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PRESS RELEASE

Sustainable performance: Veolia Water innovates and makes

commitments to local public authorities and its industrial clients   Paris, March 22, 2012 – Local public authorities and industrial companies are increasingly seeking to reduce their environmental footprints and wanting to demonstrate their commitment to a measurable and effective approach to sustainable development. Veolia Water, in a move to innovate and make concrete commitments, today announces the seven overall performance targets it has set itself for the 2012–2014 period, as well as the introduction of extra-financial evaluation of its public service management contracts.   Seven ambitious performance targets for the 2012–2014 period For Chief Executive Officer Jean-Michel Herrewyn, “Veolia Water is proposing a new vision of its business that combines the three fundamental criteria of Service, Value and Responsibility. We aim to improve the overall performance of our water and wastewater services, while at the same time controlling costs, optimizing resource efficiency and playing a role in finding the right social equilibrium. For the 2012–2014 period, we have set ourselves seven overall performance targets that reflect our commitment to responsible and sustainable management of the services contracted to us.” Targets for Service:

Reduce leak volumes by 5% on a comparable basis o Indicator: leak volumes expressed in cu. m

In 2010, Veolia Water’s average worldwide network efficiency was 75.3% and the average water volume loss on its networks was 2,188 million cu. m.

Improve the energy efficiency of wastewater treatment plants by 5%

o Indicator: amount of energy purchased to the amount sold in kWh/g of BOD5 abated

In 2010, 637.7 watt-hours were needed to treat 1 cu. m of wastewater.

Maintain the percentage of the population receiving poor quality water at 0 o Indicator: population receiving “poor quality water” below 10 people per 1 million,

or 1,000 people for Veolia Water’s entire scope

In 2010, 98% of the population served by Veolia Water received good quality water.

Target for Value:

Increase the volume of collected and treated wastewater that is reused by 10% o Indicator: collected and treated volumes reused expressed in cu. m

In 2010, Veolia Water enabled reuse of over 117 million cu. m of wastewater.

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Targets for Responsibility:

Quantify the overall greenhouse gas emissions of the operations managed by Veolia Water

o Indicator: metric tons of CO2 equivalent emissions, i.e., direct and indirect emissions

In 2010, Veolia Water emitted: - 163.9 g of CO2 per cu. m of water produced and 40.8 g of CO2 per cu. m of water distributed - 44.2 g of CO2 per cu. m of wastewater collected and 178 g of CO2 per cu. m of wastewater treated.

Quantify the number of sites that have conducted a diagnosis or introduced an action plan for restoring local biodiversity, with a view to increasing them

o Indicator: number of water production and wastewater treatment plants operated by Veolia Water that have conducted a diagnosis or have introduced an action plan.

Achieve a rate of 90% of the relevant activities of Veolia Water covered by an Environmental Management System

o Indicator: percentage of relevant revenue covered by an EMS, including facilities that are ISO 14001-certified. In 2010, the EMS coverage rate of relevant revenue was 87%.

Introduction of extra-financial evaluation for public service management contracts In France, Veolia Water is now rated for its extra-financial performance on 12 public service management contracts—seven in water services and five in wastewater services. The most recent rating by Arcet Cotation, a French leader in extra-financial rating of public service management, has been given to Veolia Water for public wastewater services for the Melun Val de Seine joint district authority (population of 108,469). The first rating was A++ on a scale ranging from DDD to AAA. Veolia Water signed a contract with the agency for periodic evaluations during the life of the contract. The company’s goal is to reach the highest rating by the end of the contract, in 2024. To succeed in that, the company has embarked on a program of close to 120 concrete actions. A sustainable development fund has been created: 5% of Veolia Water’s revenue from the contract will be paid into the fund annually and will go to financing the improvement actions. “Evaluating the quality of public water or wastewater service involves more than just price. It’s important for authorities to have objective criteria for evaluating and monitoring the overall performance of the service they receive over the long term,” says Jean-Michel Herrewyn. “By having the overall performance of the services we manage evaluated by a reputable agency, we prove our commitment to service quality and performance over the long term and demonstrate how much value is added by a company specialized in managing a public service.”

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Illustration: Managing carbon and water footprints

In addition to its performance commitment to reducing its own carbon emissions, Veolia Water has enhanced its services in footprint management. Thanks to its wide expertise and range of technologies, Veolia Water is now helping public authorities and industrial companies around the world reduce their carbon footprint. Achieving carbon neutrality in wastewater treatment, for example, is possible. Veolia Water has managed the carbon footprint from wastewater treatment for a major German paper-maker, bringing it down to zero. The wastewater treatment plant for the German city of Gera became energy self-sufficient almost a year ago; this has considerably reduced its footprint.

Today, Veolia Water is going even further by making an open-source water-footprint calculator available to public authorities and industrial companies. The “WiiX” (water impact index) provides a measure of the impact of human activities on local water resources. It is the sole indicator to include qualitative and quantitative factors: water stress, water resource pollution, the water-energy link, etc. It can be used to analyze the impacts of municipal and industrial services.

The WiiX calculator can also be used to generate a report identifying areas where impacts on local water resources can be reduced and to determine the best return on investment.

“Not enough water is available where people need it. The number of users, all legitimate, is rising: more water is needed for food, for energy, for industry. These uses compete with each other for a resource that has become scarce,” explains Jean-Michel Herrewyn, Chief Executive Officer of Veolia Water. “We must embrace a culture of responsibility in order to find the right balance and propose new solutions. Every city must be prepared to provide better quality service to more people but with fewer available resources. This is a difficult balance to strike. By offering reliable solutions for evaluating and managing the water footprint, we help local public authorities and companies join this culture of responsibility. That is our duty as a leader.”

Veolia Water, the water division of Veolia Environnement, is the world leader in water and wastewater services. Specialized in outsourcing services for municipal authorities, as well as industrial and service companies, it is also one of the world’s major designers of technological solutions and constructor of facilities needed in water and wastewater services. With 96,651 employees in 69 countries, Veolia Water provides water service to 103 million people and wastewater service to 73 million. Its 2011 revenue amounted to € 12.617 billion. www.veoliaeau.com Veolia Environnement (Paris Euronext: VIE and NYSE: VE) is the worldwide reference in environmental solutions. With more than 315,000 employees the company has operations all around the world and provides tailored solutions to meet the needs of municipal and industrial customers in four complementary segments: water management, waste management, energy management and passenger transportation. Veolia Environnement recorded revenue of €29,6 billion* in 2011. www.veolia.com * Excluding VeoliaTransdev revenues currently under divestment

Contacts Marie-Claire Camus Stéphane Galfré Tel: +33 (0) 1 71 75 06 08 Tel : +33 (0) 1 71 75 19 27 marie-claire.camus@veolia.com stephane.galfre@veolia.com