)Sustainable Development Department

How a large company tackles climate change issue

Geneviève Ferone, Senior VP Sustainable DevelopmentVeolia Environnement

TBLI, Tokyo, 15th September 2011

Investor Engagement on Climate Change

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Veolia Environnement : 1ère entreprise mondiale des services à l’environnement

To rise to the major civil society and environmental challengesin a context of growing urbanization

• Innovate to find ways in which to reduce our environmental footprint in the countries where we operate

• Continue to develop lasting partnerships to place our range of diverse and complementary expertise at the service of our clients

The fundamental principles of our sustainability approach

KEY DATA

• 850 experts in six Research and Innovation Centers

• Veolia Innovation Accelerator

• More than 100 environmental indicators

• Strengthening of the synergies between our activities

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A New Emerging Market

A development model that is being called into question: climate change, resource depletion, demographic growth, urbanization, ecosystem disturbance, etc.

Environmental regulations and standardization: impacts on municipalities and industrial companies

Raised awareness and pressure from stakeholders (media interest in and accessibility of “life-cycle” approaches)

• Risks related to resource dependence, in turn subjectto risks of scarcity and/or price volatility;

• Risks related to regulations, quotas or taxes on polluting emissions;

• Risks for image relatedto impacts.

A general consensus leading to the management of new risks:

Environmental Footprint management: improve our clients’ resilience in a world full of constraints

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Environmental Footprint

ENVIRONMENTAL FOOTPRINT

"Quantitative assessment of the environmental impacts directly or indirectly caused by a property, a process or a service” (Veolia definition)

CARBON

WATER

RESOURCES

BIODIVERSITY

The Environmental Footprint: a new tool for aidingdecision-making and risk management

A measurement, simulation and management tool to decarbonize, dehydrate(1)

and dematerialize(2)

our solutions and contracts

(1) limit impacts on water resources(2) limit impacts on natural resources

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Combat climate change

Innovation oriented to resource recovery and energy performance

Contribution to the overall reduction of CO2 emissions with 27.5 million metric tons in 2010

Millions of metric tons CO2 equivalent

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3.2CO2 emitted

0.1CO2 reduced

2.7CO2 emitted

1.2CO2 reduced

15.4CO2 emitted

19.1CO2 reduced

26CO2 emitted

7CO2 reduced

Contribution to the reduction in greenhouse gas emissions

In 2010, total greenhouse gas (GHG) emissions fell 5% for the company as a whole

In 2010, overall GHG emission reduction improved 3% with 27.5 million metric tons CO2 equivalent

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Indirect emissions Direct emissions

Total direct and indirect GHG emissions (million metric tons CO2 equivalent)

Water

2008

2010

2009

2.20.2

2.50.3

2.90.3

2008

2010

2009

0.218.6

0.218.3 0.2

15.2

Waste management

2.023.6

2.223.4

2.123.9

2008

2010

2009

Energy

2008

2010

2009

4.944.9

5.044.5 5.4

42.1

Transportation

0.42.4

0.12.5

0.12.6

2008

2010

2009 Water

2008 20102009

Overall reduction in GHG emissions (million metric tons CO2 equivalent)

0.1 0.1 0.1

Transportation

2.1 1.251.21

29.119.5

19.1

Waste management

5.6 5.97.0

Energy

26.9 26.8 27.5

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Carbon efficiency and intensity

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

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

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Climate change is also about water

Water consumption

was multiplied by 6 during the 20th century, population

was multiplied by 3

Pression on water resources

Water stress

Optimizing the water footprint : the Water Impact Index (made by Veolia)

First indicator enabling a comprehensive assessment of the impact of human activity on water resources

Contrary to current water footprints that focus almost exclusively on volume, the WII also includes resource stress and water quality

• In 2010, Veolia Water carried out a study of Milwaukee’s urban water cycle which is believed to be the first-ever combined analysis of the water-energy nexus in a major community

=

Water + Carbon footprint