Corporate Responsibility Report 2004
Contents
Notes on Text and Symbols This report contains information on environmental and social performance during the reporting year 1st April 2003 to 31st March 2004. 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 all 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.
3
Statement from the Rt Hon John Gummer
4
Introduction
6
Highlights
8
The Water Businesses of the Veolia Water UK Group
9
Veolia Environnement
11
Policy development & Implementation
16
Managing the Veolia Water UK group responsibly
18
KEY Target met or, in the case of an ongoing target, making satisfactory progress
28
32
Highlights progress measured against the water industry’s sustainability indicators (see p.11). VE
2
Highlights progress in meeting Veolia Environnement’s sustainable development commitments (see p.10).
In the Community Our goal … to work with and support local communities and charities towards improving the quality of life.
KEY G Highlights where our programmes and targets contribute to the UK Government’s Quality of Life indicators, part of the UK Government’s Sustainable Development Strategy (see p.11).
In the Workplace Our goal…to provide employees with the opportunities and resources to allow them to make a meaningful contribution to the business.
Target partially achieved or in the case of an ongoing target, only limited progress Target not achieved or, in the case of an ongoing target, no progress
Our Business Our goals … to manage groundwater and surface water resources to preserve their social, ecological and economic value and to meet our customers' expectations in terms of the provision of water and related services.
34
In the Environment Our goal…to seek opportunities to reduce our consumption of natural resources by using alternative means where possible, and by optimising efficiency of use, whilst protecting and enhancing the environment.
46
Verification Statement
47
Glossary
51
Invitation to Comment
Statement from the Rt Hon. John Gummer MP
Water is essential to life and it is not therefore surprising
plan with the aim of ensuring that water quality improves
that it has always been a most powerful symbol of life.
and networks are managed in a sustainable way. Their
From primitive early societies to the most sophisticated,
latest plan succeeded in ensuring additional attention
water has represented purity and conferred new life. In
and funding will be paid to future maintenance
practical terms, it is the shortage and pollution of water
requirements, taking account of ageing pipes.
supplies that most effectively exemplifies the poverty in which so many live. Yet it is not only the human family that depends upon water. The environment everywhere is most fundamentally affected by its quantity and quality. It should therefore come as no surprise that a water company should understand that and seek to assess and measure its own performance against environmental goals. In the UK water represents excellent value for money. The cost of 10 litres directly delivered to a home is 1p. This compares with about ÂŁ5.70 for 10 litres of bottled water, without reference to the inconvenience of carrying a 10 Kg pack from the shops and recycling the empty bottles. Nor does it take into account the significant additional burden upon the planet represented by packaged water.
Governments will have to take much more seriously the issue of water supply, particularly in the context of climate change. It is not yet clear that the admirable rhetoric has properly been translated into action, even in the European Union, the world leader in the struggle to combat global warming. Veolia Water has sought to respond to these real concerns with the parallel approach of developing new and improved supplies and controlling demand. This is entirely consistent with the principles of sustainable production and consumption. Put simply, to continue to grow we must consume less and conserve more. This demands more efficient use of water in our homes, at work, and in our communities.
In the areas in which it operates Veolia Water sees increasing demands and pressures on its water resources and the excellent services it provides. The proposed development of over 800,000 new households in the SE of England will stretch the natural resources and the
Veolia Water companies provide an essential service. Its very importance demands that we provide it sustainably and economically. That is our corporate responsibility and we strive to fulfil it more effectively every year.
supply infrastructure to their limits. Rightly, new legislation such as the Water Framework Directive is beginning to impose new controls and expectations on the water industry and society in general. The role of water companies and operators is becoming more and more essential. Every 5 years, they produce a forward looking
Rt Hon. John Gummer MP Chairman of the VW UK Corporate Responsibility Advisory Committee
3
Planning for future demand - an introduction by the Managing Directors As the quinquennial review of water prices draws to its
corporate governance and ethics. The overall approach is
final stages it is appropriate to look back at what we have
underpinned by the principles of sustainable development
achieved and how we plan to go forward into the next
set in a framework of management of risk. This report is
five-year period.
structured in line with this approach by dividing Corporate Responsibility into four key areas - our Business, our
Our overall business objectives are to produce a safe,
Workplace, our Environment and our Community.
reliable product of high quality drinking water at a fair price. Every year we carry out over 75000 tests on the
We have achieved significant progress in the last five years
water we supply to our customers. In 2003/4 the Veolia
which is represented in this and previous annual reports.
Water companies complied virtually 100 per cent with the
We have consistently met and exceeded the large majority
stringent standards set in the Water Quality Regulations.
of the targets we have set. It is also reflected in external
The quality of tap water in the UK is amongst the highest
recognition through numerous awards, positive feedback
in the world. Throughout the last five years we have
and exceptional performance as demonstrated by the 4th
maintained a policy of investment in treatment plants to
place which we achieved in the Business in the Community
ensure that we achieve and maintain these standards.
Corporate Responsibility Index in the Sunday Times Top 100 ‘Companies that Count’. This performance is due to
We are committed to ensuring we meet the needs of our
the dedication and commitment of our staff who work
customers - both now and in the future. Our approach to
diligently to achieve the objectives of the company and
meeting this demanding objective is through a twin-track
the Veolia Environnement group which seeks to meet the
approach of having sufficient resources and managing
needs and expectations of our stakeholders.
demand. We aim to reduce leakage and encourage our customers to use water wisely. The success and growth
Going forward, we face many challenges in maintaining
of Veolia Water Industrial Outsourcing is testament to our
our level of customer service, improving and maintaining
belief in creating added value for our industrial customers
our assets and managing our supply/demand balance.
by helping them implement sustainable solutions to their
We operate in the dry SE England and this poses severe
environmental problems.
challenges. Our water resources and services are subject to increasing risk of threat from pollution, climate change,
4
Our approach to Corporate Responsibility has been
competing uses, changing and more intensive land-use,
developed and refined. As with a number of other
high employment costs, significant maintenance costs,
companies this grew out of a corporate approach to
corrosive and aggressive soils, and a congested and
environmental management and now encompasses the
unreliable transport infrastructure. To address these issues
functions of safety, health, environment, quality assurance,
we plan to develop alternative water sources, optimise our
licences and treatment capacity, introduce more metering and continue improving the underground assets and attacking leakage. Understanding and meeting the needs and expectations of our stakeholders is key to the execution of this plan. We encourage you to use this report and its feedback mechanisms to contribute to that understanding.
Jean Claude Banon, Managing Director Veolia Water UK PLC
Peter Darby, Managing Director Folkestone and Dover Water Services Limited & Veolia Water Projects Limited, and Chairman Tendring Hundred Water Services Limited
David Alexander, Managing Director Three Valleys Water PLC
Franรงois Darley, Executive Officer Veolia Water Partnership Limited
David Wright, Managing Director Veolia Water Industrial Outsourcing Limited
5
Highlights of the year
Our Statement of Corporate Responsibility Policy and Principles (see p. 9) incorporates our environmental, social and economic policies and principles which underpin our goal of continuing to develop in a sustainable manner. How did we perform this year?
Environmental performance • For the ninth year running none of the companies was prosecuted under environmental legislation and no water pollution enforcement notices were served. • We supplied drinking water considered to be of a “very high quality” and above the industry average1 (p. 21). • We continued with our installation programme of state-ofthe-art filtration treatment plants at several locations to further increase the quality of our water supplies (p. 22). • We reduced the risks of incidents principally through catchment protection and upgrading treatment works (p. 34). • Our emergency procedures operated satisfactorily when dealing with exceptional conditions such as a major burst in North Wembley in December 2003. • Two companies met their leakage targets; we continue to perform better than the industry average. Tendring Hundred has the lowest leakage levels in England and Wales (p. 20). • The Environment Agency approved our Water Resources plans. • We improved the fuel efficiency of our vehicles (p. 37). • We continued to foster priority species and habitats targeted in Biodiversity Action Plans (p. 39).
1
6
• Three Valleys was one of the first water companies to sign up to an agreement with Transco which promises a faster response to customers in the event of water ingress to gas pipes (p. 25). • Folkestone & Dover received a Green Apple award for the sensitive routeing of pipelines through the Dungeness Nature Reserve (see p. 39). • Our score for the 2003 Business in the Environment Index of Corporate Environmental Engagement was above the average of FTSE 100 companies (p. 27). • Of 14 new environmental targets for the year, 9 were met, 1 was narrowly missed and 2 were progressed. Of 29 ongoing targets we are on track with 13, and made progress with 14 others. 2 were not progressed. We have set 6 new targets for completion in future years.
Social performance • Three Valleys was prosecuted during the year under the New Roads & Street Works Act 1991 as a result of a contractor’s failure to meet the requirements of the legislation. • We further developed our programmes to support education (p. 33). • Three Valleys’ Education Centre received a Green Apple Award for a recycling project for visiting schools (p. 32). • We updated our Safeguard Register to ensure we continue to satisfy the individual requirements of vulnerable and special needs customers (p. 25). • We are on target to meet the industry-wide initiative ‘Clearwater 2010’ target to reduce accidents by 30% by 2010 (p. 30).
Industry average’ means the average of all the water service companies and water supply companies in England and Wales.
‘
• We again surveyed our employees for their opinion on improving our performance (p. 29). • We introduced absence management training and stress awareness programmes (p. 30). • We continued to examine ways and means of providing training and career development, wherever appropriate, for existing and disabled employees (p. 29). • Folkestone & Dover topped the list of companies judged best by Ofwat on their performance on key customer service measures, with Tendring Hundred taking second place (p. 25). • Three Valleys were once again awarded RoSPA Gold Award for Occupational Safety (p. 30). • VWP achieved Investors in People status • Our score for the Business in the Community Corporate Responsibility Index 2003 placed us fourth in the ‘Top 100 Companies that Count’, as leading water company (p. 27). • Of 9 new social targets for the year, 7 were met and 2 were progressed. Of 8 ongoing targets we are on track with 5, and made progress with 3 others. We have set 10 new targets for completion in future years.
Economic performance2 • Turnover for the 12 months to December 2003 was £204m, compared to £192m for the previous year. Ordinary profit before tax was £66m, compared to £155m for the corresponding previous 12 months. This will allow companies to invest in significant capital programmes. • Capital expenditure was £61m, compared to £79m for the previous 12 months. • During the year the Group acquired the balance of the share capital of Veolia Water Industrial Outsourcing Limited from its former joint venture partner, Veolia Water Systems Limited3. • The Group participated in and benefited from research undertaken by other companies within the Veolia 2 3
Environnement SA Group. Expenditure in the UK in the year exceeded £646,000 (2002: £506,000) • The Group complied with its policy to settle terms of payment with suppliers when agreeing terms of business and to pay in accordance with contractual and other legal obligations. The payment policy applies to all payments to creditors for revenue and capital supplies of goods and services (p. 27). • Veolia Water UK companies have suffered financially from the introduction of the Climate Change Levy despite significant efforts to conserve energy (p. 36). • The Veolia UK Pension Plan is open to all employees. The Plan provides a selection of benefits based upon final pensionable pay or money purchase according to the members’ wishes and date of entry to the scheme. • The Group has adopted the disclosure requirements on pensions (FRS 17). • Donations for charitable purposes made by Group companies during the year amounted to £35,000, together with £79,000 of sponsorship. The Group made no political contributions. • Two new economic targets for the year were both met. We have set 1 new target for completion in future years.
Invitation to comment We would like to hear from anyone who has comments to make on our environmental, social and economic performance. Please contact: Corporate Responsibility Services Veolia Water UK plc 37-41 Old Queen Street London SW1H 9JA Tel: 020-7393 2700, Fax: 020-7222 0046 E-mail: info@veoliawater.co.uk or comment online at www.veoliawater.co.uk
From Veolia Water UK Plc Annual Report & Accounts 2003 Veolia Water Systems is a water equipment design and supply company, and a subsidiary of Veolia Water. It does not come under Veolia Water UK plc’s scope of management and is not therefore included in this report. 7
The Water Businesses of the Veolia Water UK Group
The water businesses of the Veolia Water UK group
together with Veolia Water Partnership (VWP), Veolia Water
comprise three water supply companies:
Industrial Outsourcing Ltd (VWIO) and Veolia Water UK plc
• Folkestone & Dover Water Services Limited • Tendring Hundred Water Services Limited • Three Valleys Water PLC
(VW). (For a detailed explanation of the organisation and ownership of the Veolia Water UK plc group, as well as economic performance, please see the Annual Report and Accounts.) Each of the water companies supplies water to customers within a designated supply area; they do not provide sewerage services. Veolia Water Partnership provides planning, engineering, scientific and laboratory services; Veolia Water Industrial Outsourcing provides sustainable solutions to water and wastewater management problems for industry; Veolia Water UK oversees the three water supply companies, as well as Veolia Water Partnership and Veolia Water Industrial Outsourcing, providing support in relation to corporate matters.
Three Valleys Water Veolia Water Partnership Veolia Water Industrial Outsourcing Tendring Hundred Water Veolia Water UK Folkestone & Dover Water
8
Veolia Environnement
Veolia Water is part of Veolia Environnement, the world’s
Veolia Environnement Institute
leading environmental services group. VE celebrated 150
The Veolia Environnement Institute aims to contribute
years of buiness in December 2003. The Group is listed
to the thinking and debates about the future of our
in a number of socially responsible indices, namely the
environment.
Dow Jones Sustainability Index, FTSE4Good, Ethibel Sustainability and Storebrand SRI.
Constituted in France as a non profit organization, the Veolia Environnement Institute operates from a long-term
Veolia Environnement’s other activities comprise water
perspective. With the help of its Foresight Committee,
equipment design and supply (Veolia Water Systems),
made up of renowned specialists, the Institute’s mission
waste management (Onyx), energy services (Dalkia) and
is to anticipate changes in various fields such as
transport (Connex). Worldwide, Veolia Environnement
environment and health, sustainable economics, climate
employs around 309,600 people. It is listed on the Paris
change and urban growth. Since its creation in 2001
and New York stock exchanges. Net revenues for 2003
it has launched more than 15 studies and created an
were c28.6 billion euros.
important network with academia in Europe, China,
Veolia Environnement companies VWS, Onyx, Dalkia
North America and North Africa.
and Veolia Water have been developing a strong presence
The Institute organises internal workshops and
in the UK since the mid-1980s. Together the UK
conferences such as the international meeting held
companies employ approximately 13,000 people and
in partnership with the Institut Pasteur in Paris in
had a turnover of c766.6 million in 2003.
June 2004. For more information see
Veolia Environnement and Sustainable Development Veolia Environnement is a member of the World Business Council for Sustainable Development (WBCSD) and Entreprises pour l’environnement (EPE). The group supports the following initiatives: Global Reporting Initiative (GRI), Greenhouse Gas Protocol Initiative, United Nations Global Compact, Global Business Coalition on HIV/AIDS, and the World Resources Institute (WRI).
www.institutveoliaenvironnement.org
Veolia Environnement’s Corporate Values The Fundamental Corporate Values of Veolia Environnement to which the Group adheres are •
Customer focus We focus on our customers at all times, demonstrating the discipline and professionalism to anticipate and adapt to their needs and building a solid and lasting relationship with them.
9
•
Responsibility
the French association of accountants, the other for Best Sustainable Development Internet Site from Novethic.
We realize that our everyday actions have impacts on the improvement of people’s living conditions.
The 2003 report, which is available on the Internet at
We never forget the effects of our business on our
www.veoliaenvironnement.com, builds on the 10-point
employees and on society as a whole, and operate
Sustainable Development Charter which was reviewed
with the common good in mind. We allow our
and updated in 2003 to take account of the group’s
managers to assume full responsibility for the
commitment to the UN Global Compact4.
decisions they are called upon to make in carrying out their duties and expect them to fulfill
1
that responsibility. •
Innovation
2
identified, action plans to be implemented and
future. Through bold and imaginative research
progress to be monitored
and innovative technologies, we continuously 3
as they develop
Performance We show financial discipline at every level and
4
5
our ability to respond to environmental challenges
Cohesion The interests of individuals within the company
6
To develop our employees’ skills, to encourage them to be autonomous and to promote
are subordinated to the common interest.
corporate innovation
Experiences are shared and every success is a collective victory.
To increase our efforts in terms of research, development and innovation in order to improve
our action and ensuring long-term growth. •
To go beyond minimum legal requirements in terms of improving personal health and safety protection
concentrate on creating value for the company and its shareholders with a view to sustaining
To ensure that our facilities and services comply with relevant legislation, taking account of standards
customers and users alike. •
To establish and deploy an environmental management system enabling objectives to be
We create the environmental services of the
improve quality of service and value added for
To protect the environment, to preserve natural resources and encourage biodiversity
7
To encourage our partners, sub-contractors and suppliers to abide by our sustainable development commitments
Sustainable Development reporting
8
public in terms of environmental services
In early 2004 Veolia Environnement published its 2003 Sustainable Development Report (its fourth such report) covering the activities of the group worldwide. The water group in the UK contributed information from its own
9
To participate in the social development of communities where our facilities are based
10 To promote the commitments made in the UN
performance measurement systems. VE’s 2002 sustainable
Global Compact and to work with all stakeholders
development programme received two awards during the
in facilitating access to essential services and
year: one for Best Sustainable Development Report from
towards the respect of fundamental rights.
4
10
To anticipate the needs and expectations of the
The United Nations Global Compact, launched in 2000, is an international initiative that brings companies together with UN agencies, labour and civil society to support 10 principles in the areas of human rights, labour, the environment, and anti-corruption
Policy Development and Implementation VE Sustainable Development Charter
POLICY, GOALS & OBJECTIVES
UK Government Sustainable Development Strategy
Water Industry Sustainability Indicators (in development)
Regulators: Drinking Water Inspectorate, Environment Agency, Ofwat
VW Sustainable Development Commitments
VWUK Corporate Responsibility Policy
Three Valleys Water
Folkestone & Dover Water
Tendring Hundred Water
POLICY, OBJECTIVES & TARGETS
Veolia Water Industrial Outsourcing
Veolia Water Partnership
The principles and goals of sustainable development
Progress towards achieving these objectives is measured
are translated into concrete action around the world.
using a range of quality of life indicators. The Government
Here in the UK the Charter’s ten commitments inform the
is due to launch a new strategy in spring 2005 (Veolia
development and implementation of Veolia Water UK’s
Water UK contributed to the consultation). It will include
policies, procedures, goals and targets (where you see
actions to follow up the United Nations World Summit on
this symbol
Sustainable Development.
VE
).
The UK Government’s Sustainable Development Strategy
Water industry sustainability indicators
In addition to reporting on how we contribute to VE goals
development has influenced strongly a project by
and targets, we report also (where you see this symbol G)
Water UK, the industry’s trade association, to extend the
on how our programmes and targets contribute to the UK
industry-wide sustainability indicators to include social
Government’s Quality of Life indicators, part of the UK
and economic indicators. Although the project is not yet
Government’s Sustainable Development Strategy. The
complete, we have taken the opportunity in this report
UK Government issued its strategy for the UK in 1999. It
to measure our progress against those sustainability
covers the three pillars of sustainable development: social
indicators that have already been developed (where
progress, economic growth and environmental protection.
you see this symbol ).
The UK Government’s strategy for sustainable
11
Example of policy development and implementation at Veolia Water • Veolia Environnement has set itself a target to reduce employee absenteeism by 20% by 2005. • This target is consistent with a social objective of the UK Government’s Sustainable Development Strategy to develop skills and rewarding work. • The water industry is currently developing an indicator relating to the number of days lost through workrelated illness and absence. • Similarly, one of Veolia Water UK’s Corporate Responsibility Principles is to ensure that staff receive appropriate education and training to enhance their skills and develop their potential. • An objective of Three Valleys Water for 2003/4 seeks to address staff absenteeism levels.
What do we mean by corporate responsibility? Corporate responsibility is the means by which an organisation fulfils its obligations to its stakeholders – see our policy below. A stakeholder is an individual or group who has a legitimate interest in a decision by influencing or being affected by that decision.
Veolia 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 Veolia 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 key aspects of this policy and publish a full 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 through 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
12
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:
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 customers we will:
• Comply with legal requirements, in co-operation with Government and regulators
• Maintain the highest standards of service
• Wherever practicable, minimise the negative impact of the company’s activities on the environment and society
• Endeavour to give good advice to those who are having difficulty in making payments
• Ensure the efficient use of energy, water, fuel and other resources
• Respond promptly to all inquiries
• 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
• Treat them fairly, particularly in financial matters
• Provide them with the information that they need about matters which they raise with us • Provide them with full information about any relevant matter affecting our services
• 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, and advise on, efficient water use.
• Encourage conservation of, access to, and recreation on our landholdings wherever possible and within the constraints of the business
• Provide all necessary training and resources in health and safety matters
• Undertake environmental impact assessments of proposed activities when appropriate
For our employees we will: • Maintain the highest standards of health and safety in our operations
• Ensure that staff receive appropriate education and training to enhance their skills and develop their potential • Reward our employees fairly for their work
• Communicate effectively with stakeholders on environmental matters
• Ensure that good quality occupational health advice is available
• Provide relevant training to staff in order that they can fulfil their responsibilities
• Provide appropriate recreational facilities for employees
• 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.
• Promote a work environment free from discrimination built upon mutual trust and respect • Allow freedom of association and co-operate effectively with those who represent our staff on employment matters.
13
For our investors we will:
• Respond to any issues raised in a timely manner
• Treat them fairly and seek to minimise the financial risks to which they are exposed
• Undertake and support educational work about water matters and generally
• Provide them with the information which they need to monitor their investments.
• Support appropriate community projects
For our suppliers we will: • Act fairly and reasonably in our dealings with our suppliers and potential suppliers • Follow reasonable payment policies • Endeavour to assist them in fulfiling their undertakings to us • Have regard to the welfare and interests of their employees, and seek to assist suppliers to operate in a safe, socially-responsible manner. For our neighbours and local communities in which we operate we will: • Work with and support the local communities in which we operate • Maintain good relations with individuals, groups and representatives of those communities and provide them with the information that they need about our business
14
• Support, and encourage our staff to support various charities.
Economic policy In the interests of our stakeholders, we will conduct our activities as efficiently, effectively, ethically and profitably as possible on a long-term basis. We will seek to maintain our assets to ensure that high standards of service can be ensured both now and in the longer term. Corporate responsibility organisation and reporting for Veolia Water UK plc
Corporate responsibility organisation and reporting for Veolia Water UK plc
Veolia Water UK Corporate Responsibility Reports
3V envtl report
FD envtl report
TH envtl report
External Verification
VWUK summary leaflet
Veolia Water UK PLC Board
VWUK investors sheet
Veolia Water UK PLC Corporate Responsibility Advisory Committee
Environment Champions
Folkestone & Dover Water (ISO 14001)
Tendring Hundred Water (internal mgmt system)
Three Valleys Water (Balanced Scorecard)
Veolia Water Partnership (internal mgmt system)
Veolia Water Industrial Outsourcing (ISO 14001)
EXTERNAL REGULATORS
Environment Agency
Office of Water Services (OFWAT)
Drinking Water Inspectorate (DWI)
Department for Environment, Food & Rural Affairs (DEFRA)
15
Managing the Veolia Water UK Group responsibly
At Veolia Water UK we aim to manage our businesses in
Examples of how we engage
line with our statement of policy and priniciples on
• Customers: information leaflets sent out with bills, media press releases, call centres, and regular contact with WaterVoice, the organisation that represents the interests of customers on issues such as price, service and value for money.
corporate responsibility (see p. x) and applying the principles of risk management. The Managing Director of each company has overall responsibility for corporate responsibility performance and
responsible for promoting initiatives, monitoring
• Employees: annual staff satisfaction survey; statutory safety committees; employee feedback sessions on fulfilling our corporate responsibility (for which a summary of this report is produced).
performance and internal communication.
• Local communities
reports on this to the company’s Board. Each company has one or more Corporate Responsibility Champions
- VWP employed a multi-faceted communications Particular attention to corporate responsibility is also paid at Board level, thanks to: The Right Honourable John Gummer MP, non-executive Chairman of Veolia Water UK PLC with special responsibility
Water Quality Improvement Programme (Rehabilitation) in the Epping area (p. x). This included: - a series of direct mail to customers
for the environment and chair of the Corporate
- information roadshows
Responsibility Advisory Committee to the Board.
- work with schools in the area via the Education Support Team
Dr Neil Summerton CB, non-executive director of Three Valleys Water, where he takes a close interest in corporate responsibility, and of Folkestone & Dover Water Services, where he has specific responsibility for environmental policy and performance. He advises Veolia Water UK on economic and environmental regulation and is a member of the Corporate Responsibility Advisory Committee.
Engaging with our stakeholders Our companies engage with their stakeholders about their requirements and expectations, using various means, including this report.
16
campaign during the year to support the £19 million
- creating a specific area on the web site - a planned programmed of news releases with the local media - local advertising Local feedback suggests there have been no complaints as a result of the inevitable disruption caused. - the Education Centre teaches both existing and future customers about water efficiency (see p. ) - working with local management groups, eg Friends of Stockers Lake (Three Valleys) and the White Cliffs Countryside Project (Folkestone & Dover)
David Middleton CEO, BCSD-UK
• Regulators: eg we consult with English Nature when laying a main through a specially designated area such as a Site of Special Scientific Interest
• NGOs: National Society for Clean Air. We took part in a joint NGO/water operators meeting on the Millennium Goals for water5,
• Industry & agriculture: we have developed communications strategies with the hydrocarbons industry, agriculture, and the chemicals industry to prevent pollution
• Regulators: Environment Agency working groups
• Local government: we liaise with Local Area Authorities so that there is a better understanding of the strategies, methodologies and registers required under the Environmental Protection Act. • Investment community: we prepare a one-page summary of our policies and performance, inviting feedback
• Academia: Universities of Herts, Surrey and Brunel “The Business Council for Sustainable Development – United Kingdom (BCSD-UK), the affiliated branch in the UK of the World Business Council, is committed to focus on the practical delivery of sustainable development and how that potentially adds value to economic, social and environmental goals. I therefore applaud the exemplary work of our member, Veolia Water, part of the Veolia Environment Group, and its commitment to delivering
We are in turn engaged by a number of bodies, eg:
responsibility and accountability at the local level and to
• Industry: Water UK, CBI, Environmental Analysis Cooperative, Business in the Community, Business Council for Sustainable Development UK (VWIO). Peter Darby, Managing Director of Folkestone & Dover Water, chairs the Kent Sustainable Business Partnership.
the implementation of effective integrated management
• Peer group companies: we took part in the Thames Water stakeholder consultation event in 2003
and environmental aspirations into one objective that is
• Customers: we took part in GlaxoSmithKline’s stakeholder dialogue
challenging task but in my mind an essential one, which is
designed to develop their business in a sustainable manner. Sustainable development will only be achieved when the corporate community properly integrates economic, social practically applied and annually reported. That is a truly why I so applaud the leadership activity of Veolia in this.”
• Charities: Groundwork, Working Herts, WaterAid, Herts Community Foundation • Government: Thames Regional Environmental Protection Advisory Committee, Associate Parliamentary Environment Group, Kent Sustainable Business Partnership. We took part in the Sustainable Development Commission’s Forum on Sustainable Consumption and Production
5
David Middleton CEO, BCSD-UK
At the Millennium Summit, the Development Goals agreed by the United Nations included the proposal “to halve, by the year 2015, the proportion of people who are unable to reach or to afford safe drinking water". This Goal was extended to include access to basic sanitation at the World Summit on Sustainable Development in Johannesburg in 2002.
17
Our Business
Our goals … to manage groundwater and surface
in a seamless manner. All the regulated businesses have
water resources to preserve their social, ecological and
upgraded their quality systems to meet the new ISO
economic value and to meet our customers’ expectations
9001:2000 standard. The introduction of systems that are
in terms of the provision of water and related services.G
compliant with the ISO 14001 standard at priority sites is a target set by the Veolia Environnement group. It is essential
These goals underpin the companies’ business plans for 2005-10 and the longer term. Our plans, as approved
that certification to the standard adds value to our business and undergoes a detailed analysis of benefit and cost.
by Ofwat and the Environment Agency, will tackle supply and demand imbalances using a twin track approach to
During the year the laboratories renewed their certification
develop our water resources whilst also encouraging
under the NAMAS accreditation scheme.
careful water use. We plan to increase meter penetration to manage demand whilst making better use of existing water resources and investing in infrastructure to improve our ability to transfer water across our supply areas to regions where it is needed most.
Folkestone & Dover Water Services improved its management systems through integrating the environmental management (ISO14001) and quality management (ISO 9001) systems. The health and safety management system will be integrated in 2004/5.
We are also conscious of the ageing process of our network, and have established long-term investment plans to improve the sustainability of our product and service.
Veolia Industrial Water Outsourcing maintained its certification to the ISO 14001 standard, and Tendring Hundred Water Services committed to achieving the
We will also increase investment in pipe renewals,
standard by June 2005. VWIO’s integrated management
targetting our works in areas suffering most from high
system (environment, health and safety, and quality) was
rates of mains bursts. This investment will reduce the
designed and implemented in a very short time, especially
inconvenience caused by supply interruptions and by
considering the complexity of the business. As part of the
streetworks to repair burst mains.
ongoing development of the business, the management system will be rolled out to each new outsourcing contract.
Management systems
VE
Formal environmental, health and safety, and quality
Three Valleys Water has structured and organised the
systems are fundamental to continuous improvement in
business to respond to the needs of stakeholders by
our performance. These systems are at various stages
adopting a business balanced scorecard - the key
of maturity throughout our businesses and are being
management tool enabling the Board to monitor performance
integrated into the overall management of the business
in a comprehensive way. All departments have identified
G Consistent with the UK Government’s Quality of Life indicator for freshwater.
VE
18
Relates to water industry sustainability indicator on managing environmental and sustainability issues. Meets a VE commitment to deploy an environmental management system.
their interfaces with different stakeholder groups and
environmental and social criteria in supplier selection and
established objectives and targets. Each departmental
performance procedures, and included buyer training.
balanced scorecard feeds into the company strategy. This overarching approach can accommodate existing
Managing for Sustainable Development
management systems such as Health and Safety and
Our task is to balance the demand for water against the
Quality. The environmental management system continues to
availability of water resources in the areas where we
develop in line with the balanced scorecard to concentrate
operate, whilst protecting the environment. Due to the
on the significant issues such as energy use, waste disposal
pressure on water resources in South East England, this
and the maintenance and improvement of landholdings.
requires innovative solutions. We do not act alone; the Environment Agency plays a major role in determining the
Management of operations
availability of resources and determines licence applications
We have ongoing commitments to update site
to abstract water between competing demands.
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
Each year, our companies must submit detailed Water Resource Plans to the Environment Agency, as well as drought contingency plans every three years. These plans are reviewed annually, and an update supplied to the Environment Agency.
disruption or nuisance to our neighbours, particularly in
An important measure of companies’ water resources
relation to the safe storage of chemicals. Folkestone and
positions is the security of supply index, as reported to the
Dover produced a comprehensive set of site environmental
regulator Ofwat . Water companies plan to meet demand
profiles as part of their efforts in obtaining ISO14001
in a drought year, but they also maintain a security margin
certification in 2002.
to account for uncertainty and risk in the availability of
Managing the supply chain
water resources and the extent of customer demand.
Margin of security (Index score band)
Veolia Environnement is committed to encouraging partners, subcontractors and suppliers to adhere to
2003/4
its sustainable development commitments. The VE Purchasing Charter sets out the purchasing values, which
Folkestone & Dover
D
include health, safety and environmental considerations,
Tendring Hundred
A
and specifically behaviour toward suppliers. VWUK
Three Valleys
B
companies have adopted as far as practicable the Group purchasing policy, mindful of Ofwat’s requirement for
Security of Supply Index
water companies to have a transparent system to show
The chart shows:
trading at arm’s length from associated companies.
• Folkestone and Dover continues to have a large deficit against headroom. The company has adopted a twintrack strategy to secure long-term high quality water
The procurement function was reorganised during the year. This allowed the development and inclusion of
The security of index is also a water industry sustainability indicator. 19
Per capita water consumption (litres per head per day) (excl. supply pipe leakage) 200
Measured
Industry average
Unmeasured
150
100
50
0 97/98
98/99
99/00
00/01
01/02
02/03
03/04
97/98 98/99 99/00 00/01 01/02 02/03 03/04
Folkestone & Dover
97/98 98/99 99/00 00/01 01/02 02/03 03/04
Tendring Hundred
supplies by developing new water sources and promoting water conservation.
Three Valleys
Using water more efficiently…actions Water efficiency measures help to bridge the potential gap
• Tendring Hundred’s supply:demand balance is adequate.
between demand and supply. During the year the number
• Three Valleys moved from band C last year to Band B this year, due to an increase of available water from the Iver source as a result of commissioning the Iver/Egham link main. The company has a potential shortfall in its three zones. The company’s approved plan is intended to ensure security of water supplies in all resource zones.
of customers with metered supply increased. 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
Domestic Demand for Water
• Free issue of cistern water saving devices, eg Hippos
Another indicator used in forward planning water resource
• Optional metering of domestic properties, free in all areas
management is the per capita consumption rate. per
• Compulsory metering of properties for high water using appliances such as sprinklers
capita consumption rate. As the Government expects 1.4 million additional households to form in the South East & London between 1996 and 2021, future household demand is a key driver of water resource planning.
• Metering of all remaining commercial customers and swimming pool customers, wherever practical. In addition, Three Valleys led a UKWIR (see glossary) project
In addition, changes in the climate, with wetter winters and
to establish best practice in measuring the effects of water
drier, hotter summers, have to be taken into consideration.
efficiency measures, including their long-term sustainability.
Overall water resource availability is also threatened by
The project, which was completed in March 2003,
changing patterns of land use such as urbanisation and
produced a set of best practice guidelines for consideration
land drainage. To plan for these effects, our companies’
when implementing any water efficiency project. The
Water Resources plans considered different climate
company will take part in a follow-up study to be launched
scenarios, development patterns and demand conditions.
at the end of 2004. Three Valleys also participates in a
As a consequence of this planning and effective
number of external groupings looking at, for example, the
management, the companies have not imposed hosepipe
uptake of water efficient fixtures in new build developments,
bans in recent years.
benchmarking water use so as to better focus water efficiency techniques, improving water efficiency in South
Average demand for water in 2003/4 was 7% higher than
East England, and promoting water conservation.
the previous year, reflecting a hotter summer in 2003 and a long-term upward trend.
Leakage All three water companies met a Veolia Environnement
Tendring Hundred’s customers continue to have the country’s lowest per capita water consumption rates.
network efficiency target set at 80%. Three Valleys succeeded in reducing leakage compared to the previous year through an increase in detection activities and in the
6
20
The security of index is also a water industry sustainability indicator. Figures from 2000/01 onwards are for the Three Valleys Water company which merged with North Surrey Water in October 2000.
Demand for water Water treated and put into supply by Veolia Water UK companies (annual average megalitres per day) (incl. imports) 1000
800
600
400
200
0
95/96 96/97 97/98 98/99 99/00 00/01 01/02 02/03 03/04
resources to deal with the increased number of repairs.
Drinking water
Although it failed to meet the leakage target for the year
During the year we provided drinking water to over 3.3
the company’s leakage level is below the industry average
million people. The Drinking Water Inspectorate in its
and in line with the more recent target set by the regulator
annual report concluded that each of the Veolia Water UK
for 2005.
group companies continued to provide water “of a very
Folkestone & Dover’s and Tendring Hundred’s leakage rates were better than the targets set by the regulator, Ofwat. Having achieved consistent levels of leakage, they have set themselves similar targets for 2004/5. Tendring Hundred continues to have the lowest level of leakage per
high quality”. All three companies’ compliance with the drinking water standards exceeded the industry average, with Tendring Hundred achieving 100% compliance. It should be remembered that UK water standards are among the highest in the world.
property in the industry. Tendring Hundred’s performance is very close to the minimum achievable.
Extracts from the 2003 Drinking Water Inspection
Metering is an important demand management tool as
The DWI Chief Inspector found that all three companies continue to supply customers with drinking water “of a very high quality”:
surveys show that households fitted with a water meter use approximately 13% less than those without a meter. Its use is however limited due to current legal restrictions. All three companies continue to offer metering free of charge, installing over 29,800 in 2003/4. Sixty one per cent of all Tendring Hundred’s customers now have a meter, 40% of Folkestone & Dover’s and 29% of Three Valleys’. On average across the group, one in three customers now has a meter. As part of the targets to guarantee water supply security in a region that has half the average nationwide rainfall, Three Valleys will seek increased metering for the 2005-2010 regulatory period. It aims to have 44% of domestic properties across its region metered by 2010. Folkestone & Dover will apply for water scarcity status to enable it to introduce compulsory metering. It will aim to have 90% of
• Folkestone and Dover - 99.92% of samples met the required standard. There were no water quality incidents during 2003 that affected drinking water quality. • Tendring Hundred - 100% of samples met the required standard. There were no water quality incidents during 2003 that affected drinking water quality. • Three Valleys – 99.89% of samples complied with the regulations. Of the samples that did not comply, out of more than 75,000 samples taken, none were considered harmful to consumers’ health. There were 5 incidents of a deterioration in drinking water quality during 2003. 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)
its 200,000 customers metered by 2015.
Water industry sustainability indicator 7
Figures from 2000/01 onwards are for the new Three Valleys Water company which merged with North Surrey Water in October 2000. 21
Drinking water quality percentage compliance with Drinking Water Quality Standards Industry average 100 99.8 99.6 99.4 99.2 99.0 98.8 98.6 0
95 96 97 98 99 00 01 02 03
95 96 97 98 99 00 01 02 03
95 96 97 98 99 00 01 02 03
95 96 97 98 99 00 01 02 03
Folkestone & Dover
Tendring Hundred
North Surrey 5
Three Valleys
Treating water
filtration plant at Chertsey, Surrey, and Folkestone &
All water that enters the public water supply has to be
Dover’s two new membrane plants.
disinfected. This is normally achieved through the use of chlorine or ultra violet light. The Veolia Water UK
Chlorination
companies’ approach to water quality is based on the
The water companies use two methods to chlorinate
precautionary principle of applying controls wherever
water: chlorine gas (either generated on site or delivered
assessments indicate that a risk may be present. During
in cylinders) or a sodium hypochlorite solution. Since
the year Three Valleys installed four state-of-the-art
1995 they have monitored and greatly reduced their
membrane filtration plants. Folkestone & Dover installed
use of chlorine gas, because of the handling, storage,
a membrane plant at Drellingore. Wastewater from the
environmental, health and safety issues associated
treatment process is diverted to a pond in order to help
with the chemical, in favour of less hazardous sodium
sustain wildlife.
hypochlorite.
Twenty per cent of the water Three Valleys put into supply
The amount of chlorine gas Three Valleys stores at its
is now treated through membrane plant. Folkestone &
Iver water treatment has been significantly reduced as
Dover has the highest proportion of membrane treatment
a result of the company’s target to replace chlorine gas
capacity compared with other water companies.
with sodium hypochlorite. This has also reduced the amount of sulphur dioxide used.
Ultrafiltration and microfiltration membrane plants can reduce the quantities of chlorine required for disinfection,
Ozonation
thereby reducing the environmental impact associated with
Ozone is used in water treatment to break down organic
the use of chlorine compounds. Another advantage is the
pollutants such as pesticides and herbicides. It can also
significant reduction in water loss, chemical usage and solid
improve the taste and odour of the water and assist in
waste produced in the treatment process.G Membrane
disinfection. Ozone is produced from either air or oxygen
plants allow for washwater from the plant to be recycled
which is passed through glass tubes when an 11,000 volt
to the head of the works instead of running to waste.
electrical discharge is applied. It is pumped into and absorbed by the water. Any unabsorbed ozone is drawn
Ever more complex water treatment (such as ozonation,
off and destroyed.
double stage filtration for pesticides etc, granular activated carbon adsorption, airstripping volatile organic
Air stripping
compounds, orthophosphate dosing for lead, ultrafiltration
At Dunmow treatment works Three Valleys is improving
for cryptosporidium etc) inevitably results, however,
water quality by airstripping VOCs (volatile organic
in using more energy per unit of water produced.
compounds) from a polluted water source. The technology
As part of the programme to enhance drinking water
used for this is the most efficient in terms of energy usage.
quality, work was completed during the year on Three Valleys’ new state-of-the-art water treatment membrane
Water industry sustainability indicator on investment in research. North Surrey Water merged with Three Valleys Water in October 2000 G Consistent with the UK Government’s Quality of Life indicator to reduce the environmental impact of chemicals. 8
22
Total leakage achievements (incl. communications pipes) Leakage achievements: actual and target rates of total leakage: megalitres/day Target
12
Actual
210 180
10
150
8
120 6 90 4 60 2
30
0
0
96/97 97/98 98/99 99/00 00/01 01/02 02/03 03/04 04/05 96/97 97/98 98/99 99/00 00/01 01/02 02/03 03/04 03/04
Folkestone & Dover
96/97 97/98 98/99 99/00 00/01 01/02 02/03 03/04 04/05
Three Valleys 7
Tendring Hundred
Use of gaseous chlorine (tonnes)
Use of sodium hypochlorite (tonnes)
2000/01
2001/02
2002/03
2003/04
2000/01
2001/02
2002/03
2003/04
Folkestone & Dover
7
10
7
7
0
0
0
0
Tendring Hundred
5
5
3
6
130
168
154
153
North Surrey
13
225*
225
229
479
1267*
1694
2360
*increase due to improved data collection
Nitrates
treated water. The treatment is expected to safeguard
Although the presence of nitrates would usually be
compliance with the interim standard for lead under the
associated with agricultural pollution, urban pollution
new EU Drinking Water Directive.
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. Implementation of the EC Nitrate Directive and the new Nitrate Vulnerable Zones designated following the
Orthophosphate dosing reduces the need to replace thousands of lead pipes. It is estimated that about 30% 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.
Research and Development
VE
Government’s diffuse pollution review may result in greater
Investment in research and development represents a
protection for the environment from this type of pollution in
fundamental element of the Veolia Environnement past,
future. In addition to the drinking water quality standards,
present and future success. Anjou-Recherche is at the
the Drinking Water Inspectorate also measured water
heart of VE research and development and innovation
companies’ performance against a number of quality
efforts. Anjou-Recherche co-ordinates the worldwide
parameters, to gauge how well treatment works and
network of research at Veolia Water. Its mission is to
distribution systems are operated and maintained. All
develop tomorrow’s new products and technologies for
three companies exceeded the industry average.
Veolia Water, to respond to the needs of municipal and industrial water and wastewater markets. Its global reach
Lead
builds upon a network of over 450 researchers working in
New regulations regarding the content of lead in water
Europe: Anjou-Recherche (France), Kompetenz Zentrum
have led to the installation of around 50 new treatment
(Germany), Veolia Water Partnership (UK), North American
plants. The programme has been agreed with the Drinking
Technology Center (Canada) and Windsor (Australia).
Water Inspectorate and consists of dosing water supplies with orthophosphate. This reduces the solubility of lead in
VE
Meets a VE commitment to increase R&D in order to be able to respond to environmental challenges. 23
• Pilot scale treatment of bromate contaminated groundwater
VE in the UK is currently concentrating its research and
• Water quality in the distribution system
efficiency, sustainability and asset managment. The main
• Optimisation of membrane processes operations
projects are a continuation of last year’s programme.
• Management of microbial risk and security of water from source to tap
Emergencies
• Effect of climate change on nitrate levels
Each company has procedures in place to provide
• Control of bromate formation during ozonation • Behaviour of soil conditions and its contribution to bursts and leakage • Probability of pipe failure
development in the areas of water efficiency, operational
appropriate responses to incidents. Drills are carried out regularly to test the adequacy of those procedures.
Customer service OFWAT, the water industry’s economic regulator, assesses
• Non-destructive testing of pipelines
companies’ overall delivery of service to customers annually.
• National burst database
In the 2003-04 Overall Performance Assessment report
• Mainlaying in contaminated land
Folkestone & Dover achieved the highest score from all the
• Optimisation of flushing
companies in England and Wales, with Tendring Hundred
• Impacts of climate change on supply and demand balance
taking second place. Both companies maintained a five-star
• Development of a pollution assessment tool for water resource protection
measures which include water pressure, unplanned
• Investigation of the ecological impacts of low flow rivers • Application of a biodiversity methodology to pilot sites
rating for their performance on key customer service interruptions, complaint handling, and telephone contact etc. At the beginning of the year, Three Valleys’ service levels dropped below those expected by the regulators and its
• Focus group opinion on customer expectations of a water company’s products and services
customers, with company contacts significantly above
• Economic modelling of the supply chain in key water resource areas.
when trying to contact the company by telephone. This
forecast and some customers receiving an engaged tone was resolved later in the year following a company drive to recruit and train more staff, and making more telephone
In the UK the Veolia Water companies have invested over
lines available.
£0.7 million in projects devoted to specific company and collective industry issuesG . This work has been
During the year all three water companies introduced new
conducted at company level and in collaboration with the
customer information leaflets to accompany water bills. For
corporate research and development organisation, Anjou
customers who do not have English as a first language
Recherche, and external bodies such as UKWIR and
information can be translated into 100 different languages.
various academic institutions.
Special needs customers registered on the company’s Safeguard Scheme benefit from additional services such as a password scheme for entering a customer’s property,
VE
24
Relates to commitment to increase R&D in order to be able to respond to environmental challenges
G Consistent with the UK Government’s Quality of Life indicator for investment that is vital to future prosperity
Water industry sustainability indicator on investment in research
Signing the agreement with Transco
priority deliveries of bottled water in the event of supply interruptions, and bills in large print and, for Three Valleys’ customers, in Braille. The water companies notify those measured customers who may have a leak (as identified by a high meter reading). They also offer free supply pipe repairs to domestic customers, plus a leakage allowance. If the pipe is too poor to mend, the customer is offered subsidised replacement. In recognition of the fact that not all customers are able to install a meter if they would like one, Three Valleys and Tendring Hundred have developed an assessed tariff based on estimated consumption. Three Valleys was one of the first water companies to sign up to an agreement with Transco which promises a faster response to customers should water get into gas pipes. This was prompted following several incidents of water in gas pipes leading to customers losing their gas supplies for a number of days. The agreement, signed in 2004, sets out a procedure for prompt management of incidents and agreed actions to be taken.
Industrial and commercial clients Veolia Water Industrial Outsourcing (VWIO) works in partnership with industry to provide environmentally aware, cost-effective water processing, recycling and wastewater management.
25
Case study Johnson Matthey Catalysts appointed Veolia Water Industrial Outsourcing (VWIO) to design, build, operate and maintain a new effluent treatment plant at its site at Clitheroe, Lancashire. The new facility is designed to treat the bulk of the effluents generated on site. As part of the company vision and commitment to manage its activities at the highest level of protection to the environment, the new plant is part of an investment programme intended to meet the requirements of Urban Wastewater Treatment Directives. Johnson Matthey is a speciality chemicals company focused on its core skills in catalysts, precious metals and speciality chemicals and a world leader in advanced materials technology. At the Clitheroe site, Johnson Matthey Catalysts develops and manufactures over 150 different high performance catalysts that optimize chemical processes. The site is certified to the environmental standard ISO 14001 and is one of Johnson Matthey Catalysts’ largest catalyst manufacturing installations.
In the UK Three Valleys Water provides an emergency
of 14% since 1998-9. The levels of household revenue
mains repair service to 12 industrial and commercial
written off and the costs of collection have also increased
customers in the event of a burst or leak on their premises.
significantly across the industry.
For customers with older networks this service is invaluable in keeping the volume of water lost to a minimum.
All three companies offer a comprehensive range of payment methods for those experiencing problems in
The company’s Developer Services department works
paying their water bills. Communicated by information
with property developers on the design, pricing and
leaflets which accompany all final and reminder bills,
construction of water mains. This includes advice on
customers can make payments local to their home, free
how to help their customers to be water efficient. A good
of charge, and at intervals that suit their budget.
working relationship with developers is essential in view
Assistance is also available to certain customers which
of the half million new homes due to be built in the
involves capping their charges at the average household
south-east in the next few years.
charge rather than the actual measured bill. At Three Valleys a Customer Assistance Fund assisted 115
Folkestone & Dover Water and Tendring Hundred Water visit their industrial and commercial customers regularly to offer advice on water consumption.
Household debt Outstanding debt for the water industry is estimated at over £770 million, affecting 20% of households supplied, ie around 4.7 million homes. This represents an increase
26
applicants in 2003/4 to the sum of £86,000. The scheme provides customers in debt with a fresh start provided that they make regular payments for an agreed period (typically 6-12 months) beforehand.
Folkestone & Dover and Tendring Hundred have joined
Benchmarking
with four other water companies in the south-east to fund
Each year the Veolia Water UK group businesses
a charity that aims to help people reduce the burden of
benchmark themselves against peer companies in order to
debt and meet future bills. The Eos Foundation offers
understand their performance in relation to ‘best in class’
financial assistance to reduce or clear arrears of domestic
companies and identify good and better practice to help
water charges.
improve performance.
Payments to suppliers
•
The Group companies are aware of the need for timely
Business in the Environment Index of Environmental Engagement
payment for goods and services received. The Group has a policy to settle the terms of payment with suppliers when
In 2003 we took part for the 8th year in succession in
agreeing terms of business and to pay in accordance with
the Business in the Environment Index, scoring 87%
contractual and other legal obligations. During 2003 the
and equalling our score for 2002. This score was better
average time taken by Group companies to settle
than the average score of FTSE100 companies.
suppliers’ invoices was 44 days, compared with 34 days for 2002.
Pensions and socially responsible investment 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
•
Business in the Community Corporate Responsibility Index
In 2003 we took part for the second year in Business in the Community’s Corporate Responsibility Index. Our score placed us fourth in the top 100 companies, as leading water company.
are taken into account in ... investment” came into effect in July 20009. In June 2000 the Veolia Water Supply Companies’ Pension Plan’s investment committee adopted a policy of actively encouraging the Plan’s investment managers to assess regularly the extent to which social, environmental and ethical criteria are considered by fund managers. A number of subsequent reviews of the information gained, and the trends towards improvements in the criteria, have taken place. The Trustee has also provided the investment managers with details of its own policy on social, environmental and ethical investment, based on the Veolia Environnement commitments (see p. 10).
9
Relates to water industry sustainability indicator on responsible contracting. The Occupational Pension Schemes (Investment, and Assignment, Forfeiture, Bankruptcy etc.) Amendment Regulations 1999. SI 1999/1849.
27
Michael Howard MP visits Folkestone & Dover call centre
In the Workplace
Our goal…to provide employees with the opportunities and resources to allow them to make a meaningful
200110
20028 20038
contribution to the business VE G.
No. of employees at 31st December
1316
1341
1401
Workforce profile The social element of sustainable development concerns
of which: No. Full-time
1257
1216
1238
an organisation’s impacts on the social systems within
No. Part-time
25
118
133
No. Permanent contract
1215
1307
1372
No. Fixed term contract
42
34
29
which it operates. For our current and future employees this translates to an objective to ensure that no employee or applicant for employment receives less or more favourable treatment, whether through direct or indirect discrimination, on the grounds of race, gender, disability, sexual orientation, religious beliefs, creed, marital or parental status. Our recruitment and selection policy is therefore based on
Net employment creation: 60 Average turnover: 13.5% (cf 17.6% in 2002) 1
objective criteria consistent with applicants’ skills, abilities and potential. No applicants or employees will be unfairly
Diversity
discriminated against on grounds of criteria not relevant to
Women make up 37% of the workforce (36.5% in 2002)
the performance of the job. This policy is consistent with
and 29% of managers (26.8% in 2002). This compares
Veolia Environnement objectives to anticipate demographic
with averages of 49% and 47% from over 200 private and
challenges and improve competency management, and to
public enterprises who took part in a benchmarking
offer secure jobs.
exercise of gender equality in the workplace.11
Net employment creation across the Veolia Water UK
These improvements reflect the Group’s continued
group during the year amounted to 60, with average
emphasis on equal opportunities. Employees registered as
turnover 13.5%, down from 17.6% in 2002 1. In line with
disabled make up 0.36% (0.45% in 2002).
2
other industries turnover in customer services (call centres) is relatively high. Turnover of operational staff, on the other
A review of the equal opportunities and recruitment
hand, is currently low, which could potentially lead to a
policies is planned for 2004/5, as well as new policies on
lack of skills and experience in the businesses.
dignity at work, conduct at work, managing absence (see below) and public interest disclosure.
VE
G 10
1 2
28
11
Meets VE commitments to develop employees’ skills, to encourage them to be autonomous and to promote corporate innovation; and to respect fundamental rights (see px). Consistent with UK Government’s Quality of Life indicators for developing skills and rewarding work. Figures refer to the calendar year Water industry sustainability indicator on employee turnover. Water industry sustainability indicator on workforce diversity. The 2003 Benchmarking Report into gender equality in the workplace was organised by Opportunity Now, a Business in the Community campaign.
Age ranges Average age: 40 300
Male
Female
250
200
150
100
50
0
< 30 years
31-40 years
41-50 years
> 50
For the second year we recorded the percentage of the
Three Valleys introduced a management development
workforce from ethnic minorities: 5.5%. This compares
programme in 2003/4 entitled ‘Managing for Continued
with estimates that the ethnic minority population in the
Success’. A programme for potential team leaders entitled
South East region as a whole is 4%.
‘Learning to Manage’ is planned for 2004/5.
In anticipation of European legislation on age discrimination
Each water company continues to train its new entrants
and to ensure a balance of experience and career
on the company’s environmental policies and performance
progression, we measure the age profile of our workforce.
through sessions at the company induction programme. Folkestone & Dover staff regularly participate in
Training and career development
environmental awareness and safety training as part of the
Veolia Environnement has adopted a number of objectives
company’s maintenance of the environmental management
aimed at reducing staff turnover and absenteeism through
standard ISO14001. Half of Tendring Hundred’s employees
offering secure jobs, developing high quality social
received training during the year on safe and responsible
protection, and offering job mobility.
driving, including environmentally responsible driving.
In 200312, 1,121 employees (some employees were
Veolia Water Industrial Outsourcing’s management system
trained more than once) at Three Valleys and Veolia
includes a computer-based training package developed to
Water Partnership received training, of which 235 were
deliver employee awareness and understanding of
managers. The percentage of employees that attended a
environmental and safety issues.
training course during the year was 80% (81% women, 80% men). Total annual cost of training (excluding salaries)
Employee consultation
as a percentage of total gross annual salary was 0.7%.
Veolia Environnement has objectives to ensure employees have representation at all levels and to monitor and evaluate
VWP was awarded Investors in People status during the year, demonstrating the company’s commitment to investing in, developing and supporting staff to achieve both their personal and the business’ objectives.
employee satisfaction. The Veolia Water UK companies carried out an annual employee survey in 2003. Staff were invited to contribute ideas for the future of the company. As a result of the survey’s findings heads of departments will be
As part of its balanced scorecard approach to performance
working with their teams to understand fully and address
measurement (see page 18), Three Valleys Water is
the issues that directly affect them.
committed to becoming the employer of choice, ie a company where people want to work. It is seeking to achieve this by developing a working environment that
VWP launched a Performance Review system during the year for all staff. The system will be rolled out to Three Valleys staff in 2004/5.
attracts, retains and rewards talented people who live the company’s values. The personal development system introduced by Three Valleys in 2002 to provide a more structured approach to learning and career development was adopted by Folkestone & Dover, Tendring Hundred and VWP.
12
Figures refer to the 2003 calendar year Relates to water industry sustainability indicator on investment in staff. 29
Accident Incident Rate*
1
Annual number reportable incidents* per 1,000 employees 100
80
60 Note: Within the smaller water companies even one accident among a small number of employees will lead to an apparent large percentage increase. * ‘Reportable incidents’ are deaths, major injuries, accidents resulting in 3 days off work, diseases and dangerous occurrences [as defined by the Reportable Injuries, Diseases and Dangerous Occurrences Regulations 1995 (RIDDOR)].
40
20
0
99/00 00/01 01/02 02/03 03/04
99/00 00/01 01/02 02/03 03/04
99/00 00/01 01/02 02/03 03/04
Folkestone & Dover
Tendring Hundred
Three Valleys
Ethics
Three Valleys were awarded a Gold Award for the seventh
Veolia Environnement adopted a revised Ethics, Belief and
consecutive year by the Royal Society for the Prevention
Responsibility policy and programme during the year13.
of Accidents in recognition of the low accident rate.
Here in the UK this is being integrated into business
The company is on target to meet the industry-wide
practice. In 2004/5 it is intended, so far as possible, to
initiative ‘Clearwater 2010’ target to reduce accidents
apply the revised policy and programme to the supply
by 30% by 2010.
chain as well.
All Veolia Water UK companies met an objective for the year to carry out risk assessments of display screen
Whistleblowing In line with UK good practice Three Valleys Water and Veolia Water Partnership have put in place a whistleblowing procedure aimed at encouraging an environment where all employees are able to raise their concerns about acts of malpractice or misconduct within the companies, without fear of reprisal or victimisation.
Health & Safety
VE 1
Health and safety plays an important part in the everyday culture of our companies. A Veolia Environnement commitment to improve health and safety performance
equipment and workstations and organise training assessments where necessary.
Managing absence With the contracting out of operational services such as mains replacement etc over the last decade and the growth of call centres, the water industry has developed from a largely manual-based workforce to an office-based one. An office environment presents a different range of health issues, the most common being stress, which is linked to increased levels of staff absenteeism.
underpins a target for all Veolia Water UK companies to
Three Valleys addressed its increasing levels of staff
improve existing accident and incident rates. There were no
absenteeism 2
fatalities in our water companies in 2003/4. Work days lost
managers in absence management and making greater
due to work accidents amounted to 451, compared with
use of its Occupational Health Scheme. Line managers
596 in the previous year. An increase in accident rates at
also received stress awareness training. An objective for
Tendring Hundred triggered a review of all incidents. The
2004/5 is the introduction of a programme of initiatives to
company’s management is confident that the number
promote the awareness of Well Being topics, as having a
recorded in the year represented an occasional peak rather
healthy workforce who maintain a positive work/life
than being attributable to failing standards.
balance is a commitment for the company.
During the year Folkestone & Dover and Tendring Hundred
During the year Tendring Hundred introduced an
began to integrate their Health and Safety Management
Occupational Health Scheme under which all staff received
Systems into their respective Integrated Management
health surveillance checks. The company plans to install a
Systems. Folkestone & Dover took part once again in
fitness room for all staff in 2004/5.
VE 2
during the year by training line
European Health & Safety week providing workshops on a variety of related subjects for all staff. 13
VE 1 VE 2
1
30
2
Available at www.d.durable.veoliaenvironment.com Relates to VE commitment to improve personal health and safety protection and VW objective to guarantee conditions of safety in the workplace. Relates to Veolia Environnement target to reduce absenteeism by 20% by 2005 Water industry sustainability indicator on occupational health and safety. Water industry sustainability indicator on the working environment.
Work/life balance Three Valleys Water and Veolia Water Partnership are committed to supporting employees who are working parents and understand the difficulties that can sometimes be associated with this. To support working parents in managing their working hours, the company has introduced a Flexible Working for Parents Policy which enables parents to be able to apply to work flexibly. New flexible working policies are planned for 2004/5. The companies are also committed to reducing overtime.
Pension schemes The Veolia Water businesses are committed to offering, and encouraging employees to participate in, a good quality occupational pension scheme. In addition, the dependants of all employees, whether the latter have elected to join the pension scheme or not, receive a lump sum in the event of that employeeâ&#x20AC;&#x2122;s death while in company service. Veolia Water recognises the need for employees to make adequate provision for their retirement - as recently highlighted in the Turner Report. The water companies have provided occupational pensions for many decades. As a result, more than a generation of our workers have had financial provision for a more comfortable retirement. A review of the pension options open to new employees will be carried out in 2004/5.
31
In the Community
Our goal … to work with and support local communities
Three Valleys also provided funding for a number of charity
and charities towards improving the quality of life VE G.
and community acivities during the year, including the British Disabled Water Ski Association, the Education
Working with the community
Engineering Scheme, and the Rickmansworth Canal
The companies give extensive support to the communities
Environment and Community Festival.
in which they operate. The company worked with the police, local authorities, Three Valleys continued its support of Groundwork
crime prevention groups and the local media to raise
Hertfordshire, hosting once again its Annual Review to a
awareness of potential bogus callers.
gathering of the Hertfordshire community. Groundwork Hertfordshire is one of 50 Trusts in England, Wales and
Folkestone & Dover worked with the local community
Northern Ireland, each working with their partners in
during the year to promote environmental education. The
deprived areas to improve the quality of the local
company trained 53 local plumbers to improve skills and
environment, the lives of local people and the profitability
ensure compliance with water regulations.
of local businesses.
Three Valleys’ Environmental Education Centre During the year the purpose-built Environmental Education Centre at Clay Lane, Bushey, was visited by over 6,000 schoolchildren. The education programme links all activities to the National Curriculum and includes visits to the on-site treatment works, the promotion of water efficiency messages and utilizes the natural habitats on the site. The Centre’s extensive outreach programme continued to expand with members of the educational team visiting more than 100 schools to increase awareness of water efficiency, to teach children in a fun way to use water wisely, and to make water issues relate more closely to National Curriculum teaching. Teachers from another 40 schools received training at the Centre. In this way the outreach programme reached more than 15,000 schoolchildren and teachers. The Centre received two Green Apple environmental awards during the year: one for work on promoting water efficiency in the garden, and the second for a recycling project for visiting schools. It is also a finalist in the 2004/05 Water Efficiency awards. Activities have featured in the local press, a national magazine and regional television. Since opening in September 1998, more than 85,000 young people have now either visited the Education Centre or have used its resources through the National Curriculum. The Centre achieved Eco Centre status in 2002, an education award for environmentally friendly organisations. VE
Relates to a VE commitment to participate in the social development of communities where our facilities are based
G The Veolia Water companies’ social community initiatives are consistent with UK Government’s Quality of life indicators for building sustainable 32
communities.
Tendring Hundred’s community programme focussed on
Folkestone & Dover’s fundraising events for WaterAid
upgrading the Environment Centre to incorporate a ‘Bug
included a sponsored cricket tournament, and “Give an
Room’, continuing to run the Maths Trail for schoolchildren
Hour” where staff donated an hour’s salary. Tendring
at Horsley Cross pumping station, and sponsorship of
Hundred runs an annual golf day to raise money for
local cultural activities.
WaterAid.
Employee volunteering
Veolia Water UK sponsored the Franco-British Council
Veolia Water UK companies actively encourage employees
School Partnership Prize 2003. The prize enabled French
to become involved in local community initiatives, in the
and British primary school pupils to work together on
belief that there are benefits for both the community and
environmental issues to try to identify solutions.
employees. In this way they contribute to a Veolia Environnement objective to foster social cohesion and sponsor good causes.
Schools programme Veolia Water UK companies have an ongoing target to develop programmes to support education. During the
All three water companies are long-standing supporters
year Veolia Water UK plc and Three Valleys took part for
of the charity WaterAid, which funds projects in 15 of the
the second year in a scheme aimed at raising levels of
poorest countries of the world to provide clean drinking
achievement in schools serving the most disadvantaged
water, sanitation and hygiene education.
pupils by mobilising targeted support from London employers. VW UK plc employees helped children with
At Three Valleys fundraising activities for the charity are coordinated by a WaterAid Committee. The company again matched the amount raised by employees on sponsored monthly dress down days. Other fundraising events included the annual Rickmansworth Road Run organised by Three Valleys Water staff, now in its 20th year, and the Samaritans Purse Christmas Shoebox Appeal.
their reading and maths at a local primary school situated on the edge of Westminster’s largest council estate. The school has a high proportion of pupils for whom English is an additional language, putting them at risk of social exclusion. Feedback from the school shows measurable progress in the children’s abilities and behaviour. Employees confirm they have learnt new skills, have a
Three Valleys’ staff gave up their free time to man the
better understanding of the local community and its needs
phones for the BBC’s 2003 Children In Need appeal.
and experience personal satisfaction.
Three Valleys Water employee, Derrick Williams, continued
Charitable donations
to run KitAid, a charity he set up to send recycled football
Charitable donations made by our companies in 200314
kits to children and adults across Africa, India and the
totalled £34,900, together with £79,000 of sponsorship .
developing world. Derrick was awarded an MBE during
Three Valleys and Folkestone & Dover match sums raised
the year in recognition of his community work.
for charity by employees.
14
For calendar year ended 31 December 2002 Water industry sustainability indicator on investment in communities 33
In the Environment
Our goal…to seek opportunities to reduce our
improving each year. For the sixth year we present a
consumption of non-renewable natural resources
summary of the main resources used, the key discharges,
by using renewable alternatives where possible,
waste products and releases to the environment for each
and by optimising efficiency of useG
cubic metre of water we deliver to our customers. Whilst
VE
.
this table is not a complete picture of the resources used, This goal reflects Veolia Environnement’s primary
we believe it indicates the principal impacts.
commitment to protect the environment, conserve resources and reduce pollution (see p.x) and a target
The following sections examine in more detail action being
to increase the percentage of overall production
taken to reduce environmental impact under each of the
accounted for by renewable energies.
key components.
The Environment Agency issued no caution letters or water
Catchment Protection
pollution enforcement notices to Veolia Water companies
The water resources balance is not just threatened by
during the year. There were no water pollution prosecutions.
rising demand, droughts and climate change. If raw waters
Main Environmental Costs of Water Our environmental data measurement systems are maturing and the confidence we can place in the data is
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
The Principle 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
2002-03
2003-04
kWh of energy (electricity, gas & heating oil) used
0.77
0.72
0.78
0.77
0.78
0.82
Cubic metres of water lost from our pipes in distribution
0.13
0.12
0.11
0.12
0.11
0.11
Cubic metres of water lost from customers’ pipes
0.07
0.06
0.06
0.06
0.06
0.06
kg of treatment wastes, excavates & aggregates generated
1.01
0.59
0.33
0.56
0.6
0.85
- (of which) kg landfilled
0.8
0.46
0.25
0.39
0.35
0.43
- (of which) kg recycled
0.21
0.13
0.09
0.18
0.26
0.42
kg of carbon dioxide emitted into the air
0.35
0.32
0.35
0.35
0.34
0.37
litres of fuel used in fleet vehicles
0.005
0.004
0.003
0.004
0.003
0.003
G Consistent with the UK Government’s Quality of Life indicator on managing the environment and resources. VE
34
Meets a VE commitment to protect the environment, conserve resources and reduce pollution.
Water taken from the environment Water abstracted: (annual average Meaglitres per day) (incl. imports) 60
Water abstracted: the percentage of water abstracted (incl. imports) which was put into supply
1000
100
800
80
600
60
400
40
200
20
50 40 30 20 10 0
0
0 00/01 01/02 02/03 03/04
00/01 01/02 02/03 03/04
00/01 01/02 02/03 03/04
00/01 01/02 02/03 03/04
00/01 01/02 02/03 03/04
00/01 01/02 02/03 03/04
Folkestone & Dover
Tendring Hundred
Three Valley Water
Folkestone & Dover
Tendring Hundred
Three Valley Water
management. Our companies do not act alone in this.
Misbourne. The company contributed to sustainability
The Environment Agency has a role in monitoring and
studies of the rivers Mimram and Gade carried out by
protecting the catchment and prosecuting those
the Environment Agency.
responsible for pollution offences. For several years Folkestone & Dover has been in active Three Valleysâ&#x20AC;&#x2122; WaterWatch project continued through
discussion with as well as supporting projects by the
the year. This involves maintaining a detailed catchment
Environment Agency regarding new and amended
survey of pollution risk for source sites, with the aim
abstraction licences in the Dover area. These will help
of reducing risks to groundwater in the long term.
alleviate low flows in the River Dour.
Veolia Water Partnership continued to manage extensive
Veolia Water Partnership has maintained its ongoing
catchment protection programmes on behalf of the water
dialogue with the Environment Agency. This year Veolia
companies. Three Valleys also actively supported research
Water Partnership provided information on groundwater
programmes into groundwater quality trends. See p. 24
levels, operation of low flow schemes, water quality and
for a summary on research and development.
volumes abstracted. It also helped the Environment Agency to develop water resources models.
While single point pollution is closely monitored by regulators, an important issue for future catchment
Water taken from the environment
protection is the risk of diffuse pollution from a number
In line with a Veolia Environnement objective to control
of sources such as farmland fertilisers, nitrates and
industrial water consumption and for a fuller picture of total
phosphates (see p. 23). We endeavour to control this
water losses (leakage figures are based on water that has
through education, managing our landholdings efficiently
been treated and put into supply), the companies again
and involvement in industry-wide initiatives.
recorded the amount of water taken from the environment
Action for Low Flow Rivers Societyâ&#x20AC;&#x2122;s demand for water has to be met efficiently and economically; this is the function of the water companies,
relative to water put into supply. At Three Valleys water lost during transport to and at treatment works amounted to 2% of the total abstracted, representing an increase of 1.4% on last year.
and they have statutory duties to that effect. This must be done at the same time as ensuring that there is enough
The Environment Agency issued no caution letters or
water in the environment to maintain good quality rivers,
water pollution enforcement notices to Veolia Water
lakes and wetlands. Tendring Hundred continued to
companies during the year. There were no water
monitor flow levels in the River Brett. Three Valleys
pollution prosecutions.
continued to operate schemes on a number of rivers in their area at risk from low flow and over-abstraction including the Upper Pant and Hiz Rivers. Licence changes were agreed with the Environment Agency for the River
Water industry sustainability indicator: river water quality. 35
Carbon dioxide emissions
Energy consumption in water supply
Estimated emissions from energy consumption in water supply, offices kilowatt hours/megalitre (net of imports)/metre water pumped and transport in Veolia Water UK Group (Ă000 tonne s CO2 per annum) 160
8 7
128 6 5
96
4 64
3 2
32
1 0
0 95/96 96/97 97/98 98/99 99/00 00/01 01/02 02/03 03/04
00/01 01/02 02/03 03/04
00/01 01/02 02/03 03/04
00/01 01/02 02/03 03/04
Folkestone & Dover
Tendring Hundred
Three Valleys
In our offices
During the year the water companies were successful
We have an ongoing target to reduce water consumption
in meeting a target to secure all their electricity from
at our offices. Overall, the group companies have achieved
renewable sources which represented a 2% saving on
a level of 36 litres per employee which represents a
their Climate Change Levy costs. In 2005 we will seek to
reduction of 16% on 43 litres achieved in 1999/2000.
understand what impact this has on our indirect carrbon dioxide emissions profile.
All three companies produce an annual integrated Environment and Conservation, Access and Recreation
Energy consumption per unit of water put into supply
report, which is available on their web sites (see back
was higher than last year at Folkestone & Dover and
page).
Three Valleys.
Energy consumption
Energy consumption per unit of water put into supply was
Greenhouse gases The annual carbon dioxide emissions associated with all our energy requirements, for water supply, offices and transport, were 110,500 tonnes, which is a 26% fall, or 36,200 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 network.G
Energy consumption in the supply of water
higher than last year for Folkestone & Dover and Three Valleys. The increases can be attributed firstly to the use of different water sources (water lying deeper in an aquifer requires more energy to pump it to the surface), and secondly to more membrane plants, as a result of the need to treat to ever higher standards. 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 by the companies.
Pumping water from underground and surface sources,
Three Valleys has a phased inspection and replacement
treating it and distributing it around the network uses large
programme for pump motors and installs variable speed
amounts of electricity, which is largely generated from
pumps, where possible, to increase efficiency. The
fossil fuels. Energy represents therefore a major cost to
company has developed a computer management system
business (coming second only to staff costs) as well as to
to help take advantage of more favourable daily tariffs.
the environment. It is in the companiesâ&#x20AC;&#x2122; interest to make every effort to economise energy use, especially as they
We also measure our consumption in offices and seek
are subject to the full rigour of the Climate Change Levy.
ways to reduce energy use where cost-effective to do so.
Much as we would wish to reduce energy usage, however,
During the year Three Valleys assembled a Green Team
and despite our best efforts to use it efficiently, usage is
from among employees to consider and implement
dependent on climatic conditions, customer demand and
practical actions to reduce energy usage (in addition to
operational requirements, including regulatory
water and waste) (see below).
requirements. For these reasons we have to date not been able to define a realistic quantitative target for reduction of carbon dioxide emissions.
G Relates to the UK Govermentâ&#x20AC;&#x2122;s Quality of Life indicator for climate change and energy supply
36
Water industry sustainability indicators on total energy use and percentage from renewable sources
Fuel Consumption Annual consumption (litres) by fleet vehicles per property connected 1.2 1.0 0.8 0.6 0.4 0.2 0.0
95/96 96/97 97/98 98/99 99/00 00/01 01/02 02/03 03/04
9 95/96 96/97 97/98 98/99 99/00 00/01 01/02 02/03 03/04
95/96 96/97 97/98 98/99 99/00 00/01 01/02 02/03 03/04
Folkestone & Dover
Tendring Hundred
Three Valleys
Energy consumption in office premises 2003/2004 Kilowatt-Hours/m2
Performance Assessment15
Folkestone & Dover, Folkestone
Gas & Oil Electricity
110
Lower than “typical”
72
Lower than “typical”
Tendring Hundred,
Gas & Oil Electricity
117
Lower than “typical”
117
Higher than “typical”
Veolia Water Partnership, Gas & Oil Watford Electricity*
29
Lower than “typical”
–
–
Three Valleys Water, Hatfield
Gas & Oil Electricity
154
Lower than “typical”
264
Higher than “typical”
Veolia Water UK, London SW1
Gas & Oil Electricity
36
Lower than “typical”
317
Higher than “typical”
Manningtree
✓ ✓ ✓ ✗ ✓ –
✓ ✗ ✓ ✗
*
It is not possible to measure electricity consumption at Veolia Water Partnership offices because they are part of 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.
Transport and Travel
Following on its policy decision in 2001 to replace all vehicles
Fuel Consumption
on renewal with those powered by LPG, Tendring Hundred
Veolia Environnement has an objective to promote the use of cleaner fuels and vehicles. Three Valleys can demonstrate a general downward trend in fuel consumption per property connected since 1995/96, although this is primarily due to transfer of work to contractors. Folkestone & Dover reduced the number of litres per property by 14% during the year. This was achieved by the use of route planning technology in a number of its vehicles and raising staff awareness of the need to reduce fuel use.
now has 10 vehicles running on dual fuel. During the year thirty members of staff received driver training which included both environmental and health and safety issues. Fuel continues to be substituted away from petrol and towards ultra-low sulphur diesel and LPG (liquefied petroleum gas) which produces between 30 and 90% less carbon monoxide and 50% fewer pollutants than petrol.
Travelling to work… All the water companies and Veolia Water Partnership have introduced tele- and videoconferencing in order to reduce
Three Valleys has a programme of active maintenance and
the amount of time and energy spent in travelling to inter-
routine replacement of fleet vehicles with vehicles which
company meetings. Folkestone & Dover estimate this
meet the latest emission levels.
15
Energy consumption performance assessments are based on yardsticks prepared by the Government. See Glossary for explanation 37
Type of fuel used Annual consumption by fleet vehicles (’000 litres) The graph shows fuel use by the three operating companies Petrol
Diesel
LPG
1500
1200
900
600
300
0 95/96 96/97 97/98 98/99 99/00 00/01 01/02 02/03 03/04
saved 6,000 km travel in the year, compared with 10,300
Waste production and disposal in water treatment
for Three Valleys and 3,000 for Tendring Hundred 1. Car
Water treatment wastes are variable depending
sharing at Folkestone & Dover saved a further 9,200 km.
predominantly on the quality of raw waters and treatment
Waste Aggregate use and recycling in streetworks
processes that are used. They may contain river solids, filtrates or sludges from treatment. Of the waste disposed of in the year, 99.5% (14,460 tonnes) was re-used as a
We are able to monitor the use of aggregates by
soil conditioner on agricultural land, with the remainder
measuring our own purchases and increasingly by
being disposed of to landfill. VE 3
contractually obliging our streetworks contractors to record their use, re-cycling and disposal of waste. In 2003-
Office waste
04, 37% or 59,000 tonnes16 of excavated material were
Across the group we used 30 tonnes of photocopying
recycled by our companies and contractors rather than
paper in main offices, and 199 tonnes of all other paper.
going to landfill 2 G, compared to 35,000 tonnes last year.
This was mainly used for billing and marketing purposes.
All Veolia Water UK companies have an ongoing target to
Of this amount 42% came from a sustainable source.
reduce waste going to landfill.
Three Valleys and VWP formed a ‘Green Team’ in 2003,
VWP’s new contracts to maintain the distribution network
charged with reducing the amount of waste generated by
include provisions to encourage the use of trenchless
the company and looking at ways of changing behaviour
technology and the reuse of excavated material.
to minimise the company’s impact on the environment. Actions taken during the year include plastic drink cup and
During the year VWP, on behalf of Three Valleys, continued
aluminium can recycling, installing showers for employees
its programme of rehabilitating water mains. The network
cycling to work, paper, toner cartridge and CD recycling.
rehabilitation team seeks to minimize the disturbance and
The CDs are used in the production of alarm boxes and
risk associated with streetworks by consulting the
motor vehicle reflectors.
highways authorities, local authorities, residents and business associations, etc to integrate streetworks needs
Folkestone & Dover have adopted a purchasing policy that
with those of other utilities, residents and local businesses.
maximises the purchase of materials that can be recycled.
A multi-faceted communications campaign was deployed
The company recycles stationery, plastic piping, vending
in the Epping area during year for the £19 million Water
machine cups, mobile phones and printer cartridges.
Quality Improvement Programme (Rehabilitation). This resulted in positive comments from local politicians about the approach used.
1
16
2
G
VE
38
3
Water industry sustainability indicator on total energy use and percentage from renewable sources. These figures are to be treated with caution as they are based on a limited data set. Water industry sustainability indicator on management of materials from excavations (diversion from landfill) 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 improving resource efficiency. Meets a VE objective to increase the amount of waste recycled to agricultural use. Water industry sustainability indicators on sludge management (diversion from landfill).
Generation and consumption of aggregate material in streetworks Annual generation + consumption (’000 tonnes) Excavated & landfilled
Excavated & reused
Infill material purchased
15000
25000
250000
12000
20000
200000
9000
15000
150000
6000
10000
3000
5000
0
0 99/00
00/01 01/02
02/03
03/04
99/00 00/01 01/02 02/03 03/04
Folkestone & Dover
Note: Waste figures include some estimation. * Confidence in Three Valleys 2003/4 waste figures is 100000 relatively low, as they have been extrapolated from a 50000 small sample. The incomplete data set was caused by a change in contractors during 0 the year. 99/00 00/01 01/02 02/03 03/04
Tendring Hundred
Three Valleys
Tendring Hundred recycles printer cartridges. All paper
to curb local nuisance by enhancing quality of life
purchased for office use comes from a sustainable source.
and ensuring installations are integrated within the
During the year the company purchased a photocopier
local landscape.
with double-sided print capability, bringing them into line
Biodiversity
with other Group companies.
Our policy is to give particular priority to projects and
Respecting our surroundings
VE
activities that foster species and habitats which are the
Major capital schemes are planned and managed on
subject of Biodiversity Action Plans (see glossary) and
behalf of the four water companies by Veolia Water
are found on our own and adjacent landG. The tables
Partnership. Each scheme is carefully designed and
show a selection of species and habitats that we are
planned from the outset, with an objective of minimising
helping in this way.
disturbance to local residents and to the environment. This is consistent with Veolia Environnement’s objective
Case Studies Chertsey Filtration Plant Three Valleys’ new state-of-the-art water treatment membrane filtration plant in Chertsey, Surrey, was completed during the year. All work was subject to an environmental impact assessment, as a result of which the new plant was built within a brownfield area previously used for a settlement tank. Old materials from the tank were crushed and recycled as hardcore for the base of the new building. Dungeness Nature Reserve Folkestone & Dover received a Green Apple award for the sensitive routeing of pipelines through the Dungeness Nature Reserve, with its unique shingle headland and biodiversity. The company ensured that work on the 5 km of pipelines to take salty wastewater out to the sea at Dungeness A Power Station had minimal impact on the surrounding Reserve with its rich, internationally important habitats.
VE
G
Consistent with Veolia Environnement’s objective to curb local nuisance by enhancing quality of life and ensuring installations are integrated within the local landscape. Relates to the UK Government’s Quality of Life indicator for landscape and wildlife.
39
Use and disposal of water treatment wastes Use and disposal of water treatment wastes annual generation disposal (dry tonnes) Landfilled
Used as soli conditioner
0.010
200
15000
0.008
12000
150 0.006
9000 100
0.004
6000 50
0.002
3000
0.000
0 00/01
01/02
02/03
03/04
Note : Waste figures include some estimation.
0 00/01 01/02
02/03
03/04
00/01 01/02
Tendring Hundred
Folkestone & Dover
02/03
03/04
Three Valleys
Prority Species Folkestone & Dover
Dormouse, silver spotted skipper, Chalkhill Blue, Adonis 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, grasshoper warbler, water vole, otter, pipistrelle bat, bittern, reed bunting, great crested newt, white clawed crayfish, black throated grebe
Prority Habitats Folkestone & Dover
Chalk grassland, woodlands, Dungeness shingle.
Three Valleys
Chalk rivers, grazing marsh, fen, lowland calcareous grassland, lowland dry acidic grassland, lowland heathfield, reedbeds.
Three Valleys and VWP developed a Biodiversity Strategy
Folkestone & Dover continued to be a partner in the White
during the year. A two-year programme of site surveys will
Cliffs Countryside Project which works to enhance and
start in 2005.
protect the countryside in south east Kent. Coppicing of the woodland at Lye Oak, a SSSI site, was carried out
Management of our landholdings
during the year, with the extra light benefiting the woodâ&#x20AC;&#x2122;s
The companies have for the fourth year recorded the
rare animal and plant life. In addition, scrub was cleared
amount of land owned which has a statutory designation,
for rides. Farms owned by Folkestone & Dover in the
eg SSSI, SPA, SAC, including ancient woodlands and
Alkham Valley have been placed under countryside
sites of high wildlife value. They have also recorded the
stewardship to help improve public access through the
percentage of this land which is subject to a management
valley by linking footpaths, bridleways and byways.
plan. This is to ensure efficient management of our At Tendring Hundred the boardwalk nature trail around
landholdings.
Manningtree pond was refurbished, and overhanging trees
Land owned under a statuory designation (km2) (% of all landholdings) Folkestone & Dover Tendring Hundred
Percentage with management plan
coppiced. At the Great Bentley site the ditch system was cleaned sympathetically to assist the Water Vole. Similarly, grassland at Elmstead Market pumping station is not cut until the end of the skylarkâ&#x20AC;&#x2122;s nesting season. The grass at Frinton on Sea pumping station was cut to improve the
4 (50%)
99%
0.05 (6%)
0%
survival of the green winged orchid. A long-standing partnership between Three Valleys Water, Friends of Stockers Lake and Herts and Middlesex Wildlife
Three Valleys
40
2 (35%)
92%
Trust continues to build on the success in the British Trust
Case study Barn owls Barn owls prefer to build their nests in man-made structure like rural barns and churches, but in recent times changing agricultural practices have reduced the number of suitable buildings and habitats for the small mammals they survive on. As part of Three Valleysâ&#x20AC;&#x2122; commitment to biodiversity, the company is working with an international ornithological expert to install barn owl nesting boxes on a number of sites. The companyâ&#x20AC;&#x2122;s activities played an important part in bringing this beautiful bird back to the suburbs.
for Ornithology Challenge in 2002. An excellent example of business and the community working together, the partnership has succeeded in providing an outstanding conservation site at Stockers Lake to help maintain the wetland bird population.
Further information Do you want more information about our business and biodiversity? The Conservation Access and Recreation reports prepared by each water company are available. These describe policies, plans and performance relating to conservation, access and recreation within their supply areas. Each of the three water companies produces an annual corporate responsibility report. These give more detail on matters discussed in this Group report. Please see page 51 for details.
41
Our Business: completed, current and new targets Date set
To be met during report year
02/03 To reduce total leakage (Ml/day) to
Folkestone Tendring & Dover Hundred Water Water
Three Veolia Valleys Water Water Partnership
Veolia Water UK
Veolia Water Industrial Outsourcing
To be met by
8.5
5.1
140
03/04
•
•
•
03/04
02/03 To retain 100% of principal customers
•
Ongoing
02/03 To introduce a debt management scheme
•
03/04
Ongoing
02/03
To prepare Water Resource Plans and submit to the Environment Agency & Ofwat
Ongoing targets:
promote metering and develop 95/96 To appropriate socially-responsible tariffs
•
•
•
To give customers more information about 97/98 the environmental implications of their water supply service.
•
•
•
•
To ensure consistent and comprehensive 00/01 inclusion of environmental and social criteria into purchasing procedures.
•
•
•
•
•
Ongoing
To achieve or progress development of the 00/01 Environmental Management System to align with ISO 94001.
•
•
•
•
•
Ongoing
Ongoing
00/01
To raise general awareness of corporate responsibility among all staff and give specific training for senior managers on their reponsibilities.
•
•
•
•
•
•
Ongoing
00/01
To carry out an annual audit of corporate responsibility performance
•
•
•
•
•
•
Ongoing
01/02
To carry out Duty of Care audits on suppliers.
•
Ongoing
•
To improve or maintain our Ofwat Overall 02/03 Performance Assessment ranking to upper half of industry 1
•
•
•
Ongoing
02/03 To comply fully with abstraction licences 2
•
•
•
Ongoing
•
•
•
Ongoing
•
Ongoing
02/03
To maintain a network efficiency of over 80%17
02/03
To ensure security of water supplies in all resource zones
• by 2007/8
New targets:
03/04 To meet total leakage targets (Ml/day) 03/04
To prepare draft business plans and submit to Ofwat & the Environment Agency
03/04
To carry out audits of suppliers for commitment to sustainable development
8.4
5.1
150
04/05
•
•
•
04/05
•
04/05
•
04/05
03/04 To promote ‘green’ purchasing (VE target) 03/04
To participate in the 2004 Business in the Community Corporate Responsibility Index
03/04
To integrate the Health & Safety system into the Integrated Management System
1 2
17
42
• •
Relates to water industry sustainability indicator for standards of service Water industry sustainability indicator on compliant management of water resources Veolia Environment target
04/05 04/05
Progress
In the Workplace: completed, current and new targets Date set
To be met during report year
02/03
To survey company buildings to identify asbestos containing materials.
Folkestone Tendring & Dover Hundred Water Water
To audit compliance with company health & safety procedures.
02/03 To address staff absenteeism levels. 02/03
To formalise and introduce an approach to occupational health.
02/03
Veolia Water Industrial Outsourcing
• •
•
03/04
•
03/04
•
03/04
•
To introduce management development programmes.
02/03 To introduce a performance review system.
•
02/03 To review cost and quality of training provision.
Progress
03/04
•
03/04
• •
To be met by
03/04
02/03 To seek Investors in People accreditation. To provide staff with a Personal 02/03 Development Plan.
Veolia Water UK
•
02/03 To introduce ‘Near Miss Reporting’. 02/03
Three Veolia Valleys Water Water Partnership
•
03/04
•
•
•
•
03/04
•
•
03/04
•
•
03/04
Ongoing targets:
96/7 To provide environmental training.
•
•
•
•
•
•
Ongoing
To give all drivers of fleet vehicles and all company car users briefing on responsible 96/7 driving and a proportion of these defensive driving training.
•
•
•
•
•
•
00/01
•
•
•
•
•
•
Ongoing
•
•
00/01 To improve existing accident and incident rates. 00/01
To improve the rate of assessment and treatment of employee medical cases.
Ongoing
To make more effective use of IT when 00/01 reporting environmental and social performance and targets.
•
•
•
•
•
•
Ongoing
To develop and implement a training 00/01 programme to support the supply chain management policy and procedures.
•
•
•
•
•
•
Ongoing
To carry out risk assessment of display screen 00/01 equipment and workstations and organise training assessments where necessary.
•
•
•
•
•
•
Ongoing
03/04 To communicate the revised VE Ethics policy
•
•
•
•
•
•
04/05
To review the equal opportunities and 03/04 recruitment policies
•
•
•
•
•
•
04/05
To introduce policies on dignity at work, 03/04 conduct at work, managing absence and public interest disclosure.
•
•
•
•
•
•
04/05
•
•
04/05
•
•
04/05
•
•
•
•
•
•
New targets:
03/04
To introduce a programme to promote the awareness of Well Being topics
03/04 To introduce flexible working policies 03/04
To review the pension options open to new employees
•
•
03/04 To provide training for potential team leaders
•
04/05 04/05
To reduce the number of days lost through 03/04 work place accidents by 50% against the previous year
•
Ongoing
raise general awareness of health & safety 03/04 To responsibilities for line managers
•
04/05
03/04 To install a fitness room for use by all staff
•
04/05
43
In the Environment: completed, current and new targets Date set
To be met during report year
02/03
To address high levels of energy consumption at Iver treatment works
02/03
To evaluate the effectiveness of water sludge disposal to agricultural land
02/03
To reduce average mileage by 5% on 2002 figures
Folkestone Tendring & Dover Hundred Water Water
Three Veolia Valleys Water Water Partnership
Veolia Water UK
Veolia Water Industrial Outsourcing
03/04
•
03/04
• •
To identify a Champion to establish a baseline 02/03 for paper collection and recycling and set a target for reduction in next regulatory year
•
02/03 To reduce paper usage on 02/03 levels
•
•
•
To be met by
03/04
03/04
•
03/04
02/03 To recycle 50% of plastic cups
•
02/03
To reduce office water consumption by 5% of 2002/03 levels
•
02/03
To reduce office complex electricity use and heating costs on 2002/03 levels
•
02/03
To replace sulphur dioxide with sodium bisulphite at Iver treatment works
02/03
To explore the voluntary control of pesticide use by tenant farmers in water catchments
02/03
To survey 5 company-owned sites for biodiversity value
•
•
•
•
•
03/04 03/04 03/04
•
03/04
• •
•
03/04
Ongoing targets:
95/6
To include environmental information in site environmental profiles as they are written
•
Ongoing
97/8
To incorporate environmental and social assessments into capital projects
•
Ongoing
97/8
To address energy consumption in premises where current rates are higher than typical
97/8
To achieve a reduction in waste going to landfill
•
•
•
•
97/8
To identify habitats and species on company-owned land that occur on national and local lists and seek to enhance and maintain their diversity
•
•
•
•
Ongoing
•
•
•
•
02/03
01/02 To pilot a biodiversity index
•
98/9
To complete site environmental profiles for all treatment works
•
00/01
To develop an Intranet based library of good practice
•
01/02
To replace chlorine gas with sodium hypochlorite at Iver treatment works
01/02
To assess potential benefits of tele- and videoconferencing
01/02
To ensure that, where possible, all fleet vehicles are converted to LPG
Ongoing
•
Ongoing
04/05 •
•
•
Ongoing
•
02/03
• •
•
•
•
Ongoing
•
06/07
•
00/01 To undertake an energy assessment
•
•
•
02/03 To maintain improvement in fuel consumption
•
•
•
02/03
•
To raise employee awareness of energy use in the office
•
Ongoing
•
Ongoing
•
•
•
Ongoing
02/03 To source energy from renewable sources
•
•
•
•
•
•
Ongoing
02/03 To recycle old CDs
•
•
•
•
•
•
Ongoing
•
•
•
•
•
•
•
•
01/02
To consider most efficient water appliances when replacing old or installing new fittings
Ongoing
New targets:
02/03 44
To continue to reduce business travel by utilising tele- and videoconferencing facilities
•
•
Ongoing
Progress
In the Community: completed, current and new targets Date set
Ongoing targets:
Folkestone Tendring Three Veolia Veolia & Dover Hundred Valleys Water Water Water Water Water Partnership UK
Veolia Water To be Progress Industrial met by Outsourcing
95/6
To engage in a dialogue with customers, employees, suppliers and others about our products, services and performance
•
•
•
•
•
•
ongoing
01/02
To develop and pilot new programmes to support education
•
•
•
•
•
•
02/03
45
Verification Statement
Introduction
Veolia Water UK has a strong focus on improving its
Det Norkse Veritas (DNV) has been engaged by Veolia
Health and Safety performance, particularly accident and
Water UK for the purpose of providing assurance on the
incident rates. DNV suggests that both quality assurance
environmental and social indicators prepared by Veolia
and further specific Health and Safety reporting indicators
Water UK covering the period April 2003 - March 2004
would be beneficial.
in its Corporate Responsibility Report. DNV’s terms of reference were to assess the appropriateness and accuracy of the data, claims and commitments made by Veolia Water UK against each of the indicators and to ensure that the information provided is representative.
DNV notes that Veolia Water UK continues to positively engage with its key stakeholder groups. DNV considers that this could be further enhanced by better defining how stakeholder dialogue is built into the decision making process.
Process
Company-wide environmental training and awareness
This is the fourth year that DNV has verified Veolia Water
initiatives are already in place across Veolia Water UK.
UK’s environmental and social indicators on a site-level
Through greater coordination via sites’ ‘environmental
basis. The verification process involved:
champions’ this can further enhance its operational
1. Conducting visits to the Veolia Water Partnership and
performance and mitigate its environmental impacts.
to each of the three water businesses presented in
The need for Corporate Responsibility training and
the report.
awareness initiatives has been recognised. This training
2. Reviewing each site’s environmental and social indicators and the accurate transfer of this data to the
should include all employees and awareness initiatives extended to all key stakeholders.
Veolia Water Corporate Responsibility Report 2003-04.
Conclusion Findings
Overall, it is DNV’s opinion that the information reported
DNV commends Veolia Water UK for the progress
against each of the environmental and social indicators at
it continues to make with respect to accuracy and
site-level provides a credible and fair reflection of the way
completeness of data reported and the robustness of
Veolia Water UK has addressed and managed these
reporting mechanisms used against each of the indicators.
indicators during 2003-04.
To build on Veolia Water UK’s development of good practice, a number of recommendations to strengthen its environmental and social indicators as well as the reporting process are suggested:
46
Dr. Eric Pape Vice President DNV Consulting, London. January 2005
Glossary
Abstraction licence
Bromate
The authorisation granted by the Environment Agency
Bromate is a chemical that is used in manufacturing, as an
to allow the removal of water from a source of supply
industrial cleaning agent and in some products, such as hair
Aquifer A porous water-bearing underground formation of permeable rock, sand or gravel capable of yielding significant quantities of water Business in the Community Business in the Community is a business-led charity comprising over 700 companies. Its purpose is to inspire,
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. 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)
challenge, engage and support business in continually
Catchment protection activities
improving its positive impact on society. In 2002 it developed
Actions to reduce the risk that water from a catchment will be
the Corporate Responsibility Index, a voluntary benchmark of
degraded (in quality or quantity) as a result of land-use change,
responsible business practice
pollution, etc.
Business in the Environment
Cryptosporidium
An organisation set up in 1989 as an initiative of Business in
A microscopic protozoan parasite which can infect humans
the Community. It promotes practical steps that will support
and may cause gastro-enteritis
the UK’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, which gauges how businesses manage environmental issues
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
Biodiversity
water on a measured basis (“metering”), encouraging water-
The variety of life forms we see around us.
efficient gardening techniques and promoting water recycling
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 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
Distribution input Average daily flow from water treatment works into the water company’s distribution system. Also known as “water put into supply” Distribution losses 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
47
Gauging energy performance
To evaluate the energy consumption performance of a building we have used the performance assessments contained in Energy Consumption Guide 19: Energy Use in Offices, last updated in 2000. This method provides two benchmarks - “typical” and “good practice” - against which we can compare the performance of each of our buildings (see p.37).
for operational uses such as flushing of mains following
amount of electricity used by a typical single bar electric
repair work)
fire in one hour
Drinking Water Inspectorate (DWI)
Kilowatt-hours/megalitre (net of imports)/metre head
A body formed by Government in 1990 which monitors water
pumped
companies’ compliance with the Drinking Water Standards
A measure of the amount of energy used to treat and distribute
(see below)
water put into supply after allowing for water that is imported
Drinking Water Standards The legal requirements governing the quality and wholesomeness of drinking water Energy consumption performance assessments Yardsticks for the energy consumption of buildings. Higher than “typical” means a high energy consumption; lower than “typical” means a low energy consumption (see box above) Environment Agency A non-departmental public body with major responsibilities for the management and regulation of the water environment and for the control of industrial pollution and wastes 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 Headroom This is the difference between the amount of water a company has available for supply (‘water available for use’) under certain conditions, and the volume of water it is required to put into its network (‘distribution input’) under the same conditions.
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 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 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
Hippo
consumption of the materials required to fill the trench and
The “Hippo” is a small (200mm x 250mm) blue plastic bag that
make good the surface
is easily installed into a toilet cistern. It saves water at each flush. IT 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
48
from other companies. It is a useful measure for comparing
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
Treatment wastes
environmental conservation and enhancement.
Waste materials produced as a result of treating raw water to
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 Security of supply index 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.
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
Site of Special Scientific Interest (SSSI)
the Environment Agency; takes account of the characteristics
An area of land designated under the Wildlife and
of each source and its ability to support abstraction under
Countryside Act 1981 as of special interest because of
drought conditions without detriment to the needs of other
its flora, fauna, or geological or physiographical features
water users or the environment
Streetworks
Water delivered
Work necessary to repair, renew or otherwise improve
Water delivered to the customer at the limit of the Water
the distribution system which takes place on or near
Company’s responsibility. (Water delivered will comprise water
the public highway
used by the customer, water lost due to internal plumbing
Supply pipe
losses and supply pipe losses)
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 Surface water Water which flows or is stored on the ground surface Sustainable development Development that meets the needs of the present without compromising the ability of future generations to meet their own needs 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
49
Equal Opportunities Policy
Veolia Water UK plc supports the principle of equal opportunities in employment and opposes all forms of unlawful or unfair discrimination on the grounds of colour, race, nationality, ethnic or national origin, sex, marital status or disability. We believe that it is in the Companyâ&#x20AC;&#x2122;s best interests, and those of existing and prospective employees to ensure that the human resources, talents and skills available throughout the community are considered when employment opportunities arise.
50
Invitation to comment
We would like to hear from anyone who has comments to make on our environmental, social and economic performance. Please contact Corporate Responsibility Services Veolia Water UK plc 37-41 Old Queen Street London SW14 9JA Tel: 020-7393 2700, fax: 020-7222 0046 E-mail: info@veoliawater.co.uk or comment online at www.veoliawater.co.uk
The Water Businesses of the Veolia Water UK Group Three Valleys Water Plc PO Box 48, Bishop’s Rise, Hatfield, Herts AL10 9HL
Folkestone & Dover Water Services Ltd The Cherry Garden, Cherry Garden Lane, Folkestone, CT19 4QB
Tendring Hundred Water Services Ltd Mill Hill, Mistley Manningtree, Essex CO11 2AZ
Veolia Water Partnership
Veolia Water Industrial Outsourcing Ltd
Veolia Water UK PLC
Blackwell House, Three Valleys Way, Bushey, Herts, WD23 2LG
Blackwell House, Three Valleys Way, Bushey, Herts, WD23 2LG
37-41 Old Queen St London SW1H 9JA
Supply area
3738 km2
420 km2
352 km2
N/A
N/A
N/A
Properties connected
1,226,702
72,559
70,143
N/A
N/A
N/A
Number of people supplied
3,029,220
163,220
146,490
N/A
N/A
N/A
Water put into supply
864 Ml/day
49.7 Ml/day
30.1 Ml/day
N/A
N/A
N/A
Percentage from groundwater/ surface water resources
55%/45%
100%/0%
86%/14%
N/A
N/A
N/A
Length of main
14,277km
1,072km
910km
N/A
N/A
N/A
1019
78
72
169
17
46
Turnover
£165.1m
£13.3m
£12.1m
£14.4m
N/A
£189m18
Website
www.3valleys.co.uk
www.fdws.co.uk
www.thws.co.uk
-
www.vwio.com
www.veoliawater.co.uk
Employees
18
For calendar year ended 31 December 2003 51
Printed on Revive Special Silk which contains 30% FSC certified virgin fibre, 30% non certified virgin fibre, 30% de-inked post consumer waste and 10% mill waste. Beacon Press holds the FSC chain of custody (certificate no. SGSCOCO620). FSC Trademark Š 1996 Forest Stewardship Council A.C.
30 % MINIMUM
Designed by Beacon Creative. Printed by Beacon Press using their environmental print technology. The printing inks are made using vegetable based oils. No film or film processing chemicals were used. 95% of the cleaning solvents are recycled for further use and 88% of the waste associated with this product will be recycled. Beacon Creative and Beacon Press use electricity generated from renewable sources. Both companies are Carbon NeutralÂŽ and registered to environmental standards ISO 14001 and EMAS.
Veolia Water UK Plc 37-41 Old Queen St, London SW1H 9JA