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DELIVERING THE ESSENTIALS OF LIFE
07ACTIVITIES AND SUSTAINABLE
DEVELOPMENT REPORT
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OUR IDENTITYSUEZ, an international industrial
and services Group, designs sustainable
and innovative solutions for the management
of public utilities as a partner
of public authorities, businesses
and individuals in electricity, natural gas,
energy services, water and waste management.
OUR MISSIONDelivering the essentials of life.
TABLE OF CONTENTS MESSAGE FROM THE CHAIRMAN 2
KEY FIGURES 6
OUR VISION 10
SUSTAINABLE DEVELOPMENT 66
OUR PERFORMANCE 100
GLOSSARY 120
OUR BUSINESSES AT THE HEART OF THE CHALLENGES FOR THE 21st CENTURY 24
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HARNESSING
PLANETARY CHANGES
WITHOUT FALLING
PREY TO THEM
CLIMATE CHANGE 1PRESERVATION
OF RESOURCES
2
MARKET SHIFTS 3TERRITORIAL ROOTS 4
QUALITY OF LIFE 5
State of this century’s major challenges,
the various actions undertaken
to meet them, and the involvement
of SUEZ as a leading player.
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Fighting climate change, combating pollution, turning water into a shared resource, and creating true ecological growth, by changing not only production methods, but also attitudes and our consumption patterns… These issues have all become today’s priorities.
In 1997, SUEZ chose to take a position on these crucial questions. We united major French and Belgian companies around a strong industrial project: to create a European leader in energy and the environment. Today, SUEZ is the 5th largest power producer in Europe, the 6th largest gas operator and the leader in energy services; it is also one of the two major utilities in water and waste management in the world.
To accomplish our mission of meeting the essential needs of cities and businesses, we chose to establish a solid and balanced growth model which consistently creates value and jobs. This is what has driven the Group to its excellent performance today and its ensuing ability to keep providing services to its customers over time and under the best conditions.
Our model is based on economic and industrial drive, but also on social responsibility. The Group deliberately distributes the proceeds of its growth to its shareholders – who demonstrate their confidence day after day – and to its employees, whose skills and commitment allow the Group to meet the major challenges facing our societies.
The Group’s financial performance is also the source of significant investments devoted to the research and development of tomorrow’s solutions given the tremendous needs for innovation in energy and the environment. This search for solutions has led SUEZ to identify five major challenges as the cornerstone of its businesses: the fight against climate change, the preservation of resources, territorial roots, market shifts and quality of life.
These issues are now, more than ever, the focus of universal debate and concerns. Although technological and scientific progress has led the way in the development of more sustainable consumption and production methods, it won’t suffice. A change in behavior, both individually and collectively, is urgent.
The requirement for a sustainable form of development involves us all. It is only by combining our efforts that we will be able to provide a response to the magnitude of the current threat to our resources, our ecosystems and our societies. Regardless, our lifestyles will change.
Such is the reality we need to prepare ourselves for.
BUILDING TOMORROW TODAY
FOREWORD
GÉRARD MESTRALLETCHAIRMAN AND CEO OF SUEZ
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Climate change
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After six years of work, to which more than 2,500 international scientists contributed, the Intergovernmental Panel on Climate Change (IPCC) published its summary report in November 2007. It predicts an average temperature increase of 1.8 to 4°C, which could reach up to 6.4°C in 2100 compared to 1990.
A THRESHOLD NOT TO BE CROSSEDIn order to limit the warming to a level tolerable
for humans, global temperature should not rise
more than 2°C. If that were to be the case,
the IPCC predicts that greenhouse gas
emissions would peak in 2012, before declining
to 23 billion tons of CO2 per year, compared
with 27 billion currently emitted every year. But
to achieve that, we would have to reduce our
emissions by one billion tons per year.
The experts are unanimous: there is no
universal response, but an array of solutions.
Different approaches and actions will be
necessary, from societal and behavioral
changes to technological innovation.
One of the greatest challenges is to coordinate
efforts at the international level. The solution
will come only through coordinated policy
initiatives around the world.
It was through this method that the Kyoto
Protocol in 1997 set a target for a 5%
reduction in greenhouse gases by the
industrialized countries over the period
from 2008-2012. At the same time, the
European countries agreed in 2000 on
a climate change program which led in 2005
to trading in CO2 emissions quotas, a system
that will take a few years to regulate itself.
PREVENTING WASTE The response is both short term and part
of a longer-term strategy. The short-term
reaction is to prevent energy waste daily
by lighting, heating or air conditioning,
and to make real efforts for a rational use
of energy. For SUEZ, this means major
investments in the generation of renewable
energy and in improvements to the energy
efficiency of its power plants and the
industrial activities of its customers.
Over the long-term, a balanced strategy covers
a set of solutions: the development of new
In recent years, the world’s climate has
experienced increasingly frequent extreme
phenomena. Different regions have
experienced heat waves or winters
characterized by temperatures outside
the normal range, periods of strong rains
with flooding,or drought with a lack
of potable water, even increasingly
violent and recurring tornados.
While refraining from predicting with
certainty the long-term consequences
of global warming, the scientific community
notes the facts: the change in temperature
over the last 100 years can be explained
only if we consider the impact of greenhouse
gas emissions related to human activities.
Man is slowly but surely impacting
climate change.
INVESTMENT RHYMES WITH EFFICIENCY
Climate change 11
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nuclear power plants, carbon capture and
storage, the inexpensive production of
hydrogen, and the production of new fuels
for the transport of goods and people.
MAKING THE CURRENT TECHNOLOGIES EFFICIENT In its baseline scenario, the International
Energy Agency (IEA) projects that, at the
current rate, global emissions of CO2 should
more than double by 2050, which would
represent a 137% increase compared to 2003
levels. The IEA believes, however, that it would
be possible to reduce CO2 emissions to their
present level for a reasonable cost of
US$25 per ton, if all available technologies
were effectively implemented.
Improvements in energy efficiency
have become crucial to reducing the
concentration of greenhouse gases in the
atmosphere today. According to the IEA,
the adoption of more efficient
technologies in the transportation,
building and industrial sectors would result
in a drop in energy consumption of
between 17% and 33% in 2050 and
a total reduction of 45% to 53% in
CO2 emissions.
SUEZ believes that energy efficiency
must result in a reduction in consumption,
in pollution and in costs, while maintaining
the same level of service and comfort.
The objective is to better produce
and use energy by relying on the best
technologies and on the optimization
of existing facilities.
A precise analysis of needs is the first step
in finding the most effective solution –
whether through an audit, evaluation,
engineering, the choice of a facility, an
improvement or the maintenance of existing
facilities. After that, tracking equipment
throughout its life cycle will ensure
the best energy yield over the long-term.
This aspect is far from insignificant because
global demand for energy has not only pushed
market prices up, it has also increased the cost
of the infrastructure and equipment of power
production plants. To cover its needs alone,
the IEA estimates that Europe would have
to develop more than 750 GW in additional
capacities by 2030, representing
an investment of about 650 billion euros.
There is no universal response to global warming, but an array of solutions.
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Between 2005 and 2007, fuel prices rose 60% for oil, 50% for natural gas, and 30% for coal. Partially impacted by the CO2 market, the high energy prices represent a window of opportunity: the short-term profits are being used to prepare the long-term solutions for global warming.
At the current time, predictions from
climatologists all agree on one point:
by 2020-2030, demand for energy will rise
and fossil fuels will continue to satisfy more
than 80% of that demand. The industrial
growth of countries like China and India
prevent any hope for a reversal of this trend
by the end of the century.
Although a majority of experts
agree that hydrocarbon reserves will
be sufficient to cover demand in this
century, the development of those
resources requires enormous investments
to meet global energy demand. The total
is estimated by US$20,000 billion
by 2030, according to the International
Energy Agency (IEA).
ENSURING SAFETY AND COMPETITIVENESS In order to offer its customers a safe
and competitive energy that protects
the environment, SUEZ has chosen
to guarantee them a balanced energy
mix based on all energy sources.
Its production facilities, with over 55,000 MW
of installed capacities and 10,000 MW
under construction, ranks third in the world
and is one of the most diversified
technologically and one of the most
balanced geographically.
Composed 32% of nuclear and hydraulic,
and 46% natural gas, this production
capacity is one of the most efficient and least
CO2 emitting in Europe. The Group believes
that nuclear deserves its place in such a mix
as an energy that saves resources
and is competitive at an economic level.
It is in large part thanks to nuclear that
its subsidiary Electrabel increased its
production of electricity by 7% in Belgium
between 1990 and 2007, while at the same
time reducing its CO2 emissions by 25%,
which represents 30% less per MW produced.
Concerned about maintaining production
facilities that emit fewer greenhouse gases,
SUEZ is actively investing in renewable
energy, which today represents more than
20% of its installed capacities worldwide.
A number of projects in biomass and solar
were completed in Europe, in 2007, along
with wind projects in France, Portugal
and Canada.
COUNTERING PRICE INSTABILITY At the European level, the Group supports
the ambitions of the Commission in the
energy sector. The Commission has set
a goal of 20% renewable energy
in total energy consumption by 2020
(compared to 8.5% in 2005).
The objective of this policy is to capitalize
on the many advantages offered by
renewable energy: strong supply security
and protection of the environment,
a reduction in the risks generated by
volatility and instability in fossil fuel
prices, greater energy independence,
and the creation of new jobs.
In order to balance and compensate
for price changes in the various energy
resources, SUEZ has opted for a
diversified production portfolio strategy.
Just as the Group wants nuclear to remain
a stable proportion of its capacities,
maintaining coal in its mix is a
reflection of its desire to guarantee Europe’s
energy dependence with long-term visibility
on electricity prices.
Although the price of coal has almost doubled
since 2003 to more than US$100 a ton,
it is currently one-fifth as expensive as oil and
one-third the cost of natural gas. It will remain
ON ALL TYPES OF ENERGY
Climate change11
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one of the most competitive energy
sources in the years to come even though
it is a long way from unanimous acceptance
by the public. In the United States, several
coal power plant projects have had to be
cancelled because they were poorly received by
the population. This is not the case for SUEZ’s
two coal plants under construction in Germany
and the Netherlands, which have been
designed on the basis of the most recent
studies on reducing greenhouse gas emission.
Thanks to an energy yield of 46% – the highest
to date – they will reduce CO2 emissions
by 15 to 20% per MWh. For example,
the Wilhelmshaven plant will prevent the
emission of approximately 900,000 tons
of CO2 per year in comparison with a
traditional plant currently operating
in Germany.
FINANCING A CARBONLESS FUTUREThe increase in energy prices, although
not desirable in the absolute sense, does
help to finance efforts in the research and
development of long-term technological
solutions, some of which are not yet
commercially viable. This is the case
for carbon capture and storage (CCS), in
which the technologies and the regulatory
framework have not yet advanced sufficiently
to be applied.
If applied today, capture and storage
would have the effect of drastically reducing
the power and efficiency of power plants,
which significantly increase the production
cost of electricity. In time, it would reduce
CO2 emissions from the use of coal
and natural gas by major industrial facilities,
such as power plants, cement works or steel
works, to almost nothing. According to the
Intergovernmental Panel on Climate Change
(IPCC), in 2050 the volume trapped could
represent 21% to 45% of all CO2 emitted
by human activities.
One thing is certain: to meet demand,
power companies have no choice other than
to boost their production capacities using
the latest technologies to counter the effects
of global warming. This is the strategy that
will be implemented by SUEZ, which plans
to increase its capacities to 75,000 MW
in 2012, including 40,000 MW in Europe,
and to 100,000 MW by 2013 in the context
of the merger with Gaz de France. The Group
will retain all the current fuel sources in its
facilities in similar proportions with
the exception of one source, the percentage
of which will continue to rise in the coming
years – renewable energy.
Although not desired, the increase in energy prices contributes to financing efforts in the research and development of long-term technological solutions.
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The resources
of our planet are limited.
Such was the lesson
of the 20th century.
It is also the challenge
it left us. In a world with
a growing population,
we must guarantee
each person access to
resources and energy,
while learning to preserve
them. Public authorities
and industrial groups
are now working to
reinvent production
models that are both
efficient and respectful
of the environment.
The resources
of our planet are limited.
Such was the lesson
of the 20th century.
It is also the challenge
it left us. In a world with
a growing population,
we must guarantee
each person access to
resources and energy,
while learning to preserve
them Public authorities
i l groups
The preservation
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of resources
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The preservation of resources
Climate disturbances have passed the potential danger stage to become a real threat to our ecosystems. The protection and preservation of natural resources must be an essential concern. What should be the response? To implement methods for sustainable management of our resources, while there is still time…
The finding calls into question our economic
and political systems which maintain
non-sustainable production methods
and consumption patterns.
The effort required does not demand
as many concessions as one might think.
According to the conclusions of the IPCC,
the increase in global energy demand could
be cut in half over the next 15 years by using
only the existing technologies. Managing climate
changes could cost only 0.1% of the world
Gross Domestic Product per year over
the next 30 years without any impact
on world growth.
PREVENT RATHER THAN CURE The concrete measures cited by the IPCC
range from stricter standards for air
conditioners and refrigerators to improved
energy efficiency in industry, construction
and transportation. These are all
simple measures to be taken to reduce
the use of energy resources and,
as a result, production needs.
Although a majority of corporate executives
still believe that environmental problems
are risk factors, a study in the U.S.
journal McKinsey Quarterly reports that more
and more executives are considering them
as a source of commercial opportunities.
In February 2008, 61% believed that
climate changes would have a positive
impact on their activities.
SUEZ views the problem of global
warming as an opportunity to innovate
in environmental services and launch
new types of projects that save even
more resources. Compared to the
energy and transportation sectors,
the environment is a low greenhouse
gas emitter. Most of the emissions
come from the decomposition of waste
Mathis Wackernagel and William Rees,
the inventors of the ecological footprint,
calculated that Man had reached 85%
of the planet’s limits in 1972. They believe
that Man’s footprint has exceeded the
capacities for reconstitution of the
biosphere since 1990. Today, it is at 125%
of the long-term sustainable level.
Launched early in the 1990s,
the ecological footprint allows each
person to measure the impact of his lifestyle
on the environment and the quantity
of natural resources it has. Like the carbon
footprint which prepares an inventory
of greenhouse gas emissions related
to Man’s activities, its objective is to make
us aware of our impact on the environment
and to take the necessary measures.
REINVENTING OUR RELATIONSHIPWITH THE ENVIRONMENT
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placed in landfills which produce biogases,
including methane. But major efforts
have been made to reduce the volume.
Examples include the recovery of
methane gases from landfills, recycling
and recovery of materials, or sludge
combustion in the cement industry and
in power plants burning coal.
Another challenge is the treatment of
water to make it drinkable – an area in which
SUEZ has developed leading-edge expertise.
Demographics and economic explosions alone
generate such an increase in water consumption
that, by 2050, 40% of the world’s population
which is then expected to be 9.4 billion people,
will suffer from hydric stress. This represents
3.8 billion men, women and children who will
not have the water resources necessary
to meet their basic needs.
The regions most affected will be the large
Mediterranean basin – North Africa and the
Middle East, northwest China, southern India,
Pakistan, as well as certain regions of the
United States and Mexico. Now, hydric stress,
which is the last stage before shortage,
represents a real obstacle to sustainable
development. The consequences are
serious: threats to food security, pollution,
economic losses.
Today, only 0.5% of the planet’s water
resources are available for human use,
and only 2% of the wastewater treated
is reused. However, contrary to popular
opinion, access to drinking water does not
depend on the availability of the resources,
but on the effectiveness of management.
In fact, the water resource can only be managed
locally and take into account all parameters at
the same time: state of the resources, quality
of the infrastructure and the weight of the
various consumption stations. All the technical
solutions exist, from recycling to sea water
desalination to the reuse of wastewater.
The most important consideration is using
them with maximum efficiency.
PRESERVING ECO-SYSTEMSToday, there are large-scale action plans for
dealing with depletion of natural and energy
resources, increased pollution and industrial
13
waste. However, it must not be forgotten that
destruction of ecosystems reduces biological
diversity and ecological systems will be
increasingly hard pressed to support species
living in them.
The scientific community agrees on the fact
that over the last two centuries, species have
been disappearing at a rate of 10 to 100 times
greater than the natural rate of extinction
(one species out of 50,000 per 100 years).
If average global warming reaches 3°C in 2050,
close to half of living species could vanish.
Currently, deforestation affects 13 million hectares,
or an area the size of Greece, every year. According
to UNESCO, the 34 top priority ecological zones
cover only 2.3% of the Earth’s surface but are
home to 50% of the known species of vascular
plants and 42% of mammals, birds, reptiles and
amphibians. Preserving them calls for investing
some US$50 billion, or less than 0.1%, of the
world’s Gross Domestic Product.
Anxious to participate in the collective effort being
made with respect to the environment, consumers
around the world want to buy safer, higher quality
products. Their purchase choices are increasingly
in favor of products and services that meet
stringent criteria. According to a McKinsey
Quarterly survey from September 2007, the use
of energy-saving domestic appliances, systematic
recycling and the purchase of energy efficient
vehicles are among the prime efforts cited
by consumers in the most industrialized countries.
However, two thirds of survey respondents
admitted to not taking social or environmental
criteria into account when shopping.
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Market shifts
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15
The world stage
is being redesigned.
New countries
are bringing new
wealth but also
new energy needs.
Supply networks and
distribution models
must adapt to this
challenge.
One of the major
stakes for Europe
here is energy
independence while
emerging countries
will have to respond
to the growing needs
of their populations. emergwill have to respond
to the growing needs
of their populations.
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Market shifts 33
The stakes are cultural as well as environmental: we must change our lifestyle before all else. As United National Secretary General Ban Ki-Moon has said, we must not only create a cleaner, healthier and safer world but also open the door to transforming the world’s economy ecologically.
some people call a “liberal” economy is the
accumulation of endless waste. Though
advances in technology and science have
ushered in spectacular progress in recycling
and recovery, there is too much of it for
systematic treatment.
Some see less growth – lower consumption
and production – as a solution here.
Unfortunately, this idea does not expand
the prospects of the three billion men and
women around the world who live on less
than €2 a day.
NOTHING IS LOST, EVERYTHING CAN BE RECYCLEDWe must promote new modes of sustainable
production and change our consumption
patterns and in this way set up a new form
of ecology driven growth. Economic growth
based on an ecology that drives employment
and leads to development of countries
in the third world and a reduction
of inequalities.
In Europe, various initiatives aim to deploy
an alternative to the linear-type economy
that leads to factory-made products ending
up in dumps and a depletion of resources:
a “circular” economy, also known as industrial
ecology. Based on an ecosystems model,
the aim of this kind of economy is to favor
ecological industrial development by reusing
waste and used products through recycling
(GLOBAL) and energy recovery.
In other words, various plans set in motion
by European countries – several of which
have signed partnerships with SUEZ – aim
to turn costly-by-nature waste management into
an industrial asset for the economy and the
environment. Aircraft, ships, cars, domestic
and electronic appliances can all be broken
down for recycling and be re-introduced into
the business cycle.
In the 18th century, the advent of
steam-driven coal-powered machines
and the systematic use of fossil fuel had led
to the shift from an agrarian economy into
an industrialized one, and the first industrial
revolution. At the end of the 19th century
and beginning of the 20th, the second industrial
revolution saw the introduction of petroleum
and the internal combustion engine,
the systematic use of electricity, early modern
forms of communications and the beginning
of urbanization.
The birth of the computer and Internet era
and the first effects of globalization marked
the end of the 20th century. And now the third
industrial revolution is underway with the advent
of a green economy.
The ongoing search for profitable growth
for everyone spurs us all to purchase and
consume and an explosion in the production
of goods. One of the undesirable effects of what
LEADINGAN IN-DEPTH REVIEWOF ECONOMIC MODELS
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BRIC COUNTRIES LEADING THE WAYThis new playing field is not limited
to the industrialized world and has already
been understood by other countries such
as China (See page 27). It is one of the
adaptations the government and local
companies have called for to try and deal with
the exponential development of various types
of infrastructure and basic needs. In the same
way as the other countries in the BRIC group
– Brazil, Russia and India – China has become
aware that successful integration into the world
economy will entail moderated management
of its new consumption habits.
According to the Organization for Economic
Cooperation and Development (OECD),
the four BRIC countries alone represent more
than one fourth of the world’s Gross Domestic
Product (GDP), compared to 17% in 1990.
By 2040, their GDP should be equal to that
of the G6 (United States, Japan, United
Kingdom, Germany, France and Italy).
This spurt of prosperity creates new
opportunities for growth for Western countries
in markets that are becomingly increasingly
open to international trade and investment.
In 2004, trade in goods and services accounted
for two-thirds of the GDP in China, 56%
in Russia, 40% in India and 31% in Brazil,
compared to an average 42% in the OECD
countries.
It is up to each country to choose its growth
model by selecting the technologies it seeks
to promote depending on its natural resources,
technological capabilities, territorial constraints
and political preferences. However, it is the
responsibility of all players – both public
and private – to do so wisely and to adapt
as needed for the common good of all citizens.
LONG-TERM BENEFITSMan’s capacity to question resource
management and methods of production
has become a basic factor in the development
of our economies and societies. This evolution
entails above all else a change in our behaviors
both individually and collectively but must
also spring from the political arena.
The institutional framework should contribute
to helping individuals and companies step up
It is the responsibility of all players – both public and private – to manage growth wisely and to foster adaptations as needed for the common good of all citizens.
their efforts by providing a long-term
perspective. It is up to public authorities
to create a context that is friendly to energy
savings and environmental protection
so that they are no longer perceived
as generating cost overruns but profits.
As Al Gore said in December 2007 when
he was awarded the Nobel Prize,
“We have everything we need to get started,
save perhaps political will, but political will
is a renewable resource.”
17
RADD_SUEZ_CAHIER_SPECIAL_2_GB_V9.indd Sec1:17 26/05/08 16:23:00
We all share the same
planet but we do not
all live the same way.
Needs are experienced
differently in different
geographical areas.
To respond to this
diversity, we must
listen to what is
being said. Only this
approach will make
it possible to find the
right solutions and
to respond to each
situation appropriately.
We all share the same
planet but we do not
all live the same way.
Needs are experienced
differently in different
geographical areas.
To respond to this
diversity, we must
listen to what is
being said. Only this
approach will make
it possible to find the
right solutions and
t respond to each priately.
Territorial roots
RADD_SUEZ_CAHIER_SPECIAL_2_GB_V9.indd Sec1:18 26/05/08 16:23:04
1919
RADD_SUEZ_CAHIER_SPECIAL_2_GB_V9.indd Sec1:19 26/05/08 16:23:44
Territorial roots 44Demographically speaking, 2008 is a watershed year: more than half of the world’s 6.6 billion inhabitants now live in urban areas. This concentration has raised the stakes for regions of the globe.
In Europe, North Africa, the Middle East,
China and Latin America, many cities have
turned to SUEZ to achieve better business
efficiency either in quality of service,
or in numbers of people served.
RESPECTING BALANCEThe efficacy of action taken by companies
depends as much on technical capabilities
as their sense of connectedness to regions,
the pillar for succeeding in partnership.
It is preferable for private players to act through
their local subsidiaries which have a stake
in the community and often work with local
partners.
This is even truer when it’s a matter
of distributing water, supplying electricity,
treating effluents and waste, all of which depend
on locally available resources. And companies
engaged in these activities do so over the long
term. Local constraints must be transformed
into real opportunities for innovation
and performance.
There is, however, one condition that must
be met for services to be successful: clarity.
Any partnership needs transparent rules
so balance is respected and so it may work well.
As decision makers, public authorities draw up
public policies by defining specifications
and performance. It is up to the operator
to contribute its technical expertise
and capacity for innovation.
COMMITMENT TO PARTNERSHIPS IS MORE CRUCIAL THAN EVER BEFORE Only partnerships will give us the chance
to fulfill the commitment the world community
took on at the 2002 Earth Summit
in Johannesburg: to reduce by half by 2015
the number of people without access to drinking
water and minimum sanitation. Today,
more than 1.1 billion people in the world still
have no access to drinking water and 2.6 billion
are not connected to a sanitation system.
More than 25,000 people – half of whom
are children – die from water-related illnesses.
Market liberalization, a higher standard of living,
population growth, urbanization and stricter
environmental regulations are some of the current
global phenomena that are making it more
complex to manage cities, regardless of size,
both technically and budget-wise.
The IPCC (Intergovernmental Panel on Climate
Change) predicts that by 2100 ocean
temperature levels may rise by as much
as 80 centimeters. Bearing in mind that today
39% of the world’s population lives fewer than
100 kilometers from the ocean,
potential effects on regional demographics
are considerable.
The fact is that increasingly
sophisticated capabilities and access
to more consistent sources of investment
have become indispensable in dealing
with the new needs of local populations.
Across the world, local communities
are turning to the capabilities of the private
sector in responding to their specific needs
or improvements to infrastructure and upgrading
of services.
THE SOLUTION LIES AT THE HEART OF THE REGION
RADD_SUEZ_CAHIER_SPECIAL_2_GB_V9.indd Sec1:20 26/05/08 16:24:12
21
A 2004 World Health Organization report
confirmed that access to water and sanitation
represented the starting point for the process
of development as it brings positive health
effects with decreased infant mortality and time
savings for women and children, improving
their prospects for education.
DIALOGUE: AN ESSENTIAL CONSTANT Innovation in the area of social engineering
and the involvement of local people in the
development of basic services are currently
some of the elements for successful projects.
However, having a dialogue with the
stakeholders is the second social component
of this success. Participating in local life
is like creating subsidiaries involved in the
business and social fabric of a region
by using the expertise of local suppliers,
for example, or by responding to specific
job pool issues in matters of integration
and training.
This is why SUEZ is undertaking many
training information and communication
initiatives for disadvantaged populations
through charitable, resource and technical
support.
The initiatives are aimed at helping people
who have lost everything or are stuck
dealing with an uncertain economic future
or natural disasters. Responding to the needs
of public institutions with which real
partnerships are established, the Group’s
employees become part of a local,
dynamic approach.
Whenever a project begins, local SUEZ
teams go out to meet all community
partners (local unions, non-governmental
organizations, user committees, company
representatives, and neighborhood groups)
to present their mission and jointly identify
the impact the project will have on the daily
lives of local people.
Accordingly the Group’s experience
in the design and construction of major
waterworks and their integration into
the natural and social environment is
articulated around respecting ecological
equilibrium and neighboring populations.
This has been the case in Brazil where the
Exchange among community partners is one of the foundations for transparency, quality and efficiency of public utilities.
Group operates major hydroelectric plants
and is building others.
This exchange is one of the foundations
of transparency, quality and efficiency
of public utilities. It facilitates understanding
of the social stakes in the region and is one
of the determining factors for success
in a partnership. Communities thus become
involved in their own development.
RADD_SUEZ_CAHIER_SPECIAL_2_GB_V9.indd Sec1:21 26/05/08 16:24:21
Quality of life
RADD_SUEZ_CAHIER_SPECIAL_2_GB_V9.indd Sec1:22 26/05/08 16:24:33
23
Billions of inhabitants
obtain no benefits
from globalization,
continue to go hungry,
have no access to
drinking water, medical
services, electricity,
education or minimal
shelter. Improvement
of the quality of life is
also a struggle for social
equity: the satisfaction
of the basic needs of
every person.
ch
RADD_SUEZ_CAHIER_SPECIAL_2_GB_V9.indd Sec1:23 26/05/08 16:25:00
Quality of life55
Being a citizen involves having the right to a clean environment and access to basic resources and the duty to respect collective surroundings and make responsible use of resources. It is up to the public authorities to find ways for everyone to live better together and it is up to the individual to take their lead.
a detailed climate and energy action plan.
EU countries were the first to set regional target
restrictions on greenhouse gas emissions.
The goal is clear: reduce emissions by 20%
in 2020 to the 1990 levels.
GREEN INDUSTRY CREATES EMPLOYMENTEuropean strategy has an eco-innovation
aspect to promote efforts in the areas
of environmental protection, conservation
of natural resources, competitiveness
and employment. The goal of this policy
is to promote “green” sectors of industry such
as climate friendly technologies, the fight against
air pollution, wastewater management and
recycling technologies. This market is estimated
to be worth €600 billion a year with a 5% annual
growth rate and direct employment of over
two million people.
Europe has also taken the lead in increasing
spending in the area of eco-technologies
by allocating €2.3 billion to conduct research on
more sustainable energy sources and €4.1 billion
to a greener and more intelligent,
integrated, pan-European transportation
system.
Some European industries,
funneled through the old-style economy,
fear that the international competitiveness
of their companies will suffer and that
thousands of jobs might be lost through
offshoring to countries not subject
to emissions’ quotas.
The response from the European
Commission is clear: new markets shall
arise and nearly a million jobs
will be created. One Munich-based consulting
firm foresees that more people will be
employed in Germany in the environmental
technology sector than in the automobile
sector by the end of the next decade.
The stakes now call for a consensus.
Climate changes are harming the ecological
balance of system and hover threateningly
over our environment, and, more broadly,
over our societies. Only a carbon-sober economy
will enable consequential advances in the well
being and health of citizens, economic growth
and sustainable employment.
On a worldwide scale, about 80%
of greenhouses gases are emitted in urban
areas. Pollution is added on to concentrations
of poverty, spreading slums, unhealthy living
conditions and the social disturbances found
in cities as so many threats to those living there.
The European Environmental Agency (EEA)
finds that the number of Europeans exposed
to pollutants in the atmosphere has risen
from 51 million people in 1966 to
103 million in 2001.
Heeding warnings from the scientific community,
Europe has led the way in coming up with
RETHINKING THELIVING ENVIRONMENT ON A BROAD SCALE
RADD_SUEZ_CAHIER_SPECIAL_2_GB_V9.indd Sec1:24 26/05/08 16:25:13
25
RADD_SUEZ_CAHIER_SPECIAL_2_GB_V9.indd Sec1:25 26/05/08 16:25:19
poised to pass the United States as the world
biggest polluter. In 2006, China brought on
stream 105,000 MW of new plants – the
equivalent of all France’s installed base –
90% of which are coal powered. And by the
year 2030, it will have brought 1.3 million
additional megawatts on stream, 70% of
which will be coal according
to the International Energy Agency (IEA).
Aware of the environmental implications here,
Prime Minister Wen Jiabao did commit his country
to a 20% reduction in energy consumption
per unit of Gross Domestic Product. China also
has plans to invest US$10 billion
in renewable sources of energy in 2008.
THE IMPERATIVE TO FOCUS ON GROWTH Quality of life has also become a recurring
topic in other areas of the world. That is the
case in China where the standard of living is
rising and there has been an unprecedented
explosion in urbanization since the country has
become a market economy. Its steep growth
curve is forcing it to deal with development,
particularly industrial development, which is
creating serious environmental problems:
air, water and ground pollution, and
accumulations of all manner of waste.
By increasing efforts to respond to the
exponential growth of its needs, China is
Quality of life55
RADD_SUEZ_CAHIER_SPECIAL_2_GB_V9.indd Sec1:26 26/05/08 16:25:38
The country has also launched a new strategy:
a circular economy whose goal is to use resources
in the most efficient manner possible and
to protect the environment. To do this,
China is developing a regulatory scheme that
will facilitate setting up eco-parks and eco-cities
throughout the country. By 2020, 400 new
ecological cities should be accommodating
300 million rural Chinese.
The first-ever “ecological” city in the world,
Dongtan should be up and running in
three years. Its features will include buildings
no more than eight stories high, pedestrian
walkways no more than six times the size
of those in London, buses with fuel cells,
vegetable matter roofs and recycled
rain water.
ZERO FOSSIL FUEL, ZERO CO2In Europe and North America, cities have taken
numerous sustainable initiatives at the urging
of local and regional communities.
This new, sustainable urban planning with
its energy- and climate-related facets applies both
to new buildings and to rehabilitation of existing
properties. The mobilization of the public and
private sectors, elected officials, civil society
members and researchers is enabling
eco-technology responses to redefine
quality of life.
Designing sustainable neighborhoods favors
collective solutions and implies rethinking building
methods, energy production, water and waste
management and transportation methods.
Energy-positive houses have photovoltaic solar
and heating panels that produce more energy
than they consume.
Today, the road to energy efficiency – especially
in buildings – must be travelled as it has
significant potential. In the low income housing
sector, French officials estimate that
850,000 housing units are performing below par.
Mining this wealth of energy savings could save
at least 7 billion kWh with a reduction
of one million tons of CO2 per year.
By 2050, the potential reduction in
energy consumption in the residential
and commercial building sector is 35% according
to the EEA. Installing boilers, air conditioners,
urban heating, intelligent meters and use of new
energy sources such as solar cells, geothermal
and heat pumps in better insulated individual
houses will contribute to increasing the energy
yield of new buildings by more than 70%.
Combining quality architectural choices
and techniques that respect environmental,
economic and social values is the SUEZ vision.
The goal is to show that it is possible to build
in urban environments while respecting ecological
values and to improve the quality of life for
everyone without huge increases in the local
community, and, indirectly, the tax payer budgets.
A sustainable urban planning policy mobilizes the public and private sectors, elected officials, civil society members and researchers for redefining the meaning of quality of life.
27
RADD_SUEZ_CAHIER_SPECIAL_2_GB_V9.indd Sec1:27 26/05/08 16:25:53
The requirement for a sustainable form of development involves us all. It is only by combining our efforts that we will be able to provide a response to the magnitude of the current threat to our resources, our ecosystems and our societies.
“”Gérard Mestrallet
RADD_SUEZ_CAHIER_SPECIAL_2_GB_V9.indd Sec1:28 26/05/08 16:25:57
ASDR 20072007
OUR BUSINESSES
AT THE HEART OF THE
CHALLENGES FOR THE 21st CENTURYOUR BUSINESSES
AT THE HEART OF THE
CHALLENGES FOR THE 21st C
2
SUSTAINABLE DEVELOPMENT
SUSTAINABLE DEVELOPMENT3OUR PERFORMANCEOUR PERFORMANCE4
OUR VISIONOUR VISION1
RADD_SUEZ_01_09_GB_V8.indd Sec2:1 26/05/08 14:33:30
2
Sir, Madam:
The year 2007 was marked by continued improvement in the performance achieved by SUEZ with strong growth in results that exceeded our objectives and by sharp acceleration in our industrial development.
The Group again improved its operating performance and its profitability.
In 2007, SUEZ recorded steady growth in its businesses, with revenues totaling €47.5 billion. The Group recorded organic growth, excluding currency and consolidation effects, of 6.2%.
Current Operating Income was €5.2 billion, up 15%. Gross operating income totaled €7.9 billion, representing growth of 12.4%, ahead of the 10% target announced and reflecting the sustained and continuing efforts made on profitability by the Group. Net income, Group share, was the highest to date at €3.9 billion.
By relying on strong cash generation, the Group maintained its debt ratio at a very solid level (53%) while it continued to accelerate development (€6.1 billion in investments over the year) and to implement its policy of dynamic compensation for shareholders
2007, CONFIRMATION OF A SOLID, BALANCED MODEL THAT CREATES VALUE AND EMPLOYMENT
MES
SAG
E FR
OM T
HE
CHA
IRM
AN
RADD_SUEZ_01_09_GB_V8.indd Sec3:2 26/05/08 14:33:41
MES
SAG
E FR
OM T
HE
CHA
IRM
AN
3
(a dividend of €1.36 per share – up 13.3% – and a share buyback program for €1.1 billion).
This performance reflects the strength and visibility of our growth model and our industrial vision.
In an economically uncertain environment, the long-term businesses of the Group ensure that we can implement an ambitious growth strategy. Sustainable growth markets, a large number of commercial successes, balanced contribution from all business lines to the growth in results are all factors that give the future performance of the Group strong visibility and clarity over time.
This performance highlights the ability of SUEZ to combine steady growth, financial discipline, balanced strategic positioning and recurring profitability, an ability that will be strengthened by the proposed merger with Gaz de France.
2007 was marked by a sharp acceleration in our industrial development.
Our capital expenditures rose 60% over 2006 and were used in particular to increase our power-generation capacity. Today, SUEZ has 55,000 MW of power in operation and 65,000 MW if we include capacity currently under construction. The Group now has one of the most balanced production bases in terms of both geography and energy mix – the third largest in the world in terms of capacity.
We have chosen to position ourselves heavily in favor of the major energy-related challenges: preservation of resources, the fight against global warming and safety of supply. We have decided to highlight our approach:
the joint and balanced development of different energy sources. This is our belief and our commitment.
In 2007, we expanded in the renewable energy segment. In wind power, the Group acquired Compagnie du Vent in France and Ventus in Canada and opened wind farms in Portugal. We also launched major hydraulic projects in Brazil and continued our biomass and solar programs in Europe.
In nuclear power, our expertise as an historical operator through Electrabel enabled us to sign a major partnership with Total and Areva to offer the United Arab Emirates an EPR plant with two 1,600 MW reactors. In the long term, the Group plans to maintain a stable proportion of nuclear power within its energy mix and, therefore, is planning to develop additional capacities in Europe by 2019-2020. Our belief is that nuclear is an unavoidable solution for ensuring the energy supply and fighting global warming.
Internationally, our expertise in natural gas and liquefied natural gas was further strengthened last year, particularly on the American continent. In the United States, the authorities have issued all authorizations necessary for the Neptune project, an offshore LNG terminal, near Boston. In Chile, our teams launched construction work on one of the first LNG terminals in Latin America. In Europe, the Group also plans to seize opportunities in the developing Spanish market and raised its stake in Gas Natural to 11%.
RADD_SUEZ_01_09_GB_V8.indd Sec3:3 26/05/08 14:33:45
4
Our expertise meets the demand for energy efficiency and a reduction of emissions.
In 2007, SUEZ recorded strong commercial activity in energy services, a sector in which it remains the leading European player. Energy efficiency is, in fact, at the very core of the three ambitious objectives set by the European Union for the year 2020, based on the “3 x 20”: a 20% reduction in primary energy consumption, 20% renewable energy in total energy consumption, and a 20% reduction in greenhouse gases.
The greatest challenge of our century will be to create truly ecological growth. The change will require a more global approach to needs, integrating transportation and mobility factors, along with architecture, waste management and recycling, energy production, as well as heating and lighting.
All these changes are growth vectors for the Group.
Fighting climate change, protecting resources, providing access to energy or water lie at the very heart of our businesses. This is why the subsidiaries of the Group can respond pragmatically and innovatively to the expectations of public authorities and businesses in terms of handling increasingly stringent regulations. To comply with the requirements related to sustainable development, SUEZ has integrated the new needs generated by changes in our societies into its offer. The Group meets the requirements
of ecological growth by becoming a benchmark player in the “circular economy” where nothing is lost and everything is recycled, particularly products at the end of life –from airplanes to cars, to household appliances and electronics.
Our teams are therefore implementing major reindustrialization and revitalization projects around these new high-growth businesses, as reflected in the partnerships signed in 2007 with Renault for the deconstruction of cars and with Michelin for the creation in Toul of a European industrial center dedicated to the recycling of products at the end of life.
In northern France, 2007 marked the completion of the SITA Agora project, which cleaned up and reindustrialized the old Metaleurop site using environmental technologies, resulting in the arrival of 14 companies and the creation of 420 jobs to date.
Our teamsare implementingmajor reindustrialization and revitalizationprojects around the new high-growthbusinesses
“
”
The greatest challenge of our century will be to create a low-carbon economy without stifling growth“
”
RADD_SUEZ_01_09_GB_V8.indd Sec3:4 26/05/08 14:33:45
MES
SAG
E FR
OM T
HE
CHA
IRM
AN
5
It is also a mark of our corporate social responsibility.
Since its foundation, the Group has given priority to a model of solid, balanced growth that creates value over time and jobs. Our long-term businesses mean that we can implement an ambitious development strategy, which is based on solid foundations.
That strategy includes a strong drive to create jobs. As a result, the Group recruited 26,000 new employees around the world in 2007, including 10,000 in France and 3,800 in Belgium. The Group plans to hire 130,000 people in all its businesses by 2013, which represents a net creationof 15,000 new jobs.
The industrial vitality of SUEZ goes hand in hand with the vitality of its human resources, with a model that makes all employees partners in the performance of the entire Group. Thus, in 2007, we distributed 14 bonus shares to each of the 149,000 employees worldwide, including all nationalities and categories. From 2004 to 2007, the Group distributed €31.5 billion to its employees in the form of compensation, while at the same time devoting €27.5 billion to development investments.
Over the same period, SUEZ paid €5.3 billion to its shareholders in the form of dividends, with a growth strategy based on the balance between financial growth and the ability to create value for shareholders. In this respect, the Board of Directors has decided to propose to the Shareholders’ Meeting in May 2008 an ordinary
dividend of €1.36 per share for 2007, an increase of 13.3% over 2006, and 70% over 2003.
Our objectives will continue to be ambitious for 2008.
We will continue to increase our investments in 2008 to a level higher than in 2007, while maintaining the Group’s financial discipline, both in terms of our investment criteria and in maintaining our category A rating over the medium term.
The ability of SUEZ to combine steady growth, financial discipline, a balanced strategic positioning and recurring profitability will be strengthened by the proposed merger with Gaz de France, a project that should be finalized in 2008. The recent changes in the energy sector in Europe and around the world have again demonstrated the logic of this excellent industrial project that serves our customers, our teams, and our shareholders.
Gérard Mestrallet Chairman and CEO
RADD_SUEZ_01_09_GB_V8.indd Sec3:5 26/05/08 14:33:45
CURRENT OPERATING INCOMEin billions of euros
2006 2007
4.5
5.2
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
29.131.4 31.5
33.938.5
40.7 39.6 40.7 41.544.3
47.5
CONSOLIDATED GROUP REVENUESin billions of euros
+7.2%growth in 2007
+15.1%growth in 2007
KEY FINANCIAL FIGURES SUEZ results rose sharply in 2007 and exceeded the objectives announced. The Group again demonstrated the effectiveness of its industrial model and its ability to create value for its shareholders. In an uncertain economic and financial environment, the Group’s long-term businesses ensure the implementation of an ambitious development strategy that combines steady growth, financial discipline and recurring profitability.
+10.3%
+5.9%
+5.1%
+5.4%
17.6
12.0
6.611.3
REVENUES BY BUSINESS LINEin billions of euros
SUEZ recorded revenues of €47.5 billion for 2007, an increase of +7.2% over 2006, with accelerated growth over the second half.
The commercial vitality of the Group was refl ected in the signifi cant contribution of each of the business lines to growth.
Current Operating Income reached an historic high at €5,175 million. It rose sharply: +15.1% gross and +10.5% organic.
6
2006 2007
7.17.9
EBITDAin billions of euros
+12.4%growth in 2007
EBITDA was €7,965 million, an increase of +12.4% over the announced objective of +10%.
RADD_SUEZ_01_09_GB_V8.indd Sec3:6 26/05/08 14:33:46
RETURN ON CAPITAL EMPLOYEDin percentages
2005 2006 2007
10.7%
13.7%13.0%
NET INCOME,GROUP SHARE in billions of euros
2006 2007
3.93.6
KEY
FIG
UR
ES
€37.1 billion in capital employed at the end of 2007
+8.8%growth in 2007
Net income, Group share amounted to €3.9 billion, an increase of +8.8%.
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
0.460.54 0.60 0.66 0.71 0.71 0.71
0.80
1.00
1.201.36
DIVIDEND GROWTHin euros per share
The very strong growth in the dividend since 2004 (+70%) refl ects the dynamic policy to remunerate Group shareholders, consistent with the trend in results, and offering a competitive yield within the entire sector.
CASH GENERATION in billions of euros
Net cash flow
1.4
Free cash flow
4.0
Cash flow
5.9
Working capital
requirements
(0.3)
Maintenance investments
(1.6)
Disposals and other
1.9
Development investments,
including financial investments
(4.5)
Free cash fl ow rose +16.5% to €4 billion.
The return on capital employed (ROCE) rose 13.7%, refl ecting a new improvement in margins and a decline in capital intensity.
DYNAMIC SHAREHOLDER COMPENSATION in billions of euros
* including dividends paid to minority shareholders
2006 2007
1.7*1.1
2.0*
Stock purchases
Dividends
3.1
The dynamic dividend policy has been complemented since 2007 by a share buyback program that will be continued in 2008.
ACCELERATED INDUSTRIAL DEVELOPMENT in billions of euros
3.1 1.7
0.40.9
The Group recorded €6.1 billion in industrial and fi nancial investments in 2007 (+60%), particularly developing its operations in power generation, renewable energy, natural gas and Liquefi ed Natural Gas.
7
€6.1 billion in investments in 2007
+13.3%growth in 2007 +81%
RADD_SUEZ_01_09_GB_V8.indd Sec3:7 26/05/08 14:33:48
2003 2004 2005 2006 200720
30
40
5047.9
50.345.7
42.7
48.2
KEY ENVIRONMENTAL FIGURES
SUEZ encourages the development of certifi ed management systems. This again resulted in an increase in the portion of revenues covered by a certifi ed Environmental Management System (EMS). This represented more than 50% of the total revenues in 2007. More than 92% of the revenues were covered by a policy or declaration of environmental commitment at the end of 2007, despite the inclusion of new non-certifi ed contracts.
PORTION OF REVENUES COVERED BY A CERTIFIED EMS in percentages
8
7
6
5
4
3
2
1
02003 2004 2005 2006 2007
Recovered sludge
Total specific waste and byproducts
Recovered waste and by-products(excluding recovered sludge)
Excluding waste not sorted or composted through SUEZ Environment’s waste activity (as unfi t for recovery), the recycling rate for waste rose sharply in 2007, while the total production of waste declined by 6%. Specifi c waste includes fl y ash, bottom ash, desulfuration by-products and refi om.
RECOVERED WASTE AND BY-PRODUCTS in millions of tons
2003 2004 2005 2006 2007
Emissions of SO2 related to energy production/ Energy produced (GWheq/T)
Emissions of NOx related to energy production/ Energy produced (GWheq/T)
Emissions of CO2 related to energy production/ Energy produced (MWHheq/T)
0.00
0.20
0.40
0.60
0.80
1.00
1.20
1.40
Emissions of atmospheric pollutants dropped substantially for gases such as CO2, SO2 and NOx while energy production rose signifi cantly.
ENERGY PERFORMANCE
2005 200720042003 20060
50
150
250
100
200
Water consumption – Industrial process – Total
Water consumption – Cooling – Total
Water consumption – Total
The Group’s effort to manage water consumption effi ciently last year generated a signifi cant decline in the water related to the industrial process.
WATER CONSUMPTION in millions of m3
2005 200720042003 2006
747373 73
75
The effi ciency of the network is a point on which SUEZ Environment devoted a signifi cant effort. The decrease observed does not refl ect the efforts on current contracts, but corresponds to a change in the scope of reporting, i.e. the inclusion of the new service contract with the city of Algiers.
TECHNICAL EFFICIENCY IN DRINKING WATER DISTRIBUTION NETWORKS in percentages
Installed capacity for power and heat production from renewable resources rose substantially, in large part because of the full consolidation of Compagnie Nationale du Rhône. Wind energy and biomass also grew signifi cantly.
INSTALLED CAPACITIESOF RENEWABLE ENERGYin MWeq
2003 2004 2005 2006 2007
Hydraulic(small + large)
Biomass(including incineration)
Biogas
Wind
4,000
6,000
8,000
10,000
Geothermal
8
RADD_SUEZ_01_09_GB_V8.indd Sec3:8 26/05/08 14:33:49
KEY
FIG
UR
ES
KEY SOCIAL FIGURES
The breakdown of the workforce by region remained stable in 2007. This refl ects the long-term nature of the concessions (water and waste services), as well as the balanced development of the energy-related operations (Europe in general, Middle East, Americas). Europe represents 90% of the employees, France and Belgium 60%.
The frequency rate (FR) for the Group again improved signifi cantly in 2007, with a decline of 17% from 2006 and 45% from 2003. The four business lines all contributed to this remarkable progress, with special mention for SES (-19%). The severity rate (SR) also continued to decline (-14% over one year, -37% over fi ve years), exceeding the Group’s objective. Progress was signifi cant for SES (-17%) and SE (-10%).
Workers represented more than 50% of the personnel and the percentage of managers increased slightly. The percentage of women in the work force also rose from 2006.
BREAKDOWN OF WORKFORCE BY REGION in percentages
CHANGES IN THE FREQUENCY AND SEVERITY RATES OF WORKPLACE ACCIDENTS
BREAKDOWN OF WORKFORCE BY SOCIOPROFESSIONAL CATEGORYin percentages
0
10
20
30
40
60
80
100
50
70
90
2005 2006 2007
AfricaSouth AmericaNorth AmericaAsia-OceaniaRest of EuropeRest of the EUUnited KingdomBelgiumFrance
0
10
20
30
40
60
80
100
50
70
90
2005 2006 2007
WorkersTechniciansManagers
2005 20062003 2004 20075
10
15
20
25
30FR SR
0.0
0.2
0.4
0.6
0.8
1.0
Gravity rate
Frequency rate
The average number of training hours remained higher than 30 hours per trainee per year. Combined with the broad distribution of training, this fi gure illustrates the Group’s ongoing commitment to improving the skills of all its employees, managers, technicians or workers.
CHANGE IN THE NUMBER OF TRAINING HOURS PER TRAINEE
2005 2006 200720222426283032343638
31.532.3
28
The average salaries paid by the four business lines are in line with or exceed the averages in their reference sector for all socioprofessional categories. The highest ratios of “SUEZ salary to sector salary” were achieved by SEI in countries with sustained growth and high salary ranges.
SUEZ COMPENSATION COMPARED TO SECTOR AVERAGES BY SOCIOPROFESSIONAL CATEGORY
SEE SEI SES SE0.0
0.5
1.0
1.5
2.0
WorkersTechniciansManagers
In line with its policy to boost the employability of its employees, SUEZ raised the percentage of persons trained in 2007 to over 60%, up signifi cantly from previous years. This is a remarkable proportion for the “utilities” sector.
PROPORTION OF TRAINED EMPLOYEES
2005 2006 200750
52
54
56
58
60
62
64 61.2
56.457.6
9
RADD_SUEZ_01_09_GB_V8.indd Sec3:9 26/05/08 14:33:51
10
INTERNATIONAL
MANAGEME
MANAGEMENT
MANAGEMENT
OAD MAP
ROAD MAP
ROAD MAPINTERNATIONAL
INTERNATIONAL
CHALLENGES
ORGANIZATION
ORGANIZATION
CHALLENGESOUTLOOK
INTERNATIONAL
ORGANIZATION
STRATEGY
CHALLENGES
RADD_SUEZ_10_23_GB_V8.indd 10 26/05/08 19:50:55
OUR VISIONSUEZ is a leading international player in two rapidly changing and high-growth markets: energy and the environment. In order to develop its activities at the heart of the planet’s problems, the Group is developing a dynamic model that combines economic performance, protection of the environment and social equity. Sustainable development,the focus of its strategy is the driver of its growth and the guarantee of its continuity.
12 • LONG-TERM BUSINESSES AND CHALLENGES
14 • OUTLOOK 16 • GOVERNANCE Corporate governance under the sign of effectiveness Board of Directors Committees of the Board of Directors Ethics and risk management Executive Committee 22 • SHAREHOLDER AND INVESTOR RELATIONS
11
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RADD_SUEZ_10_23_GB_V8.indd 11 23/05/08 19:55:52
12
the yield of facilities and
reduce the use of resources.
It is developing water recycling,
desalination facilities and waste
treatment technologies so that
the waste can be used as a
“secondary raw material”.
QUALITY OF LIFE One of the goals of sustainable
development is to preserve
and enhance the quality of
life of both present and future
generations. The challenge is
more than strict compliance
with social and environmental
regulations. By ensuring the
safety of its facilities, reducing
discharges and sound levels,
integrating them within the
landscape, protecting the
ecosystems, etc., SUEZ is
working to minimize the impact
of its activities on its employees,
its customers, the residents
near its plants and the populations
it serves. As a major player in
local economies, the Group is
mindful of being actively involved
in the social development and
well-being of the communities
for which it works.
MARKET SHIFTSGlobalization, technological
changes, the dynamic growth
of emerging countries, and
awareness of the environmental
challenges are radically
transforming economic rules.
Powerful new players (Brazil,
China, India, etc.) are playing
a decisive role in world trade.
The deregulation of entire sectors
of the economy (like the opening
of the European energy market)
and more stringent environment
regulations are significantly
changing the rules of the game.
Anticipating these changes,
SUEZ is positioning itself as
a player for the future, active
For more than 150 years,
the companies that formed
the SUEZ Group have been
delivering services essential
for the economic and social
development of populations:
electricity, natural gas, energy
services, water and waste
management. These businesses
are conducted locally and
over the long term by controlling
their impacts. The challenges
facing the Group are planetary
challenges that greatly
exceed the framework
of its businesses.
CLIMATE CHANGE The reduction of greenhouse
gases (GHG), one of the causes
of climate abnormalities and
global warming, is one of
the major challenges of
development policies at
the global level. It directly
affects the SUEZ businesses:
energy and heat production,
like burial of waste,
are significant sources
of greenhouse gas emissions.
For the Group, this means
controlling greenhouse gas
emissions due to its own
operations without threatening
its competitiveness, but it
also means offering its
customers the most effective
solutions so that they can
achieve their own objectives
to control emissions.
Between 1980 and 2007, SUEZ
reduced its emissions of CO2 per
kilowatt-hours produced in Europe
by 50% and continues its efforts
to further improve its performance.
RESOURCE PRESERVATION The depletion of fossil fuels,
the deterioration of biodiversity,
tensions over access to water
remind us of the imperative
need to establish rigorous and
reasonable management of
the natural resources useful
for the development of human
societies. As an energy producer
and water manager, SUEZ is
directly concerned with these
issues. The Group must reduce
its own use of fossil fuels
and those of its customers,
preserve water resources,
and develop industrial sites
while protecting ecosystems.
Renewable energy represents
more than one-fourth of the SUEZ
production facilities. The Group
favors technologies that increase
LONG-TERM BUSINESSES AND CHALLENGES
Energy and the environment, the two business sectors of SUEZ, are at the center of the vital challenges that exceed simple economic and industrial considerations. In a rapidly changing economy, this responsibility has led the Group to place sustainable development at the very core of its concerns.
SUEZ ENERGY EUROPE 2007 revenues: €17.6 billion• Electricity• Natural gas• LNG• Energy services
SUEZ ENERGY INTERNATIONAL 2007 revenues: €6.6 billion• Electricity• Natural gas• LNG• Energy services
SUEZ ENERGY SERVICES 2007 revenues: €11.3 billion• Energy services• Engineering• Installations and related services
SUEZ ENVIRONMENT 2007 revenues: €12.0 billion• Water and sanitation services• Water-treatment engineering• Waste services
4 OPERATIONAL BUSINESS LINES
RADD_SUEZ_10_23_GB_V9.indd 12 27/05/08 16:52:35
in high-growth markets and
able to seize opportunities
for sustainable growth.
TERRITORIAL ROOTS Despite its international scope,
the issues of sustainable
development are still resolved
locally, based on different
geographic, social and
economic situations.
The preservation of water
resources calls for different
OPERATIONAL PERFORMANCE FOR THE GROUP AND CREATION OF VALUE FOR
STAKEHOLDERS
• COMPETITIVENESS OF COSTS
• QUALITY OF SERVICE
• REPUTATION AND CREDIBILITY
• MISSION EFFECTIVENESS IN PUBLIC UTILITIES
REFLECTING THE VALUES
OF SUSTAINABLE DEVELOPMENT IN
OUR PRACTICES AND OUR CULTURE
PROMOTING THE SOCIAL COMMITMENT
OF THE COMPANY
INTEGRATING SUSTAINABLE DEVELOPMENT
IN OUR COMMERCIAL OFFERS
ACTING AS A CORPORATE
CITIZEN
PROTECTING THE ENVIRONMENT
OUR SUSTAINABLE DEVELOPMENT APPROACH FOR PERFORMANCE
solutions in temperate countries
and in arid zones, in Europe
or the Middle East. SUEZ operates
worldwide in activities with
a strong local implication –
the supply of energy or water,
local services.
A water network, a power plant,
a waste management centre
cannot be moved: they are local
infrastructures built to provide
service over the long term. Their
impact on jobs, economic
development, health and the
local environment is important.
For SUEZ, it is therefore
imperative to establish sustainable
operations in the countries where
the Group conducts its activities
and to develop relationships of
confidence and respect with the
local populations for the long term.
A VOLUNTARY APPROACH By placing development at the
center of its strategy, SUEZ has
set economic, environmental and
social priorities. They all contribute
to its competitiveness and quality
of service, ensure its operational
performance and create value
for its stakeholders (employees,
customers, shareholders, users,
neighboring residents…).
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14
the Group’s investment committee
in 2007. SUEZ plans to invest
€15 billion over the period from
2007-2012, primarily to expand
its power production capacities in
renewable and thermal energy in
Europe, Latin America and Asia
(€8 to 9.5 billion). The Group will
also invest €4 to 4.5 billion in
the environment (water treatment,
desalination projects in the Middle
East, Asia, Europe, etc.), between
€1 and 1.5 billion in energy
services and between €1 and
2 billion in LNG infrastructures
(new terminals in the United
States and Latin America,
development of European
capacities, etc.).
132,000 NEW EMPLOYEES Anticipating the changes
in its businesses, SUEZ plans
to recruit 132,000 people by
2013 to support its growth
and replace its teams.
56,000 people are expected
to be hired in France and
10,000 in Belgium, which
should make the Group one
of the top recruiters in Europe.
In an international context
marked by uncertainties,
a sharp increase in the cost
of raw materials, tensions
on the energy market and
increased awareness of
environmental challenges,
in 2007, SUEZ confirmed
the relevance of its long-term
strategy in the crucial
and sustained growth
markets of energy
and the environment.
HISTORIC PERFORMANCE IN GROWTH MARKETS The Group recorded historic
performances, that exceeded
the objectives announced,
with revenues increasing by
7.2% (€47.5 billion) and income
from continuing operations up
15.1% (€5.175 billion). All
activities contributed to the growth.
Electricity sales rose in Europe,
marked by market deregulation
and steady rates in 2007
(+17.6% for reference prices in
Northwest Europe), as well as in
Latin America where demand
remained very strong.
LNG activities improved in
Latin America and right across
the board, the service businesses
(energy, water, waste services)
continued to grow in dynamic
markets.
€15 BILLION IN INVESTMENTS In rapidly changing markets
marked by a global increase
in energy demand and dynamic
prices in Europe, the Group made
€6 billion in industrial investments
in 2007, up 60%, and expects
to raise them again in 2008.
80 projects were approved by
OUTLOOK SUEZ recorded an historic performance in 2007. The Group continues to implement a major development program to move with changes in its markets. It is planning to hire 132,000 people by 2013.
€6 BILLION IN INVESTMENTS IN 2007
CNR – Hydroelectric plant in Pierre-Bénite (France). Control room
€47.5 BILLION IN REVENUESIN 2007
RADD_SUEZ_10_23_GB_V8.indd 14 23/05/08 19:55:54
NORTH AMERICA €4.2 billion
4,000 employees
EUROPE €37.9 billion
133,400 employees
AFRICA €0.7 billion
3,350 employees
ASIA & PACIFIC €2.5 billion
5,750 employees
REVENUES AND WORKFORCE BY REGION
WATER AND ENERGY IN THE MIDDLE EAST By implementing the synergies
from its two principal businesses,
water and energy, SUEZ is
becoming the principal investor
in Middle East projects.
In western Saudi Arabia, the
Group is building a combined unit
which, in 2009, should supply
2,750 MW of electricity (10% of
the country’s electrical capacities)
and 800,000 m3 of fresh water
per day (twice the consumption of
Paris). This is a colossal project,
representing an investment of
US$3.4 billion covered by SUEZ
and regional partners.
In Barka, in the Sultanate of
Oman, another project is in the
works: 678 MW of electric power
coupled with a plant to produce
120,000 m3 of fresh water per
day, which will use the reverse
osmosis process, an innovative
and more energy efficient
desalination technique in which
SUEZ subsidiary Degrémont
is the world leader.
In Abu Dhabi, the Group is one
of the principal shareholders
in one of the largest water
and energy plants in the world
at Taweelah. In Dubai in the
United Arab Emirates, it won an
US$800 million project at the end
of 2007 to build and operate for
10 years a plant that will reuse
waste water from an enormous
new city under construction.
At the end of March 2008,
it won another giant desalination
and power project in Qatar.
In Oman, Bahrain, Qatar,
Jordan… SUEZ operates
electrical plants, re-treats
and distributes water. In
20 years, the Group has become
the leading investor
in projects in the Middle East.
And the region’s potential is
immense. To cover the needs
of its demographic growth and
industrial development, in
10 years the Middle East would
have to invest US$14 billion
in desalination, US$7 billion in
water reuse, and double its power
capacities, which represents
three to four projects a year.
Over the longer term, Areva, Total
and SUEZ announced early in
2008 that they intend to develop
joint nuclear projects in the region.
SOUTH AMERICA€2.2 billion
2,500 employees
2007 revenues: €47.5 billionTotal workforce: 149,000
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RADD_SUEZ_10_23_GB_V8.indd 15 23/05/08 19:56:03
16
compromise the exercise of his
freedom of judgment.”)
It will be up to the Shareholders’
Meeting on May 6, 2008 to renew
the terms of Edmond Alphandéry,
René Carron, Étienne Davignon,
Albert Frère, Jean Peyrelevade
and Thierry de Rudder.
SIGNIFICANT HOLDINGS BY THE DIRECTORS The Group’s bylaws request
Directors to own a minimum of
2,000 shares during their term
of office. The Directors hold a
substantial number of shares
(see p. 17). This level of
ownership, much higher than
normal practice, demonstrates the
involvement of the Directors and
the confidence they have in the
future of the company.
INTENSE ACTIVITY FOR THE BOARD The Board of Directors met eight
times to review strategic changes
for the Group. The attendance
rate at meetings was 90%
(12 meetings in 2006,
with attendance of 82%).
Reaffirming its focus on corporate
governance rules, in January
2002, the Board of Directors
adopted a “Director’s Charter”
to transparently define the rights
and duties of a Director (this
document can be found at
www.suez.com).
In addition, as has been the case
every year since 2004, an
assessment of the operations of
the Board was conducted under
the responsibility of Étienne
Davignon, chairman of the Ethics
Committee, with the assistance
of an outside expert.
This analysis noted the
improvements made following
previous studies, but also assessed
the operation of this body during
the process to prepare for the
proposed merger with Gaz de
France. For 2007, the Committee
noted the results of the study
conducted at a Board meeting
in February 2008.
In 2007, the SUEZ Board
of Directors consisted of
13 members, six with French
citizenship, five with foreign
citizenship and two with dual
citizenship (French and other).
Five of the 13 Directors were
considered by the Board meeting
on March 7, 2007 as being
“independent of the company”
as defined by the criteria set out
in the Bouton Report. (“A Director
is independent when he has no
relationship of any kind with the
Company, its Group or its
Management which could
CORPORATE GOVERNANCE UNDER THE SIGN OF EFFECTIVENESS The Group culture of transparency and efficiency is naturally reflected at the highest levels of corporate governance. The smooth operation of the managing bodies is in fact essential to guarantee performance for shareholders.
Between January 1st and the end
of February 2008, the Board of
Directors has already met twice.
In 2007, the total directors’ fees
distributed amounted to
€658,500, down from €793,500
in 2006 (down 17%).
Gérard Mestrallet, as Chairman,
and Jean-Jacques Salane,
as an employee of the Group,
do not receive directors’ fees.
12MEETINGS OF THE BOARD OF DIRECTORS IN 2007
Presentation of the SUEZ 2007 results
RADD_SUEZ_10_23_GB_V8.indd 16 23/05/08 19:56:19
� GÉRARD MESTRALLET • 59 years old.
• Citizen of France.
• Chairman and Chief
Executive Offi cer.
• 54,652 SUEZ shares held.
� ALBERT FRÈRE*• 82 years old.
• Citizen of Belgium.
• Board Vice-President Chairman
and Managing Director,
Bruxelles Lambert Group.
• 2,000 SUEZ shares held.
� EDMOND ALPHANDÉRY(1)*• 64 years old.
• Citizen of France.
• Chairman of the Oversight
Committee, CNP Assurances.
• 2,223 SUEZ shares held.
• Member of the Audit Committee.
� RENÉ CARRON*• 65 years old.
• Citizen of France.
• Chairman of the
Board of Directors,
Crédit Agricole SA.
• 3,500 SUEZ shares held.
• Chairman of the
Appointments Committee.
• Member of the Committee for
Ethics, the Environment and
Sustainable Development.
� ÉTIENNE DAVIGNON*• 75 years old.
• Citizen of Belgium.
• Chairman of Recticel.
• 11,111 SUEZ shares held.
• Chairman of the Committee
for Ethics, the Environment
and Sustainable Development.
• Member of the
Compensation Committee.
� PAUL DESMARAIS JR.• 53 years old.
• Citizen of Canada.
• Chairman of the Board
and Co-Executive Offi cer,
Power Corporation of
Canada.
• 2,222 SUEZ shares held.
• Member of the Compensation
Committee.
� RICHARD GOBLET D’ALVIELLA(1)
• 59 years old.
• Citizen of Belgium.
• Managing Director, Sofi na.
• 2,000 SUEZ shares held.
• Member of the Audit
Committee.
� JACQUES LAGARDE(1) • 70 years old.
• Citizen of France
and the United States.
• Former Vice-President,
The Gillette Company.
• 7,000 SUEZ shares held.
• Chairman of the Audit
Committee.
� ANNE LAUVERGEON(1)
• 48 years old.
• Citizen of France.
• Chairwoman of the Executive
Committee, Areva.
• 3,390 SUEZ shares held.
• Member of the Committee
for Ethics, the Environment
and Sustainable Development.
• Member of the Appointments
Committee.
� JEAN PEYRELEVADE*• 68 years old.
• Citizen of France.
• Vice-President,
Leonardo France.
• 3,694 SUEZ shares held.
� THIERRY DE RUDDER*• 58 years old.
• Citizen of Belgium
and France.
• Managing Director,
Bruxelles Lambert Group.
• 2,222 SUEZ shares held.
� JEAN-JACQUES SALANE • 56 years old.
• Citizen of France.
• Chairman of the French
Oversight Committees,
The Spring Fund.
• 2,000 SUEZ shares held.
• Member of the Committee
for Ethics, the Environment
and Sustainable Development.
� LORD SIMON OF HIGHBURY(1)
• 68 years old.
• Citizen of the United
Kingdom.
• Former Minister of State.
• 2,000 SUEZ shares held.
• Chairman of the
Compensation Committee.
Secretary to the Board
of Directors:
PATRICK VAN DER BEKEN
(1) Independent director.*Director whose term is subject to renewal by the Shareholders’ Meeting of May 6, 2008.
At the end of the Shareholders’ Meeting of May 6, 2008, and subject to approval of the resolutions at the Meeting, the Board of Directors of SUEZ will consist of 13 Directors, including six French members, five non-French members, and two members with dual citizenship. At its meeting on March 7, 2007, the Board of Directors of SUEZ considered that five Directors were independent and that eight others were not independent based on the criteria defined by the Bouton Report.
MEMBERS OF THE BOARD OF DIRECTORS
17
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RADD_SUEZ_10_23_GB_V10.indd 17 28/05/08 9:43:39
18
���The Audit Committee
Three Directors all considered
“independent” and “financial
experts” sit on this committee
which is responsible for oversight
of the financial statements: Jacques
Lagarde, Chairman; Edmond
Alphandéry and Richard Goblet
d’Alviella. They carefully monitored
the valuation process used to
value the Group’s assets at the
end of 2007. They also receive
regular presentations on the
financial position and, more
specifically, cash flows, debt
status, changes in investments,
financial flexibility, updates
relating to the main legal disputes
still pending and key financial
management performance
indicators. Following the analysis
conducted in 2006 concerning
the proposed SUEZ - Gaz de France
merger, the Audit Committee
wanted, after the Boards of
Directors of the two groups
approved new strategies
for the project, to review a series
of issues before they were
presented to the Board.
The analysis focused particularly on:
– the terms of the merger
and the acceptance of those terms
by the market based on the
reactions received during road-
shows in fall 2007 and the change
in the respective stock prices for the
two Groups;
– the principles of governance, very
close to those adopted last year on
the basis of a memorandum of
understanding;
– the merger calendar;
– an analysis of the joint business
model, the outlook and the new risk
profile of the Group.
Concerning the listing of SUEZ
Environnement, the following issues
were also considered: the progress
of the process, the scope of
consolidation, the valuation of the
assets, the financing policy and the
governance rules. In 2007, the
Audit Committee met six times, with
an average attendance rate of 78%.
The Auditors attended four
meetings. Six are scheduled for
2008 and two have already been
held at the end of February 2008.
� The Committee for Ethics, the Environment and Sustainable Development Four Directors sit on this committee:
Étienne Davignon, Chairman;
René Carron; Anne Lauvergeon;
Jean-Jacques Salane.
This committee reviews the
ways and means to achieve
the Group’s objectives for
Sustainable Development.
Four meetings were held in
2007, with an average attendance
rate of 88%.
The Committee reviewed the
annual report from the Group’s
Ethics Officer concerning the
deployment of the new SUEZ
ethical procedures
(ethics training program,
implementation of control
and prevention procedures,
risk management policy).
It also requested reports from
the Department of Human
Resources on the Corporate
Social Responsibility
policy (Diversity, Workplace
Safety).
With regard to compliance
and environmental reporting,
the Directors received information
on the processes for processing
environmental data, the control
methods, and the outside
verification procedures.
� The Appointments Committee
Two Directors, René Carron,
Chairman, and Anne Lauvergeon,
submit to the Board their
recommendations on changes
within the Board of Directors
or Group Management.
Given the merger with Gaz
de France, no meeting
was held in 2007.
� The Compensation Committee
Three Directors, Lord Simon
of Highbury, Chairman
(considered “independent”), Étienne
Davignon and Paul Desmarais Jr.,
recommend compensation packages
to the Board both for Directors and
Executives on the Executive
Committee.
The Committee also recommended
for the Board’s decision the contents
and parameters of the 2007 stock
option plan and the definition of the
powers granted to Gérard Mestrallet,
Jean-Pierre Hansen and Gérard
Lamarche, along with the bonus
share allotment program. The
Compensation Committee met three
times in 2007, with an average
attendance rate of 89%.
To assist it in its work, the Board of Directors has established four Committees, with the mission to study specific issues in order to prepare for certain Board deliberations, and provide the Board with informed opinions and recommendations on decisions to be made.
COMMITTEES OF THE BOARD OF DIRECTORS
Jacques Lagarde
Étienne Davignon
René Carron
Lord Simon of Highbury
RADD_SUEZ_10_23_GB_V8.indd 18 23/05/08 19:56:51
Ethics is one of the founding values of the SUEZ Group. A specific organization formalizes and ensures respect for the principles defined by the Group. It is a pledge of good governance, and risk control is based on the organization and rigorous methods deployed throughout the Group.
ETHICS AND RISK MANAGEMENT
SUEZ was one of the first French
groups to develop a formal
ethics process. This policy is
designed to protect it against risks
which could adversely affect its
operations, its integrity or its image,
comply with ongoing changes in
increasingly stringent national and
international regulations, and meet
the demands of investors and
ratings agencies.
CREATION OF A COMPLIANCE DEPARTMENT The business ethics organizational
structure is the purview of the
Secretary General and Group Ethics
Officer, who reports to the
Committee for Ethics, the
Environment and Sustainable
Development. An Ethics department
is responsible for developing and
communicating rules and principles.
It manages a network of ethics
officers, which was expanded in
2007 (from 82 to 93 members),
present in the field in all major
operating units. In 2007, this
organization was complemented
with the creation of a Compliance
department, charged with the
implementation and effective control
of the rules and principles developed
by the Group. In particular, it must
detect and prevent any conduct that
may adversely affect the integrity of
SUEZ. A set of documents
formalizes the values and standards
that define the Group’s rules of
conduct in all circumstances. The
Group Ethics Charter, which was
revised and completed in 2006, has
been translated into 17 languages
and distributed to 75,000
employees. It complements other
key documents, including the
“Rules of Organization and Conduct
for Group Companies” and the
“Commercial Relations Guidelines”,
which sets out the guidelines for the
principal management acts of Group
companies.
2,400 ETHICS E-TRAINING SESSIONS An extranet ethics site has been set
up to provide, in several languages
(English, French, Dutch, Arabic,
Chinese, etc.) all the ethics
documents and decision-making
tools. More than 200 managers in
the Group received specific ethics
training in 2007 and more than
2,400 employees took a computer-
based training module (e-learning)
available in seven languages. In
2008, 7,000 people are expected to
take this module to accelerate
communication of a culture of ethics
based on clear principles throughout
the Group.
INTEGRATED RISK MANAGEMENT SUEZ has established an integrated risk management system (Enterprise Risk Management, ERM) based on tools and methods common to all the entities. Each management is coordinated by a Chief Risk Officer, reporting to the Group Chairman, who also directs Internal Audit and Insurance. He relies on a Group Risk Officer who directs a network of risk officers charged with deploying the ERM tools. A Risk Advisory Committee, composed of this network and four staff directors (Audit, Insurance, Internal Control, Management Control) organize the sharing of best practices and the development of common tools. The Group’s risks are mapped at the international level, classified by category (strategic, financial, operational, random), ranked in order of importance and frequency and, to the extent possible, quantified in order to set up adapted prevention plans. Integrated risk management is regularly evaluated by the transversal internal audit teams, and the internal control is designed to provide guarantees on the quality of risk prevention and control within the Group, as well as on the reliability of the SUEZ accounting and financial information, its compliance with the laws and regulations and its operational effectiveness. The Group’s internal control procedures comply with an international model: COSO (Committee of Sponsoring Organizations of the Treadway Commission). Known as CODIS (“Control and Disclosure”), this program has strengthened internal control in all areas and improved the quality of financial reporting. Common to all entities, it contributes to the development of a culture of good governance.
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20
GÉRARD MESTRALLET
CHAIRMAN AND CHIEF EXECUTIVE
OFFICER
JEAN-PIERRE HANSEN
CHIEF OPERATIONS OFFICER,
VICE-CHAIRMAN OF THE
EXECUTIVE COMMITTEE,
MANAGER OF SUEZ ENERGY
EUROPE
GÉRARD LAMARCHE
CHIEF FINANCIAL OFFICER
DIRK BEEUWSAERT
EXECUTIVE VICE-PRESIDENT
IN CHARGE OF SUEZ ENERGY
INTERNATIONAL
JEAN-LOUIS CHAUSSADE
EXECUTIVE VICE-PRESIDENT
IN CHARGE OF SUEZ
ENVIRONMENT
JÉRÔME TOLOT
EXECUTIVE VICE-PRESIDENT
IN CHARGE OF SUEZ ENERGY
SERVICES
MEMBERS OF THE CENTRAL MANAGEMENT COMMITTEE*
The Central Management Committee is comprised of the members of the Executive Committee and the central-department heads:
HENRY MASSON: Group Senior Vice-President for Risk, Organization and Central Services (attends the Executive Committee)
MARC PANNIER: Group Senior Vice-President in charge of Performance Management and Organization
*at December 31, 2007
MEMBERS OF THE EXECUTIVE COMMITTEE*
RADD_SUEZ_10_23_GB_V8.indd 20 23/05/08 19:57:07
21
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The Executive Committee examines questions of Group strategy, development,
and organization at the request of the Chairman and CEO. Its 10 members include
functional managers from Headquarters and operational managers from the
four business lines. Questions that have to be submitted for the approval of
the Chairman and CEO or Board of Directors are also submitted to the Central
Management Committee for approval.
ROBERT-OLIVIER LEYSSENS: Group Senior Vice-President in charge of Corporate Finance, Tax and Treasury
CHRISTELLE MARTIN: Group Senior Vice-President in charge of Strategic Planning, Control and Accounting
PAUL RORIVE: Group Senior Vice-President in charge of the Monitoring and Development of Nuclear Activities
XAVIER VOTRON: Group Senior Vice-President in charge of the Promotion of Technological Innovation and Renewable Energy
VALÉRIE BERNIS
EXECUTIVE VICE-PRESIDENT
IN CHARGE OF COMMUNICATIONS
AND SUSTAINABLE DEVELOPMENT
EMMANUEL VAN INNIS
EXECUTIVE VICE-PRESIDENT
IN CHARGE OF GROUP
HUMAN RESOURCES
YVES DE GAULLE
GENERAL SECRETARY
ALAIN CHAIGNEAU
EXECUTIVE VICE-PRESIDENT
IN CHARGE OF STRATEGY
RADD_SUEZ_10_23_GB_V8.indd 21 23/05/08 19:57:24
22
participation in the various
events offered and answers to the
questions asked all go through
these communication tools.
The Group attaches great
importance to the quality of
its relations with its individual
shareholders. The percentage
of capital held by individual
shareholders is 13.5%, including
3% held by employee shareholders.
A RELATIONSHIP OF TRUST WITH INDIVIDUAL SHAREHOLDERS…To communicate more effectively
with all its shareholders, SUEZ
was one of the very first groups to
establish a club for shareholders,
which can be joined whatever
the number of shares held. The
purpose was to ensure ongoing
dialogue with all shareholders and
keep them informed of Group news
and businesses.
Club members receive regular
communication through the
Shareholders’ Letters published
five times a year; they can also
obtain information at shareholders’
meetings, through site visits (five
in 2007) or by looking for the
SUEZ Shareholders Space at the
Actionaria trade show in Paris,
The business culture of SUEZ is
based on a foundation of values,
including professionalism, which is
a pledge of performance, but also
a commitment to openness and
transparency in its relations with
the shareholders.
SUEZ owes all its shareholders
and investors identical, regular
and available information. The
availability of the departments
which are devoted to dialogue with
shareholders is possible because
of the interactive communication
tools that have been established:
toll-free numbers, and the SUEZ
website “Shareholders Space”.
Memberships in the Club or
Transparency and dialogue are the keystones to the SUEZ shareholder culture. The department responsible for relations with individual and institutional shareholders has carried this requirement to the highest level of best practices in the market.
SHAREHOLDER AND INVESTORS RELATIONS
0.460.60
0.540.66 0.71 0.71 0.71
0.80
1.00
1.20
1.36
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
The very strong growth in the dividend since 2004 (+70%) refl ects the Group’s dynamic compensation policy for shareholders, consistent with the trend in results, and offering a yield competitive with the entire sector.
+13.3% growth in 2007
Institutional investors (stable shareholders)Individuals and employee shareholdersOther
Treasury stock
78.1%13.5%
6.1%2.3%
BREAKDOWN OF CAPITAL AT DECEMBER 31, 2007
DIVIDEND GROWTHin euros per share
RADD_SUEZ_10_23_GB_V8.indd 22 23/05/08 19:57:47
where the Group is present every
year in November.
A number of cultural or sports
events are offered to shareholders
both in France (Musée Jacquemart-
André, exhibits at the Guimet
Museum, Institut du Monde Arabe,
soccer, etc.) and in Belgium with
the recent Magritte exhibit.
Five conferences in 2007
presented the technologies of the
Group. SUEZ also developed useful
tools for a good understanding of
the issues affecting shareholders
through a training program to
discover or learn more about the
operation of the financial markets,
reading financial statements, taxes,
and more.
For Belgian shareholders, these
sessions are organized through
the Shareholders Business School
which offers a diploma and courses
over time.
Two toll-free numbers:
– 0800 177 177 for French
shareholders;
– 0800 25 125 for Belgian
shareholders, available only from
their respective countries, provide
contact with dedicated services, all
year long, Monday through Friday,
from 9:00 a.m. to 1:00 p.m. and
from 2:00 to 6:00 p.m.
Finally, so that all shareholders
can follow the Shareholders’
Meeting every year, this Meeting is
retransmitted live in its entirety on
the Group’s website, and is then
rebroadcast for three months.
… AND WITH THE FINANCIAL COMMUNITY SUEZ organizes information
meetings for professionals and
financial journalists when it
publishes its annual and semi-
annual results. At the same
time, the Department of Investor
Relations is continuously in
contact with financial analysts and
international institutional investors.
Road shows (conferences with
Group executives) are organized in
Paris, London, Brussels, Frankfurt,
New York, etc. They give investors
more information about SUEZ.
Transparency, completeness,
reactivity are the principles that
guide this information. In 2007,
special effort was made to explain
the steps involved in the merger
process, as well as the acceleration
of the industrial development and
the drivers of growth and improved
profitability.
The mission of the Department
of Financial Communication is
also to analyze changes in the
perception of the Group by analysts
and investors, and the comments
and expectations expressed by
individual shareholders. In addition
to this daily watch, weekly reports
and analyses of the sector or
comparable companies completed
for the executives, these activities
are discussed in a report and a
file is submitted at each Board
meeting.
90
100
110
120
01.2
007
02.2
007
03.2
007
04.2
007
05.2
007
06.2
007
07.2
007
08.2
007
09.2
007
10.2
007
11.2
007
12.2
007
CAC 40+1.30%
DJ EUROPE STOXXUTILITIES+17.95%
SUEZ +18.70%
Since early in 2007, the SUEZ share has widely outperformed the CAC 40 index, and remained ahead of the benchmark sector index (DJ Europe Stoxx Utilities). This performance was generated by the characteristics of the SUEZ business model, both defensive and growth. Investors are attracted by the energy and environment sectors and by the quality of the specifi c positioning of SUEZ, which will be strengthened with the merger.
SUEZ SHARE TREND IN 2007(base 100 at January 1, 2007)
CONTACTSDepartment of Financial Communication Arnaud Erbin: [email protected]
Tel. +33 (0)1 40 06 66 29
Investor Relations Sophie Charrier: [email protected]
Loïc de Fontaubert: [email protected]
Éléonore de Larboust: [email protected]
Shareholder Relations � IN FRANCE Rita Rio: [email protected]
Toll-free number: 0 800 177 177 (from France only)
� IN BELGIUM Guy Dellicour: [email protected]
Toll-free number: 0 800 25 125 (from Belgium only)
www.suez.comInvestors and shareholders will fi nd two dedicated sections
under the “Finance” tab on the SUEZ website.
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PROXIMITY
PROFESSIONALISM
PROFESIONALIS
SATISFACTION
SATISFACTION
VALUE CREATIONTNERSHIP
SERVICES
SERVICES
PROXIMIT
VALUE CREATION
PARTNERSHIP
PROXIMITYSATISFACTION
SERVICESVALUE CREATION
PARTNERSHIP
RADD_SUEZ_24-65_GB_V7.indd Sec1:24 26/05/08 14:39:04
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OUR BUSINESSES AT THE HEART OF THE CHALLENGES OF THE 21st CENTURY
26 • ENERGY, A SUSTAINABLE RESPONSE TO RAPIDLY GROWING NEEDS
28 • ELECTRICITY An international player 36 • NATURAL GAS From one side of the Atlantic to the other
40 • ENERGY SERVICES The European leader in multi-technology services
46 • ENVIRONMENT: A WORLD LEADER IN WATER AND WASTE SERVICES
48 • WATER SERVICES Complete mastery of the water cycle
54 • WASTE SERVICES Waste: from collection to recovery
60 • RESEARCH & INNOVATION, INNOVATION FOR SUSTAINABILITY
SUEZ is developing leading global positions in two high-growth sectors: energy and the environment. Ranked among the top 10 power companies in the world, the Group is also the Europeanleader in energy, the sixth largest gas operator in Europe and a leader in the water andwaste services sectors.
RADD_SUEZ_24-65_GB_V7.indd Sec1:25 26/05/08 14:39:06
26
by giving priority to the best
performing energy depending
on circumstances.
� Natural gas represents 46.6%
of the installed capacity. The gas
produces the least amount of fossil
energy and there are still abundant
reserves. Latest-generation
combined-cycle gas turbines
(CCGT) have excellent yields of up
to 60%. The gas plants, which are
particularly flexible and quick to
implement, help provide a rapid
response to consumption needs.
� Renewable energy, which is
carbon neutral (no CO2 emissions)
represent nearly one-fourth of the
installed capacity (20.8%):
– hydraulic power, with
18.1% of the energy mix, is
the main renewal energy of the
Group, which has a large capacity
in France and Latin America,
particularly Brazil;
– biomass (wood, wood waste,
vegetable oils, etc.) is expanding
significantly;
– wind energy is also growing
substantially. In 2007, SUEZ
expanded its capacity through the
Directly correlated with
development and economic
growth, global energy consumption
is rising steadily: by 2030, it could
increase by 50%. Countries like
China or India will have doubled
their consumption in 25 years.
This soaring demand, combined
with the depletion of fossil fuel
resources, is the source of strong
tensions in the global markets.
All around the world, energy
prices are rising, affected by the
increase in prices for fossil fuels
(oil, natural gas, coal, etc.), the
environmental challenges that
generate new constraints, rising
costs for power plant construction,
an imbalance between supply and
demand, etc.
SUSTAINABLE ENERGY MANAGEMENT Faced with these tensions, SUEZ,
like the world’s major utilities,
faces a triple challenge:
– guarantee the energy supply in all circumstances, by securing
supplies (a major challenge for
regions like Europe, that are
practically without fossil energy
resources) and by building new
production capacity where
demand is growing rapidly;
– at prices that are as controlled and accessible as possible given
the increase in the price of the
resources;
– while controlling the environmental effects, and particularly greenhouse
gas emissions.
A DIVERSIFIED AND COMPETITIVE ENERGY MIX To meet these challenges,
SUEZ is giving priority to the
most efficient technologies
and is trying to limit the use
of fossil fuels. Today, the
Group has one of the most
balanced energy mixes in the
market, but also one of the
most respectful of the
environment: 37% of its production
units do not emit CO2 and 46.6%
have low emissions levels.
This diversity also gives it a
competitive advantage by
reducing its exposure to one
type of energy and allowing
it to adapt rapidly to external
constraints (prices of raw
materials, regulations, etc.),
86,500EMPLOYEES IN ENERGY BUSINESSES WORLDWIDE
€35.45BILLION IN REVENUES IN ENERGY BUSINESSES IN 2007
ENERGY A SUSTAINABLE RESPONSE TO RAPIDLY GROWING NEEDS
Present in electricity, natural gas and services, SUEZ is one of the leading world energy players. As a major operator in Europe, the Group also holds strategic positions in North and South America, Asia and the Middle East.
RADD_SUEZ_24-65_GB_V7.indd Sec1:26 26/05/08 14:39:06
4.8% Other
20.8% Renewable energy
11.4% Nuclear
Natural gas
46.6% with low CO2 emissions
37% with no CO2 emissions
8.4% Fuel
8% Coal
Power production plant at Al Ezzel (Bahrain)
acquisition of Compagnie du Vent
in France, and Ventus
in Canada;
– SUEZ is also developing
innovative technologies in
geothermy and the recovery of
waste (incineration, biogas, etc.)
to produce energy.
� Nuclear represents
11.4% of the Group’s
capacity, which operates seven
reactors in Belgium and has a
BREAKDOWN OF INSTALLED CAPACITY BY TYPE OF FUEL AT THE END OF 2007
large capacity in French reactors.
As a technology that does not
emit CO2, nuclear is a perfect
response to the basic needs
to produce reliable energy at
competitive prices and is seeing
new world interest in providing
an effective response to growing
demand. SUEZ plans to develop
its nuclear holdings, first in
Europe and then, in the longer
term, in North America or the
Middle East.
� Traditional thermal energy (fuel oil and coal) represents
16% of the energy mix. These two
fossil fuels have made significant
technical progress (increase in
yields, reduction in emissions)
but still produce the most CO2
emissions. They are, however, still
useful to effectively meet “basic
needs” in certain regions.
SUEZ is participating in a major
R&D effort to continue to reduce
their environmental impact.
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The installed capacity correspond to 100% of the power of the plants included in the scope of consolidation.
Between 1980 and 2007, SUEZ reduced its CO2 emissions per kilowatt-hours produced in Europe by 50%
“
”
RADD_SUEZ_24-65_GB_V7.indd Sec1:27 26/05/08 14:39:07
28
ELECTRICITY
10 thLARGEST WORLD PRODUCER
64,206LARGEST EUROPEAN PRODUCER
MW IN PRODUCTION CAPACITY
5 th
RADD_SUEZ_24-65_GB_V7.indd Sec1:28 26/05/08 14:39:25
SUEZ is one of the leading
European energy companies,
but it is also a top-tier
international player: the world’s
10th largest power producer.
47% of its production capacity
are located outside Europe,
primarily in North America,
Latin America, Asia and
the Middle East.
In Europe, wholly owned
subsidiary Electrabel is the leading
electric company in the Benelux
countries, the second largest in
France and holds a large capacity
in the main markets of the Union:
Italy, Iberian peninsula and
Germany. The company is also
expanding to the East, particularly
in Poland and Hungary. Its
plant holdings, one of the most
diversified and balanced on
the continent, includes nuclear
capacity (in Belgium and France),
latest generation gas plants,
co-generation, hydraulic,
biomass and traditional thermal
plants. In 2007, a study involving
22 leading European electricity
producers ranked Electrabel
eighth in CO2 emissions.
Outside Europe, SUEZ is active
in 18 countries, where it employs
5,000 people in electricity and
operates facilities representing
nearly 30,000 MW (essentially
hydraulic, natural gas and
traditional thermal facilities).
Through new projects,
it contributes to meeting the
sharp increase in demand from
the emerging economies
(Brazil, Chile, Asia, etc.)
223,317 GWheq PRODUCED IN 2007Benefiting from continued strong
demand and the launch of new
capacity, the Group’s energy
production rose 15% in 2007
to 223,317 GWheq (gigawatthour
equivalent). In a global market
that remains tight, characterized
in particular by the surge in the
prices for raw materials, energy
prices continued to trend upward,
both in Europe and internationally.
In Europe, business remains very
dynamic, supported by demand,
and the Union’s objectives
for reducing carbon – which
favours the many projects for
renewable technologies or
technologies emitting fewer
greenhouse gases – and the
full deregulation of the European
energy market since July 1, 2007.
Gas plants are expanding
worldwide, particularly in Europe.
In order to guarantee their supply,
utilities are working to develop
their own gas capacity.
This gas-electricity convergence
is intensified by the full
deregulation of the gas and
electricity markets since the
summer of 2007. It confirms the
strategy of SUEZ which, by playing
a major role in natural-gas supplies,
particularly LNG, is completely
securing the supply for its facilities,
in which 47% of the capacity
uses gas.
A thousand billion “green” watts in Poland.Three years after the transition to co-combustion, the Polianec coal-biomass plant in Poland exceeded one terawatt/hour (one thousand billion watts) of energy without carbon.
HIGHLIGHT
The fifth largest power producer in Europe, SUEZ also has a significant production capacity in Latin America, North America, Asia and the Middle East. In a high-demand global market, the Group will expand its production capacity by 25% over the next four years, focusing on the most effective solutions for the environment.
AN INTERNATIONAL PLAYER
Objective: 75,000 MW of power capacityin 2012“
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Power production and distributionGlow Energy (Thailand)
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30
HIGHLIGHT
INVEST €8 TO 9.5 BILLION IN ELECTRICITY IN TWO YEARSTo meet growing demand,
the Group has launched a major
investment program in both
Europe and internationally. At
the end of 2007, production
capacity totaled 64,206 MW
(installed or under construction).
More than 10,000 MW are still in
the planning stage and should raise
the Group’s capacity to 75,000 MW
in 2012, an increase of 50% over
2006. 41% of these projects use
gas, 35% traditional thermal and
20% renewable energy. In 2007,
SUEZ expanded its production
capacity by 1,200 MW in Italy
(three new gas-steam turbines),
launched construction of three
plants in the Netherlands (gas-
steam and coal-biomass), and two
in Germany (coal, 850 MW)
For each type of energy, the Group
gives priority to the most efficient
with the least amount of emissions.
Equipped with facilities to
reduce discharges (denitrification,
desulfuration), the future
coal plants will achieve
a yield of 46.5%.
Five new plants for Europe.Electrabel is launching the construction of five new power plants, expected to come on stream between 2009 and 2012: two gas-steam turbines and one co-combustion (coal-biomass) in the Netherlands and two coal plants in Germany. An investment of €3.8 billion.
Tension over raw materials and energy are particularly high in Latin America, where they have generated several severe crises. SUEZ is the leading power supplier in northern Chile and provides about 50% of the local production. Until the end of 2005, power production relied heavily on gas, all of it supplied by neighboring Argentina. Argentina, which was also facing a serious energy crisis, stopped its supplies, plunging its neighbor into serious shortage and massive outages. To deal with the crisis, SUEZ assisted the Chilean authorities in implementing a true emergency plan. In the first phase, the gas turbines were reconditioned to run on fuel oil, while additional diesel capacity was mobilized to supply industry. In agreement with the Chilean authorities, SUEZ then launched construction of one of the first LNG projects in Latin America in Mejillones. With a capacity of 5.5 million m3 per day (the equivalent of electrical production of 1,100MW), the terminal, built at an accelerated speed, should receive its first gas at the end of 2009. This natural gas will supply the gas turbines and major mining customers. At the same time, SUEZ launched construction of two coal and biomass plants, expected to come on line in 2010, which will supply new mining projects. As a result, the “rescue plan” will have secured Chilean gas supplies using LNG and strengthened its energy mix (gas, fuel oil, coal and hydraulic), which should reduce the risks of interruptions in the power supply.
SUEZ HELPS CHILE TO OVERCOME A SERIOUS ENERGY CRISIS
FOCUS
A HIGH-YIELD COAL PLANT IN THAILAND In 2007, Glow Energy, the first independent producer in Thailand and a SUEZ subsidiary, won a bid for the construction of a 660 MW coal plant in the industrial zone of Map Ta Phut. The facility, which will comply with the most stringent environmental standards and will comply with European regulations, should be one of the cleanest coal plants in the world. Its energy yield will clearly exceed 40%, above the 30 to 40% for traditional coal plants. The new plant, by diversifying the supply sources of the country, which is currently very dependent on gas and oil, will secure and better control electricity prices in Thailand. The project will strengthen the capacity of Glow Energy, which already operates 1,710 MW on the basis of gas and cogeneration in Thailand.
RADD_SUEZ_24-65_GB_V7.indd Sec1:30 26/05/08 14:39:44
Power plant under construction in Antofagasta (Chile)
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622580 568 532
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Carbon factor Europe 2008: 372 kg of CO2/MWH
ELECTRABEL IS ONE OF EUROPE’S MOST EFFICIENT ELECTRICITY PRODUCERS IN TERMS OF THE CARBON FACTOR
Between 1990 and 2007, the
average yield of Electrabel’s
fossil burning plants rose from
35% to 44%: they now consume
20% less energy to produce one
kilowatt-hour. Outside Europe,
SUEZ is building a total capacity
of 6,500 MW in Latin America,
Asia and the Middle East,
principally in the latter. In 2007,
the Group brought on stream two
new power plants in Oman and
Bahrain, while continuing to build
the largest power and desalination
plant in the world in Saudi Arabia.
Similar projects are underway in
Oman and Abu Dhabi.
HIGH PERFORMANCE NUCLEAR CAPACITYSUEZ is one of the largest
nuclear plant operators in Europe.
Its Electrabel subsidiary, with
more than 30 years’ experience,
operates seven reactors in Belgium
(5,800 MW) and has capacity
of 1,100 MW at its Chooz and
Tricastin plants in France.
Nuclear power plants, which
represent 11% of SUEZ’s total
capacity, are designed to operate
on an ongoing basis with controlled
costs and in 2007 accounted for
take place every 18 months
instead of the conventional
12 months), a technique largely
developed by Electrabel, which
considerably increases power plant
productivity. The Belgian nuclear
power capacity is also one of the
safest as confirmed in a report by
the International Atomic Energy
Agency (IAEA) conducted in May
2007 at Tihange. Armed with
this expertise, SUEZ plans to be
involved in renewing the nuclear
power industry worldwide.
20.5% of the electricity produced
by the Group.
MORE THAN 90% AVAILABILITYWith an availability rate of over
90%, Electrabel’s reactors
are among the top performers
in the world. Last year, the
Tihange 2 power plant achieved
an extraordinary availability rate
of close to 100%. These levels of
availability are made possible by
raising the fuel cycle to 18 months
(shutdowns for refueling
In 2007, a study of 22 electricity producers in Europe conducted by PriceWaterhouseCoopers ranked SUEZ among eight electricity producers that emit the least amount of carbon per megawatt-hour of output.
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32
Dallas goes green. The city of Dallas, Texas has selected SUEZ Energy Resources N.A. to supply 90% of its energy needs in 2008. The deciding factor: half this power will be “green” and guaranteed to be CO2 free.
HIGHLIGHT
of high production capacity
(1,600 MW for new generation
reactors), without adversely
affecting a country’s carbon
balance. SUEZ is a contender
for several new reactor projects
in Europe and elsewhere.
WORLD LEADER IN RENEWABLE ENERGYAs the core business of energy
and the environment converge,
renewable energy represent a
major focus of the SUEZ
sustainable development policy.
Thirty seven percent of the Group’s
electricity output does not emit
any CO2 due to nuclear power
and renewable resources.
In late 2007, the Group’s capacity
of renewable energy exceeded
12,000 MW in addition
to 3,000 MW under construction
or in the planning stages.
In Europe and internationally,
projects under construction
should allow renewable energy
to quickly surpass the 21%
of total capacity recorded
by SUEZ at the end of 2007.
The capacity is very diversified
and SUEZ is developing across
all its renewable technologies from
hydraulic and wind energy,
to biomass and solar power,
waste incineration and biogas.
In Europe, the market is
very dynamic, buoyed by EU
regulations and strong demand
from local communities,
industries, and even consumers.
SUEZ now has more than
6,000 megawatts of capacity in
that continent and is planning
to build close to 2,000 MW
more. However, to avoid style
effect distortions, the Group
is investing only in projects
that are economically viable
and proven: every new
investment must meet
its usual profitability criteria.
After a relatively stagnant
period, nuclear energy is now
on the rebound. Propelled
simultaneously by an increase in
demand, declining resources and
climate conditions, it appears
to be one of the most obvious
solutions for resolving the energy
crisis. Nuclear energy can
meet a country’s “basic” energy
consumption needs on a massive
scale at controlled cost levels
(prices for uranium, which follow
the general trend of increases in
raw materials, accounts for only a
very small portion of the nuclear
kilowatt-hour cost of nuclear
power). Nuclear power does not
emit CO2 and enables deployment
NO.3BIOMASS OPERATOR IN THE UNITED STATES
HYDRO POWER: 80% OF THE GROUP’S RENEWABLE ENERGYHydro power, a major source
of energy around the world,
represents 10% of the electricity
produced in the European Union.
Aside from its environmental
qualities, it is a relatively
inexpensive resource whose price
does not fluctuate. It can be used
at any time and is also the only
renewable energy that can be
stored. It therefore plays a key
role in the energy mix.
Eighty percent of the renewable
energy produced by SUEZ come
from hydro power. In Brazil,
the Group operates six dams
(5,760 MW) and is building two
more (1,327 MW). The 68 hydro
power plants the company
operates on the Rhône River
(via CNR) and in the Pyrenees
(via SHEM) represent a capacity
of 3,710 MW and ranks the
company second among French
electricity producers. Numerous
projects are underway or being
studied in Latin America (Brazil,
Chile, and Peru), as well as in
Asia, and France, where thanks
to the renovation of facilities,
SUEZ is looking to develop its
700 MW capacity.
NO.1 BIOMASS OPERATOR IN EUROPEWith seven biomass power
plants in Belgium, the
Netherlands and Poland,
SUEZ is the No. 1 operator of this
type of energy in Europe.
It is also one of the world’s
leading experts in this area,
most notably operating seven
plants in the United States and
one in Brazil, as well as smaller
ones in places such as Polynesia.
Biomass energy, along with
hydraulic and geothermal
energy, is a renewable energy that
HYDROELECTRIC 10,031 MW Europe:
Belgium, France,
Italy, Portugal
International:
Brazil, Chile,
United States, Peru, Laos
WIND AND SOLAR 833 MW Europe:
Belgium, France,
Italy, Portugal
International:
Canada
BIOMASS 627 MW Europe:
Germany, Belgium,
France, Netherlands,
Poland
International:
Brazil, United States
INCINERATION 281 MW
BIOGAS 165 MW
RENEWABLE CAPACITY LOCATIONENERGY
SUEZ CAPACITY OF RENEWABLE ENERGY
The installed capacity represents 100% of plant-generated power in consolidated terms.
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Doel nuclear power plant (Belgium)
After years of relative inactivity, nuclear energy projects are starting up once again in Europe.Finland was the first to announce construction of an EPR, a 1,600 MW new generation reactor. France will also build an EPR reactor in Flamanville. Others projects should materialize and SUEZ has clearly signaled its intention to participate in them. Several EPR projects are currently being studied in the United Kingdom, France and even in the United States. But as these are long-term undertakings, decisions to move ahead are still a few years away. In Central Europe, nuclear energy should also make it possible for new European Union members to meet the energy needs of their fast-growing economies. In Romania, SUEZ, through its subsidiary Electrabel, is actively involved in a medium-power nuclear reactor project (700 MW using Canadian technology) that has brought together seven European partners including RWE (Germany), Iberdrola (Spain) and Enel (Italy). The Group is also competing for another similar reactor in Romania as well as for a VVER reactor project that makes use of Russian technology (pressurized water comparable to Western technology) – which is currently under study in Bulgaria. In the long term, SUEZ is also interested in projects in countries where nuclear energy is emerging as an energy solution for the future. In early 2008, the Group joined forces with Total and Areva for future development of two EPR reactors associated with two water desalination plants in the United Arab Emirates.
NUCLEAR ENERGY MAKES A COMEBACK
FOCUS
can be used in primary
energy production. In Europe,
SUEZ uses it primarily
for the purposes of co-combustion
in coal-fired power plants, in
order to reduce CO2 emissions.
In 2007, the Group began
construction on this kind of
power plant in the Netherlands.
Along with conventional biomass
resources such as wood and wood
waste, sawdust and pallets, SUEZ
has developed unique expertise
for converting new resources such
as olive pits and pulp, vegetable
oils, spent coffee grounds, sludge,
rice husks, sugar cane, cassava,
cotton, etc., and is also continuing
research to improve burning
techniques.
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New horizons. In 2007, SUEZ positioned itself for the first time in Panama where it plans to develop new electricity capacity and the Philippines where it acquired a major coal-fired power plant.
HIGHLIGHT
MAJOR ADVANCES IN WIND ENERGY Wind power, a decentralized
and intermittent form of energy
(on average, land-based wind
plants operate only 20% to 25%
of the time in Europe but up to
40% in windy areas of Canada),
has increased dramatically in the
last three years, due to technical
improvements as well as subsidies
and support systems particularly
in the European Union. In 2007,
SUEZ made two major
acquisitions. The first was the
fast-growing Ventus Energy in
Canada with a portfolio of 29 MW
of electricity generation and more
than 2,000 MW in the
development stage, including
350 MW in short term projects.
The company also has major
projects in the United States
where the federal government
Solar panels in Ghent (Belgium)
did not sign the Kyoto Protocol
but many individual states are
developing their own environmental
protection policies and requesting
“carbon-less” energy. Ventus
therefore gives SUEZ a new point
of entry into an area of the U.S.
market with strong development
appeal.
In France, the Group’s second
acquisition – of La Compagnie du
Vent – propels it among the ranks
of top wind energy operators. It
represents 96 MW of electricity
generation to be added to the
34 MW already produced by the
Group, which has major short-term
objectives with the development
of a few hundred additional
megawatts by 2010. SUEZ is also
planning to further develop its
existing wind capacity in Portugal
(585 MW), Italy and the
Netherlands.
EXPLORING THE FULL RANGE OF “RENEWABLE ENERGY”SUEZ has also developed
remarkable expertise in resource
recovery using waste incineration
(with a capacity of 440 MWe) and
biogas from fermented waste
(150 MWe). Although solar energy
is one of the renewable sources of
energy with the greatest potential,
its development has been stymied
by the cost of yet-to-mature
technologies. However, estimates
show that the amount of solar
energy received by the Earth in
one hour would be enough to meet
the needs of all the economies
of the world for a full year…
To get a head start on this market,
SUEZ has acquired two companies
which develop and manufacture
solar energy collectors, so it may
offer the clients, communities and
corporate clients that it serves with
a comprehensive offering (design,
installation and management
of solar facilities). It signed its
first solar contract with Honda in
Belgium to install 6,500 square
meters of collectors at its plant.
To participate in efforts to develop
this technology, SUEZ also began
construction on the largest solar
power plant in Europe in early
2008, located at an altitude
of 1,000 meters near the town
of Lubéron. This region enjoys
a high rate of sunlight all year
long and the solar captors to be
installed over an area of more than
200 hectares could produce up
to 50 MW at full capacity – the
equivalent of 20 wind turbines. In
the much longer term, the Group
is active in R&D programs that
are exploring ways to develop new
sources of renewable energy. For
example, off the coast of Portugal,
it has been involved
in experiments using sea swells
to produce power.
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In 2007, SUEZ acquired Ventus Energy in Canada and La Compagnie du Vent in France“
”
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NATURAL GAS6 thGAS OPERATOR IN EUROPE
2 ndIMPORTER OF LNG IN NORTH AMERICA
669,000M3 OF LNG TRANSPORTATION CAPACITY
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The Group is the number one
gas supplier in Belgium through
Distrigas* and Electrabel. It
also manages the Belgian gas
transportation network through
Fluxys, an independent operator,
which makes it network available
to all gas players in Belgium. In
2007, Distrigas sold 177 TWh
of natural gas, 80% in Belgium
but also in the Netherlands
and Germany where the company
continues to develop. It also
does business in France,
Spain and the United Kingdom.
35% OF LNG IMPORTS IN NORTH AMERICASUEZ is one of the world’s
key players in the fast-developing
LNG gas market. The Group
controls 35% of the LNG trade
in North America and 10% in
Europe. It is the only operator
with such a strong presence
on two major markets and that
operates regasification facilities
on both sides of the Atlantic: in
Boston, in the United States, and
in Zeebrugge, in Europe. Due to
major technological innovations
that enabled the cost of LNG
tankers and liquefaction plants to
decline sharply, LNG is currently
experiencing robust growth. Since
2001, world consumption of
LNG has been rising at a rate of
roughly 7% per year – compared
to 2% for gas, constrained as
it is by transportation capacity.
Free of the heavy restrictions and
exorbitant costs associated with
pipelines, LNG has enabled the
gas industry, which, until recently
was very regional, to go global, and
due to LNG’s flexibility, Africa and
the Middle East have also started
to supply gas to Europe (Europe
used to consume only Russian,
Norwegian or Dutch gas, while
Japan turned to Australian
or Asian sources).
Development in Germany. In continuing its development in Germany, which started in 2006, Distrigas signed a new gas supply contract in 2007 with the distributor for the Aachen region.
HIGHLIGHT
The Everett LNG terminal near Boston (United States)
Natural gas is the number one energy used by SUEZ in the production of electricity and accounts for 47% of its capacity. SUEZ is actively involved in the sale and trading of gas, transportation of gas and LNG, as well as the storage, distribution, design, construction and operation of gas infrastructure throughout the world.
FROM ONE SIDE OF THE ATLANTIC TO THE OTHER
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* In compliance with commitments to the European Commission as part of the SUEZ-Gaz de France merger, SUEZ plans to sell its equity stake in Distrigas.
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OFFSHORE LNG: AN INNOVATIVE SOLUTION IN BOSTON Demand for gas in the Northeast of the United States, spurred by electricity producers, should rise at an annual rate of between 1% and 2% for the next 20 years. Since current capacity is saturated, the region may experience a 14 million m³ gas shortfall as early as 2010. SUEZ already operates a major LNG terminal in Boston and will build a new one to supply up to 21.2 million m³ of gas per day. Neptune will become one of the largest offshore LNG terminals in the world. Ships used to carry the gas will be designed to transport and regasify the LNG, which will then be offloaded via a buoy system linked to an underwater pipeline located sixteen kilometers off the Boston coast. The benefits here are that the facilities will not be visible from the densely populated, already equipment-saturated shoreline, safety will be enhanced and unloading operations for the tankers will be easier. This project, which was under study for several years and will be key to ensuring a very secure supply to the region, was approved by the U.S. authorities in 2007.
DOUBLING LNG CAPACITY AT ZEEBRUGGE On September 12, 2007, Distrigas received its one thousandth shipment of LNG in Zeebrugge. In 20 years, the methane tanker terminal operated by Fluxys received and injected more than 70 billion m³ of natural gas into the network. Extension work will double capacity to 9 billion m³ of natural gas per year as early as 2008. Adding more capacity by 2015-2016 is currently being studied.
HIGHLIGHT
Capacity at the Fos Cavaou LNG terminal.Distrigas and three energy companies win a bid for access to capacity at the new Fos Cavaou methane tanker terminal near Marseille, operated by Gaz de France.
As a result, in under five years,
more than 20 LNG-terminal
projects were proposed in
Europe and half should actually
materialize. SUEZ is developing
major projects in this fast-growing
market: the Group will build
an innovative offshore terminal
near Boston, while a second
similar one is being planned for
Florida. A third terminal is also
under development in northern
Chile while the capacity of the
With the development of LNG, the gas market is now going global
“”
Zeebrugge terminal will be doubled
to 9 billion m3 by 2009. To
secure its supplies, the Group has
diversified suppliers. In 2007, its
Distrigas subsidiary received its
first shipment of Qatari gas as
part of an annual supply contract
for 2.75 billion m3 over a period
of 20 years.
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ENERGY SERVICES
No.1IN MULTITECHNICAL SERVICES IN EUROPE
67,400PEOPLE IN 30 COUNTRIES
€11.3 BILLIONIN SALES
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SUEZ Energy Services offers
manufacturers, tertiary sector
companies and local governments’
comprehensive technical
solutions ranging from the design,
construction and maintenance
of equipment to management
of energy and utilities (facilities
management). This global,
multitechnical offering meets the
demand of companies for having
a single key contact that is able
to manage a range of services
so they may focus on their core
business.
SUEZ Energy Services brings
together well-known companies,
which are often leaders in their
respective markets, such as Axima,
Elyo, Endel, GTI, Ineo, Seitha and
Tractebel Engineering. The Group
employs 67,000 people in
more than 1,000 sites in 30
countries, mostly in Europe. No.1
in France and in the Benelux
countries, it also has a strong
presence in the United Kingdom,
Germany, Italy, Spain, Switzerland
and Austria, and is growing in
Portugal, Greece and the new
EU member countries in
Central Europe.
A COMPREHENSIVE MULTITECHNICAL OFFERING� DesignTechnical studies and economic
research for setting up technical
facilities.
SUEZ Energy Services is
contributing to the construction
of the first new generation EPR
reactor in Finland and to the
preliminary studies for the France-
Italy high-speed train network.
� Building Facilities and Installing EquipmentSUEZ builds, renovates and
upgrades electrical equipment
(power plants, high voltage
New EPR Contract.EDF has selected Endel, a subsidiary of SUEZ Energy Services to carry out studies and supply and install, fluid networks for nuclear auxiliaries at the future EPR plant in Flamanville, a contract worth €70 million.
HIGHLIGHT
Wind Power Takes Off.In 2007, Ineo carried out more than 15 wind projects (studies and construction) for some 12 clients such as EDF Énergies Nouvelles, Erelia 2 and Ecotechnia.
networks, industrial electricity,
transportation networks, public
lighting, etc.), mechanical
equipment (pipes and
networks, etc.) and HVAC
engineering. The Group
installs wind farms, biomass
and conventional thermal power
plants, oil platform equipment,
information systems at airports,
urban heating systems…
��Multitechnical management and maintenanceFrom management of industrial
facilities, to renovation and
maintenance operations and
operations support (optimizing
delivery, etc.).
SUEZ performs industrial
facilities maintenance in steel
and power plants, including nuclear
power plants, and also carries
out work at gas terminals,
provides assistance for turbine
operations, etc.
EUROPEAN LEADER IN MULTITECHNICAL SERVICES
SUEZ Energy Services (SES), the specialist in energy efficient solutions, offers companies and local governments comprehensive solutions ranging from design to technical facilities management (energy, heating, lighting, etc.).
A single contact for comprehensive technical solutions“
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Health in Germany.Axima won a series of hospital contracts in Germany. In Bade-Wurtemberg, the company that manages technical facilities for Buchen Hospital will install a biomass boiler that should reduce its energy costs by 40%.
HIGHLIGHT
� Management of energy networksSUEZ activities include production
of electricity, heat and cold
for industrial or tertiary sector
sites, management of urban
heating and air conditioning
networks and public lighting.
The Group manages 65 urban
heating networks in Europe as well
as heating, electricity production,
lighting and air conditioning for
industrial sites, offices, and public
institution infrastructure such as
hospitals and malls.
� Facilities managementTechnical maintenance and
services for buildings. Complete
building management (power,
heating, air conditioning,
security, green spaces, cleaning
and upkeep).
ENERGY AND ENVIRONMENTAL EFFICIENCYThe rational use of energy is
at the heart of the offering
from SUEZ Energy Services.
In producing energy, heating,
air conditioning, lighting,
transportation and industrial
processes, the company designs,
sets up and manages solutions
that are more efficient
and cost effective and reduce
energy consumption to obtain
either the same or a higher level
of comfort and performance
at a lower price.
SUEZ Energy Services is a major
player in renewable energy, actively
involved in the areas of biomass
hydraulic and wind power and
photovoltaic systems. It acts
to improve energy efficiency in
buildings, a growth business area.
For example, 46% of energy
in France is consumed in buildings
and major gains in efficiency are
possible. In Amsterdam, the Group’s
Dutch subsidiary GTI, is in charge
of energy efficiency for the
prestigious Oosterdokseiland
renovation project where CO2
emissions will be reduced by
62% by the solutions to be
implemented. During peak
consumption (cold periods in
winter), the additional demand
for heat will, for example,
be covered by a heating system
that makes use of vegetable oil.
The Group is the world’s number
two in urban heating networks,
managing more than 65 networks
in Europe. The simpler more
flexible, more efficient
and less costly urban networks
can replace thousands of individual
boilers and their chimneys with
one or more central heating
systems. These are better
maintained and combine several
types of energy (biomass, gas,
energy recovered from waste
incineration) so as to best meet
market conditions. In Paris,
SUEZ Energy Services manages
the third-largest urban network
in the world (CPCU). Forty nine
percent of its power comes from
waste incineration. Continuously
optimized, these facilities have
reduced CO2 emissions by
400,000 tons per year compared
to 2001. Additional capital
expenditures in biomass will
further enhance performance.
Eco-neighborhoods are relatively recent in France but the phenomenon is spreading since the broad-based public policy debate, or Grenelle de l’Environement, that has spurred these projects and their development.In the French suburb of Limeil-Brévannes, one such project, the Quartier des Temps durables, will include 1,076 housing units, retail shops and activities over an area of roughly 10 hectares with no cars allowed. For this project, Elyo designed, set up and, for a period of 33 years, will operate its zero greenhouse-gas emission heat network to supply heating and domestic hot water to the neighborhood. An innovative biomass heating system using wood and fatty acids for fuel will provide enough energy for heating. Electricity for the network will come from photovoltaic panels built into the rooftops of the buildings and any surplus will be sold to the national grid. Hot water will come from thermal solar panels. Heat pumps will improve heating to buildings receiving little sunlight. The combination of these innovative techniques will enable the neighborhood to meet 95% of its heating needs without any waste, a first in France. Thanks to this showcase, SUEZ is involved in numerous other projects under development in France and Europe.
ELYO DEVELOPS the first urban network with zero CO2 emissions in France
FOCUS
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SUEZ is active in the maintenance of many industrial facilities“
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Identifying the sources of energy savings through energy efficiency audits
“
”
The CO2 free Volvo Europa Truck plant in Ghent (Belgium)
GEOTHERMAL ENERGY IN SUCY-EN-BRIEWith its management contract
for the urban heating network
in Sucy-en-Brie renewed for
18 years, Elyo will strengthen its
geothermal resources by developing
new wells. The project will supply
an additional 12,000 MWh to link
500 “housing unit equivalents”
to the network that already covers
2,350 units.
AIX-EN-PROVENCE ELIMINATES 40,000 TONS OF CO2
SUEZ subsidiaries Elyo and SITA
will set up a plant to treat biogas
from waste fermented at the Arbois
plant in Aix. A 4.2 MWe facility will
use biogas to produce electricity
and cut emissions by 40,000 tons
over 15 years.
CHAMBÉRY ELIMINATES 20,000 TONS OF CO2
SUEZ Energy Services is
modernizing a waste incineration
plant in Chambéry in order to use
the heat produced in the urban
heating network. As of 2009, this
project will prevent 20,000 tons
of CO2 from being emitted into the
atmosphere every year.
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The first zero-CO2 emission vehicle production plant has been operating since December 2007 in Ghent, Belgium.Volvo Europa Trucks and Electrabel invested €10 million in this pilot project that will be operated for 20 years by SUEZ Energy Services subsidiaries GTI and Axima. Prior to project start-up, an in-depth energy efficiency audit identified major sources of efficiencies from the reorganization and layout of the premises. Installing skylights or the use of new paints helped to improve lighting and heating. The solution that was implemented combines four different types of energy. Three 2 MW wind turbines will produce approximately 13.4 GWh per year, a portion of which will be sold to neighboring communities. Additional electricity – when the wind turbines are not operational – will come via the network from hydraulic dams operated by SUEZ in France. A 5 MW wood-fired boiler provides primary heat and hot water while the old boiler, which was converted to an oil-fired bio-boiler is to be used when demand peaks. The second phase will see a hectare of photovoltaic cells, producing 1 MW of power, installed on the roofs of the plant. Before its conversion, the Volvo plant emitted 14,000 tons of CO2 each year and it is now down to zero.
THE FIRST CO2-FREE PLANT FOR VOLVO
FOCUS LARGEST FRENCH SOLAR POWER PLANT ON THE ROOFTOP OF A WAREHOUSE ON LA RÉUNION ISLAND In 2007, SUEZ subsidiary Ineo installed 8,500 m2 of solar panels on the roof of the warehouse of a major distributor’s purchasing department. More than 6,000 solar panels will produce 1 MW a year of electrical power, equivalent to the consumption of 500 homes. Sold back to EDF, the electricity will power the island’s network. Completed with funding from the regional authorities and the European Union, the installation is part of the Regional Plan for Renewable Energy and the Rational Use of Energy, which was implemented in 2000 by the local authorities and the government to reduce the island’s energy dependence and even strive for energy independence through renewable energy (hydraulic, biomass and solar energy, etc.). One hundred MWc of photovoltaic cells should be installed at La Réunion by 2025.
MULTI-ENERGY TECHNICAL CENTER FOR TURBOMECA Elyo will design, build, finance and, for a period of 20 years, operate a center that will be able to produce and distribute heat, cold, compressed air, pressurized water and electricity from the new French plant of wind turbine world leader Turbomeca in Bordes. A 3 MW biomass boiler will supply 85% of the site’s heating while avoiding the emission of 1,500 tons of CO2 per year.
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STRONG GROWTH MARKETSSUEZ Environment is a
steward of scarce resources that
promotes recycling and recovers
resources whose value were
overlooked until recently.
The company is developing
in the markets of the future
that are already experiencing
robust growth.
Rational use and preservation
of resources play a decisive
role in the new economy
developing around the world
in response to the challenges
of sustainable development.
Increased environmental
awareness, high public
expectations and more
stringent regulations are
also growth factors for
its activities.
€4.5 BILLION IN CAPITAL EXPENDITUREWith this positive outlook,
the Group is targeting
dynamic growth
in the coming years
and plans to invest
€4.5 billion from 2007 to 2009.
SUEZ is one of the world’s two
specialists in environmental
services. In 2007, SUEZ
Environement earned 12 million,
equally divided between water and
waste services. Although 80% of
its business is in Europe, the Group
operates in 25 countries in all
continents. Among its international
activities, SUEZ distributes water in
New York, Algiers and 16 Chinese
cities, collects and treats waste
in Hong Kong and Macao, and
desalinates seawater in Perth and
Abu Dhabi. One billion people use
water from plants built by
the Group.
61,900 EMPLOYEESIN ENVIRONMENTBUSINESSES AROUND THE WORLD
€12.02 BILLIONIN SALES IN ENVIRONMENT-RELATED BUSINESSES
ENVIRONMENT A WORLD LEADER IN WATER AND WASTE MANAGEMENT
With operations in water and waste management, SUEZ is one of two world class players in environmental services. It does 80% of its business in Europe but is also active in the Middle East, Asia and the Americas.
Raw-water inlet - Macao Water (China)
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SUEZ Environment distributes water in New York, Paris, Algiers, Florence and Jakarta; collects and treats waste in Hong Kong, Shanghai and Macao; and desalinates seawater in Perth and will soon do so in Barcelona…
“”
SUEZ is seen as a benchmark company in China. Nearly 20% of city dwellers in China get water produced by the 180 treatment plants built by Degrémont throughout the country since the 1970s. With a presence in China of more than 30 years, the Group has gradually built up its presence in that country through a partnership strategy based on long-term contracts (up to 50 years), giving it a unique status. As a leader in the water market, it supplies drinking water to 13.5 million Chinese in 16 cities including Shanghai, Chongqing and Qingdao, through the Sino-French Water Development joint venture. In Hong Kong, Swire SITA, another joint venture, operates 12 waste transfer stations and two of the biggest, most modern landfills in the world. In Macao, the Group distributes water, manages waste and produces electricity. Near Shanghai, SUEZ has a 50-year contract to manage drinking and industrial water, and treat waste and hazardous waste from the largest petrochemical complex in China. On the 29 km2 site, the Group installed the only station of its kind in the world with the capacity to treat close 50,000 m3 of industrial effluents per day to avoid any contamination. In late 2006, it inaugurated the largest hazardous waste incinerator in China. With a capacity of 60,000 tons per year, this facility is to date the first in the world that can treat solid, liquid and gas waste. On this market with very strong growth potential, the Group plans to continue developing its environment and energy business while pursuing its partnership strategy.
30 YEARS OF PARTNERSHIP IN CHINA
FOCUS
In its European domestic
market where the most stringent
environmental regulations in the
world sere to boost the market,
the Group plans to strengthen
its positions in the EU’s flagship
countries and develop its business
in new member countries that have
strong growth potential.
SUEZ is also looking to boost its
positions in Australia and North
America where environmental
awareness and fast-rising demands
create significant opportunities,
especially, in public-private
partnerships. In emerging
countries where environmental
concerns have yet to become as
acute, the Group wants to develop
its business by rigorously selecting
projects using, profit-based
criteria, especially by developing
partnerships as it has done in
China, the Middle East and
North Africa.
As Samra wastewater treatment plant in Amman (Joradan)
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WATER SERVICESWATER SERVICES68MILLION INDIVIDUALSSUPPLIED WITH DRINKING WATER
5BILLION M3 OF DRINKING WATER PRODUCED IN 2007
10,000 WATER-TREATMENT PLANTS BUILT WORLDWIDE
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The Group primarily manages
water distribution and other
services on behalf of local
governments under long-term
(10 years or more) delegated
public service concession
contracts or leases or provides
technical services to them
(e.g. for building water treatment
plants, etc.).
SUEZ Environment also provides
technical services to manufacturers
for the design, construction
and management of treatment
facilities.
SUEZ Environment integrates
a comprehensive chain of
expertise which enables it to
act anywhere in the water
cycle from the collection
and production of drinking
water to treatment of wastewater,
water distribution and management
of the resource.
� Research, guidelines and project managementSafège is the international
benchmark company in the
area of water engineering and
consulting, providing such
services as water table modeling
planning of waterways, dams,
networks and water treatment
plants, management of the
resource, etc. It has references
in roughly 100 countries
and 35% of its business
is international.
� Design, construction and management of water treatment plantsDegrémont is the world’s water
treatment specialist. One billion
people use water from one of
its plants around the world. The
company designs drinking water,
desalination, and wastewater
treatment and sludge treatment
facilities. Over 60 years, the
company has built 10,000 plants
in more than 70 countries.
China recognizes the SUEZ brand.Two subsidiaries of SUEZ Environment were recognized by respondents in a national survey on the water industry in China. Sino-French Water Development that supplies water and sanitation services to 13.5 million people ranked first “among the most reputable companies in the water sector” while Degrémont was chosen as “The Best Environmental Engineering Company”.
HIGHLIGHT
� Distribution of drinking water and wastewater treatmentIn Europe, the United States,
China, Brazil, Mexico, Morocco,
Jordan and South Africa, to name
a few, SUEZ Environment owns
or holds an interest in water
distribution companies that
provide services to major public
authorities.
COMPLETE MASTERY OF THE WATER CYCLE
Ranked No.2 in water services in Europe and around the world, SUEZ Environment produced 5 billion m3 of drinking water and distributed water to 68 million people in 2007. It also provided wastewater treatment services to 44 million people.
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Leak detection in Chongqing (China)
Degrémont’s know-how covers
the entire capability chain:
water pumping and treatment,
storage and distribution, client
services (for example, meter
readings, invoices and customer
service), collecting and treating
wastewater, treatment and
recovery of treated sewage sludge.
� Production and treatment of water for industryOndeo Industrial Solutions is
the world specialist in the
management of wastewater from
industrial processes. The company
assists its clients in optimizing
water resources, reducing
consumption, improving processes,
treating effluents and producing
specific water quality (ultra-pure
water, for example).
It has built 1,800 water
production and 2,000 wastewater
treatment facilities worldwide.
STRONG POSITIONS IN EUROPEIn Europe, the Group has a strong
position in France thanks to
Lyonnaise des Eaux, the number
two player in the business with
sales of 1.9 billion in 2007
(+2.8%). The company manages
water services on behalf of
2,600 local governments, bringing
drinking water to 14 million
people and treating water
for another 9 million.
WATER AND SANITATION FOR EVERYONE At the United Nations Millennium Summit in 2000,more than 180 UN member countries made a commitment to achieve the Millennium Development Goals by the year 2015: reduce poverty, improve child nutrition, health, education and fight environmental degradation. As part of these goals, it was decided that the proportion of the population without permanent access to drinking water and sanitation (goal seven) should be reduced by half. SUEZ is contributing to achieving this goal. Over the last 15 years, SUEZ Environment has provided drinking water to more than 11 million people and linked more than 5 million to a sanitation system in emerging countries.
Only 2% of the wastewater collected in the world is reused
“”
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Taking a position in New York.In February 2007, SUEZ subsidiary United Waters finalized acquisition of Aquarion New York one of the 10 largest water distribution companies in the United States.
HIGHLIGHT
REUSING WATER TO SAVE ITOnly 160 billion m3 of the
369 billion m3 of wastewater
collected around the world every
year are treated, and barely
7.1 billion m3 is reused. The
objective of wastewater treatment
is to eliminate suspended matter
and pollutants such as carbon,
nitrogen and phosphorous
compounds. Reuse of this
wastewater at little cost for
agricultural or industrial purposes
is now possible due to advances
in ultra-filtration techniques
which allow a treatment process
to be added.
To make this water drinkable,
an additional treatment process
is needed – and may be justified –
in areas with insufficient water
resources. The “re-use” of water
offers two ways of preserving the
resource: it limits how much water
is used up and reduces the volume
of wastewater discharged into
the environment. For many
communities, this alternative
source of water helps save natural
resources.
The market is growing rapidly.
Between now and 2015, the
volume of reused water in the
world should grow by 180%.
SUEZ Environment’s subsidiaries
manage capacity of more than
2.4 million m3 of reusable water a
day in countries with acute water
shortages such as Qatar, Mexico
and Australia, as well as in
Northern countries where re-use
allows for more rational and less
costly management of the
resource. Near Milan, for example,
the Group designed and now
operates the largest wastewater
treatment plant in Europe. It
provides irrigation water to more
than 20,000 hectares of farmland.
In Grasse, as part of the renewal
of the wastewater contract signed
in 2007 with the town, Lyonnaise
In 2007, the Group significantly
strengthened its presence in
Spain, its second largest market,
by raising its interest in Agbar (it
now owns 90% of the company
together with its Spanish
partners), a major services
company in Barcelona, ranked
No.1 in Spain’s water and
sanitation market, which serves
500 municipalities representing
a population of 12 million.
The company also does business
in Latin America and the United
Kingdom and is developing
projects in North Africa.
In October, SUEZ acquired
33% of Agua de Valencia (AVSA),
which serves 3 million people.
With a presence in the water
market in Italy (including in
Milan, Florence and Pisa) as well
as in Germany and Greece,
SUEZ is looking to strengthen
its business in the principal
European Union markets
and further develop its presence
in new member countries such
as the Czech Republic, Hungary,
Slovakia and Slovenia.
Degrémont, which installs water
treatment and desalination plants
around the world, spearheads
international development in water.
Outside Europe, SUEZ
Environment essentially
supplies water in the United
States, Mexico, Indonesia,
the Middle East and North Africa
in partnership with cities or private
companies. The Group has been
present in China for more than
30 years, in particular, through
some 20 subsidiaries involved
in joint ventures with local
governments for the distribution
of water.
TOULOUSE-BLAGNAC: THE FIRST PPP FOR WATER IN FRANCE In spring 2007, Lyonnaise des Eaux and the Toulouse-Blagnac Airport signed the first-ever public-private partnership contract in the waterand sanitation sector in France. Lyonnaise des Eaux will finance, design and build a 10 million rainwater treatment plant for the airport, which it will then operate for 20 years. Two other SUEZ subsidiaries will also participate in the project: Ondeo Industrial Solutions will be involved in providing some treatment equipment while Ineo will provide electrical installations. The extension of the airport’s waterproofed surfaces necessitates the construction of a new treatment unit for the 700,000 m3 in annual runoff that mixes with kerosene and other pollutants on the tarmac. Lyonnaise des Eaux, known for its expertise in this area, particularly in providing such services to Aéroports de Paris, plans to reuse part of the treated water to clean and water green spaces.
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in the Southern Hemisphere. In
Barcelona, the company built
the largest plant in Europe and
has just started another project
in Alicante, Spain. As the
desalination reference market in
terms of its extensive needs, the
Middle East also benefits from
these innovations. In Fujaiirah,
United Arab Emirates, the largest
plant in the world (63 million m3 of
water per year) is single-handedly
responsible for supplies to one
million people and, for the first
time ever, combines reverse
osmosis with more conventional
distillation processes. These
records must now be broken.
To respond to the challenges
presented by demographics,
urbanization and industrial
development in the Middle East,
the region must increase its
desalination capacity by
15 to 20% a year. The estimated
capital expenditure is more than
$14 billion.
The desalination market should grow 15% per annum in the next 10 years“
”des Eaux will re-use part of the
treated water for watering green
spaces such as gardens and golf
courses. In Toulouse-Blagnac,
the company will also use part
of the treated runoff water from
the airport for cleaning and
watering green spaces.
REVERSE OSMOSIS TAKES DESALINATION GLOBAL The world desalination market
is developing fast. Oceans contain
97% of all the water on Earth
and 40% of the world’s population
lives less than 100 kilometers
from seacoasts. Desalinating
seawater, along with re-use of
treated water, appears to be the
way of the future for supplying
water to an increasing number
of people living in urban areas.
In the next 10 years, this market
should grow by 15% a year and
provide additional water capacity
of close to 80 million m3 per day,
enough to supply 300 million
people. Behind the momentum of
this market are new technologies
that consume less power than
the more conventional distillation
processes. As a historical player
in the market with more than
250 plants, Degrémont is the
world leader in the most recent
and most effective of these
innovations: reverse osmosis. Due
to this lower energy-consuming
technology, desalination can
now be developed beyond the
Middle East. In 2007, Degrémont
inaugurated in Perth, Australia,
the largest desalination plant
GRASSE BETS ON SUSTAINABLE DEVELOPMENT In March 2007, Degrémont inaugurated a new wastewater treatment station in Grasse with a unique process in France. To protect water in a river classified as environmentally sensitive, the station uses a “biological membrane reactor”, which protects marine animals and aquatic plants, and provides a higher level of purification than is required by law. As desired by the city that has its own sustainable development policy, the new plant blends as much as possible into its surroundings due to its discrete architecture and new anti-noise and odor-reducing processes. Ten months after the inauguration, in January 2008, Grasse renewed its public utility service contract with Lyonnaise des Eaux for 20 years. The new contract contains major environmental protection commitments. The system for collecting residual wastewater, (an 130-km network with four treatment plants), will be strengthened and the pollutant measuring system improved. Equipment will be built to specifically treat the effluents from the many perfume manufacturers located in Grasse. Part of the wastewater treated by the city’s stations will be used to water green spaces and keep public roadways clean.
AUSTRALIA: THE LARGEST DESALINATION PLANT IN THE SOUTHERN HEMISPHERE Since 1990, Australia has been dealing with a severe period of drought and has therefore started many projects to diversify and secure its access to water. In April 2007, SUEZ Environment inaugurated in Perth the largest desalination plant in the Southern Hemisphere with a capacity of 140,000 m3 per day. The entire project was designed and built in eighteen months in collaboration with an Australian public works partner. The desalination equipment alone cost €170 million while plant operations, under Degrémont’s management for the next 25 years, represent a contract of €300 million. The operation was undertaken as a public-private partnership with the Regional Water Agency.
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Drinking water in India.In Chennai (formerly Madras), India, Degrémont opened one of the largest drinking-water plants in India. For seven years, the company will operate the unit that has a daily capacity of 530,000 m3 and provides water to 4 million people.
Agbar in Algeria.The Group’s Spanish subsidiary, Agbar, has a five-year contract to manage water and sanitation services for the 1.5 million residents of Oran.
HIGHLIGHTS
The Grasse Roumiguières wastewater treatment plant (France)
By 2015the volume of water reused worldwide should increase by 180%
“”
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WASTE SERVICES40 MILLION TONS OF WASTE TREATED EACH YEAR
935WASTE-TREATMENT SITES
49 INCINERATION UNITS
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The waste service business is
being completely redefined. From
a service activity that involved only
removal, storage and destruction
of waste products, today recycling
is clearly moving this business
towards the production of
“secondary raw materials”. Getting
rid of unwanted waste is no longer
enough; the focus is now on
recycling the waste. SUEZ
Environment has a presence right
across the urban and industrial
waste treatment chain through
SITA and other specialized
subsidiaries.
� Waste management for cities and companiesSITA manages a fleet of 11,800-
strong dump trucks worldwide that
collect waste that is first sent to
sorting centers and then on to
recycling. Hazardous or polluting
waste such as batteries and
aerosol cans are processed at
special centers. Non-recyclable
waste is incinerated and may be
used to produce energy (heat or
electricity) or be stored. The
biogas from fermentation is also
recovered in the form of energy.
� Hazardous waste management (excluding nuclear) SUEZ Environment treated
2.8 million tons of waste in 2007.
Its specialized services can handle
packages weighing just a few
grams (lab products) to heavy
loads weighing several hundred
tons. Hazardous waste (chemicals,
metals, hydrocarbons, etc.), often
originating from industrial sources
can be regenerated (treated and
reused: oils, solvents, etc.),
processed for recovery as fuel
substitutes, incinerated at
high-temperatures with energy
recovery, undergo physicochemical
or biological treatment, depolluted
and then buried. In Shanghai,
SUEZ designed and operates the
largest hazardous waste treatment
center in China.
� Rehabilitation of polluted industrial sitesSUEZ dismantles industrial
facilities at the end of their
lifecycle, treats the sites and
depollutes the soil, sub-soil and
water tables thereby recovering
them for future uses. Two billion
hectares of land are estimated
to be polluted by human activity
every year. Recovering them
is a major sanitation and
environmental challenge.
Tire Recycling.SITA France has inaugurated a new 100% automated process for processing tires in Montauban. The resulting rubber pellets and powders will be used to build playgrounds for children, flooring to go under sports’ equipment, tires and urban fixtures.
HIGHLIGHTS
43%of the waste treated by SUEZ Environment are recovered
“”
WASTE: FROM COLLECTION TO RECOVERY
No.2 in Europe and No.3 worldwide in waste services, SUEZ treats more than 40 million tons of waste every year, 43% which is recycled.
Anaerobic digestion in Montpellier.Novergie, a SUEZ subsidiary specializing in waste-to-energy recovery has won a 10-year contract to operate a digestion plant in Montpellier. 200,000 tons of waste will be treated every year to recover 30,000 MWh of biogas (representing consumption by 25,000 residents) while the organic residues will be used for compost.
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� Urban sanitation and waste services: maintenance of roadways
and urban fixtures, municipal
networks industrial sites, etc.
� Specialized recycling: disassembly and recycling of
vehicles, aircraft, ships, etc.
NO.2 IN EUROPEIn Europe, SUEZ Environment
does half its business outside
France. The Group is present
in Germany, the United Kingdom,
Belgium, the Netherlands,
Scandinavia and in some new EU
member countries such as Poland,
the Czech Republic and Slovakia
where it has significant activities
in cleaning up industrial sites and
recycling hazardous product.
The Group is also present in China
providing urban waste services
in Hong Kong and Macao (waste
collection and street cleaning)
and hazardous waste treatment
in Shanghai, where SUEZ operates
the main plant specialized for
this activity in China. It is also
working in Taiwan, Australia
and the Middle East.
CONVERTING WASTE INTO RESOURCES Getting rid of waste is no longer
enough. Today, it must be
recovered through recycling.
Technological advances are giving
waste a second life so it may
be integrated into the production
cycle of many industries.
Spurred by environmental
challenges and regulations,
this business activity is slated for
significant growth. EU regulations
– the most stringent worldwide –
prohibit, for example, dumping
waste that has not been
pre-sorted. To extend the
waste recovery chain, SITA
is developing plants for mechanical
pre-processing of waste
that separates organic matter
for biological recovery as well as
high calorific waste products
recovered through
co-incineration at cement plants.
“SUSTAINABLE” WASTE COLLECTION IN LYON AND NÎMES The demands of sustainable development are now included in waste service contracts with local governments. In 2007, SITA France won a major contract (€84 million over seven years) to collect the waste produced by the 100,000 residents and clean 132,000 m2 of the community. The company will use “silent trucks” that make use of “clean” energy (biofuel and electricity), and the drivers will learn new eco-driving methods to save up to 15% on the consumption of gasoline. In the city of Lyon, which renewed and extended its contract, SITA will use new tools to optimize the runs of their diester-powered vehicles.
The circular economy strives to maximize resource use by constantly putting end-of-life products back into the business cycle. Throwing away used products is no longer an option. They must now be recycled for new uses. In one exemplary experiment, SITA applied this principle to transforming and revitalizing a derelict industrial area to give it a second life. Apart from clean-up issues relating to the demise of industries that are sometimes centuries old, the rehabilitation of an industrial site must also be socially and economically recoverable through new activities that make depressed employment areas dynamic once again after periods of abandonment. In the Pas-de-Calais region, the dismantling of the old Metaleurop metal foundries in 2003, left behind 830 employees and a 50-hectare site contaminated by a century of lead, zinc and cadmium discharge. It was viewed as one of the most polluted sites in the European Union. With support from public authorities and local governments, SITA spent €80 million on a long-term project to not only decontaminate the site but also make it into a new, future-oriented development center. In early 2008, 14 companies with 420 employees set up shop on the newly refurbished Agora eco-center. Among them are five eco-industries with some 50 former foundry workers. After being the symbol of delocalization and a certain kind of industry of the past, the site is now a major asset for regional development and employment. At least four more businesses are scheduled to open there in 2008. With this industrial and social expertise under its belt, SITA is now undertaking comparable projects on the former Renault site in Romorantin and Kléber site in Toul.
FOCUS
METALEUROP: TRANSFORMING AN INDUSTRIAL
WASTELAND INTO A FUTURE CENTER OF ATTRACTION
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SUEZ recovers waste and converts it into new resources “
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Australia.SUEZ has won two major contracts in Australia: The first (€40 million) for collecting and treating waste from the city of Penrith and the second (€35 million) for building and operating a waste treatment facility in Liverpool, near Sydney.
HIGHLIGHTS
SITA recycles waste from Renault.Renault is renewing its contract with SITA for full waste management services at Cléon, the carmaker’s premier mechanical site. The three-year contract is valued at €20 million.
NEW RESOURCESAlthough paper, cardboard,
wood and plastic, for example,
have been being recycled for
a long time, the list of waste
products now being reprocessed
through recovery keeps growing.
Treated sludge from some
treatment stations used to be
reused in agriculture. Thanks
to innovations from recent R&D,
SUEZ has developed processes
to reduce the volume of this
sludge and reuse it as a fuel for
electricity production, for example.
Biogas from fermented waste
is also used in small heating
plants. 90% of the waste
managed by SUEZ
therefore captures and
burns biogas, producing
approximately 700 GWh
of electricity per year.
In Paris, SUEZ operates the third
largest urban heating network
system in the world (more than
200,000 housing units and many
public and administrative
buildings), and 49% of the energy
used comes from incineration
of household waste. Preserving
fossil resources, reducing CO2
emissions, recovering “national”
and non-imported energy
resources, etc., the economic
and environmental results of
all these recovery operations is
very positive. SUEZ is also
developing highly specialized
processes, particularly, in the
area of transportation vehicle
end-of-life recycling (cars, ships,
airplanes) that offer products
with high added value.
”
27% of treated waste in France becomes secondary raw materials
“
For example, it supplies Airbus
with recycled, certified aircraft-
quality steel to be used in new
aircraft.
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End-of-life vehicle disassembly and recycling unit in Romorantin (France)
AIRCRAFT, SHIPS AND CARS: END-OF-LIFE RECYCLING Under European law, by 2015, 95% of the total vehicle weight taken out of service should be recovered and 85% should be recycled. SUEZ Environment, which already recycles 230,000 tons of metal and cables every year, is positioning itself in this market driven by EU deadlines. After testing feasibility of the project in an European program, SITA partnered with Airbus and others to create Tarmac Aerosave, the first industrial outfit for aircraft disassembly. An initial disassembly site should be operational in Tarbes in 2008 and will process both civil aviation and military aircraft. 300 planes reach the end of their lifecycle every year and Tarmac Aerosave is counting on its early positioning and its partnerships to make its mark on this nascent market. In February 2008, SITA and Renault teamed up for a project to recover end-of-life automobiles in compliance with European goals. Although 85% of the total vehicle weight can today be recycled, moving to a rate of 95% involves developing new techniques for recycling non-metal parts such as rubber, plastics, textiles and glass. Renault and SITA have joined forces to take over a company managing 230 disassembly centers in France. They plan to spend €150 million to process 150,000 vehicles of every brand per year. Beyond its environmental results, this project will allow Renault to get “secondary raw material” for its own plants at prices below those for raw materials. SITA is also positioning itself on the market for ships, which are also covered by the EU directive. In partnership with Endel (a SUEZ Energy Services subsidiary) and CMN, a mechanical engineering firm, the company has won the first contract for taking apart and disassembling the Lucifer, a military ship.
Mechanical biological sorting center in Alès.SITA France signed a 22-year contract with a joint entity from the Alès region to design, build and manage a center for sorting household waste using mechanical and biological processes. Over the term involved, the contract is expected to earn €123 million.
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730RESEARCHERS AND EXPERTS
8R&D CENTERS
€100MILLION INVESTED IN R&D
RESEARCH AND INNOVATION
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technicians and experts present
at client companies, where they
can identify specific needs and
R&D teams. New solutions are
often tested and improved on site
under real operating conditions.
SUEZ’s development relies
primarily on its mastery of
technology. The Group has
developed a world benchmark
for techniques used in
membrane ultra-filtration
of water. Its installed base
of nuclear power stations are
some of the best performers in
Europe with availability rates of
over 90%. In alternative energy,
the Group – the first to convert
a coal-fired plant to a biomass
plant – has premier international
know-how.
A WORLDWIDE SCIENTIFIC AND TECHNICAL NETWORK SUEZ employs more than
600 researchers and experts
in its eight R&D centers, some
of which rank as international
benchmarks. As called for under
SUEZ’s decentralized model,
its centers are connected to
the company’s subsidiaries
and develop their own research
programs. In its environment
activities, SUEZ has
200 test laboratories for
controlling water quality
wherever the company does
business, including France,
the United States, China, Spain
and the United Kingdom.
MARKET-ORIENTED R&DThe aim of R&D is to find
innovative solutions that respond
to the expectations of consumers,
manufacturers and communities.
Greatly decentralized, the
Group’s R&D is largely steered
by its various business lines
(energy, energy services, water
and waste services) that have their
own research resources, closely
matching market needs.
Most innovations developed
by SUEZ come from the close
working relationship between
INNOVATION FOR SUSTAINABILITY
A culture of innovation closely matched to it markets enables SUEZ to strengthen competitive capabilities and performance and to come up with new answers to the challenges facing its energy and environment sectors.
320PATENTS IN THE PORTFOLIO
Organic chemistry, sample preparation at CIRSEE (France)
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MEETING THE CHALLENGES OF BUSINESS AND THE ENVIRONMENTManaging consumption of raw
materials properly, reducing
discharge and conserving
resources… to energy efficiencies
and environmental challenges lie
at the core of many of the research
programs conducted by SUEZ.
Strong demand from society and
the law for sustainable
development is a powerful engine
for innovation. That is what brings
clients, manufacturers and
communities more efficient, less
costly solutions that anticipate
changes in regulations and allow
them to strengthen their own
competitive capabilities.
INTERNATIONAL PARTNERSHIPS The Group’s R&D centers develop
partnerships with French and
international university laboratories
or public research centers,
such as the CNRS or the CEA.
In the environment businesses,
more than 50 partnerships with
universities provide access to new
technologies and methodologies
and expand areas of research.
SUEZ is also a partner in
large-scale international programs,
especially in the energy sector. In
European R&D programs (PCRD),
the Group is a partner in projects
for controlling CO2 gas (through
collection, transportation and
storage) such as the Castor
program that brings together
the main European oil and
electricity producers.
It also plays a major role in
European projects such as
EU-Deep and Reliance for securing
electrical networks within the
single European market.
SUEZ is a partner in projects that
are developing the fourth-
generation nuclear reactors
of the future (scheduled for
2030). Moreover, it is also
participating in the ambitious
ITER project for the production
of energy by nuclear fusion.
ELIMINATING PCBs FROM WATERWAYS Polychlorinated biphenyls (PCBs), which have been illegal for some 20 years now, are still polluting much of the sediments in soils and waterways. In the Lyon area, SUEZ Environment is a major player in the Axelera industrial park, which brings together manufacturers and university research centers working in the area of environmental chemistry. The research program to remove PCBs from the Rhône River includes studies on methods of analysis (for quantifying the presence of PCBs), the manner in which they are spread and solutions to remedy the problem. The objective is to develop decontamination technologies to be used in other waterways, some of which are even more contaminated than the Rhône River.
FACILITATING THE DEPLOYMENT OF DECENTRALIZED ENERGY SOURCES Electricity grids can be hard pressed to handle unplanned power fluctuations from decentralized production units (such as wind, solar or small biomass plants), and this curbs development of renewable energy. SUEZ is a partner in the EU-Deep program that brings together some 40 players from nine European countries to invent technologies for improved management of networks that can safely integrate mass development of decentralized production units. EU-Deep has a major R&D component and also includes deployment of new solutions in the areas of forecasting, management, support, etc., to safely adapt networks for the large-scale deployment of decentralized production units.
The demands of sustainable development are a powerful driver of innovation“
”
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THE TOWN: A LIVELY, FRIENDLY PLACE
- An optimized water network that detects leaks
- Power supply with low CO2 emissions
- Pneumatic waste collection to avoid pollution and noise for better health
- A community heating system powered by renewable energy that saves energy
- An air conditioning system that uses the safest technologies for health
- Reuse of wastewater to irrigate open spaces
- Street lighting that saves energy and improves security
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ENERGY AND TECHNICAL SERVICES - consulting and engineering- on-site utility management: electricity, compressed air, heating, cooling, etc.- industrial maintenance, logistics management, systems integration, etc.
SANITATION SERVICES- waste cycle management- waste collection- separation and recycling- treatment and recovery of hazardous and non-hazardous wastes- maintenance and industrial cleaning- rehabilitation of polluted sites and soils
A MORE EFFICIENT INDUSTRIAL SITE
GAS SUPPLY (Natural gas, Liquefied Natural Gas - LNG) offering a balanced combination of flexibility (competitive pricing, flexible volumes) and supply reliability
WATER SERVICES - water cycle management- consulting and engineering- water process management- wastewater management- sludge and byproduct management
ELECTRICITY SUPPLYbased on a production mix low in CO2, or even CO2-free
ENERGY AND TECHNICAL SERVICES - consulting and engineering- technical installation of HVAC and electric and communication systems, etc.- management and maintenance of climate control installations (heating, hot water, air conditioning) and other types (electricity, elevators, video surveillance, etc.)- facilities management
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WASTE COLLECTION WITHOUT TRUCKS SITA is working on developing a pneumatic system for collecting domestic waste in France. This is an approach developed by the Spanish group Ros Roca, which has tested it in a new district of Barcelona. Waste is deposited in containers on the street, sucked into underground pipes and sent to a transfer center where it is handled using traditional methods. The advantage is that garbage trucks or associated nuisances (noise, traffic jams, pollution and CO2 emissions) are eliminated. It is a simple solution to be used in new districts, but it could also be implemented during restorations of historic neighborhoods with narrow streets. Several cities in Ile-de-France and the Lyonnaise region are studying the system. An initial trial will take place in the Paris area between now and 2010.
REMOTE MONITORING OF TURBINES In Europe, South America and Asia, there aremore than 100 turbine groups monitoredremotely from Brussels using the LVMS (Laborelec Vibration Monitoring System) developed by Laborelec, the Group’s Belgian laboratory. A crack in a turbine’s wing is a serious problem that can result in the shutdown of the electric plant and major repair costs. With LVMS, sensors allow us to detect vibrations produced by the occurrence of the slightest flaw in a wing. These recordings are transmitted over the Internet and analyzed thousands of kilometers away in Laborelec’s offices. With thousands of hours of historical data, the location and developments of a flaw can be analyzed in detail to decide whether or not a shutdown is required for repair work. Maintenance costs are thus significantly reduced and the installation’s availability is improved.
Laborelec research center (Belgium)
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SUSTAINABLE DEVELOPMENTSustainable development is at the heart of the SUEZ strategy. An engine of growth and promise of survival, it allows the companyto grow while fostering economic performance, environmental protection and corporate responsibility.
68 • SUSTAINABLE DEVELOPMENT, AN ENGINE OF GROWTH
70 • A COMMITTED PLAYER 72 • INVOLVEMENT FROM THE ENTIRE GROUP
74 • RESPONDING TO THE EXPECTATIONS OF OUR STAKEHOLDERS
80 • MAKING THE MOST OF OUR HUMAN RESOURCES
88 • HEALTH AND SAFETY: SUSTAINABLE IMPROVEMENT IN PERFORMANCE
90 • CONTROLLING THE ECONOMIC IMPACT OF OUR ACTIVITIES
98 • SOLIDARITY AND CORPORATE SPONSORING
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partners, and neighbors of the
facilities are all in part dependent
on our activities. This responsibility
demands implementation of
sustainable solutions and behavior.
OUR VOCATION: CREATE VALUE ON A SUSTAINABLE BASISSUEZ’s mission is to grow on a
sustainable basis by creating value
through sustainable development.
Innovation to create new solutions
that are more respectful of the
environment has become a major
competitive issue. Developing new
tools to respond to the growing
demand for water and energy,
anticipating needs and long-term
trends to avoid improvising in
emergency situations, controlling
the effects of its business
operations, recovering byproducts
that had been neglected until now:
all of these initiatives allow us to
improve plant efficiency, cut costs,
open new markets, develop new
businesses – in short, to create
value, consistently.
OUR BUSINESS: OFFERING SUSTAINABLE SOLUTIONS Producing and supplying
dependable energy, while
controlling costs and conserving
resources; providing clean water
that’s available to all; controlling
and treating industrial
and domestic waste…
The Group’s companies have
always provided essential
services which have now become
the focus of concerns about
sustainable development. Rather
than talk about “constraints”,
SUEZ prefers to refer to the
“challenges” of the environment
and sustainable development.
By offering meaningful answers
to these challenges, the Group is
developing competitive products
and services for its clients and
partners who are increasingly
environmentally conscious and
demanding.
OUR RESPONSIBILITY: CONTROLLING OUR IMPACTLike all industrial activities,
the businesses of SUEZ have a very
significant impact on people and
the environment: SUEZ
has 149,000 employees,
serves 200 million people,
500,000 companies and
3,000 municipalities. More than
1 billion people use water produced
by plants built by the Group.
SUEZ operates thousands of
industrial facilities and electrical
plants worldwide. Health, wellbeing,
safety, the environment of millions
of people – employees, clients,
SUSTAINABLE DEVELOPMENT, AN ENGINE OF GROWTH
Energy and the environment: these two areas of SUEZ’s business are at the heart of the challenges of sustainable development. Reconciling economic growth with social development and environmental preservation is more than just a requirement – it is the core mission of SUEZ and the basis of its strategy… as well as a competitive advantage.
Construction of the hydroelectrical plant in São Salvador (Brazil)
40%OF THE GROUP’S ENERGY PRODUCTION CAPACITY IS “CARBONFREE”
APPROXIMATELY
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The Group is developing innovative solutions to recover waste that has been neglected until now more efficiently“
”
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CSR Europe is also a major player
in coordinating discussions on
businesses’ social responsibility,
which are initiated by member
organizations. Through the
channels of this network,
businesses are represented in
multi-party dialogues and have
more influence to present their
positions on these topics.
SUEZ is an active member
of Comité 21 (French
Committee for the Environment
and Sustainable Development)
which was created in 1994 as part
of Agenda 21 at the Terre de Rio
Summit. Comité 21 includes more
than 300 members (businesses,
local authorities, public bodies
and associations, and the media)
and is a discussion forum where
the Group can explain its positions
to stakeholders, and in some
cases, develop them even further.
SUEZ has notably been involved in
a series of educational programs
on sustainable development
published by Comité 21.
SUEZ is also involved in the
work of organizations including
EPE, IMS and ORSE.
SUEZ has been a member of the
United Nations Global Compact since its creation, giving the
company a global perspective on
its commitments to sustainable
development. The Group has
undertaken to observe the
10 fundamental principles
regarding human rights, labor
rights, the environment, and
anti-corruption that were adopted
by the Global Compact. Each
year SUEZ publishes a report
describing the measures it
has undertaken to fulfill this
commitment. This report
was commended by the Global
Compact as being one of
170 reports that demonstrate
proof of a concrete, in-depth
commitment to implement the
10 principles. In 2007, SUEZ
CEO Gérard Mestrallet signed
two documents that directly
concern the Group’s businesses:
“Caring for Climate” formulates
the commitments of business
leaders in the struggle against
climate change and the “CEO
Water Mandate” which calls upon
companies to manage their water
resources wisely.
ACTIVE INVOLVEMENT WITH ORGANIZATIONSThe Group is an active participant
in the WBCSD (World Business
Council for Sustainable
Development), a network of more
than 200 international companies
that are committed to sustainable
development, economic growth,
ecological equilibrium and
social progress. It is particularly
involved in the Energy and Climate
working group, whose objective
is to suggest innovative solutions
to help businesses reduce the
carbon footprint of their activities.
SUEZ is an active member
of CSR Europe, a European
network of companies organized
by Jacques Delors and several
other business leaders to discuss
and share best practices and to
coordinate the environmental
and social parameters of their
operations. During MarketPlace
2007, the annual discussion
forum developed by CSR Europe,
SUEZ was recognized for the work
it performed for the “Dialogue
with Stakeholders” laboratory;
SUEZ codirected this project with
Total within the framework of the
European Alliance for Corporate
Social Responsibility.
A COMMITTED PLAYERSUEZ plays a leading role in a number of national and international organizations that encourage reflection on corporate social responsibility, facilitate the exchange of best practices and the emulation and formulation of shared points of view.
SUEZ has been a member of the United Nations Global Compact since its creation
“”
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In 2007, Gérard Mestrallet signed “Caring for Climate”, committing the SUEZ Group to move ahead with concrete actions in the fight against global warming
“”
NAME Members Member since SUEZ’s role Signifi cance for SUEZ
Global Compact
Companies 2000 Steering Committee of French Friends of the GC
Signing of Caring for Climate and the CEO Water mandate
WBCSD Companies 1999 Member of the core team of the Business Role working group
Working groups:- Energy and Climate- Electric utilities- Business role- Water and SD- Development
CSR Europe Companies 1997 Member of the Board of Directors
Participation in MarketPlace (a forum on best practices)
Committee 21 Companies,local authorities, associations
1997 Member of the Board of Directors
Participation in working groups:- Agendas 21 and local authorities- Food, energy, construction, waste and transport- Mobility and training- Responsible purchasing: assistance to SMEs and SMIs- Responsible marketing- Innovation- Education at DD
IDDRI/FONDDRI
Companies, experts
2001 Member of the Board of Directors
Participation in research projects: “Climatic vulnerability of industrial activities” and “Scenarios under carbon constraints”
ORSE Companies, unions
2005 Member Participation in working groups:- Sustainable purchasing- Finance club
EPE Companies 1997 Member of the Board of Directors
Participation in the working group: Energy effi ciency in buildings
IMS Companies 1996 Member of the Board of Directors
Participation in the working group “Access to services and products for disadvantaged populations”
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Sustainable development
commitments are deployed at the
very highest levels of the Group.
The Chairman of the Group is
personally involved in issues and
regularly expresses his views
on these issues, which are then
reviewed by the Board of Directors which includes a Committee
for Ethics, Environment and Sustainable Development. At the
Executive Committee level, one
of the members is specifically
responsible for these issues.
A Sustainable Development Steering Committee, including
four members of the Executive
Committee and a representative
from each of the Group’s four
business lines, defines the
principle guidelines of the Group’s
policy in this area and focuses
on implementation and
coordinated action.
The Sustainable Development Department proposes measures
to the Steering Committee
and coordinates the network
of members responsible for
implementing initiatives in the
operating units. It represents
the Group before national and
international authorities on issues
regarding social responsibility.
It sets up ad hoc working groups
for important subjects and policies
to be developed throughout the
entire Group and works in close
cooperation with our marketing
teams to create “sustainable
development” product offerings
for clients.
The Sustainable Development
Department is also responsible
for maintaining relations with
non-financial rating agencies and
socially responsible investors
through financial communications.
The Sustainable Development Network includes 42 members
representing the Group’s
major operating divisions and
those directly involved in the
operating units. It monitors the
implementation of action plans
in the field and is responsible
for communicating best practices
recognized in each unit to
the Sustainable Development
Department, which can in turn
propose to the Sustainable
Development Steering Committee
that such measures be made
standard practice.
THE ENTIRE GROUP IS INVOLVED
To support its strategy, SUEZ has created an organization that is dedicated to sustainable development, with specialized management tools and a prioritized action plan that is embraced by the entire Group.
ORGANIZATION
COMMITTEE FOR ETHICS,
ENVIRONMENT AND SUSTAINABLE
DEVELOPMENT
GROUP EXECUTIVE COMMITTEE
SUSTAINABLE DEVELOPMENT
STEERING COMMITTEE
SUSTAINABLE DEVELOPMENT DEPARTMENT
SUSTAINABLE DEVELOPMENT
NETWORK:42 MEMBERS
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Sustainable development training for managers.Creating awareness about sustainable development issues is an integral part of SUEZ’s training programs. During 2007, 150 managers at the headquarters received training on the issues and policies implemented by the Group. Widespread implementation of this training program is currently underway. Special modules have been integrated into the SUEZ University training programs (which are designed for integration of new officers, financial managers and senior managers). At business conventions as well as during the annual convention of senior managers and meetings of the internal audit communications network, the challenges of sustainable development issues, and the policies that have been implemented are presented systematically.
HIGHLIGHT
RESPONSIBLE AND SUSTAINABLE PURCHASING The SUEZ Purchasing Division is responsible for selecting suppliers, optimizing purchasing procedures for all subsidiaries, and observing quality and profitability criteria. In 2003, it developed an “Ethical Purchasing Charter” that stipulates that every purchaser must observe “the Group’s commitments in the area of sustainable development” when making purchases and “integrate environmental and corporate concerns as criteria in selecting suppliers and products”. This charter has been widely distributed and is available on both the Internet and intranet; it is brought to the attention of all of the Group’s purchasers and suppliers.In 2007, a working group comprising members of the purchasing network and the sustainable development network was organized to strengthen this policy, particularly to encourage suppliers and their subcontractors to make a commitment to observe the principles developed by SUEZ. As a result, a clause on “Ethics and sustainable development” is being incorporated into purchasing contracts.
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FIVE PRIORITIES FOR SUEZ’S LONG TERM DEVELOPMENT SUEZ’s sustainable development
action plans are aimed at
efficiently responding to the
expectations of its stakeholders,
who are divided according to
five priorities defined by the
Group in connection with
its businesses. The
implementation of these action
plans, directed by Senior
Management, is regularly audited
and measured in the field.
1 – Reflecting the values of sustainable development in our practices and cultureEach SUEZ entity develops a
sustainable development program
that comprises measurable
actions. The sustainable
development correspondent
network monitors the application
of action plans decided by the
Group and by the businesses in
the field. They also ensure that
“best practices” are collected
and communicated throughout
the Group. Social, corporate
and environmental criteria are
progressively being integrated into
the Group’s sound management
practices, particularly purchasing
policies and investment criteria.
A series of indicators facilitates
measurement of the progress
of the sustainable development
action plan.
2 – Integrating sustainable development into our commercial offers for the benefit of clients and usersUnder the pressures of corporate
and environmental challenges and
increasingly stringent regulations,
the demand for sustainable
development has continued
to increase and now represents
a powerful engine of growth.
ONGOING DIALOGUEThe Group’s effective performance
depends on the quality of its
dialogue with “stakeholders”
in order to establish a climate
of confidence, to reconcile all
their expectations, and to create
value for everyone. SUEZ has
therefore established a number of
forums for discussion among its
stakeholders. Examples include
the social dialogue with personnel
representatives in Europe,
regular meetings with individual
shareholders, the Foresight
Advisory Council, debates with
local partners, and Group
participation at all levels of the
Grenelle de l’Environnement.
RESPONDING TO STAKEHOLDER EXPECTATIONS
SUEZ provides essential services including water, energy, and waste services, to millions of people throughout the world. Jobs, services, research, investment and development projects, as well as the potential issues that may be raised by our business activities and plants, have an impact on a growing population. The Group’s responsibilities thus extend far beyond mere economic parameters.
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SUEZ offers local authorities and
businesses products and services
that allow them to achieve their
own sustainable development
objectives, to limit their impact
on climate change, to provide
water to new populations, and
to economize on their use of
natural resources. Sustainable
development objectives create
value for the Group.
PRIMARY TOOLS OF DIALOGUE WITH OUR STAKEHOLDERS
OUR CLIENTS
Inquiries about satisfaction
Periodicals targeted to types of customers: local authorities, big businesses, SME, individuals
Dedicated Internet sites
Information campaigns
UNIONS AND EMPLOYEES
European Consultative Committee
Group Committee in France
Local entity-level instances of dialogue
Intranet
Company periodicals, newsletters
Inquiries about satisfaction
SHAREHOLDERS AND FINANCIAL INSTITUTIONS
Shareholders Space with individual investors; Group participation in specialized forums
Group participation in specialized forums
Regular meetings with financial analysts Investor Relations Department for institutional investors
Dedicated Internet site
Letter to the shareholders
CIVIC SOCIETY AND PUBLIC AUTHORITIES
Group’s instances:
• SUEZ Institutional Relations Department
• SUEZ Environment’s Strategy and Outlook Council
• Regular debates at headquarters on subjects such as workplace integration and biodiversity
• Local committees implemented up by entities
Membership in organizations
• International Social Observer
• Comité 21
Participation in external demonstrations
• World Water Forum, Mayors’ Forums, etc
EXPECTATIONS• Transparency and information
• Ethical, responsible conduct
• Compliance with regulations, human and labor rights
• Financial results
• Long term visibility
• Risk prevention
• Participation in company decisions
• Sustainable job management
• Preservation of the environment
• Quality of service, competitiveness
• Innovation, reactivity
• Partnership
BEST PRACTICES FOR EVERYONE The network comprising 50 members who are responsible for communicating SUEZ programs and initiatives in the field also identifies and communicates best practices implemented by operating units across the Group level. Preventive measures against AIDS in Peru, innovative green energy projects in Brazil and Belgium, wildlife protection, access to water for the most disadvantaged… more than 2,000 concrete initiatives worldwide are compiled and accessible via the Group’s intranet to allow each entity to be informed and inspired to achieve its own initiatives.
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3 – Protecting the environmentSUEZ applies the same
environmental protection goals
that it promotes to its clients.
An environmental management
system allows the Group to control
and improve the impact of its
activities over the long term.
Environmental impact studies are
carried out before each project.
4 – Promoting the Group’s social commitmentSUEZ opposes all forms of
discrimination and encourages
equitable access to employment:
it encourages the participation
of women and diversity among
its personnel. Forums of
discussion allow effective social
dialogues to be maintained
at all levels of the Group.
5 – Acting as a corporate citizen and ensuring a local emphasis in our activitiesSUEZ is involved in activities over
the long term, under contracts
that may last as long as 20,
or even 50, years and is thus a
major player in local sustainable
development. It has a significant
impact on local job markets and
economies. To enhance its local
emphasis, the Group maintains
a dialogue with all stakeholders
(authorities, governments,
clients, and neighbors) ensures
compliance with rigorous ethical
requirements in its activities and
undertakes numerous patronage
and solidarity initiatives.
SUEZ encourages the participation of women and diversity among its personnel and maintains a social dialogue at all levels of the Group
“”
SOCIALLY RESPONSIBLE INVESTMENTS The “socially responsible” aspect of companies is now an important assessment criterion in the financial community.Constantly questioned on these matters, SUEZ endeavors to respond very specifically to questions posed by investors on the Group’s non-financial performance. Meetings and site visits are organized.On these occasions, the Group can also present its sustainable development strategy to investor committees.
HIGHLIGHTS
Carbon Disclosure Project: this study on the transparency of information on climate change provided by the FTS 500 companies named SUEZ to the Corporate Leadership Index, which recognizes corporate leaders. SUEZ’s carbon risk is rated AA (ratings range from CCC to AAA.)
Innovest: SUEZ was rated AA in 2006, ranking it among the leaders in its sector (ratings range from CCC to AAA and are awarded every other year).
In 2007, Vigeo rated SUEZ: human resources (++), environment (=),clients and suppliers (+), corporate governance (=),social commitment (+), human rights (+).
A COUNCIL OF INTERNATIONAL EXPERTS ON THE ENVIRONMENT Created by SUEZ Environment, the Foresight Advisory Council is composed of 24 independent experts (universities, members of NGOs, elected representatives, etc.) from 14 countries. Its mission is to help the business lines to analyze the major political, social, economic and technical trends that may influence its businesses. Its advice has been particularly helpful in assisting SUEZ Environment to develop its sustainable development action plan.
The Marbella purifi cation station in Biarritz (France)
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Employee meeting (French Polynesia)
Cabinet Sustainability (with the support of Standard and Poor’s and the United Nations Program for the Environment): this rating, carried out every other year, ranked SUEZ among the 50 companies that are leaders in sustainable development at the global level in 2007. Only three French companies were recognized this year.
In 2007, Capital Com (a French financial communications agency) carried out a survey on the communications relating to environmental challenges issued by CAC 40 companies; it ranked SUEZ among the seven best companies.
Oekom: in 2007, the agency gave SUEZ a B- rating in its social and environmental ratings (on a scale ranging from D- to A+).
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PRIORITIES FOR SUEZ LONG-TERM
SUEZ is committed to ongoing improvements. In 2007, the Group achieved additional progress in all of its priority areas.
51
2
3
4
5
149 131COLLABORATEURS (+ 6,7%)
REFLECTING THE VALUES OF SUSTAINABLE DEVELOPMENT IN OUR PRACTICES AND CULTURE
Developing a sustainable development program in each SUEZ entity Raising awareness and training employees about the challenges of sustainable development and the responses implemented by the Group
Sharing best practices within the Group
Integrating social, corporate and environmental evaluation criteria into our management initiatives Presenting an annual progress report to the Committee for Ethics, the Environment and Sustainable Development of the Board of Directors
Expanding the coverage of social and environmental reporting
Raising the level of external certification of environmental and social reporting
INTEGRATING SUSTAINABLE DEVELOPMENT INTO OUR COMMERCIAL OFFERS TO BENEFIT CLIENTS AND USERS
Adapting our business models to market shifts, and to local political and regulatory environments
Designing products and services that allow governments and manufacturers to improve their social and environmental performance
Consolidating customer relationships through regularly monitoring of customer satisfaction
PROTECTING THE ENVIRONMENT Maintaining our site compliance and managing regulatory changes
Measuring and controlling environmental risks as part of the SUEZ risk management policy
Minimizing the environmental impact of our activities over the long term
Expanding environmental management systems Implementing an action plan to preserve biodiversity on the Group’s vulnerable sites
Increasing SUEZ’s renewable energy production capacity
PROMOTING THE GROUP’S SOCIAL COMMITMENT Encouraging equitable access to employment Attracting and retaining talent Encouraging diversity and respect human rights Maintaining strong social dialogue at all Group levels Developing skills to promote employability
Guaranteeing health and safety in the workplace
Enhancing motivation and professional development with regular collective and individual assessments
ACTING AS A CORPORATE CITIZEN, AND PROVIDE LOCAL FOCUS FOR OUR ACTIVITIES
Identifying the stakeholders in each entity
Ensuring dialogue with civil society and NGOs
Strengthening the Group’s ethics policy
Formalizing the Group’s social and cultural sponsorship activities Integrating subcontractors and suppliers into our sustainable development approach Ensure that the Group’s activities have a positive impact on local economies
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DEVELOPMENT
All business lines have an action plan, as do all the Business UnitsImplementation of a sustainable development training program for managers (since 2006).Familiarizing employees with “eco-gestures”A data base of more than 200 best practices has been created,which is available on the Group intranet as archives and filmExtra-financial criteria are increasingly being integrated into purchasing and investment activitiesA progress report was presented on Nov. 14, 2007, to the Committee for Ethics, the Environment and Sustainable Development The average coverage ratio of social indicators was 97.8% in 2007, and greater than 98% for 90% of environmental indicatorsThree year action plan to improve the certification level from a moderate assurance opinion to a reasonable assurance level
Development of public/private partnerships and increasing integration of Group companies in local economies to secure contracts over the long termNumerous contracts have been won due to integration of sustainable development into the products and services offered to the clientLaunch of a Group inquiry on the expectations of major industrial clients regarding SUEZ in the area of sustainable development
Implementation of an EMS self-evaluation system designed for operating sites
Environmental risks are integrated into the Group’s risk assessment process
SUEZ has made 10 formal commitments in connection with the Grenelle de l’Environnement
More than 50% of the Group’s sites are covered by a certified EMS
Development of Locamaps, localization software for vulnerable sites
Objective: to increase renewable energy capacity in Europe from 15% in 2006, to 18% in 2009.Development of wind, biomass and hydraulic power outside of Europe
Publication of a “Talent Recruitment” guide for recruiters, including a section on diversity Recruitment campaign and implementation of the Campus program: 132,000 hires anticipated between now and 2013Six objectives to enhance women’s participation. Participation in BLIHR’s francophone workSignature of the Social Pact: three commitments with global scope61.2% of employees received training in 2007Strengthened SUEZ rules for subcontractors. Completion of the audit campaign.Launch of a new campaign (follow-up audits). Development of a new action planSignature of a 3-year supplementary profit sharing plan tied to the Group’s performance, to benefit employees worldwide
Publication of a Group tool identifying stakeholders with ORSE in connection with the Alliance for CER laboratories
Active participation in the work of the Grenelle de l’Environnement
Creation of a Compliance Department, increase in the number of people who received ethical training via e-learning
Formalized patronage policy; two patronage committee meetings in 2007, and one in 2008
Widespread use of the “Ethics and Sustainable Development” clause in purchasing contracts
Conversion of industrial sites and transformation into an eco-activity zone (Metaleurop and the Kléber site in Toul)
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in all the Group’s entities during
2007. Developed with the input
from human resources teams in
all the business lines, it defines
shared objectives and approaches
to identify needs, define profiles,
seek out the strongest candidates,
optimize costs, etc. This guide puts
particular emphasis on the struggle
against discrimination. In 2008,
a specific training program will
be sent to recruiters to accelerate
communication of these “Group”
approaches.
FORWARD-LOOKING MANAGEMENT OF JOBS AND SKILLSHuman resources will become a
major challenge to the Group’s
growth over the next few years.
The aging European population
and changing demographics of the
workplace will result in massive
retirements, which are expected
to lead to a scarcity of skills,
particularly in technical areas,
and increased competition among
large groups to attract talent.
At the same time, the pursuit of
SUEZ’s growth and international
expansion, growth in renewable
energy and the re-launch of
the nuclear program will raise
new requirements. Forward-
At the end of 2007, SUEZ
had 149,131 employees
worldwide, up 6.7%, driven
primarily by the strong growth
in the Group’s activities. Ninety
percent of employees were
in Europe, including 60% in
France and Belgium. There were
28,000 new recruits last year.
When adjusted for retirement and
employment contract terminations,
the net number of jobs created
was 6,000, including 2,500 in
France and 600 in Belgium.
132,000 NEW HIRES BETWEEN NOW AND 2013To support the development of
its businesses in fast-growing
markets and adjust the
demographic profile, SUEZ plans
to recruit 132,000 people between
2008 and 2013, including 20,000
this year. If a new nuclear project
is inaugurated, as the Group
hopes will be the case, these
figures would again be revised
upwards. 56,000 of these hires
would be in France and 10,000 in
Belgium, To assist in this effort, the
Group has launched a European
communication campaign intended
to enhance its reputation among
future new hires, among other
objectives. This ambitious program
also represents an opportunity
to coordinate recruitment efforts
within the Group. A guide,
“Recruiting Talent”, was distributed
to human resources departments
MAKING THE MOST OF OUR HUMAN RESOURCES
SUEZ has more than 149,000 employees in five continents. In keeping with its commitments to sustainable development, its social policy is aimed at allowing employees to develop confidently within the Group and improve their performance. To support its growth and continue to renew its staff, SUEZ plans to make more than 130,000 new hires in the next five years.
Control room at a hydroelectrical plant
TOTAL ACTIVE EMPLOYEES ON DEC. 31, 2007 GROUPSEE 15,030
EIS 4,088
SES 67,395
SE 61,915
HEADQUARTERS 703
TOTAL 149,131
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looking management of human
resources aims to anticipate these
phenomena by seeking
upstream solutions. In 2007,
a Group agreement on
“Forward-looking management
of jobs and skills” was signed
in Europe with union organizations.
It primarily addresses
employability and training policies
and establishes conditions
for mobility within the Group,
by creating “inter-subsidiary”
connections to facilitate movement
from one business line to another
(energy, waste services,
water, etc.).
ATTRACTING NEW TALENTFaced with an increasingly
competitive employment market,
recruiting young graduates is a
major challenge. The Campus
Program, which has been
implemented at the Group level,
allows us to promote the SUEZ
image to students by emphasizing
the diversity of its activities. In
2007, the Group held 21 recruiting
fairs in France and Belgium.
International implementation is
planned in 2008. Technical skills
are also much sought after in the
employment market, and recruiters
must increase their expertise to
develop new profiles. Facing a
very tight local labor market,
the Electrabel site in Doel,
near Antwerp, has decided
to expand its recruiting sources
with the “Technicians in Progress”
program; this allowed 20 or so
people with minimal qualifications,
who did not meet standard hiring
criteria, to join with open-ended
employment contracts. Thanks
to the motivation of these new
employees and the involvement
of technical teams around them,
individualized attention over
the course of one year enabled
them to acquire skills and work
independently. Based on this
success, Electrabel decided
to share this experience.
61.2% of SUEZ employees received training in 2007“ ” YOU’RE GOING TO LOVE THE FUTURE! SUEZ will recruit 20,000 employees worldwide in 2008 and it doesn’t hesitate to let the world know about it: a communication campaign was inaugurated in seven European countries to announce the good news. Visual displays are appearing in the press, on posters, on the web, in train stations and on buses…large scale publicity support for the recruiting campaign. Against a lackluster socio-economic backdrop, SUEZ’s objective is to strengthen its image in Europe and showcase itself as the bearer of good news and the creator of solutions for the future in strategic sectors: energy and the environment. It’s an optimistic vision that will strengthen the Group’s appeal to potential recruits who are in increasing demand.
Ove
r 65
0.3%60
- 64
2.4%
55 -
59
9.4%50
- 54
13.3%
45 -
4915%
40 -
44
16.3%
35 -
39
15.2%
30 -
34
12.4%
25 -
29
11%
Und
er 2
5
4.8%
The SUEZ age pyramid is balanced and has remained stable over the last three years. The average age for SUEZ employees remains 41, primarily due to the efforts of entities such as Electrabel in Belgium. In SEE, employees under 30 now constitute 20% of employees. In SEI, a youthful demographic profi le has remained constant since the business line was created: 50% of its employees are under 40. The two business lines with the most employees, SES and SE, show balanced profi les similar to those of the Group as a whole. Although it is not immediate problem, the issue of an aging population is bound to become a key concern for these business lines; almost 25% of their staff is 50 or older. The initial results of the recruitment campaign – even if these new hires are not confi ned solely to young people – are expected to be seen beginning in 2008-2009.
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The SUEZ Group will be hiring 20,000 newemployees worldwide in 2008. www.suez.com
GROUP AGE PYRAMID (EMPLOYEES WITH OPEN-ENDED CONTRACTS)
RADD_SUEZ_66-99_GB_V10.indd 81 26/05/08 17:56:17
82
AN EQUITABLE, ATTRACTIVE SALARY POLICYFaithful to its commitment to
“strive for improved quality of life
for its employees” (International
Social Charter, Article 5), the
SUEZ Group has adopted an
equitable, attractive salary
policy. At a time when recruiting
and employee loyalty are strategic
challenges, the compensation
offered must at least match
the practices of the reference
sectors; it must avoid creating
distortions between the
socioprofessional categories
or local compensation levels,
but also reward individual
and collective performance.
ATTENTIVE TO THE STANDARDS OF LIVING OF ITS EMPLOYEES, THROUGHOUT THE WORLDThe salaries offered by SUEZ –
particularly to manual laborers
– must permit achievement of a
quality of life greater than the local
cost of living in all countries. To
verify that this is the case, SUEZ
has been performing an intensive
review of the salary practices
of its entities throughout the
world since 2001.
In every country, sectoral and
national benchmarks give
assurance that the compensation
offered by the Group is
consistently superior to the
country’s minimum wage level.
Additional comparisons with
the local cost of living allow
us to refine the analysis,
particularly when minimum
wages are too low or non-existent.
In connection with the annual
review in application of the
International Social Charter, the
European Consultative Committee
evaluates developments in the
compensation practices of its
subsidiaries each year.
Comparison with reference
sectors (see graph) allows us to
manage compensation practices
compared to competitors of the
Group. Compensation for employee
performance generally includes
variable compensation amounts, as
well as incentive and profit sharing
programs based on the entity’s
income, when national legislation
permits. In 2007, the Group
incentive agreement took the
form of the distribution of bonus
shares and targeted the sharing
of a portion of SUEZ’s net income
with all its employees uniformly,
whatever their position or country.
Finally, employee shareholder
offers are carried out on a regular
basis and have been very well
received: employees now own
3% of the Group’s capital.
SUEZ worker salary/worker salary in sector
SUEZ worker salary/local minimum wage
SUEZ worker salary/local cost of living
1.6
3
4.2
SEE SEI
1.8
9.3
5.3
SES
1.21.8 1.6
SE
1.2
2.2 2
SUEZ WORKER SALARIES COMPARED TOAVERAGE WORKER SALARIES IN THE SECTOR, BASED ON THE LOCAL
MINIMUM WAGE AND THE LOCAL COST OF LIVING
The fi rst comparison shows that the compensation offered by SUEZ is competitive. Overall, SUEZ entities offer salaries that are slightly above sector averages. SUEZ‘s compensation is particularly competitive in energy production, with fewer employees. In many countries in Latin America, this situation is attributable to “cohabitation” with a public sector that is still powerful, but whose compensation packages are more modest. The ratios are close to 1 for energy – and environment-related services, and for highly labor inten-sive businesses where competitive pressures directly impact compensation levels. The second and third comparisons should be analyzed together. They are designed to evaluate the quality of life that can be achieved with the average salary paid. The report, “SUEZ Salaries Compared to Minimum Wage”, which is still generally above 1 at the business line level – shows that the Group’s practices refl ect its commitments in every country where it operates. The report, “SUEZ Salaries Compared to the Local Cost of Living”, com-plements this analysis; in certain countries, there is no minimum wage, so the amount may sometimes be too low to guarantee a “decent” standard of living to those who receive it; hence the interest in introducing an additional comparison with the local cost of living.
RADD_SUEZ_66-99_GB_V10.indd 82 26/05/08 17:56:21
16% of SUEZ employees are women. In management, the percentage is 17.8%. Convinced that gender representation and diversity spur exchanges of information, innovation and performance, the Group is committed to a voluntary policy promoting increased participation by women. In 2004, it signed the Institut Montaigne’s Diversity Charter and then created a European task force to perform an analysis of the male/female balance in its entities. This work began at the beginning of 2007 with the creation of the Observatory (a focus group on the place of women in SUEZ). The clearly stated objective was to suggest concrete steps to improve the male/female balance, remove obstacles, and reverse prejudices and “organizational habits.” Composed of about 50 women of all nationalities, coming from various Group businesses, the Observatory presented six distinct objectives with concrete proposals in December:• accelerate the promotion of women to senior management positions. A third of candidates for each senior management position must be women. High potential women (“Leader for the future”) will enjoy dedicated professional advice among other things;• increase the presence of women in all businesses, particularly technical areas. The “short list” of candidates for every position should include at least one woman. For each new recruit, the rate of women represented must be equal to that of the target schools and universities; • support women’s professional career progress, particularly during maternity leaves;• encourage more open, flexible management practices, particularly with awareness of atypical female career paths, validating such experience within the Group;• assist women to create a WIN (Women in Networking) network within the group to encourage exchanges of information and experience;• give credibility to and monitor gender initiatives: a number of indicators will facilitate measurement of improvements in gender progress in the Group. A report on the topic will be prepared for each business line and a global communication plan will be implemented to facilitate the measurement of progress.
AN OBSERVATORY TO PROMOTE WOMEN S PARTICIPATION AT SUEZ
FOCUS
PROMOTING DIVERSITY
To confront the need for new employees and assist its reentry into nuclear projects, Electrabel will need to recruit 700 specialized engineers and technicians in coming years. However, after years of enforced hibernation, the nuclear training channels often lack students. Anticipating future needs, the Group’s nuclear companies have inaugurated an assistance program for Belgian universities to award a specialized diploma that will be recognized throughout Europe. This program would allow scholarships to be provided to foreign students and to send students on internships abroad. In addition, SUEZ has created its Nuclear Trainee Program designed for future engineers wishing to specialize in nuclear technology. For a 12-to-18-month period, it allows 70 young engineers to have internships in its plants in 2007.
The internal diversity network is a place to exchange best practices where concrete initiatives are being developed to fight against discrimination. An agreement with France’s National Employment Agency (ANPE) has facilitated efficient coordination between the needs of subsidiaries and those of individuals affected by exclusion from the employment market. Signed with institutional and association partners, the “Enlarging diversity sourcing” agreement broadens the recruitment scope for SUEZ subsidiaries by including candidates who have been affected by discrimination in hiring efforts.SUEZ is also a leader in business clubs discussing topics of equal opportunity and local commitment. Following an analysis carried out in 2006 on employment restrictions affecting the disabled, action plans were implemented by subsidiaries. The exchange of best practices and the emergence of principles of conduct were encouraged by the creation of a network for the disabled during 2007.
Almost 16% of SUEZ employees are women. This percentage rises to 17.8% in management. Although there has been steady progress since 2003, these fi gures are not satisfactory. SUEZ has organized an Observatory to improve the Group’s gender diversity.
Women employees Women in management
2003 2004 2005 2006 2007
13.80%
13.20%
15.50%15.90% 15.50% 15.98%
16% 15.90%16.80%
17.79%
REPRESENTATION OF WOMEN EMPLOYEES AND MANAGEMENT
SUEZ IS SEARCHING FOR 700 NUCLEAR ENERGY SPECIALISTS
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84
AXIMA: A NEW CAREER PATH IN THE FACE OF SHORT SUPPLY OF MANUAL LABOR Axima has decided to deploy a number of tools: a relationship policy coordinating schools and apprenticeships, broader recruiting sources, and development of training modules.A specialist in climatic engineering, Axima is confronted with a severe shortage of labor in certain areas: site supervisors, specialized maintenance technicians, etc. The company has strengthened its ties with graduate schools (IUT, BTS and engineering schools) by participating in an increasing number of student forums and by increasing the number of internships at the end of schooling. In 2007, 130 people had six-month internships, which are now considered to be the first step to being hired. Apprentice contracts, which are intended for the Bac Pro and CAP populations who represent more than 5% of Axima’s employees, also aim to integrate their participants. At the same time, to encourage employee loyalty, career prospects have been broadened by offering long-term training programs that facilitate the training of site supervisors and steer technicians toward project management.
PROMOTION OF THE “WORKSITE” COURSE OF STUDY AT INEO A specialist in electrical installation, INEO has made a major effort to promote its “Worksite” sector, which is responsible for carrying out installation contracts in the field. Formerly, the “Worksites and Services” sector posted no job descriptions beyond the position of worksite manager, which limited career development prospects and led some qualified employees to leave this sector to use their skills elsewhere. In order to end this pattern and foster the loyalty of skilled employees, INEO redefined its job descriptions by creating new careers (project manager, technical operations manager, head of project services, technical operations director and project director), thus allowing broader possibilities for career development and internal promotion. This model, which has produced good results internally, also offers more attractive prospects to young recruits.
HARMONIZATION OF SOCIAL PROTECTION PROGRAMSWith the partial disengagement
of the State from the financing
of social protection programs, it
is essential for a multinational
group to develop a pragmatic,
coordinated response. At SUEZ,
the social protection policy
includes insurance (health
expenses, disability coverage,
and death) and supplementary
retirement plans; these are all
in the process of restructuring,
with the goal of increasing the
attractiveness of the Group’s
entities. The existence of plans
responding to the same general
principles also facilitates
mobility between entities. This
is an admittedly ambitious goal,
given the diversity of collective
agreements with various entities
across Europe and throughout the
rest of the world.
Although it may not be feasible
to arrive at a single system, the
convergence of these programs
is a medium-term goal for HR.
The principle of equity among
salaries is affirmed, both for the
various entities and for the various
socio-professional categories. A
benchmark for several large SUEZ
subsidiaries has been met with
the creation of new supplementary
retirement systems at the
employer’s expense.
BROAD ACCESS TO INFORMATIONTraining is a key aspect of
career management and SUEZ’s
professional efficiency: all
employees must have access
to training to allow them to
strengthen their skills and
promote their careers. In 2007,
61.2% of the Group’s employees
benefited from training, a truly
exceptional level in the energy
and environment businesses.
Each trainee received an average
of 31.5 hours of courses. Almost
half of these training sessions
(40%) covered “business”
techniques and more than a
quarter (29%) addressed quality-
security-environment issues;
the rest covered languages,
management techniques, etc.
Most of this training is organized
and implemented in various
SUEZ business lines, closer to
the field. At the Group level,
SUEZ University offers thematic
training intended for managers;
in 2007, 4,350 managers from
all subsidiaries (a 20% increase)
took a course at SUEZ University,
whose offerings are constantly
being expanded. These training
courses reinforce the Group’s
culture by developing a shared
strategic vision and reinforcing
consistent managerial practices.
Managers17%
Workers46%
Technicians37%
EMPLOYEES RECEIVING TRAINING
Managers16%
TOTAL EMPLOYEES
Workers51%
Technicians33%
ALLOCATION OF EMPLOYEETRAINING BY SPC
The correlation between total employees and em-ployees receiving training underlines the equitable distribution of training within the Group’s entities. No socioprofessional category is at a disadvantage, and this has been the case for years.
RADD_SUEZ_66-99_GB_V10.indd 84 26/05/08 17:56:32
INCORPORATING SOCIAL RESPONSIBILITYSUEZ makes the personal
development of its employees
a priority and considers it one
of its corporate responsibilities.
Beyond strictly professional
aspects, there are training courses
targeted at disadvantaged and
at-risk populations. More than
2,300 individual are employed
by the Group under work-study
contracts. Certain businesses
are particularly well suited for
apprenticeships or the tutorial
system based on teamwork at
worksites and on longstanding
relationships with schools
(electrical installations, energy
50% of managerial positions are filled through internal mobility“
”
Everett LNG terminal near Boston (United States)
Languages7%
Business40%
QSE29%
Other24%
BREAKDOWN BY TYPE OF TRAINING
The breakdown by type of training emphasizes the importance of business training sessions (which include plant qualifi cations). The Group’s major efforts in the areas of health and workplace safety are also refl ected in the amount of training on this subject (between 27% and 31% of all training over the last three years).
services and water distribution).
In addition, a number of waste
service businesses are well suited
to work-study or re-employment
initiatives. Confronted with difficulty
in recruiting young technicians,
Elyo launched an ambitious
tutorial program; for example, at
the end of 2007, all work-study
contracts (apprenticeships and
professionalization programs)
together represented 3.6% of total
employees, up 14% compared
to 2006. Apprenticeship is now
considered an essential step in
pre-recruitment, and Elyo teams
are motivated to make this phase
successful. The hiring rate for
apprentices, currently at 50%,
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86
A social agreement, signed in 2007, addresses equal opportunity issues and applies to the entire Group“
”
RADD_SUEZ_66-99_GB_V10.indd 86 26/05/08 17:57:05
is expected to grow in coming
years. To achieve this goal,
Elyo has taken proactive steps:
working upstream with schools,
finding a better selection of
candidates, reconsidering
compensation for apprentices,
strengthening the integration
process and providing broader
growth opportunities for
candidates.
Tutors are essential to this
project, and their role is receiving
recognition. They are now involved
in selecting young candidates
and are given a special tutorial
training module. SITA Rebond
is a SITA subsidiary that
specializes in reinserting
individuals at risk into the
economy. (These include the
long term unemployed,
government subsidy recipients,
the unskilled, etc.). In partnership
with local authorities, companies,
associations and governmental
services, SITA Rebond recruits
these candidates, integrates
them into a team, and provides
them with personalized assistance
(in mastering the French
language, basic training, housing,
over-indebtedness, etc.) under
work-study contracts that range
from three months to two years.
SOCIAL AUDITIn 2007, SUEZ continued to
implement its internal social audit
system, aimed at verifying how the
group’s commitments in the areas
of human resources and respect
for human rights are actually
enforced in practice. By mapping
the HR policies in place in a
given entity and directly involving
various stakeholders concerned
(managers, the HR team, social
partners, and employees), the
social audit model complements
the quantitative data provided by
social reporting.
THREE “GROUP” SOCIAL COMPACTS IN 2007SUEZ’s European Consultative
Committee includes 47 personnel
representatives from every
entity and includes 15 different
nationalities. In 2007, it provided
a negotiating framework and
signed three broad-based new
agreements on topics that are
novel and rarely addressed at the
European or global level: advance
planning for employment and
skills, equal opportunity, and an
employee incentive system based
on the Group’s profits. These
agreements apply to the entire
Group, which wishes to develop
and strengthen the social initiatives
already implemented in the
entities. The European Consultative
Committee is also responsible for
monitoring the social commitments
undertaken by the Group under
the International Social Charter,
with an audit carried out annually.
It is based on the social auditing
module that is increasingly used
by the subsidiaries.
SHARE OF WORK-STUDY CONTRACTS SES FRANCE, SE FRANCE AND SUEZ GROUP
200520062007
SE FranceSES France Group
3.35%
2.85%
1.78%
2.70%
2.96%
1.94%
2.52%
1.36%
1.65%
Within the framework of the pact
on the modernization of social
dialogue, Lyonnaise des Eaux
has implemented a number of
provisions that benefit its social
partners. Specific budgets
are planned to allow union
representatives to organize
their annual conference, while
“national preparation time for
unions” has been granted since
2006. This time credit can be
transferred to other Lyonnaise
des Eaux employees, to allow
them to compile information on
issues open to negotiation and
consultation. In addition,
a Commission on Union Delegate
Careers has been set up.
Initiated several years ago, the work-study paradigm has produced good results. The Group’s total number of employees increased 6.7% between 2006 and 2007, whereas the number of employees under work-study contracts rose 15.4%. The Group’s work-study policy has succeeded primarily due to initiatives by the Group’s French entities, whose efforts are supported by a legal framework that favors apprenticeships and professional development. The percentage of work-study contracts was 3.1% at Ineo, 3.6% at Lyonnaise des Eaux and 5% at Elyo Ile-de-France (see below). The situation in international units varies due to differing legal environments.
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88
HEALTH AND SAFETY: SUSTAINABLE IMPROVEMENT IN PERFORMANCE
Preserving the health and safety of its teams is a priority at SUEZ whose industrial activities may involve risks. The group dedicates substantial resources towards improving its performance and moving towards “zero accidents.”
CEM electric plant in Macao (China)
The Group’s 2007 results show
a 17% decline in accidents
with work shutdown and a
14% reduction in their severity
compared with 2006. Over a
longer period, there has been a
spectacular drop in both frequency
and severity (down 45% and 37%
respectively compared to 2003;
see graphs). The Group profoundly
regrets the nine fatal accidents in
2007 (one more than in 2006)
and remains particularly attentive
to this issue. Efforts made with
outside providers have been
productive; four fatal accidents
occurred among them in 2007,
compared to 13 in 2006. A system
for monitoring accident frequency
for temporary employees has also
been implemented.
AMBITIOUS OBJECTIVESIn keeping with its demand for
ongoing improvement, the Group
has set ambitious, quantified
objectives for coming years:
between now and 2009, the
accident frequency rate must
be below 10 and the severity
rate must fall below the 0.4
barrier; these figures represent
an average decline of 15% a
year. In 2001, SUEZ formed
a Health and Safety Network
composed of experts who are
responsible for coordinating safety
initiatives in all of the Group’s
subsidiaries. The Health and
Safety Network has systematically
developed a complete reference
framework: in 2007, four new
governance rules applicable to
the Group were issued. Two of
these are aimed at guaranteeing
to outside service providers the
same safety conditions as those
enjoyed by SUEZ employees.
Another significant target is an
exhaustive analysis of risk factors
for accidents. These rules have
contributed to a significant
improvement in performance and
complement the work carried out
under the 2005-2010 Global
Action Plan, whose goals have
been achieved: external audits,
training and awareness programs,
inclusion of temporary workers
and external service providers in
action plans, factoring health and
safety objectives into manager
evaluations (and thus in variable
compensation), etc.
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TRAINING EXTERNAL SERVICE PROVIDERS IN NUCLEAR SAFETY Since October 2006, Electrabel has trained more than 2,100 external service providers in nuclear safety at the Tihange plant in Belgium. Over a four day period, this very comprehensive training module includes two days of orientation to the culture of safety in a nuclear plant, a day on practical precautions (safety equipment, handling of hazardous waste, etc.) and a “worksite school day” when participants carry out “full scale” interventions.At the end of these training sessions, the service providers are coached by their trainers as they perform “real time” interventions. This training package, which significantly improves safety conditions on worksites, has been implemented in Electrabel’s other nuclear plant in Doel since October.
SITA TEAMS CREATE A SYSTEM TO IMPROVE SAFETY IN WASTE COMPRESSORS
The compressors used to compact waste can expose their operators to the risk of serious accidents. To drastically reduce this risk, SITA Center East has developed a system internally that causes the compressor to stop automatically when an operator enters the conveyor area. Developed at the Chemaudin site (Doubs) by the entire team, the “Hazardous Zone Access Control” has prevented worksite accidents involving the compressor, while enhancing productivity. The system received the “Safety Challenge” prize from SITA and was included in the SUEZ Innovation Trophies in 2007. It is now being adapted for other SITA sites.
The external audit campaign
was completed in 2007, and
follow-up audits are now aimed at
measuring management and safety
systems in the entities. Health
and safety continue to represent
a very significant part of training
received by employees: almost
30% of all training within the
Group is focused on quality-safety-
environment issues. In addition,
more than 1,600 managers
and senior officers have taken
the training module “Safety
Management in the Workplace”,
which has been offered by SUEZ
University since 2005. A module
covering behavioral issues will be
added in 2008.
SOCIAL DIALOGUE AND SHARING EXPERIENCESSince the Health and Safety
Charter was signed in 2002,
social dialogue has become an
essential tool in SUEZ’s policies.
The zero accident culture has
been embraced by everyone as
part of the Group’s objectives.
The Health and Safety
Management Committee is
responsible for verifying the
enforcement of this charter; it
includes members from senior
management and employee
representatives. This committee
regularly reviews action plans and
performance in the business lines,
analyzes the underlying causes
of serious accidents, and reviews
the results of external audits
carried out onsite. Information
days held each year gather more
than 100 representatives of local
health and safety committees
(CHSCT in France, CPPT in
Belgium, etc.) with the goal
of benefiting from onsite
experiences and heightening
the attention given to emerging
health challenges. They
systematically consider
workplace-related health issues
(including psycho-social problems,
musculoskeletal ailments,
and addictive behaviors) that
have a direct impact on
our social partners.
SEVERITY RATE OF WORKPLACE ACCIDENTS
FREQUENCY RATE OF WORKPLACE ACCIDENTS
The Group’s frequency rate dropped 17% compared to 2006 and 32% compared to 2004. A continued decline in severity rate (down 14%) is further proof of the progress made. All of the business lines contributed to this remarkable progress, with special mention going to SUEZ Energy Services (FR -19%, SR -17%). In absolute terms, the FR and SR of SUEZ Energy Europe and SUEZ Energy International remain at a remarkably low level, among the best in the energy production sector. The frequency and severity of accidents are greater at SUEZ Energy Services and SUEZ Environment. They are affected by special issues in environmental services: there are incidents on roadsides, worksites and locations that do not belong to the Group. The improvement in their performance is thus even more remarkable.
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2005 20062003 2004 2007
13.56
28.45
24.41
21.5 21.89
18.47
25.58
24.7420.04
20.07
18.05
18.59
14.69
11.90
3.983.974.61
4.19
5.95
5.06
4.49
2.47 3.011.41
16.31
Total GroupSUEZ Energy EuropeSUEZ Energy International
SUEZ Energy ServicesSUEZ Environment
2005 20062003 2004 2007
0.53
1.04
0.95
0.870.83
0.74
0.78
0.57
0.65
0.57
0.47
0.84
0.69 0.69
0.62
0.10.15
0.180.13
0.09
0.110.08 0.06 0.05 0.05
RADD_SUEZ_66-99_GB_V10.indd 89 26/05/08 17:57:28
90
to its impact on the environment.
It makes sure that the necessary
investments are made to ensure
that all its operations and
facilities are permanently in
compliance with the increasing
number of health and
environmental regulations in
all countries in which it operates.
In addition to these obligations,
it often anticipates new
legislation to provide a better
response to the needs of
its customers and all
stakeholders. Employee training,
innovation and research programs
contribute to the operational
control of these risks.
NETWORK OF REPRESENTATIVES AND ENVIRONMENTAL MANAGEMENT SYSTEM Within the Group, the
Environment and Innovation
Department coordinates and
directs environmental measures
conducted within the Business
Units. It develops the Group’s
environmental policies, ensures
approval by branch managers,
and is responsible for reliable
and verifiable feedback of
non-financial, environmental
information. It collects and
distributes information concerning
the environmental risks related
to our businesses. A network of
more than 100 environmental
coordinators deploys the
Group’s policy in the subsidiaries
and operating units.
All the subsidiaries deploy
their environmental policy
based on their operations,
local economic conditions,
and the expectations of their
customers – manufacturers
as well as communities. Risk
management is a daily activity
thanks to a large number of
Environmental Management
Systems (EMS) set up within
The activities and facilities
operated by SUEZ may present
a health risk for populations
(employees, suppliers,
residents, etc.) and a risk
for the environment. SUEZ
in particular handles dangerous
products (fissile materials, fuels,
water treatment chemicals).
Waste management presents
risks of greenhouse gas emissions,
acid rain, toxic gases, dust, etc.
Some of our facilities treat
special industrial or medical
waste that can be toxic.
The Group devotes substantial
resources to the prevention
and control of those risks and
CONTROLLING THE ENVIRONMENTAL IMPACT OF OUR ACTIVITIES
While the Group’s operations can have a positive impact on the environment, they also have an impact on the environment and natural resources, which must be measured, controlled and reduced to a minimum in a process of ongoing improvement.
23.04%
13.27%
1.27% 0.84%20.48%
20.14%
20.97%
■ Traditional thermal plant■ Gas-steam turbine■ Cogeneration■ Gas turbine, turbojets, motors
■ Small hydroelectric plant
■ Large hydroelectric plant
■ Wind■ Solar■ Special biomass combustion facilities
■ Special biogas combustion facility
■ Incinerator (non-biodegradable portion of waste)
■ Geothermal
0.33%
17.30%
0.17%
0.00%
0.80%
0.40%
1.11%
0.02%
■ Incinerator (non-biodegradable portion of waste)■ Nuclear plant■ Renewable energy
2007 ENERGY PRODUCTION: 223,317 GWheq – BREAKDOWN BY TECHNOLOGY
In 2007, the portion of renewable energy (44,959 GWheq) more than doubled from 2006. The increase is primarily the result of the integration of the major dam management activity, known as Large Hydraulic. This increase was intensifi ed because of the abundant rainfall both in Europe and in Latin America. It should also be noted that there was a signifi cant increase in production related to cogeneration and the natural-gas activity. These values take into account the production in GWheq of the entities included in the scope of the environmental reporting.
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the Group or the risk management
plans deployed for this purpose.
Most of the EMS are certified
under international standards
(ISO 14001, 9001, etc.).
At the end of 2007, more than
50% of the Group’s revenues
were covered by a certified
Environmental Management
System. 1,254 sites operated
by the Group were certified
ISO 14001.
In 2006 and 2007,
SUEZ set up a self-assessment
system for the EMS to allow
the operational sites to easily
identify vectors for improvement
and evaluate the adequacy
of their environmental
management system for
local circumstances. This
system also lets them track
their changes and make
a comparative analysis with other
Group sites. In addition to this
ongoing improvement
in the environmental management
systems, the Group has
implemented a program to
provide continuous training on
environmental problems
to employees: 29.1% of the total
number of training hours provided
in the Group focused on
“quality-safety-environment”,
which represented a budget
of over €21.7 million
in 2007.
In order to direct the deployment
of its environmental policy,
control environmental risks,
and encourage communication
of its environmental performance
to its stakeholders, SUEZ
began to establish a special
reporting system in 1999.
The development of this system
AN ENVIRONMENTAL PRIZE IN BRAZIL Early in 2008, Tractebel Energia and its partners in the Machadinho hydroelectric facility (1,140 MW) were recognized by the Jornal do brazil with the award of the «Brazil environmental prize» for their «Sistema florestal Cambona 4» project, designed to minimize the impact of the dam construction on the population and the environment. The project includes, among other components, the planting of tea, which will provide new activities for local residents.
Machadinho hydroelectric plant (Brazil)
“ A budget of €21.7 million was allocated to the quality-safety-environment training sessions ”
NUMBER OF SITES OR ACTIVITIES COVERED BY AN EMAS OR ISO 14001 ENVIRONMENTAL MANAGEMENT SYSTEM
ISO 14001 EMAS
925
1,082
1,254
67
11
2005 2006 2007 2005 2006 2007
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Compagnie Nationale du Rhône (France) hydrology and measurement laboratory
was based on the work conducted
within international dialogue
associations, such as the
Global Reporting Initiative or
the World Business Council
for Sustainable Development
(WBCSD). The reporting exercise
completed in 2007 and the
Group’s practices in this area
have contributed, through a
process of ongoing improvement,
to better collection and
distribution procedures
for environmental data.
ENVIRONMENTAL REPORTINGThe environmental reporting
is closely related to the reporting
of operational performance and
has thus become a management
tool. The formalized processes
for regular information feedback
cover five areas:
• the environmental performance
indicators intended for official
report (Reference Document,
Annual Report);
• compliance letters for branch
executives and the report by the
environmental representative;
• the statement of legal
compliance and plans for
achieving compliance if
a problem is detected, based
on a questionnaire;
• the situation of environmental
liabilities and the related provisions,
compiled at the same time as any
non-compliance issues;
• the environmental risks
collected by the SUEZ risk cell.
The year 2007 marked the
first deployment of a self-
assessment questionnaire on
environmental management
(ESA) developed in addition
to the “level 1” audit, which
verifies whether the basic
requirements of SUEZ are being
met in the operating entities.
Tested in 160 entities, this
questionnaire reflects the
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requirements of the ISO-14001
standard in concrete terms,
provides an image of the
efforts made in the Group and
strengthens the involvement of
the teams in place.
GREENHOUSE GASES In 2007, greenhouse gas
emissions, excluding the
vehicle fleet, totaled
82.1 million tons equivalent
CO2 for the Group. Most of
those emissions result from
energy production, which alone
represented 76.6 million tons
equivalent CO2. The combination
of energy production, energy
efficiency, liquefied natural gas
sales, services to industry and
local governments allows SUEZ
to make major efforts in energy
PROTECTING THE RED KITE IN BOURGOGNE A splendid bird of prey, with a span of 1.75 m, the red kite is also an endangered species in France. In partnership with associations and public authorities, SITA has initiated a program to stabilize the population of these birds in Bourgogne. In addition to other activities, a platform allows them to be regularly supplied with meat to replace the animal carcasses that are disappearing from the countryside. Ten employees from the company have also been trained to participate in operations to count and protect the bird of prey.
IDENTIFYING SENSITIVE SITES Developed in 2007, Locamaps is a unique tool in Europe which identifies, using Google Maps, all the SUEZ industrial sites (electrical plants, water treatment facilities, landfills, etc.) and superimposes any sites that are ecologically sensitive (waterways, wetlands, etc.) over those sites. This new tool allows the potential risks for each site to be identified in a few minutes and corrective actions to be planned, as needed. First developed for France, Locamaps will be expanded to European sites in 2008.
efficiency and diversify energy
resources towards those that
yield the best performance
and the least emissions.
Environmental activities generated
5.1 million tons equivalent CO2
in 2007, an increase essentially
due to the change in the scope
of the contracts.
SUEZ actively participates
in the development and
promotion of renewable energy
(wind, hydraulic, biomass) when
economic circumstances permit.
This energy in 2007 represented
nearly 9.8 GW of installed electric
equivalents, an increase of more
than 49% over 2006. Electrabel
achieved a world first in the
Walloon region. Awirs 4, which
previously operated on coal,
is today exclusively fed with
wood-burning pellets, to provide
80 MW of power.
In Europe, the Group is
in line with the objective set
by the European Union to
reach 20% renewable energy
in its energy consumption
by 2020. Electrabel’s objective
is to have a power production
capacity from renewable energy
of 6,300 MW in 2009,
representing 18% of its total
installed capacity.
SO2 emissions related to energyproduction/Energy produced(t/GWheq)
NOx emissions related to energy production/Energy produced (t/GWheq)
CO2 emissions related to energy production/Energy produced (t/MWheq)
2003 2004 2005 2006 20070.00
0.20
0.40
0.60
0.80
1.00
1.20
1.40
ENERGY PERFORMANCE
7.6%
92.4%
0.3%0.3%
3.2%
2.8%
0.1%0.9%
CO2 emissions – Gas transmission and storageCH4 emissionsGas transportation, storage and distribution
Greenhouse gas emissionsLandfill center
Greenhouse gas emissionsIncineration (non-biodegradable portion of the waste)
CO2 emissions – Vehicle fleet
Greenhouse gas emissions – Waste treatmentCO2 emissions
Energy production
BREAKDOWN OF GREENHOUSE GAS EMISSIONS (TONS EQ.CO2)
Emissions of atmospheric pollutants were down very signifi cantly for gases like CO2, SO2 and NOx, while energy production rose substantially
BIODIVERSITY
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80 MILLION TONS OF CO2 ELIMINATED71% of the emissions eliminated,
which totaled more than
80 million eq CO2 in 2007,
were generated by nuclear
and hydraulic technologies.
Recycling of materials,
flyash and incineration
residue generated 13%,
co-generation 7%, the use
of biomass 3%, while
waste-to-energy recovery
and heat recovery 3%.
SUEZ is attentive to the
opportunities that arise for
Clean Development Mechanism
(CDM) and Joint Implementation
projects when the revenues
expected cover the additional
costs related to greenhouse gas
reduction measures. Several
experiments are taking place in
both energy and the environment.
Ten or so new CDM projects are
being studied in Latin America
and Asia.
In the context of controlling the
CO2 emissions resulting from
the operations of thermal power
plants, SUEZ and Electrabel are
studying the promising method
of geological capture and storage
of CO2. A multi-year joint
research and demonstration
program in this area was started
several years ago and benefits
from significant financing
within the Group. The technology
of carbon capture and storage
will secure investments in new
coal capacity in an increasingly
tight carbon context and will
maintain the flexibility that
currently characterizes the
Group’s electrical production
capacities.
PRESERVATION OF NATURAL RESOURCES The depletion and deterioration
in the quality of resources
in certain countries in which
the Group operates have
led SUEZ to increase the
awareness of its sites to the
need for integrated management
of natural resources, particularly
in terms of dependence on
fossil fuels, economizing raw
materials, protection of the
quality of bodies of water, etc...
Management of water resources
integrates all problems related
to water and sanitary services
(protection of the resource,
agriculture, land-use
planning) and the resolution
of potential conflicts by
negotiating with all users-
consumers.
Quality control of the drinking
water that is produced and
distributed and the discharges
from purification stations is
conducted at the local level
through auto-monitoring controls
and reported to the central level,
which monitors performance
assessments. In the area of
wastewater treatment, SUEZ
Environment, in partnership
with the communities for which
it works, ensures compliance
with and, if possible, anticipates
the standards for wastewater
discharge and the future
fate of sludge.
In 2007, the Group consumed
approximately 230 million m3 of
water for industrial processes and
uses. This was an increase over
2006 because of an expansion
of the reporting perimeter. The
fight against water leaks has made
advances, which is reflected in
an increase in the technical yield
from drinking water adduction
networks, but this progress
does not show up in the
indicators, which integrate
the new management contract
for drinking water for the city
of Algiers.
PROTECTING BIODIVERSITY During the “Grenelle de
l’Environnement”, SUEZ made
a commitment to integrate
biodiversity into the management Construction of the Tétouan wind farm commissioned in 2005 by Compagnie du Vent (Morocco)
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of its sites in France by the end
of 2009, and into its European
sites by 2012. In order to
assess its impact on fauna
and flora, SUEZ is precisely
mapping its industrial sites and
their surrounding environment
(proximity to sensitive areas,
etc.) using the Locamaps
mapping tool, developed
specifically for this
purpose.
When potentially sensitive sites
are identified (proximity
of wetlands where there is
fragile fauna, for example),
prevention and protection
measures are taken. In Belgium,
for example, an artificial pond
was created near a power plant to
encourage the reproduction
of a specific species of
amphibians. Compagnie
Nationale du Rhône integrates
biodiversity into the nature of
its business. For example, in
collaboration with local scientists
and associations, it develops
atlases of sites of ecological
interest, which are used as the
basis for preparing local action
plans along the Rhône, which is
now classified as a Natura
2000 zone.
Purifi cation station in Grasse Roumiguières (France)
The geological capture and storage of CO2 is a promising method for controlling greenhouse gas emissions
“
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10 COMMITMENTS FOR THE ENVIRONMENT Actively involved in the “Grenelle
de l’Environnement”, an enormous
consultation process that
took place in France to bring
political action to environmental
protection requirements,
SUEZ publicly made a series
of concrete commitments
which involve the entire Group.
As a professional in the energy,
water and waste service
businesses, SUEZ has made
a commitment to:
1 Provide solutions that
meet the ambitious objectives
of the Grenelle for building
energy efficiency by:
• proposing, together with our
partners, an integrated offer
that optimizes the following
aspects: emissions, energy
consumption, and interior
air quality;
• developing for these services
performance contracts over
time, including initial diagnostic
and tracking indicators in order
to provide customers with a
guarantee of real and lasting
energy savings (typically 20%).
2 Participate in the transition
to zero-carbon energy production,
both in France and abroad by:
• significantly raising our renewable
power production capacity
(hydraulic, photovoltaic, wind,
biomass): in France, to contribute
to the ambitious objective of
20% renewable energy in final
consumption in 2020; in Europe,
by raising our renewable energy
capacity to 18% starting in
2009; internationally, based on
resources and local priorities;
• developing renewable thermal
energy directly in buildings
and through the heating networks;
• participating actively in applied
research in carbon capture and
storage projects, and research and
development in fourth-generation
nuclear energy.
3 Promote the circular
economy based on the reduction,
reuse and recycling of
waste by:
• developing, in partnership with
manufacturers, deconstruction
or treatment processes in order
to improve the eco-design of
products; optimizing the recovery
of the materials that make up
those products;
• by setting an objective of
at least 35% for material and
biological recovery in France
by 2012.
Recovery of biogas at the Mably (France) storage unit
4 Fight waste by improving
the yield from drinking water
networks in order to save
the equivalent of the water
consumption, in France, of a
city of 700,000 residents by
the end of 2010.
5 Develop public-private
partnerships (concessions,
partnership agreements, etc.)
so that local communities
can make the investments
necessary to meet the wastewater
purification standards set by the
European Union, while limiting
their impact on the price of the
service.
6 Integrate biodiversity,
before the end of 2009, into
the management of the
Group’s sites in France and
set up action plans for
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Between July and October 2007, the French government launched an extensive consultation process to consider decisions to be made in the long term with respect to the environment and sustainable development. Dozens of meetings were held with politicians, unions, associations, businesses, researchers—organized around six themes (the fight against climate change, controlling energy demand, protection of biodiversity and natural resources, the environment and health), and each theme was divided into workshops (transportation, buildings, energy, waste, GMOs, etc.), in a process that covered all sustainable development issues. At the end of this work, a general report was submitted to the President of the Republic, in the presence of two Nobel peace prize winners, Wangari Maathaï and Al Gore, and the President of the European Commission. The report defines a consistent framework for French public action based on three priorities: the fight against global warming, the protection of biodiversity, and the reduction of pollution. A major series of measures was announced for sectors such as transportation, construction, agriculture and others. SUEZ was actively involved in this process. Several of its experts and officers actively participated in the work and final negotiations. All French employees were involved, primarily via an Intranet site that welcomed 2500 participants. SUEZ was then one of the first companies to announce clear commitments in line with the objectives of the “Grenelle”. .
GRENELLE DE L ENVIRONNEMENT»AN UNEQUALLED PROCESS
FOCUS
Biomass boiler- Heating network in La Rochelle (France)
sensitive sites; expand this
experiment to our European
sites by 2012.
7 Hire 110,000 employees
by 2012 and 20,000 people in
2008, who will contribute to our
development in the energy and
environment businesses.
As a responsible corporation,
SUEZ has made a commitment to:
8 Continue its efforts to
reduce its environmental
impact and make its employees
ambassadors of sustainable
development by:
• ensuring that 100% of the
permanent lighting in the Group’s
administrative buildings around
the world will save energy in
2009;
• systematically giving priority
to vehicles with lower CO2
emissions;
• raising awareness about
eco-citizen measures among all
Group employees by the end
of 2009 (and by the end of 2008
for all employees in France).
9 Continue active dialogue
with its stakeholders at
all governance levels in the
Group:
• defining by the end of 2008
a methodology for the
identification and census
of all stakeholders;
• regularly organizing cooperation
meetings at all levels of the
Group.
10 Convince its shareholders
that the Group’s sustainable
development strategy is a real
“asset” by:
• expanding communication on
these issues, particularly at each
Shareholders’ Meeting;
• expanding the role of the Ethics,
Environment and Sustainable
Development Committee within
the Group’s corporate governance
bodies.
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SOLIDARITY AND CORPORATE SPONSORSHIP
As an international Group, SUEZ is also a local player that provides essential services to a wide variety of customers. This local presence and these local ties imply a heavy social responsibility, which is reflected in the employment and hiring policies, but also in solidarity and sponsorship programs.
SUEZ encourages and supports
many solidarity programs
for disadvantaged groups.
A Sponsorship Charter provides
the guidelines for these programs,
which must be consistent with
the Group’s businesses and
its requirements in terms of
sustainable development. In
order to improve its effectiveness
in these areas, SUEZ generally
works in partnership with special
agencies and associations.
SUEZ FOUNDATION Created in 1992 under the aegis of
the Fondation de France, the SUEZ
Foundation in 2007 celebrated
15 years of a commitment to
children in trouble. Active in
approximately 100 countries, it
has supported more than 100
projects over 15 years, half of
them outside Europe. The projects
vary greatly and are designed to
ease suffering and promote the
integration and development of
children. The projects include
programs to fight disease (support
to families of children suffering
from AIDS in Germany or Chileans
suffering from mental illness),
prevention and integration
programs (vacation colonies for
children from poor neighborhoods
in Brazil, nurseries for immigrant
families in Belgium), educational
projects (academic assistance in
Peru and China, development of
an entrepreneurial spirit in Brazil),
and projects designed to raise
awareness about issues related to
society (integration, environmental
protection, etc.). Several hundreds
of thousands of children have
received support from the SUEZ
Foundation.
PARTNERSHIPS SUEZ has developed a number
of partnerships in sports, cultural
areas and the environment.
As a leading partner of the
French team and the French
Soccer League, it is also involved
in judo and handball. Its various
subsidiaries and sites support a
number of clubs and associations
at the local level. The Group
also supports certain individual
athletes. All these initiatives
are strictly framed by the
Sponsorship Charter, which
defines the ethical rules for all
sponsorships. As a specialist in
lighting museums and monuments,
through its Ineo subsidiary, SUEZ
is also a major partner of cultural
life. The Group is a partner of the
Guimet museum and the Louvre
in Paris, the Palais des Beaux-
Arts and the Magritte Museum
in Brussels, along with the
Metropolitan Museum of New York.
The Group also supports symbolic
projects for the protection of
the environment, such as the
International Polar Foundation or
the Living Tomorrow home of the
future project, which has attracted
more than 5 million visitors
to Brussels.
SOCIAL SOLIDARITY AND INTEGRATION The Group supports a number of
solidarity projects either initiated
by its employees or in which they
participate. All these projects are
also framed by the Sponsorship
Charter. Founded in 1994,
Aquassistance is a humanitarian
association that provides assistance
in the field to populations suffering
from a shortage of water, by
sending experts and equipment.
In 2007, it conducted projects in
Angola (water supply system and
hygiene in roughly 10 villages),
in Madagascar (water access and
sanitation), as well as in Congo
Casa Vhida, a home for children suffering from AIDS SUEZ Foundation (Brazil)
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(rehabilitation, etc.). Energy
Assistance, created in Belgium in
2001, works for similar goals in the
energy sector.
In 2007, SUEZ notably worked
in Burkina Faso, Burundi,
Congo-Kinshasa, Ethiopia, India,
and other countries in order
to connect isolated populations,
establish groups in schools
or clinics, install pumps
and more.
In its commitment to fight any
form of exclusion, SUEZ works to
promote the integration of disabled
persons and change society’s
perceptions about disabilities
and disease. Most of the Group’s
entities have initiated projects for
better inclusion of the disabled,
ZERO EMISSIONS IN ANTARCTICA Electrabel is a partner in the construction of a new Belgian scientific base in Antarctica. The Princess Elizabeth station, designed by the International Polar Foundation, can house 20 people during the four months of the Antarctic summer and will focus on the effects of global warming. This will be the first station of this type to use 100% renewable energy and recycle its waste. SUEZ is lending its technical expertise, along with other support, for the design of the station.
PROTECTION OF CHILDREN IN MOROCCO In Morocco, the SUEZ Foundation supports the Bayti (“My house”) association created by a pediatrician, which leads major projects: “Street children”to find homes for and reintegrate young outcasts in Casablanca, Meknès and Essaouira, or “little maids”to reduce domestic and sexual exploitation of young girls.
AID TO AIDS ORPHANS IN SOUTH AFRICA With 5.3 million persons with HIV/AIDS, South Africa leads all countries affected by the pandemic that has created hundreds of thousands of orphans. Since 2006, the SUEZ Foundation has supported an extra-school program set up by the François-Xavier Bagnoud association. Designed for orphans and children with the virus, the projects support the communities in the major townships of Soweto, Alexandra and Witbank.
both in public services and within
society as a whole.
In addition to the involvement
of Group employees, these
efforts on behalf of the
disabled also include the
Group’s publics:
For example, Lyonnaise des Eaux
sends it bills and its information
magazine in Braille on request
from customers with vision
problems. The SUEZ website is
also adapted for consultation by
those with vision problems. Finally,
in addition to its own publics,
SUEZ is also involved in a number
of projects to improve society’s
perception of disabled persons.
In Belgium, Electrabel is a
partner in a number of projects
BAYTI – educational support, customized educational workshops (Morocco)SUEZ Foundation
to improve society’s perception
of the disabled.
The company also supports the
Belgian Paralympic Committee
for the Olympic Games in Beijing.
Corporate Citizen Trophy.Gepsa is an Elyo subsidiary dedicated to reintegrating prisoners into society. It trains the prisoners in the energy service businesses, then prepares them for their return to society and assists them when they leave prison. In 2007 it won the Corporate Citizen Trophy.
HIGHLIGHT
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100
INANCIAL STATEMENTS
BALANCE SHEETFINANCIAL DATA
INDICATORSFINANCIAL STATEMENTS
BALANCE SHEETFINANCIAL DATA
INDICATORSFINANCIAL STATEMENTS
BALANCE SHEETFINANCIAL DATA
REPORTINGINDICATORS
FINANCIAL STATEMENTS
BALANCE SHEETFINANCIAL DATA
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OUR PERFORMANCE Whether on the social, environmental or financial level, SUEZ policy is based on the publication of reliable and certified financial data. In order to measure changes in its performance accurately, SUEZ continues to enhance the reporting systemit established in 2001 on the basis of indicators covering all its businesses.
102 • 2007 ENVIRONMENTAL REPORTING PROCEDURES
104 • ENVIRONMENTAL INDICATORS
108 • 2007 SOCIAL REPORTING PROCEDURES
110 • SOCIAL INDICATORS
114 • REPORT BY THE STATUTORY AUDITORS
116 • CONSOLIDATED BALANCE SHEET – ASSETS AND LIABILITIES
117 • CONSOLIDATED INCOME STATEMENT
118 • CASH FLOW
119 • APPLICATION OF THE U.N. GLOBAL COMPACT PRINCIPLES
OUR
PER
FOR
MA
NCE
101
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102
In order to ensure the transparency
and reliability of the data it
publishes, SUEZ has initiated the
progressive review by its Auditors
of the quality of certain indicators
related to the environmental and
corporate data published. The first
step performed for the data from
fiscal 2001 consisted of a review
of the reporting procedures for
performance indicators. In 2003
and 2004, the work performed led
to an opinion on the reporting
procedures for environmental
and corporate data and
on the quality of a limited number
of indicators for selected entities.
By incorporating the
recommendations made by
the Auditors, SUEZ continues
the reinforcement of its systems
of non-financial reporting.
In 2005, the scope of the
verification work was extended,
which allowed the Auditors to
expand the scope of their opinion
to all data, and not limit their
opinion only to the entities
visited. In 2006, the number
of indicators verified was
increased and new methodology
guides were distributed following
the comments made by the
auditors during the previous
fiscal year.
2007 ENVIRONMENTAL REPORTING PROCEDURES
For environmental reporting,
the year 2007 was marked by
the completion of work in the
following areas: clarification
of the rules for definition of the
reporting scope with regard to
closed landfills and sub-contracted
materials services, revision
of certain coherence tests,
and definitions and revision of
existing methodology references
(SO2, NOx and PM emissions,
mercury emissions, water
consumption and waste). A review
of Management indicators has
been carried out in order to
reduce their number and increase
their relevance.
Special attention has been paid
to improvement of the CERIS tool.
CERIS is an IT solution for
environmental reporting, developed
by SUEZ in 2003 in its first
version. It enables the
management of the network
of environment correspondents
and coordinators, the management
and documentation of the
environmental reporting scope,
the input, checking and
consolidation of indicators,
the production of reports and
finally the supply or publication
of the documentation necessary
for the collection of data and the
control of information feedback.
In addition, CERIS has been
reviewed by the Group’s internal
audit department.
In 2007, the migration of the
CERIS reporting solution to a new
version enabled SUEZ to put the
accent on strengthening the
system for controlling the figures
input by the business units. CERIS
now covers all the business lines
and is today deployed directly
inside certain business lines and
subsidiaries. In 2007, this system
was used at business line level
for the Water business of SUEZ
Environnement, which greatly
increased the quantity of data
managed within the system.
The procedures for defining the
environmental reporting scope are
such as to cover the performance
and impact as a whole for the
facilities in which the Group holds
technical operational control.
The legal entities included in the
reporting scope were those whose
operations were relevant in terms
of environmental impact
(excluding, therefore, energy
trading and financial and
engineering activities), and
that were either fully
or proportionately consolidated
(based on the financial
RADD_SUEZ_100_124_GB_V7.indd Sec1:102 26/05/08 18:17:01
consolidation rules). Those entities
report the performance and impact
of the facilities in which they hold
technical operational control,
including facilities operated on
behalf of third parties. These
totals are then consolidated
depending on the level of financial
consolidation, with the exception
of the sites or operations covered
by SMEs, which are fully
consolidated.
On the basis of consolidated
revenues, relevant revenues
(after excluding the revenues
generated by the activities that
are not considered relevant in
terms of environmental impact)
are defined and identified for each
legal entity. The coverage of these
relevant revenue figures by each
of the environmental management
indicators is carried over.
The set of procedures for reporting
environmental data consists of
a generic procedure based on
standard guidelines to be used
at the appropriate levels of the
reporting process. The deployment
of the procedures throughout
the Group relies on a network
of duly authorized environmental
agents and coordinators.
These procedures and work
guidelines at the Group and
business line level detail the
collection, control, consolidation,
validation and transmission
of environmental data at the
various levels of the organization
as well as the rules that define
the scope and consolidation.
They include technical documents
that provide methodological
guidelines for calculating certain
indicators. The list of the entities
included in the scope
of environmental reporting
is attached to the procedures
and guidelines.
The definitions of indicators used
to measure environmental
performance in the Group’s
activities have been revised
on the basis of the Auditors’
comments. They have also
benefited from comments by
operational managers represented
in a dedicated work Group.
The entire documentation is
available on request from the
Group’s environment division.
The following should be noted about the data published in this report and in the Activity and Sustainable Development Report:
1 SUEZ has established a new
indicator to measure its mercury
emissions. However, because the
concentration measured is close
to the detection limits, the values
reported are not sufficiently
reliable for use in monitoring
performance over time. In
addition, some entities do not yet
take these measurements
2 Responsible for the waste
generated by its activities, the
SUEZ Group maintains indicators
of the value enhancement of its
waste. However, concepts of waste
and recovery vary between
countries and local regulations.
In addition, the data on recovered
sludge include the tonnage of
incinerated sludge without
waste-to-energy recovery. With
a view to continually improving
the indicators it uses, the Group
intends to examine closely those
indicators and underlying concepts
for its next reporting so as
to harmonize waste accounting
and tracking.
3 The reliability of the scope of
the environmental reporting is one
of SUEZ’s priorities which evolves
in an international context of the
sale and acquisition of businesses.
In this respect, the Group has
undertaken an internal review
for a better management of that
scope. This will result among
other things in the modification
of existing procedures or the
creation of a new procedure
dedicated to the definition of the
scope and applicable as of the
next environmental report. This
approach has been motivated
by the fact that two SEI entities,
considered as equity affiliates,
were included by error
in the 2006 reporting.
4 Conscious of the stakes
involved in the management
of Water, SUEZ is also pursuing
its efforts in the global control
of water consumption, for all uses
and types of site combined.
Particular attention will be paid
to the risks of double counting
and the possible confusion
between industrial water use
and cooling water.
5 For consistency, the factor
for conversion of thermal energy
produced (GWhTh) into electrical
energy (GWhe) is maintained at
0.35 in order to show performance
development during 2007. It will
be revised if necessary for the
work groups in 2008.
6 It should be noted that only
leachings from Class 2 Storage
Centers are reported.
7 Indicators concerning
auto-consumption of energy for
energy producing activities have
been eliminated and replaced by
more relevant indicators that allow
measurement of the energy
efficiency of such operations.
8 The increase in the number
of sites covered by certified
systems of originates in changes
in the methods adopted by certain
entities during the fiscal year. The
concept “site” applies at present
to the lowest level (industrial site)
and not to intermediate levels
(regional entities) as previously.
The correspondence of the Group’s
environmental performance
indicators with the New Economic
Regulations and the Global
Reporting Initiative is documented
in the summary table of
environmental performance
published in the Annual
Activity and Sustainable
Development Report.
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104
MANAGEMENT Environmental commitment policy or declaration %REV 80.7 83.7 90.2 89.8 92.2 100.0 Environmental program %REV 62.8 62.7 65.3 69.6 75.2 100.0 ��Certified Environmental Management Systems (EMS) %REV 42.7 45.7 48.2 47.9 50.3 95.3 � Sites or activities covered by certified EMS - ISO 14001 Nb nd 865 925 1,082 1,254 (3) 100.0�� Sites or activities covered by certified EMS - EMAS Nb nd 10 6 7 11 100.0� Sites or activities covered by certified EMS - Other local standards Nb nd 160 86 1,163 (2) 3,210 (4) 100.0 Environmental analyses %REV 55.7 60.9 57.7 58.0 57.2 99.8 Environmental risk prevention plans %REV 49.6 55.0 60.9 65.1 63.8 99.3 Environmental crisis management plans %REV 78.6 64.6 70.1 76.9 70.5 98.9 Environmental reports published by rank N-2 companies %REV 52.6 42.3 45.2 46.9 41.4 98.1 Environmental expenditures (Capex + Opex) kEuros 2,287,675 2,268,023 2,679,112 3,109,865 2,670,400 (5) 100.0 Complaints related to environmental damage Nb 94 62 111 54 34 99.4 Judgements related to environmental damage Nb 22 19 29 9 16 99.8 Indemnities paid for judgements (related to accidents affecting the environment) kEuros 1,485 327 384 119 667 99.6 ENERGY ���Installed capacity - Electricity and heat - Total renewable sources MWeq 4,834 4,984 5,945 6,549 9,755 80.1��� Installed capacity - Electricity - Small hydraulic MW 230 252 100.0��� Installed capacity - Electricity - Large hydraulic MW 5,266 8,244 (6) 100.0��� Installed capacity - Electricity - Hydraulic MW 4,388 4,388 5,292 5,496 8,495 100.0��� Installed capacity - Electricity - Wind MW 24 23 48 128 238 100.0��� Installed capacity - Electricity and heat - Geothermal MWeq 18 18 19 19 22 100.0��� Installed capacity - Electricity and heat - Biomass MWeq 142 171 185 318 373 100.0��� Installed capacity - Electricity and heat - Biogas MWeq 91 120 130 152 148 80.1��� Installed capacity - Electricity and heat - Incineration (biodegradable portion of waste) MWeq 170 264 271 436 479 � 100.0� Quantity of electricity and heat produced - Renewable sources GWheq 26,008 23,388 22,951 20,864 44,959 (11) 100.0���Primary energy consumption - Total GWh 278,522 292,864 293,444 309,262.6 (1) 319,024 95.3��� Primary energy consumption - Energy production GWh 276,393 290,193 289,118 295,573.1 (1) 314,082 100.0��� Primary energy consumption - Gas transport, distribution and storage GWh 1,323 1,574 1,477 2,097 1,900 100.0��� Primary energy consumption - Waste treatment GWh 807 974 2,181 2,761 2,356 100.0��� Primary energy consumption - Wastewater collection and treatment GWh 0 123 669 651 686 95.3���Electricity consumption - Total GWh nd 4,512 4,948 10,890 4,946 98.8��� Electricity consumption - Energy production GWh nd 1,147 2,146 8,251 2,072 (12) 100.0��� Electricity consumption - Waste treatment GWh 722 315 350 209 244 99.9��� Electricity consumption - Wastewater collection and treatment GWh 2,111 1,154 1,067 1,050 1,067 98.8��� Electricity consumption - Drinking water treatment and distribution GWh 1,982 1,896 2,026 1,380 1,563 99.1��� Energy efficiency of fossil-fuel plants (inc. Biomass) (8) % – – 42.0 100.0 AIR Total Green House Gas (GHG) emissions T.eq.CO2 78,710,688 81,778,664 79,593,754 80,692,788 82,865,722 95.3���Total Green House Gas (GHG) emissions (excluding vehicle fleet) T.eq.CO2 81,153,251 78,987,093 80,040,783 82,144,335 100.0��� CO2 emissions - Energy production tons 71,086,899 74,240,459 71,974,721 74,397,654 (1) 76,571,027 100.0��� CO2 emissions - Gas transport & storage tons 263,679 286,402 263,395 288,538 271,262 100.0��� CH4 emissions - Gas transport, storage & distribution(9) tons 25,340 16,362 13,625 10,222 9,875 (13) 100.0��� GHG emissions - Landfills T.eq.CO2 4,179,943 3,527,597 3,669,788 2,400,410 2,654,691 100.0��� GHG emissions - Incineration (non biodegradable portion of waste) T.eq.CO2 2,508,921 2,712,763 2,672,160 2,626,217 2,319,317 100.0��� GHG emissions - Wastewater treatment T.eq.CO2 139,098 42,420 120,910 113,319 120,663 95.3���CO2 emissions - Vehicle fleet tons 868,455 625,413 606,662 651,978 721,387 98.7���NOx emissions tons 117,076 124,502 110,589 104,785 (1) 98,037 (14) 100.0���SO2 emissions tons 192,339 226,155 189,270 204,196 (1) 202,151 100.0���Particulate matters emissions tons 13,508 16,618 9,882 9,976 9,974 100.0���Mercury emissions kg 310 (10) 96.8
ENVIRONMENTAL INDICATORS Units SUEZ SUEZ SUEZ SUEZ SUEZ Coverage 2007 2003 2004 2005 2006 2007 2007
� Reviewed by the Statutory Auditors. (1) In 2006, the fi gures for the two SEI plants, Al Ezzel and Tractebel Bahrain, excluded from the scope
of reporting, were consolidated.– Tractebel Bahrain: combined cycle with potable water production – 938 MW – 5,681 m3/h;– Al Ezzel: combined cycle - 954 MW.
(2) In 2007, the indicator also included the ISO 9001 v 2000 sites, which were reported separately in previous years. Thus, the 2006 fi gure was revised to also include the ISO 9001 v 2000 sites and allow a comparison between 2006 and 2007.
(3) The number of sites certifi ed ISO 14001 rose sharply, primarily in the water and waste treatment sector (Czech Republic and France), at SES (Great Britain and Spain) and at Electrabel (SHEM).
(4) The defi nition of the indicator was changed and includes the ISO 9001 v 2000 sites with an environmental component. 2,575 sites were reported by Lyonnaise des Eaux.
(5) Decline in environmental expenditures, primarily in the waste services sector. (6) Inclusion of CNR in the scope of reporting.
(7) CAPEX = Term describing investments in intangible assets and property, plant and equipment. OPEX = Term referring to the expenses and costs related to the operations of the company (personnel costs, raw materials, etc.)
(8) New indicator replacing energy auto-consumption for energy production activities.
(9) Factor 21 used to calculate the impact in tons equivalent CO².(10) New indicator reviewed. See the methodological note on this subject. (11) Inclusion of CNR in the scope of reporting and increase in hydroelectric production because of heavy
rain volumes last year in Latin America (primarily Itasa and Tractebel energia).(12) In 2006, electric auto-consumption was added. This year, it was decided to return to the 2005 situation
and no longer include it. (13) Decrease primarily the result of the efforts made in the LNG business to reduce methane emissions
during the unloading of tankers. (14) Decline partially due to the modernization of equipment at the Polanieç plant (SEE), and based
on the same Electrabel scope, inclusion of treatment facilities (SOx, NOx) at the Ruien plant, shutdown of the Monceau coal plant, and reduction in the production from the Amercœur plant. In the SES branch, the emissions factors used in previous years indicated emissions that were higher than reality. These emissions factors were refi ned this year.
92.2 75.2 50.3
1,254 , (3) 11
3,210 (4) 57.2 63.8 70.5 41.4
2,670,400 (5)
34 16
667
9,755 252
8,244 (6)
8,495 238
22 373 148 479
44,959 (11) 319,024 314,082
1,900 2,356
686 4,946 2,072 (12)
244 1,067 1,563
42.0
82,865,722 82,144,335 76,571,027
271,262 9,875 (13)
2,654,691 2,319,317
120,663 721,387 98,037 (14)
202,151 9,974
310 (10)
RADD_SUEZ_100_124_GB_V7.indd Sec1:104 26/05/08 18:17:01
MANAGEMENT Environmental commitment policy or declaration %REV 82.3 94.0 97.0 90.5 3 4.8 Environmental program %REV 77.3 94.0 57.3 86.3 3 4.8 ��Certified Environmental Management Systems (EMS) %REV 62.0 31.4 34.2 73.3 3 4.8� Sites or activities covered by certified EMS - ISO 14001 No. 50 41 184 979 3 4.8�� Sites or activities covered by certified EMS - EMAS No. 5 0 1 5 3 4.8� Sites or activities covered by certified EMS - Other local standards No. 1 0 92 3,117 3 4.8 Environmental analyses %REV 76.5 80.6 37.7 59.6 3-4 – Environmental risk prevention plans %REV 74.0 92.7 30.0 85.1 6 4.9 Environmental crisis management plans %REV 74.3 93.6 40.5 92.9 6 4.9 Environmental reports published by rank N-2 companies %REV 63.6 22.1 21.5 63.9 6 – Environmental expenditures (Capex + Opex) kEuros 295,950 153,382 62,705 2,160,690 5 EN30 Complaints related to environmental damage No. 4 9 2 19 8 EN28 Judgements related to environmental damage No. 0 6 0 10 8 EN28 Indemnities paid for judgements (related to accidents affecting the environment) kEuros 0 1 0 666 8 EN28 ENERGY ���Installed capacity - Electricity and heat - Total renewable sources MWeq 4,283 4,704 220 548 1 EN5 - EN6���� Installed capacity - Electricity - Small hydraulic MW 203 0 49 – 1 EN5 - EN6���� Installed capacity - Electricity - Large hydraulic MW 3,699 4,545 0 – 1 EN5 - EN6���� Installed capacity - Electricity - Hydraulic MW 3,901 4,545 49 – 1 EN5 - EN6���� Installed capacity - Electricity - Wind MW 234 0 4 – 1 EN5 - EN6���� Installed capacity - Electricity and heat - Geothermal MWeq 0 0 22 – 1 EN5 - EN6���� Installed capacity - Electricity and heat - Biomass MWeq 122 159 92 – 1 EN5 - EN6���� Installed capacity - Electricity and heat - Biogas MWeq 0 0 9 139 1 EN5 - EN6���� Installed capacity - Electricity and heat - Incineration (biodegradable portion of waste) MWeq 26 – 44 409 1 EN5 - EN6��Quantity of electricity and heat produced - Renewable sources GWheq 18,289 22,930 470 3,270 1 EN5 - EN6����Primary energy consumption - Total GWh 159,415 127,930 28,136 3,544 1 EN3���� Primary energy consumption - Energy production GWh 158,365 127,080 28,136 502 1 EN3���� Primary energy consumption - Gas transport, distribution and storage GWh 1,050 850 0 – 1 EN3���� Primary energy consumption - Waste treatment GWh 0 0 0 2,356 1 EN3���� Primary energy consumption - Wastewater collection and treatment GWh 0 0 0 686 1 EN3���Electricity consumption - Total GWh 1,609 0 261 3,076 1 EN3���� Electricity consumption - Energy production GWh 1,609 0 261 202 1 EN3���� Electricity consumption - Waste treatment GWh 0 0 – 244 1 EN3���� Electricity consumption - Wastewater collection and treatment GWh 0 0 – 1,067 1 EN3���� Electricity consumption - Drinking water treatment and distribution GWh 0 0 – 1,563 1 EN3��� Energy efficiency of fossil-fuel plants (inc. Biomass) (8) % 44.3 40.7 36.0 – 1 EN5 - EN6 AIR�� �Total Green House Gas (GHG) emissions T.eq.CO2 40,196,480 30,897,757 6,328,169 5,443,314 1 EN16���Total Green House Gas (GHG) emissions (excluding vehicle fleet) T.eq.CO2 40,101,040 30,890,491 6,328,169 4,824,634 1 EN16���� CO2 emissions - Energy production tons 39,925,328 30,587,587 6,058,111 0 1 EN16���� CO2 emissions - Gas transport & storage tons 118,760 152,502 0 0 1 EN16���� CH4 emissions - Gas transport, storage & distribution(9) tons 2,712 7,162 1 0 1 EN16���� GHG emissions - Landfills T.eq.CO2 0 0 0 2,654,691 1 EN16���� GHG emissions - Incineration (non biodegradable portion of waste) T.eq.CO2 0 0 270,037 2,049,280 1 EN16���� GHG emissions - Wastewater treatment T.eq.CO2 0 0 – 120,663 1 EN16����CO2 emissions - Vehicle fleet tons 95,440 7,266 0 618,681 1 EN16����NOx emissions tons 39,147 37,826 15,560 5,504 1 EN20���SO2 emissions tons 42,553 153,621 5,711 266 1 EN20���Particulate matters emissions tons 1,732 8,084 73 85 1 EN20���Mercury emissions kg 37 3 – 270 1 EN20
Units SEE SEI SES SE CORRESPONDENCE 2007 2007 2007 2007 2007 NRE GRI3
UNITS OF MEASUREMENT
%REV = percentage of revenues
No. = Number
W = Watt = unit of measurement of power per unit of time: 1 joule/second
Wh = Watt hour = unit of measurement of the energy developed by 1 W of power for 1 hour - = 3,600 joules
We = Electrical Watt / Whe = Electrical Watt hour = unit of measurement of power and electrical energy
Wth = Thermal Watt / Whth = Thermal Watt hour = unit of measurement of power and thermal energy
Weq = Watt equivalent = unit of measurement of electrical and thermal power (for 2007, SUEZ set the equivalence of Whth at 0.35 Wheq)
Wheq = Watt hour equivalent = unit of measurement of electrical and thermal energy (for 2007, SUEZ set the equivalence of Whth at 0.35 Wheq)
Bq = Becquerel = unit of measurement of radioactivity
t = Ton = 1,000 kilograms
T.eq.CO2 = tons equivalent CO2 (1 T CH4 = 21 T CO2)
m3 = cubic meter
k = Kilo = 103
M = Mega = 106
G = Giga = 109
T = Tera = 1012
4,283 4,704 220 548 203 0 49 –
3,699 4,545 0 – 3,901 4,545 49 –
234 0 4 – 0 0 22 –
122 159 92 – 0 0 9 139
26 – 44 409 18,289 22,930 470 3,270
159,415 127,930 28,136 3,544 158,365 127,080 28,136 502
1,050 850 0 – 0 0 0 2,356 0 0 0 686
1,609 0 261 3,076 1,609 0 261 202
0 0 – 244 0 0 – 1,067 0 0 – 1,563
44.3 40.7 36.0 –
40,196,480 30,897,757 6,328,169 5,443,314 40,101,040 30,890,491 6,328,169 4,824,634 39,925,328 30,587,587 6,058,111 0
118,760 152,502 0 0 2,712 7,162 1 0
0 0 0 2,654,691 0 0 270,037 2,049,280 0 0 – 120,663
95,440 7,266 0 618,681 39,147 37,826 15,560 5,504 42,553 153,621 5,711 266 1,732 8,084 73 85
37 3 – 270
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106
WATER ��Water consumption - Industrial process - Total Mm³ 47.35 62.63 73.57 78.13 71.41 72.7��� Surface water Mm³ 17.31 28.86 45.31 54.68 53.16 72.7��� Ground water Mm³ 3.63 5.29 4.62 4.52 4.14 100.0��� Public networks Mm³ 25.20 28.47 23.64 18.94 14.11 (15) 97.7�� Water consumption - Cooling process - Total Mm³ 140.99 145.24 147.06 142.04 156.06 71.6�� Evaporated surface water Mm³ 129.50 133.98 136.51 130.52 140.71 71.6��� Ground water Mm³ 7.85 7.72 6.83 7.11 7.27 100.0�� Public networks Mm³ 3.64 3.54 3.73 4.41 8.09 99.9 Drinking water delivery Quantity input to the network Mm³ 7,291 5,599 5,154 3,213 3,425 96.0 Coverage rate of the population % 93 92 93 92 97 100.0���� ���Networks technical yield % 73 73 73 75 74 100.0 Wastewater treatment Quantity of wastewater treated Mm³ 2,396 2,244 2,160 2,017 2,211 95.3 Coverage rate of the population % 78 78 84 95 96 100.0 Length of networks km 95,540 82,741 84,672 76,411 73,137 98.4 Number of WWTP - Treatment capacity � 120 kg DBO5/day No. 802 752 743 740 733 95.3 Number of WWTP - Treatment capacity � 120 kg DBO5/day No. 777 741 733 714 843 95.3�� Pollution load treated (tons of DBO5 per year) tons 1,033,288 590,869 503,865 471,504 489,497 95.1 WASTE �� Specific waste � Fly ashes, Refioms tons 3,598,542 3,280,292 2,998,283 3,269,161 3,224,969 100.0�� Bottom ashes tons 2,373,793 2,859,815 2,663,097 2,688,399 2,758,263 100.0�� Desulphurization by-products tons 199,738 219,529 153,415 203,164 179,739 100.0�� Sludge from wastewater treatment plants (WWTP) tons 846,566 583,365 507,188 489,486 438,651 95.3�� Non-specific waste � Other non-hazardous waste tons 1,946,437 3,765,568 3,673,113 4,939,578 446,074 (16) 99.7�� Other hazardous waste tons 187,604 114,714 106,430 84,157 210,234 (17) 100.0���Recovered waste and by-products (excluding sludge recovery) tons 3,701,343 3,991,200 4,154,354 3,813,934 4,198,508 (18) 93.5���Recovered sludge tons 231,209 292,888 264,878 275,445 246,476 95.1 �� Quantity of leachates collected m³ 3,097,871 3,292,610 4,030,936 2,935,769 3,461,925 100.0���Quantity of leachates treated (internally or externally) m³ 3,105,995 3,718,966 4,185,674 3,075,266 3,366,311 100.0�� Energy recovery from waste � Electricity sold (Incineration + landfills) GWh 1,848 2,143 2,142 2,516 2,624 100.0�� Energy recovery from waste - Heat sold (Incineration) GWh nd 2,346 2,479 1,245 1,379 100.0 NUCLEAR Radioactive gaseous emissions Rare gases TBq nd 18.4 14.1 18.2 33.5 100.0 Iodine GBq nd 0.0700 0.0700 0.1000 0.1629 100.0 Aerosols GBq nd 0.0000 0.0400 1.7300 0.0144 100.0 Radioactive nuclear waste (weak and average activity) m³ 177.9 147.9 180.7 229.1 272.3 100.0 Radioactive liquid discharge - Beta et Gamma emitters GBq nd 44.63 26.25 34.41 24.29 100.0 Radioactive liquid discharge - Tritium TBq nd 87.50 84.68 90.18 110.83 100.0 VEHICLES Total number of vehicles No. 16,971 13,226 13,960 12,420 13,138 100.0 Number of ‘green’ vehicles No. 8,747 180 10,785 11,598 11,662 95.6 Number of ‘alternative fuels’ vehicles No. 421 542 651 95.4 Part of ‘green’ vehicle fleet in total vehicle fleet % 51.5 1.4 77.2 93.4 88.8 95.6 Part of ‘alternative fuels’ vehicle fleet in total vehicle fleet % 3.0 4.4 5.0 95.4 ECO-EFFICIENCY Energy produced/CO2 emissions related to energy production MWheq/T 2.53 2.51 2.51 2.43 2.83 – Energy produced/SO2 emissions related to energy production GWheq/T 0.93 0.85 0.99 0.95 1.10 – Energy produced/NOX emissions related to energy production GWheq/T 1.56 1.50 1.69 1.84 2.28 – Natural gas transported/CH4 emissions related to gas transport GWh/T 23.26 49.60 57.52 84.50 85.26 – Natural gas distributed/CH4 emissions related to gas distribution GWh/T nd 96.20 106.40 77.75 65.04 –Wastewater treatment - Sludge recovered/Sludge produced by WWTP % 27 50 52 56 56 – Incineration - Energy sold/incinerated waste with energy recovery kWh/T 277 373 376 375 388 – Landfills - Energy sold (biogas)/landfilled waste kWh/T 14 20 20 37 40 – Tonnage of recovered waste (energy and matter)/Tonnage of waste treated % 29 34 33 42 45 –
ENVIRONMENTAL INDICATORS
� Reviewed by the Statutory Auditors. (15) In previous years, the Norvegie cooling water (SITA France) was also included in the industrial water.
This was also true for the TERIS France entity. This represented a double counting of about 2.7 million m3 in 2006.
(16) In 2007, refuse from sorting and composting in the waste services sector is no longer included in this indicator; this is why there is a signifi cant variance from previous years.
(17) Increase due primarily to operations in the waste services sector at TERIS Spain and SITA Walloon and at Electrabel in Belgium.
(18) Includes all specifi c waste (fl y ash, bottom ash, desulphurization by-products) and non-specifi c waste (hazardous and non-hazardous).
71.41 53.164.14
14.11 (15)
156.06 140.71
7.27 8.09
3,425 97 74
2,211 96
73,137 733 843
489,497
3,224,969 2,758,263
179,739 438,651
446,074 (16) 210,234 (17)
4,198,508 (18) 246,476
3,461,925 3,366,311
2,624 1,379
33.5 0.1629 0.0144 272.3 24.29
110.83
13,138 11,662
651 88.8
5.0
2.83 1.10 2.28
85.26 65.04
56 388
40 45
Units SUEZ SUEZ SUEZ SUEZ SUEZ Coverage 2007 2003 2004 2005 2006 2007 2007
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WATER���Water consumption - Industrial process - Total Mm³ 10.78 40.76 15.90 3.97 1 EN8���� Surface water Mm³ 4.41 34.73 14.02 0.00 1 EN8���� Ground water Mm³ 1.66 2.27 0.20 0.00 1 EN8���� Public networks Mm³ 4.70 3.75 1.68 3.97 1 EN8�� Water consumption - Cooling process - Total Mm³ 117.25 34.12 0.57 4.12 1 EN8���� Evaporated surface water Mm³ 117.18 22.62 0.00 0.91 1 EN8���� Ground water Mm³ 0.02 6.87 0.38 0.00 1 EN8���� Public networks Mm³ 0.06 4.63 0.18 3.21 1 EN8 Drinking water delivery Quantity input to the network Mm³ – – – 3,425 1 – Coverage rate of the population % – – – 97 – – � Networks technical yield % – – – 74 – – Wastewater treatment Quantity of wastewater treated Mm³ – – – 2,211 2 EN26 Coverage rate of the population % – – – 96 2 EN26 Length of networks km – – – 73,137 2 EN26 Number of WWTP - Treatment capacity � 120 kg DBO5/day Nb – – – 733 2 EN26 Number of WWTP - Treatment capacity � 120 kg DBO5/day Nb – – – 843 2 EN26���� Pollution load treated (tons of DBO5 per year) tons – – – 489,497 2 EN26 WASTE���Specific waste � Fly ashes, Refioms tons 785,406 2,150,159 30,085 259,319 1 EN22���� Bottom ashes tons 411,039 986,856 97,922 1,262,447 1 EN22���� Desulphurization by-products tons 179,739 0 0 0 1 EN22���� Sludge from wastewater treatment plants (WWTP) tons 0 0 0 438,651 1 EN22���Non-specific waste � Other non-hazardous waste tons 87,767 31,751 24,334 302,222 1 EN22���� Other hazardous waste tons 60,877 1,606 2,599 145,152 1 EN22���Recovered waste and by-products (excluding sludge recovery) tons 1,460,847 1,531,899 63,556 1,142,206 1 EN22���Recovered sludge tons – – 0 246,476 1 EN22�� Quantity of leachates collected m³ – – – 3,461,925 1 EN22���Quantity of leachates treated (internally or externally) m³ – – – 3,366,311 1 EN22���Energy recovery from waste � Electricity sold (Incineration + landfills) GWh – – 4 2,620 1 EN6���� Energy recovery from waste - Heat sold (Incineration) GWh – – 375 1,005 1 EN6 NUCLEAR Radioactive gaseous emissions Rare gases TBq 33.5 – – – 1 – Iodine GBq 0.1629 – – – 1 – Aerosols GBq 0.0144 – – – 1 – Radioactive nuclear waste (weak and average activity) m³ 272.3 – – – 1 – Radioactive liquid discharge - Beta et Gamma emitters GBq 24.29 – – – 1 – Radioactive liquid discharge - Tritium TBq 110.83 – – – 1 – VEHICLES Total number of vehicles Nb 80 – nd 13,058 1 EN29 Number of ‘green’ vehicles Nb 0 – nd 11,662 1 EN29 Number of ‘alternative fuels’ vehicles Nb 0 – nd 651 1 EN29 Part of ‘green’ vehicle fleet in total vehicle fleet % 0.0 – – 89.3 1 EN29 Part of ‘alternative fuels’ vehicle fleet in total vehicle fleet % 0.0 – – 5.0 1 EN29 ECO-EFFICIENCY Energy produced/CO2 emissions related to energy production MWheq/T 3.33 2.42 1.78 2.50 1 EN16 Energy produced/SO2 emissions related to energy production GWheq/T 3.12 0.48 1.97 19.25 1 EN20 Energy produced/NOX emissions related to energy production GWheq/T 3.39 1.96 0.72 0.93 1 EN20 Natural gas transported/CH4 emissions related to gas transport GWh/T 164.63 38.33 – – 1 EN16 Natural gas distributed/CH4 emissions related to gas distribution GWh/T 0.00 65.04 62.87 – 1 EN16 Wastewater treatment - Sludge recovered/Sludge produced by WWTP % – – – 56 1-2 EN22 Incineration - Energy sold/incinerated waste with energy recovery kWh/T – – – 365 1-2 EN6 Landfills - Energy sold (biogas)/landfilled waste kWh/T – – – 40 1-2 EN6 Tonnage of recovered waste (energy and matter)/Tonnage of waste treated % – – – 45 1-2 EN6
Units SEE SEI SES SE CORRESPONDENCE 2007 2007 2007 2007 2007 NRE GRI3
785,406 2,150,159 30,085 259,319 411,039 986,856 97,922 1,262,447 179,739 0 0 0
0 0 0 438,651
31,751 24,334 302,222 1 60,877 1,606 2,599 145,152
1,460,847 1,531,899 63,556 1,142,206 – – 0 246,476– – – 3,461,925 – – – 3,366,311
– – 4 2,620 – – 375 1,005
33.5 – – – 0.1629 – – – 0.0144 – – – 272.3 – – – 24.29 – – –
110.83 – – –
80 – nd 13,058 0 – nd 11,662 0 – nd 651
0.0 – – 89.3 0.0 – – 5.0
3.33 2.42 1.78 2.50 3.12 0.48 1.97 19.25 3.39 1.96 0.72 0.93
164.63 38.33 – – 0.00 65.04 62.87 –
– – – 56 – – – 365 – – – 40 – – – 45
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108
As in previous fiscal years,
the specialized services of the
Statutory Auditors were at the
forefront of a mission to verify
selected company indicators
published by the Group. Issuing
from the work carried out on
entities’ sites and at the head
offices of the Business Lines and
the Group, the recommendations
made in 2007 have enabled
SUEZ to undertake a variety
of actions for progress.
Developed in close collaboration
with the teams from the Business
Lines and entities, the “User’s
Guide” contains all the definitions
and procedures that comprise the
Group’s shared guidelines. Since
its conception in 2005, its content
has been enriched and made more
accurate. Cooperation has been
intensified with the Health and
Safety Network, which manages
consolidation of data linked to
accidents at work.
In addition, thanks to the
additional functions provided
by the new Group reporting tool
(“Magnitude”, see point 1 of
the note), control procedures
during the feedback of social
data are both more extensive and
2007 SOCIAL REPORTING PROCEDURES
easier to employ. Together these
developments have created greater
uniformity and increased reliability
in reporting practices on the part
of correspondents.
Since 2005, a series of new
indicators has been progressively
introduced into the reporting
tool and tested by the reporting
correspondents. These indicators
will be published as soon as
they meet the requirements of
quality and reliability and the
scope of their cover is sufficiently
representative.
The quantitative corporate
data in this report comes from
the HR phase of Magnitude,
a Group consolidation tool.
After collection, it was processed
and consolidated according
to clearly defined procedures
and criteria.
1 Magnitude, a consolidation
software package, collects,
processes, and reports the
data entered by local legal
entities that are subsidiaries
of the SUEZ Group. Each
company, including those
in the HRD phase, is dealt
with according to the following
financial consolidation method:
full consolidation (FC),
proportional consolidation (PC),
and equity affiliates (EA).
The analyses of the companies
in this report deal exclusively
with entities in the FC phase,
in which SUEZ controls
both capital and management.
Once a company is included
in SUEZ’s financial statements
as fully consolidated,
its company data are
completely integrated,
no matter how much capital
SUEZ may own in the
company.
2 Scope of reporting. A scope of reporting is attached to
each indicator, corresponding to
the coverage of the indicator as a
percentage of the Group workforce
(workforce of companies fully
consolidated in the SUEZ financial
results). Some companies may not
have sent their data, or there may
be some inconsistencies
in the data provided. This will
cause us to exclude the data
in question from the scope of
reporting.
3 Two methods for
the consolidation of indicators
are used:
– aggregation for structural data,
workforce flow, working conditions,
training and safety data;
– individual weighting for salaries.
4 External data used for the
calculation of salary indicators are
provided by UBIFRANCE as part
of a country information collection
agreement by the network of local
economic missions. This data
is supplemented by statistics
from the United Nations (United
Nations Population Fund), the
World Bank, and the OECD.
UBIFRANCE procedures
are ISO 9000 certified, and
information provided as
part of this partnership is
available from the SUEZ
head office.
RADD_SUEZ_100_124_GB_V7.indd Sec1:108 26/05/08 18:17:05
The following should be noted regarding the data published in this report:
1 The total number of
employees in the divisions is
703 persons lower than the total
published number of employees.
This difference is due primarily
to the number of employees at
headquarters and to the number
of employees in financial sector
activities who are not attached
to one of the operational branches.
2 The distribution of
employees by socio-professional
category (SPC) decided in 2005
is maintained. Administrative
employees are accounted for
with the Senior Technicians and
Supervisors (techniciens
supérieurs et agents de
maîtrise or T.S.M.) for greater
consistency. The SEE branch has
recorded a number of movements
to the TSM category, in
order to stabilize the
distribution of its workforce
by SPC and be consistent
with the Group definitions.
3 Unlike social reporting, health
and safety reporting includes data
from entities leaving the Group or
acquired during the year, taking into
account the criteria for operational
control or reliability of the data.
This aspect is not yet handled
identically by all the branches and
will be clarified during revision of
the reporting procedure for health
and safety. This situation results in
a slight difference in the employee
perimeter covered by the two
reports.
4 The employee turnover
indicator only takes account of
terminations and resignations.
It is calculated from half-yearly
movements compared
to the average staffing level
for the half year.
5 Given the time lags, data
for training apply to forecasts.
Definitive items are available in the
second half of the year only.
6 The construction of
compensation indicators has
continued its refinement:
national salary practices are
better understood thanks to
the identification of benchmark
sectors of activity and a better
knowledge of the means of
remuneration practiced locally.
Information by country on salaries
paid in each sector is available
from the Group’s Industrial
Relations Office at the SUEZ head
office. Cost of living is determined
by private consumption per person,
based on information provided
by UBIFRANCE and additional
information from the Organization
for Economic Co-operation and
Development (OECD) and national
statistics offices.
7 Some values lower than 1.0
were recorded under the indicator
“gross worker’s wage/local gross
minimum wage.” Verification
showed that these were Group
companies that emphasized
insertion or with a significant level
of part-timers.
8 The salaries of some French
entities (excluding overseas
departments and territories) from
the SES business line covered
under the collective agreement
for the Building and Public Works
industry have been adjusted. The
average amount reported was thus
increased by 13.14% to take into
account the fact that the industry’s
paid vacation funds directly cover
paid vacation time.
9 Although it is a staple of
business culture in France, the
French concept of “cadres”
(managers) is sometimes difficult
to understand, in other countries
where SUEZ is present. This state
of affairs can lead to a slight
underestimation of the number of
managers because some entities
may take only their own director-
level management into account.
10 As regards the number of
handicapped persons, the figures
given represent the total number
of declared disabled employees
in relation to the average
monthly and half-yearly number
of employees for the Branch
concerned. These figures provide
the best information possible on
the integration of handicapped
persons into the SUEZ Group.
We do not consider it relevant
to provide a scope definition
for this indicator.
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110
WORKFORCE PER GEOGRAPHIC ZONE LA1 European Union 15,812 12,770 15,030 185 165 218 LA1 Rest of Europe 0 0 0 49 48 0 LA1 North America 1,183 1,196 1,291 LA1 South America 1,564 1,631 1,833 LA1 Africa – Middle East 19 44 176 LA1 Asia – Oceania 1,066 809 570 LA1���TOTAL 15,812 12,770 15,030 4,066 3,893 4,088 (scope) (100%) (100%) (100%) (100%) (100%) (100%) DISTRIBUTION OF EMPLOYEES BY SOCIO-PROFESSIONAL CATEGORY LA1� Managers 2,861 2,699 3,478 1,017 1,063 1,167 LA1�� Senior technicians and supervisors (T.S.M.)^ 2,887 8,607 9,753 1,117 1,199 1,174 LA1�� Workers, employees, technicians (O.E.T.)^ 10,064 1,464 1,799 1,932 1,631 1,747 LA1 TOTAL 15,812 12,770 15,030 4,066 3,893 4,088 (scope) (100%) (100%) (100%) (100%) (100%) (100%) PROPORTION OF WOMEN WITHIN THE GROUP LA13�� Proportion of women in workforce 23.0% 25.3% 25.8% 19.0% 19.9% 20.3% LA13 (scope) (100%) (100%) (100%) (100%) (100%) (100%) Proportion of women in management 15.0% 16.6% 17.9% 21.1% 20.5% 22.2% LA13 (scope) (100%) (100%) (100%) (100%) (100%) (100%) BREAKDOWN OF EMPLOYEES BY TYPE OF CONTRACT LA1 Open-ended 91.5% 91.6% 92.8% 99.2% 98.3% 97.2% LA1 Other 8.5% 8.4% 7.2% 0.8% 1.7% 2.8% LA1 (scope) (99.8%) (99.1%) (100%) (100%) (100%) (100%) AGE PYRAMID (based on employees with open-ended contracts) � Under 25 4.1% 5.7% 6.2% 4.1% 4.0% 2.7% LA1� 25-29 9.4% 11.7% 13.8% 13.8% 12.8% 12.2% LA1� 30-34 11.0% 11.0% 11.5% 20.9% 19.7% 18.4% LA1� 35-39 13.3% 13.1% 13.5% 17.3% 17.2% 17.0% LA1� 40-44 16.0% 14.9% 13.7% 16.6% 17.2% 17.6% LA1� 45-49 17.4% 16.2% 15.4% 13.2% 13.3% 14.0% LA1� 50-54 17.2% 16.3% 15.3% 8.4% 9.2% 10.1% LA1� 55-59 11.1% 10.3% 9.8% 4.1% 4.7% 5.6% LA1� 60-64 0.5% 0.8% 0.9% 1.2% 1.4% 2.0% LA1� 65 and over 0.0% 0.0% 0.0% 0.4% 0.4% 0.4% LA1 (scope) (99.8%) (99.1%) (100%) (100%) (100%) (100%) EMPLOYMENT h1 h2 h1 h2 h1 h2 h1 h2 h1 h2 h1 h2 LA2� ��Turnover 2.0% 1.7% 2.1% 2.4% 2.4% 2.1% 5.7% 5.8% 7.0% 6.3% 5.0% 4.1% LA2 (scope) (98.9%) (99.9%) (99.9%) (99.1%) (99.9%) (94.45%) (99.5%) (100%) (100%) (100%) (100%) (100%) Voluntary turnover 1.6% 1.3% 1.7% 1.8% 1.9% 1.8% 4.0% 4.4% 6.0% 5.6% 4.6% 3.4% LA2 (Minimum value) (98.9%) (99.9%) (99.9%) (99.1%) (99.9%) (94.45%) (99.5%) (100%) (100%) (100%) (100%) (100%) Entrance rate 5.5% 7.2% 6.3% 8.8% 8.2% 10.0% 8.0% 6.9% 10.0% 7.6% 9.5% 9.8% LA2 (scope) (98.9%) (99.9%) (99.9%) (99.1%) (99.9%) (94.45%) (99.5%) (100%) (100%) (100%) (100%) (100%) Entrance rate, open-ended contracts 46.2% 42.3% 55.0% 59.0% 66.2% 57.6% 93.9% 98.6% 88.0% 58.5% 86.3% 84.8% LA2 (scope) (98.9%) (99.9%) (99.9%) (99.1%) (99.9%) (94.45%) (99.5%) (100%) (100%) (100%) (100%) (100%) % of disabled persons/avg. workforce 0.30% 0.27% 0.24% 0.22% 0.30% 0.32% 0.07% 0.07% 0.08% 0.08% 0.10% 0.18% LA10 WORK CONDITIONS S1 S2 S1 S2 S1 S2 S1 S2 S1 S2 S1 S2 LA7 Absenteeism (days of absence/person) 9.6 8.29 10.8 7.36 8.59 7.46 3.8 2.8 2.4 2.3 2.52 1.92 LA7 (scope) (99.7%) (99.8%) (99.8%) (99.1%) (99.96%) (99.3%) (100%) (100%) (100%) (100%) (100%) (99.9%) Overtime 2.6% 3.3% 2.5% 2.8% 2.3% 2.3% 6.1% 6.7% 6.9% 6.7% 7.5% 7.3% Ø SUEZ (scope) (99.8%) (98.5%) (99.9%) (98.9%) (99.98%) (99.84%) (100%) (100%) (100%) (100%) (100%) (99.9%)
SOCIAL INDICATORS SUEZ Energy Europe SUEZ Energy International
GRI 2005 2006 2007 2005 2006 2007
LA1LA1LA1LA1LA1LA1
LA1LA1LA1
LA13
LA13
LA1LA1
LA1LA1LA1LA1LA1LA1LA1LA1LA1LA1
LA2
LA2
LA2
LA2
LA10LA7LA7
Ø SUEZ
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SUEZ Energy Europe SUEZ Energy International GRI
2005 2006 2007 2005 2006 2007
� Verified by Auditors.
^ Verified for 1st time in 2006.
¤ In this ratio only worker gross average salary has been verified.
Ø SUEZ: The “Ø SUEZ” indicators are developed in addition to those listed in the GRI.
COMPENSATION EC5� Worker’s average gross salary/local gross minimum salary 4.0 4.8 4.2 9.3 8.7 9.3 EC5 (Minimum value) 1.5 1.2 1.6 3.8 2.1 2.3 (scope) (95.5%) (99.7%) (97.6%) (88%) (99.4%) (92.6%) Average gross salary/Sector average gross salary Ø SUEZ Managers 1.6 1.4 1.4 1.7 2.0 1.8 Ø SUEZ (scope) (94.5%) (99.7%) (98.9%) (99%) (96.6%) (97.5%) T.S.M. 1.4 1.2 1.1 1.8 1.9 1.9 Ø SUEZ (scope) (90.6%) (98.5%) (95.4%) (98.6%) (97.4%) (96.1%) O.E.T. 1.8 1.4 1.6 1.8 2.1 1.8 Ø SUEZ (scope) (95.5%) (99.7) (99.9) (97.8%) (99.4%) (92.6%) Worker’s average gross salary/local cost of living 3.7 2.9 3.0 5.3 5.8 5.3 Ø SUEZ (scope) (95.5%) (99.7%) (99.9%) (97.8%) (99.4%) (92.6%) OCCUPATIONAL SAFETY LA7� No. of accidental deaths (employees) 0 0 0 0 0 0 LA7 � Frequency rate 4.61 3.97 3.98 2.46 3.01 1.41 LA7� Severity rate 0.18 0.13 0.09 0.06 0.05 0.05 LA7 (scope) (99.6%) (100%) (92.1%) (94.7%) (99.8%) (97.8%) TRAINING LA10� % of workforce 68.2 79.8 88.3 73.0 76.3 72.8 LA10 (scope) (94.6%) (99.5%) (100%) (78.7%) (100%) (99.7%) Proportional of managers and non-managers trained Managers 18.9% 21.4% 22.1% 24.0% 24.1% 22.6% LA10 T.S.M. + O.E.T. 81.1% 78.6% 77.9% 75.9% 75.9% 77.4% LA9 (scope) (94.6%) (97.8%) (100%) (78.7%) (100%) (99.7%) Training costs per person (€/person) 1,156.8 1,231.5 1,104.3 1,008.6 1,128.4 1,478.9 LA10 (scope) (94.6%) (99.5%) (100%) (78.7%) (100%) (99.72%) Number of training hours per person trained (hrs/pers) 41.4 46.5 49.5 76.5 65.9 66.6 LA10 (scope) (89.8%) (99.5%) (100%) (78.7%) (100%) (100%) Training costs per hour of training (€/hour) 27.9 26.5 22.3 13.2 17.1 22.2 Ø SUEZ (scope) (94.6%) 99.5%) (100%) (100%) (100%) (99.72%) Hours of training by subject Ø SUEZ Job techniques 48.8% 46.9% 47.8% 37.2% 32.3% 26.1% Quality, Environment, Safety 16.1% 15.2% 18.1% 22.5% 24.4% 30.0% Languages 5.1% 7.1% 9.4% 9.6% 8.0% 9.6% Other 30.0% 30.8% 24.7% 30.7% 35.3% 34.3% (scope) (94.6%) (99.5%) (100%) (100%) (100%) (99.72%)
EC5
Ø SUEZØ SUEZ
Ø SUEZ
Ø SUEZ
Ø SUEZ
LA7 LA7LA7
LA10
LA10LA9
LA10
LA10
Ø SUEZ
Ø SUEZ
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112
WORKFORCE PER GEOGRAPHIC ZONE LA1 European Union 60,401 59,401 62,070 47,261 48,364 52,477 LA1 Rest of Europe 2,520 3,547 2,901 79 73 78 LA1 North America 10 8 10 3,261 2,553 2,704 LA1 South America 435 344 448 15,548 272 231 LA1 Africa – Middle East 0 0 0 3,255 3,552 3,646 LA1 Asia – Oceania 1,658 1,744 1,966 2,726 2,632 2,779 LA1�� TOTAL 65,024 65,044 67,395 72,130 57,446 61,915 (scope) (100%) (100%) (100%) (100%) (100%) (100%) DISTRIBUTION OF EMPLOYEES BY CATEGORY LA1� Manager s 9,506 9,692 10,340 6,783 7,091 7,766 LA1� T.S.M.̂ 24,226 25,375 26,276 11,835 10,406 11,365 LA1� O.E.T.̂ 31,292 29,977 30,779 53,512 39,949 42,784 LA1 TOTAL 65,024 65,044 67,395 72,130 57,446 61,915 (scope) (100%) (100%) (100%) (100%) (100%) (100%) PROPORTION OF WOMEN IN GROUP LA13� Proportion of women in workforce 10.7% 10.7% 11.1% 18.5% 18.0% 18.3% LA13 (Minimum value) (100%) (100%) (100%) (99.9%) (99.9%) (100%) Proportion of women in management 10.8% 11.2% 11.7% 21.4% 22.7% 23.9% LA13 (scope) (100%) (100%) (100%) (99.9%) (99.9%) (100%) BREAKDOWN OF EMPLOYEES BY TYPE OF CONTRACT LA1 Open-ended 93.9% 92.8% 92.7% 94.5% 92.9% 92.1% LA1 Others 6.1% 7.2% 7.3% 5.5% 7.1% 7.9% LA1 (scope) (99.9%) (100%) (100%) (99.9%) (99.9%) (100%) AGE PYRAMID (based on employees with open-ended contracts) � Under 25 5.2% 5.3% 5.5% 5.0% 4.1% 4.0% LA1� 25-29 11.1% 11.3% 11.7% 10.2% 9.3% 9.6% LA1� 30-34 12.6% 12.2% 12.1% 14.0% 13.4% 12.5% LA1� 35-39 15.4% 15.0% 14.5% 16.4% 16.4% 16.1% LA1� 40-44 15.7% 15.8% 15.7% 16.6% 17.7% 17.5% LA1� 45-49 14.2% 14.4% 14.3% 14.4% 15.2% 15.7% LA1� 50-54 13.4% 13.4% 13.5% 11.9% 12.6% 12.9% LA1� 55-59 10.2% 10.3% 10.1% 8.4% 8.6% 8.7% LA1� 60-64 1.9% 2.2% 2.5% 2.6% 2.4% 2.7% LA1� 65 and over 0.1% 0.2% 0.2% 0.5% 0.4% 0.5% LA1 (scope) (99.9%) (100%) (100%) (99.9%) (99.9%) (100%) EMPLOYMENT S1 S2 S1 S2 S1 S2 S1 S2 S1 S2 S1 S2 LA2� Turnover 3.6% 5.1% 4.4% 4.8% 4.9% 4.7% 5.0% 5.6% 4.3% 4.7% 4.3% 4.4% LA2 (scope) (81.8%) (99.8%) (100%) (98.3%) (97.9%) (100%) (96.7%) (99.9%) (99.9%) (99.9%) (99.7%) (99.6%) Voluntary turnover 2.2% 2.9% 2.9% 3.5% 3.6% 3.5% 2.0% 2.3% 2.4% 2.9% 2.9% 2.8% LA2 (scope) (81.8%) (99.8%) (100%) (99.3%) (97.9%) (100%) (96.7%) (99.9%) (99.9%) (99.9%) (99.7%) (99.6%) Entrance rate 6.2% 8.6% 8.1% 9.3% 9.4% 10.4% 9.7% 9.1% 7.9% 8.7% 9.1% 10.5% LA2 (scope) (81.8%) (99.8%) (100%) (98.3%) (97.9%) (100%) (96.7%) (99.9%) (99.9%) (99.9%) (99.7%) (99.6%) Entrance rate, open-ended contracts 69.2% 60.7% 67.8% 54.2% 68.6% 61.7% 65.3% 69.8% 59.8% 58.1% 59.9% 59.4% LA2 (scope) (81.8%) (99.8%) (100%) (98.3%) (97.9%) (100%) (96.7%) (99.9%) (99.9%) (99.9%) (99.7%) (99.6%) % of disabled persons/avg. workforce 1.34% 1.30% 1.31% 1.37% 1.42% 1.47% 1.34% 1.42% 1.60% 2.25% 1.63% 1.69% LA10 WORK CONDITIONS H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 LA7 Absenteeism (days of absence/person) 7.1 7 7.2 6.5 7.12 6.72 8.0 7.3 8.5 8.8 7.7 7.8 LA7 (scope) (97.6%) (99.1%) (100%) (100%) (100%) (98.1%) (99.6%) (99.6%) (99.1%) (99.9%) (99.4%) (96.2%) Overtime 2.7% 3.2% 2.9% 3.1% 2.3% 3.3% 4.9% 3.3% 5.2% 5.0% 5.0% 4.9% Ø SUEZ (scope) (99.0%) (78.8%) (99.9%) (100%) (100%) (97.75%) (99.6%) (97.8%) (94.6%) (99.5%) (99.7%) (99.88%)
SOCIAL INDICATORS SUEZ Energy services SUEZ Environment
GRI 2005 2006 2007 2005 2006 2007
LA1LA1LA1LA1LA1LA1
LA1LA1LA1
LA13
LA13
LA1LA1
LA1LA1LA1LA1LA1LA1LA1LA1LA1LA1
LA2
LA2
LA2
LA2
LA10
LA7
Ø SUEZ
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REMUNERATION EC5� Worker’s average gross salary#local gross minimum salary 1.9 1.7 1.8 2.3 2.2 2.2 EC5 (Minimum value) 0.7 0.8 0.9 0.7 0.7 0.7 (scope) (89%) (91.5%) (93.1%) (91.3%) (83.6%) (89.2%) Average gross salary/Sector average gross salary Ø SUEZ Managers 1.0 1.0 1.1 1.3 1.2 1.2 Ø SUEZ (scope) (85.3%) (85%) (86.1%) (98.3%) (93.7%) (99.7%) T.S.M. 1.0 1.0 1.0 1.0 1.1 1.1 Ø SUEZ (scope) (75.1%) (79.2%) (81.6%) (97.3%) (92.2%) (99.5%) O.E.T. 1.2 1.2 1.2 1.2 1.2 1.2 Ø SUEZ (scope) (87.9%) (92.7%) (94.2%) (99.1%) (93.5%) (98.6%) Worker’s average gross salary/local cost of living 1.7 1.5 1.6 2.1 2.0 2.0 Ø SUEZ (scope) (90.9%) (92.7%) (94.2%) (99.2%) (93.5%) (98.6%) OCCUPATIONAL SAFETY LA7� No. of accidental deaths (employees) 7 4 4 4 4 6 LA7� Frequency rate 18.41 14.69 11.90 21.50 21.89 18.47 LA7� Severity rate 0.65 0.57 0.47 0.87 0.83 0.74 LA7 (scope) (98.2%) (99.85%) (98.7%) (95.9%) (98.9%) (94.2%) TRAINING LA10� % of workforce 50.8 55.4 55.3 59.8 58.6 60.0 LA10 (scope) (77.1%) (87.9%) (88.7%) (95.5%) (99.9%) (94.37%) Proportional of managers and non-managers trained Managers 15.5% 15.3% 15.4% 9.8% 13.6% 16.5% LA10 T.S.M. + O.E.T. 84.5% 84.7% 84.6% 90.1% 86.4% 83.5% LA10 (scope) (77.1%) (87.9%) (88.7%) (95.5%) (99.9%) (94.37%) Training costs per hour of training (€/hour) 667.2 711.1 763.1 519.8 703.8 889.9 LA10 (scope) (76.9%) (87.9%) (88.72%) (95%) (99.9%) (94.37%) Number of training hours per person (€/person) 25.6 32.5 27.7 23.1 24.8 25.3 LA10 (scope) (76.9%) (87.9%) (88.72%) (96.3%) (99.9%) (94.37%) Training costs per hour of training (€/hour) 26.1 21.9 27.5 22.5 28.4 35.2 Ø SUEZ (scope) (76.8%) (87.9%) (88.72%) (95.8%) (99.9%) (94.37%) Hours of training by subject Ø SUEZ Job techniques 46.0% 58.5% 46.1% 30.0% 29.8% 31.2% Quality, Environment, Safety 29.3% 24.0% 30.0% 40.7% 38.5% 36.3% Languages 4.0% 2.4% 3.7% 5.2% 8.2% 8.5% Other 20.7% 15.1% 20.3% 24.1% 23.6% 24.1% (scope) (76.9%) (87.9%) (88.72%) (96.2%) (99.9%) (94.37%)
SUEZ Energy services SUEZ Environment GRI
2005 2006 2007 2005 2006 2007
� Reviewed by Auditors.
^ First reviewed in 2006.
¤ On this ratio, only the “average gross salary” indicator was reviewed.
Ø SUEZ: The “Ø SUEZ” indicators are developed in addition to those listed in the GRI.
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At the request of SUEZ and in our capacity as the company’s Statutory Auditors, we performed a review in the aim
of providing moderate assurance on the environmental and social indicators selected by SUEZ (“the data”)
identified by the symbol � among the environmental and social indicators shown on pages 104-107 and 110-113
for fiscal year 2007.
The data, which is the responsibility of SUEZ management, has been prepared in accordance with the following internal
reporting criteria:
� set of procedures relating to environmental data reporting,
� set of procedures relating to social data reporting, available for consultation at the Human Resources and Environment
& Innovation departments, and summarized on pages 102-103 and 108-109. It is our responsibility, based on the work
performed, to express a conclusion on the selected data.
NATURE AND SCOPE OF OUR WORK We performed a limited review to provide moderate assurance that the selected data does not contain any material
anomalies. A higher level of assurance would have required more extensive work. Our work covers the consolidated data
at Group level; it does not include the rate of coverage related to the data.
� We assessed the environmental and social data reporting criteria with regard to its relevance, reliability, neutrality,
understandability, and completeness.
� We met with the persons responsible for the application of the reporting criteria at the Environment & Innovation
Department, at the Social Relations Department, at the SUEZ headquarters, and in the business lines: SUEZ
Energy Europe (SEE), SUEZ Energy International (SEI), SUEZ Energy Services (SES), SUEZ Environment (SE).
� We performed validation tests at 31 sites belonging to 19 selected entities(1) for environmental data, representing on
average 72% of SUEZ consolidated data(2), and at 26 selected entities for social data(3), representing 68% of SUEZ
consolidated staff.
� In addition, we have carried out analytical reviews and consistency tests for 5 additional entities for environmental
reporting and 14 additional entities for social reporting.
� We examined, on a sampling basis, the calculations and verified data reporting at different consolidation levels.
To assist us in conducting our work, we referred to the environment and sustainable development experts of our firms
under the responsibility of Mr. Éric Duvaud for Ernst & Young and Mr. Éric Dugelay for Deloitte & Associés.
AUDITORS’ REPORT ON THE REVIEW OF ENVIRONMENTAL AND SOCIAL INDICATORS
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(1) � SEE : Electrabel SA (Saint Ghislain, Doel, Langerlo and Ruien sites), Polaniec, Voghera, SHEM, Electrabel Spain (Castelnou), Electrabel Nederland NV (Almere site)– SEI: SEGNA (Syracuse, Nassau and NEPCO sites), Enersur (Chilca, Yuncan sites), Electroandina (Tocopilla) - SES: Elyo France (Elyo Centre Ouest headquarters and Airbus site), Elyo UK (Elyo Industrial Limited headquarters and London Hall site) – SE: Lyonnaise des Eaux (headquarters), Degrémont (Rithala and Sonia Vihar, India), United Water (Camden and Pennsylvania, USA), SITA France (headquarters, Scori, Hersin, Montlouis, Inveko sites), SITA UK (headquarters and Cleveland and Ellington sites), SITA Wallonia (headquarters and Grâce-Hollogne site), SITA Poland (headquarters and Lublin site), Teris Belgium (headquarters and Grimbergen site).
(2) � Number of sites covered by certified EMS: 86%, Total primary energy consumption: 56%, Electricity consumption (excluding own consumption): 77%, Energy efficiency (electric production equivalent): 59% Installed capacity – Electricity and heat – Total renewable energy sources: 66%, Quantity of electricity and heart produced – Renewable sources: 64%, Greenhouse gas emissions (excluding vehicle fleet): 62%, SOx emissions: 88%, NOx emissions: 66%, Dust emissions: 79%, Mercury emissions: 98%, Industrial water consumption: 44%, Cooling process water: 73%; Pollution load treated (purification): 87%, Non-specific and non-hazardous waste: 73%, Non-specific hazardous waste: 82%, Specific waste: 76%, Total waste: 79%, Quantities of treated leachates: 69%.
(3) � SEE: Electrabel, Electrabel Nederland, SHEM, CNR, N-ALLO – SEI: SENA, Enersur – SES: Fabricom GTI SA, Groupe Ineo, GTI, Axima Service Belgium, Elyo Iberica, Elyo France,– SE: Lyonnaise des Eaux France, Eurawasser, Degrémont India, SITA France, SITA Netherlands, SITA Flanders, SITA UK, SITA Poland.
COMMENTS ON THE PROCEDURES SUEZ has continued to improve the reliability of environmental and social data reporting practices and took into account our comments formulated
in the auditor’s report on the 2007 environmental and social indicators. We would like to draw your attention to the following comments regarding
these practices:
Environmental reporting� Since the previous fiscal year, controls at certain division and entity levels have been improved, especially for SEI and certain SE entities.
However, internal control measures should be strengthened, particularly for a certain number of entities, especially with respect to identifying
their relevant industrial sites.
� The application of the reporting criteria and the control of its application need to be reinforced at site and entity level, especially concerning
the following indicators: “greenhouse gas emissions– landfills”, “consumption of primary energy – waste collection and treatment” and
“total recovered waste and by-products”.
Social reporting� The implementation of a new reporting tool has enabled the reliability of the social data reporting process to be improved and the reinforcement of
control implementation and formalization. Nevertheless,
� • the implementation of controls should be continued for all entities;
� • the application of reporting criteria for certain indicators, especially “turnover”, and “number of staff trained” should be improved.
� Health and safety reporting can still be improved by reinforcing the application of reporting criteria and the control of its application, especially for the
reporting perimeter, and for the “number of hours worked” and “number of days of sick leave” indicators.
CONCLUSIONDuring our review, the following anomalies were identified.
� Mercury emissions were reported for the first time this year for which we identified errors and omissions at several sites, which have not
all been corrected.
� Industrial water consumption for which we have identified reporting errors at several entities, which have been corrected.
Based on our review and subject to the exceptions mentioned above, we did not identify any material anomalies likely to call into question the fact that
the data examined was prepared, in all material respects, in accordance with the above-mentioned reporting criteria.
Neuilly-sur-Seine, February 22, 2008
The Auditors
Ernst & Young & Autres Deloitte & Associés
Pascal Macioce Nicole Maurin Jean-Paul Picard Pascal Pincemin
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CONSOLIDATED BALANCE SHEET – ASSETS AND LIABILITIES
*The notes are featured in Section 20 of the SUEZ 2007 Reference Document available on www.suez.com.
In millions of euros Note* Dec. 31, 2007 Dec. 31, 2006 Dec. 31, 2005
NON-CURRENT ASSETSIntangible assets, net 10 3,497.7 3,488.1 3,453.5
Goodwill 9 14,902.8 13,404.6 13,033.2
Property, plant and equipment, net 11 22,597.1 21,002.8 20,212.4
Available-for-sale securities 14 4,120.7 2,816.5 2,671.5
Loans and receivables carried at amortized cost 14 2,107.0 2,170.1 2,440.2
Derivative instruments (incl. commodity derivatives) 14 1,140.1 1,014.1 2,145.9
Investments in associates 12 1,214.3 1,259.7 3,154.9
Other non-current assets 17 730.5 778.8 1,686.5
Deferred tax assets 7 1,085.0 871.0 1,225.2
TOTAL NON-CURRENT ASSETS 51,395.2 46,805.7 50,023.3 CURRENT ASSETS
Loans and receivables carried at amortized cost 14 331.3 298.8 194.0
Derivative instruments (incl. commodity derivatives) 14 3,363.3 3,318.6 4,533.3
Trade and other receivables 14 11,869.3 10,412.2 10,394.7
Inventories 16 1,571.8 1,483.4 1,344.8
Other current assets 17 2,556.5 2,336.6 2,693.1
Financial assets at fair value through income 14 1,319.5 833.0 885.6
Cash and cash equivalents 14 6,720.2 7,946.3 10,374.4
TOTAL CURRENT ASSETS 27,732.0 26,628.9 30,419.8 TOTAL ASSETS 79,127.2 73,434.6 80,443.1Shareholders’ equity 22,192.8 19,503.8 16,255.9
Minority interests 2,668.1 3,060.0 2,567.3
TOTAL EQUITY 18 24,860.9 22,563.8 18,823.2 NON-CURRENT LIABILITIESProvisions 19 8,448.5 8,419.7 9,118.8
Long-term borrowings 14 14,526.0 13,000.6 16,406.9
Derivative instruments (incl. commodity derivatives) 14 800.9 711.7 2,191.7
Other financial liabilities 14 778.0 467.5 858.5
Other non-current liabilities 1,004.5 917.3 949.5
Deferred tax liabilities 7 1,643.6 1,444.5 1,165.8
TOTAL NON-CURRENT LIABILITIES 27,201.5 24,961.3 30,691.2 CURRENT LIABILITIESProvisions 19 1,106.6 1,366.1 1,724.4
Short-term borrowings 14 7,129.8 6,678.5 9,079.9
Derivative instruments (incl. commodity derivatives) 14 3,201.9 3,369.5 5,188.9
Trade and other payables 14 10,038.1 9,209.4 10,078.8
Other current liabilities 5,588.4 5,286.0 4,856.7
TOTAL CURRENT LIABILITIES 27,064.8 25,909.5 30,928.7 TOTAL EQUITY AND LIABILITIES 79,127.2 73,434.6 80,443.1
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In millions of euros Note* Dec. 31, 2007 Dec. 31, 2006 Dec. 31, 2005
*The notes are featured in Section 20 of the SUEZ 2007 Reference Document available on www.suez.com.
REVENUES 47,475.4 44,289.2 41,488.9Purchases (21,289.4) (21,010.0) (18,678.7)
Personnel costs (8,141.5) (7,640.8) (7,902.9)
Depreciation, amortization and provisions (1,912.7) (1,684.8) (1,701.9)
Other operating income and expenses, net (10,956.4) (9,457.1) (9,303.2)
CURRENT OPERATING INCOME 4 5,175.4 4,496.5 3,902.2Mark-to-market on commodity contracts other than trading instruments 67.8 17.1 (151.1)
Impairment of property, plant and equipment,
intangible assets and financial assets (132.0) (150.3) (657.9)
Restructuring costs (42.6) (88.8) (101.5)
Disposals of assets, net 339.4 1,093.1 1,529.9
INCOME FROM OPERATING ACTIVITIES 5 5,408.0 5,367.6 4,521.6Financial expenses (1,709.5) (1,610.6) (1,582.2)
Financial income 987.3 879.6 856.9
NET FINANCIAL LOSS 6 (722.1) (731.0) (725.3)Income tax expense 7 (527.5) (815.1) (585.3)
Share in net income of associates 12 457.9 372.7 565.5
NET INCOME 4,616.3 4,194.2 3,776.5 Minority interests 692.7 587.9 1,263.8
Net income Group share 3,923.5 3,606.3 2,512.7
Earnings per share 8 3.09 2.86 2.39
Diluted earnings per share 8 3.04 2.83 2.36
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In millions of euros Dec. 31, 2007 Dec. 31, 2006 Dec. 31, 2005
NET INCOME 4,616.3 4,194.2 3,776.5• Share in net income of associates (457.9) (372.7) (565.5)
+ Dividends received from associates 229.8 355.7 467.1
• Net depreciation, amortization and provisions 1,925.3 1,743.3 2,242.7
• Net capital gains on disposals (incl. reversals of provisions) (339.4) (1,097.7) (1,652.9)
• Mark-to-market on commodity contracts other than trading instruments (67.8) (17.1) 151.1
• Other items with no cash impact 110.8 31.7 21.4
• Income tax expense 527.5 815.1 585.3
• Net financial loss 722.1 731.0 725.3
Cash generated from operations before income tax and working capital requirements 7,266.6 6,383.5 5,750.9 + Tax paid (1,005.6) (985.4) (722.9)
Change in working capital requirements (244.3) (225.9) 797.5
CASH FLOW FROM (USED IN) OPERATING ACTIVITIES 6,016.6 5,172.2 5,825.5 Acquisitions of property, plant and equipment and intangible assets (3,129.7) (2,367.6) (2,667.1)
Acquisitions of entities net of cash and cash equivalents acquired (1) (1,508.3) (1,088.2) (9,060.2)
Acquisitions of available-for-sale securities (1,361.9) (315.6) (526.6)
Disposals of property, plant and equipment and intangible assets 131.1 181.8 355.0
Disposals of entities net of cash and cash equivalents sold 554.9 2,009.9 1,972.9
Disposals of available-for-sale securities 406.3 777.8 650.1
Interest received on non-current financial assets 116.0 151.3 69.8
Dividends received on non-current financial assets 202.4 288.7 134.3
Change in loans and receivables originated by the Group and other (92.1) (4.0) 79.7
CASH FLOW FROM (USED IN) INVESTING ACTIVITIES (4,681.2) (365.9) (8,992.0)Dividends paid (1,968.5) (1,720.9) (1,521.6)
Repayment of borrowings and debt (7,579.0) (8,744.0) (3,245.8)
Change in financial assets at fair value through income (265.3) 346.3 (538.4)
Interest paid (1,230.9) (1,081.4) (1,029.2)
Interest received on cash and cash equivalents 272.8 326.9 347.3
Increase in borrowings and debt 8,478.7 3,538.3 8,515.5
Increase in capital (1) 832.9 162.4 2,962.1
Assignment of litigious receivables 995.4
Treasury stock movements (1,058.2) 234.3 2.9
CASH FLOW FROM (USED IN) FINANCING ACTIVITIES (2,517.5) (6,938.1) 6,488.3 Effect of changes in consolidation method, exchange rates and other (44.0) (296.3) 166.3
TOTAL CASH FLOW FOR THE PERIOD (1,226.1) (2,428.1) 3,488.2 CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 7,946.3 10,374.4 6,886.2 CASH AND CASH EQUIVALENTS AT END OF PERIOD 6,720.2 7,946.3 10,374.4
CASH FLOW
(1) In 2005, this item does not include €2,414 million corresponding to the issue of SUEZ shares as part of the cash and share bid for Electrabel.
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� To ensure that sustainable development values are reflected in our activities and culture
� To integrate sustainable development in our commercial offers.� To preserve the environment� To promote the company’s social commitments
� To act as a corporate citizen
OUR PRIORITIESIn order to evaluate the performance of Global Compact business partners, Innovest, a social responsibility rating agency, awards them with green, orange and red indicators. In 2005, all SUEZ indicators were green.
THE 10 GLOBAL COMPACT PRINCIPLES REFERENCES
1 Businesses should support and respect the protection of internationally P. 16-19, 70-73, proclaimed human rights 78-79, 87-89
2 Ensure that they are not complicit in human rights abuses P. 16-19, 70-73, 78-79, 87-89
3 Businesses should uphold the freedom of association and the effective recognition P. 16-19, 70-73, of the right to collective bargaining 78-79, 87-89
4 The elimination of all forms of forced and compulsory labor P. 16-19, 70-73, 78-79, 87-89
5 The effective abolition of child labor P. 16-19, 70-73, 78-79, 87-89
6 The elimination of discrimination in respect of employment and occupation P. 16-19, 74-77, 78-79, 80-87
7 Businesses should support a precautionary approach to environmental challenges P. 16-19, 78-79, 90-97
8 Undertake initiatives to promote greater environmental responsibility P. 2-5, 12-13, 27-65, 68-79
9 Encourage the development and diffusion of environmentally friendly technologies P. 2-5, 27-65, 70-79
10 Businesses should work against corruption in all its forms, including extortion and bribery P. 16-19
APPLICATION OF THE U.N.
GLOBAL COMPACT PRINCIPLES
The United Nations Global Compact asks companies to embrace, support and enact, within their sphere of influence, a set of core values in the areas of human rights, labor standards, environment and anti-corruption. SUEZ signed on to the Global compact as soon as it was launched in 2000, and complies with its commitments, which are in line with its values and priorities with respect to sustainable development.
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Dioxin: Very toxic chemical compound
resulting from the combustion of
certain organic matter. There are
210 types of dioxins, 17 of which
are considered harmful.
Drinking-water supply: Equipment, services, and activities
that, starting with untreated water,
produce water that complies
with applicable water quality
standards and is then distributed
to consumers. The process
consists of four distinct steps:
intake/catchment, treatment to
make water drinkable, conveyance
(transportation/storage), and
distribution to the consumer.
Earnings before interest, tax, depreciation and amortization (EBITDA): This is the amount of the funds
that the company generates from
operations before deducting
related interest. It corresponds
to operating income before
depreciation, amortization and
provisions, plus the share in
the recurring income of equity
affiliates and net financial income
not related to net debt.
Eco-efficiency: According to the World Business
Council for Sustainable Development,
eco-efficiency consists in providing
products and services at competitive
prices in a way that satisfies
the needs of the population and
offers a better quality of life, while
progressively reducing environmental
impacts and consumption of
natural resources throughout the
life cycle. Eco-efficiency indicators
are developed by comparing the
value of the product or service to its
environmental impact (e.g. tonnes
of greenhouse gases [GHG] emitted,
tonnes of incinerated waste, etc.).
Certified environmental management system: An environmental management
system (EMS) that is operational
(with written procedures and
documentation and clearly defined
objectives as part of a continuous
improvement approach) is declared
to be certifiable when it is
regularly audited to ensure control
over environmental risk inherent to
the business. The decision to have
the EMS certified by an external
body comes under the company’s
business policy.
Chemical water treatment: Service provided to industrial
customers to enable them to
define, implement and control, on
a day-to-day basis, the products
that they need to ensure the
quality of water required by the
industrial process.
Circular economy: Also called industrial ecology,
a circular economy takes its
inspiration from the dynamics of
ecosystems to offer optimizing
energy and material flows, thereby
reducing the waste of natural
resources at production sites,
activity zones or employment
centers. The principle is to reuse
raw material or energy used in the
process of manufacturing finished
products, as a resource for another
industry located close by. This
approach is the opposite of what is
called a linear economy that uses
up resources and discards waste
without controlling the flows and
discharges that are produced.
Cogeneration/tri-generation: The simultaneous production of
thermal energy (refrigeration and/
or heat) and electricity in dedicated
installations. This production
system has a higher energy yield
and a reduced impact on the
environment. It is particularly
suitable for use in small and mid-
sized generation facilities located
near consumers in urban areas.
Comité 21: French committee for the
environment and sustainable
development made up of the
various elements of French society
(businesses, local governments,
associations, public agencies,
and research and training
institutions) to entrench sustainable
development principles in social
and business practices.
Composting: The transformation, in the
presence of water and oxygen, of
organic waste by micro-organisms
(microscopic fungi, bacteria, etc.)
into a product called compost.
Delegated management: See Public-Private Partnership
(PPP).
Desalination: Process whereby the concentration
of salts in water is reduced to
make it fit for human and animal
consumption as well as for other
uses, in particular industrial
activities.
Allowance: Emission allowance to be submitted
for each ton of CO2 emitted by a
facility covered by EC Directive
2003/87/EC.
Anaerobic digestion: Process of decomposition of
organic matter in the absence of
oxygen. Anaerobic digestion gives
off mainly methane.
Arbitrage: In the field of energy, the possibility
for an operator to choose at any
time between several activities,
according to their relative
profitability (e.g. burn gas to sell
electricity or sell gas and buy
electricity from another producer).
Biogas: All gases, such as methane and
carbon dioxide, resulting from
fermentation of landfilled waste.
Biogases can be recovered and
treated in storage facilities as well
as in specific fermentation tanks
(digesters).
Biomass: All organic products of plant and
animal origin used to produce
energy (electricity and heat) or
for agronomic purposes.
Bottom ash: By-product of the incineration of
waste made up of ashes removed
from the bottom of the incinerator
oven.
GLOSSARY
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Effluent: General name for any fluid
produced by a pollution source,
whether from populated areas
or industrial facilities.
Energy spot market: A market where the short-term
energy supplies are bought
and sold.
Energy trading: Energy buying and selling
on energy exchanges.
Environmental analysis: A thorough analysis of
environmental-related problems,
impact, and results arising from
activities at a site.
Environmental, Management and Audit System (EMAS): A certificate based on ISO 14001
certification and a published
environmental statement certified
by European auditors, accredited
by the European Commission and
published.
EU ETS: Greenhouse Gas Emission Trading
Scheme based on European
Directive 2003/87/EC which
applies to CO2 emissions from
certain sectors of industry since
January 1st, 2005.
European Consultative Committee: A European works council
established by SUEZ in 1995
in preparation for the European
Directive of 1996. It is made up
of employee representatives of
the Group’s European companies
based on the proportion of each
country in the workforce.
European Power Reactor (EPR): European concept for a new-
generation nuclear plant.
Facilities management: The outsourcing by industrial
customers to a single provider
of the management of services
and utilities necessary for the
functioning of their environment
(operation and maintenance
of technical facilities, delegated
management for works and
all services relating to the
building upkeep – security
and general services).
Frequency rate: Number of work-related accidents
that occur over the period per
million hours worked.
Gas hub: Connection point of a natural gas
transmission network supplied
from different sources. It enables
operators to physically exchange
gas between these sources and
end users.
Global footprint: This concept, which was created
by an American scientist in the
early 1990s, states that the
ecological footprint of a population
corresponds to the productive land
and sea area required to produce
the resources consumed by this
population and also assimilate the
waste it generates. The higher
a standard of living, the deeper
the footprint. Three planets would
therefore be needed if everyone
adopted the current lifestyle of an
average European, and five planets
would be needed for the lifestyle
of an American.
Global Compact: The Global Compact, launched
in July 2000, is made up of
10 universal principles relating
to human rights, labor and
environmental standards.
It represents the voluntary
commitment by major companies
to contribute to promoting
and implementing sustainable
development policies at a global
level.
Global Reporting Initiative (GRI): An initiative of the Coalition
for Environmentally Responsible
Economies (CERES) in partnership
with the United Nations
Environment Program (UNEP).
It is a long-term, international
process involving the participation
of a diverse range of stakeholders
such as businesses, NGOs,
consultants, professional
associations and universities.
The GRI’s mission is to develop
and issue globally applicable
Sustainability Reporting Guidelines
that businesses may use to report
on the economic, environmental,
and social aspects of their
activities, products, and services.
Green Certificate: Certificate issued free by public
authorities to an electricity
generator and certifying the
production of a certain quantity
of electricity from renewable
energy sources. The certificate
may be freely transferred
or sold, for example, to electricity
providers obliged to hold
such certificates for a part
of their sales to end users.
Greenhouse gas (GHG): Gases that contribute to solar heat
retention in the atmosphere.
The most common is carbon
dioxide (CO2). The greenhouse
gas build-up as a result of human
activity is one of the causes
of the global warming observed
in recent years and its
consequences on the ecosystem.
Incinerator: A facility for burning waste that
is subject to authorization. An
increasing number of incinerators
convert waste into electricity
or thermal energy. Incineration
by-products (bottom ash and fly
ash (REFIOM)) are processed to
control the impact of this process
on people and on the environment.
Independent producer: A company whose main activity
is to generate electric power with
the sole intention of selling it to a
distributor or to consumers, via a
third party.
Inter-community: Association of towns or villages
whose objective is to provide
public services, often in
collaboration with a private partner
(in this case, it is referred to as
a mixed inter-community).
International Social Observatory: Independent association launched
in 2000 at the initiative of SUEZ
to maintain social dialogue with
all parties involved in the labor
market (companies, unions,
associations, universities and
public affairs institutions).
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IPCC (Intergovernmental Panel on Climate Change): Organization created in 1988
by the World Meteorological
Organization (WMO) and
the United Nations Environment
Program (UNEP). The IPCC
produces climate change
assessment reports on
the basis of scientific and
technical information.
ISO 9001: An international standard
establishing quality criteria
for work procedures. It applies to
product design, control of
the production and manufacturing
process as well as quality
control of the end product.
ISO 14001: An international standard that
verifies a company’s organizational
procedures and methods, as
well as the effective
implementation of environmental
policy and objectives.
Kyoto Protocol: Intergovernmental agreement
signed in 1997 at the Conference
of the Parties to the United
Nations Framework Convention
on Climate Change designed to
stabilize greenhouse gas emission
levels in the atmosphere.
Leachates: Water containing organic or
mineral pollutants that has been
in contact with landfill waste.
Liquefied natural gas (LNG): Composed primarily of methane,
LNG is a natural gas that is
cooled at a temperature of
approximately -163° C for
condensation to a liquid state.
Natural gas liquefaction reduces
its volume 600 times, facilitating
its transport by sea over long
distances. Roughly two times
lighter than water, LNG is a
transparent, odorless, non-toxic,
non-corrosive liquid.
Net income, Group share: This is the total net income or loss
(from all Group companies) less
the portion attributable to third-
party shareholders of subsidiaries
that are not wholly owned by
SUEZ. It is the sum of net current
income, Group share, and net
exceptional income.
OET: Category of workers, employees
and technicians.
Organic growth: A company’s growth measured
at constant consolidation and
exchange rates, determined under
the same accounting policies.
To calculate organic growth of
revenue, the Group excludes
the impact of natural gas price
variations which do not impact
growth in volumes insofar as there
is an equivalent symmetrical
change in purchases.
Public-private partnership (PPP): A contractual arrangement
adapted to each local situation
whereby the public sector authority
assigns certain functions to a
private operator and specifies
objectives. The public sector
partner retains ownership of the
asset and regulatory control, as
opposed to privatization which is
based on the transfer of ownership
of the infrastructure assets.
Local authorities are increasingly
resorting to PPP agreements in
managing water services.
Rational energy use (REU): All the measures to promote
rational use of energy by
simultaneously addressing
energy, economic and
environmental requirements.
Recovery: Reemployment, recycling or any
other action aimed at obtaining
reusable materials or energy from
waste. Among the various types
of energy recovery are:
• waste-to-energy recovery:
recovery of calories contained in
incinerated waste, allowing thermal
or electric energy production;
• physical recovery: waste
treatment method that enables
reemployment, reuse or recycling
(for example, waste originating
from voluntary separation and
recycling, bottom ash used in
road sub-bases);
• biological recovery: an organic
waste processing technique
using composting or anaerobic-
digestion techniques.
Recycling: The direct reintroduction of waste
into the production cycle from
which it originates as a total
or partial replacement for
new material.
Recycling centre: Specific facility where collected
waste is sorted and stored.
Refiom: An abbreviation for the treatment
of residues from the incineration
smoke of household waste
or residual waste.
Regulated market: Market in which local authorities
are not responsible for drinking
and sanitation water services.
Private companies are therefore
given licenses or franchises
to provide such services, in
which case they become owners
of the facilities, utility rates being
fixed by a regulating agency.
This is the basis on which the U.S.
regulated public utilities
market operates.
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Return on capital employed (ROCE): The ratio between net operating
profit after tax (NOPAT) and
capital employed. Net operating
profit is gross operating income
(EBITDA) less net increases
to depreciation and operating
provisions (excluding goodwill
amortization) and recurring income
tax expense. Capital employed
corresponds to the resources
allocated to the development of each
Group business and includes total
assets (excluding cash assets and
marketable securities) net of special
concession accounts, provisions
for contingencies and losses,
miscellaneous accounts payable and
accrued liability accounts. The Group
uses this ratio as one of its criteria
for selecting investments and as a
tool for assessing the performance
of its various businesses.
Sanitation: All the wastewater and rainwater
collection, transportation, and
treatment techniques used by
an urban area, industrial site, or
private parcel before discharge
into the natural environment.
Sanitation includes the disposal
of sludge resulting from the
wastewater treatment process.
Severity rate: Number of days lost as a result of
work-related accidents that occur
over the period per thousand hours
worked.
Specific waste: Residue or sub-product generated
in industrial quantities by the
Group’s own activities (fly ash,
sludge, etc). They may or may not
be hazardous, depending on their
composition and the applicable
legislation in the region where
they are produced.
Storage center: Formerly known as a “controlled
landfill site”, a storage facility
for residual waste that could not
be converted in any way. Storage
centers are classified according to
the type of waste handled: class I
sites, geologically safe, for special
industrial waste; class II sites,
impermeable, for household or
equivalent waste; class III sites for
inert waste such as rubble
and building debris.
Treated sewage sludge: A mixture of water and solids
separated from various types
of water through biological or
physical processes.
TSM: Statutory employee category
in France of personnel having
substantial technical expertise
in their field and responsibility
for task or project execution.
This category can also cover
administrative positions.
Ultrafiltration: An advanced water treatment
technique involving the
filtration of water via membranes
with pores that are some
10,000 times smaller than those
of human skin. The filtered water
is ultra-pure because all particles
larger than 0.01 microns
(i.e. pollen, algae, parasites,
bacteria, viruses, germs and
cysts), have been removed.
Voluntary separation: Any collection that separates
certain types of waste
for conversion.
Waste: Waste is divided into four
categories:
• domestic waste: waste resulting
from the daily activities of
households that can be processed
by traditional collection or
voluntary separation methods;
• non-hazardous industrial
waste: non-household, non-toxic
waste arising from industrial or
commercial activities;
• hazardous waste: Waste
requiring special precautions
during processing to protect the
environment;
• medical waste: waste resulting
from medical activities or hospital
waste.
Waste-to-energy recovery unit: Waste incineration plant that
recovers calories contained in
the incinerated waste to provide
energy for urban heating, steam
for industry and/or electricity.
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LEARN MORE
CONTACTS
www.suez.comAll publications prepared by the SUEZ Department of Communications are available on the Group’s website:
“Sustainable development, the cornerstone of our strategy” Group Charters, including “Our values, our Ethics” “10 years of social responsibility initiatives” “Nuclear expertise in the energy mix” “Renewable energy” “The fight against climate change” Detailed presentation of SUEZ commitments under the Global Compact
Sustainable Development Department Stéphane Quéré: [email protected]. +33 (0)1 40 06 27 38
Financial Communication Department Arnaud Erbin: [email protected]. +33 (0)1 40 06 66 29
Investor Relations Sophie Charrier: [email protected]ïc de Fontaubert: [email protected]éonore de Larboust: [email protected]
Shareholder Relations in FranceRita Rio: [email protected] number: 0 800 177 177 (from France)in BelgiumGuy Dellicour: [email protected] number: 0 800 25 125 (from Belgium)
RADD_SUEZ_100_124_GB_V7.indd Sec1:124 26/05/08 18:17:18
The present document was printed on a 100% recyclable and biodegradable coated paper fabricated from ECF (Elementary Chlorine Free) bleached pulp in a European factory that is certifi ed ISO 9001 (for its quality management), ISO 14001 (for its environmental management), PEFC CoC (for using paper obtained through sustainable forest management) and is EMAS-accredited (for its environmental performance). The 2007 Activities and Sustainable Development Report was fi rst distributed along with the 2007 Reference Document at the Group’s Annual General Meeting held in Paris on May 6, 2008. Its English edition had a print run of 5,000 copies. The 2007 Activities and Sustainable Development Report is also available in French, Spanish and Dutch from the Group’s website (www.suez.com) where all SUEZ publications can be downloaded.
Publisher: Design and production: English translation:
Illustrations on pages 63 and 64: Barthelemy-Griño Architectes.
Photo libraries: SUEZ, SUEZ Energy Europe, SUEZ Energy International, SUEZ Energy Services, SUEZ Environment. Cirsee, Compagnie Nationale du Rhône, La Compagnie du Vent, Degrémont, Edelnor, Electricité de Tahiti, Electrabel, Elyo, Fabricom GTI, Glow Energy, Laborelec, Lyonnaise des Eaux, Re-source Industries, SITA France, SUEZ Foundation, Tractebel Energia.
Photographers: Abacapress, China Photos, Corbis, Gamma Eyedea, Getty, ImageForum, R.E.A., Reuters, AP/Sipa, TP.Arruza , P.Aventurier, R.Beckers, R.Boyce, A.Brunet, P.Crié, R.De Barse, S.De Bourgies, O.Douliery, M.Dubrac/Anyone, J.Eder, M&P.Fogden, D.Gray, Ch.Guibbaud, N.Gouhier, P.Hounsfi eld, R.Jones/Sinopix, J.Karageorge, S.Leen, Ph.Lesage, B.Levy, F.Lolley, P.Loriferne, W.Lyons, Ph.Matsas, L.Moscia, D.Mossiat, Th.Orban, A.Abd Rabbo, M.Ralston/AFP, D.Rose/Panos, M.Sasse/Laif, L.Schifres, J.Shaw, B.Sherif, P.Sittler, R.Shroeder, P.Souders, F.Werner, X. © 04/2008
COUV_RADD_SUEZ_GB_V7.indd 3 23/05/08 19:38:11
A Public Limited Company with a share capital of €2,615,529,924 Corporate headquarters: 16, rue de la Ville l’Évêque - 75008 Paris - FranceTel.: +33 (0)1 40 06 64 00 Paris Register of Commerce: 542 062 559 RCS PARISVAT FR 52 542 062 559
www.suez.com
OUR VALUESProfessionalism
Sense of partnership
Team spirit
Value creation
Respect for the environment
Ethics
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