectations and the Company’s leeway

for addressing these.

IndependenceBMJ Ratings is an agency specialized in solicited extra-fi nancial

rating, working for public and private organizations. BMJ Ratings

is completely independent and none of its clients own shares

in the company. None of its employees are subject to confl icts

of interest due to their activities.

CSR assessment of Veolia EnvironnementThe assessment of Veolia Environnement—carried out in 2011 on

the basis of information relating to 2010—reveals a high level of results,

superior to sector standards. The Company’s performance remains

consistent overall in all six of the CSR fi elds assessed, although

the agency noticed a decrease in the fi eld of corporate governance.

Conclusions

→ Environment

Veolia Environnement continued with the operational

implementation of Environmental Management Systems in 2010.

The agency confi rms its positive assessment concerning

the integration of energy/carbon issues within the four divisions,

and points out Dalkia’s engagement in regard to the structuring

of the biomass industry. The agency also notes that the Company

increased its eff orts in 2010 to defi ne a “water footprint” standard.

However, there remain some important progress margins concerning

the integration of biodiversity within Operations and the

implementation of comprehensive off ers for urban eco-development.

→ Human resources

The agency points out the formalization of a strong corporate policy

on diversity and combating discrimination. It was able to assess

the eff ective rollout of this policy in France, implemented by

the Divisions; however, integration of the policy into operations in

other countries remains a challenge. In 2010 Veolia Environnement

maintained its high level of commitments to training and

the development of its human capital, which is an essential asset

for an industrial services company. However, the agency underlines

the necessity for the Company to engage in a cross-division approach

to knowledge management (capitalizing on operational expertise,

setting up of means for exchanging knowledge, participative

innovation, etc.) Last, in a deteriorated economic context that

is a source of pressure for Operations, the agency notes that

the Company stepped up its eff orts to improve accident prevention

and safety measures in its Business Units, but recommends that

this criterion be taken into account as a systematic item when

setting managers’ bonuses.

73 Veolia Environnement — Independent opinions / Extra-fi nancial rating by BMJ Ratings

→ Marketing and sales

The Veolia brand is a solid asset in industrial and international

markets, where the Company’s ability to meet complex

comprehensive demands represents a major competitive advantage.

However, the agency notes that the Company faced challenges

in 2010 regarding the rollout of eco-innovative off ers. A key issue

for Veolia Environnement is to increase business development

in a way that mitigates its overall exposure to “volume eff ects.”

Last, the agency calls for better integration of country-risk

assessment in acquisition and development processes.

→ Purchasing and subcontracting

The Company continued with the implementation of its sustainable

purchasing policy. Extra-fi nancial criteria are increasingly integrated

into cross-division purchasing, and the agency notes greater

awareness of CSR issues on behalf of the purchasing offi cer network.

In addition, the Company made progress in the extra-fi nancial

evaluation of its key suppliers. The main areas for improvement

are the implementation of training in sustainable purchasing and

internal awareness-raising on business ethics in supplier relations.

→ Relationships with civil society

Veolia Environnement maintains a high level of contribution to

the fi elds of social integration through employment and engagement

with communities. The Company also stands out for its proactive

involvement in international aid projects and corporate philanthropy,

especially in regard to transfer of expertise. In addition, the Company

is capitalizing on social business projects launched by its Water

Division to organize a “societal innovation” approach that aims

to develop access to the basic services provided by the Company

for populations in deprived areas. However, the agency underlines

the Company’s progress margins—both at the corporate and

Business Unit levels—in terms of stakeholder mapping.

Insuffi ciencies have also been noticed in regard to the Company’s

communication on and management of reputation risks.

→ Corporate governance

Veolia Environnement reviewed and clarifi ed its governance model

in 2010. The agency notes the reunifi cation of the formerly distinct

functions of Chairman and Chief Executive Offi cer, and deplores

the lack of reasons given by the Company regarding this decision.

In addition, independence of the Board members and diversity

among governance bodies remain weak points, even though fi ve

Board members were renewed in 2010. Last, the agency notes

that the Company is increasingly integrating extra-fi nancial issues

in risk mapping and internal audit processes.

Extra-fi nancial rating

RATING: AA++BMJ Ratings confi rms the AA rate assigned to Veolia Environnement

for 2010.

The trend is set at ‘‘++,” which expresses the agency’s positive

opinion regarding the resources put in place by the Company

in order to steer the operational implementation of its CSR strategy.

Rating by CSR fi eld

82/100 (stable)

1. Environment

2. Human resources

3. Marketing and sales

4. Purchasing and subcontracting

5. Relationships with civil society

6. Corporate governance

85/100 (+1)

81/100 (–1)

86/100 (+1)

80/100 (stable)

77/100 (–3)

The assessment of Veolia Environnement is established for

a one-year period starting April 20, 2011.

The agency’s conclusions do not take into account any

information about commitments that may have been taken by

Veolia Environnement after this date.

Paris, April 20, 2011

Pascal Bello,

CEO


2

E&Y independent opinionDivision France Europe Rest of the world

Veolia Water Centre Est, Ouest*,

Flandres-Artois-

Picardie*

Île-de-France

Centre**,

Normandie**,

Banlieue de Paris***

SORICAL (Italy),

Berliner Wasser

Betriebe, Veolia

Wasser (MIDEWA

and OEWA,

Germany),

Veolia Voda* (PVK,

SCVK and Movo,

Czech Republic),

Three Valleys**

(United Kingdom)

Pudong (China),

Veolia Water

North America*

(USA),

Shenzen SEZ*

(China),

CGE Australia

and United Water***

(Australia)

Veolia

Energy-

Dalkia

The fi ve regions

of Dalkia France

(Île-de-France,

Est, Nord,

Centre

Méditerranée and

Atlantique)

SIRAM (Italy),

Dalkia UK

(United Kingdom),

Dalkia

Czech Republic *,

Dalkia Hungary**,

Dalkia Polska

(Poland)+,

Eraküte and Tallinn+

(Estonia),

Litesko and Vilnius+

(Lithuania),

Dalkia Romania+,

Dalkia Slovakia+

Veolia Energy

North America*

(USA)

Veolia

Environmental

Services

Île-de-France

and Bartin,

Sud Ouest*,

SARPI*,

Rhin Rhône**,

Nord Normandie**,

France+

Veolia

Umweltservice

Deutschland,

VES UK*

(United Kingdom)

VES Asia* (China),

VES Solid Waste**

(United States),

Proactiva

Medioambiente+

(Mexico and

Venezuela)

Veolia

Transport

Centre Ouest

and Sud Ouest,

Est*, Nord Ouest*,

SNCM**

Veolia Transport

Germany,

Netherlands*

and Belgium*

Veolia

Transportation

(USA)

* Business Unit subject to a remote follow-up of the review performed

for the 2009 fi nancial year.

** Business Unit subject to a remote follow-up of the review performed


*** Business Unit subject to a remote follow-up of the review performed


+ Specifi c approaches (GHG cross audits, methane, regional approaches, etc.).

Statutory Auditor’s assurance report on a selection of sustainable development environmental indicators (environment and sustainable purchasing)

This is a free English translation of the original report issued in

the French language.

Further to Veolia Environnement’s request and in our capacity

as Statutory Auditor of Veolia Environnement, we have performed

a review in order to express:

limited or reasonable assurance that the Environmental Indicators ■

for the fi nancial year 2010 identifi ed by the symbols (1a) or (1b)

in the 2010 environmental performance dashboard of the 2010 CSR

performance digest (1)

(the “Environmental Indicators”) have been

prepared in accordance with the Protocol for the measurement

and reporting of environmental indicators dated December 23, 2010

(the “Environmental Criteria”), a summary of which is included in

the “Details of methodology used in environmental and purchasing

reporting” section (2)

of the 2010 CSR performance digest, completed by

the notes associated with the environmental performance dashboard.

Limited assurance that the Sustainable Purchasing Indicators for ■

the fi nancial year 2010, identifi ed by the symbol (1a) in the 2010

environmental performance dashboard of the 2010 CSR performance

digest(3)

(the “Sustainable Purchasing Indicators”), have been prepared

in accordance with the Protocol for the measurement and reporting of

purchasing indicators dated February 9, 2011 (the “Purchasing Criteria”),

a summary of which is also included in the “Details of methodology

used in environmental and purchasing reporting” section(2)

of the

2010 CSR performance digest, with the addition of the footnotes

associated with the environmental performance dashboard.

Our review was conducted in accordance with the professional

practice defi ned by IFAC’s (International Federation of Accountants)

ISAE 3000 (International Standards on Assurance Engagement).

It is Veolia Environnement‘s responsibility to establish the Criteria,

ensure their accessibility on its website (3)

and establish

the Indicators according to the Criteria. It is our responsibility to

express on the basis of our review a conclusion on the Indicators.

Nature and scope of our review→ Limited assurance on the Environmental Indicators

We conducted the following review for all the Environmental

Indicators:

we have assessed the Environmental Criteria with respect to their ■

accuracy, understandability, neutrality, completeness and relevance

with respect to the Company’s activities and the environmental

reporting practices published in 2010 using a sample of

comparable environmental services companies (water, energy,

waste management and transportation);

at the Company level and for its four divisions (water, energy ■

services, waste management and transportation), we have

interviewed those in charge of environmental reporting;

at these levels, based on a materiality and risk analysis, we have ■

verifi ed the application of the Environmental Criteria, implemented

analytical procedures and verifi ed, on a sample basis,

the calculations and consolidation of data;

we have selected a sample of more than 40 Business Units (newly ■

selected Business Units or Business Units which were reviewed the

two previous years and for which we performed a remote follow-up

review) in 13 countries in France, Europe (Germany, Poland, Czech

Republic, Hungary, United Kingdom, the Netherlands and Belgium),

the Americas (United States, Mexico, Venezuela) and Asia (China

and Australia), based on their activity, their geographical location,

their contribution to the Environmental Indicators and the anomaly

risks identifi ed beforehand;

the selected Business Units account on average for 62% of the ■

consolidated value of the Environmental Indicators at the Company

level and between 47% and 77% of the indicators or themes

considered (environmental management systems, sanitary risks,

greenhouse gases and energy, water and wastewater, waste,

transportation).

(1) Page 65 of the 2010 CSR performance digest.

(2) Page 79 of the 2010 CSR performance digest.

(3) http://www.veolia.vom/en/group/performance/environmental-performance

75 Veolia Environnement — Independent opinions / E&Y independent opinion

At this level:

– For newly selected Business Units, we have verifi ed the

appreciation and application of the Environmental Criteria,

and tested the data by means of random checks which consisted

in verifying calculations and comparing source data with

supporting documents.

– For Business Units for which a review was performed the two

previous years and followed up on this year, we have analyzed in

detail the anomaly risks, analyzed material variations of data with

respect to the previous year and verifi ed the correct application of

observations stated during the review performed the previous year.

For the Environmental Indicators identifi ed by the symbol (1a),

the review described above allows us to provide limited assurance

that the selected data are free of any signifi cant anomaly. A higher

level of assurance would have required more extensive work.

→ Reasonable assurance on the Environmental Indicators

For the Environmental Indicators identifi ed by the symbol (1b),

specifi cally EMS deployment, total energy consumption, direct CO2

emissions, and total direct and indirect emissions of greenhouse

gases, the degree of precision with which our review was conducted,

similar to the procedure described above but in greater detail,

and particularly concerning the detailed tests, allows us to provide

reasonable assurance.

→ Limited assurance on the Sustainable Purchasing Indicators

We conducted the following review, for all the Sustainable

Purchasing Indicators:

we have assessed the Sustainable Purchasing Criteria with respect ■

to their accuracy, understandability, neutrality, completeness and

relevance with respect to the Company’s activities and the

sustainable purchasing reporting practices published in 2010 using

a selected sample of 15 comparable environmental services

companies;

at the Company level and for its four divisions (water, energy ■

services, waste management and transportation), we have

interviewed those in charge of sustainable purchasing reporting;

at these levels, based on a materiality and risk analysis, we have ■

verifi ed the application of the Sustainable Purchasing Criteria,

implemented analytical procedures and verifi ed, on a sample basis,

the calculations and consolidation of data.

For the Sustainable Purchasing Indicators, the review described above

allows us to provide limited assurance that the selected data,

identifi ed by the symbol (1a), are free of any signifi cant anomaly.

A higher level of assurance would have required more extensive work.

Information about the CriteriaThe Environmental and Sustainable Purchasing Criteria call from

our part for the following remarks.

Relevance The Company remains innovative in the fi eld of the measurement ■

of sanitary risks by publishing quantitative indicators of the quality

of drinking water (water quality classes), of legionella (advancement of

the risk prevention plan) and of dioxins. However, the Company does

not report information on the treatment of leachates from landfi lls.

Indicators related to NOx and SOx emissions measure the impact ■

of waste incineration activities but do not cover the impacts

of energy production and transportation.

For 2010, the Company has improved the publication of ■

Sustainable Purchasing Indicators and added indicators related

to the contractualization and evaluation of sustainability

requirements of suppliers.

The Company could: ■

– complete its reporting by monitoring the performance of its

suppliers relative to sustainability issues, by measuring the level

of customer satisfaction and by following environmental events

(incidents or accidents);

– reinforce the environmental reporting of activities not currently

reported (engineering and works or services to industrial

activities, specifi cally in the water sector);

– extend its accounting of the environment beyond the scope of

its operational activities (demand management, water resource

management, management of subcontractors, etc.) as part of

an eco-design rationale.

Themes Average

contribution

Contribution

by indicator

Environmental

management

systems

64% 62% of revenue from relevant activities*

and 66% of priority facilities

Sanitary risks 51% 49% of the population served with drinking

water, 56% of sites involved in legionella

risk prevention plan (hot water production

plants and cooling towers of Veolia Energy),

and 47% of incinerated non-hazardous

waste

Climate

change

74%* 77% of direct CO2 emissions*, 72% of

direct and indirect emissions (electricity

and heat) of total greenhouse gases*,

73% of total energy consumption*

68% 66% direct CH4 emissions, 58% of

the overall reduction of greenhouse gas

emissions, 67% of total energy production,

and 56% of renewable energy

consumption

Water and

wastewater

58% 56% of drinking water volumes introduced

into networks, 63% of the water

distribution network length and 54%

of the installed capacity of wastewater

treatment plants

Waste 55% 47% of treated waste and 63% of

wastewater sludge

Transportation 51% 51% of the total road vehicles fl eet

* These indicators are subject to reasonable assurance.

76 Veolia Environnement — Independent opinions / E&Y independent opinion

also in total greenhouse gas emissions), as well as a mechanical

increase in the methane capture rate;

– this update was, however, not refl ected in the estimate

of the recovered portion of landfi lled waste that is used

in the calculation of the waste disposal rate.

The cross-division “carbon effi ciency ratio” evolves mainly with ■

the activity of the Company and is very complex to drive.

The numerator is composed of the overall reduction of greenhouse

gas emissions as related to the Company’s base scenarios, which

include CO2 emission reductions or avoided CO

2 emissions from

very varied sources cumulated over several years while their

relevance or coherence was not consistently evaluated.

Within the sustainable purchasing reporting, “sustainable clauses” ■

and “sustainable training” could be defi ned more precisely

and communicated more forcefully in order to reduce the risk

of diverging interpretations.

Reliability The environmental reporting reliability has been strengthened ■

by the extension of the Company’s environmental information

system to all divisions. Only a limited number of indicators are

still reported outside of this system.

Data management of the Environmental Indicators could ■

be improved by more frequent reporting of a limited set of key

indicators and by analyzing variations on a stable scope

(at the level of Business Units, contracts or facilities).

Completeness The reporting scope is described in the “Details of methodology ■

used in environmental and purchasing reporting” section of

the 2010 CSR performance digest (with the addition of

the footnotes associated with the environmental performance

dashboard), most importantly regarding the scope of

the Company’s activities worldwide.

The Company could be more specifi c with respect to the defi nition ■

of operational control, particularly in the case of joint control

(for example, the Proactiva joint venture in South America), control

of multi-division activities (for example, BS Energy or waste and

energy activities in Porto), direct Company control (multiservice

subsidiaries), subcontracted activities or fi nancial year acquisitions

and transfers.

The purchasing reporting scope has been specifi ed this year and ■

henceforth refers to purchasing offi cers, suppliers and contracts

referenced in an online tool implemented in 2010. This signifi cant

improvement ensures that the reporting will extensively cover

the Company’s worldwide activities.

Understandability and neutrality The Company assesses the deployment of its Environmental ■

Management System based on a set of criteria that helps

understand the progress of the EMS (policy, impacts, measures,

audits, etc.). The defi nition of these criteria is not yet precise enough

to ensure an unequivocal interpretation at the operational level.

The Company reports the proportion of priority facilities evaluated ■

during the previous fi ve years. In the absence of a precise

defi nition, the evaluations that are accounted for (ISO 14001

audits, environmental audits, self-evaluation, etc.) can be

heterogeneous. The various types of evaluation are not specifi ed

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 signifi cant mechanical drop in methane emissions (therefore

Conclusions ■

→ Limited assurance

Based on our review, nothing has come to our attention that causes

us to believe that the Environmental Indicators identifi ed by

the symbol (1a) and the Sustainable Purchasing Indicators identifi ed

by the symbol (1a) were not established, in all material respects,

in accordance with the Environmental and Purchasing Criteria.

→ Reasonable assurance

In our opinion, the Environmental Indicators identifi ed by the symbol

(1b) as related to EMS deployment, total energy consumption,

direct CO2 emissions, and total direct and indirect greenhouse gas

emissions were established, in all material respects, in accordance

with the Environmental Criteria.

Neuilly-sur-Seine (France), May 2, 2011

The Statutory Auditor,

ERNST&YOUNG

et Autres

Nicolas Pfeuty

Assisted by ERNST&YOUNG

Climate Change

and Sustainability Services

Éric Duvaud


3 KPMG independent opinion

Statutory Auditor’s report providing limited assurance on a selection of social indicators for the Veolia Environnement group

Period ended December 31, 2010

This is a free translation into English of the original report issued

in the French language and is provided solely for the convenience

of English-speaking readers. This report should be read

in conjunction with, and construed in accordance with, French

law and professional auditing standards applicable in France.

As requested and in our capacity as Statutory Auditor of Veolia

Environnement, we have performed a review to enable us to provide

a limited level of assurance on a selection of 2010 social indicators(1)

(“the Data”) selected by the Veolia Environnement group and

identifi ed by the ** symbol on pages 67 and 68 of the 2010 CSR

Performance Digest which is available on the Company’s website

at www.veolia.com.

The conclusions expressed below relate solely to these Data

and not to all the indicators presented.

The Data were prepared under the responsibility of the Human

Resources Department in accordance with the internal

protocol “List and Defi nition of Human Resources Indicators”

(“the Protocol”). The reporting methodology provided on page 80

of the 2010 CSR Performance Digest specifi es the data collection

or calculation methodologies used to calculate the published

performance indicators. It is our responsibility, based on the work

performed, to express a conclusion on the selected Data.

Nature and scope of the review We performed our review in accordance with the ISAE 3000 standards,

in compliance with applicable professional guidelines in France.

We planned and performed the assurance engagement described

below to provide limited assurance that the selected Data are free

of material misstatement. A higher level of assurance would have

required a more extensive review.

For the selected Data, we have:

assessed the Protocol with respect to its relevance, reliability, ■

neutrality, understandability and completeness;

interviewed the people in charge of the social reporting process ■

at the Holding company and at the four divisions(2)

of the Company.

It enabled us to assess the correct application of the Protocol

and to verify, on a test basis, the calculations and Data

consolidation. We also carried out an analytical review of the Data;

performed detailed tests on several business units ■ (3) selected on

the basis of their activities, locations and contributions

to the Company’s consolidated Data, as well as the results of the

work performed over the previous years. The selected business

units represent 18.6% of the Company’s consolidated headcount.

We verifi ed that the units had understood and applied the Protocol.

On a test basis, we verifi ed the calculations, performed consistency

controls and reconciled the Data with the supporting

documentation.

The environment and sustainability specialists of our fi rm assisted

us in the completion of our work.

Information on the procedures We have the following comments to make on the reporting process:

Detailed reporting procedures have been set out. ■

They are updated annually and sent to all the Company

contributors in fi ve languages.

All the business units in the scope use the same IT tool for reporting ■

purposes. This ensures that the collection and consolidation of the

Data is reliable, particularly due to automatic controls.

A stringent control environment is in place, in particular at division ■

level and our work at site level enabled us to observe that

the Protocol was understood and properly followed by the verifi ed

business units. However:

– The reporting process could be further improved at site level

with an increased involvement of the hierarchy regarding

the validation of the reported Data;

– The control of the correct application of the calculation

methodologies should be further strengthened at site level,

in particular regarding the “Total number of calendar days lost

through occupational accidents” performance indicator;

– The performance indicator related to the number of training hours

needs to be defi ned more precisely in the Protocol, in order to

ensure consistency of the Data calculated by the business units.

ConclusionBased on our review, we did not identify any material misstatements

which could call into question the fact that the Data mentioned

on pages 67 and 68 of the 2010 CSR Performance Digest, identifi ed

by the ** symbol, have not, in all material respects, been prepared

in accordance with the above-mentioned Protocol.

Paris-la Défense, April 26, 2011

The statutory auditor

KPMG Audit

Department of KPMG SA

Jay Nirsimloo Baudouin Griton Philippe Arnaud

Partner Partner Partner

in charge of

the Sustainability

and Climate Change

Services

(1) Total headcount at 31/12/N, Total annual headcount (full-time equivalent), Headcount

full-time equivalent (unlimited-term contracts), Hours of training, Weekly work time

(in hours), Annual amount of working days per employee, Average number of working

days per week for a full-time employee, Absenteeism in calendar days (employees

with an unlimited-term contract), Absenteeism in calendar days (fi xed-term contract),

Total number of overtime hours, Work accidents with sick leave (excluding the journey

to and from work), Work days lost due in calendar days to work accidents (excluding

the journey to and from work) (unlimited-term and fi xed-term contracts), Work accident

frequency rate, Work accident severity rate.

(2) Veolia Water, Veolia Energy – Dalkia, Veolia Environmental Services, Veolia Transport.

(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

Veolia Water Co (China), SC Apa Nova Bucuresti (Romania), Veolia Energy: Dalkia France

(France), DK Energia (Spain), Veolia Environmental Services: SARP France, OTUS France,

TAIS France and Veolia Propreté Ile-de-France (France), Veolia Environmental Services

Holdings (UK), Veolia Transport: TCAR (France), Veolia Transportation Services (US)

and Veolia Transport Sverige (Sweden).

78

DETAILS OFMETHODOLOGY

79 Veolia Environnement — Details of methodology

1 Details of methodology used in environmental and purchasing reporting

In the absence of any recognized and relevant reporting baseline for

its activities, the Company has defi ned its own reporting procedures

based on best practices and draft international standards.

Methodological proceduresThe procedures of the Company are composed of:

for its environmental indicators, a company-wide Measurement and ■

Reporting Protocol, available on the corporate website

(www.veolia.com/en/group/performance/environmental-performance/)

supplemented by specifi c instructions for each Division;

for its sustainable purchasing indicators, a Reporting Protocol ■

available on the corporate website

(www.veolia.com/en/group/performance/sustainable-purchasing).

Scope of reporting and consolidation methodThe scope of environmental reporting covers all worldwide activities

over which the Company has operational control. Activities in the

construction and operation of industrial water systems are excluded

from the scope of reporting. Some subcontracted activities may

also be included in the scope, in particular in the fi eld of waste

management (e.g., biogas conversion) or transportation.

The scope of purchasing reporting covers all of the Company’s

purchasing officers registered on the Veolia Environnement

Purchasing Information System, and covers the contracts and

approved suppliers listed on this same tool (except for specifi c cases

set out in the Protocol). The purchasing Information System lists

principally all cross-division and cross-function contracts that are

handled by joint managerial groupings (Corporate, Division, Country,

Business Units and Regions). In addition, some Business Units have

the possibility of listing their local contracts in this same tool.

Consolidation method

The environmental data within the scope described above

are fully consolidated. In general, purchasing data are also fully

consolidated, unless it is specifi cally stated that only data for

France are consolidated.

Scope variations for environmental data

Scope variations are taken into account on the date on which

they become eff ective. Acquisitions, the creation of companies

or contracts won may, however, only be taken into account after

a full year of operation. For 2010, the main changes in scope

or activity were:

Veolia Water: ■ acquisition of new contracts in Belgium, Qatar,

Oman, China, Thailand and Japan, inclusion in the reporting scope

of Monégasque des Eaux et St Martin and the sale of contracts in

France and Thailand.

Veolia Energy – Dalkia: ■ inclusion in the reporting scope of Turkey

and exclusion of Algeria, business development in France, Italy,

Czech Republic, Sweden, UK, USA and South Korea.

Veolia Transport: ■ acquisition of various contracts in China,

South Korea and Morocco, and the sale of contracts, mainly

in the UK.

Veolia Environmental Services: ■ acquisition of new business units,

mainly in the UK and France, and the sale of contracts, mainly

in France, UK and USA.

Choice of indicatorsThe indicators have been chosen in order to track:

the Company’s commitments and policy (EMS, environmental ■

audits, etc.);

performance related to the Company’s main challenges and ■

impacts;

the Company’s policy of incorporating sustainable development ■

into purchasing;

regulatory obligations (NRE law in France). ■

Consolidation and checksEnvironmental data are consolidated and checked by each Division

and by the Environment Department, based on data collected from

the business units. For certain indicators, data are calculated or

estimated directly at the divisional level.

The most relevant environmental indicators have been

independently appraised since 2001 by Ernst & Young, the

Company’s Statutory Auditor. The detailed report can be found

on pages 74-76.

Purchasing data are consolidated and checked by the Company’s

Purchasing Department, and were also checked by the Statutory

Auditor for the second year.

Limits to the methodologyThere can be limits to the environmental and purchasing

indicators due to:

the lack of harmonization between national and international ■

legislation;

the unrepresentative nature of certain measurements and ■

estimations;

changes in defi nition that may aff ect comparison of the indicators; ■

the practicalities of collection methods. ■

Taking into account these elements, we consider the accuracy

of most of our data to be within 5-10%.

80 Veolia Environnement — Details of methodology

2 Details of methodology used in social reporting

In the absence of any recognized and relevant reporting baseline for

its activities, the Company has defi ned its own reporting procedures

for social data based on best practices and draft international

standards.

Methodological proceduresThe procedures of the Company are composed of:

a protocol for the indicators reported, which is available ■

in fi ve languages and can be consulted by contacting the Veolia

Environnement Human Resources Department;

a methodology for gathering, checking, analyzing and ■

consolidating the data, based on reporting software that includes

a workfl ow process.

Scope and consolidation methodsThe scope of social reporting covers all consolidated companies

whose human resources are managed by the Company.

In the case of Proactiva (water and waste management activities

in South America), the companies owned 50-50 by Veolia

Environnement and a Spanish company partner are included

in the reporting scope.

Consolidation method

The social data within this scope are fully consolidated.

Scope variations

Scope variations are taken into account on the date on which

they become eff ective. Acquisitions, the creation of companies

or contracts won may, however, only be taken into account after

a full year of operation. For 2010, there was very little change

in the workforce (a total increase of 1.4%).

This broke down as:

Veolia Water: ■ 471 new employees, for a 0.49% increase

in the division’s workforce;

Veolia Energy – Dalkia: ■ 900 new employees, for a 1.71% increase;

Veolia Environmental Services: ■ 860 fewer employees than in 2009,

for a 1% decrease;

Veolia Transport: ■ 3,165 more employees than in 2009,

for a 4% increase.

Choice of indicatorsThe indicators have been chosen in order to track:

performance related to the Company’s main human resources ■

challenges;

eff ects of the Company’s labor practices; ■

regulatory obligations (NRE law in France). ■

Consolidation and checksAutomated checks are performed at the business unit level

by the software package used.

Social data are consolidated and checked by each Division and

by the Veolia Environnement Human Resources Department.

The most relevant social indicators set by the Company have been

subject to an independent audit by KPMG since the 2007 fi nancial

year. The report is available page 77.

Limits to the methodologyThere can be limits to the social indicators due to:

the lack of harmonization between national and international ■

legislation;

the mix of data managed and of tools in the Company’s many ■

subsidiaries;

changes in defi nition that may aff ect comparison of the indicators; ■

particularities of labor laws in some countries; ■

the practicalities of collection methods; ■

the availability of source data when the reporting process must ■

be completed.

Additional detailsIn 2010, the calculation methods for the staff turnover rate were

modifi ed:

The calculation was made by including certain departures under ■

fi xed-term contracts in the fi gures for unlimited-term contracts as

a full-time equivalent. To be more precise, departures under

fi xed-term contracts for reasons other than the end of the contract

were taken into account;

It was modifi ed in order to ensure that only departures under ■

unlimited-term contracts were counted in the fi gures for the

workforce under unlimited-term contracts as a full-time equivalent;

The fi gures for the previous years were adjusted in accordance with ■

the new calculation methods in order to provide comparable data.

As concerns the accident severity rate, the defi nition chosen by

the Company is the number of days lost to workplace accidents,

including days lost during the year under review due to accidents

that occurred in previous years. Diff erences in the application

of this method can occur in some business units.

Veolia Environnement

Sustainable Development Department

[email protected]

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

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