SUEZ ENVIRONNEMENT SUPPLEMENT 4 PAGES on SUEZ ENVIRONNEMENT in AUSTRALIA Magazinenumber 12 March 2013

SUEZ ENVIRONNEMENT SUPPLEMENT 4 PAGES ON SUEZ ENVIRONNEMENT IN AUSTRALIA MagazineNumber 12_March 2013

| P02 DESALINATION MISSION IN MELBOURNE | P12 SAFETY AT THE HEART OF THE GROUP’S | P24 PRIVATE INVESTMENT, A SUSTAINABLE AND INNOVATIVE SOLUTION IN THE USA |

GROUP DEVELOPMENT: AN INTERNATIONAL FOCUS 2 _PORTFOLIO SUEZ ENVIRONNEMENT MAGAZINE

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01_ 01_ Construction work began on the desalination plant in September 2009 near Wonthaggi, a town located 135 km southeast of Melbourne.

02_ The project operated with a peak of 4,500 workers on site each day.

03_ On 17 December 2012, the Victorian Desalination Plant successfully completed reliability tests. The operations team now manages the facility for the next 27 years. No.12 - MARCH 2013 PORTFOLIO_ 3 MELBOURNE DRINKABLE SEAWATER! IN AUSTRALIA, WATER IS A PRECIOUS COMMODITY. WITH THE VAST MAJORITY OF THE POPULATION LIVING ALONG THE COUNTRY’S COASTAL AREAS, SEAWATER DESALINATION HAS EMERGED AS A VIABLE SOLUTION FOR THIS ISLAND-CONTINENT. FOLLOWING PERTH’S EXAMPLE, MELBOURNE HAS GIVEN DEGRÉMONT THE JOB OF MAKING ITS SEAWATER DRINKABLE! LET’S LOOK BACK ON THIS HUMAN AND TECHNOLOGICAL ADVENTURE.

PHOTO REPORT: THIESS / DEGRÉMONT

w Watch the video on the Melbourne desalination plant

SUEZ12UK_002007_PORTFOLIO.indd 3 11/04/13 13:32 4 _PORTFOLIO SUEZ ENVIRONNEMENT MAGAZINE

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`2 billion 30 years is the amount of investment is the length of the contract with the State needed for the construction of Victoria (from construction of the plant, contract. through to operation). No.12 - MARCH 2013 PORTFOLIO_ 5

01_ 35,000 tonnes of equipment were used and 1.4 million cubic metres of earth was excavated.

02_ 84 km of pipes had to be laid to allow transportation of the drinking water from the plant to the Cardinia Reservoir.

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03_ The tunnels that draw in the seawater measure 4 metres in diameter. 6 _PORTFOLIO SUEZ ENVIRONNEMENT MAGAZINE

01_ The plant’s racks are almost 10 metres high and the plant houses more than 55,000 reverse osmosis membranes.

25,000 people from 20 different countries were involved in the construction of this mammoth plant. 450,000 m3 of water can be available every day to over four million people living in Melbourne and the surrounding area if needed.

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02_ 02_ 87 kilometres of 03_ More than 180 indicators are underground electric checked by 250 analysers on the cables supply the plant production line to ensure the with the power it needs. drinking water meets the Victorian Government’s health standards. No.12 - MARCH 2013 PORTFOLIO_ 7

THE DESALINATION CYCLE — On the Wonthaggi site, the production cycle is made up of 7 key stages. First, water is pumped from the sea (water intake) via a 1.2-km long tunnel before being pre-treated through a sieving and filtering process which removes algae, suspended solids and other particles. Next, it is injected into reverse osmosis racks, where the water is filtered and desalinated through semi-permeable membranes. Then comes the purification phase when the water is remineralised (calcium and carbonates), giving it all of the necessary properties to make it safe for consumption. It is then sent to the Cardinia Reservoir via an 84 km-long feeder pipe before entering the Melbourne water supply, wich is connected to the regional areas. The first two stages of the cycle include the optimal treatment of sludge and the brine produced during the reverse osmosis process being returned to the sea via a special 1.5 km-long tunnel.

27 years of operations, after which the plant will be handed back to the Victorian Government in perfect working order. Following a total construction investment of `2 billion, the plant now has a production capacity of 450,000 m3 of water per 2009, Degrémont, a subsidiary of SUEZ day. This provides the 4.1 million people of Greater Melbourne ENVIRONNEMENT, as part of the with a rainfall independent source of drinking water to supple- In July AquaSure consortium (1), was awarded the ment catchments and storages if required. world’s largest public-private partnership contract for water Does the plant have any stand-out characteristics? Its services. Its aim: to fi nance, design, construct and operate the structure has been designed to be visually integrated into the largest reverse osmosis seawater desalination plant in the countryside (2), particularly through the main building having a Southern Hemisphere. 26,000 m3 green-roof, and the entire facility being surrounded This challenging project and feat of human endeavour is by reconstructed coastal sand dunes, planted with millions of based near Wonthaggi, a small coastal town 135 km southeast native species. And all of the energy required to operate the of Melbourne. plant is 100% offset by renewable energy! In total, 35,000 tonnes of equipment and 25,000 people from 20 different countries were required to produce those (1) The AquaSure consortium is comprised of SUEZ ENVIRONNEMENT/Degrémont, Thiess (an Australian construction and services company) and the Macquarie Group fi rst few drops of desalination water in June 2012. By mid- (an international banking, fi nancial and fund management services provider). See the inset “SUEZ ENVIRONNEMENT in Australia”. December 2012, the reliability testing of the plant operating (2) The site is spread over a total of 263 ha, 38 ha of which is covered by the plant, while at full capacity was completed. That marked the beginning of the coastal park covers the remaining 225 ha. 08 _CONTENTS MagazineSUEZ ENVIRONNEMENT is published by SUEZ ENVIRONNEMENT. Tour CB 21 16, place de l’Iris 92040 Paris la Défense, France.

PUBLISHING DIRECTOR: Jean-Louis Chaussade.

EDITORIAL DIRECTORS: Frédérique Raoult, Nathalie Parinaud-Gouédard. 02 PORTFOLIO 18 IN BRIEF EDITOR-IN-CHIEF: Melbourne: water, water everywhere! A look back on the latest news from Méloé Debiais. A closer look at the largest SUEZ ENVIRONNEMENT. ISSN NUMBER: 2108-3762. seawater desalination plant 18 In France in the Southern Hemisphere. 20 Around the world COVER: © CHAT ROBERTS/CORBIS DESIGN: 10 INNOVATIONS 22 SOLIDARITY INITIATIVES 55, rue d’Amsterdam, 75008 Paris. Innovative, ecological treatment Transferring know-how Tel: 01 53 32 56 29. A look back at the implementation Focus on the ParisTech EDITORIAL TEAM: Nelly Buffon, Cécile Collette, by Degrémont Industry of a BTEX “SUEZ ENVIRONNEMENT/ Florence Donnarel, Emmanuelle Gautier, stripping process. WATER FOR ALL” Chair. Cécile Perrin, Olivier Sauvy, Ingrid Seguel.

DEPUTY EDITOR-IN-CHIEF: 11 TALENTS 24 EYEWITNESS Hélène Odoux. Emmanuelle Brisemur, Private investors: Moving towards Degrémont in Qatar sustainable solutions? THE FOLLOWING PEOPLE CONTRIBUTED A meeting on Qatari soil with Interview with Raj Agrawal, Director of TO THIS ISSUE: Anne Couderc, Constance Covillard, a woman of character. North American Infrastructure at KKR. Hugues d’Antin, Gaëlle Darras, Jasmin Ellik, Johana Fergani, Natacha Grondin, Rich Henning, 12 CHALLENGES 27 INNOVATIONS Florence Humeau, Éléonore de Larboust, Simon Lee, Sevashree Mohaptra, Abderrazak Safety at Vivacity, for sustainable projects Moussadek, Hélène Parent, Anne-Laure Paté, SUEZ ENVIRONNEMENT A tool for urban planning implemented Madeline Power, Sabine Rous. Status update and perspectives with by SAFEGE. Jean-Marc Laouchez and Ivan Boissières. TRANSLATION: RR Donnelley. 28 SPECIAL REPORT PRODUCTION MANAGER: 16 TALENTS When international activity takes Bruno Garnault. Laure Girodet, SAFEGE on another dimension The path taken by an executive Consolidation, conquering new PRINT RUN: 20,000 copies who has grown up with the Group. markets, developing its range... PRINTER: SIRA SUEZ ENVIRONNEMENT faces 46, rue Constantin-Pecqueur new challenges as it continues its 95150 Taverny Tel: 01 34 18 62 00 17 INNOVATIONS international expansion. This document is printed Robotised sorting, on PEFC paper. 10-31-1342. a model for the future? 38 TALENTS SITA Suomi innovates Shyam Bhan, in the high-tech recycling sector. SUEZ ENVIRONNEMENT India The director of the new entity takes a look back over his career and how water and waste is managed in his country. Printed by an Impim’Vert-certified printer on paper from sustainably managed forests. 39 INNOVATIONS Solar Active System, a collaborative innovation You can write to us at: [email protected] Focus on the “2-in-1” solar panel. 40 TALENTS Carlos Campos, CIRSEE Proﬁ le of the new director of the Group’s main research and technological centre of expertise. 41 MILESTONES Must-sees on the web, trends and some dates for your diary. 42 PERSPECTIVES François Ghislain Morillion

© LOTTA NIEMINEN © LOTTA and Sébastien Kopp, creators of the Veja brand 28“With nearly 80,000 employees in seventy countries across The story of Veja, the fair-trade sports five continents, SUEZ ENVIRONNEMENT is a global player shoe company. YOU CAN FIND US ON: in the water and waste sectors.” WEB w www.suez-environnement.fr EMAG w www.emag. suez-environnement.com/ TV w www.suez-environnement.tv YOUTUBE w www.youtube.com/ w As you read the magazine, scan the QR codes with user/suezenvironnement your QR code reader to see videos or websites related TWITTER w twitter.com/suezenv to the subject (mobile Internet connection charges apply). No.12 - MARCH 2013 EDITORIAL_ 09

Dear readers,

© STÉPHANE DE BOURGIES / ABACAPRESS Let me fi rst of all talk about our annual results, which we announced JEAN-LOUIS CHAUSSADE / in February. CEO OF SUEZ ENVIRONNEMENT In 2012, we saw solid operating performance, in a diffi cult economic environment in Europe. These results confi rm the relevance of our “OUR EXCELLENT model, which is based on strong expertise in our businesses as well as on our ability to adapt to their new challenges, whether technological, RESULTS CONFIRM commercial or societal. THE RELEVANCE Throughout the year, we spearheaded a dual approach to continuously improve our performance and build our future growth. In this way, OF OUR MODEL, we are continuing our transition towards more new value-added WHICH IS BASED ON SOLID services in the water sector, more recovery in the waste sector, more EXPERTISE FROM OUR industrial water and more growth across the world. BUSINESSES, AS WELL AS At the international level, which is the subject of the this issue’s special ON OUR ABILITY TO ADAPT.” report, we know how to adapt our models according to local challenges and contexts. Already established in 70 countries across fi ve continents, with nearly 80,000 employees, we aim to strengthen our presence in the world through selective investments and the development of new models for innovative contracts, such as the one in Bayonne, New Jersey with our partner KKR, which you can fi nd out about in an interview featured in this magazine.

Happy reading! 10 _INNOVATIONS SUEZ ENVIRONNEMENT MAGAZINE

“THIS IS ULTIMATELY A SIMPLE YET ORIGINAL CHEMICAL ENGINEERING PROCESS, WHERE WE SIMPLY DEFLECT BTEX (1) WITHOUT THERE BEING ANY DANGER TO THE ENVIRONMENT AND AT LOW OPERATING COSTS.”

DEGRÉMONT INDUSTRY

INNOVATIVE AND ECOLOGICAL TREATMENT FOR WATER FROM GAS EXTRACTION

WATER RESULTING FROM THE EXTRACTION OF This method has many advantages. It allows discharge stan- NATURAL GAS, commonly known as “produced water”, dards to be met, as well as considerably reducing operating contains soluble hydrocarbons and BTEX (1) in particular, which costs and enhancing the calorifi c value of BTEX. are volatile organic compounds (VOCs) that are toxic to the “In fact, some natural gas used for stripping has a higher calo- environment. The discharge of these pollutants into the envi- rifi c value, due to the increased rate of BTEX”, says Cathy Fuchs. ronment is heavily regulated. Degrémont Industry, through Ondeo IS has already signed a contract to treat produced water Ondeo IS, has created an innovative process for the treatment from a gas production facility capable of distributing an output of this type of water. Rather than releasing the pollutants into of up to 500 MMscfd (2) of gas per day. the atmosphere or into water, they are instead treated or “The outlook for this innovation which is internationally even recovered. patented, are very promising in terms of future contracts,” says The innovative technique used involves applying a treatment Cathy Fuchs. What’s more, although it was developed for gas, line to “produced water” that includes stripping the natural gas. this innovation can be applied to other types of industrial water Thanks to a stream of gas passing through the liquid against with similar characteristics... the current, the BTEX in the produced water are captured by this fl ow, thus ridding the water of these toxic compounds. (1) BTEX stands for the following aromatic chemicals: Benzene (B), Toluene (T), In this way, Ondeo IS successfully managed to divert these toxic Ethylbenzene (E), Xylenes (X) (ortho, meta and para). components, while using them to enrich natural gas. (2) Million Standard Cubic Feet per Day: the number of cubic feet per day. Unit of measurement used in the United States. In Europe we commonly use Nm3/hr (Normal Cathy Fuchs, in charge of developing the oil and gas market cubic meters per hour). Upon conversion, this fi gure is equal to 558,140 Nm3/hr. at Ondeo IS is behind this innovation : “We owe this innovative treatment line to our ability to listen to the needs and diffi culties of our customers, and to more than 20 years of experience in

© SCIENCE PICTURE CO/SUPERSTOCK/CORBIS © SCIENCE PICTURE industrial wastewater treatment”, she says. No.12 -March2013 Qatar intends to develop mass irrigation capacities. irrigation developmassto intends Qatar Todesalination. acquirerelativeindependence, agricultural operator.leadingmarket seawater prospectis Another alreadythe is operation, in managed and/or built plants wastewatertreatment four with Degrémontwhich, to key is that developmentsubstantialpotential With masterplans. its 1.7 double,from population its see will Qatar 2016, By — Qatar Degrémontin (1) Volunteer for International Experience. international interns (VIEs) threefrom apart onlyFrenchnational, the is Emmanuelle in very useful when dealing with her 120 employees. agency head in the Orleans region for Lyonnaise des Eaux comes plant previousas her position And financing. negotiate and then Indonesia, taught her to manage budgets, size up projects initial experience as a financial analyst in Hong Kong, Paris skills acquired over a thirteen-year career within the Group. Her ofnew working.” ways at 6.30 a.m. I had to learn to adapt to this new environment and to outskirts of Doha, the capital. projects, especially innew citiesthatare springinguponthe tender and the operational aspect of commercial development plant responsibility:her wastewaterunder fallstreatment plants extremely respectful.” problem for anybody here inQatar. are partners MyQatari work withthislevel of“Being awoman responsibility doesn’tposea womancharacter.aof is evenShe farthat sayso togoes as Director of Operations at Degrémont in Qatar in September seem uniqueinQatar. ButEmmanuelle Brisemur,appointed Being awomanandleaeris a situation that may are very busy… Philharmonic Orchestra, her weekends, just like her weekdays, the in tion company inFrance, lives there halfthetime.From camps aged seven, five andtwo. Herhusband, whorunsa construc - ultra-cosmopolitan emirate: 85% of inhabitants are expats. In a team made up mainly of Indians and Filipinos, and Indians of mainly up made team a In In the various facets of her mission, Emmanuelle can rely on Days start early. “Customersto sometimesmeet arrange us of operation the to related everything life, everyday In Emmanuelle moved there along with her threechildrenher withthereEmmanuelle alongmoved sanitation facilities, the emirate has drawn up ambitious ambitious up drawn has emirate the facilities, sanitation million to 3 million inhabitants. In order to upgrade upgrade orderto In inhabitants. million 3 to million management, operational pricing services during calls to desert to prestigious concerts given by the Qatari the by given concertsprestigious to desert

(1) . Thisisoflittle importance inan 2011, 2011, and and THE CULTURAL PARTICULARITIES THE CULTURAL PARTICULARITIES OF QATAR ANDITSENORMOUS OF QATAR ANDITSENORMOUS COMMERCIAL POTENTIAL.” COMMERCIAL POTENTIAL.” “I QUICKLY UNDERSTOOD “I QUICKLY UNDERSTOOD EMMANUELLE BRISEMUR/DEGRÉMONT T OPERATIONS DIRECTORINQATAR alents_ DEGRÉMONT 11

“A SAFETY SYSTEM’S STATE OF MATURITY IS OFTEN A MARKER OF THE OVERALL PERFORMANCE © PIERRE OLIVIER / PICTURES CAPA OF THE COMPANY.” JEAN-MARC LAOUCHEZ / HEALTH AND SAFETY DIRECTOR AT SUEZ ENVIRONNEMENT

SAFETY AT SUEZ ENVIRONNEMENT PEOPLE AT THE HEART OF THE CHALLENGE AND PARTICIPATING IN THE PROCESS PEOPLE, FACILITIES, WORK ORGANISATION… THE SAFETY OF PEOPLE AND PROPERTY IS A KEY PART OF THE GROUP’S SOCIAL POLICY AND STRATEGY. WITH ENCOURAGING RESULTS. SAFETY STATUS UPDATE AND PERSPECTIVES WITH JEAN-MARC-LAOUCHEZ, HEALTH AND SAFETY DIRECTOR AT SUEZ ENVIRONMENT, AND IVAN BOISSIÈRES, DIRECTOR OF THE INSTITUT POUR UNE CULTURE DE SÉCURITE INDUSTRIELLE (INSTITUTE FOR A CULTURE OF SAFETY IN INDUSTRY - ICSI). No. 12 - MARCH 2013 CHALLENGES_ 13

“RELAYED BY MANAGERS, THE IMPETUS GIVEN BY MANAGEMENT IS ESSENTIAL IN CREATING

To ensure the safety of people in most “off-site” activities, you must above all be able to anticipate human behaviour. © SÉBASTIEN CALVET / ABACAPRESS © SÉBASTIEN CALVET © GEORGE BLONSKY / ABACAPRESS © GEORGE BLONSKY

How would you defi ne the concept of safety? ICSI, A PLACE FOR REFLECTION Jean-Marc Laouchez: At SUEZ AND ACTION ENVIRONNEMENT, conducting our busi- ICSI, a non-profit association ness in a professional manner means ensur- created in 2003, has three ing the complete safety of our employees, our aims: to open up discussions customers, our subcontractors and third par- on human and social sciences, this third cor- around the various aspects of ties. In our on-site activities (water treatment nerstone is the one on which all attention is risk and provide a forum for plant, waste sorting centre, etc.), equipment focused today. dialogue and the sharing of best practices and innovation; standards, procedures and frequent checks are to contribute to improving the mainstays of solid protection against major Can we talk of a safety safety in industrial companies risks, such as fi res or road traffi c accidents. In culture? of all sizes and in all sectors; our “off-site” activities, such as waste collection to encourage the acculturation of all players within the or road works for water networks, we must be J.-M. L. : At the moment, we are laying the company to safety problems able to anticipate human behaviour (that of our foundations of a genuine safety culture within and risks. employees as well as others) through training or the Group. Today, we want the same safety awareness-raising. standards to apply across all of the countries in Ivan Boissières: Safety in major companies which we operate. is built around three cornerstones: technical In fact, beyond the heterogeneous cultural aspects, management systems and procedures, aspects, safety is a unifying theme that can be and human and organisational factors. Based understood by all. Homogeneous rules and training courses (see “Details on training for managers” p. 14), accountability of all parties, and the sharing of best practices gradually bind together a common safety culture. This is an illustration of our commitment in terms of social responsibility. A safety system’s maturity is often a marker for the overall w 14 _CHALLENGES SUEZ ENVIRONNEMENT MAGAZINE

DETAILS ON TRAINING FOR MANAGERS The creation of a safety culture begins with managers. They attend a joint training programme that is gradually deployed worldwide.

Number of managers trained in 2010, 2011 and 2012

2010 2011 2012

650 450 500

In 2012, investment in training managers (650) was in the region of `500,000. © DR © MICHEL MARTINEZ BOULANIN / ABACAPRESS

w performance of the company. Little by little, How are you spreading What are the resources safety must be recognised as one of the hall- your message? implemented? marks of our identity. I. B.: An analysis of the causes of serious J.-M. L. : To create a “safety culture”, we have J.-M. L. : Safety does not necessarily require accidents and incidents in increasingly com- established fi fteen “rules” on how to manage considerable resources. In practice, most plex facilities reveals that only a minority are health and safety. To this was added twenty or accidents are the result of organisational caused by technical faults (design, equipment), so industry standards over the years on the main failures and human errors rather than a lack of whereas the vast majority are organisational or so-called “risky” activities”: on-site traffi c plans, resources. The idea is thus to concentrate on behavioural in origin, factors common to all consignment, waste collection, confi ned spaces the organisation of work and focus our training companies regardless of their line of business. and so on. efforts on improving individual behaviour and As such, regulation, which is diverse, is not To implement all of this in the fi eld, we work involving managers. enough on its own. Progress in terms of indus- with an “inner circle” of 32 Business Units (BU) To do so, risk analyses are conducted within trial safety can only come from the companies or subsidiaries. Annual action plans defi ne pri- the BU based on the Group’s rules which themselves, within which a true safety culture orities, while assessments and regular audits lead to solutions that are tailored to the local must be developed. ensure monitoring of satisfactory deployment. context. Answers can be found through If we look at the history of safety in large indus- An annual seminar of the sector rounds off this training our employees (for instance, training trial groups, we see that after progress in technical safety scheme. In addition, any new company on a driving simulator for our waste collection and organisational domains, today the trend is to joining the Group undergoes an audit of its lorry drivers in the Netherlands and Germany) study individual behaviour so as to reduce risks. “safety culture”. or by informing local people (distribution I. B.: Safety should not be considered as a fi eld of 1,500 instructional road safety DVDs to separate from that of corporate life. Improving teachers in Germany). The organisation of safety means optimising the overall perfor- work can be improved by optimising our waste mance of the company. In order to obtain good collection routes or by working to improve the results, this concept must fi lter right through use of machinery at our sorting sites. the entire organisation. Relayed by the man- When this risk analysis shows that works are agers, the impetus given by management is necessary, fi nancial resources can be released as essential in creating the conditions for success. part of action plans, which are often spread over a No. 12 - MARCH 2013 CHALLENGES_ 15

To minimise accidents, we must focus on the organisation of work and on training teams, while involving managers. © GEORGE BLONSKY / ABACAPRESS

I. B.: After a phase of continuous improvement, major groups such as SUEZ DEGRÉMONT ENVIRONNEMENT are today at a plateau. SERVICES: AN The consensus between scientists and industri- EXAMPLE THAT CAN alists clearly indicates that in order to improve BE REPLICATED behaviour, staff must be trained at all levels of the hierarchy, with the relevance of systems of work Taking into account the human factor to reduce risk is at the organisation and the development of new indica- centre of a pilot operation tors being analysed to assess the effects of change. carried out within Degrémont number of years (e.g. `1 million on a green waste Services (DS) to test the recovery site in France and `400,000 to make “safety culture diagnosis”, What are the areas for an innovative change process belt conveyors or balers safe in the Netherlands). improvement in the short developed by the ICSI. Its and medium term? objectives? To assess and Have recent results promote the development of a been satisfactory? J.-M. L. : In 2013, we will continue our grass- safety culture. To begin with, roots action involving all line managers and the ICSI drafted a diagnosis on the pilot site at Valenton J.-M. L. : We share the same observation as employees. We will base a lot of our commu- (France). The next phase the other major industrial service groups. We nications around the “10 rules that save”, new consisted of building a three- manage to regularly reduce our accident fre- behavioural recommendations from the analy- year action plan including quency rate for accidents with work stoppages, sis of fatalities over the last ten years. all the traditional safety features and adding new tools but sadly we still have fatalities. Our results I. B.: Developing a safety culture involves to them. Given the already vary according to activity, and are encouraging, ensuring that there is consistency between measurable positive impact, but there is still work to do. With a frequency rules and behaviours, between what is said and the decision was made to roll rate of around five at worldwide level (five what is done in practice, to make safety a value out the process to all sites accidents per million hours worked), SUEZ shared by everyone within the company. Safety by integrating it into training courses for managers. ENVIRONNEMENT is among the leaders is a ﬁ eld of consensus that can bring together in the water business. Group subsidiary Lydec, all of a company’s stakeholders. Even in a crisis a water distribution company in Morocco, actu- situation, investing in safety is a smart strategy. ally won the national safety prize in 2012 along with an award for its CSR procedure, following an assessment carried out for the ﬁ rst time in Morocco by Vigeo, the European expert in responsible performance. For waste, again at worldwide level, we posted an above-average performance with a frequency rate of eighteen. EENTITIES” SSAFEGE OPERATING EEVEN MOREVALUE FOR ““I WANT TOCREATE AND NEWMARKETSDIRECTORAT SAFEGE LAURE GIRODET 16 I N V A

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F O R in three years. SAFEGE’s volume ofbusiness has increased bynearly 30% for thedevelopment ofsustainable citiesandregions. SAFEGE thebenchmarkinmultidisciplinary engineering based” strategy andseveral acquisitionsthathelpmake international expansion, amore assertive “business- and energy. Thisnew dynamicwasembodiedbymajor offering thatincludeswaste, urbanplanning,mobility accelerated thedevelopment ofitsskillsinacomprehensive traditional businesses (waterandtheenvironment) and — Since 2009,SAFEGEhas strengthened itspositionin Time for diversiﬁ (2) Specialist inEnergy/Climate studies, integrated intotheGroup inSeptember2012. (1) Specialist inoceanography. and regions inFrance andinternationally. capable ofproviding totalsolutionsfor thedevelopment ofcities enhance itspositionasamulti-business strategic consultant, SUEZ ENVIRONNEMENTandGDFentities. mer basemust alsobeaccelerated, bystrengthening linkswith comprehensive offers andthedevelopment ofaprivate custo- creation oflinksandsynergies. Theconstruction ofinnovative giving identityandunitytothisnew department,through the and urbanmobility. environment, hydraulic works, marineandportfacilities, waste January 1,“business” directors intheﬁ along withtwo subsidiaries,Actimar of innovation, development, marketing andcommunication, whereworld timescales are long.” edge commercially: areal culture shockforme,coming from a confesses. thrilled,” ofsustainable solutions,Iwas development integrator thecompany intoamultidisciplinary of hisambitiontotransform building relationships andapassion for environmental businesses. management andgovernance atLydec andstrategic atSAFEGE. managerial andcommercial atLyonnaise desEaux,project to another. Indoingso,shehasdeveloped amultitudeofskills: at Lydec Morocco, Laure haslearned tomove from oneuniverse not forgetting functionalroles asDirector ofsupportfunctions des Eaux,tomore operational responsibilities asHeadofAgency, Guirkinger, whowasatthattimeChairman&CEOofLyonnaise 1996, shejoinedtheGroup andshe’s beenwithusever since... for Lyonnaise desEaux.Andassoonshegotherdegree in school, shecompleted aone-year internshipinBuenosAires fact, asayoung engineeringstudent atthePonts etChaussées brand new Strategy andNew Markets departmentatSAFEGE.In Girodet, appointedlast August attheageof40toheadup A new dynamichasbeenlaunchedtoenable SAFEGEto And thestakes are high.Theteamsmust betight-knit,thus Laure now oversees thesupportdepartmentsincharge whenBenoîtClocheret,“So toldme Chairman&CEOofSAFEGE, Throughout hercareer shehasshown energy, anappetitefor From corporate missions, asSpecialAssistant toBernard “I’VE GROWN UPWITHTHEGROUP!” “SAFEGE isanagile“SAFEGE company, constantly attheleading cation atSAFEGE SUEZ ENVIRONNEMENT (1) andExplicit elds of urban water, the elds ofurbanwater,the SosaysLaure (2) and, since and,since MAGAZINE she she

We hope that start-up of the process line is early summer 2013”, SITA SUOMI says Jorma Kangas, Chairman & CEO of SITA Suomi, which is now the world leader in robotised sorting. The ZRR robot, developed by the ZenRobotics research team, ROBOT – BASED SORTING – identifi es waste with the help of various sensors, including 3D scanners. It then automatically separates the raw materials MODEL FOR THE FUTURE ? from the unwanted waste. The analysis is precise and the recovery efficient. Through artificial intelligence, the system is controlled autonomously like a human brain. WASTE RECOVERY IS NOW A MAJOR ISSUE. However, “This system can potentially be used in all plants receiving in order to recover waste effi ciently, it must be sorted correctly construction waste.” Indeed, there are many advantages and in the fi rst place. State-of-the-art technologies and innova- minimal maintenance requirements. “The robot doesn’t take tive new systems are therefore being developed to optimise up much space and it’s safer than doing the work manually. w Discover selective sorting. What’s more, compared with traditional sorting, the cost is low. more about SITA Suomi (Finland), a pioneer in this field, is about to We have high hopes that these robots will give us a cutting-edge. SITA Suomi integrate the very fi rst multi-robot sorting process into its recy- With the prototype, we achieved a waste recovery rate of and the ZenRobotics cling process. This technological innovation was designed by 75% to 85%. Our ultimate aim is to achieve a rate of 95%”, Jorma robot in Finnish start-up ZenRobotics, who are specialists in high-tech Kangas adds. this video. recycling. This logistical development is the result of more than three years of successful collaboration. “Our teams met in 2009 and we decided to start a pilot project with ZenRobotics for sorting construction waste. Our aim was to achieve more qualitative, faster sorting. After two years of inten- ABOUT sive work and discussions, we created a prototype in 2011. We have SITA SUOMI now purchased a construction waste sorting function from SITA Suomi (Finland in Finnish) is a ZenRobotics as a part of our construction waste process line. subsidiary of SUEZ ENVIRONNEMENT, the European leader in comprehensive waste management. SITA Suomi employs 400 staff. The company posted revenues of `80million in 2012. © ZEN ROBOTICS 18 SUEZ ENVIRONNEMENT MAGAZINE News from France…

VAUCLUSE NEW BIOGAS RECOVERY UNIT On 14 January, SITA GDF SUEZ Méditerranée inaugurated a biogas recovery unit at the waste treatment plant in Entraigues-sur-la-Sorgue. LAUNCH OF A Since 2001, SITA has TEACHING TOOL developed six solutions for waste management, GDF SUEZ innovates by launching a including a refuse treatment teaching tool designed in partnership with centre, a sorting centre and a education professionals, available at biological sludge recovery unit. This multi-business www. japprends- .fr. © DR hub, now equipped with a Teachers and primary and secondary school ÎLE-DE-FRANCE biogas energy recovery unit, pupils will be able to access free interactive AIR FRANCE RECYCLES has become a producer of tools. The first serious, but fun, energy ITS UNIFORMS renewable energy. game developed for secondary school pupils By recovering waste from the From 21 January to 15 March 2013, French Vaucluse area, the site in France asks players to balance power airline Air France launched an operation to should produce 10,000 MWh generation with the demand of their virtual collect used uniforms from its ground staff and per year, equivalent to the population. cabin crew based at the Paris-Orly and Paris- electricity consumption of In addition, an inter-school competition Charles de Gaulle airports. some 1,770 homes. SITA France and uniform supplier CEPOVETT, based around “My city of tomorrow 2020” partners in the operation, took responsibility will reward the 20 best suggestions for a for managing the operation, collection, sorting more sustainable city. The awards ceremony and recycling. The clothing recovered, includ- will take place in June! ing old uniforms and possibly some items of personal clothing, are to be destroyed, before being turned into fibre insulation for vehicles at a specialised recycling plant. The experience is a first for Air France, and it CHAMPAGNE may be repeated depending on the level of par- TWO NEW LOCAL GOVERNANCE CHARTERS ticipation. FOR WATER Over time, the operation may be extended to cover all 35,000 of the company’s employees, In January, Espelette, in the Basque Country, and the resort representing a potential 30 tonnes of clothing of Saisies in Savoie, signed their local governance charter collected. That’s enough to equip 1,350 vehicles with for water with Lyonnaise des Eaux. insulation material. These contracts show the commitment made by local authorities and their willingness to involve users in water management, in particular to cope with seasonal tourism.

w Watch the video report on the Air France uniform recycling. No. 12 - MARCH 2013 IN BRIEF_ 19 SOLID PERFORMANCE +1,8 % gross growth in revenues made `15,102 m compared to 2011. in revenues made This figure has increased across all segments and by SUEZ ENVIRONNEMENT in 2012. demonstrates our solid economic performance despite a difficult economic climate in Europe.

The results, which are in line with our objectives, underpin the Group’s growth prospects in 2013. © SIMON LOURIÉ

c UP

REIMS MÉTROPOLE © FABERNOVEL CONFIRMS ITS TRUST IN SITA “THE 17” Chazelle, a SITA subsidiary, SPACE OF SKILL has just won a contract VALORISATION worth `5 million to manage AND EXPERTISE OF operations at the Reims Métropole sorting centre. SUEZ ENVIRONNEMENT © DEGRÉMONT This is yet another major ALSACE Since its opening in May 2012, “Le 17” - named win for SITA, after it was OUT OF THE ORDINARY: A in reference to its location in the SUEZ awarded the household ENVIRONNMENT’s HQ at the CB21 Tower in TREATMENT PLANT IS RECYCLING waste collection and selective La Défense, Paris - has already welcomed more SAUERKRAUT JUICE! collection contracts for the than 1,700 visitors: customers, partners, inves- area’s 211,000 inhabitants. tors, shareholders... A wastewater treatment plant with a twist was inaugu- “Le 17” is an experience-based immersive site rated in November… Located in the town of Meistratzheim SAFEGE dealing with the challenges and businesses of in the Ehn basin in the Lower Rhine region, its purpose is ACQUIRES EXPLICIT water and waste. Invited visitors are guided along both to collect and clean up wastewater from eleven munic- The acquisition of this leading a journey of discovery where ideas abound and ipalities, and to treat effluents from sauerkraut manufac- player in energy-climate the sharing of expertise meets. This is a unique turing plants in the area, which account for nearly 70% of consultancy and studies experience at the heart of the Group’s know-how French sauerkraut production! Commissioned by the strengthens the skills of in terms of innovation and sustainable develop- Multiple Vocation Inter-Municipal Union (SIVOM), designed SAFEGE in both energy and ment. Both businesses are explained, and and built by Degrémont and operated by Lyonnaise des adapting to climate change. then demonstrations are used to give an in-depth Eaux, both SUEZ ENVIRONNEMENT subsidiaries, this new With this recognised know- presentation of SUEZ ENVIRONNEMENT’s wastewater treatment plant is high-performance in terms how spanning more than services, solutions and offers. of energy and ecology, as well as being most original... 20 years, the engineering subsidiary of SUEZ SUSTAINABLE DEVELOPMENT PALLET RECYCLING ENVIRONMENT can thus NEW 2012-2016 HOME PALETT, broaden its offer for the ROADMAP sustainable development SUEZ ENVIRONNEMENT published its first REPAIRS DAMAGED PALLETS of cities and regions, roadmap for Sustainable Development in 2008. ANYWHERE covering all their energy and By the end of 2012, the Group had already achieved environmental challenges, In February, EPALIA, a SITA subsidiary, launched Home Palett, a a number of the objectives set. Presented to the from strategic reflection to mobile workshop for sorting and repairing pallets. The workshop Board of Directors on 12 December, phase two operational support. can be installed directly at a customer’s premises for the time (2012-2016) of the roadmap sets out the ambitions needed to repair their stock of damaged pallets. Operational and of SUEZ ENVIRONMENT, focusing on three pri- innovative, the service ensures immediate availability of pallets, orities and twelve commitments. Through the lowers repair costs, and reduces the carbon footprint of the com- management of major water and waste cycles, pany concerned. EPALIA is thus expanding its services to industrial the Group wants to contribute to more sustainable customers, after launching Bank Palett in November 2011, which growth and to support its customers, employees provides a stock of pallets anywhere in France. and regions in the transition to a green economy. 20 SUEZ ENVIRONNEMENT MAGAZINE … and around the world

UNITED KINGDOM SITA UK WINS c CONTRACT WORTH `130 MILLION UP On 1 February, SITA UK, a subsidiary of SUEZ ENVIRONNEMENT, annouced it had been ECO-GESTURES AT WORK IN THE UK awarded the contract to manage household SITA UK launches the waste in County Durham, north east England. www. yourgreensteps.co.uk 140,000 tonnes of waste per year will now website to provide better help to generate 10 MW of electricity in a guidance for its corporate plant under construction on Teesside. This is clients and encourage them to enough to power 17,000 homes. take environmentally-friendly This eight-year, `130 million contract may be actions in the workplace. extended by a further four years and total © MARCEL MALHERBE/ARCAID/CORBIS The result is improved environmental performance `185 million. HONG KONG and a reduced carbon footprint. STRENGTHENED DEVELOPMENT FOR THE WASTE SECTOR IN ASIA `220 million is the combined total value of the two ten-year contracts SITA Waste Services Ltd has just signed in Hong Kong. These contracts cover the transfer of more than 3,500 tonnes of waste per day to treatment and disposal sites, as well as the daily recycling of 470 tonnes of food oil to make biofuel. The subsidiary is now managing 2 landfills, 12 waste transfer stations, 5 Restored Landfills and also provides waste collec-

© DR tion, composting and recycling services for the city. © DR UNITED STATES UNITED WATER REWARDED FOR ITS CHINA WORKPLACE HEALTH FIRST PARTNERSHIP FOR AND SAFETY POLICY SINO FRENCH WATER IN SICHUAN In February, the wastewater treatment On 31 January, Sino French Water, a 50%-owned subsidiary of SUEZ plant in Wixom, serving 3,600 people in ENVIRONNEMENT, formed a joint venture with Sichuan Dayi Water Company Michigan, was rewarded for its excellence in Limited for wastewater management in Shuangliu County for an expected revenue terms of workplace health and safety by the of `156 million over 25 years. The new company, which is 65% owned by the Michigan Occupational Safety and Health SUEZ ENVIRONNEMENT subsidiary, will operate eight wastewater treatment plants Administration (MIOSHA). across the county. It will also build and operate a wastewater treatment plant in the By making occupational health and safety Tianfu area, which is currently enjoying a population boom. This strategic partnership its number-one priority, the United Water strengthens the opportunity to develop SUEZ ENVIRONNEMENT’s water site’s incident rate has been below the aver- management services in the very dynamic province of Sichuan, as well as new age for firms in the region for more than cooperation projects in the environmental protection field. three years. No. 12 - MARCH 2013 IN BRIEF_ 21

UNITED KINGDOM AQUALOGY UK USES ICE TO CLEAN LONDON’S PIPES 25,000 litres of ice will be provided by Aqualogy UK, a subsidiary of Agbar, to clean the water distribution network in north-west London. The ice-cleaning technique, which is faster and more

efficient, will help rid the pipes of sediment and biofilm, from the © DR treatment plants at Roydon and Blackford to the far reaches of CZECH REPUBLIC the network. SITA CZ LAUNCHES The contract was signed with Affinity Water, Britain’s largest water supplier, which serves more than 3.2 million people. SMART COLLECTION TRUCKS

© CHRIS MARTIN/ /DESIGN PICS/CORBIS SITA CZ now fits its collection trucks with a fully-automated monitoring system, thus further developing the Smart Containers c project, which was awarded the Grand Prize at the Innovation Awards in 2012. GDF SUEZ UP Information from containers equipped with RFID (Radio Frequency IDentification) chips is sent via GPS from trucks to an online ANOTHER CONTRACT database. A true collection management MOROCCO FOR AQUALOGY tool, this monitoring system is currently in GDF SUEZ TO BUILD Aqualogy Environment has its test phase. won the contract for water AND OPERATE AFRICA’S LARGEST health monitoring at Tenerife WIND FARM South Airport. This one-year renewable In February, GDF SUEZ announced the construction contract was signed with AENA, of the Tarfaya wind farm, in collaboration with the public body responsible for Moroccan energy company Nareva Holding. Located operating Spanish airports. in southern Morocco, this farm with a capacity of 300 MW will account for 40% of the country’s total HYBRID ACQUISITION wind power capacity. It is the largest wind farm in IN SWEDEN Africa and the largest ever built by GDF SUEZ. SITA Sweden has just taken

A twenty-year electricity purchase contract was delivery of a new diesel- © TIBOR BOGNAR/CORBIS signed with the National Office of Electricity and electric hybrid collection truck. POLAND Drinking Water in Morocco. Commissioning is It creates no noise pollution, scheduled for late 2014. and through its collection of SITA POLSKA: FIRST This project is part of the Group’s strategy. recyclable waste, it reduces PUBLIC-PRIVATE The Group already owns 3,907 MW of wind power CO emissions and uses up to 2 PARTNERSHIP IN THE generation across the world and has entered into 30% less fuel. exclusive negotiations for the construction of a ENERGY FROM WASTE 94 MW wind farm in South Africa, known as West DEGRÉMONT: SECTOR Coast 1. OPERATIONAL SPEED IN THE PRODUCTION In December 2012, the city of Poznan´, OF DRINKING WATER Poland, awarded the contract to build and Drinking water production operate for 25 years an energy from waste DEGRÉMONT began on 7 February near plant to SITA Zielona Energia, a joint-venture A 3D ONLINE ENERGY Riyadh, Saudi Arabia, only four between SITA Polska, a subsidiary of SUEZ EFFICIENCY OFFER months after the signing of ENIVRONNEMENT, and Marguerite Waste two supply contracts worth Polska, a subsidiary of the Marguerite fund. Degrémont, a subsidiary of SUEZ ENVIRONNEMENT, responds `40 million. These contracts Estimated to `180 million, the construction to its customers’ energy saving issues. To present its various cover 14 sites around the of this plant, with a capacity of 210,000 tons solutions, the www.degremont.com website now includes four city and the installation of per year, should generate revenue of 3D platforms which guide users through the very heart of its 33 modular units for the `850 million for SITA Zielona Energia during treatment plants. Visitors can discover all of the strategies used treatment of brackish water. the period of operation. to improve energy efficiency in water treatment, for plants This first unit produces drinking SITA Zielona Energia thus won the largest producing drinking water, plants using desalination by reverse water for 3,000 households, public-private partnership tender ever osmosis or wastewater treatment plants. which were previously supplied conducted in Poland and the first to be by tanker truck. conducted in the energy from waste sector. 22 _SOLIDARITY INITIATIVES SUEZ ENVIRONNEMENT MAGAZINE © PATRICK ROBERT / CORBIS © PATRICK 01_ THE PARISTECH ”SUEZ ENVIRONNEMENT/ WATER FOR ALL” CHAIR TRANSFERRING KNOW-HOW IN 2008, SUEZ ENVIRONNEMENT, PARISTECH (1) AND THE SUEZ ENVIRONNEMENT INITIATIVES FUND (2) LAUNCHED THE PARISTECH ”SUEZ ENVIRONNEMENT - WATER FOR ALL” TEACHING AND RESEARCH CHAIR. IT AIMS TO REINFORCE THE SKILLS OF FUTURE MANAGERS FROM DEVELOPING, EMERGING OR TRANSITIONAL COUNTRIES TO FACILITATE UNIVERSAL, SUSTAINABLE ACCESS TO WATER AND WASTE TREATMENT IN THEIR COUNTRY OF ORIGIN.

SUPPORTED BY TWO OF THE MOST To this end, the Chair created a specialised PRESTIGIOUS FRENCH ACADEMIC International Executive Masters programme INSTITUTIONS, AgroParisTech for teaching (the “OpT Masters”) (4). Since its inception and MINES ParisTech for research, this in 2009, it has trained some forty professionals Chair aims to be an international reference from around the world, each with their own hub in an attempt to achieve the Millennium very different issues and needs. “More than Development Goals (3). This partnership simply experts or skilled technicians, the is one of SUEZ ENVIRONNEMENT’s trained professionals are also able to engage contributions to the implementation of the a strategic long-term procedure to inspire and

w Watch “Shared knowledge”, “right to water” recognised as a fundamental drive change in order to achieve the objectives the SUEZ ENVIRONNEMENT human right in 2010 by the General Assembly of this great human adventure: water for all”, Initiatives Fund’s web documentary. of the United Nations. says Jean-Antoine Faby, Director of the Chair. No.12 - MARCH 2013 SOLIDARITY INITIATIVES_ 23

01_ The teaching Chair founded in 02_ The OpT Masters to Class of 2013-14. 2008 aims make water accessible for 03_ The Masters is taught at the everyone around the world. AgroParisTech Centre in Montpellier, France, since its launch in 2009.

ZAKARIA A. LAWANDJI / DIRECTOR OF SALES AND MARKETING AT SOCIÉTÉ TCHADIENNE DES EAUX (STE) IN CHAD “BEFORE I TOOK THIS MASTERS COURSE, I LOOKED AT THE HORIZON FROM A CHAIR… NOW I LOOK AT IT FROM THE TOP OF A HILL.”

community at all costs and to turn it into an operational project. I am so glad that I met people like Jacques Bertrand, my coach, Jean-Antoine Faby and all the other student coaches. They are exceptional people that taught us so much. This Masters course has given me the tools to © DR lead the water-based change in my When he started the specialised country. Masters in September2011, this As part of the strategic action plan water treatment and industrial that I have drawn up, our mission fluids engineer had 14 years’ will be to ensure and develop the experience as a Department Head in operation of drinking water services in the Chadian water company, Société Chad’s urban centres and to complete 02_ © DR Tchadienne des Eaux. Following the infrastructures wherever necessary. course, he received a promotion, This project covers nine major cities and he has held the position of in Chad, representing more than one Director of Sales and Marketing million inhabitants. It is expected since January 2013. Here is his view. to raise the water service rate from “This training course completely 23% to 100%. For now, negotiations transformed me. First of all, I met are progressing quite well. I was some wonderful people, who could recently promoted to Director of Sales help to achieve what we thought and Marketing and I am hopeful that was impossible: making our the budget adopted to implement this dreams come true! They turned ambitious project will enable there to us into ‘warriors’, ready to defend be a 24/7 drinking water connection

03_ © DR the commitment we have to the for all by 2025.”

“Beyond the technical and operational aspects, students arrive with a problem and leave not return to their department. This is the positive the coaching we provide also enables students only with new achievements but also with a outcome of the participation of numerous to become aware of their possibilities, and build solution,” says Myriam Bincaille, Managing partners (5), as well as the commitment, their confi dence.” Director of the SUEZ ENVIRONNEMENT dynamism and huge motivation aroused by the Taught at the Montpellier AgroParisTech Initiatives Fund. noble subject of ‘Water for All”, Jean-Antoine centre, the Masters course actually trains Thanks to the SUEZ ENVIRONNEMENT Faby concludes. professionals with over ten years’ experience Initiatives Fund which has devoted a and who are destined to become future substantial budget of `2 million over six directors. The Chair provides an innovative years and to the 120 specialist speakers link between training in service management (more than a third of whom are SUEZ and a research programme born of questions ENVIRONNEMENT employees in skills- (1) Paris-Tech is a Research and Teaching hub bringing together arising in the field. After 18 months of based sponsorship), the Chair has already twelve of the most prestigious French higher education institutions, including AgroParisTech and MINES ParisTech. training shared between lessons and field strengthened the managerial skills of (2) The SUEZ ENVIRONNEMENT Water for all Foundation at the Institut de France was superseded by the “SUEZ missions, students must draft a diagnosis professionals from over 30 different countries. ENVIRONNEMENT Initiatives Fund” on 1 January 2011. and an operational action plan for the “The transfer of skills and know-how is essential It aims to perpetuate the achievements of the Fundation. (3) The Millennium Development Goals (MDG) were adopted in department in which they work in their for us. Our great pride in a project is to see that 2000 by UN Member States, who agreed to strive to achieve own country. Each student is supervised by we are no longer needed when it is fi nished,” them by 2015. (4) The OpT Masters course alternates between an individual coach responsible for guiding confirms Myriam Bincaille. “Today, good French-speaking and English-speaking students. them towards achieving this mission. results are measured by the positions of higher (5) The French Development Agency, and the water agencies of Seine-Normandy, Rhone-Mediterranean and Corsica, and the “The benefit of this training course is that responsibility offered to our students when they Languedoc Roussillon region are also partners of the Chair. refl Head ofNorthAmerican Infrastructure, of Bayonne,NewJersey. public-private partnership withtheCity States, haveenteredintoanewtypeof SUEZ ENVIRONNEMENTbasedintheUnited and UnitedWater, The privateequitygroupfundKKR RAJ AGRAWAL AND CITIES AMERICA’S TOWNS SOLUTION FOR A SUSTAINABLE 24 ects onthisinnovativepartnership.

PRIVATE INVESTMENT _EYEWITNESS / KKR'S HEADOFNORTHAMERICANINFRASTRUCTURE Pincus andhasworked withThayer Capital Partners andMcKinsey &Company. Investment CorpandDollarGeneral, hehasalsobeenaVice-President withWarburg A memberoftheBoards ofDirectors ofColonial Pipeline,ElPaso Midstream and isthecompany’s HeadofNorthAmericanInfrastructure. Raj Agrawal isagraduate ofStanford University. HejoinedKKRin2006 a subsidiary of a subsidiaryof Raj Agrawal, KKR’s Raj Agrawal,KKR’s (1) © DR

SUEZ ENVIRONNEMENT MAGAZINE No.12 - MARCH 2013 EYEWITNESS_ 25

The partnership between KKR and United Water will enable Bayonne to renovate its infrastructure and provide a high-quality service to its residents. This city is now an example for many other US cities.

10% of the capital respectively, with the particular feature that the City of Bayonne retains ownership of the infrastructure. This agreement has also been awarded for a very long period: 40 years. Generally speaking, operational agreements are drawn up for periods of between three to ten years maximum. This long-term perspective allows us to make effective infrastructure decisions and to take a long-term view of the investments we make. This is precisely what municipal authorities, with budgets that are voted on annually, are simply unable to do. Through this partnership, we have therefore been able to present the heavily indebted City of Bayonne with an innovative and creative solution, and to provide the city with a way out of the impasse in which it found itself. The cornerstone of this unique project is the combination of United Water’s fi eld of expertise, water system management, with ours, in the fi nancial sector. United Water’s reliability and credibility were also a key factor in our decision to invest in this sector. The goal is two-fold: it aims at supporting the our role as an investor, the environment is now city in investing in its infrastructure leading to one of our primary concerns. We recognise that How can private funding benefi t America’s improved service reliability and water quality every environmental challenge also involves towns and cities? while maintaining rate stability. Also, it is meant a financial challenge. The agreement with The economic crisis has left America’s towns to provide improved operation and maintenance Bayonne is also helping to develop our reputation and cities facing structural liquidity problems. of its water and wastewater systems by an for being a responsible investor (2). You could still The lack of Municipal and Federal government experienced water services fi rm. say it was a fi rst, though, as it’s the fi rst public- liquidity has acted as a brake on investment private partnership that we have established in at a time when it was badly needed. In fact, in Within the context of this partnership, KKR has the water sector. And it’s undoubtedly a huge many towns and cities, water infrastructures have invested in the water and environment sectors. challenge for us, given that it means providing become obsolete. In some cases they haven’t Is this a fi rst for the company? the residents of Bayonne with high-quality water been updated for over fi fty years! The Federal Raj Agrawal: Not quite. We’ve been on and wastewater services for the next 40 years! government estimates that renovating water the lookout for opportunities in this area for a number of years. In addition, we have also What makes it such an innovative agreement? recently invested heavily in this sector in Asia. It’s certainly a novel concession model in that Furthermore, in 2008, we launched a ‘green it separates the management of assets from portfolio programme’ in partnership with the operational activities (3). The agreement is based Environmental Defense Fund (EDF), an on the concession of water and wastewater association which helps companies to defi ne and services to a company in which KKR and United draw up their sustainable development policy. In Water, as external funding bodies, hold 90% and w 26 _EYEWITNESS SUEZ ENVIRONNEMENT MAGAZINE

BERTRAND CAMUS / CEO OF UNITED WATER “LONG-TERM FUNDING AND RENOWNED EXPERTISE CREATE AN INNOVATIVE, RELIABLE SOLUTION.” “We are one of the US market both the Clinton Global Initiative (CGI) leaders for water and wastewater and by the professionals at American services. Coupled with private sector Water Summit, the SOLUTIONSM investment, our innovative solutions model introduces an innovative and our ability to improve water quality cross-functional approach and a new mean that our clients can respond financial model to address problems effectively to the challenges they face. faced by many American municipal The active involvement of KKR and authorities. The model offered by KKR and United Water in this joint venture This type of agreement is a cost- United Water for the City of Bayonne offers a new, long-term solution for effective option for US towns and received an award at the Clinton Global Initiative in September 2012 meeting water requirements now and cities because they are able, in a (Bertrand Camus, CEO United Water, in the future. Recognised in 2012 by single transaction, to entrust water pictured third from right). management to a professional operator, ensure that their future requirements are appropriately funded and recover their financial capacity by reducing their debt. Public bodies are therefore released from balance sheet pressures and can also make investment available for other public services. United Water’s SOLUTIONSM aims to modernise water treatment systems and operate them more efficiently. This is the first time we have worked with KKR and we certainly hope to repeat the experience. We share the aim of developing global solutions to strengthen the performance of businesses working to protect the environment. And with this new business model, as with the Alliance or the Management Contract, SUEZ ENVIRONNEMENT w infrastructures will require more the life of the agreement to manage, repair and is continuing to pursue international than $600 billion of investment over the renovate the networks. Without external funding growth which strikes a balance next 20 years. This new type of partnership or expertise in such a specialised fi eld, the City between economic profitability and enables municipal authorities to improve their of Bayonne would have found it impossible to sustainable development, in line with infrastructures at the same time as reducing modernise its infrastructure. That’s the benefi t of the Group’s strategy.’ their debt. this agreement. In the US, private investors now represent a solution to the growing diffi culties that Can you tell us more about the key aspects municipal authorities encounter in upgrading of the agreement which mean that the and modernising their infrastructure when they investment includes an element of public lack both the funding and the technology to do so. We are beginning to bring about real change, debt reduction alongside an improvement because the increasing scarcity of water resources in infrastructure? Can the agreement signed with Bayonne start and the depletion of public funds mean that the Yes, that’s right. We were awarded the concession to bring about real change in the funding of role of the private sector is more important than on the basis of a signifi cant investment, totalling public infrastructure development and ever. Continuity, reliability and accountability are $257 million. $150 million has been earmarked environmental protection? the watchwords that underpin our involvement in to reduce the City of Bayonne’s debt burden, Most certainly! We and United Water have made such a vital sector as water. and $107 million will be invested throughout a commitment to provide the City of Bayonne with high-quality service. Our hopes of success are well-founded, because we’ve joined forces with a partner who has the respect of the public (1) Founded in 1976, the American investment fund KKR owes its name to its three founders, Jerome Kohlberg, Jr., Henry Kravis and authorities, both on an operational level and for George R. Roberts. It is the world’s biggest investment fund. its protection of the environment. (2) KKR has signed up to the United Nations Principles for Responsible Investment (UN PRI). The City of Bayonne has become the example (3) An asset is a fi nancial resource with a monetary value, defi ned as that others will want to follow. Many other towns all of the property that is owned by a business. Operational activities are the usual, day-to-day business of the company, excluding and cities are keeping a close eye on this initiative. fi nancial activities. No. 12 - MARCH 2013 INNOVATIONS_ 27

SAFEGE A TOOL FOR DESIGNING SUSTAINABLE DEVELOPMENT PROJECTS

WATER MANAGEMENT, ENERGY CONSUMPTION enhance our project management and environmental consultancy MONITORING, waste management optimisation, inhabitants’ services,” says Camille Poiroux. comfort, respect for biodiversity... For a local authority, there are “Vivacity® allows us to meet the increasingly frequent desires of numerous sustainable development challenges to consider when local authorities to see sustainable development integrated within it comes to development projects. our technical study services.” Thanks to its experience and myriad of expertise in the area, Thanks to Vivacity®, SAFEGE has an asset which sets it apart SAFEGE launched Vivacity®, an innovative approach, in late 2012. from its competitors and strengthens its position in the fi eld of This methodology enables territorial challenges to be identifi ed sustainable urban development, its main ambition for 2015. and prioritised, to set specifi c targets and to assess development projects in the context of sustainable development, in consultation with stakeholders. “This approach allows us to conduct sustainable development projects in a spirit of teaching and consultation. It can be , To find out more: used as a support for workshops, working groups or public meetings” w www.safege.fr explains Camille Poiroux, Vivacity® design pilot within the SAFEGE Research, Innovation and Sustainable Development department. A checklist of key criteria helps to ensure that all topics have been SAFEGE DESIGNS ECO-NEIGHBOURHOODS considered. A grid sets out quantifi ed goals and monitoring indica- A reference player in sustainable urban development, SAFEGE tors. A chart allows a visual comparison to be made of the sustain- develops decision support tools and assessment methods to able development performance of several separate projects, or of support its customers in their choices when facing the complex challenges of sustainable development, thus helping them to the same project over time. This new key for reading development become leaders in environmental performance. scenarios facilitates the inclusion of sustainable development in local authorities’ selection and decision criteria. Vivacity® is perfectly consistent with existing repositories and certifi cation processes: eco-neighbourhood label, environmental “VIVACITY® IS A TEACHING TOOL ALLOWING urban planning approach, HQE development. “This methodology is based on our experiences of providing support THE DESIGN OF CONSISTENT, SUSTAINABLE for territories in terms of sustainable development to structure and URBAN DEVELOPMENT PROJECTS.” © DR 28 _SPECIAL REPORT SUEZ ENVIRONNEMENT MAGAZINE

31% of the Group's revenues were generated internationally (1) in 2012

(1) Outside Europe No.12 - MARCH 2013 SPECIAL REPORT_ 29 AT SUEZ ENVIRONNEMENT, INTERNATIONAL DEVELOPMENT TAKES ON ANOTHER DIMENSION TO SUPPORT ITS GROWTH DYNAMIC, SUEZ ENVIRONNEMENT IS CONTINUING ITS INTERNATIONAL EXPANSION THROUGH THE CONSOLIDATION OF ITS HISTORICAL PRESENCE, THE CONQUEST OF NEW GEOGRAPHICAL MARKETS AND THE EXPANSION OF ITS OFFER FOR INDUSTRIAL CUSTOMERS. © FOTOFEELING/WESTEND61/CORBIS 30 _SPECIAL REPORT SUEZ ENVIRONNEMENT MAGAZINE

01_ / ABACAPRESS WACK © PATRICK 02_ 03_ © LIONEL HAHN / ABACAPRESS

01_ In China, the Group operates 02_ Through United Water, its in seven major Chinese industrial subsidiary in the United States, parks, such as here in Suzhou. the Group is present in the water sector in 26 US states.

03_ Aqualogy is the integrated services brand of Agbar, a SUEZ ENVIRONNEMENT subsidiary. © SÉBASTIEN CALVET / ABACAPRESS © SÉBASTIEN CALVET No.12 - MARCH 2013 SPECIAL REPORT_ 31

WITH NEARLY 80,000 EMPLOYEES IN 70 COUNTRIES ACROSS 5 CONTINENTS, SUEZ ENVIRONNEMENT IS A GLOBAL PLAYER IN THE WATER AND WASTE SECTORS. ITS INTERNATIONAL DEVELOPMENT IS BASED ON PROVIDING VALUE-ADDED SERVICES AND THE ESTABLISHMENT OF INNOVATIVE CONTRACTS MODELS THAT MEET THE SPECIFIC NEEDS OF COUNTRIES, AND THE EXPECTATIONS OF CUSTOMERS AND POPULATIONS. ADAPTING TO THE SPECIFIC FEATURES OF DIFFERENT MARKETS

on seven major Chinese parks. In addition, the Group has signed an agreement for the creation of an environmental excellence centre with the Chonquing Water Group, its partner for 10 years, in which it is also a shareholder. SUEZ ENVIRONNEMENT is also strengthening its positions in the rest of the Asia-Pacific region. In India, the market is stimulated by a vast government programme for the rehabilitation of infrastructures over the period 2013-2018. Degrémont, which has already built more than 150 plants, is currently putting the fi nishing touches to the country’s largest water treatment plant in Bombay (Mumbai), which will produce 1 billion litres of water per day. The subsidiary will also build and operate a wastewater direct consequence of population growth and treatment plant in New Delhi for 11 years. Furthermore, the rapid urbanisation, waste and water treatment requirements are Group will work to improve the water distribution service via a constantly increasing all around the world. As such, the drinking 12-year contract with the Delhi Jal Board authority. water market is growing by 6% per year, with increasing opportu- In Australia, where SUEZ ENVIRONNEMENT operates A (1) nities for diverse forms of public-private partnership . As regards in both its businesses, the Group offers adapted environmental the global waste market, this is estimated at €300 billion, all solutions and renewed contractual models. In 2012, the Group economic activities combined, from collection to recycling (2). increased its revenues there by 9%, thus exceeding €1 billion. As SUEZ ENVIRONNEMENT’s activities are at the heart of major a result, Australia became the third largest market for the Group, global issues. after France and Spain. Outside Europe, SUEZ ENVIRONNEMENT continues w to expand its activities in its traditional markets and seeks to strengthen its presence through selective investments and the development of new contract models with low capital intensity. “The Group builds These efforts have already resulted in a signifi cant increase in adapted solutions revenues internationally. Thus over the past four years, this fi gure not only meeting the has risen from €2.5 to €4.6 billion, and now represents 31% of Group revenues. By 2018, the Group forecasts growth of 8% per technical needs of its annum. It also wants to expand in growth areas such as water and customers, but also waste management for industrial customers, which today have their desire to be high ambitions in terms of environmental performance. involved in contract GROWTH MARKETS management” ON ALL FIVE CONTINENTS — Established in China for more than 30 years, the Group is pursuing its successful development in water and waste treatment (15% of revenues in the country in 2012), specifi cally through THIERRY MALLET / local partnerships, whose solidity over time has been proven. It is SENIOR VICE PRESIDENT IN CHARGE OF THE INTERNATIONAL SECTOR also developing its activities in industrial parks, with a presence

SUEZ12UK_028037_DOSSIER.indd 31 11/04/13 13:46 32 _SPECIAL REPORT SUEZ ENVIRONNEMENT MAGAZINE

w In the United States, the Group is expanding at a rapid pace in the water sector through its subsidiary United Water, the second largest private operator, established in 26 states, offering innovative working models for its customers, local authorities. + €2.1 billion SUEZ ENVIRONNEMENT is also present in the water sector Between 2008 and 2012, the Group’s international revenues increased (1) in Mexico and South America, particularly in Brazil, where from `2.5 to `4.6 billion strong growth has been recorded in the water sector, and in Chile (1) Outside Europe with Aguas Andinas which provides drinking water and sanitation services for 6 million people. Countries in North Africa and the Middle East are growth markets for SUEZ ENVIRONNEMENT. In the Middle East, the Group operations are based mainly on the historical presence of Degrémont, an international player in the design, construction and operation of equipment on the water treatment market as well with public and industrial customers. This presence also enables the Group to form partnerships in the region, for instance in the management of water and sanitation services for the city of Jeddah in Saudi Arabia. Lastly, Eastern Europe, particularly Poland, is a growing market for the development of the Group’s activities in the waste sector.

STRONG OPPORTUNITIES — SUEZ ENVIRONNEMENT naturally focuses its develop- © KRISTA BOGGS ment at an international level on organic growth in countries SHARED GOVERNANCE North Africa where it is established, whilst also aiming to benefi t from areas of — “In many countries, governments and municipalities wish to and the Middle East are growth strong growth. Large areas in the heart of industrialised regions are reinvest in the daily lives of their citizens, especially in terms of markets. now under severe water stress (North-Eastern China, the South- all aspects of the environment,” said Thierry Mallet, Senior Vice Eastern United States, vast portions of the Indian subcontinent) President of SUEZ ENVIRONNEMENT in charge of the inter- and need to implement solutions that will allow them to cope national sector “They want to play a key part in decision-making with usage confl icts. Similarly, due to economic development, and are unwilling to entrust their services to a company without waste management is becoming a priority for the governments being directly involved. From our perspective, we bring our know- of some emerging countries, which represent new commer- how that allows elected offi cials to achieve their goals in terms of cial opportunities for the Group outside its traditional markets quality of service, environmental quality and service coverage.” (Morocco, Algeria, and China). In addition, the development of SUEZ ENVIRONNEMENT adapts to this new situation by non-conventional energy (in the United States, China, Poland, offering solutions that meet the technical needs of its customers Australia and so on) requires leading-edge environmental exper- and their desire to be involved in contract management. tise around which SUEZ ENVIRONNEMENT can provide “This is a radical change and we are learning from past mistakes,” substantial added value. acknowledges Thierry Mallet. “Weak or inappropriate governance may lead to project failures, regardless of the technical, human and fi nancial investment involved. All our new models “All our new models are are focused on the high added value we provide our customers and focused on the high have shared governance.” added value we provide FOCUSING ON ADDED VALUE our customers.” — SUEZ ENVIRONNEMENT builds its international development around fi ve innovative contractual relationship models. These complement the traditional Group offer by highlighting its high added value, with the advantage of adapting to the new characteristics of markets and countries. • The management contract provides an innovative service for sharing expertise that puts the transfer of know-how at the heart of the contractual relationship. To this end, a SUEZ ENVIRONNEMENT management team runs a company on THIERRY MALLET / behalf of the customer. In addition to the payment received for SENIOR VICE PRESIDENT IN CHARGE OF THE INTERNATIONAL SECTOR putting the team together, a variable fee is subject w No.12 - MARCH 2013 SPECIAL REPORT_ 33 © MARTIN KOUCHNER

The Group's actions may include ALEXANDRE BRAILOWSKY / DIRECTOR OF SOCIETAL RELATIONS. technical support, as was the case “THE EXPANSION OF OUR ACTIVITIES in Haiti after the 2010 earthquake. INTERNATIONALLY MUST BE IN HARMONY to water and sanitation. WITH OUR ENVIRONMENT.” For instance, in emerging countries, this may result in the construction Why is there a Societal are tailored to territories of infrastructures Relations Department (SRD) and are appropriate for all in disadvantaged within a group like SUEZ players (public authorities, neighbourhoods. In other ENVIRONNEMENT? users, civil society). countries, our actions — The environment in may also involve technical which the Group operates What are the missions support or resolving pricing has changed dramatically of the SRD? issues for low-income in recent years. The — We have two missions. households. expectations of governments On the one hand, we must As part of our dialogue with and municipalities are ever ensure that our contracts stakeholders, we developed increasing in terms of quality include universal access a full service offer for our of service, transparency and to essential services as subsidiaries which includes: strict adherence to roles part of our Water for All a diagnostic tool for regions and responsibilities. The programme. On the other allowing an action plan concerns of stakeholders hand, in respect of the to be developed and its regarding environmental contracts entered into by the impact to be measured, staff protection and access Group, we must establish a mobilisation programmes to services for all are on dialogue with stakeholders. focusing on CSR (Corporate the rise. Another notable Social Responsibility) development is the In real terms, what actions aspects in Group businesses, Internet, which allows are carried out by the SRD and skill-strengthening the immediate and on the ground? programmes for managers. widespread dissemination — In the water sector, of information. Our role we launched the Water is to integrate these new for All programme. We requirements to better work in countries where meet the expectations of all the Group is established, SUEZ ENVIRONNEMENT helping our subsidiaries to stakeholders. We ensure support public authorities that the solutions proposed in implementing the right © JÉRÔME GALLAND 34 _SPECIAL REPORT SUEZ ENVIRONNEMENT MAGAZINE

w to the achievement of objectives. This type of contract schedules a transfer of know-how from the SUEZ ENVIRONMENT team to that of the customer. This type of contract has already been implemented successfully in Algiers, Oran (Algeria) and also in +1,9 % +10 % Jeddah (Saudi Arabia). growth in the CEMME region growth in revenues • The Alliance contract, devoted to local authority customers, is (Central Europe, Mediterranean in the Asia-Pacific region based on a partnership of joint governance (public-private partner- and Middle East) ship). It is based on the sharing of risks and benefi ts between the operator and the customer. SUEZ ENVIRONNEMENT and the customer are both responsible for management of the local authority with mixed teams. This model has been very successful in Australia, for instance in Adelaide and Perth. • The SOLUTIONSM model advocates the separation of asset PROMOTING LOCAL TALENT management and operational activities. The dealer part which — Human resources are also a key factor on which the Group invests is thus wholly separate from the operator part provided relies for its successful international expansion. To date, SUEZ by SUEZ ENVIRONNEMENT. A team from the Group may ENVIRONNEMENT has over 80,000 employees worldwide, of also support the dealer in its search for investors. SOLUTIONSM whom only about 200 are expats. In fact, the Group gives priority was developed and deployed for the fi rst time by United Water in to local establishment by recruiting the majority of its staff in the Bayonne (New Jersey, USA). country in which it is present. It also pays specifi c attention to the • Mobile Units provide industrial customers with fl exible solu- development of talents and skills internationally (3). “We need more tions as a replacement or complement to existing treatment international management,” says Thierry Mallet. One of the best facilities in order to ensure the continuity of water treatment. tools to this end is geographic mobility and talent management The Mobile Units provided by Degrémont Industry can be used around the world. “We want to encourage a dual culture: a local in emergency situations in the event that a facility should mal- employee culture, linked with the SUEZ ENVIRONNEMENT function, or during scheduled maintenance operations or when culture”, he states. The Group needs professionals with many plants are commissioned. They can also be rented on a long-term strings to their bow who can move from one country to another basis for customers who are unwilling to invest in expensive, fi xed and from one subsidiary to another. “The management of inter- equipment. The Mobile Units are generally used for the produc- national projects is also a refl ection of this wealth, which is both tion of process water, but they can also be used to treat wastewater. multi-skilled and multicultural,” says Marie-Ange Debon, General • Packaged Services are provided in the form of contracts that Secretary of the Group and Director of International Projects. focus on specific SUEZ ENVIRONNEMENT know-how or Working closely with the International Department, specifi- added value. In the water sector, this may be resource manage- cally on the preparation of tenders, the teams that make up the ment, infrastructures or customer relations, along with the devel- international projects department come from all walks of life and opment of human resources. These various Packaged Services can from all countries. “At the heart of the Group’s expertise, they gain be integrated into a more comprehensive agreement. from their mutual expertise and aim to bring together all stake- (see examples on pp. 36-37) holders around a common business project”, she says. “The teams provide upstream skills in the technical, marketing, fi nancial and contractual fi elds.” “Human resources In this way, SITA UK has benefited from the expertise of are a key factor in the Waste Projects Department for all its incinerator construction contracts in the UK. Similarly, in early January 2013 SITA Polska ensuring the success won a 25-year contract to build and operate an energy recovery of our international unit in Poznan. For this contract, SITA Polska also benefi ted from expansion.” the skills of the Projects Department’s expert fi nancing team. Proof if any were needed that the Group can pool its expertise and reap the benefi ts of cooperation between its various entities.

(1) According to an article published in Le Figaro on 22 October 2012. (2) From scarcity to inﬁ nity – A worldwide waste overview, by Philippe Chalmin and Catherine Gaillochet, Economica, 2009. MARIE-ANGE DEBON / (3) You can read about two exemplary and international career paths in the features GROUP GENERAL SECRETARY on Shyam Bhan, the new Director of SUEZ ENVIRONNEMENT INDIA, on page 38, and Carlos Campos, Director of CIRSEE, on page 40.

SUEZ12UK_028037_DOSSIER.indd 34 15/04/13 14:43 No.12 - MARCH 2013 SPECIAL REPORT_ 35

01_ The development of its offer to 03_ With Australia committed to industrial customers is strategic in a sustainable waste management order to support the Group’s dynamic policy, SITA Australia is strengthening international growth. its leading position in recycling and 02_ SUEZ ENVIRONMENT employs waste treatment. nearly 80,000 staff worldwide, while focusing on its local establishment. © KRISTA BOGGS © KRISTA 36 _SPECIAL REPORT SUEZ ENVIRONNEMENT MAGAZINE

THE GROUP IS NOW EXPANDING INTO NEW GEOGRAPHICAL AREAS AROUND THE WORLD, WHILE CREATING INNOVATIVE CONTRACTUAL RELATIONSHIP MODELS. TAKE A CLOSER LOOK AT THE INTERNATIONAL PRESENCE OF SUEZ ENVIRONNEMENT AND ITS SUBSIDIARIES, AND AT FIVE MANAGEMENT MODELS. AN INTERNATIONAL PRESENCE ADAPTED TO EACH COUNTRY

MOBILE UNITS generation. However, the sub- Mobile units zero temperatures damaged to counter the demineralised water a cold front systems required to produce in Texas energy. To cope with this critical situation, Degrémont Industry, In February 2011, Texas had to via WPT, provided mobile units cope with an extended period to operators working in the NORTH AMERICA of freezing weather. Demand energy industry. Trailers United Water for energy increased, causing containing a water Bal Ondeo failures in the network and a demineralisation system meant Degrémont/Degrémont Industry 15% reduction in generation. that energy production facilities SENA Waste Services As such, it was imperative that could continue to operate. the facilities in working order During this difficult period, offer the maximum capacity for many plants were only able to continue to operate thanks to these mobile units provided by Degrémont Industry.

THE SOLUTIONSM MODEL in the city of Bayonne (New systems, while the city United Water Jersey, USA). remains the owner. The city SOUTH AMERICA singled out This contract model, known can thus modernise its Agbar SM for praise by as SOLUTION , is based on a facilities while solving its Degrémont/Degrémont Industry President concession granted by the city financing difficulties. The Bill Clinton to a company, of which 90% of novel approach of this the capital is held by the KKR contract meant that United United Water and KKR, an infrastructures fund with the Water was singled out for investment company, remaining 10% being held by praise by former U.S. entered into a partnership in United Water. The joint President Bill Clinton at the late 2012 for the operation of venture is investing to improve annual Clinton Global Initiative water and sanitation systems the city’s water and sanitation (CGI) forum. No.12 - MARCH 2013 SPECIAL REPORT_ 37

THE MANAGEMENT beaches accessible and safe PACKAGED SERVICES CONTRACT for swimming. Customised Drinking water The Group has provided services continuously on substantial resources and for New Delhi tap in Algiers expertise, and has developed a specific methodology, known to improve water distribution in EUROPE To improve the sanitation and as WIKTI. It enables the a district of New Delhi (India), water supply services of the transfer of know-how between Lyonnaise des Eaux SUEZ ENVIRONNEMENT Algerian capital, in 2006 the its teams and those of its Agbar recently entered into a public- country's authorities (SEAAL) customer. Ondeo Industrial Solutions private partnership contract with signed a five-year Given the success achieved, a Degrémont the Delhi Jal Board (DJB), an management contract with new five-year management Safege Indian local authority. Spread SUEZ ENVIRONNEMENT. contract has been signed. In Ondeo Italia over a term of 12 years, it aims to Giving SUEZ addition, this management Water CZ ensure continuity of service, ENVIRONNEMENT joint contract model was replicated SITA France reduce water losses in networks management of SEAAL, it has in Oran (Algeria) and Jeddah SITA UK and improve customer services. provided drinking water (Saudi Arabia). This new packaged service SITA Sweden continuously and made SITA Suomi model better targets customer SITA Polska needs and designs customised SITA NEWS (Benelux, solutions. In real terms, in New Germany) Delhi SUEZ ENVIRONNEMENT SITA CZ will be in charge of upgrading the water management and distribution network, as well as customer relations. The establishment of a call centre and several customer agencies are planned, in order to deal more effectively with requests and complaints.

ASIA Macao Water Palyja SITA Waste Services Degrémont / Degrémont Industry Sino French Holdings SUEZ ENVIRONNEMENT India

AFRICA, MIDDLE EAST OCEANIA Agbar Lydec SITA Australia SEEAL Degrémont Australia SITA El Beïda & SITA Maroc Degrémont SAFEGE SITA Trashco

THE ALLIANCE CONTRACT and sanitation services for the Complete collaboration High- people of Adelaide (Australia) between the two entities performance and its surroundings. (operations, finance, etc.) This contract takes the form of allows SA Water to take back PPP contracts an Alliance, that is to say, a control of operating the in Australia public-private partnership facilities if they wish, relying on The aim of the Alliance contract (PPP). It brings together the the technical skills of a private entered into by Degrémont in state-owned water utility operator. This innovative partnership with Transfield company (SA Water) within a model has been replicated in Services, a local operator in joint venture between the city of Perth (Australia). energy and transportation Degrémont and Transfield Water Business services, is to manage water Services. Waste Business Water and Waste Business © LOTTA NIEMINEN © LOTTA SSERVICES ININDIA.” SSUPPLY ANDDISTRIBUTION TTO IMPROVE WATER ““WE AREWORKINGHARD SSU SHS 38 SUEZ ENVIRONNEMENTINDIA SHYAM BHAN U H W EEZ E U O YAY Z A R E M P

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B B H U A T R I O D N the University ofLife andtheschoolofhard knocks!”. with just $8inhispocket, heconsiders himself“agraduate of and itsvalues; assomeonewhomoved toChicagostudy strong in thecountry” the environment. Environmental awareness andactivismisvery topopularbelief,themajorityofIndiansdocareContrary about improve distributionservicesintheMalviyaNagardistrict. water recentlyexpectations. have InDelhi,we secured to acontract tions andpublicauthoritiestohelpthemmeetthepublic’s and services.We are withmanymunicipalcorpora- working areasrural are supply looking tohavingabetterwater forward in Indiaisahigh-growth market. Millionsofpeople incitiesand of thesector. markets where hehasserved, andtodevelop aclear vision him tobuildupacomprehensive knowledge of the various CEO ofDegrémont Technologies. Thisexperience hasallowed within Degrémont inIndia,theUK,andNorthAmerica,as gement: happyemployees make for happycustomers. basis, healsobelieves inoneofthebasicprinciples ofmana- high-quality waterdistribution services inIndia.Onadaily SUEZ ENVIRONNEMENTasacomprehensive provider of one position,andbuildingonthisreputation topromote two majorchallenges: maintainingDegrémont’s number says Shyam. Withthenew organization, todayhefaces treatment,for water andthey willimmediately sayDegrémont!” sectorinIndiatonamethebestcompany inthewater involved over 30years and isalready well-established. for theGroup, asDegrémont hasbeenoperating inIndiafor created inNovember 2012.Indiaisnotunknown territory of thenew SUEZENVIRONNEMENTINDIAorganization, Shyam went ontocontinue hiseducationintheUnitedStates. studies inIndia,theKashmirregion inwhichhewasborn, engineering andgeneral management.Afterbeginninghis ter pilot, butheendeduppursuing acareer inenvironmental WHEN HEWAS ASTUDENT, sub-contractors. around 700people, andseveral thousandmore through its 44 millionpeople. SUEZENVIRONNEMENTINDIAemploys of drinkingwaterperdayinIndia, meetingtheneedsof SUEZ ENVIRONNEMENTproduces almost 5billionlitres built over 150plantsandoperates 22ofthem.Intotal, over 30years viaitssubsidiary,Degrémont, whichhas — SUEZENVIRONNEMENThasbeenpresent inIndiafor Focus onSUEZENVIRONNEMENTIndia Shyam hasbeenwiththeGroup for 15years, havingworked After anexemplary career pathtodate,heisnow theCEO “In contrast to the UK and USA, the water sector sector thewater totheUKandUSA, “In contrast . Shyam isanavidadvocate ofhiscountry SUEZ ENVIRONNEMENT he wantedtobecome aﬁ “Ask someone MAGAZINE gh- ,

“Our customers are on the lookout for innovative green solutions like this,” says Jean-Michel Terry, Director of Innovation Product SOLAR ACTIVE SYSTEM Marketing at SUEZ ENVIRONNEMENT. Following the adjustment by Clipsol of its original technology to fi t the SAS process, an initial prototype panel was successfully A COLLABORATIVE installed and tested for a year, on the roof of CRIGEN, the GDF SUEZ R&D centre. Today, in order to industrialise SAS, it has INNOVATION been installed to reduce energy costs for sludge drying at the Aquaviva water treatment plant in the Cannes region, where the world’s fi rst carbon neutral plant is located (3). Tests are in pro- THE RESULT OF COOPERATION between several subsidi- gress for a period of 15 months. aries of the GDF SUEZ and SUEZ ENVIRONNEMENT groups, the “If the tests on this pilot site are positive, which we do not doubt, Solar Active System (SAS) project is based on a simple and prac- this very innovative product will enter the active commercialisation tical principle: a “2-in-1” solar panel which generates electricity, phase in mid-2013,” said Jean-Michel Terry. “Solar thermal energy as well as hot air coming from the ventilation of the rear part of is a solution for the future”. the photovoltaic panel (1), thus increasing the production yield of (1) A solar panel is made of photovoltaic cells. These components convert the sun’s electrical energy. energy into electrical energy. The heat thus generated can be used in many ways: From the (2) The originality of the Clipsol method lies in its construction system composed of “clippable” elements for easy assembly and rapid implementation. preheating of air upstream of an industrial process through to (3) Entrusted by the SIAUBC body as part of a public service delegation made to sludge drying processes, not forgetting the frost-proofi ng and Lyonnaise des Eaux, this plant, built by Degrémont and operated by Lyonnaise des Eaux, features the latest water treatment technology. heating of industrial workshops and homes. It also has major advantages, starting with its simplicity of implementation and its robustness due to the Clipsol process (a subsidiary of GDF SUEZ) tested at many industrial facilities (2). In addition, SAS “SOLAR ACTIVE SYSTEM HAS AN OBVIOUS offers excellent energy effi ciency: 60% recovery of solar energy ENVIRONMENTAL BENEFIT. IT PRODUCES captured by the panel while the best traditional photovoltaic pan- FREE, GREEN ENERGY. els level off at 12%. A Design Engineer Developer at SUEZ ENVIRONNEMENT, THIS IS A MAJOR ADVANTAGE FOR ENERGY Frédéric Duong put forward the idea, with the patent being fi led INTENSIVE INDUSTRIAL PROCESSES.” in 2008. This research project very quickly sparked ideas for synergies to develop and industrialise the idea. © DR INNOVATION WITHINTHEGROUP” TTHE ECO-SYSTEMFOR ““CIRSEE ISAKEYCOMPONENTOF I CARLOS CAMPOS 40 N C H N I E R O

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G E N R O T U O P F ” to turnresearch fi Aqualogy technology branch, anAgbarsubsidiary,hewasable Barcelona andtheAgbarinnovation department.Asheadofthe he created anddeveloped theCETaqua Technology Centre in a Group entitydedicatedtosteering R&D,thenatAgbar,where responsibility for research management,fi CIRSEE withtechnicalsupportmissions. Hethentookover Carlos beganhiscareer withintheGroup asaresearcher at research andtechnological expertise centre, CIRSEE. ENVIRONNEMENT.” in termsofmanagement,aninternationalgroup like SUEZ particularly stand theculture. ofeffectiveness, Itisaguarantee languagesisnotenough.YouLatin. Speakingseveral mustunder- nature,my tri-cultural encompassing French, Anglo-Saxon and “My internationalcareer isastroke ofluck,” career intheGroup between France andhisnative country. director, educatedinSpainandtheUnitedStates,hassplithis coined specifically for Carlos Campos.Indeed,thisCatalan “A CITIZENOFTHEWORLD” “incubated” within Group companies. services toexternal customers. Anew activitytested and CIRSEE must capitaliseonitsknow-how inselling packaged volume, withmore than5,000daysof expertise peryear. and waste operators accounts for 35%ofits business innovation strategy. Today, technicalassistance for water devoted toresearch insupportoftheGroup’s technological Environment (CIRSEE)hasseenits activitygrow. 65%is — TheInternationalCentre for Research onWater andthe CIRSEE atacrossroads in theOilandGassector,” develop skillsinthefi to theCentre’s skillsandorganisation. forGroup support niable asoperational operators.” addedvalue skills beingacquired fi intheindustrialwastewater covered visible andtomake itareal factorfordifferentiation.” make the technological expertise ofSUEZENVIRONNEMENTmore asset managers.CIRSEEandtheotherR&D centres musthelpto in technology consulting. to packageitandoffer customers arange ofinnovative services A graduate ofthemost prestigious internationalschools, Since September,Carlos hasheaded uptheGroup’s main “The fi His role asdirector consists ofleading therequired changes Returning toCIRSEEeightyears afterleaving, Carlos redis- Another challenge istocapitalise onCIRSEE’s know-how soas rst ofthefuture challenges CIRSEEfaces istoacquire and “a cuttingedgeteamwithreal withgreat expertise inwater, ndings intoservice offers. eld of industrial water treatment,eld ofindustrialwater forexample saysCarlos Campos. “Our customers still see us too often as as “Our customersstillseeustoooften SUEZ ENVIRONNEMENT , thephrase could have been hesays. rst atR+iAlliance, eld andunde- “It sculpted “It sculpted MAGAZINE

EMAG, THE ONLINE EDUCATIONAL 2013, INTERNATIONAL YEAR OF Many government representatives, LIBERATION-APAJ COMPETITION MAGAZINE THAT SHEDS LIGHT WATER COOPERATION entrepreneurs, investors will French newspaper Libération and ON ENVIRONMENTAL BUSINESSES 01/01/2013 w 31/12/2013 meet at this time to discuss the APAJ association (Association AND CHALLENGES! Increasing urbanisation, pollution, solutions together. As an expert for Assistance for Young Writers) climate change, and people themselves in water and environnement, have organised the Libération-APAJ are inevitably threatening water SUEZ ENVIRONNEMENT will also competition since 2008, in which resources. The United Nations General be there. SUEZ ENVIRONNEMENT is a partner Assembly has therefore decided to in 2012. This competition designed for designate 2013 as the “International GLOBAL CONFERENCE 2013 writers under the age of 30 rewards Year of Water Cooperation”. The United (8th EDITION) great pieces of work, whether in the Access to water and sanitation, Nations recognises that cooperation is 03/06/2013 w 05/06/2013 form of photographs, drawings, text or different types of waste, biomimicry, essential to preserve this resource and Paris, France audio compilations on a given subject. and more. Twice a month, check out to share it fairly. Numerous events will The theme this year was “Portraits the themed features based around be held throughout the year. of cities.” “Water in Every State”, “The Second UNESCO was officially appointed by the Candidates were to focus on writing, Life of Waste” or “The Green UN to manage these events. emotion, a personal and original Economy.” wwww.unwater.org approach to a city, a neighbourhood This new version of the eMag also The eighth edition of the Global or its residents. The jury made up of offers a wide variety of media such Conference will be held in Paris at Erik Orsenna, David Cameo, and Yann as graphics, videos, slideshows, the beginning of June. Organised Arthus Bertrand, presented the awards key figures, and a glossary. every year by Planet Workshops, in December. Subscribe to the newsletter and these conferences aim to raise The beautiful and sometimes discover new features in the eMag awareness among operators and surprising works of the winners every month! opinion leaders, and stimulate since 2008 are featured in this book, w www.emag.suez-environnement.com exchanges regarding environmental published in March by Riveneuve protection. publishing. SUEZ ENVIRONNEMENT TV Some 900 decision-makers and SUEZ ENVIRONNEMENT launches players committed to sustainable its Web TV channel! development, such as SUEZ

From the presence of SUEZ © DR ENVIRONNEMENT, a partner of the ENVIRONNEMENT in Brazil and event, will be present at this event, Finland, to biomimicry, not forgetting the key theme of which is “Achieving GLOBAL WATER SUMMIT toy recycling thanks to Rejoué or an a successful transition”. © DR 22/04/2013 w 23/04/2013 in-depth look at an Australian w Seville, Spain www.planetworkshops.org waste recovery plant, discover OUR HOUSE OF THE FUTURE The preservation of water resources is magazines, reports, and interviews How will the house of the future look? a major environmental challenge for ECONOMIC MEETINGS related to the challenges of water AT AIX-EN-PROVENCE How can we continue to provide safe the planet. and waste, innovation, environmental 05/07/2013 w 07/07/2013 and comfortable accommodation With this in mind, the Global Water businesses and more… Aix-en-Provence, France even though the population is growing Summit will be held in Seville from Each month, discover new stories The Circle of Economists is organising and we must preserve the planet? April 22-23. and images! the 13th edition of the Economic The “Living for tomorrow, reinventing w www.suez-environnement.tv Meetings at Aix-en-Provence, of our living spaces” exhibition attempts which SUEZ ENVIRONNEMENT is to answer these questions by a partner and a participant. This explaining the links between habitat year’s theme will be “The impact of and society. It allows visitors to create time, the global economy, between their own living space using an emergencies and the long-term.” interactive screen. Every year, this event welcomes more Thus visitors become participants than 2,000 people. since they can build and furnish a (virtual) home whilst conserving the w www.lecercledeseconomistes.asso.fr environment. The exhibition will be on show at the Cité des Sciences in Paris You can find us on: until November 10. w Website: www.suez-environnement.fr w eMag: www.emag.suez-environnement.com w www.cite-sciences.fr/francais/ala_ w SUEZ ENVIRONNEMENT TV: www.suez-environnement.tv ala_cite/expositions/habiter_demain w YouTube: www.youtube.com/user/suezenvironnement w Twitter: http://twitter.com/suezenv 42 _PERSPECTIVES SUEZ ENVIRONNEMENT MAGAZINE

FRANÇOIS GHISLAIN MORILLION AND SÉBASTIEN KOPP / CREATORS OF THE VEJA BRAND VEJA, THE CHALLENGE OF FAIRTRADE SPORTS SHOES

VEJA brand products have been designed around three principles: The choice of environmentally friendly materials, the use of cotton and rubber from fair trade sources in Brazil and their manufacture in a setting where workers’ rights are respected. © CRÉATION STUDIO VEJA / PHOTO CHLOÉ GASSIAN CHLOÉ / PHOTO STUDIO VEJA © CRÉATION No. 12 - MARCH 2013 PERSPECTIVES_ 43 © VEJA © VEJA

The Veja trainer brand was founded in 2005 by two French entrepreneurs, François Ghislain Morillion and Sébastien Kopp. It was an We were great collectors of trainers so the idea for the product instant success with 5,000 pairs sold in the first season. came all by itself. The same happened when it came to choos- After starting by launching a ing Brazil, where our raw materials and production are based. children’s collection in 2008, We use organic cotton and natural rubber, grown respectively then moving on to bags and by 300 and 60 families organised into cooperatives and paid a small leather goods in 2009, Veja opened a store in Paris in fair price. The organic cotton, made according to agroecology 2011. Ironically named principles, is certifi ed by the IBD (2). Leather tanning is performed “Shopping Centre”, the store using acacia extract, a natural non-polluting tannin, unlike sells brands that manufacture chrome. We then outsource product assembly to workshops goods “the right way”. with stringent environmental and social standards, audited by Since the project began, (3) Veja has bought 130,000 kg of FLO-cert . In France, we entrusted logistics management to organic fair-trade cotton, Atelier Sans Frontières, a professional integration association. 80,000 kg of fair-trade rubber Receiving products and sending out orders... 25 people work on 2 (or 60,000,000 m of primary our activities. rainforest preserved (1)) and made over 500,000 pairs of Given our manufacturing principles, the production costs of trainers. our trainers are seven to eight times higher than other shoes of this type. Thus, in order to sell them at a competitive price, we (1) Forest clearing protected by the production of Veja rubber work without advertising or stock. We work on orders, which are taken each season. No restocking is possible. Our customers are aware of our constraints and understand them. What’s the key to success to our trainers? Their sustainable creation, and perhaps even more, their design. From the outset, we wanted our products to be fashionable. Media personalities such as French actress Marion Cotillard and one of the pioneers of organic farming, Pierre Rabhi, became ambassadors of our project without being asked. © EDDI BOEHNKE/CORBIS Of course, not everything is perfect. The small producers with in Portuguese. Our idea was to get whom we work are subject to the vagaries of the weather or VEJA MEANS “LOOK” people to look at the label and think insect infestations, which can reduce the amount of raw mate- about the raw materials and the way in which the products are rial available and threaten production. Our trainers are not yet manufactured. We wanted to offer a new way of acting, com- recyclable. The leather and rubber inserts complicate this step, bining entrepreneurship, preservation of the environment and but their fair-trade certifi cation by Max Havelaar, is in progress. fair trade. In 2004, upon returning from a journey around the Veja remains a work in progress... world auditing sustainable development activities carried out (2) The Biodynamic Institute (IBD) is the reference certifi cation body in Brazil. in the fi eld by CAC 40-listed companies, we came up with the (3) FLO-cert is Max Havelaar’s certifi cation body, a label that guarantees fair trade. idea of Veja. In fact, in these projects, we thought there was a massive gap between communication in terms of sustainable development and reality. So with Veja, we wanted to try and manufacture products ‘the right way’ by applying three principles: prioritise green materials, use cotton and rubber from fair trade sources and manufacture To find out more: w www.veja.fr products in a way that respects workers’ rights.