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This is a key issue for clients and a source of high expectations due to the pressure on resources, increasingly favorable regulation in Europe, with the end of landfill and the enforcement of extended producer responsibility; in the United States, where there is a noticeable increase in uptake of new value creation models; and in China, a country that is moving its regulation towards fostering a sustainable economy , and the movement of society towards a circular, sharing and functional economy.
Veolia has set itself the aim of strengthening its leadership in this area by deploying existing technologies, innovating and positioning itself as a stakeholder that creates shared value. Cities and industrial firms are thus becoming producers of alternative resources and local supply loops are emerging. Veolia helps its clients to create value by: supplying materials and manufactured goods produced from waste, from wastewater and from unavoidable energy: technical and special waste e. In the plastics sector, where production and consumption are increasing steadily, regulation is progressively moving towards recycling and a ban on putting plastic in landfills.
Veolia has therefore set-up a plastic recycling industrial platform with European locations in France, the United Kingdom, Germany, Benelux and Scandinavia and Asian locations in Korea and Japan. Veolia is also working in partnership with industrial companies on the implementation of solutions to develop plastic recycling loops; p difficult pollution Some complex waste and effluent is hazardous to health and the environment, so it requires high levels of expertise and nonstandard equipment. There is a general awareness of the risks health, ecological, environmental, etc.
The tightening of local regulations and the increase in the volumes of waste being produced particularly that from the chemical, oil, metallurgy and nuclear industries and electrical and electronic equipment waste both support Veolia s decision to further develop its positioning in the processing of difficult types of pollution, particularly hazardous waste a market with high growth potential.
Veolia has a worldwide network of experts and resources that have been developed gradually over the years and are easily mobilized, a full range of technologies and services for processing difficult-to-treat effluents Veolia Water Technologies and hazardous waste, and for soil remediation GRS-Valtech. They meet the highest standards and are supported by cuttingedge research. The Group s strategy consists of developing new facilities in developing countries in Africa, the Middle East, Latin America and Asia and consolidating its existing facilities in Europe, the United States and China by adding density to its network of treatment plants and saturating its assets; p the management of end-of-life industrial facilities and equipment The increase in the number of industrial facilities and obsolete equipment that have either reached the end of their service life, sustained damage as a result of natural disasters or industrial accidents or pose a risk of contamination offers significant opportunities for growth for Veolia.
Management of the endof-life of these industrial assets oil rigs, ships, trains, aircraft, power stations and brownfield sites must comply with various restrictions or goals: preventing contamination risk presence of asbestos, oil, chemicals, etc. Industrial clients must prevent the risk of contamination, recycle materials and reuse equipment as much as possible, locally and at low cost and may even be required to decontaminate sites before starting new business activities there.
Veolia is expanding its operations in this new area by focusing on key accounts and positioning itself throughout the entire value chain, from dismantling services to upgrading equipment to ensure that it complies with current regulations and materials recovery. The Group is renowned for its skills and cutting-edge technologies for decontaminating land, recycling waste and treating hazardous pollution such as nuclear waste and asbestos , as well as for its ability to offer high-quality project management throughout the entire value chain, thereby guaranteeing, among other things, traceability and responsible waste management.
The initial objective was increased from million to million gross additional savings 1 by Savings of million and million were realized in and , respectively and savings in are expected to exceed million. This new plan covers three key areas for improvement, relating to: p purchasing rationalizing subcontracting arrangements, optimizing purchasing of energy and chemical products, etc. The operations and purchasing components will account for a higher proportion of total savings realized by the end of the plan compared to the previous plan. The plan for improving the Group s operating efficiency is based on operational benchmark and performance standards developed by Veolia s Centers of Excellence which bring together experts from all the different regions where the Group operates to define fundamental principles and best practices for key activities , as well as on an internal platform that allows information to be shared across different departments and entities.
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It is therefore in the cities and their industrial infrastructure that the fight to reduce greenhouse gas GHG emissions and to adapt to climate change will be won. As an operator of GHG emitting activities production of heat for municipal heating networks and industrial companies, waste management, etc. In fact, Veolia implements specific diagnostic tools for each business to support its clients strategy: improving the energy efficiency of installations and services, using renewable and alternative energies, recovering materials e. In regions where climate change has already had a significant impact, Veolia s water management and natural disaster resilience solutions contribute to adaptation measures.
In countries where water resources are increasingly scarce, Veolia develops alternative solutions including the reuse of waste water and sea water desalination. The Group is therefore committed to reducing its greenhouse emissions across its entire business chain and those of its clients to limit global warming to 2 C by the end of the century compared with the pre-industrial era. In , Veolia introduced a climate roadmap, comprising quantified commitments monitored by the Board of Directors Research, Innovation and Sustainable Development Committee see Chapter 6, Section below.
This working group, set up by the G20 s Financial Stability Board FSB , issued recommendations in on company transparency on climate-related issues to enable investment stakeholders to promote reductions in GHG emissions and adaptation measures. The information required by Articles L , L and R et seq. This expertise enables Veolia to assist its clients implement integrated and sustained water resource management systems. Sustainable management of water resources Veolia is active in all stages of the water cycle, from collection through to returning it to the natural environment.
The Group has several decades experience of managing all of these key phases, providing it with specialized knowledge and expertise in managing this resource. The Group is committed on a daily basis to optimizing how the water cycle is managed, as well as to saving this increasingly scarce resource, guaranteeing its quality and ensuring that it is replenished.
It helps its clients develop holistic, integrated policies for managing water resources that emphasize the need to preserve ecosystems and biodiversity. Around the world, Veolia is providing solutions such as seawater desalination, recycling and reusing wastewater and developing piping systems that help to optimize how this precious resource is managed.
Collection and transport of water Veolia offers a range of solutions for the collection and transport of drinking water and wastewater, including: p designing and build ing water and sanitation networks; p operating and maintaining water and wastewater treatment networks; p distributing drinking water; p collecting wastewater. Water treatment As a water treatment expert, Veolia has significant expertise in monitoring water quality at every stage of the process, from collec tion through to returning it to the natural environment and develops solutions that respond to the needs of public authorities and industrial companies: p engineering, designing and building treatment plants; p producing drinking and industrial process water; p decontaminating wastewater; p recycling wastewater and industrial effluents; p operating, maintaining and optimizing treatment plants; p producing green energy from wastewater and sludge e.
The Group has a portfolio of more than proprietary technologies including physiochemical, biological, membrane and bio membrane, membrane desalination, thermal and hybrid treatments to tackle the challenges of managing water in all its forms drinking water, industrial process water, ultrapure water, wastewater and seawater. Innovation is also a key component of the Group s strategy and solutions are therefore developed in areas such as the recycling and reuse of wastewater, producing green energy e. Customer service Veolia has developed a range of multichannel customer relationship management tools to ensure that it maintains excellent relations with its customers, including: p customer service centers, where Veolia can respond to a range of consumer inquiries; p local and mobile branches; p web portals; p mobile applications that customers can download onto a smartphone and use to carry out key transactions relating to their water service; p a range of payment and social support solutions.
Planning and construction work Veolia Water Technologies VWT , a subsidiary of Veolia Environnement, offers industrial companies and public authorities a comprehensive range of solutions and services designed to optimize their water usage, from supplying drinking and industrial process water to treating wastewater, managing wastewater sludge and recycling and reuse solutions including the recovery of byproducts, raw materials and energy. Veolia combines technology and engineering services to develop comprehensive water treatment solutions, which may take the form of either packaged products or bespoke turnkey systems.
VWT designs and builds drinking water production and wastewater treatment plants around the world for a range of industrial and municipal clients. Through its subsidiaries, VWT also offers water treatment equipment and technology, as well as mobile operational response solutions. VWT s wastewater treatment services transform wastewater into a resource. Using its technologies, it helps municipalities to produce reusable water, fertilizers, nutrients and thermal and electrical energy from wastewater.
The Company also works with mining, exploration, operating and engineering companies to respond to all their water needs, from producing drinking or desalinated water at remote sites to treating industrial process water and wastewater. Digitalizing the business Veolia s so-called smart technologies help improve the operating performance of its operations: p control centers integrated into the operations monitor service levels in real time and communicate any anomalies to the customer service centers to program on-site visits; p an energy management system closely monitors the consumption of water installations operated by the Group and identifies areas for optimization.
Veolia has also developed an e-monitoring service enabling private individuals, local authorities and industrial companies to better manage their consumption Waste Veolia is one of the leading players in the management of liquid, solid, non-hazardous and hazardous waste. The Group operates across the entire waste life cycle, from collection to final processing and makes waste recovery a priority. Veolia plays a key role in the circular economy, developing innovative solutions to increase rates of waste recycled and recovered as materials and energy.
Waste collection Due to the wide range of waste categories household waste, nonhazardous commercial and industrial waste, construction waste, green waste, hazardous industrial and service sector waste , waste collection is a major logistics challenge. It also handles dispersed hazardous waste, which must be separated during collection, either in individual containers or mixed with other recyclable materials. Waste of the same type is taken either to transfer stations, where it is picked up by larger trucks, or to sorting centers, where it is separated by type and then sorted before being sent to the appropriate processing center.
Veolia offers its clients a range of collection systems that can be adapted to suit their specific economic and regional requirements. New technologies have been developed in France, such as vehicles powered by biofuel, hybrid vehicles and alternative methods of transporting waste e. Recovering materials from waste Veolia s goal is to process waste with a view to reintroducing it into the industrial production cycle and achieving the highest possible rate of recovery. Solid waste is then transferred to specialized centers. Veolia works upstream in partnership with industrial companies and the Group s research center to develop recycling activities.
TSA2, Veolia s patented automated sequential technology for industrial applications, enhances the performance of its sorting facilities and enables the production of high-quality secondary raw materials. Veolia also provides recycling services for complex waste, such as electrical and electronic devices and fluorescent bulbs. Recovery of organic waste Wastewater treatment plant sludge and green waste as well as organic waste produced by households, restaurants, the food and beverage sector and agriculture, are recovered at specific biological facilities.
Treatment involves either controlled composting or anaerobic digestion at anaerobic digestion plants. Compost produced is used as fertilizer in agriculture and methane generated by fermentation is recovered using the same process as for biogas at landfill sites. Waste-to-energy recovery Non-hazardous waste that cannot be recycled is transported to incineration plants or landfill sites. The incineration process produces energy in the form of steam that can either be used to power urban or industrial heating networks or converted to energy using turbines.
The electricity produced is then fed into the national grid. At landfill sites, Veolia captures biogas produced by the fermentation of organic waste. This biogas may then be fed directly into a distribution network, used to produce electricity with turbines or engines, or used as fuel for vehicles. Decommissioning and decontamination Veolia manages decommissioning projects for industrial facilities and end-of-life equipment, such as aircraft, ships, trains and oil platforms.
The Group provides dismantling, asbestos removal, material recovery, final waste treatment and site remediation services. Veolia also participates in the rehabilitation of areas where the soil was previously contaminated. Its subsidiary, SARP Industries, rehabilitates brownfield sites, cleans-up accidental spills and brings active industrial sites into line with applicable environmental regulation.
Processing of hazardous waste Through its specialist subsidiaries, Veolia is a world leader in processing, recycling and recovering hazardous waste and decontaminating land. Depending on the source and composition of the hazardous waste it may be incinerated or processed using physiochemical techniques at specialized facilities, or stabilized and buried in special landfill sites. In , following the acquisition of Kurion, the Group brought together the activities of Asteralis, Veolia ES Alaron and Kurion, all of which specialize in nuclear facility clean-up and the processing of low and medium-level radioactive waste, within a single entity, Nuclear Solutions.
Urban and industrial cleaning services and sanitation The cleanliness of streets and public areas is an important factor in cities attractiveness and is a major public health and safety issue for citizens. Veolia offers industrial clients production line upkeep and maintenance services and a comprehensive range of specialist services to optimize the performance of the industrial tool and extend its life. The Group has also developed emergency services to treat accidental pollution on public roads or at industrial sites. Through its specialized subsidiary, SARP, Veolia provides liquid waste management services that largely involve pumping and transporting sewer network liquids and oil industry residues to treatment centers.
The Group has developed a range of environmentallyfriendly procedures for managing liquid waste, including on-site collection and the recycling of water during processing. Used oil, which is hazardous for the environment, is collected before being processed and re-refined by SARP Industries, a specialist in managing hazardous waste. Veolia s value proposition seeks to guarantee the energy performance of the regions and industrial companies i by reducing end consumption, ii while optimizing local energy production and iii improving the energy mix by promoting renewable energies and recovering unavoidable energy.
This positioning allows the Group to respond to the challenges facing all client segments, both municipal energy optimization, development of renewable energies and network balance in developed countries, development of regional infrastructure and the need for autonomy in emerging countries and industrial energy optimization, security of supply, corporate social and environmental responsibility in developed countries, security of supply and need for autonomy in emerging countries.
Heating and cooling networks Veolia is one of Europe s leading companies for managing district heating and cooling networks, particularly in Central and Eastern Europe, and enjoys a strong position as an operator in the United States. The operation and maintenance of heating and cooling networks enables the supply of heating, hot water and air conditioning to public and private facilities, including schools, health centers, office buildings and apartment blocks.
The Group helps cities and industrial companies define a lowcarbon energy strategy, by developing an energy mix favoring the use of renewable and alternative energies: geothermal, biomass, cogeneration or the recovery of heat produced by incineration of household waste, wastewater treatment plants, etc. Veolia uses its unique expertise to design, build, operate and maintain heating and cooling networks, manage energy supplies particularly those from renewable sources and deliver services to end customers.
Local supply loops Local supply loops respond to an underlying trend tied to the development of local renewable energies and the need for flexibility in the electricity management system. Veolia s offerings focus on the production cogeneration, biomass, waste, biogas, hydraulic, etc.
Energy services for buildings Veolia develops energy services to reduce the energy consumption and CO 2 emissions of buildings while maintaining occupant comfort levels. Veolia carries out energy audits of buildings, which are then used to draft improvement plans encompassing the installation of more efficient energy equipment, tools for monitoring consumption and managing the building s performance and measures encouraging occupants to save energy.
Veolia has created a hypervision system and management service to control the efficiency of buildings and infrastructures: Hubgrade. Designed as an integrated management platform, Hubgrade collects data real-time which is then analyzed by the Group s experts to optimize on-site visits. Veolia currently manages nine Hubgrade centers around the globe. Industrial utilities Energy has become a key factor in industrial companies competitiveness. Veolia s energy solutions meet the reliability, quality, availability, and cost requirements of industrial companies for whom energy is an essential element of their competitiveness.
The Group optimizes industrial utilities, whatever their nature production of steam, cold, electricity, compressed air , as well as the use of process energy and the energy consumption of industrial buildings. Veolia thereby contributes to securing its client s energy supply and reducing their energy and carbon footprint: p optimizing industrial utilities: steam, electricity and compressed air; p optimizing the use of process energy aligning use with needs and identifying sources of unavoidable energy and recoverable byproducts ; p optimizing the energy consumption of industrial buildings; p reducing greenhouse gas emissions.
Veolia offers its clients: p a secure supply and effective mix of energy in terms of quantity, quality and cost; p a reduction in the energy and carbon footprint of their industrial processes; p a guarantee that their facilities will remain operable, in the form of specific service commitments. Its energy solutions encompass the entire conversion cycle, from purchasing energies entering a site fuel oil, gas, coal, biomass and biogas to building new facilities or modernizing existing ones and selling the electricity produced on the market.
Veolia works with its clients to help them optimize their energy purchasing and upgrade their facilities to improve their energy efficiency, both in terms of cost and atmospheric emissions. From an operational standpoint, there are necessary changes to the client relationship: the service provider is becoming the industrial sector client s sole point of contact and a dialog is developing to seek solutions which satisfy the interests of both parties. By outsourcing the management of technical and multi-services to a specialist, the client can refocus on its core business and benefit from best practices on service concessions.
The combination of these two factors helps improve the performance and competitiveness of industrial sites. By placing its business synergies, its know-how, its international spread and its solid reputation at the service of industrial sector clients, Veolia has established itself as the benchmark for multibusiness integrated offerings in industrial markets. Veolia s organizational structure for the provision of multi-business services Through Veolia Industries Global Solutions VIGS , the Group can provide industrial sector clients with integrated solutions.
This subsidiary enables Veolia to better meet the expectations of clients wishing to outsource a range of services across several industrial sites to a single service provider. The Veolia Industries Global Solutions offering combines the Group s services and skills in a single contract, to contribute to the overall competitiveness of clients industrial sites. This competitiveness is achieved by emphasizing operational synergies between the various services water, energy, discharge treatment and waste management and by providing technical and technological solutions intended to improve environmental performance.
In addition to economic performance, Veolia Industries Global Solutions also guarantees uniform operational management of sites and operating processes, a unique and comprehensive reporting process to measure performance between sites, and the transfer of best practices between multiple sites belonging to a single client or industrial sector. Multi-business contracts Multi-business operations have a significant international dimension, particularly when industrial clients invest in the construction of new plants abroad greenfield plants. Veolia Industries Global Solutions enjoys a unique position in the industrial outsourcing market as demonstrated by its wide range of references: p solvent recycling and management of hazardous waste combined with the sale of energy at the multi-client industrial platform in Basel, Switzerland; p the design, build and operation of the first automobile plant with zero carbon emissions and zero water discharges, for Renault in Tangier, which mobilized the expertise and know-how of the Group s various business lines; p the ability to assist leading pharmaceutical clients throughout Europe with applying the same standards, as demonstrated by contracts with Bristol Myers Squibb and Novartis.
Veolia Industries Global Solutions operates mainly in Europe. Seureca is involved from the draft project phase through to operational implementation and proposes a range of services including development plans and feasibility studies, design studies, work supervision, operational technical assistance, training and skills transfer. In addition to its consulting activity in the water, waste and energy sectors, Seureca has specialized subsidiaries in the following fields: energy efficiency and recovery, renewable energies DESL ; industrial water and process water treatment EPAS ; environmental and health and safety performance of buildings OFIS.
Seureca operates in over 60 countries across four continents, supported by a network of permanent offices outside France and an operational talent pool of engineers that can be mobilized to work on short or long-term projects around the world. WATER WASTE ENERGY ch ang es to b i lle d vol umes particularly changes in domestic water consumption as a result of weather variations ; the ability to achieve, within the planned timeframe, rate increases in line with Group targets; the ability to implement cost-cutting programs; the pace of the projects of municipal clients and some larger industrial clients for designing and building installations ; t h e a b i l ity to meet service commitments negotiated with clients or regulators; continued technological leadership for desig ning and building installations ; a full grasp of the constraints and technical solutions in relation to contract performance; thoroughness in negotiation and performance particularly as regards the ability to respect deadlines and the costs budgeted for designing and building installations.
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Water and Energy business lines are subject to seasonal changes and weather uncertainty see Chapter 5, Section , below. Moreover, price variations in electricity and primary raw materials particularly fuel, coal and natural gas on one hand, and of secondary raw materials paper, cardboard, plastic, ferrous scrap and non-ferrous metals on the other hand, can have varying effects on Veolia s businesses see Chapter 5, Section , below. Energy and raw material prices fluctuate, often significantly.
Major variations in gas prices from one year to the next are due to the weather and the competitiveness of coal. However, while oil and gas prices have been increasing since mid, a further drop in commodity prices cannot be ruled out. In , annual averages for two representative price benchmarks Copacel 1. Veolia therefore strives to take its clients expectations into account in its contract negotiations, building a partnershipbased relationship that is attentive to the client s concerns, and a shared approach to improvement and productivity.
It sets out clearly defined commitments to performance and sharing the value created, while meeting regulators requirements, from the tendering stage, throughout performance of the contract. Contractual relationships with public authorities Contractual relationships with public authorities for services to local inhabitants public services or services of general economic interest, for which the public authority is responsible , vary with the level of involvement of the public authority and the contractor.
Most often, these public services fall under the responsibility of the competent public authorities, which are directly involved in their management in various ways. They may: p operate the service themselves direct or internal management by a state-owned enterprise using their own resources or resources entrusted to a body that the public authority completely controls, similarly to the way it controls its own departments or in-house under EU regulations ; p engage the services of a private, part-public or public company, which operates all or part of the service on their behalf in its entirety, for support assignments related to the service, or within a limited scope and for which they form the client base; p transfer or delegate, to a private, part-public or public company, responsibility for operating all or part of the service, allocating the human, material and financial resources and, where applicable, designing, building and financing the facilities needed to operate the service.
In certain cases, service users may directly form the client base of the Group s entities. These contracts may have a limited purpose e. These contracts may be performed by Group companies acting alone or as part of a consortium with third parties or, where facilities are subject to financing, through ad hoc companies that conclude the contract and take on the debt, without the lenders being able to launch proceedings against the borrower s shareholders.
In this type of contractual arrangement, it is also common to create an operating company to operate and maintain the facility. Group companies may, for a single project, invest to varying degrees in the construction consortium, in the capital of the ad hoc company awarded the main contract or in the capital of the operating company; p public service concession contract: the public entity grants the contractor the concession to manage a public service, taking on all or part of the operating risk.
It is most common for this to result in remuneration paid, in whole or in part, by the service user. The term of these contracts varies with the task assigned: they are often medium- or long-term contracts average of 8 to 20 years, public contracts generally having a shorter term. Long-term contracts may include a periodic review of financial terms and conditions. Partnerships with industrial and service sector companies Partnerships with industrial and service sector businesses can also take a variety of contractual forms; including at least a service of limited scope, but up to the design, financing, construction and full operation of a facility.
These contracts are customized because they seek to address exactly the specific issues facing each client: p outsourcing a group of services not included in its core business, such as site management steam, compressed air, electricity, cooling towers, cooling unit, heating, ventilation, air-conditioning, etc. More broadly, the Group can manage the full range of production support services at industrial sites: building maintenance, lifting equipment, fire detection, mechanical and electrical maintenance, calibration, instrumentation, etc.
In most cases, the contracts set performance targets, on which Veolia s remuneration is partly based. As with public authorities, the term of contracts with industrial companies varies and is on average 3 to 10 years. The Group is also very careful to strive for economic balance in its contract portfolio, particularly when investments need to be financed. The contracts managed are complex and long-term, so the Group is skilled in analyzing and monitoring contracts.
The content of tenders is approved by Veolia s Investment Committee for the most important ones , or by the regional or country investment approval committees. The Group s central operational departments are involved in the process of negotiating and drawing up tenders for major contracts, launched by the operational companies. Controls cover the implementation of tenders and contracts. The competitive landscape is very diverse, but there are few players that are comparable to Veolia at global level.
Veolia belongs to this category, as do Suez and Remondis, although neither of these has a presence outside Water and Waste. These players share the same springboards for growth: emerging economies, industrial markets, the circular economy, new technologies and high value-added services. Suez s strategic focus and range of services in Water and Waste make it Veolia s closest competitor.
What sets Veolia apart are its larger geographic footprint; its more extensive range of services, including Energy; the synergies between its Water, Waste and Energy business lines; its portfolio of technologies enabling it to tackle all water treatment problems; and its huge portfolio of industrial clients. Global specialists Global specialists are companies that specialize in one of Veolia s business lines and have a worldwide geographic presence.
This category includes, in particular, major players in the energy market, such as Engie and E. Moreover, these companies are professionalizing their approach through innovations in the digital field control centers, network optimization, the Internet of Things, etc. Focused on equipment sales, their growth strategies are also based on developing digital offerings, such as control centers and the Internet of Things. Local specialists Unlike global specialists, local specialists have a geographic footprint limited to one country or region of the world. They set the standard in their market, with a range of expert offerings positioned in specific business lines.
This category remains perhaps the largest in the market. In fact, Veolia faces a multitude of local specialists in the various countries of the world: p in the United States, Veolia s competitors in Waste are: Waste Management, which is developing circular economy offerings; Clean Harbors, which specializes in services to industrial firms and processing of hazardous waste; and Stericycle, which specializes in hospital waste and is expanding internationally Latin America, Europe, Japan, Korea ; p in France, Dalkia which is part of the EDF Group, is established in energy efficiency, and is expanding into renewable energy and specialist technical sectors, as well as into countries where EDF operates; Saur focuses on Water operations; p in the majority of countries, there are municipalities managing Water, Waste or Energy within well-defined geographic boundaries.
An emerging category of new players is leveraging new digital technologies to optimize services to the end customer: brokerage platforms, advanced algorithm software solutions e. Veolia sets itself apart from these companies through the effects of scale, linked to its size, its ability to offer comprehensive services multi-site and multi-business , the synergies between its business lines, and its ability to integrate construction and operation, thereby guaranteeing long-term reliability.
Accordingly, the Singaporebased Sembcorp Group is Veolia s competitor in the Water and Energy business lines, and focuses on construction and operation in emerging countries. Veolia sets itself apart from these companies through the effects of scale, linked to its size, its ability to offer comprehensive services multi-site and multi-business and the synergies between its business lines.
The Group therefore fully leverages the inventive capacity of its teams and of its Research and Innovation network to meet these challenges by proposing solutions that combine innovation, performance and accessibility and by providing its clients with long-term support. Veolia works every day to develop technological, contractual, social and managerial innovations in order to offer its municipal and industrial clients services with high added value. Innovation drives Veolia, allowing it to seize opportunities for growth and reinforce its development.
The Group s recent commercial successes have been supported by innovation, an inherent part of the Group s innovative entrepreneurial DNA, to achieve its growth goals and fulfill its mission of resourcing the world. In , the total budget for Research and Innovation was approximately VERI works on behalf of all of the Group s activities and uses its scientific excellence to participate in the development of the Group s business lines, improving the performance and productivity of the activities while anticipating Veolia s future needs.
At international level, Veolia had two specialized research centers in in China, where Veolia has worked closely with the topranked Tsinghua University since and in Singapore since with a center of excellence for urban modeling. Veolia s research activities are also supported by three test facilities for wastewater and drinking water treatment as well as seawater desalination, along with research pilots to validate these technologies and ensure their reliability.
In , it was supported by six key Research and Innovation sites research centers, test platforms and research pilots working together as a single research center. The network supports and encourages the development of local innovation initiatives by sharing best practices or making available specific tools. It contributes to increasing total innovation capability and fosters momentum for generating, sharing and applying innovations.
Open innovation approach to identify and integrate innovations from outside the Group Launched in , Veolia s Open Innovation s aim is to accelerate and amplify the Group s innovation capability by integrating innovations complementary to its businesses. It makes use of all open innovation practices: challenges, open channel, territorial initiatives, etc. Bolstered by these complementary pillars, Veolia s Research and Innovation activities involved nearly experts around the world in , including more than within the Group s internal Research and Innovation structure.
These industrialization trials were performed on different types of municipal sludge and confirmed the treatment performance levels obtained by Veolia s Research and Innovation. This technology will be rolled-out by VWT after this industrialization phase. It is used in the wastewater network to monitor specific discharges, for example at the exit of wastewater treatment plants. It forms part of the new service provided by EPAS Group company , that aims to help wastewater treatment plants control the quality of their discharges into the natural environment.
It can be combined with wastewater treatment network monitoring systems to detect a change in the quality of effluent or specific substances. The aim is to find the possible sources of pollutant emissions in the wastewater treatment network catchment area and identify the polluters. A trial in Avignon demonstrated the technical feasibility of the activity and the technology and its good positioning compared with competitive technologies.
Four years of trials have now been completed in two waste-to-energy plants operated by Veolia. Feedback on the new refractory tile model the result of modeling work performed by Veolia Research and Innovation is positive. The new tile model is protected by a patent and more resistant to heat distortion. A stage in this multi-process activity was validated in , enabling an improvement in the activity s operating performance and the percentage recovered. The Research and Innovation teams also participated in the transfer of knowhow related to the continuous operation of production, a major challenge for industrialization.
SMART AGRI: delivery of version 1 of the decisionmaking tool Veolia Research and Innovation has developed a decisionmaking tool to assist teams in contact with farmers to rationalize fertilization with organic products using an appraisal simulation optimization approach. Century enables the carbon and nutrient N, P and K dynamics to be coupled, a key factor in the overall optimization of fertilization organic and mineral. Optimization tool for the management of heating and cooling systems in service sector buildings In the building energy services market, Veolia is committed to improving energy performance.
This type of contract requires the implementation of solutions to attain the announced energy savings. Veolia Research and Innovation works to propose strategies involving the optimization of heating and cooling systems based on forecasting models for the thermal behavior of service sector buildings. The assessment will continue during the heating period with heating strategy trials. The list of the main companies included in the consolidated financial statements is presented in Chapter 4, Section 4.
The main changes in the consolidation scope and Group structure in are presented in Chapter 3, Section below. Following the application of IFRS 10, 11 and 12, the Group s joint ventures are consolidated using the equity method. Therefore, their revenue and particularly the revenue of the main joint ventures, that is, the Chinese Water concessions are not included in the table below revenue in million Total France 5, These two Business Units generated consolidated revenue of 5, Comments on revenue trends and results for this segment may be found in Chapter 3, Section above.
Water France Veolia Water France is a major player in the management of water and wastewater services on behalf of public authorities and industrial companies. Veolia Water France teams have significant expertise in the treatment and monitoring of water quality at all stages of the water cycle, from abstraction of the natural resource to discharge into the environment. In addition to this expertise, Veolia Water France innovates daily to improve the performance of services, treatment processes and installations and ensure a high quality of water and wastewater.
Through its various missions, Veolia Water France assists local authorities and companies with regional development that respects all and the environment. Veolia Water France supplies drinking water to around 23 million people and wastewater systems to The water sector is undergoing major changes that modify the activities of all regional development and large water cycle players NOTRe law. To meet requirements for reactivity, transparency, performance and innovation, Veolia Water France wishes to continue to build jointly, through partnerships, new public-private models, around Public Service Contracts.
To this end, Water France has made local service its number one commitment, creating 67 Area Bases across nine regions to provide strong local roots and place responsibility clearly with operations on the ground. Nova Veolia was created in as part of a search for new growth drivers. Nova Veolia is a wholly-owned subsidiary of Veolia Water France, tasked with developing innovative services with a high digital component.
An incubator for new activities, Nova Veolia develops and commercializes, through expert companies, services based on know-how and expertise with high added value. Nova Veolia s innovative offering focuses on the new needs of public and private companies, both in the water and other sectors.
Revenue for this Business Unit in amounted to 2, Taken together, the public service concession contracts renewed in represent estimated cumulative revenue of In addition, in France, the law on the new territorial organization of the French Republic the NOTRe law led to the regrouping of public authorities and the overhaul of the scope of waste collection and processing clients public administrative area groupings EPIC , metropolis, municipal associations, joint agencies, etc.
Therefore, while looking for economically-efficient collection and recovery services, market players local authorities and industrial companies seek to contribute to the objectives of the energy transition law through resource-saving production and consumption methods. Upstream of the waste cycle, Veolia s Waste Solutions business offers its industrial and public authority clients: p innovative collection solutions tailored to the specific local circumstances economic, social, environmental of public authorities, such as performance contracts; p collection solutions for industrial waste flows and integrated offers for the maintenance of industrial production equipment.
Downstream, Waste Solutions transforms waste into resources and performs processing operations to eliminate pollutants: p sorting, recycling and recovery of household waste and nonhazardous industrial waste using high-performing installations producing secondary raw materials able to replace virgin materials; p dismantling of industrial sites and equipment at the end of their useful lives ships, planes, trains, vehicles, etc.
Accordingly, the sums indicated may differ from the figures provided in the press releases issued by the Group. Spain, Portugal and Italy are included in Other European countries. Revenue for this Europe excluding France segment in amounted to 8, Comments on revenue trends and results for this segment may be found in Chapter 3, Section below.
These activities were reinforced in , notably with the acquisition of two mid-sized CHP plants in the north-west of Hungary km from Budapest , the extension of our biomass plant portfolio Dorog, Pecs, Szakoly and the acquisition in Poland of Poltino Energia SA, a platform providing heat to Lezajsk and its industrial area km east of Cracow. Veolia also gained a foothold in the Czech Republic waste market, acquiring a number of companies specializing in the recycling and recovery of non-hazardous industrial and commercial waste.
The portfolio also includes service contracts for companies and local authorities, as well as for the supply of energy and fluids heat, cold, hot water, chilled water, etc. In Central Europe, the Group s actions are driven by European policies and associated regulations relating to the environment, energy energy efficiency, support for renewable energies and highefficiency cogeneration and addressing climate change, resulting in a need to improve and modernize services and infrastructures bringing them up to current standards.
United Kingdom and Ireland In the United Kingdom and Ireland, Veolia provides services to four types of clients: p municipal clients, primarily for energy recovery and waste recycling; p industrial clients for water, energy and waste activities in order to reduce their resource consumption and ensure their security of supply of water and energy; p regulated water companies to reduce their water consumption and produce energy from wastewater; p finally, commercial clients thanks to tailored solutions minimizing the amount of waste sent to landfills and creating energy and recycled materials.
Nevertheless, the Private Finance Initiative PFI structure which Veolia has championed and regulations favoring the circular economy open up numerous avenues for growth, in particular via combined circular offers, either waste-energy or water-waste, as well as specific solutions such as the processing of hazardous waste or the anaerobic digestion of industrial effluents. Northern Europe In Northern Europe, the environmental regulatory framework and the business climate benefit Veolia s business lines, with the notable exception of public water supply services, which public authorities rarely delegate.
Numerous opportunities exist for Veolia in these countries, particularly for the implementation of innovative environmental solutions in utility infrastructures. In Germany, the Group is present in the three business lines Water, Waste and Energy through partnerships with public authorities, industrial clients and service companies. In , Veolia strengthened its presence in waste recovery with a number of small acquisitions in the plastic recycling and alternative fuel sectors. Veolia is present in Benelux in the Energy and Water business lines.
In the Netherlands, Veolia also manages utilities at industrial sites and recycles plastic and paper. In the Nordic countries Sweden, Norway and Finland , in addition to the Water and Energy business lines, Veolia entered the recycling paper, plastic and industrial cleaning market in and can now offer industrial clients a range of services covering all the Group s business lines. In Northern Europe, Veolia proposes a wide and varied range of offerings relating to the circular economy recycling, sludge recovery, biogas, Water and Energy performance contracts e. In Portugal, Veolia s activities include energy recovery from solid municipal waste and energy efficiency solutions for thermal systems in buildings and industries for public and private clients.
A leader in energy efficiency in Spain, Veolia is progressively diversifying into the Group s traditional businesses. In order to guarantee its industrial and municipal clients the best possible performance, Veolia opened an energy management center in Spain, Hubgrade, from which it can remotely control all its facilities on a real time basis. Veolia also manages the sole hazardous waste incineration plant in Spain in Constanti in Catalonia , a mechanical and biological processing, composting, waste-to-energy and anaerobic digestion plant in Matoro in the Maresme region in Catalonia , the Saragossa wastewater treatment plant and one of the county s largest desalination plants in Almeria.
It manages more than 4, thermal facilities for public and private clients. Veolia offers multi-service and energy performance contracts for the service sector with a strong market presence in hospitals e. Revenue for this Rest of world segment in amounted to 6, North America In the United States and Canada, Veolia s activities are divided equally between industrial and municipal clients. Serving cities, public authorities, hospitals and a wide range of urban university campuses, Veolia in North America is active in water, energy and waste management.
Veolia offers operation and maintenance solutions for the energy sector to municipal and commercial clients. A significant part of Veolia s Energy activities is based on services for district energy networks, and it also offers energy efficiency services and consulting solutions. The Group is a leading provider of operations management and maintenance services for drinking water and wastewater systems in the North American sector via public-private partnerships. In addition to these traditional models, Veolia has developed an innovative consultancy and performance-based contract model to help cities identify efficiency opportunities and implement improvements, which has been successfully introduced in cities such as New York, Washington DC and Pittsburgh.
For industrial clients, Veolia is primarily involved in the Water and Waste business lines, with a significant portion of its revenue coming from the oil and gas industry primarily refineries: regeneration services, processing of oil sludge, industrial cleaning of tanks, hazardous waste processing, etc. By viewing waste disposal as an opportunity to create an energy source, or making new products through solvent reclamation processes and beneficial reuse programs, Veolia turns industrial clients environmental challenges into circular economy solutions.
These circular economy solutions, in particular in the form of resource recovery and regeneration, are some of Veolia s primary areas of development in North America following its recent success in potash recovery and the cleaning and recycling of wastewater.