Stock specific ESG risks from global companies – lessons learnt

Geneviève Ferone, Senior VP Sustainable Development

Veolia Environnement

TBLI, London, 12th November 2010

Corporate profile

Veolia Environnement offers its clients - local public authorities and industrial companies - expertise in four complementary segments: water cycle management, waste management and resource recovery, energy management, passenger transportation and mobility services.

Veolia Environnement designs and implements tailored solutions for its clients that combine economic efficiency with control over environmental impacts, thereby helping to combat climate change, save natural resources and preserve ecosystems.

The leader in environmental services

The only company in the worldable to cover the entire range

of environmental services

The global benchmarkin water services

The global benchmark for wastemanagement and resource recovery

The leading European providerof energy services

The standard for managing safeand sustainable mobility solutions

- Dalkia

World leader

€12.55bn

European leader

€7bn

Worldwide reference

€9bn

European leader

€5.8bn

Our presence worldwide

More than 312,590 employees in 74 countries

2008 Workforceby division

2008 Workforceby region

(as at December 31) (as at December 31)

Water95,789

Wastemanagement85,600

Energy52,557

Transport77,591

France110,524

Africa & Middle East21,676

South America20,145

North America28,167

Europeexcluding France

110,065

Asia-Pacific32,013

Environmental, health and safety risks

Environmental risks: Accidents on operated sites (fire, explosions, accidental emissions into the air, water streams, biodiversity, inappropriate waste and products storage and handling…)

Damage to persons - Ex: the Metrolink accident in California – sept 2008

A credibility issue: insure consistency between the Company’s commitment and its operational implementation

A development issue: reinforce the Company’s acceptability by its stakeholders

Reputational risks

Equal resources sharing

Human rights - Access to essential services• 2 priorities to avoid exclusion:

Giving access to all in developing countriesMaintaining access for all in all countries

• VE’s role is:In the framework of public-private partnership:

- To elaborate and propose non discriminatory programmes to local authorities, according to the Veolia Environnement’s specific “ACCES” 8 points pro poor methodology, based on our experience in developing countries- To implement the decided programmes in partnership with

stakeholders (lenders, associations, elected representatives…)In developing countries’ rural zones:-To develop new services models (pilots) that are economically and environmentally sustainable and socially acceptable, in partnership with stakeholders whose experience is complementary to ours (NGO…)

8

A new project: The sustainable development responsibilities and opportunities Atlas

Perimeter : The Company’s sustainable development issues An external data « library » adapted to the Company’s sustainable development issues A geographical approach : the data are delivered as world maps

In the long view…

Connect different levels of information (international / national / local)

In addition to the Atlas, compare collected information to internal data

National level

International level

Local

Thank you for your attention