Veolia Water Business in the Community Feedback Report 2005

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Confidential Feedback Report Business in the Community is pleased to provide you with a copy of your confidential feedback report for the Corporate Responsibility Index 2005. This is a summary of your results, comparing your company's performance in the Index against your peers and other Index participants. This year a total of 132 companies have been using the Index as a management tool, with 122 companies participating publicly. Company Name Sector Economic Group Company Score

Veolia Water (UK) Utilities - Other Utilities 2005 2004 97.5% 94% Top 100 Company

Commitment to disclose (as indicated in submission)

Full disclosure (submission and feedback)

Outstanding performance (i.e. score of >95%) in:

Community Management Marketplace Management Workplace Management Environmental Impact Social Impact

Participants in your sector AWG Centrica Kelda Group National Grid* Northumbrian Water Severn Trent United Utilities Veolia Water (UK)

* indicates 2005 sector leaders (UK) indicates global business reporting on UK operations only

The Index Model The Index assesses the extent to which corporate strategy is integrated into responsible business practice throughout an organisation. It provides a benchmark for companies to evaluate their management practice in four key areas of corporate responsibility (community, environment, marketplace and workplace) and performance in a range of environmental and social impact areas material to their business.

10% Corporate Strategy

22.5% Integration

22.5%

35%

10%

Management

Performance and Impact

Assurance and Disclosure

Community Environment Marketplace Workplace

Scoring system: The Corporate Strategy section of the Index represents 10% of the overall score, Integration and Management are weighted 22.5% each, and the Performance and Impact section receives 35% (equally split between the six environmental and social impact areas). The final 10% are awarded for the level of Assurance (5%) underpinning the information provided and companies’ commitment to disclose information relating to their Index submission (5%).

Š Business in the Community 2006


Overall Summary

80%

87%

100%

93%

85%

100% 78%

93%

97%

90%

89%

82%

100%

87%

98%

96%

95% 82%

96%

97%

92%

100%

96%

The following graph provides a summary of your company's overall performance across the Corporate Responsibility Index. More detailed results are provided in subsequent sections. Please refer to the Index survey for further detail of each element within the chart. For reference, each chart is normalised to 100%.

60% 40%

20%

0% Corporate Strategy

Integration

Management Practice

Social Impact

Company

Environmental Impact

Assurance

Sector

Commitment to disclose Index

Section 1 – Corporate Strategy

80%

88%

100%

95%

100%

94%

100%

91%

100%

100%

100%

93%

100% 81%

73%

87%

98%

100%

100%

98%

100%

100%

100%

This section looks at whether your company has developed an overarching strategy for driving corporate responsibility across your business. It asks whether there is a process for identifying key issues and how these are addressed by company-wide values and policies, internal reporting structures and senior executive leadership and advocacy.

60% 40% 20% 0% Co rpo rate Values (Q1)

CR Principles (Q2)

Company

Š Business in the Community 2006

Leadership Respo nsibilities (Q3a)

Bo ard Repo rting (Q3b)

Sector

A dvo cacy (Q4)

Risk M anagement (Q5)

Index

P o licies (Q6)


Section 2 – Integration

72%

100% 92%

88%

100% 95%

100% 100%

100% 98% 90%

100% 94% 83%

76%

80%

80% 89% 79%

76%

92% 97%

100% 98% PM (Q9)

83%

100% 98% 96% BC (Q8)

83%

100%

100% 98%

This section assesses the extent to which corporate responsibility strategy is integrated throughout a business. It specifically looks at employee awareness and training, appraisal and remuneration systems, internal and external stakeholder engagement, public reporting of CR activities and incorporation of social and environmental issues into strategic decision making.

60% 40% 20% 0% CPI (Q7)

RB (Q10)

Company

SD (Q11) Sector

TD (Q12)

SBM (Q13)

SE (Q14)

R (Q15a)

SR (Q15b)

Index

CPI – Corporate Responsibility Principles Integration, BC – Business Conduct, PM – Performance Management, RB – Remuneration and Bonus, SD – Strategic Decision-making, TD – Training and Development, SBM – Senior Managers and Board members Training/Briefing, SE – Stakeholder Engagement, R – Reporting, SR – Scope of reporting

Section 3 – Management Practice

100% 95% 91%

100% 95% 86%

94% 98% 88%

100%

97% 95% 83%

The Management section of the Index allows companies to identify their key issues in Community, Environment, Marketplace and Workplace and asks whether, in relation to these: - responsibilities are clearly defined at all levels, - policies are in place to ensure responsible behaviours, - objectives and targets have been set to drive improvement, - there are effective communication systems to share knowledge and latest information, - training is provided to relevant staff to ensure competency and delivery of objectives, - a process is in place for stakeholder consultation and engagement across all key areas, - there are monitoring systems to assess and report progress, and finally whether - key issues, targets and performance are reported publicly

80%

Company

60%

Sector

40%

Index

20% 0% Community Management (Q16-21)

Environment Management (Q22-28)

Marketplace Management (Q29-37)

© Business in the Community 2006

Workplace Management (Q38-42)

NB: If you have also taken part in Business in Community’s Environment Index, please see your separate feedback report for further details on your environmental management scores.


Section 4 – Environmental & Social Impact Areas For this section, each company was asked to complete a total of six impact areas:

79% 72%

86%

86% 77%

100% 100% 79%

80%

72%

100%

100% 89%

-

100% 82% 79%

two core social impact areas (chosen out of Product Health & Safety, Occupational Health & Safety, Labour Rights in the Supply Chain, Diversity in the Workplace, and Community Investment) plus one self-selected social impact area relevant to the business Self-selected social impact areas reported on by your sector were: Social Inclusion, Businessrelated Community Programmes . 100% 93% 84%

-

100% 100% 97%

two core environmental impact areas (Climate Change and Waste & Resource Management) plus one self-selected environmental impact area relevant to the business You have chosen to report on Water Consumption as your third environmental impact area. Other areas reported on by your sector were Biodiversity, Resource Use, Unplanned Environmental Incidents and Water Pollution.

92% 87% 80%

-

CI

SI

60% 40%

CC

WRM

WC

Company

PHS

OHS Sector

LRSC

0%

0%

0% 0%

0%

20%

WD Index

CC – Climate Change, WRM – Waste & Resource Management, WC – Water Consumption, PHS – Product Health & Safety, OHS – Occupational Health & Safety, LRSC – Labour Rights in the Supply Chain, WD – Workplace Diversity, CI – Community Investment, SI – Social Inclusion.

Section 5 – Social Impact Areas (in detail) The following graphs provide further analysis on your chosen social impact areas. If you have also taken part in Business in Community’s Environment Index, please refer to your separate feedback report for further details on your environmental impact areas.

100% 100% 97%

100% 100% 96%

100% 100% 98%

100%

100% 100% 97%

Product Health and Safety

80% Company

60%

Sector

40%

Index

0% 0% 0%

20% 0% Product Components

Design & Development

Monitoring PH&S Performance

© Business in the Community 2006

Consumer Education


80%

100% 97% 84%

75%

79% 77%

100%

100% 94%

100% 100% 91%

100%

100% 94% 92%

Community Investment

Company

60% Sector

40% Index

20% 0% Investment Strategy

Measurement of Inputs

Measurement of Outputs

Impact of Programmes

Reporting

75%

100% 87%

100% 78% 75%

80%

75% 77%

100%

100% 80% 80%

100%

100% 92% 92%

Social Inclusion

Company

60% Sector

40% Index

20% 0% Corporate Commitment

Measuring & Reporting

Quality of Information

Coverage

Performance Improvement

If you would like further analysis (e.g. best practice examples by sector), or further support in identifying future actions for performance improvement, please contact the Corporate Responsibility Index team for further details on Business in the Community’s advisory services ( at corporateresponsibility@bitc.org.uk, website: www.bitc.org.uk)

Š Business in the Community 2006


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