Veolia Water UK Environmental And Social Report 2002 by Veolia Water

Vivendi Water UK PLC ENVIRONMENTAL & SOCIAL REPORT 2002

Contents ENVIRONMENTAL & SOCIAL REPORT 2002

Introduction

Highlights of the Year

Water Resources Our goal… to manage groundwater and surface water resources to preserve their social, ecological and economic value.

Energy, Materials and Waste Our goal… to reduce our consumption of non-renewable natural resources by using renewable alternatives where possible and by optimising efficiency of use.

Water Services and the Community Our goal… to meet our customers' expectations in terms of the provision of water and related services and to contribute in other ways to the quality of life in the communities we serve.

Biodiversity Our goal… to carry out our activities to maintain and enhance biodiversity and to assist others to do the same.

Our goal… to inform others of the steps we are taking to promote sustainable development, to consult them, and take into account their views when developing our programmes and plans.

NOTES This report contains information on environmental performance during the reporting year 1st April 2001 to 31st March 2002. The activities described took place during this period unless indicated otherwise. Key statistics and other information reflect either the average during the year or the position at the end of the year as the context indicates. “Industry Average” means the average of the water service companies and water supply companies in England and Wales. Unless indicated otherwise, the sources of this data are reports published by the Director General of Water Services.

Engaging with our Stakeholders

Business Management for Sustainable Development Our goal… to manage our businesses taking into account and balancing the three dimensions, (environmental, social and economic), of sustainable development.

Glossary

Verification Statement

Invitation to Comment Company Information (Inside back cover)

The water businesses of the Vivendi Water UK Group The water businesses of the Vivendi Water UK group comprise three water supply companies: • Folkestone & Dover Water Services Limited • Tendring Hundred Water Services Limited • Three Valleys Water PLC together with Vivendi Water Partnership (VWP), Vivendi Water Projects (VWPr), Vivendi Water Industrial Outsourcing Ltd (VWIO) and Vivendi Water UK plc. (For a detailed explanation of the organisation and ownership of the Vivendi Water UK plc group please see the Annual Report and Accounts.) Each water company supplies water to customers within a designated supply area; they do not provide sewerage services. Vivendi Water Partnership (VWP) provides planning, engineering, scientific and laboratory services to the three regulated companies; Vivendi Water Project (VWPr) develops non-regulated water related business, Vivendi Water Industrial Outsourcing (VWIO), a 50/50 joint venture between Vivendi Water and Vivendi Water Systems (see below), is a one-stop shop for the outsourcing of water and wastewater management services to industry; Vivendi Water UK oversees the three water supply companies, VWP, VIVENDI VWPr and VWIO, providing assistance in relation to corporate matters and financing.

Vivendi Environnement Vivendi Water is part of Vivendi Environnement, the world’s leading environmental services group. Vivendi Environnement became an independent company in June 2002 when Vivendi Universal reduced its holding to 41%. (This was subsequently reduced to 20% in November 2002.) Its other activities comprise water equipment design and supply (Vivendi Water Systems), waste management (Onyx), energy services (Dalkia) and transport (Connex). Worldwide, Vivendi Environnement employs around 295,000 people. It is listed on the Paris and New York stock exchanges. Net revenues for 2001 were €29.1 billion (£18.3 billion). See below. Vivendi Environnement companies have been developing a strong presence in the UK since the mid-1980s. The UK is one of the few countries outside France where all major group activities are represented. Together the UK companies employ approximately 21,000 people and had a turnover of £1.5 billion in 2001.

Environnement

Systems

Industrial Outsourcing

Projects

Partnership

WATER SERVICES AND THE COMMUNITY

Vivendi Environnement Worldwide In 2002 Vivendi Environnement published its second Sustainable Development Report which covered the activities of the group worldwide. The Water Group in the UK contributed information from its own performance measurement systems. During the year the Vivendi Environnement management ratified a 10-point Sustainable Development Charter which aims to promote environmental quality, foster economic growth and enable social progress. Performance indicators have been developed to measure progress against objectives set for Vivendi Environnement’s operations worldwide and the water companies in the UK will play their part.

public health. Accordingly, the Group established an independent body, Vivendi Environnement Institute, with a mission to define strategic goals within the long-term perspective of sustainable development. The Institute is backed by a Foresight Committee of international experts, including the economist Professor Amartya Sen who won the Nobel Prize in Economics in 1998. Vivendi Environnement’s Sustainable Development Report is available on the Internet at www.vivendienvironnement.com Vivendi Environnement’s Sustainable Development Charter comprises ten commitments (see below) which inform the development and implementation of our policies and procedures.

Those most applicable to the water businesses in the UK are: • Air

to reduce greenhouse gas emissions and limit atmospheric pollutants

• Water

to extend drinking water supply, conserve water resources and protect them from pollution

• Waste management

to control pollution arising from waste management and reduce primary consumption by recovering and recycling waste

• Soil

to preserve soil quality, improve fertility, and remediate contaminated soils

• Living environment

to fight noise and odour; to improve landscape integration

• Social policy

to implement social reporting, demonstrate community solidarity and foster an ongoing and transparent dialogue with stakeholders.

As a major player in its sector, with a range of activities that contribute to the quality of life, Vivendi Environnement intends to take part in the collective thinking regarding the broad challenges facing society today such as water scarcity, climate change and threats to

Vivendi Environnement Commitments Protect the environment, preserve resources and combat pollution Implement an Environmental Management System Provide resources to maintain compliance with relevant legislation and standards Improve health and safety performance by adopting an integrated risk management policy Increase the research and development programme to improve environmental and economic performance Engage with our supply chain to encourage adherence to our sustainable development commitments Meet and anticipate as far as possible present and future stakeholder needs and expectations Provide employees with training and opportunities for personal development Integrate international standards covering basic human rights, ethics, the environment, occupational safety and labour law Broaden our dialogue with stakeholders to increase access to essential services for all

Vivendi Water UK plc Corporate Responsibility: Statement of Policy and Principles The primary objectives of our business are to deliver sustainable water management services to our customers and a financial return to our investors We will conduct our business in accordance with the highest standards of corporate responsibility and Vivendi Environnement company values, in order to protect and enhance the welfare and interests of our stakeholders and the environment We will maintain efficient and effective systems for risk management to contribute, among other objectives, to the implementation of this policy We will regularly review this statement, its implementation and effectiveness, and modify it in the light of practical experience We will strive to improve our performance continuously, monitor this policy and report regularly. More generally, we will communicate openly about our policies, plans and performance. This statement is a key part of the company’s overall strategy and operating policy. It will be taken into account in setting performance objectives of subsidiaries and individual units. We will ensure that our employees act in accordance with the policy.

Environmental Policy We will seek to contain the negative environmental impacts of our activities to the practicable minimum by applying our environmental principles. We will strive to meet the environmental standards required by legislation, regulation and codes of practice. Where practicable, we will encourage conservation of, access to and recreation on our landholdings, and communicate with environmental groups, local government and the community on environmental matters.

Environmental Principles To manage our environmental impacts and improve the environment, we will: • Comply with legal requirements, in co-operation with Government and regulators • Wherever practicable, minimise the negative impact of the company’s activities on the environment and society • Ensure the efficient use of energy, water, fuel and other resources • Minimise waste, prevent pollution and re-use or re-cycle waste materials. In accordance with our duty-of-care we will dispose of residual waste responsibly • Co-operate in the conservation of legislatively designated sites and other locations of archaeological, historical or environmental interest and sensitivity where they may be affected by our activities. More generally, we will promote biodiversity where practicable • Encourage conservation of, access to, and recreation on our landholdings wherever possible and within the constraints of the business • Undertake environmental impact assessments of proposed activities when appropriate • Communicate effectively with stakeholders on environmental matters • Provide relevant training to staff in order that they can fulfil their responsibilities • Promote staff awareness of environmental issues and encourage participation in environmental initiatives • Influence and provide appropriate support to suppliers to act in accordance with these principles when they are undertaking business for us.

WATER SERVICES AND THE COMMUNITY

Social Policy We will act in a manner consistent with maintaining the welfare and interests of stakeholders and, where possible, we will seek to make a positive contribution to them.

For our investors we will: • Treat them fairly and seek to minimise the financial risks to which they are exposed • Provide them with the information which they need to monitor their investments.

For our customers we will:

For our suppliers we will:

• Maintain the highest standards of service

• Act fairly and reasonably in our dealings with our suppliers and potential suppliers

• Treat them fairly, particularly in financial matters • Endeavour to give good advice to those who are having difficulty in making payments

• Follow reasonable payment policies

• Respond promptly to all inquiries

• Have regard to the welfare and interests of their employees, and seek to assist suppliers to operate in a safe, sociallyresponsible manner.

• Provide them with the information that they need about matters which they raise with us and anything relevant affecting our services • Encourage, and advise on, efficient water use.

• Endeavour to assist them in fulfiling their undertakings to us

For our neighbours and local communities in which we operate we will: • Work with and support the local communities in which we operate

For our employees we will: • Maintain the highest standards of health and safety in our operations • Provide all necessary training and resources in health and safety matters • Ensure that staff receive appropriate education and training to enhance their skills and develop their potential • Reward our employees fairly for their work

• Maintain good relations with individuals, groups and representatives of those communities and provide them with the information that they need about our business • Respond to any issues raised in a timely manner • Undertake and support educational work about water matters and generally • Support appropriate community projects • Support, and encourage our staff to support, various charities.

• Ensure that good quality occupational health advice is available • Provide appropriate recreational facilities for employees

Economic Policy

• Promote a work environment free from discrimination built upon mutual trust and respect

In the interests of our stakeholders, we aim to conduct our activities efficiently, effectively, ethically and profitably on a long term basis.

• Allow freedom of association and co-operate effectively with those who represent our staff on employment matters.

We will seek to maintain our assets to ensure that high standards of service can be ensured both now and in the longer term.

Environmental Management Within the Water Businesses of the Vivendi Water UK Group At each company, the Managing Director takes overall responsibility for environmental performance and reports on this to the company’s Board. Each company has one or more Environment Champions responsible for promoting initiatives, monitoring performance and internal communication. The Right Honourable John Gummer is non-executive director of Vivendi Water UK PLC with special responsibility for the environment and chairs the Corporate Responsibility Advisory Committee to the Board. Dr Neil Summerton CB is a non-executive director of Three Valleys Water and of Folkestone & Dover Water Services where he has specific responsibility for environmental policy and performance. He advises Vivendi Water UK on economic and environmental regulation and is a member of the Corporate Responsibility Advisory Committee. He was formerly Director of the Oxford Centre for Environment, Ethics & Society, Mansfield College, Oxford, and of the Oxford Centre for Water Research.

Statement from The Rt Hon John Gummer The Johannesburg Conference on Sustainable Development, in which Vivendi Water played a valuable part, refocused the world upon the prime role of water and sewerage in the alleviation of poverty and disease. The provision of potable water is crucial to the environmental improvement of many parts of the developing world and Vivendi Water’s involvement in making that a reality is evident in the company’s commitment to the highest standards, universally applied. Here in Britain, where for well over a century water and sewage systems have been made available, Vivendi Water recognises the same obligation to environmental improvement. We need to provide our customers with a service that properly recognises the rising level of environmental expectation among customers, NGOs, and legislators. This report details the ways in which we seek to do that and measures our performance over the past year. Our industry is significantly regulated, both by the UK Government and its agencies and by the European Union. There is no doubt that European Union legislation has been responsible for driving very significant improvements in water quality in Britain. Without this pressure much of what has been achieved in recent years would not have happened. Nonetheless, there is still much to be done to meet increasing environmental expectations. Vivendi Water’s priorities are to reduce our use of non-renewable resources, our consumption of energy, and our production of waste. We shall use renewable alternatives wherever that is possible and work innovatively to optimise our efficiency. In doing all this we lay great emphasis on the need to measure in a coherent and relevant way. It will be increasingly true that companies will be expected to take their corporate environmental and social responsibilities as seriously as their financial obligations. For that reason we have sought properly to measure our output of greenhouse gases, to reduce them and, wherever possible, to find indirect and direct alternatives. Yet, after all, this is a customer orientated business. Vivendi Water has to provide the service our customers expect and that stands strong in comparison with our competitors. The water industry has done a great deal to meet the regulatory demands of recent years. As a result, Britain is in an excellent position to help improve standards in the rest of the world. In our water businesses we shall continue to measure and monitor to ensure that we reach the high standards that we have set ourselves.

Chairman of Corporate Responsibility Advisory Committee and non-executive Director of Vivendi Water UK PLC

WATER SERVICES AND THE COMMUNITY

Meeting expectations in a rapidly changing world â&#x20AC;&#x201C; an introduction by the Managing Directors The 2001/2002 year has been one of tumult and uncertainty for the world and for Vivendi Universal. External factors such as the huge growth in the threat of terrorism, Foot and Mouth disease, Enron, regulatory changes and extremes of climate have placed some significant pressures on the core business of supplying water fit for human consumption. The business position of Vivendi Universal has been well documented and our parent company Vivendi Environnement has become independent of its majority shareholder. All credit is due to those who have worked diligently to meet our objectives and achieve the highest standards of service during difficult and testing times. We maintain our business objectives of delivering secure, safe, value for money water services to our customers whilst increasing efficiency and growth of the core business. Investment in state of the art technology to deliver water of a consistently high quality has continued, with the construction and commissioning of several microfiltration plants. This is consistent with our commitment to reduce the risk of pollution of our water sources and supplies through investment rather than simply monitoring and reacting. Outside our mainstream business, environmental and economic pressures on industrial companies are presenting opportunities to provide innovative water management solutions to clients. These clients expect the highest standards of professionalism, efficiency, integrity, safety and environmental performance. The success of our Corporate Responsibility programmes demonstrates our commitment and ability to meet these expectations. This is the second year that we have reported within the scope of Corporate Responsibility (CR). To us, CR includes the social, ethical and environmental dimensions of our business. The economic element of sustainable development is captured in our Annual Report and Accounts. Our CR programmes are based on a policy drawn up by the CR Advisory Committee. Expansion of reporting into these less defined areas is proving challenging and rewarding. Increasingly, we find hidden talents and knowledge within the businesses as we explore our organisation in more depth and establish measurements and baselines. We are particularly proud of our achievements in leading and supporting environmental education, retaining Investors in People status and operating to high standards of safety. We continue to make progress in important areas of our business, particularly in managing demand for water, encouraging water conservation, and reducing energy and waste. Productive partnerships with local communities and NGOs have been enhanced. It is especially pleasing to have received awards for social inclusion partnerships such as Working Herts and protection and encouragement of biodiversity. It is our goal to engage with our stakeholders in a positive and progressive manner and to this end we will be arranging a discussion forum in conjunction with Vivendi Environnement. This report is an essential element of our strategy of communication with our stakeholders. A cornerstone of that strategy is to actively solicit feedback. There will be internal sessions for staff and more targeted communication material. As in previous years we invite stakeholders to comment on the report and our business in general. A postage-paid reply coupon is attached. The report will be made available on various of our business web sites; comments can be made via e-mail to kathleen.lucey@vivendi-uk.com. Our vision is to deliver a reliable, cost effective and sustainable water service whilst protecting the environment and enhancing the quality of life of our stakeholders. This report demonstrates our progress towards achieving that vision. We trust you find the report stimulating and reassuring that we are on track.

FranĂ§ois Darley Executive Officer

Jean Claude Banon Managing Director

Vivendi Water Partnership Limited

Vivendi Water UK PLC

David Alexander Managing Director Three Valleys Water PLC

Peter Darby Managing Director Folkestone and Dover Water Services Limited & Vivendi Water ProjectsLimited, and Chairman TendringHundred Water Services Limited

David Wright Managing Director Vivendi Water Industrial Outsourcing Limited

Highlights of the year Our environmental and social programmes are based on a Framework for Corporate Responsibility which was drawn up by the Corporate Responsibility Advisory Committee for consideration by the main board. This framework, which is being adopted throughout the water businesses, extends the scope of the four general management principles, which we have used over the past six years to categorise our overall performance. How did we perform this year? Compliance and good practice: to carry out our water operations in compliance with the relevant regulations. • For the seventh year running none of the companies was prosecuted and no water pollution enforcement notices were served. There was one minor incidence of non-compliance with our abstraction licences (see p.14) and one formal caution (see p.14) • We supplied drinking water considered to be of “high quality” and in line with the industry average (see p.23). UK drinking water standards are the highest in the world • We installed state-of-the-art filtration treatment plants at several locations to reduce the risk of supplying Cryptosporidium-contaminated water (see p.24) • We updated our Safeguard Register to ensure we continue to satisfy the individual requirements of vulnerable and special needs customers (see p.29) • We conducted an analysis of our human resource, social and ethical policies and practices in relation to good practice. Risk management: to reduce the likelihood of incidents, and to manage effectively should they occur • We upgraded our risk management procedures in response to the Stock Exchange’s Combined Code on Corporate Governance • Our emergency procedures operated satisfactorily when dealing with exceptional conditions such as the Denge water quality incident (see p.23) • We are reducing the risks of incidents principally through catchment protection and upgrading treatment works (see p.12) • Our health & safety procedures ensure our employees and stakeholders are not exposed to unacceptable risk from our activities (see p.33). Continuous improvement: to identify and pursue both short-term and long-term actions that will help meet our aims and aspirations for sustainable development. • • • • • •

Two companies met their leakage targets. Tendring Hundred has the lowest leakage levels in England and Wales The Environment Agency approved our Water Resources plans We improved the quality of data collected for waste going to landfill and increased the amount of waste recycled We improved the fuel efficiency of our vehicles We continued to foster priority species and habitats targeted in Biodiversity Action Plans Of seven new targets for the year, four were met, one was narrowly missed and two were progressed. Of 22 ongoing targets we are on track with 13, and made progress with seven others. Two were not progressed. We have set 13 new targets for completion in future years.

Effective communication: to enhance our reputation for environmental and social performance that is based on actions and supported by appropriate publicity. • The annual Environmental and Social Report is published on the water companies’ internet sites. • Three Valleys won a Green Apple Award for their Water Works project with Working Herts (see p.29) • Folkestone and Dover won a Green Apple Award for their contribution to the enhancement and protection of environmentally sensitive areas (see p.29) • Three Valleys were awarded a national commendation for their Environment Centre’s schools programme (see p.29) • Three Valleys were once again awarded RoSPA Gold Award for Occupational Safety (see p.33) • Three Valleys retained its Investors in People status • Business in the Environment Index of Corporate Environmental Engagement: our 2001 score was above the average of FTSE 100 companies and in line with that for FTSE 350 utility companies (see p.34).

Water Resources Our goal... to manage groundwater and surface water resources to preserve their social, ecological and economic value.

This goal reflects Vivendi Environnementâ&#x20AC;&#x2122;s primary commitment to protect the environment, preserve resources and combat pollution, activities which are its core business.

Managing for sustainable development

• Tendring Hundred’s supply:demand balance is adequate. • Three Valleys has a potential shortfall in four of its seven zones. This partly reflects reductions in water available for use due to the impact of groundwater pollution and non-renewal of licences. In addition the demand for water over the last few years has grown faster than predicted and the company is in a similar position to that of five years ago. The company has responded by bringing forward a number of capital investment schemes to maintain security of supplies to customers

Our task is to balance the demand for water against the availability of water resources in the areas where we operate, whilst protecting the environment. Due to the pressure on water resources in our supply area (South East England) this requires innovative solutions. We do not act alone; the Environment Agency plays a major role in determining the availability of resources and determines licence applications to abstract water between competing demands. Each year, our companies must submit detailed Water Resource Plans to the Environment Agency, as well as drought contingency plans every three years. In 2001/02 each of our companies’ plans was approved. These plans are reviewed annually, and an update supplied to the Environment Agency.

Domestic demand for water Another indicator used in forward planning water resource management is the per capita consumption rate (see below). With the Government’s projected growth of 1.4 million new households in the South East & London between 1996 and 2021 future household demand is a key driver of water resource planning. In addition, changes in the climate, with wetter winters and drier, hotter summers, have to be taken into consideration. Overall water resource availability is also threatened by changing patterns of land use such as urbanisation and land drainage. To plan for these effects, our companies’ Water Resources plans considered different climate scenarios, development patterns and demand conditions. As a consequence of this planning, the companies have not imposed hosepipe bans in recent years.

An important measure of companies’ water resources positions is the security of supply index. Water companies plan to meet demand in a drought year, but they also maintain a security margin to account for uncertainty and risk in the availability of resources and the extent of demand. The index is however a quite complex indicator, reflecting the limitations of the investment programmes imposed in past periodic reviews. Moreover it is a snapshot in time. SECURITY OF SUPPLY INDEX* MARGIN OF SECURITY 2001/02 2000/01

FOLKESTONE & DOVER

-91

TENDRING HUNDRED

100

THREE VALLEYS

Despite major efforts to promote water efficiency among all customers, the trend in unmeasured per capita consumption continues upwards. This growth is a result of unmeasured customers switching to meters as well as increasing numbers of single person households and increased appliance ownership and use. In addition, the Three Valleys’ supply area contains the highest socio-economic groupings in England, with attendant high water usage. Tendring Hundred’s customers continue to have the country’s lowest per capita water consumption rates.

The chart shows: • Folkestone and Dover’s margin which will improve as a result of acquiring new borehole sources and reaching agreement on group licensing issues with the Environment Agency

AVERAGE PER CAPITA WATER CONSUMPTION (litres per head per day, excl. supply pipe leakage).

200 180 160 140

FOLKESTONE & DOVER

TENDRING HUNDRED

*Please see Glossary for an explanation of the significance of these scores.

THREE VALLEYS

2001/02

1999/00 1999/00 2000/01 2000/01 2001/02

1997/98 1997/98 1998/99 1998/99

1999/00 2000/01 2000/01 2001/02 2001/02

1997/98 1997/98 1998/99 1998/99 1999/00

2001/02

1999/00 1999/00 2000/01 2000/01 2001/02

1997/98 1997/98 1998/99 1998/99

2001/02

2000/01 2001/02

1999/00 1999/00 2000/01

100

1997/98 1997/98 1998/99 1998/99

120

INDUSTRY AVERAGE UNMEASURED

MEASURED

11 2

WATER RESOURCES

Catchment protection The water resources balance is not just threatened by rising demand, droughts and climate change. If raw waters become polluted, they may become temporarily or permanently unavailable, reducing the amount of water available for use. Protecting the quality of raw waters, therefore, is a key part of sustainable water resources management. Our companies do not act alone in this. The Environment Agency has a role in monitoring and protecting the catchment and prosecuting those responsible for pollution offences. At Three Valleys the pollution of two sources from bromate leaching from an old chemical site prevented their use throughout the year (as reported in last year’s report.) As there is no recognised treatment for bromate, Three Valleys set up a pilot plant trial during the year to test a process for removing bromate from water. Three Valleys experienced a further pollution incident resulting from leakage of petrol from underground tanks. Effective action prevented the pollution affecting the quality of the public water supply (see below). Three Valleys’ WaterWatch project continued through the year. This involves maintaining a detailed catchment survey of pollution risk for source sites. The aim is to reduce the risk of impact on groundwater in the long term. Vivendi Water Partnership continued to manage extensive catchment protection programmes on behalf of the water companies. Three Valleys also actively supported research programmes into groundwater quality trends. See p.25 for a summary on research and development.

Misbourne, Beane, Ver and Hiz. The rivers Mimram, Gade and Pant are currently undergoing sustainability studies. For several years Folkestone & Dover has been in discussion with the Environment Agency regarding new and amended abstraction licences in the Dover area.These licences form part of a more general review that will reduce the impact of water abstraction on the upper reaches of the river Dour. Vivendi Water Parnership has maintained its ongoing dialogue with the Environment Agency. This year Vivendi Water Parnership provided information on groundwater levels, operation of low flow schemes, water quality and volumes abstracted. It also helped the Environment Agency to develop water resources models.

Using water more efficiently…actions Water efficiency actions are another way of bridging the potential gap between demand and supply. The scope of actions increased again this year (see below). Most notably more customers are metered and more water saving devices were issued. All three companies operate the following programmes: • A freephone to report leaks • Free first repair or renewal of supply pipes, and subsidies for subsequent repairs or renewals • Metering of new properties • Optional metering of domestic properties, free in all areas • Compulsory metering of sprinkler users • Metering of all remaining commercial customers and swimming pool customers, wherever practical.

Groundwater pollution threat In December 2001 Three Valleys experienced a pollution threat from a leakage of 37,000 litres of unleaded petrol at a filling station in Luton. Stock taking at the station revealed that an underground fuel storage tank had developed a leak. The oil company has taken remedial action and Three Valleys has reduced abstraction rates from the nearby pumping station, replacing these with imports from a reservoir in Cambridgeshire. As a result of these measures the leakage has been contained and no petrol pollution has been found in the raw water or in the local supply system. The source will be monitored until the petrol is recovered.

Action for low flow rivers Society's demand for water has to be met efficiently and economically; this is the function of the water companies, and they have statutory duties to that effect. This must be done at the same time as ensuring that there is enough water in the environment to maintain good quality rivers, lakes and wetlands . Three Valleys continues to operate schemes on a number of rivers in their area at risk from low flow and over-abstraction including the Rivers

In addition, Three Valleys has been leading a UKWIR (see glossary) project to establish ‘Best Practice in Measuring the Effects of Water Efficiency Measures’, including their long-term sustainability. The company also participates in a number of external groupings looking at, for example, the uptake of water efficient fixtures in new build developments, benchmarking water use so as to better focus water efficiency techniques, improving water efficiency in South East England, and promoting water conservation. Three Valleys exceeded its target for total leakage mainly due to exceptional weather conditions in the winter. Unusual cycles of dry and wet weather in the autumn followed by cycles of freezing and thaw led to soil movements and a four-fold increase in burst mains during January and February. A pilot study commissioned during the year to develop an integrated leakage report system has proved successful and will be rolled out across the whole of the company during 2002/03. When fully operational, it will allow a more comprehensive and targeted leakage assessment. When viewed in absolute terms, however, the company’s leakage levels have reduced to below that of five years ago and are below the industry average. This is despite the relatively low take-up of metering in the Three Valleys’ area and, as a result, leaks in supply pipes of unmetered

This objective is consistent with the UK Government’s Quality of Life Indicator for rivers of good or fair quality. See Glossary.

customers going unrepaired. The company estimates that one-third of total leakage comes from customersâ&#x20AC;&#x2122; own supply pipes.

Metering is an important demand management tool; however its use is limited due to current legal restrictions. All three companies continue to offer metering free of charge, installing over 12,700 in 2001/02. On average across the group, one in four customers now has a meter. Fifty two per cent of Tendring Hundred customers have a meter, 36% at Folkestone & Dover and 20% at Three Valleys.

Folkestone & Dover and Tendring Hundred met their respective leakage targets. Having achieved consistent levels of leakage, they have set themselves similar targets for 2002/3 with the approval of the regulator, Ofwat. Tendring Hundred achieved the lowest level of leakage per property in the industry.

Despite extensive water efficiency actions during the year, average demand for water was five per cent higher than last year, reflecting a difficult operational year at Three Valleys due to the weather (a warm summer followed by a wet autumn, resulting in increased demand and increased leakage).

This year we have decided not to report leakage figures as a percentage of distribution input as this can be misleading. Increased consumption due to a long period of hot weather will appear to lead to improved leakage levels, when in fact there has been no reduction in the amount of water lost. Similarly, successful water efficiency actions will reduce the amount of water put into supply, which can lead to an appearance of increased leakage.

LEAKAGE ACHIEVEMENTS Actual and target rates of total leakage: megalitres/day.

1996/97

1997/98

1998/99

1999/2000

2000/01

2001/02

2002/03

ACTUAL

TARGET ACTUAL

TARGET

FOLKESTONE & DOVER

10.2

9.8

8.7

9.3

8.7

8.6

8.5

8.4

8.6

8.5

TENDRING HUNDRED

6.4

6.1

5.7

5.5

5.4

5.5

5.2

THREE VALLEYS

202

180

172.5

159.8

157.1

145.5

145.1

141.8

140.3

141.2

157.1

140

DEMAND FOR WATER Water treated and put into supply by Vivendi Water UK companies 1995/6 - 2001/02 (annual average megalitres per day) (incl. imports)

1000 900 800 700 600 500 400 300

FOLKESTONE & DOVER

TENDRING HUNDRED

THREE VALLEYS*

2001/02

2000/01

1999/00

1998/99

1997/98

1996/97

1995/96

2001/02

2000/01

1999/00

1998/99

1997/98

1996/97

1995/96

2001/02

2000/01

1999/00

1997/98

1998/99

1996/97

1995/96

2001/02

2000/01

1999/00

1998/99

1997/98

1996/97

100

1995/96

200

VIVENDI WATER UK SUPPLY COMPANIES

* Figures are for the new Three Valleys Water company which merged with North Surrey Water in October 2000.

13 2

WATER RESOURCES

Water taken from the environment

There was one instance of a momentary exceeding of a licensed abstraction volume at Three Valleys’ Batchworth site. Measures were put in place to avoid a recurrence. It is highly unlikely that there were any environmental impacts resulting from this minor event.

For a fuller picture of total water losses (leakage figures are based on water that has been treated and put into supply), the companies again recorded the amount of water taken from the environment (ie before treatment) relative to water put into supply. At Three Valleys water lost during transport to and at treatment works amounted to 4.9% of the total abstracted, representing an increase of 1.5% on last year. This is primarily due to winter flooding and increased pollution of surface water resources, and, as a result, increased complexity of treatment to remove sediment and other materials.

In our offices We have an ongoing target to reduce water consumption at our offices. Overall, the group companies have achieved a level of 34 litres per employee which represents a reduction of 21% on 43 litres achieved in 1999/2000. The progress achieved to date needs to be maintained.

Three Valleys received a caution letter from the Environment Agency regarding silt pollution at Yeading Brook, South Ruislip, following a burst main. The pollution caused was minimal.

WATER TAKEN FROM THE ENVIRONMENT Water abstracted: (annual average megalitres per day) (incl.imports)

1000 800 600

FOLKESTONE & DOVER

TENDRING HUNDRED

2001/02

2000/01

2001/02

2000/01

100

2001/02

2000/01

200

THREE VALLEYS

WATER ABSTRACTED (INCL. IMPORTS) WHICH WAS PUT INTO SUPPLY WATER ABSTRACTED NOT PUT INTO SUPPLY

WATER RESOURCES Completed, ongoing and new targets

DATE SET 00/01 DATE SET 97/98 DATE SET

TO BE MET DURING THE REPORT YEAR To reduce total leakage (Ml/day) to…

ING RC U O TS R OU IP R L TE H E A A T I RS W TR WA C R NE ER PL US TE ED RT D A OV K A R N W D P U I D & R R R YS UN TE TE TE LE NE GH WA WA WA AL TO I I N I V I S D D D R E E EN EN EN LK RE ND VIV FO VIV VIV TE TH TO BE MET BY PROGRESS 8.5

5.2

141.2

01/02 TO BE MET BY

ONGOING TARGETS To reduce office water consumption

•

TO BE MET BY

NEW TARGETS

01/02

To meet total leakage targets (Ml/day)

8.5

5.2

140

01/02

To consider most efficient water appliances when replacing old or installing new fittings

•

PROGRESS

02/03

• Target achieved

•

PROGRESS

ongoing

Target partially achieved

New/ongoing targets

Energy, Materials & Waste Our goalâ&#x20AC;Ś to reduce our consumption of nonrenewable natural resources by using renewable alternatives where possible, and by optimising efficiency of use.

This goal reflects Vivendi Environnementâ&#x20AC;&#x2122;s primary commitment to protect the environment, preserve resources and combat pollution.

Energy consumption…in the supply of water

The increase in energy usage can be attributed to more accurate meter readings, as well as fluctuating weather patterns leading to higher levels of groundwater, the use of different boreholes and increased ozone consumption to treat polluted water. The main effort to reduce energy consumption will continue to be focused on water treatment and pumping because this accounts for 98% of electricity used.

Pumping water around the network for distribution purposes uses large amounts of energy which is still largely produced by fossil fuel. Energy represents therefore a major cost to business (coming second only to staff costs) as well as to the environment. In line with other capital-intensive sectors the Vivendi Water companies have suffered financially from the introduction of the Climate Change Levy. Unlike other industries the water supply sector cannot claim any rebate from the Levy due to the specific nature of the rules.

We also measure our consumption in offices and seek ways to reduce energy use where cost-effective to do so. Three Valleys publicised an energy awareness campaign internally to encourage all staff to contribute to energy savings. At Vivendi Water Partnership the office block refurbishment included installing energy and water-efficient fittings.

Energy consumption in the supply of water relative to the amount of water put into supply was higher than last year at all three companies. This was primarily due to increased water treatment due to the winter flooding and at Three Valleys the introduction of new treatment plants, as well as improved data recording at Folkestone & Dover.

ENERGY CONSUMPTION IN WATER SUPPLY Kilowatt hours/megalitre (net of imports)/metre water pumped

7 6 5 4 3

FOLKESTONE & DOVER

TENDRING HUNDRED

2001/02

2000/01

2001/02

2000/01

2001/02

2000/01

THREE VALLEYS

ENERGY CONSUMPTION IN OFFICE PREMISES

2001/02 KILOWATT - HOURS / M 2

PERFORMANCE ASSESSMENT ***

Folkestone & Dover: The Cherry Garden

Gas & Oil Electricity

87 64

Between “typical” and “good” practice Between “typical” and “good” practice

Tendring Hundred: Manningtree

Gas & Oil Electricity

90 122

Between “typical” and “good” practice Higher than “typical”

Vivendi Water Partnership: Watford

Gas & Oil Electricity*

15 0

Lower than “typical” -

Three Valleys Water: Hatfield

Gas & Oil Electricity

154 235

Between “typical” and “good” practice Higher than “typical”**

Vivendi Water UK: Old Queen Street

Gas & Oil Electricity

38 369

Lower than “typical” Higher than “typical”

N/A

* It is not possible to measure electricity consumption at Vivendi Water Partnership offices because the offices share a meter with an operational site, therefore separate meter readings for the offices cannot be taken. ** This is mainly due to the high density of centralised computing services in the Hatfield office. *** Energy consumption performance assessments are based on yardsticks prepared by the Government. See Glossary.

17 2

ENERGY, MATERIALS & WASTE

Greenhouse gases

J Slate

The annual carbon dioxide emissions associated with all our energy requirements, for water supply, offices and transport, were 95,000 tonnes, which is a 35% fall, or 51,600 tonnes reduction since 1995/96. This fall is associated with changes in the mix of fuels used to generate electricity supplied through the public electricity networks .

During the year operational staff at Three Valleys were trained in a powerful new tool called the J Slate, which delivers maps and job information into the field via an on-board modem. Available 24 hours a day, seven days a week, the field information system ensures water network information, including gas and electricity data, is available anywhere, anytime. The benefits include improved customer service through streamlined job tracking, reduced vehicle journeys to depot to collect instructions etc, and reduced costs.

Transport and travel In view of the increased use of contractors for maintenance work, we no longer report on the travel by fleet and other vehicles on company business. We will however monitor contractor movements so as to be able to record the full environmental impact of streetworks.

Fuel consumption Three Valleys can demonstrate a general downward trend in fuel consumption per property connected since 1995/96; Folkestone & Dover has reduced fuel consumption which reflects increased use of contractors. TYPE OF FUEL USED

CARBON DIOXIDE EMISSIONS

Annual consumption by fleet vehicles (â&#x20AC;&#x2DC;000 litres)*

Estimated emissions from energy consumption in water supply, offices and transport in Vivendi Water UK Group (tonnes CO2 per annum)

140,000

1000

120,000

800

100,000

600

80,000

400 2001/02

1997/98

1996/97

60,000

2000/01

1200

1999/00

160,000

1998/99

1400

1995/96

180,000

200

0 TONNES CO2 AT CONSTANT CONVERSION FACTORS

95/96

96/97

97/98

98/99

99/00

00/01

DIESEL

01/02 PETROL

* The table shows fuel use by three operating companies.

FUEL CONSUMPTION Annual consumption (litres) by fleet vehicles per property connected.

1.2 1.1 1.0 0.9 0.8 0.7 0.6

FOLKESTONE & DOVER

TENDRING HUNDRED

This indicator relates to the UK Governmentâ&#x20AC;&#x2122;s Quality of Life Indicator for climate change. See Glossary.

THREE VALLEYS

2001/02

2000/01

1999/00

1998/99

1997/98

1996/97

1995/96

2001/02

2000/01

1999/00

1998/99

1997/98

1996/97

1995/96

2001/02

2000/01

1999/00

1998/99

1997/98

1996/97

0.4

1995/96

0.5

Fuel continues to be substituted away from petrol and towards ultra-low sulphur diesel. Three Valleys has a programme of active maintenance and routine replacement of fleet vehicles with vehicles which meet the latest emission levels. During the year Tendring Hundred adopted a policy of purchasing all new vehicles (where possible) that are powered by LPG (liquefied petroleum gas). LPG produces between 30 and 90% less carbon monoxide and 50% fewer pollutants. Folkestone & Dover investigated phasing out own-licence large vehicles and adopted a policy of matching vehicle engines to jobs to increase fuel efficiency.

Travelling to work At Folkestone and Dover and Vivendi Water UK working at home is encouraged to reduce the number of journeys made. All water companies and Vivendi Water Partnership have introduced tele- and video-conferencing in order to reduce the amount of time and energy spent in travelling to inter-company meetings. This year we have set a new target to assess the potential benefits of these facilities.

Aggregate use and recycling in streetworks We are able to monitor the use of aggregates by measuring our own purchases and increasingly by contractually obliging our streetworks contractors to record their use, re-cycling and disposal of waste. In 2001-02, 24% or 35,000 tonnes of excavated material were recycled by our companies and contractors rather than going to landfill, compared to 17,549 tonnes last year. The increase in the amount of waste recycled is explained by improved data gathering at Three Valleys, where for the first time waste from mains laying activities has been included (in addition to that from streetworks). We remain on track with our target to reduce the amount of waste going to landfill.

GENERATION AND CONSUMPTION OF AGGREGATE MATERIAL IN STREETWORKS Annual generation and consumption (‘000 tonnes)

During the year Three Valleys pursued a major programme of rehabilitation of water mains, renovating over 100,000m of water main in order to reduce the risk of customers experiencing occasional short-term discolouration of their water supply. The work involved improving the existing pipe using “no-dig” techniques rather than open trench pipe laying, thus reducing the need for backfill material and avoiding excavation waste and environmental disturbance during streetworks.

230 220 210 200 190 180 170 160

Hole lot of waste

150 Three Valleys promoted the use of recycled material in excavations so as to reduce the volumes of material going to landfill, the purchase of new material and vehicle movements. It is not always possible to refill holes with untreated excavated material. Trenchmod© produces an excellent product which allows the recycling of excavated material that meets the stringent requirements of the Highways Authorities.

140 130 120

110 100

A three-month trial of the process took place in the winter of 2001/02; outstanding issues surrounding use of the material are currently being resolved

90 80 70 60 50 40

† 2002 figures also include waste from mains laying activities. Note : Waste figures include some estimation.

2001/02

2000/01

1999/00

2001/02

2000/01

1999/00

2001/02

2000/01

1999/00

Reducing the need to travel is consistent with the UK Government’s Quality of Life Indicator for road traffic. See Glossary.

FOLKESTONE & DOVER

EXCAVATED & LANDFILLED

TENDRING HUNDRED EXCAVATED & REUSED

THREE VALLEYS †

Moving away from disposal of waste towards waste reduction, reuse, recycling and recovery is consistent with the UK Government’s Quality of Life Indicator for waste

INFILL MATERIAL PURCHASED

arisings and management. See Glossary.

19 2

ENERGY, MATERIALS & WASTE

Waste production and disposal in water treatment

Office waste

Water treatment wastes are variable depending predominantly on the quality of raw waters and treatment processes that are used. They may contain river solids, filtrates or sludges from treatment. The amount produced increased this year, mainly due to flooding in the winter of 2001, with higher levels of sediments being carried by fast moving water. Of the waste disposed of, 14,750 tonnes or 99.4% was re-used as a soil conditioner on agricultural land, with the remainder being disposed of to landfill.

Across the group we used 26 tonnes of photocopying paper in main offices, a 25% increase compared with last year. Efforts to recycle paper and card have been frustrated by the lack of a stable market for recyclable paper waste.

At Three Valleys’ Clay Lane site, a new membrane treatment system was opened during the year. The ultrafiltration plant is the largest of its type in the world. The system design allows for washwater from the plant to be recycled to the head of the works instead of running to waste. The construction of Folkestone & Dover’s Lye Oak membrane plant (acting as a Cryptosporidium barrier) neared completion. Construction work was kept to a minimum by refitting an existing building. The site was designed to be as economical as possible with regard to recycling and reuse of water. The company is due to commission two further Cryptosporidium treatment plants in the course of 2002.

USE AND DISPOSAL OF WATER TREATMENT WASTES Annual generation, use and disposal (‘000 dry tonnes)

15 14 13 12 11 10 9 8 7 6 5 4

2001/02

2000/01

2001/02

2000/01

0 THREE VALLEYS

TENDRING HUNDRED LANDFILLED

USED AS A SOIL CONDITIONER

Folkestone & Dover have recycled all paper and card since 1995/96, recycling three tonnes of each per year, and have adopted a purchasing policy of buying only materials that can be recycled, eg toner cartridges. In the laboratory at Vivendi Water Partnership smaller bottles are being used for inorganic samples, the introduction of a new computerbased reporting system has reduced paper use, and plastic cuvettes are used once and then recycled. VW employees donated old mobile phone equipment for reuse and recycling, with the proceeds going to the charity WaterAid. During the year Three Valleys recycled all their waste office equipment such as old fax machines, PCs, and used ink cartridges, into the recycling chain.

Main environmental costs of water Our environmental data measurement systems are maturing and the confidence we can place in the data is improving each year. For the fourth year we present a summary of the main resources used, the key discharges, waste products and releases to the environment for each cubic metre of water we deliver to our customers. Whilst this table is not a complete picture of the resources used, we believe it indicates the principal impacts.

THE PRINCIPAL ENVIRONMENTAL COSTS OF WATER To deliver 1 cubic metre = 1000 litres (1 tonne) of water to a customer: 1998/99

1999/00

2000/01

2001/02

kWh of energy (electricity, gas & heating oil) used

0.768

0.722

0.775

0.767

Cubic metres of water lost from our pipes in distribution

0.129

0.118

0.111

0.118

Cubic metres of water lost from customers pipes

0.064

0.059

0.061

Kg of treatment wastes, excavates & aggregates generated

1.005

0.586

0.333

0.563

- (of which) kg landfilled

0.796

0.456

0.247

0.388

- (of which) kg recycled

0.209

0.130

0.086

0.175

Kg of carbon dioxide emitted into the air

0.351

0.327

0.349

0.346

Litres of fuel used in fleet vehicles

0.005

0.004

0.003

0.004

TO BE MET DURING THE REPORT YEAR

ING RC U O TS R OU R TE HIP E L A S T A A W RI ER R LC ER ST DW TN ATE OV KP AR RE DU W D P U D N I & R R YS R UN TE TE LE TE NE GH WA WA AL TO WA I N I V I S I D D R E E D EN EN LK RE ND EN VIV FO VIV TE TH VIV TO BE MET BY PROGRESS

00/01

To undertake an energy assessment

•

00/01

To develop a code of good environmental practice

•

ENERGY, MATERIALS AND WASTE Completed, ongoing and new targets

DATE SET

To incorporate environmental and social assessments into capital projects

97/98

To address energy consumption in premises where current rates are higher than typical

97/98

To achieve a reduction in waste going to landfill

TO BE MET BY

• •

•

To assess potential benefits of tele- and video conferencing

•

ongoing

•

01/02

To ensure that, where possible, all fleet vehicles are converted to LPG

ongoing TO BE MET BY

•

PROGRESS

00/01

NEW TARGETS

01/02

01/02 01/02

ONGOING TARGETS

97/98

DATE SET

•

PROGRESS

ongoing

06/07

Target achieved

Target partially achieved

New/ongoing targets

21 2

This goal reflects Vivendi Environnement commitments to: • protect the environment • upgrade facilities to comply with regulations and standards • improve health and safety performance, and • meet and anticipate as far as possible present and future public needs and expectations.

Supply of drinking water

Tendring Hundred - 99.95% of samples met the required standard. There were two drinking water quality incidents in the year. Both were of a short duration and the company took remedial action.

During the year we provided drinking water to over 3.24 million people. The Drinking Water Inspectorate in its annual report concluded that each of the Vivendi Water UK group companies continued to provide water “of a high quality”. Compliance with the drinking water standards by two companies was at a higher level than the industry average. Moreover UK water standards are the highest in the world.

Three Valleys – 99.85% of samples complied with the regulations. Of the samples that did not comply, none were considered harmful to consumers’ health. There were 11 incidents of a deterioration in drinking water quality during 2001. Each was of a short duration and the company took remedial action. The DWI report provides further information on water quality results and incidents (see www.dwi.gov.uk).

Extracts from the 2001 Drinking Water Inspection The DWI Chief Inspector found that all three companies “continue to supply customers with drinking water of a high quality”:

Denge Water Quality Incident

Folkestone and Dover - 99.95% of samples met the required standard. There were two water quality incidents in 2001-02 in the Dungeness Peninsula (see box below). Each incident was of a short duration and the company took remedial action.

At Folkestone & Dover, the dry and hot weather in July 2001 caused an increase in algal growth in the lakes on the Dungeness Peninsula. A precautionary notice not to use the water was issued and supplies of bottled water were delivered to 6,000 homes in the Romney Marsh area. The DWI’s report on the incident contained many positive comments on the manner in which the incident was handled. Recommendations for improvement have been implemented.

DRINKING WATER QUALITY Percentage compliance with Drinking Water Quality Standards

100 99.80 99.60 99.40 99.20 99.00

2001

2000

1999

1997

1998

1996

1995

2001

2000

1999

1997

1998

1996

1995

2000

1998

1999

1996

1997

1995

2001

1999

2000

1997

1998

1996

1995

2001

1999

2000

1997

1998

1996

98.60

1995

98.80

0 FOLKESTONE & DOVER

TENDRING HUNDRED

NORTH SURREY*

THREE VALLEYS*

INDUSTRY AVERAGE

* North Surrey Water merged with Three Valleys Water in October 2000.

WATER SERVICES AND THE COMMUNITY

Water quality treatment

Nitrates

All water that goes into the public water supply has to be disinfected. The companies use two types of disinfection - chlorine and ultra violet light – depending on the water source and the environmental impact.

Although the presence of nitrates is usually indicative of agricultural pollution, urban pollution and high groundwater levels have led to high nitrate concentrations in a number of Three Valleys’ sources. The company has undertaken specific studies into the causes of these high levels. The water entering supply is managed to ensure it remains within the regulatory targets for nitrates.

Chlorination Where disinfection is by chlorination one of two methods is used: chlorine gas or a sodium hypochlorite solution. Where possible, the companies are moving away from using chlorine gas, because of the handling, storage, environmental and health and safety issues associated with the chemical. A risk assessment of all sites determines which system is used. The quantities of chlorine gas Three Valleys stores at its Iver water treatment works brings the site under the Control of Major Accidents and Hazards regulations (see p.33). The company has set itself a new target this year of replacing chlorine gas with sodium hypochlorite. Where chlorine is used in high concentrations as part of the water treatment process residual levels in the water need to be reduced before it is put into supply. Excess chlorine is neutralised with sulphur dioxide or sodium bisulphite. A small amount of chlorine is left in order to safeguard the quality of the water through its journey from treatment works to point of use. Since 1995 the water companies have monitored and greatly reduced their use of gaseous chlorine in favour of sodium hypochlorite in view of the associated reduced safety and environmental risks.

Ozonation Ozone is used in water treatment to break down organic pollutants such as pesticides and herbicides. It can also improve the taste and odour of the water and assist in disinfection. Ozone is produced from either air or oxygen which is passed through glass tubes when an 11,000 volt electrical discharge is applied. It is pumped into and absorbed by the water. Any unabsorbed ozone is drawn off and destroyed. At Dunmow treatment works Three Valleys is improving water quality by airstripping VOCs (volatile organic compounds) from a polluted water source. The technology used for this is the most efficient in terms of energy usage.

DISINFECTION

Implementation of the EC Nitrate Directive and the new Nitrate Vulnerable Zones designated following the Government’s diffuse pollution review may result in greater protection for the environment from this type of pollution in future.

Lead During the reporting year a programme to install orthophosphate dosing of water supplies was agreed with the Drinking Water Inspectorate. This reduces the solubility of lead in treated water. This treatment is expected to safeguard compliance with the interim standard for lead under the new EU Drinking Water Directive. Orthophosphate dosing reduces the need to replace thousands of lead pipes. It is estimated that about half of all connections to the mains have lead piping installations, and it is highly likely that this treatment will obviate the need for such customers to replace their water pipes.

Cryptosporidium Three Valleys opened the state-of-the-art membrane ultrafiltration plant at Clay Lane during the year. The membrane filtration plant removes minute particles from the raw water including microorganisms such as bacteria and Cryptosporidium. Membrane plants are also being installed at other sites deemed to be at risk. Folkestone & Dover completed the installation of a Cryptosporidium microfiltration plant at Lye Oak. Effluent from the plant is being recycled back into the aquifer (with the agreement of the Environment Agency) which helps to preserve a precious resource in the area. The only other alternative waste disposal route would be to take the waste away in tankers.

OZONATION

All gases measured in tonnes USE OF GASEOUS CHLORINE 2000/01

2001/02

2000/01

2001/02

FOLKESTONE & DOVER

TENDRING HUNDRED

130

168

THREE VALLEYS

225*

479

1267*

INCREASE DUE TO IMPROVED DATA COLLECTION

•

AVERAGE PERCENTAGE OF OZONE CAPACITY USED

USE OF SODIUM HYPOCHLORITE

2000/01

FOLKESTONE & DOVER•

TENDRING HUNDRED

THREE VALLEYS

50 FOLKESTONE AND DOVER HAS NO OZONE FACILITIES

•

The construction of ultra- and microfiltration plants can remove the need for extensive disinfection, thereby reducing the environmental impact associated with the use of disinfectants. Another advantage is the significant reduction in water loss and chemical usage during the treatment process. These environmental benefits contribute to the conservation of natural resources, reduced energy usage and lower risk of pollution.

Research & development In fufilment of the Vivendi Environnement commitment to research and development, the company has invested almost £1 million in projects devoted to specific company and collective industry issues. This work has been conducted at company level and in collaboration with the corporate research and development organisation, Anjou Recherche, and external bodies such as UKWIR and various academic institutions. Numerous papers have been presented to academic meetings including 11 at the International Water Association meeting in Melbourne. These were incorporated into the themes of Sustainable Use of Water Resources, Underground Assets and Water and Wastewater Treatment. Some significant research areas include the following:

Respecting our surroundings At Folkestone & Dover’s Denge water treatment works a new treatment process for removing naturally occurring arsenic involved constructing a new building and laying a new pipeline. As the site is adjacent to a Site of Special Scientific Interest (SSSI) English Nature were consulted at an early stage, resulting in the new building being relocated so as to cause minimum disruption to the SSSI. The route for the pipeline was also chosen to minimise disruption. English Nature have been closely involved throughout the construction, which is ongoing.

Management of operations We have ongoing commitments to update site environmental profiles with environmental information. The purpose is to document the environmental baseline at our operational sites so that appropriate operating procedures can be developed. In this way environmental management becomes a seamless part of operations. Good operating procedures can help minimise potential disruption or nuisance to our neighbours, particularly in relation to the safe storage of chemicals. Folkestone and Dover made significant progress in producing a comprehensive set of site environmental profiles as part of their efforts to obtain ISO14001 certification.

• Pilot scale treatment of bromate contaminated groundwater • Management and disposal of asbestos cement pipes • Development of a pollution assessment tool for water resource protection • Investigation of the ecological impacts of low flow rivers • Evaluation of the water efficiency and practicality of low-flush toilets • Focus group opinion on customer expectations of a water company’s products and services • Economic modelling of the supply chain in key water resource areas.

WATER SERVICES AND THE COMMUNITY Completed, ongoing and new targets

DATE SET

ONGOING TARGETS

95/96

To include environmental information in site environmental profiles as they are written

98/99

To complete site environmental for all treatment works*

DATE SET 01/02

G CIN UR O S UT LO A I TR US IND

R R TE HIP ATE RS WA E W R R LC E D TN ATE OV KP AR RE W D P U D S N R R R E& EY HU TE ATE ATE LL ON WA IW IW VA ING ST I D D R E E D EN EN LK RE ND EN VIV FO VIV TE TH VIV TO BE MET BY

• •

TO BE MET BY

•

PROGRESS

02/03

Target achieved

ongoing

04/05

NEW TARGET To replace chlorine gas with sodium hypochlorite at Iver Treatment Works

PROGRESS

Target partially achieved

New/ongoing targets

Such investment is consistent with the UK Government’s Quality of life Indicator for investment that is vital to future prosperity.

25 2

Biodiversity Our goalâ&#x20AC;Ś to carry out our activities to maintain and enhance biodiversity, and to assist others to do the same.

This goal reflects Vivendi Environnementâ&#x20AC;&#x2122;s primary commitment to protect the environment.

Our policy is to give particular priority to projects and activities that foster species and habitats which are the subject of Biodiversity Action Plans (see glossary) and are found on our own and adjacent land .

Folkestone & Dover in the Alkham Valley have been placed under countryside stewardship to help improve public access through the valley by linking footpaths, bridleways and byways.

The tables show a selection of species and habitats that we are helping in this way.

Wraysbury Lakes

For the first year the companies have recorded the amount of land owned which has a statutory designation, eg SSSI, SPA, SAC, including ancient woodlands and sites of high wildlife value. They have also recorded the percentage of this land which is subject to a management plan. This is to ensure efficient management of our landholdings.

At the Three Valleys-owned Wraysbury Lakes, the organisations and people that use the site have competing priorities. The company aims to manage emerging issues in a consultative manner arriving at solutions that are sustainable and fair. The company chaired a liaison meeting during the year which was attended by more than 25 people representing 14 different interest groups. The meeting provided opportunities for all the stakeholders to meet and gain a better understanding of the competing needs of the various activity groups, eg sailing, water skiing, fishing, rambling, nature conservation.

Folkestone & Dover continued to be a partner in the White Cliffs Countryside Project which works to enhance and protect the countryside in south east Kent. Coppicing of the woodland at Lye Oak, a SSSI site, was carried out during the year, with the extra light benefiting the wood’s rare animal and plant life. In addition, dormouse nesting boxes were installed. Farms owned by

Do you want more information about our business and biodiversity? Conservation Access and Recreation reports prepared by each company are available. These describe policies, plans and performance relating to conservation, access and recreation within their supply areas. Please see invitation to comment at the end of this publication.

BIODIVERSITY

MANAGEMENT OF OUR LANDHOLDINGS

Management of our landholdings

PRIORITY SPECIES FOLKESTONE & DOVER

Dormouse, silver-spotted skipper, Chalkhill Blue, great crested newt

TENDRING HUNDRED

Water vole, dormouse, stag beetle, great crested newt, skylark, song thrush, mining bees, bumble bees

THREE VALLEYS

Reed bunting, grasshopper, warbler, water vole, otter, pipistrelle bat, bittern, reed bunting, great crested newt, white clawed crayfish

LAND OWNED UNDER A STATUTORY DESIGNATION (KM2)

PERCENTAGE WITH MANAGEMENT PLAN

FOLKESTONE & DOVER

3.93

98.8%

TENDRING HUNDRED

0.05

THREE VALLEYS

2.1

86%

PRIORITY HABITATS FOLKESTONE & DOVER

Chalk grassland, woodlands, Dungeness shingle

TENDRING HUNDRED

Acid grassland at Great Bentley

THREE VALLEYS

Chalk rivers, grazing marsh, fen, lowland calcareous grassland, lowland dry acidic grassland, lowland heath, reedbeds

BIODIVERSITY Completed, ongoing and new targets DATE SET 97/98

DATE SET 01/02

ONGOING TARGET To identify habitats and species on company-owned land that occur on national and local lists and seek to enhance and maintain their diversity

G CIN UR O S UT LO A I TR US IND

R R TE HIP ATE RS WA E W R R N LC TE VE ED RT KP WA DO PA U DR S N & R R R E EY HU TE ATE ATE LL ON WA IW IW VA ING ST I D D R E E D EN EN LK RE ND EN VIV FO VIV TE TH VIV TO BE MET BY

•

• Target achieved

ongoing

TO BE MET BY

NEW TARGET To pilot a biodiversity index

•

PROGRESS

02/03

Target partially achieved

New/ongoing targets

This relates to the UK Government’s Quality of Life Indicator for the populations of wild birds. See Glossary.

Engaging with our Stakeholders Our goal… to inform others of the steps we are taking to promote sustainable development, to consult them, and take into account their views when developing our programmes and plans.

This goal reflects Vivendi Environnement’s commitments to: • protect the environment • integrate international standards covering basic human rights, ethics, the environment, occupational safety and labour law, and • extend our dialogue with stakeholders.

Customer service Three Valleys introduced a new customer information leaflet to accompany water bills. For customers who do not have English as a first language information can be translated into 100 different languages. In addition, large print, Braille and Minicom® services are available. For vulnerable and special needs customers the company maintains a ‘Safeguard’ register which ensures they are always supplied with the right service at the right time, in accordance with their needs. The company recognises that not all customers are able to install a meter if they would like one. For such customers the company has developed an assessed tariff based on estimated consumption.

Working with the community Three Valleys won a gold Green Apple award for their WaterWorks project in partnership with Working Herts, a training provider that helps unemployed people get practical work experience and find jobs. New Deal volunteers were trained to carry out water related improvements to housing association properties. The benefits of the project are shared three ways: the tenants receive practical help and advice; the trainees gain valuable training and work experience ; and Three Valleys Water gain increased awareness of customer water consumption patterns. The experience gained from this project is being fed into other initiatives with other housing associations in Three Valleys Water regions. Three Valleys sponsored the canal-based charity Rickmansworth Waterways Trust. The company funds the development grant for the Trust's operations and facilities in the Batchworth Lock area, particularly the development of the education programme. It also supports the annual Rickmansworth Canal Festival and is part of the Festival Committee, working with the British Waterways, Three Rivers District Council and the Waterways Trust. Folkestone & Dover's environmental initiatives were publicly recognised in the International Green Apple Awards, winning a bronze award for contributing to the enhancement and protection of environmentally sensitive areas in Kent. Tendring Hundred continued to run its Maths Trail at Horsley Cross pumping station. During the year 380 pupils aged between nine and 11 undertook the challenge. The company’s Environment Centre at Manningtree was visited by over 500 schoolchildren. The company helped the village of Little Clacton to build a Millennium Pond.

* Vivendi Water UK’s year end has changed to 31 December to align it with the parent company. These amounts are therefore for the nine months ended 31 December 2001.

The water companies’ social and community initiatives are consistent with UK Government’s Quality of Life Indicators for tackling poverty and social exclusion, increasing employment and education. See Glossary.

Clay Lane Environment Centre During the year the purpose-built Environmental Education Centre at Clay Lane was visited by over 6,000 schoolchildren, teachers and other visitors. The education programme links all activities to the national curriculum and includes visits to the on-site treatment works and the promotion of water efficiency messages. The extensive outreach programme continued during the year. Members of the education team visit schools to increase awareness of water efficiency, teach children to use water wisely in a fun way and make water issues relate more closely to national curriculum teaching. The outreach programme received a national Water UK water efficiency award during the year. A member of the Judges’ Panel commented: "Three Valleys Water has listened clearly to what people want and is doing it with them, not at them". To date, approximately 50,000 young people have now either visited the Education Centre or have used its resources through the national curriculum. During the year the Centre achieved Eco Centre status, an education award for environmentally friendly organisations.

Charitable donations Charitable donations made by our companies in 2001* totalled £33,200, together with £40,900 of sponsorship.

Our employees in the community • Three Valleys actively co-operates with employees to raise funds for charity. The company and its employees are long-standing supporters of WaterAid, raising money for a project in Southern India during the year. The company again matched the amount raised by employees on sponsored monthly dress down days. Other fundraising events included sponsored runs, eg the Rickmansworth Road Run, Children in Need activities, and food box donations for a EuroAid Charity helping needy people in eastern Europe. • Three Valleys’ Staines office adopted a local primary school for children with severe learning difficulties as their charity. • Folkestone & Dover offered work experience placements to pupils aged 14 to 15. … and raised money for charity through schemes such as a payroll lottery, raffles, bring and buy sale, a sponsored bike ride and a cricket match tea. • At Vivendi Water Partnership dress down days and sponsored hair cutting raised money for charity. Old boots and football kits were collected and sent to Namibia as part of KitAid. • Vivendi Water Partnership provided schoolchildren and students with work experience placements. • Tendring Hundred’s annual golf day raised money for WaterAid. • Vivendi Water employees participated in a fun run around Battersea Park, London, to raise money for charity. Vivendi Water UK provided a hospitality tent for runners.

ENGAGING WITH OUR STAKEHOLDERS

Other stakeholders Vivendi Water companies are actively involved in a number of external groups, including Water UK, Thames Regional Environmental Protection Advisory Committee, Environment Agency working groups, Associate Parliamentary Environment Group, Kent Sustainable Business Partnership, Groundwork, Business in the Community, Business in the Environment, Working Herts, Environmental Analysis Co-operative, National Society for Clean Air, Universities of Herts and Surrey, and the CBI (Environmental Affairs and Academic Relations Committees). Vivendi Water Industrial Outsourcing are members of the Business Council for Sustainable Development UK. Vivendi Environnement are members of the World Business Council for Sustainable Development (WBCSD) and Entreprises pour l'environnement (EPE). Vivendi Environnement support the following initiatives: Global Reporting Initiative (GRI), Greenhouse Gas Protocol Initiative, United Nations Global Compact, and the World Resources Institute (WRI).

ENGAGING WITH OUR STAKEHOLDERS Completed, ongoing and new targets

DATE SET

ONGOING TARGETS

ING RC U O TS OU L A I TR US IND

R IP R ATE SH TE W ER WA R R N LC E E D T AT OV KP AR RE W D P U D & R R YS R UN TE TE LE TE NE GH WA WA AL TO WA I I N V I S I D D R E E D EN EN LK RE ND EN VIV FO VIV TE TH VIV TO BE MET BY

95/96

To engage in a dialogue with customers, employees, suppliers and others about our products, services and performance

•

95/96

To promote metering and develop appropriate socially-responsible tariffs

•

97/98

To give customers more information about the environmental implications of their water supply service

•

DATE SET

•

ongoing TO BE MET BY

NEW TARGETS

01/02

To increase by 5% the number of partners engaged with during the year

01/02

To develop and pilot new programmes to support education

01/02

To carry out Duty of Care audits on suppliers

ongoing

• •

•

PROGRESS

02/03

•

02/03 ongoing

Target achieved

•

PROGRESS

Target partially achieved

New/ongoing targets

Business Management for Sustainable Development Our goal… to manage our businesses taking into account and balancing the three dimensions (environmental, social and economic) of sustainable development.

This goal reflects a number of Vivendi Environnement’s commitments, ie to: • implement an Environmental Management System • integrate international standards covering basic human rights, ethics, the environment, occupational safety and labour law • improve health and safety performance • provide employees with training and opportunities for promotion, and • extend our dialogue with stakeholders.

Management Systems

AGE RANGES

Formal environmental, health and safety, and quality systems are fundamental to continuous improvement in our performance. These systems are at various stages of maturity throughout our businesses and are being integrated into the overall management of the business in a seamless manner. The introduction of systems that are compliant with the ISO 14001 standard is a target set by the Vivendi Environnement group. It is essential that certification to the standard adds value to our business and undergoes a detailed analysis of benefit and cost. During the year Folkestone and Dover Water Services and Vivendi Water Industrial Outsourcing have progressed the development of their integrated management systems and are on track to certify in the coming year.

300 250 200 150 100 50 0

< 30 yrs

31 - 40 yrs

41 - 50 yrs

> 50 yrs MALE FEMALE

Workforce profile* The social dimension of sustainable development concerns an organisationâ&#x20AC;&#x2122;s impacts on the social systems within which it operates. Our goal is to monitor the make-up of the workforce profile and, where appropriate, move towards aligning it with that of the local employment market. Last year we set a target to define key performance indicators and establish a baseline for human resource parameters.

Employee consultation During the year Three Valleys carried out an employee survey; employees were invited to contribute ideas for the future of the company. As a result of the surveyâ&#x20AC;&#x2122;s findings action teams were established to look at some key areas of concern, namely job satisfaction, change management, communications and morale. Recommendations for improvement in these areas have been made. The employee survey will be carried out annually.

WORKFORCE PROFILE FIGURES AS AT 31.12.01 No of employees

1316

Of which:

No. full-time

1257

No. part-time

No. permanent contract

1215

No. fixed term contract

Benchmarking Our 2001 score using the Business in the Environment Index of Environmental Engagement was higher than in 2000. This is better than the average score of FTSE100 companies and equals the average score of participating FTSE 350 utility companies. The 2002 Index is due to be published in March 2003, so will not be available in time for this report.

Net employment creation: 17 Average turnover: 12.5% Age ranges: Average age: 40 B.I.E INDEX OF ENVIRONMENTAL ENGAGEMENT

100 80 35% women of which 7% are managers 65% men of which 18% are managers

60 40 20

During the year we developed systems to measure the numbers of employees from ethnic groups and those with a disability.

1995

1996

VIVENDI UK WATER GROUP

1997

1998

1999

AVERAGE SCORE - UTILITIES SECTOR

2000

2001

AVERAGE SCORE - FTSE 100

* Figures refer to the 2001 calendar year.

33 2

BUSINESS MANAGEMENT FOR SUSTAINABLE DEVELOPMENT

Health & safety Health and safety plays an important part in the everyday culture of our companies. This is consistent with Vivendi Environnement’s commitment (see p.4) to improve health and safety performance. At Three Valleys improving accident rates were rewarded with a Gold Award for the fifth consecutive year by the Royal Society for the Prevention of Accidents. The company is playing an active role in the industry wide ‘Clearwater’ 2010 initiative which will look to reduce occupational health problems by 30% over the next 10 years. Our objective is to continue to show ongoing improvements in the working environment leading to a reduction in accidents, absence and claims for compensation. As a result of the amount of chlorine stored at Iver water treatment plant (see p.24) Three Valleys Water is required to register the site with the competent bodies (Health and Safety Executive and the Environment Agency) under the Control of Major Accidents and Hazards regulations (COMAH). This involves the submission of a complex technical document known as a 'safety case' for assessment by the competent bodies. The first application was subject to an administrative improvement notice requiring the company to address certain aspects of the document. This will be completed during the coming year. It is the intention of the company to reduce the amount of chlorine stored and ultimately to replace it with less hazardous sodium hypochlorite.

environmental policies and performance through sessions at the company induction programme. As part of its balanced scorecard approach to performance measurement, Three Valleys is committed to providing opportunities for staff at all levels to fulfil their potential. In 2001*, 2,798 employees (some employees were trained more than once) at Three Valleys and Vivendi Water Partnership received training, of which 548 were managers. Total annual cost of training (excluding salaries) as a percentage of total gross annual salary was over 3%. Major strategic objectives for the year were personal leadership, management of business risk, technical, health and safety, and management development. Three Valleys retained its Investors in People status. At Folkestone & Dover environmental awareness training was provided for all staff as part of preparation for ISO14001 certification.

Supply chain management Vivendi Environnement is committed to encouraging partners, subcontractors and suppliers to adhere to its sustainable development commitments. Here in the UK the Vivendi Water companies, as part of the reorganisation of the business, have taken the opportunity to centralise and consolidate the purchasing and procurement functions. This has allowed the development and inclusion of environmental and social criteria in supplier selection and performance procedures. As the system matures this will be supported by specific training and auditing.

ACCIDENT INCIDENT RATE

Pensions & socially responsible investment

40 35 30 25 20 15

FOLKESTONE & DOVER

TENDRING HUNDRED

2001/02

2000/01

1999/00

2001/02

2000/01

1999/00

2001/02

2000/01

1999/00

THREE VALLEYS

Regulations requiring Trustees of Pension Plans to disclose in their Statement of Investment Principles "the extent (if at all) to which social, environmental or ethical considerations are taken into account in ... investment" came into effect in July 2000**. In June 2000 the Vivendi Water Supply Companies’ Pension Plan's investment committee adopted a policy of actively encouraging the Plan’s investment managers to assess the extent to which social, environmental and ethical criteria are considered by fund managers. It has also provided the investment managers with details of its own policy on social, environmental and ethical investment, based on the Vivendi Environnement commitments (see p.4).

Vivendi Water Partnership and Vivendi Water UK PLC reported no accidents for 2001/02 Annual number of reportable incidents per 1,000 employees. ‘Reportable incidents’ are deaths, major injuries, accidents resulting in three days off work, diseases and dangerous occurrences [as defined by the Reportable Injuries, Diseases and Dangerous Occurrences Regulations 1996 (RIDDOR)] Within the smaller water companies even one accident among a small number of employees will lead to an apparent large percentage increase.

Training Vivendi Environnement is committed to providing employees with training and opportunities for promotion (see p.4). Each water company continues to train its new entrants on the company’s

* Figures refer to the 2001 calendar year. ** The Occupational Pension Schemes (Investment, and Assignment, Forfeiture, Bankruptcy etc.) Amendment Regulations 1999. SI 1999/1849.

Integrating environmental and other business targets Our plans to build environmental measures into other internal reporting systems progressed during the year. At Three Valleys environmental and social key performance indicators were incorporated into departmental objectives. These are reported on a monthly basis and aggregated into the overall business performance report. All three companies produce an annual integrated Environment and Conservation, Access and Recreation report, which is available on their web sites (see back page).

Emergencies

At Folkestone & Dover algae were found in a lake at Denge in July 2001 (see p.23). The company reacted quickly to remove the supply and the Drinking Water Inspectorate commended the company by for the manner in which the incident was handled.

Each company has procedures in place to provide appropriate responses to incidents. Drills are carried out regularly to test the adequacy of those procedures. In 2001/02 there were three incidents which triggered the mobilisation of Emergency Response Teams.

In response to the need for increased vigilance and security, the water companies thoroughly reviewed security arrangements at all sites and put in place additional measures where appropriate.

At Three Valleys higher than expected levels of bromate and a pollution threat to groundwater were dealt with during the year (see p.12).

G CIN UR O S T OU AL I R T US IND

R IP ATE SH TER ER WA RW R N LC E E D T BUSINESS MANAGEMENT FOR SUSTAINABLE DEVELOPMENT AT OV KP RE AR W D P U D S N & R R HU LEY TER ATE NE ATE Completed, current and new targets WA IW IW VAL ING STO I D D R E E D N D E EN LK RE EN FO VIV TEN VIV TH VIV TO BE MET BY DATE SET TARGETS TO BE MET DURING THE YEAR 00/01

To conduct an analysis of human resource, social and ethical policies and practices in relation to good practice

•

01/02

00/01

To define key performance indicators and establish a baseline for human resource parameters

•

01/02

00/01

To commission a Corporate Responsibility Advisory Committee

00/01

To set a baseline for renewed occupational health programmes

DATE SET

•

01/02

•

01/02 TO BE MET BY

ONGOING TARGETS

96/97

To implement the environmental training package

•

96/97

To give all drivers of fleet vehicles and all company car users briefing on environmentally-responsible driving and a proportion of these drivers intensive training

•

00/01

To achieve or progress development of the Environmental Management System to align with ISO 14001

•

00/01

To maintain an up-to-date summary of environmental and social performance and targets on the intranet

00/01

To raise general awareness of corporate responsibility amongst all staff and give specific training for senior managers on their responsibilities

•

ongoing

00/01

To carry out an annual audit of corporate responsibility performance

•

ongoing

00/01

To improve existing accident and incident rates

•

To improve internal safety reporting mechanisms

• •

01/02

00/01

• •

00/01

To improve the rate of assessment and treatment of medical cases

00/01

To make more effective use of IT when reporting environmental when reporting environmental performance and targets

•

02/03

00/01

To ensure consistent and comprehensive inclusion of environment and social criteria into purchasing procedures

•

02/03

00/01

To develop and implement a training programme to support the supply chain management policy and procedures

•

02/03

DATE SET

•

ongoing

•

00/01

•

2001 onwards

•

01/02 ongoing

TO BE MET BY

NEW TARGETS

01/02

To participate in the new Business in Community Corporate Responsibility Index

•

01/02

To develop and implement a computer-based training package

•

01/02

To define local employment markets

01/02

To successfully complete the registration under COMAH regulations

•

PROGRESS

01/02

•

PROGRESS

•

PROGRESS

02/03

•

02/03 02/03 02/03

Target achieved

Target partially achieved

New/ongoing targets

35 2

GLOSSARY

Glossary Abstraction licence

The authorisation granted by the Environment Agency to allow the removal of water from a source of supply

Drinking Water Standards

The legal requirements governing the quality and wholesomeness of drinking water

Aquifer

A porous water-bearing underground formation of permeable rock, sand or gravel capable of yielding significant quantities of water

Energy consumption performance assessments

Yardsticks for the energy consumption of buildings. "High" means a high energy consumption; "low" means a low energy consumption (see p.37)

Business in the Environment

An organisation set up in 1989 as an initiative of Business in the Community. It promotes practical steps that will support the United Kingdom’s progress towards understanding and applying the principles of sustainable development through action and partnership between business and its stakeholders. It has developed the Index of Corporate Environmental Engagement (see below)

Environment Agency

A non-departmental public body which came into being on 1 April 1996 as an amalgamation of NRA, Her Majesty’s Inspectorate of Pollution, the Waste Regulation Authorities and some functions of the Department of the Environment. It has major responsibilities for the management and regulation of the water environment and for the control of industrial pollution and wastes

Biodiversity

The variety of life forms we see around us. Encompasses the whole range of mammals, birds, reptiles, amphibians, fish, insects and other invertebrates, plants, fungi and micro-organisms such as protists, bacteria and viruses

Greenhouse gases

Gases which, when present in the atmosphere, trap warmth from the sun and maintain the temperature of the earth

Groundwater

Water held in water-bearing rocks, in pores and fissures underground

Index of Corporate Environmental Engagement

An index, developed by Business in the Environment (see above), which gauges how businesses are gearing up to manage environmental issues

Biodiversity Action Plans

Plans which set out proposals and targets for the conservation of priority species and priority habitats identified under the UK's National Biodiversity Action Plan

Bromate

Bromate is a chemical that is used in manufacturing, as an industrial cleaning agent and in some products, such as hair perms. New EC Drinking Water Directive standards which come into force in 2003 set a maximum limit for the first time on the level of bromate allowed in water.

Information technology

Kilowatt-hour (kWh)

A unit of electricity. One Kilowatt-hour is the same as 1000 watts of electricity used for one hour and is, for example, the amount of electricity used by a typical single bar electric fire in one hour

Carbon dioxide

The most important of the greenhouse gases (see below). Carbon dioxide is produced when fuels are consumed (eg to generate electricity or to power a vehicle)

Catchment protection activities

Actions to reduce the risk that water from a catchment will be degraded (in quality or quantity) as a result of land-use change, pollution, etc.

Kilowatt-hours/megalitre A measure of the amount of energy used to treat and (net of imports)/ distribute water put into supply after allowing for metre head pumped water that is imported from other companies. It is a useful measure for comparing year-on-year performance and performance between different companies because it takes into account factors such as variation in gradients within the supply area and the depth of the water table

Cryptosporidium

A microscopic protozoan parasite which can infect humans and may cause gastro-enteritis

Demand management Controlling or influencing the amount of water needed to meet the requirements of society. Demand management measures are hugely varied and can include controlling leakage, promoting the use of water-efficient appliances, charging for water on a measured basis ("metering"), encouraging water-efficient gardening techniques and promoting water recycling Distribution input

Distribution losses

Drinking Water Inspectorate (DWI)

Average daily flow from water treatment works into the water company’s distribution system. Also known as “water put into supply” The water loss from that part of the distribution system which is the responsibility of the water company. It is the difference between distribution input and water delivered (after allowing for operational uses such as flushing of mains following repair work) A body formed by Government in 1990 which monitors water companies’ compliance with the Drinking Water Standards (see below)

Landfill

The process of disposing of rubbish by placing it in the ground, either in specially-designed excavations or in old mineral workings that are adapted for the purpose

Leakage

Loss of water from the distribution system. Can be expressed as “company leakage” or “distribution losses” (see above) or “total leakage” (see below)

Low-flow rivers

Rivers which are identified by the Environment Agency as “having unacceptably low flows caused by authorised abstraction”

Megalitres/day (Ml/d) Megalitres (1 million litres) per day. The usual method of measuring the consumption or the flow of water Meter penetration

The installation of meters to measure the consumption of water

“No-dig” technology

A method of installing new pipes which does not require the excavation of a trench. It generally means less disruption to pedestrians, cyclists and vehicles; it can also reduce consumption of the materials required to fill the trench and make good the surface

Ofwat

Office of Water Services. A body established by Parliament with legal duties to ensure that water and sewerage companies can carry out their functions, to protect customers, to promote efficiency and economy, to facilitate competition, and to further environmental conservation and enhancement.

Ozone

A naturally occurring chemically reactive form of oxygen which is found as a gas throughout the atmosphere. Used to treat water before it is put into supply

Priority species

Species which are of the highest priority for conservation action and for which a Biodiversity Action Plan (see above) is in place

Public electricity supply

Electricity obtained from the public distribution network which includes the “National Grid” and local networks. The amount of carbon dioxide associated with electricity obtained from the public supply depends on the mix of fuels used by those who generate electricity to provide the supply. In recent years, the mix has shifted away from fuels which produce the highest amounts of carbon dioxide (such as coal) towards those (such as gas) which produce less carbon dioxide per unit of electricity generated

Quality of Life Indicators

Security of supply index

The UK Government issued its strategy for sustainable development in the UK in 1999. This included Quality of Life indicators designed to measure progress in a number of areas affecting people’s quality of life. See www.sustainable-development.gov.uk. This index is designed to give information on a water company’s ability to supply customers in dry years without making demand restrictions such as hosepipe bans. In essence: • a score of 100 in the index indicates that there are virtually no circumstances that can be envisioned in which the company would fail to meet demand • a positive score suggests that the company ought to be able to maintain supplies in a drought year barring a combination of unforeseen events like power cuts or source pollution • a negative score indicates that the company may not be able to maintain supplies in a dry year without imposing supply restrictions.

Site of Special Scientific Interest (SSSI)

An area of land designated under the Wildlife and Countryside Act 1981 as of special interest because of its flora, fauna, or geological or physiographical features

Streetworks

Work necessary to repair, renew or otherwise improve the distribution system which takes place on or near the public highway

Supply pipe

Surface water

Sustainable development

Development that meets the needs of the present without compromising the ability of future generations to meet their own needs

Tonnes

Metric measure of weight; equivalent to 0.98 tons

Total leakage

The total amount of water lost from the distribution system including "distribution losses" (see above) and losses from the customers’ part of the distribution system

Treatment wastes

Waste materials produced as a result of treating raw water to ensure that it is safe to drink and complies with the Drinking Water Standards (see above). Examples include coagulant sludges, sludges from iron removal plant and river silt

UKWIR

UK Water Industry Research was set up by the UK water industry in 1993 to provide a framework for the procurement of a common research programme for UK water operators on 'one voice' issues.

Water available for use

Reliable yield of water resources based on the quantity or yield of water that can be supplied continuously from developed resources. Calculated using guidelines issued by the Environment Agency; takes account of the characteristics of each source and its ability to support abstraction under drought conditions without detriment to the needs of other water users or the environment

Water delivered

Water delivered to the customer at the limit of the Water Company’s responsibility. (Water delivered will comprise water used by the customer, water lost due to internal plumbing losses and supply pipe losses)

Gauging energy performance Up until 1998, the best method of evaluating the energy consumption performance of a building was to use the performance assessments contained in Introduction to Energy Efficiency in Offices published by the Department of the Environment Energy Efficiency Office March 1994. These assessments used the terms "low", "medium" and "high" (referring to the level of energy consumption) and were used in our three earlier reports (1995/6 - 1997/8). A more up-to-date and detailed method of assessment was published by the same organisation in 1998, updated in 2000, in Energy Consumption Guide

The length of service pipe from the boundary of the property to the curtilage of the building; this part of the service pipe is the responsibility of the householder

19: Energy Use in Offices. This method provides two benchmarks - "typical"

Water which flows or is stored on the ground surface

1997/8, alongside those using the old method.

and "good practice" - against which we can compare the performance of each of our buildings. These benchmarks have been used to evaluate our performance since 1998/9 and have also been applied to our results for

37 2

VERIFICATION STATEMENT

Invitation to comment We would like to hear from anyone who has comments to make on our environmental and social performance. Please use this form or e-mail kathleen.lucey@vivendi-uk.com Vivendi Water UK Group Water Businesses Environmental and Social Report 2002 1 How would you describe the Environmental and Social Report? Poor Fair Good Excellent 2 How would you describe the activities outlined in the report (the things we have done so far)? Poor Fair Good Excellent 3 And what do you think of the targets we have set for progress in future years? Poor Fair Good Excellent 4 Are there other activities and targets that we should be considering in addition to those in the report? If yes, what are these?

5 Would you like to receive? Further copies of this yearâ&#x20AC;&#x2122;s Environmental and Social Report? (Please indicate how many) by post? by e-mail? A copy can be downloaded from our web sites â&#x20AC;&#x201C; see back page for addresses. A copy of the Environmental and Social Report in subsequent years? (Please tick) A copy of the 2002 Environmental Performance and Conservation, Access and Recreation Reports for: Folkestone and Dover? Tendring Hundred? Three Valleys? A summary of the Water Efficiency Plan for: Folkestone and Dover? Tendring Hundred?

A copy of the Vivendi Environnement Worldwide Environmental Report? Other information? (Please specify)

6 Please fill in your name and address here: Name Address Postcode Tel Email

Fax

Three Valleys?

Environmental Department Vivendi Water UK PLC 37 - 41 Old Queen Street London SW1H 9JA

THE WATER BUSINESSES OF THE VIVENDI WATER UK GROUP

THREE VALLEYS WATER

TENDRING HUNDRED WATER

PO Box 48, Bishop’s Rise Hatfield Herts AL10 9HL Tel: 01707 268 111

Mill Hill, Mistley Manningtree Essex CO11 2AZ Tel: 01206 399 200

VIVENDI WATER PARTNERSHIP

VIVENDI WATER UK

Blackwell House 1 Three Valleys Way Bushey, Herts WD2 2QD Tel: 01923 248831

37-41 Old Queer St London SW1H 9JA Tel: 0207 3932700

VIVENDI WATER INDUSTRIAL OUTSOURCING

FOLKESTONE & DOVER WATER The Cherry Garden Cherry Garden Lane Folkestone, Kent CT19 4QB Tel: 01303 298800

Blackwell House 1 Three Valleys Way Bushey, Herts WD2 2QD Tel: 01923 248062 VIVENDI WATER PROJECTS Blackwell House 1 Three Valleys Way Bushey, Herts WD2 2QD Tel:01923 814204

Supply area

THREE VALLEYS WATER

FOLKESTONE & DOVER WATER

TENDRING HUNDRED WATER

VIVENDI WATER PARTNERSHIP

3738 km2

420 km2

352 km2

N/A

VIVENDI WATER INDUSTRIAL OUTSOURCING

VIVENDI WATER PROJECTS

VIVENDI WATER UK

N/A

Properties connected

1,221,390

72,232

69,631

N/A

No. of people supplied

3,001,980

162,620

145,840

N/A

Water put into supply

871 Ml/day

50.7 Ml/day

29.8 Ml/day

N/A

Percentage from groundwater/surface water resources

57% / 43%

100% / 0%

83% / 17%

N/A

Length of main

14,205 km

1,068 km

899 km

N/A

892

170

£121.5 million

£9.7 million

£9.1 million

N/A

£142.2 million

www.3valleys.co.uk

www.fdws.co.uk

www.thws.co.uk

Employees Turnover Website

www.vwio.com

* For the nine months ended 31 December 2001

41 2

Produced for the Water Businesses of Vivendi Water UK PLC 37 - 41 Old Queen Street London â&#x20AC;˘ SW1H 9JA

Printed on paper manufactured to advanced environmental standards using sustainable sources that have minimal impact on the environment. Printed on Revive Silk. Fibre source - 75% from 100% de-inked post consumer waste, the remaining 25% being mill broke and virgin fibres.