Veolia Water Business in the Community Feedback Report 2007

Feedback report

Veolia Water UK

The CR 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.

Š Business in the Community 2008

Feedback Report for Veolia Water UK This is a summary of your 2007 Corporate Responsibility Index results, comparing your company's performance against your peers and other Index participants. This year a total of 129 companies have used the Index as a management tool, with 111 companies participating publicly.

Anglian Water United Utilities Veolia Water UK (UK) Kelda Group Linde Group National Grid Severn Trent Thames Water Northumbrian Water Group*

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* 2007 Sector Leaders

' (

)

The Index Model ) * ) 10%

22%

26%

36%

Corporate Strategy

Integration

Management

Performance and Impact

Community

Environmental

Environment

Social

+,

) * )

6% Assurance & Disclosure

Marketplace Workplace -

) * ) Qs 1 - 6

Qs 7 - 15

Š Business in the Community 2008

Qs 16 - 39

Qs 40 - 86

Qs 87 - 88

Section Level Summary The following graph provides a summary of your performance in each main component of the Index.

Your performance is examined in more detail in the following pages. Please refer to the Index survey for further details of each element within the chart. For reference, each chart is normalised to 100%.

89%

100%

100%

88%

94%

93%

100%

100% 95% 89%

86%

91%

94% 88%

95%

100%

100% 94%

97%

100%

100%

99%

Strategy, Integration and Management Practices

80%

60% Corporate Strategy

Integration

Community Management

Environment Management

Company

Marketplace Management

Workplace Management

Sector

Assurance Processes

Index

Environmental and Social Impact Areas Each company completes six impact areas – three environmental and three social.

93%

97%

97% 87%

92%

91%

81%

98%

96%

100% 83%

85%

85%

77%

80%

89%

84%

100%

79%

100%

The environmental impact areas include two core impacts, Climate Change and Waste & Resource Management, plus one self-selected area relevant to the business. For their social impact areas companies are able to choose between Health, Safety & Wellbeing, Employee Development, Migrant Workers, Diversity in the Workplace, Community Investment or another self-selected impact area. You have chosen to report on the following:

60% 40% 20% 0% Climate Change

Waste & Resource Water consumption Management

Company

Š Business in the Community 2008

Sector

Employee Development

Community Investment

Responsible Products & Services

Index

Section 1: Corporate Strategy

100% 98%

100%

100%

100%

93%

94%

97%

97%

98%

100%

100%

100%

100% 98%

99%

100%

100%

100%

100%

100% 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% Corporate Values (Q1)

CR Principles (Q2)

Leadership (Q3a)

Company

Board Reporting (Q3b)

Advocacy (Q4)

Sector

Rsik Management (Q5)

Policies (Q6)

Index

Section 2: Integration

Stakeholder Engagement (Q14)

78%

100% 100% 94%

Training of Senior Managers (Q13)

100% 93%

100% 100% 95%

Training & Development (Q12)

80%

100% 94% 94%

Strategic Decision Making (Q11)

100% 94%

100% 91% 83%

100%

Business Conduct (Q8)

80%

89% 81%

Integration of CR Principles (Q7)

100% 93% 88%

100% 100% 98%

100%

100% 97% 90%

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.

Public Reporting (Q15a)

Scope of Public Reporting (Q15b)

60% 40% 20% 0% Performance Remuneration Management and Bonus (Q9) Systems (Q10)

Company

Š Business in the Community 2008

Sector

Index

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.

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.

80%

82%

94%

100% 79%

100%

91%

100%

95%

100% 83%

100%

92%

90%

100%

100%

91%

Community Management

Company Sector Index

60%

40%

20%

0% Community Strategy (Q17)

Targets (Q18)

Community Programmes (Q19)

Community Partnerships (Q20)

Monitoring (Q21)

80%

100% 94% 84%

85% 92% 84%

100% 99% 90%

100% 100% 95%

90% 83%

75%

100%

100% 96% 95%

Environment Management

Company Sector

60%

Index

40% 20% 0% Objectives (Q23)

Targets (Q24)

Employee Communication Environmental Environmental Environmental w ith External Management Audit Programme Stakeholders System (Q28) (Q25) (Q26) (Q27)

Š Business in the Community 2008

Marketplace Management

80%

87%

100%

95%

77%

100%

89%

83%

100%

90%

99%

96%

100%

100%

93%

100%

100%

This section was completely revamped this year to make questions more challenging and relevant.

Questions have been aligned with Business in the Community’s Marketplace Responsibility Principles and tailored to a company’s core activities. Companies now answer different sets of questions, depending on whether they are business-to-business or business-to-consumers, have suppliers in low or high risk counties, and have operations in countries with strong or weak governance.

Company

60%

Sector

40%

Index

20% 0% Product or Service Impact (Q30)

Customers (Q31)

Supply Chain Management (Q32)

Influence over the Rules (Q33)

Consistent Standards and Governance (Q34)

100%

99%

100%

100%

Company Sector

90% 87%

89%

93%

93%

94%

100%

100%

99%

Workplace Management

80% Objectives (Q36)

Targets (Q37)

Š Business in the Community 2008

Emmployee Programme (Q38)

Monitoring (Q39)

Index

Section 4: 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.

70%

73%

79%

89%

87%

100%

89%

Company

53%

80%

81%

100%

89%

100%

92%

100%

100%

Climate Change

60%

Sector Index

40%

0%

20% 0% Measuring and Reporting (Q40)

Scope of Information (Q41)

Quality of Information (Q42)

Renew able Energy (Q43)

Performance Improvement (Q44)

Company Sector

53%

47%

60%

56%

81%

80%

93%

100%

91%

100%

100%

89%

96%

100%

100%

Waste and Resource Management

Index

40% 20% 0% Measuring and Reporting (Q45)

Scope of Information (Q46)

Quality of Information (Q47)

Performance Improvement (Q48)

100%

Company

69%

100%

100% 78%

80%

100%

86%

100%

100%

96%

100%

100%

90%

100%

100%

100%

Water consumption

60%

Sector Index

40% 20% 0% Measuring and Reporting (Q49 or 54)

Scope of Information (Q50 or 55)

Š Business in the Community 2008

Quality of Information (Q51 or 56)

Targets (Q52 or 57)

Performance Improvement (Q53 or 58)

Section 4: 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.

100%

86%

Company

69%

80%

99%

95%

73%

85%

100%

98%

95%

100%

100%

100%

Employee Development

Sector

60%

Index

40%

Corporate Commitment

Measurement and Reporting

Performance Improvement

0%

0%

0%

0%

20%

Employee Programmes

88%

100%

96%

86%

85%

89%

100%

93%

100%

92%

83%

75%

80%

81%

100%

89%

93%

Community Investment

Company Sector

60%

Index 40% 20% 0% Measurement of Inputs

Measurement of Outputs

Business Benef its

Community Benef its

Reporting

82%

100%

100%

100%

93%

100%

88%

100%

100%

90%

89%

87%

94%

92%

100%

100%

Responsible Products & Services

80%

Company Sector

60%

Index

40% 20% 0% Corporate Commitment

Measurement and Reporting

Š Business in the Community 2008

Quality of Information

Coverage

Performance Improvement

Corporate Responsibility Index 2007 Key Changes We have introduced a number of changes to the Index this year in order for it to remain relevant and challenging and to continue adding value as a management tool. Some questions have been added, strengthened or rephrased and guidance notes have been improved to clarify requirements for supporting evidence. The main changes that have been introduced are as follows: 1) Management Section: Community:

- The question on ‘Community Investment Strategy’, which used to sit under the ‘Community Investment’ impact area, has been incorporated in this section; - The old ‘Integration’ question has been incorporated into the ‘Strategic Decision Making’ question no. 11 in the Integration section; - For each Community Investment Programme, there is a requirement to identify the key stakeholders.

Environment:

- The question on ‘Targets’ now includes the target setting elements previously covered within each environmental impact area; - The question on ‘Employee Training’ asks for more detail about training on specific environmental issues (e.g. Climate Change and Waste); - The questions on ‘EMS’ and ‘Environmental Audit’ have been merged into one.

Marketplace:

- Questions have been aligned with BITC’s Marketplace Responsibility Principles; - Separate questions have been introduced for business-to-business or consumerfacing companies, on product /service impact; - The questions on ‘Environmental and Social Supplier Programme’ have been replaced with questions that combine social, environmental and economic criteria based on where suppliers operate.

- The questions on ‘Influencing the Rules of the Marketplace’ and ‘Consistent Standards’ are no longer optional.

Workplace

Most of the changes have occurred in the impact areas (see below).

2) Performance & Impact: •

Climate Change has been revised and aligned with the GHG protocol and now includes a new question on renewable energy.

•

Product Health & Safety and Labour Rights in the Supply Chain have been removed as impact areas and are now integrated within the Marketplace management section.

•

Occupational Health & Safety has been renamed as Safety, Health & Wellbeing and includes new questions on Health and Wellbeing issues.

•

In the Social Impact areas, to increase choice, two new Workplace impacts have been introduced to cover Employee Development and Migrant Workers.

•

Community Investment has been renamed Community Investment – Benefits and Impacts and includes questions on business and community benefits and impact.

3) Assurance: •

In the past, as part of the Assurance Section, question 97b on Disclosure was given a score of 5%. Full disclosure is now the norm and disclosure now carries a lower score of 1%.

© Business in the Community 2008

** BITC recognises that the Index is orientated towards risk and management systems which have led to the achievement of "perfect" scores in various elements of the Index. To address this, we now plan to do a review of the Index - please contact us if you would like to be part of this review process Business in the Community mobilises business for good.

We inspire, engage, support and challenge companies to continually improve their impact on society. We work through four impact areas: Marketplace, Workplace, Environment and Community. With more than 850 companies in membership, we represent 1 in 5 of the UK private sector workforce and convene a network of global partners. We’re committed to help members integrate responsible business, share experience and take collaborative action.

Why? It’s just good business.

Business in the Community 137 Shepherdess Walk London N1 7RQ Telephone: 0870 600 2482 Fax: 020 7253 1877 Email: information@bitc.org.uk Registered Office: 137 Shepherdess Walk, London N1 7RQ. Telephone: 0870 600 2482. Registered Charity No: 297716. Company Limited by Guarantee No:1619253.

Š Business in the Community 2008