Methodology

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Methodological procedures

The Company's procedures comprise:

  • for environmental indicators: a company-wide measurement and reporting protocol, available on this website, supplemented by specific instructions for individual Divisions;

  • for social indicators: a methodology for compiling, monitoring, analyzing and consolidating the data, using a reporting software package including a workflow process.

Consolidation methods and scope

The scope of environmental reporting covers all worldwide activities over which the Company has operational control. Jointly controlled (50-50) water companies in France, and the design and operation of industrial water systems are excluded from the scope of reporting. Some subcontracted activities may also be included in the scope of reporting, in particular in the field of waste management (e.g., biogas conversion) or transportation.

The scope of social reporting covers all consolidated companies whose human resources are managed by the Company, and those of the jointly controlled (50-50) water companies in which Veolia Environnement is responsible for human resources. In the case of Proactiva (water and waste management activities in South America), companies owned 50-50 by Veolia Environnement and a Spanish company partner have been kept in the Company in 2006 to ensure the comparability of the data.Consolidation method

Within these scopes, environmental and social data is fully consolidated.

Changes in consolidation scope

Changes in consolidation scope are taken into account on the date on which they become effective. Acquisitions, the creation of companies or contracts won may, however, only be taken into account after a full year of operation. For 2006, the main changes in scope or activity were:

  • Veolia Water: full year of operation of contracts in China, Germany and Israel, and new contracts in Australia, the Czech Republic, South Korea, Japan, Taiwan and Thailand;
  • Veolia Energy: full year of operation of contracts in Chile, Mexico, Poland and the United States, and the integration of new businesses in Canada, China, Israel and Singapore;
  • Veolia Transport: acquisition of various contracts in Europe (Germany, the Netherlands, Norway, Poland and the United Kingdom), and various acquisitions in the United States;
  • Veolia Environmental Services: acquisition of new contracts in Asia, Belgium, France and the United Kingdom, and the divestment of six sites in New Zealand and two sites in New Caledonia.

Choice of indicators

The indicators have been chosen in order to track:

  • Company-wide commitments and policy (EMS, environmental audits, etc.)
  • performance related to the Company's main challenges and impacts
  • effects of the Company's labor practices
  • regulatory obligations (e.g., the NRE law in France).

Consolidation and controls

Environmental data is consolidated and monitored by each Division and by the Environment Department based on data collected from the business units. For certain indicators, data is calculated or estimated directly at the divisional level. Human resources data is consolidated and checked by the Divisions and by the Company's Human Resources Department. Automated checks are also performed at the business unit level. The data is then checked by Salustro Reydel, the Company's independent auditor. The most relevant environmental indicators have been audited for the last six years by Ernst & Young, the Company's independent auditor.

Methodological limitations

The environmental and social indicators may be subject to methodological limitations due to:

  • lack of standardized definitions and national and international legislation
  • the unrepresentative nature of certain measurements and estimates
  • changes in definition that may affect comparisons
  • the practicalities of data collection. 

Taking these factors into account, we believe that most of our data is accurate to within approximately 5% to 10%.

For the fiscal year under review, the main limitations and uncertainties relate to:

  • methane emissions, which are estimated on the basis of national or international models that are subject to high levels of uncertainty.