Feedback report
Veolia Water
The index assesses the extent to which corporate strategy is integrated into business practice throughout an organisation. It provides a benchmark for companies to evaluate their management practices 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 the business.
Š Business in the Community 2006
Feedback Report for Veolia Water This is a summary of Veolia Water’s 2006 Corporate Responsibility Index results, comparing your company's performance against your peers and other Index participants. This year a total of 128 companies have used the Index as a management tool, with 110 companies participating publicly. Gas, Water & Mulitutilities
97.5%
97.5%
Top 100 Platinum
Full (submission and feedback) !
AWG Centrica Kelda Group* National Grid* Northumbrian Water Group Severn Trent* United Utilities* Veolia Water*
* 2006 platinum companies
(UK) global business reporting on UK operations only
"
The Index Model 10% Corporate Strategy
22.5% Integration
22.5%
35%
Management
Performance and Impact
Community
Environmental
Environment
Social
10% Assurance & Disclosure
Marketplace Workplace
Qs 1 - 6
Qs 7 - 15
Š Business in the Community 2006
Qs 16 - 42
Qs 43 - 96
Qs 97a & 97b
Section Level Summary
100% 100% 93%
87%
100% 99% 79%
80%
95% 90%
100% 91% 84%
97% 95% 88%
96% 97% 86%
100%
100% 97% 93%
The following graph provides a summary of your performance in each main component of the Index. Your performance is examined in more detail at the subsection level and then the question level in the following pages of this report. Please refer to the Index survey for further details of each element within the chart. For reference, each chart is normalised to 100%.
Company Sector
60%
Index
40% 20% 0% Corporate strategy
Integration
Management practice
Social impact
Environmental impact
Assurance
Commitment to disclose
Subsection Level Summary: Management Practice The Index asks companies to identify their key issues in the areas of community, environment, marketplace and workplace, and assesses management practices according to each issue identified. Leading companies are able to demonstrate: = policies to ensure responsible behaviours across the business, = objectives and targets to drive continuous improvement, = clear responsibilities defined at all levels, = effective communication systems to share knowledge and latest information, = training provided to relevant staff to ensure competency and delivery of objectives, = a process for stakeholder consultation and engagement across all key areas, = monitoring systems to assess and report progress, = key issues, targets and performance reported publicly.
93% Community 100% 80% 60%
Company
40% 20%
Workplace 100%
0%
Marketplace 100% Š Business in the Community 2006
Sector
Environment 95%
Index
Subsection Level Summary: Environmental and Social Impact Areas Each company completes six impact areas – three environmental and three social. The environmental impact areas include two core impacts, climate change (answered using either an overall or individual KPIs) and waste and resource management, plus one self-selected area relevant to the business. You have chosen to report on water consumption as your third environmental impact area. Areas reported on by your sector were: resource use, unplanned environmental incidents, water pollution and biodiversity.
82%
74%
80%
100% 100%
92% 91% 73%
89% 85%
100%
93% 85%
Environmental Impact Areas Company Sector Index
60% 40%
NB: Environment sector and Index averages are based on data from the full Environment Index.
0%
0%
20%
Climate change (overall KPI)
Climate change (individual KPI)
Waste & Resource management
Water Consumption
Social Impact Areas
100% 100% 95%
100% 91% 82%
80%
84% 77%
90%
90% 78%
100%
100% 100% 98%
Companies answer two core social impact areas (chosen out of product health and safety, occupational health and safety, labour rights in the supply chain, diversity in the workplace, and community investment), plus one self-selected area relevant to the business. The self-selected social impact areas selected by your sector were: responsible products & services and community engagement.
Sector Index
60% 40%
Product health Occupational Labour rights and safety health and in supply safety chain
Š Business in the Community 2006
0%
0% 0%
0%
20% 0%
Company
Workplace diversity
Community investment
Responsible Products & Services
Question Level Summary - Section 1: Corporate Strategy
91%
100% 97%
100% 100% 94%
92%
100% 100% 95%
100% 100%
CR Principles (Q2)
100%
Corporate Values (Q1)
88% 85%
100% 100% 97%
100%
100% 96% 99%
This section rewards companies for placing CR values at the core of their business strategy. It asks whether there is a system to identify key social and environmental risks and opportunities, and whether these are addressed by principles and policies. Companies must be able to demonstrate leadership and commitment at the highest level, internal reporting to the board, and public advocacy of responsible business practice.
80%
60%
Company
Leadership - Board Reporting Responsibilities (Q3b) (Q3a) Sector
Advocacy (Q4)
Risk Management (Q5) Index
Policies (Q6)
Question Level Summary - Section 2: Integration
100% 100% 95%
100% 100% 91%
90% 95%
TD (Q12)
SBM (Q13)
SE (Q14)
R (Q15a)
74%
76%
100% 94%
100% 95% 91%
97% 86%
86%
80%
80%
PM (Q9)
82%
100% 98%
100% 97%
100% 100% 99% BC (Q8)
88%
100%
100% 99%
It is not enough simply to have a strategy; it needs to be implemented throughout a business. This requires internal communication and training employees so they understand the key CR issues for the company, building CR related performance criteria into appraisal and remuneration systems, undertaking stakeholder engagement and ensuring it contributes to CR strategy, demonstrating social and environmental issues are incorporated into strategic decision making, and transparency through external reporting on CR management practices and impacts.
60%
40%
20%
0% CPI (Q7)
Company
RB (Q10)
SD (Q11) Sector
SR (Q15b)
Index
CPI – integration of principles, 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 © Business in the Community 2006
Question Level Summary - Section 3: Management Practice Section 3 assesses whether a company has developed management practices to address CR issues key to the business in the four areas of Community, Environment, Marketplace and Workplace. Performance for each of these areas in turn is shown in the graphs below. Participants in the Environment and Community Indices can refer to separate feedback reports for further analysis of each management area.
80%
Company
75% 84% 80%
100% 97% 92% 81%
100% 94%
98% 86%
83%
100%
100% 99% 92%
Community Management
Sector
60%
Index
40% 20% 0% Management Strategy (Q17)
Integration (Q18)
Management Employee Targets Programme (Q19) (Q20)
Monitoring (Q21)
65%
100% 94%
Company
79%
80%
74%
86%
94%
100% 100%
100% 99% 92%
100% 97% 88%
100%
100% 100% 94%
Environment Management
Sector Index
60%
40%
20%
0% Management Management Objectives Targets (Q23) (Q24)
Employee Programme (Q25)
Š Business in the Community 2006
Stakeholder Engagement (Q26)
EMS (Q27)
Audit (Q28)
Marketplace Management
75%
93%
100%
63%
75%
80%
100% 94%
83% 87%
75%
100%
100% 97%
100% 100% 94%
100% 100% 91%
All companies completed questions on environmental stewardship and environmental supplier programme. In addition, there was a choice to complete two management areas relevant to the business. The graph shows your company’s score for these four areas alongside average sector and Index scores for the remaining marketplace questions.
50%
60%
40%
Social Environmental Environmental Social Supplier Responsible Programme Selling Stew ardship Stew ardship Supplier (Q30) (Q31) Programme (Q33) (Q34) (Q32) Company
Sector
Responsible Marketing (Q35)
Influencing Marketplace Rules (Q36) Index
90%
100% 94%
100%
100% 100%
100% 84% 82%
92%
100%
100% 97%
Workplace Management Company
80%
Sector
60%
Index
40%
20%
0% Workplace Objectives (Q39)
Workplace Targets (Q40)
Š Business in the Community 2006
Employee Programme (Q41)
Monitoring (Q42)
0% 0%
0%
0%
0%
0%
20%
Consistent Global Standards (Q37)
Question Level Summary - Section 4: Environmental and Social Impact Areas Environmental Impact Areas The following graphs break down each environmental impact area. Each area considers the quality and coverage of data measured and rewards companies that set and publicly report on performance against targets, and demonstrate continuous improvement in minimising their environmental impact.
100% 88%
64% 65%
65%
Company
72%
90% 79%
80%
100%
91%
100% 94%
90%
100%
100% 96%
Climate Change
60%
Sector Index
40% 20% 0% Measurement and Reporting (Q48 or 53)
Scope of Information (Q44 or 49)
Quality of Information (Q45 or 50)
Target Setting Performance (Q46 or 51) Improvement (Q47 or 52)
Companies had the choice of answering based on overall or individual climate change KPIs.
59%
60%
60%
Company
82%
92%
100%
61%
80%
76%
100% 89%
99% 90%
100%
100%
100%
93% 84%
Waste and Resource Management
Sector Index
40% 20% 0% Measurement and Reporting (Q53)
Scope of Information (Q54)
Quality of Information (Q55)
Target Setting Performance (Q56) Improvement (Q57)
100% 94%
Company
71%
80%
73%
100% 96% 83%
100% 96%
94%
100% 100%
89%
100%
100% 96%
Water Consumption
60%
Sector Index
40% 20% 0% Measurement and Reporting (Q58)
Scope of Information (Q59)
Š Business in the Community 2006
Quality of Information (Q60)
Target Setting Performance (Q61) Improvement (Q62)
Refer to the Environment Index feedback report for further details on each of these areas.
Social Impact Areas The following graphs provide further analysis on the three social impact areas completed by your company. Each area combines a mixture of management and performance criteria specific to the social impact in question.
96%
100% 100%
100% 94%
100%
97%
100% 100%
98%
100%
100% 100%
Product Health and Safety Company
80%
Sector
60%
Index
40%
0% Product Components
Design & Development
Monitoring PH&S Performance
Consumer Education
0%
0% 0%
20%
0%
80%
100% 94%
Company
79%
77%
86% 75%
100%
100% 89%
100%
96% 87%
85%
100%
100% 94%
Community Investment
60%
Sector Index
40% 20% 0% Investment Strategy
Measurement Measurement Impact of of Inputs of Outputs Programmes
Reporting
100% 100%
100%
100% 93%
100% 100%
Company
73%
100%
100%
94%
85%
78%
80%
75%
100%
100%
Responsible Products & Services
60%
Sector Index
40% 20% 0% Corporate Commitment
Measuring & Reporting
Š Business in the Community 2006
Quality of Information
Coverage
Performance Improvement