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Corporate Responsibility Report 2003


3

Introduction

6

Highlights

16

Water Resources Our goal...to manage groundwater and surface water resources to preserve their social, ecological and economic value.

22

Energy, Materials & Waste Our goal... to reduce our consumption of non-renewable natural resources by using renewable alternatives where possible, and by optimising efficiency of use

28

Notes

Water Services and the Community Our goal...to meet our customers’ expectations in terms of the provision of water

This report contains information on performance during the reporting year 1st

and related services and to contribute in other ways to the quality of life in the

April 2002 to 31st March 2003. The activities

communities we serve.

described took place during this period unless indicated otherwise. Key statistics

34

Biodiversity

and other information reflect either the

Our goal...to carry out our activities to maintain and enhance biodiversity, and

average during the year or the position at

to assist others to do the same.

the end of the year as the context indicates. “Industry Average� means the average of all the water service companies and water

36

supply companies in England and Wales.

Engaging with our Stakeholders Our goal...to inform others of the steps we are taking to promote sustainable

Unless indicated otherwise the sources of

development, to consult them, and take into account their views when

this data are reports published by the

developing our programmes and plans.

Director General of Water Services.

40 KEY

Our goal...to manage our businesses taking into account and balancing the three

Target met or, in the case of an ongoing target, making satisfactory progress

dimensions (environmental, social and economic) of sustainable development.

Target partially achieved or in the case of an ongoing target, only limited progress Target not achieved or, in the case of an ongoing target, no progress

2

Business Management for Sustainable Development

46

Verification Statement

48

Glossary

51

Invitation to Comment


Delivering responsibility and accountability at the local level an introduction by the Managing Directors Over the past year our parent company, Veolia Environnement,

Particularly pleasing this year has been the growth we have seen

has undergone a truly profound change in name, shareholders and

in water management services provided to industrial clients

organisational structure. This has had consequential impacts in

through the regulated water businesses and Veolia Water

all parts of the business. During the year the name change from

Industrial Outsourcing Limited (VWIO). Value added services

Vivendi to Veolia Environnement was announced and ratified at

have been provided to industrial and commercial customers

the shareholders meeting in April. The name Veolia is derived from

which helps them conserve and re-use their own, as well as

Aeolus, master of the winds, and evokes the company’s renewed

purchased water assets. Ever increasing implementation of

vitality, fluidity and cohesiveness of its various elements. Despite

European legislation has put more pressure on UK industry

this momentous change the strategy of the group remains

and the water companies to deliver more demanding standards

the same: promoting expertise in our core businesses at an

and improvements in environmental performance. VWIO have

outstanding level of quality and trust to ensure retention and

been particularly active in providing customers with innovative,

g rowth of our customer base. Central to deploying this strategy is

economically and environmentally sustainable solutions to their

the need for everyone in the organisation to behave responsibly

water and wastewater management problems.

and to be held accountable for his or her actions.

The first Veolia Environnement stakeholder meeting was held in London in December 2002 and proved to be a challenging and rewarding engagement. The company has absorbed much wisdom and advice from the event and subsequent discussions that it has woven into its strategies and plans.

Within the UK we have completed the acquisition of a holding in Southern Water which gives us a long awaited involvement in sewerage services in this country. Together with our new colleagues, we are committed to optimising water management services in the South East of England.

3


Veolia Environnement stakeholder meeting, London, December 2002

Underpinning these developments has been the committed and

extended the scope of our social reporting and are pleased

concerted implementation of effective integrated management

to highlight the issue of the revised staff handbook in Three

systems designed with practicality in mind. It is particularly

Valleys Water and Veolia Water Partnership that updates and

heartening to congratulate everyone at Folkestone & Dover Water

consolidates existing and new policies and programmes. The

Services and VWIO on achieving certification to the international

safety performance continues to improve and Three Valleys

environmental management systems standard ISO 14001.

were successful in retaining the RoSPA gold award.

Both successes represent unique and customised systems for managing each business employing common tools to ensure

The fundamental process of developing business plans for the

cost effective and efficient design and implementation. As is

regulated water businesses as part of the next quinquennial

often the case, the value of certification was in the process

price review (Price Review 04) commenced during the year.

and the discovery of hidden value such as additional staff

The outcome of the review of the plans by Ofwat will form the

awareness and motivation.

foundation for the pricing and investment regime in the industry in the period 2005–2010. These plans demonstrate the

Overall, our core businesses in the UK continue to perform well

implementation of a company-wide strategy at a detailed level

above average as indicated in the comparisons published by

and we have attempted to ensure that environmental and social

Ofwat. Tendring Hundred Water Services continue to produce

issues are part of the key decision-making processes.

outstanding results in terms of per capita consumption of water and topped the league once again. We recognise that our

Overarching the core mission of the Veolia Environnement Group

leakage rates could be improved and we have a number of

are the external and internal frameworks for developing the

research and development projects in train to address some of

business in a sustainable manner. To this end the Group has

the major technical constraints associated with this problem. We

published a revised set of values and charters for sustainable

are also happy that we outperformed our sector in the Business

development and ethics, commitment and responsibility. A key

in the Community Corporate Responsibility Index. We have

function of the central organisation of Veolia Water UK is to

4


weave these principles into the policies and programmes that we operate. As explained in previous years, our approach to Corporate Responsibility subsumes sustainable development, ethics, traditional safety, health and environment systems and the internal and external management of human relationships.

Jean Claude Banon, Managing Director Veolia Water UK PLC

This report illustrates how we have striven to and met not only our internal objectives and targets but also contributed towards Veolia Environnement and UK national policies and goals. We thank and congratulate all our staff for their efforts in achieving this outstanding level of performance.

David Alexander, Managing Director Three Valleys Water PLC

Peter Darby, Managing Director Folkestone and Dover Water Services Limited & Veolia Water Projects Limited, and Chairman Tendring Hundred Water Services Limited

Franรงois Darley, Executive Officer Veolia Water Partnership Limited

David Wright, Managing Director Veolia Water Industrial Outsourcing Limited 5


Highlights of the year During the 2002/03 year we adopted our Statement of Corporate Responsibility Policy and Principles (see p.13). This incorporates our environmental, social and economic policies and principles which underpin our goal of continuing to develop in a sustainable manner. How did we perform this year?

Environmental performance •

For the eighth year running none of the companies

The Environment Agency approved our Water Resources plans.

was prosecuted and no water pollution enforcement

We improved the quality of data collected for waste going to landfill and increased the amount of waste recycled (p. 24).

notices were served. •

Folkestone & Dover Water and Veolia Water Industrial

We improved the fuel efficiency of our vehicles (p. 24).

Outsourcing both achieved certification to the ISO14001

We continued to foster priority species and habitats targeted in Biodiversity Action Plans (p. 32).

environmental management standard. •

We supplied drinking water considered to be of “high quality”

and in line with the industry average (p.28).

Award for introducing innovative hand-held computer

We continued with our installation programme of state-of-the-

technology which reduced vehicle journeys (p. 25).

art filtration treatment plants at several locations to further

increase the quality of our water supplies (p. 30) •

We reduced the risks of incidents principally through

community nature conservation (p.33). •

Business in the Environment Index of Corporate Environmental Engagement: our 2002 score was above the

Our emergency procedures operated satisfactorily when

average of FTSE 100 companies and in line with that for

dealing with exceptional conditions such as the power

FTSE 350 utility companies (p. 43). •

Of 4 new environmental targets for the year, 1 was met, 1

threat to one of Folkestone & Dover’s water treatment

was narrowly missed and 2 were progressed. Of 16 ongoing

works (p.44).

targets we are on track with 6, and made progress with

Two companies met their leakage targets; we continue to

10 others. One was not progressed. We have set 20

perform better than the industry average. Tendring Hundred

new targets for completion in future years.

has the lowest leakage levels in England and Wales (p. 19).

6

Three Valleys won a British Trust Ornithology award for

catchment protection and upgrading treatment works (p. 17).

cuts to Three Valleys’ pumping stations and a pollution

Three Valleys won a national Utility Industry Achievement


Working Luton - a partnership initiative that helps provide work experience for unemployed people and encourages wise water use

Staff at Three Valleys’ Environmental Education Centre with a Green Apple environmental award

Social performance •

Investors in People status. •

Business in the Community Corporate Responsibility Index: our 2002 score placed us in the ‘Premier League’, outperforming

Three Valleys completed the analysis of its human resource,

the sector as well as the average overall Index (p. 43). •

Employers’ Forum on Disability Global Inclusion

practice and published a revised employee handbook.

Benchmark 2003: our score exceeded the industry

Three Valleys improved the rate of assessment and treatment

and country averages (p. 43).

of employee medical cases (p. 41). •

Following a re-assessment Three Valleys retained its

special needs customers (p.34).

social and ethical policies and practices in relation to good

We updated our Safeguard Register to ensure we continue to satisfy the individual requirements of vulnerable and

Three Valleys were once again awarded RoSPA Gold Award for Occupational Safety (p. 41).

We developed and piloted new programmes to support education (p.35).

Of 5 new social targets for the year, 4 were met and 1 was

Veolia Water UK plc, Veolia Water Partnership and Veolia

progressed. Of 8 ongoing targets we are on track with 5,

Water Industrial Outsourcing improved their internal safety

and made progress with 3 others. We have set 12 new

reporting mechanisms.

targets for completion in future years.

We again surveyed our employees for their opinion on improving our performance (p. 39).

The Group continued to examine ways and means of providing training and career development, wherever appropriate (p. 42).

Tendring Hundred topped the list of companies judged best by Ofwat on their performance on key customer service measures (p. 34).

Three Valleys won a Green Apple Award for their work on a schools project run in conjunction with Hertfordshire County Council (p. 35).

7


Three Valleys’ ultrafiltration water treatment plant at Clay Lane

Economic performance •

Turnover for the 12 months to December 2002 was £189m,

charged to the profit and loss account in accordance

Ordinary profit before tax was £155m1, compared to

with the Standard Statement of Accounting Practice.

the previous 9 months. The year has seen a record level of

significant efforts to conserve energy (p. 22). Donations for charitable purposes made by Group companies during the year1 amounted to £40,000, together

Veolia Water UK plc acquired a 19.9% interest in Southern

with £50,000 of sponsorship. The Group made no political

Water Services Ltd during the year (p. 3).

contributions (p. 35).

A number of contracts were secured in both the public

The Group participated in and benefited from research

SA Group. Expenditure in the year exceeded £600,000. The Group complied with its policy to settle terms of payment with suppliers when agreeing terms of business and to pay in accordance with contractual and other legal obligations. The payment policy applies to all payments to creditors for revenue and capital supplies of goods and services (p. 43).

1

at both treatment works and on the water mains network.

undertaken by other companies within the Veolia Environnement

Veolia Water UK companies have suffered financially from the introduction of the Climate Change Levy despite

and private sectors in the UK. •

Capital expenditure was £78.5m1, compared to £45.8m for

investment for a 12-month period with substantial expenditure

Employers’ contributions towards pension costs were

compared to £142.2m for the previous nine months.

£60.1m for the corresponding 9 months. •

For the 12 months to the end of December 2002.


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T h ree Valleys Wa t e r Veolia Water Partnership Veolia Water Industrial Outsourc i n g Veolia Water Pro j e c t s Tendring Hundred Wa t e r

Veolia Water UK

Folkestone & Dover Wa t e r

The Water Businesses of the Veolia Water UK Group The water businesses of the Veolia Water UK group comprise

between Veolia Water and Veolia Water Systems (see next page),

three water supply companies:

is a one-stop shop for the outsourcing of water and wastewater

Folkestone & Dover Water Services Limited

management services to industry; Veolia Water UK oversees

Tendring Hundred Water Services Limited

the three water supply companies, as well as Veolia Water

Three Valleys Water PLC

Partnership, Veolia Water Projects and Veolia Water Industrial

together with Veolia Water Partnership (VWP), Veolia Water

Outsourcing, providing support in relation to corporate matters.

Projects (VWPr), Veolia Water Industrial Outsourcing Ltd (VWIO) and Veolia Water UK plc (VW). (For a detailed explanation of the organisation and ownership of the Veolia Water UK plc group, as well as economic performance, please see the Annual Report and Accounts.)

Each wholly-owned water company supplies water to customers within a designated supply area; they do not provide sewerage services. Veolia Water Partnership provides planning, engineering, scientific and laboratory services; Veolia Water Projects develops non-regulated water related business; Veolia Water Industrial Outsourcing, a 50/50 joint venture

9


Veolia Environnement Veolia Water is part of Veolia Environnement (VE),

(Onyx), energy services (Dalkia) and transport (Connex).

the world’s leading environmental services group.

Worldwide, Veolia Environnement employs around 302,000

2002 was a key year in its 150-year history, when

people. It is listed on the Paris and New York stock exchanges.

the group secured its independence from Vivendi

Net revenues for 2002 were u30.1 billion (£21.5 billion).

Universal. This was completed with the name change in May 2003. In September 2003 it was listed in the Dow Jones

Veolia Environnement companies have been developing a strong

Sustainability Index.

presence in the UK since the mid-1980s. The UK is the only country outside France where all major group activities are

Veolia Environnement’s other activities comprise water equipment

represented. Together the UK companies employ approximately

design and supply (Veolia Water Systems), waste management

16,000 people and had a turnover of £1.5 billion in 2002.

Veolia Environnement and Sustainable Development Corporate Values

Innovation

The Fundamental Corporate Values of Veolia Environnement

We create the environmental services of the future. Through

to which the Group adheres are:

bold and imaginative research and innovative technologies,

Customer focus

we continuously improve quality of service and value added for customers and users alike.

We focus on our customers at all times, demonstrating the discipline and professionalism to anticipate and adapt to their

Performance

needs and building a solid and lasting relationship with them.

We show financial discipline at every level and concentrate on

Responsibility

creating value for the company and its shareholders with a view to sustaining our action and ensuring long-term growth.

We realize that our everyday actions have impacts on the improvement of people’s living conditions. We never forget the

Cohesion

effects of our business on our employees and on society as a

The interests of individuals within the company are subordinated

whole, and operate with the common good in mind. We allow

to the common interest. Experiences are shared and every

our managers to assume full responsibility for the decisions

success is a collective victory.

they are called upon to make in carrying out their duties and expect them to fulfill that responsibility. 10


Henri Proglio, Chairman, Veolia Environnement

2002 Sustainable Development Report In early 2003 Veolia Environnement published its 2002 Sustainable

Conserve natural resources

Development Report (its third such report) covering the activities of

Reduce emissions

the group worldwide. The water group in the UK contributed

Responsibility to our employees

information from its own performance measurement systems.

Responsibility to society

The report builds on the 10-point Sustainable Development

The Charter’s ten commitments inform the development and

Charter adopted in 2001 (see page 50), with the principles and

implementation of Veolia Water UK’s policies, procedures,

goals of sustainable development being translated into concrete

goals and targets.

action around the world. The environmental and social priorities, action plans and targets have been grouped under four

Veolia Environnement’s Sustainable Development Report is

main headings:

available on the Internet at www.veoliaenvironnement.com

World Summit on Sustainable Development, Johannesburg Representatives of Veolia Environnement participated in the World

Issues emerging from the Johannesburg Summit were raised at a Veolia Environnement multi-stakeholder event held in London in December 2002.

Summit on Sustainable Development in Johannesburg in August

Veolia Environnement Institute

2002. In conjunction with international elected officials, NGOs,

As a major player in its sector, with a range of activities that

financial institutions and consumer groups they helped to draft

contribute to the quality of life, Veolia Environnement takes part

the charter on access to basic services. This set an ambitious

in the collective thinking regarding the broad challenges facing

objective of reducing by half the numbers without access to

society today such as water scarcity, climate change and threats

clean water and basic sanitation by 2015.

to public health. The Veolia Environnement Institute was set up in

Defining ways of achieving this objective was on the agenda of the World Water Forum in Kyoto in March 2003. Veolia

2001, with a mission to define strategic goals within the long-term perspective of sustainable development.

Environnement’s Chairman, Henri Proglio, took part as an

The Institute is backed by a Foresight Committee of international

active stakeholder looking in particular at ways of funding

experts including Professor Amartya Sen, an economist who won

access to water and sanitation (through public-private

the Nobel Prize in Economics in 1998 and is currently Master of

partnerships).

Trinity College, Cambridge. 11


Veolia Environnement Charter, goals & targets

Three Valleys Water

UK Government Sustainable Development Strategy

Folkestone & Dover Water

Tendring Hundred Water

Water Industry Sustainability Indicators (being developed)

Veolia Water Industrial Outsourcing

Veolia Water Projects

Veolia Water P a r t n e r s h i p

Policy development and implementation UK Government’s Sustainable

Water industry sustainability indicators

Development Strategy

The UK Government’s strategy for sustainable development has

In addition to reporting on how we contribute to VE goals and

influenced strongly a project by Water UK, the industry’s trade

targets, we report also (where you see this symbol G ) on how

association, to extend the industry-wide sustainability indicators

our programmes and targets contribute to the UK Government’s

to include social and economic indicators. Veolia Water company

Quality of Life indicators, part of the UK Government’s Sustainable

representatives were active during the year in helping to develop

Development Strategy. The UK Government issued its strategy for

the indicators and to produce a corporate social responsibility

the UK in 1999. It entails meeting four objectives: social progress

report for the sector. Although the project is not yet complete,

which recognises the needs of everyone, effective protection of the

we have taken the opportunity in this report to measure our

environment, prudent use of natural resources, and maintenance

progress against those sustainability indicators that have already

of high and stable levels of economic growth and employment.

been developed (where you see this symbol S)

Progress towards achieving these objectives of sustainable development is measured using a range of quality of life indicators.

Example of policy development

The water industry has developed an indicator relating to the

and implementation

percentage of excavated material diverted from landfill.

Veolia Environnement has set itself an environmental objective to conserve natural resources. A priority under this objective is

Similarly, one of Veolia Water UK’s Corporate Responsibility

to reduce the use of raw materials by developing recycling and

Principles is to minimise waste, prevent pollution and reuse

waste recovery.

or recycle waste materials.

This objective is both influenced by, and contributes to, the

Three Valleys, Folkestone & Dover, Tendring Hundred, Veolia

UK Government’s Sustainable Development Strategy to

Water Partnership and Veolia Water Industrial Outsourcing

use natural resources prudently by moving away from disposal

have in turn environmental objectives to minimise waste and

of waste towards waste minimisation, reuse, recycling

encourage beneficial reuse or recycling of waste materials, and

and recovery.

targets to reduce the amount of waste going to landfill.

12


Veolia Water UK plc Corporate Responsibility: Statement of Policy and Principles The primary objectives of our business are to deliver sustainable water management services to our customers and a financial re t u rn to our investors. We will conduct our business in accordance with the highest standards of corporate responsibility and Veolia Environnement company values, in order to protect and enhance the welfare and interests of our stakeholders and the environment. We will maintain efficient and effective systems for risk management to contribute, among other objectives, to the implementation of this policy. We will regularly review this statement, its implementation and effectiveness, and modify it in the light of practical experience. We will strive to improve our performance continuously, monitor key aspects of this policy and publish a full report regularly. More generally, we will communicate openly about our policies, plans and performance. This statement is a key part of the company’s overall strategy and operating policy. It will be taken into account in setting performance objectives of subsidiaries and individual units. We will ensure that our employees act in accordance with the policy. Environmental policy We will seek to contain the negative environmental impacts of our activities to the practicable minimum through applying our environmental principles. We will strive to meet the environmental standards required by legislation, regulation and codes of practice. Where practicable, we will encourage conservation of, access to and recreation on our landholdings, and communicate with environmental groups, local government and the community on environmental matters. Environmental principles To manage our environmental impacts and improve the environment, we will: Comply with legal requirements, in co-operation with • Government and regulators Wherever practicable, minimise the negative impact of the • company’s activities on the environment and society Ensure the efficient use of energy, water, fuel and other resources • Minimise waste, prevent pollution and re-use or re-cycle • waste materials. In accordance with our duty-of-care we will dispose of residual waste responsibly Co-operate in the conservation of legislatively designated sites • and other locations of archaeological, historical or environmental interest and sensitivity where they may be affected by our activities. More generally, we will promote biodiversity w h e repracticable • Encourage conservation of, access to, and recreation on our landholdings wherever possible and within the constraints of the business • Undertake environmental impact assessments of proposed activities when appropriate Communicate effectively with stakeholders on environmental matters • • Provide relevant training to staff in order that they can fulfil their responsibilities Promote staff awareness of environmental issues and encourage • participation in environmental initiatives Influence and provide appropriate support to suppliers • to act in accordance with these principles when they are undertaking business for us.

Social policy We will act in a manner consistent with maintaining the welfare and interests of stakeholders and, where possible, we will seek to make a positive contribution to them. For our customers we will: • Maintain the highest standards of service Treat them fairly, particularly in financial matters • Endeavour to give good advice to those who are having • difficulty in making payments Respond promptly to all inquiries • • Provide them with the information that they need about matters which they raise with us Provide them with full information about any relevant • matter affecting our services • Encourage, and advise on, efficient water use. For our employees we will: • Maintain the highest standards of health and safety in our operations • Provide all necessary training and resources in health and safety matters Ensure that staff receive appropriate education and training • to enhance their skills and develop their potential Reward our employees fairly for their work • Ensure that good quality occupational health advice is available • • Provide appropriate recreational facilities for employees Promote a work environment free from discrimination built upon • mutual trust and respect • Allow freedom of association and co-operate effectively with those who represent our staff on employment matters. For our investors we will: Treat them fairly and seek to minimise the financial risks to • which they are exposed • Provide them with the information which they need to monitor their investments. For our suppliers we will: Act fairly and reasonably in our dealings with our suppliers • and potential suppliers • Follow reasonable payment policies Endeavour to assist them in fulfiling their undertakings to us • Have regard to the welfare and interests of their employees, • and seek to assist suppliers to operate in a safe, socially-responsible manner. For our neighbours and local communities in which we operate we will: Work with and support the local communities in which we operate • Maintain good relations with individuals, groups and representatives • of those communities and provide them with the information that they need about our business • Respond to any issues raised in a timely manner • Undertake and support educational work about water matters and generally Support appropriate community projects • Support, and encourage our staff to support various charities. • Economic policy In the interests of our stakeholders, we will conduct our activities as efficiently, effectively, ethically and profitably as possible on a long-term basis. We will seek to maintain our assets to ensure that high standards of service can be ensured both now and in the longer term.

13


Michael Howard MP presents ISO14001 certificate to Folkestone & Dover Board Chairman, John Bonomy

Environmental Management within the Water Businesses of the Veolia Water UK Group At each company, the Managing Director takes overall

Dr Neil Summerton CB is a non-executive director of Three

responsibility for environmental performance and reports on

Valleys Water and of Folkestone & Dover Water Services where

this to the company’s Board. Each company has one or more

he has specific responsibility for environmental policy and

Environment Champions responsible for promoting initiatives,

performance. He advises Veolia Water UK on economic and

monitoring performance and internal communication.

environmental regulation and is a member of the Corporate Responsibility Advisory Committee. He was formerly Director of

The Right Honourable John Gummer is a non-executive

the Oxford Centre for Environment, Ethics & Society, Mansfield

director of Veolia Water UK PLC with special responsibility

College, Oxford, and of the Oxford Centre for Water Research.

for the environment and chairs the Corporate Responsibility Advisory Committee to the Board.

Corporate responsibility organisation and reporting for Veolia Water UK plc Veolia Water UK Corporate Responsibility Report

Three Valleys Envt. Report

Folkestone & Dover Envt. Report

Veolia Water UK PLC Board

External verification

Tendring Hundred Envt. Report

Veolia Water UK Summary Leaflet

Veolia Water UK Investors Sheet

Veolia Water UK PLC Corporate Responsibility Advisory Committee

Environment Champions

Folkestone & Dover (ISO 14001)

Environment Agency

14

Tendring Hundred (internal system)

Three Valleys (balanced scorecard)

Office of Water Services (OFWAT)

Veolia Water Partnership (internal system)

Drinking Water Inspectorate (DWI)

Veolia Water Projects (internal system)

Veolia Water Industrial Outsourcing (ISO 14001)

Department for Environment. Food & Rural Affairs (DEFRA)


Chairman of Corporate Responsibility Advisory Committee and non-executive Director of Veolia Water UK PLC

Statement from the Rt Hon John Gummer Tu rning the fine words of mission statements, policies, and charters

ranged from how to finance means to deliver the Millennium goals

into living, breathing commercial reality is the challenge presented

of safe drinking water and sanitation through to the challenge to

to professional managers the world over. At Veolia, it is our

the reliance on the incineration of waste. The company has hugely

fundamental contention that environmentally sound and socially

benefited from these dialogues and entered into continuing

responsible business practices are crucial components of a

stakeholder discussion, while already incorporating some of

profitable and sustainable company. They are not mere decoration

their insights into the strategy for our new organisation.

nor costly luxuries but contribute directly to the commercial success of the business. That is the message that has to permeate

The water industry in the UK is highly regulated and literally

the organisation, through education, training and incentives. It is

overflows with measures of performance. Many of these are

only in this way that our aspirations will be realised in the day to

technical and financial and their interpretation requires some

day running of our business. This is how doing the right thing in the

degree of detailed knowledge. We need to translate these into

right way becomes second nature throughout the organisation.

meaningful expressions of performance for the general public. This report is part of that communication. In these relatively few

When I was at last year’s Johannesburg Conference on

pages Veolia Water UK plc attempts to draw together the

Sustainable Development and again at the ill-fated Cancun

relevant measures and yardsticks to give the reader a snapshot

meeting of the WTO, I was constantly aware of the wide gulf

of the level of performance the company has achieved in

fixed between the broad aspirations of the negotiators and the

protecting and enhancing the environment and improving the

efforts to implement them on the ground. Even in the UK where

quality of life of its stakeholders. It attempts to show how Veolia

we have a notable record of developing sustainable development

Environnement policies, objectives and targets, UK government

policies, we have been much less successful in ensuring their

measures and the Water UK indicators of sustainable

implementation. Veolia has been determined to set an example

development are translated into action. The success of this

in the progressive implementation of these policies that we

report is measured at least in part by the feedback the company

believe directly contribute to our success.

receives. I hope therefore that you will give us your views and insights so that we may continue to improve.

In December I had the honour of leading the first Veolia Environnement stakeholder meeting in London. As expected this generated a challenging set of issues for the company. These 15


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Water Resources Our goal...to manage groundwater and surface water resources

extent of customer demand. The index is a complex indicator,

to preserve their social, ecological and economic value. This goal

reflecting the limitations of the investment programmes imposed

is consistent with Veolia Environnement’s primary commitment

in past periodic reviews. It is moreover a snapshot in time which

to protect the environment, conserve resources and reduce

does not necessarily reflect the longer term situation, nor does it

pollution (see p.50), activities which are its core business.

reflect individual companies’ performance but rather local geographical conditions.

Managing for Sustainable Development Our task is to balance the demand for water against the

Security of Supply Index

availability of water resources in the areas where we operate, whilst protecting the environment. Due to the pressure on water

Margin of security (Index score band)

resources in our supply area (South East England) this requires

2002/03

innovative solutions. We do not act alone; the Environment Agency plays a major role in determining the availability of

Folkestone & Dover

D

Tendring Hundred

A

Three Valleys

C

resources and determines licence applications to abstract water between competing demands.

A - No deficit B - Marginal deficit C - Significant deficit D - Large deficit

Each year, our companies must submit detailed Water Resource

The chart shows:

Plans to the Environment Agency, as well as drought

Folkestone and Dover continues to have a large deficit

contingency plans every three years. In 2002/03 each of our

against headroom. This is expected to improve as a result of

companies’ plans was approved. These plans are reviewed

acquiring new borehole sources and reaching agreement on

annually, and an update supplied to the Environment Agency.

group licensing issues with the Environment Agency. The company has a target to ensure security of water supplies in

An important measure of companies’ water resources positions

all resource zones by 2007/8.

is the security of supply index, as reported to the regulator

Tendring Hundred’s supply:demand balance is adequate.

OfwatS. Water companies plan to meet demand in a drought

Three Valleys has a potential shortfall in four of its seven

year, but they also maintain a security margin to account for

zones. This partly reflects reductions in water available for

uncertainty and risk in the availability of water resources and the

use due to the impact of groundwater pollution and non-

S The Security of supply index is also a water industry sustainability indicator.


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S

renewal of licences. In addition the demand for water over

Despite major efforts to promote water efficiency among all

the last few years has grown faster than predicted. The

customers, the trend in unmeasured per capita consumption

company has responded by bringing forward a number of

continues upwards. For Folkestone & Dover and Tendring

capital investment schemes to maintain security of supplies

Hundred this growth is largely a result of unmeasured customers

to customers.

switching to meters (resulting in unmeasured consumption being divided up between fewer customers). For Three Valleys,

The targets to guarantee water supply security were factored

where metering take-up is lower, this is attributable to increasing

into the draft business plans drawn up in August 2003 for the

numbers of single person households, appliance ownership

2005-2010 regulatory period.

and changing patterns in garden watering. The Three Valleys’ supply area contains the highest socio-economic groupings

Domestic Demand for Water

in England, with attendant high water usage.

Another indicator used in forward planning water resource management is the per capita consumption rate. With the

Tendring Hundred’s customers continue to have the country’s

Government’s projected growth of 1.4 million new households

lowest per capita water consumption rates.

in the South East & London by 2021 future household demand is a key driver of water resource planning. In addition, changes in

Catchment Protection

the climate, with wetter winters and drier, hotter summers, have

The water resources balance is not just threatened by rising

to be taken into consideration. Overall water resource availability

demand, droughts and climate change. If raw waters become

is also threatened by changing patterns of land use such as

polluted, they may become temporarily or permanently

urbanisation and land drainage. To plan for these effects, our

unavailable, reducing the amount of water available for use.

companies’ Water Resources plans considered different climate

Protecting the quality of raw waters, therefore, is a key part

scenarios, development patterns and demand conditions. As

of sustainable water resources management. Our companies

a consequence of this planning and subsequent actions, the

do not act alone in this. The Environment Agency has a role in

companies have not imposed hosepipe bans in recent years.

monitoring and protecting the catchment and prosecuting those responsible for pollution offences.

S Water industry sustanability indicator. 2 Figures from 2000/01 onwards are for the new Three Valleys Water company which merged with North Surrey Water in October 2000.

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At St Albans the pollution of two Three Valleys’ sources from

Action for Low Flow Rivers

b romate leaching from an old chemical site prevented their use for

Society’s demand for water has to be met efficiently and

the third year running. In the absence of recognised treatment,

economically; this is the function of the water companies,

Three Valleys is continuing to investigate ways to treat the bromate

and they have statutory duties to that effect. This must be done

and to clean up the aquifer; a pilot plant trial in 2002 to test a

at the same time as ensuring that there is enough water in

p rocess for removing bromate from water proved unsuccessful.

the environment to maintain good quality rivers, lakes and wetlands G. Tendring Hundred conducted a survey into low

During the year BP was fined for an incident in 2001 involving a

flow levels in the River Brett. Three Valleys continues to operate

petrol leak at a Luton filling station. The leak posed a pollution

schemes on a number of rivers in their area at risk from low flow

threat to groundwater. Three Valleys commended BP on its

and over-abstraction including the Rivers Misbourne, Beane, Ver

positive response in dealing with the spillage.

and Hiz. The company carried out a hydroecological survey of the River Pant, and contributed to sustainability studies of the

Three Valleys’ WaterWatch project continued through the year.

rivers Mimram and Gade carried out by the Environment Agency.

This involves maintaining a detailed catchment survey of pollution risk for source sites, with the aim of reducing risks to

For several years Folkestone & Dover has been in discussion

groundwater in the long term.

with the Environment Agency regarding new and amended abstraction licences in the Dover area. These licences form

Veolia Water Partnership continued to manage extensive

part of a more general review that will reduce the impact of

catchment protection programmes on behalf of the water

water abstraction on the Little Stour and the upper reaches

companies. Three Valleys also actively supported research

of the river Dour.

programmes into groundwater quality trends. See p.30 for a summary on research and development.

Veolia Water Partnership has maintained its ongoing dialogue with the Environment Agency. This year Veolia Water Partnership

While single point pollution is closely monitored by regulators,

provided information on groundwater levels, operation of low flow

an important issue for future catchment protection is the risk of

schemes, water quality and volumes abstracted. It also helped

diffuse pollution from a number of sources such as farmland

the Environment Agency to develop water resources models.

fertilisers, nitrates and phosphates (see p.29).

G This objective is consistent with the UK Government’s Quality of Life Indicator for rivers of good or fair quality.


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S

Using water more efficiently...actions

All three water companies met a Veolia Environnement network

Water efficiency actions are another way of bridging the potential

efficiency target set at 80%. Three Valleys succeeded in halting

gap between demand and supply. The scope of actions

the previous year’s rise in leakage through an increase in detection

increased again this year (see below). Most notably more

activities and in the resources to deal with the increased number

customers are metered and more water saving devices were

of repairs. Although it failed to meet the leakage target for the

issued. All three companies operate the following programmes:

year the company’s leakage level is below the industry average.

A freephone to report leaks

Folkestone & Dover and Tendring Hundred met their respective

Free first repair or renewal of supply pipes, and

leakage targets. Having achieved consistent levels of leakage,

subsidies for subsequent repairs or renewals

they have set themselves similar targets for 2003/4 with the

Metering of new properties

approval of the regulator, Ofwat. Tendring Hundred continues

Free issue of cistern water saving devices, eg Hippos

to have the lowest level of leakage per property in the industry.

Optional metering of domestic properties, free in all areas

Compulsory metering of properties for high water using

Metering is an important demand management tool as surveys

appliances such as sprinklers

show that customers with a water meter use approximately 13%

Metering of all remaining commercial customers and

less than those without one. Its use is however limited due to

swimming pool customers, wherever practical.

current legal restrictions. All three companies continue to offer

metering free of charge, installing over 18,400 in 2002/3. Fifty In addition, Three Valleys has been leading a UKWIR (see

eight per cent of Tendring Hundred customers now have a

glossary) project to establish best practice in measuring the

meter, 38% of Folkestone & Dover’s and 21% of Three

e ffects of water efficiency measures, including their long-term

Valleys’. During the year metering on change of ownership

sustainability. The three-year project was completed in March

was introduced in Three Valleys’ North Surrey area. On average

2003. The company also participates in a number of extern a l

across the group, one in four customers now has a meter.

g roupings looking at, for example, the uptake of water efficient f i x t u res in new build developments, benchmarking water use so

As part of the targets to guarantee water supply security Three

as to better focus water efficiency techniques, improving

Valleys will be seeking increased metering for the 2005-2010

water efficiency in South East England, and promoting

regulatory period; Folkestone & Dover will apply for water

water conservation.

scarcity status so it can introduce compulsory metering.

S Water industry sustanability indicator. 3 Figures from 2000/01 onwards are for the new Three Valleys Water company which merged with North Surrey Water in October 2000.

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Case study Veolia Water Industrial Outsourcing (VWIO) provides customised and sustainable solutions to optimise water and wastewater management for industrial clients. Mettis Aerospace, Redditch, has outsourced its responsibilities for water and wastewater management to VWIO, so it can concentrate on its core business. The overall quantity and cost of process water required has been reduced as a result of VWIO improving the site water balance. This involved installing and operating a water recycling plant and a dedicated distribution network that provides recycled water to five areas within the factory. This solution minimises significantly the consumption of potable water within the industrial processes as well as reducing the volume and cost of wastewater to sewer.

Average demand for water was 1% lower than the previous

industrial water, as industry is a major water user. Reducing

year, reflecting moderate weather conditions, increased leakage

industrial water consumption not only saves water, but also

detection and repair and meter installation. There is however

reduces pollution by decreasing the amount of effluent which

an underlying long-term upward trend.

has to be treated at treatment works. This environmental objective is wholly consistent with one of the Group’s business

Water taken from the environment

objectives to increase its share of the industrial market.

For a fuller picture of total water losses (leakage figures are based on water that has been treated and put into supply), the

In the UK Three Valleys provides an emergency mains repair

companies again recorded the amount of water taken from the

service to 12 industrial and commercial customers which gives

environment relative to water put into supply. At Three Valleys

them the peace of mind that in the event of a burst or leak on

water lost during transport to and at treatment works amounted

their premises, a technician will be on site within two hours.

to 0.6% of the total abstracted, representing a decrease of 4.3%

For customers with older networks this service is invaluable in

on last year. This is due to improved raw water quality in 2002

keeping the volume of water lost to a minimum. Leakage and

when there was little flooding, as compared with 2001. In that

repair work has also been carried out on a further 12 commercial

year extensive floods resulted in water having to be discharged

customers’ premises, which again reduces losses and wastage.

to waste rather than to treatment.

In this way an increasing number of commercial customers are now turning to Three Valleys Water to help them manage

The Environment Agency issued no caution letters or pollution

ongoing water consumption.

enforcement notices to Veolia Water companies during the year. There were no water pollution prosecutions.

Folkestone & Dover visit their industrial and commercial customers annually to offer advice on water consumption.

Industrial water consumption

A water audit of Dover Harbour Board offices resulted in two

One of Veolia Environnement’s primary environmental objectives

network leak repairs and a commitment from the Board to

is to conserve natural resources, which includes controlling the

supply the company with a cruise ship docking schedule to allow

amount of water the Group takes from the environment. To

it to plan for surges in water demand. At Eurotunnel increased

achieve this it has set a target to control the consumption of

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water consumption was found to be attributable to train

In our offices

washing. Following discussions on ways to reduce water usage,

We have an ongoing target to reduce water consumption at our

a train washing facility has been introduced which recycles water.

offices. Overall, the group companies have achieved a level of 36 litres per employee which represents a reduction of 16% on 43

During the year the British Airport Authority (BAA) commissioned

litres achieved in 1999/2000. The progress achieved to date

VW Projects to undertake a study at Heathrow’s Terminal 3 to

needs to be maintained.

devise a robust methodology to assess water usage. The study results helped BAA to account more accurately for water use and to introduce a fairer charging system.

Date set

To be met during report year

Folkestone & Dover Water

Tendring Hundred Water

Three Valleys Water

Veolia Water Partnership

Veolia Water UK

Veolia Water Industrial Outsourcing

To be met by

01/02

To reduce total leakage (Ml/day)

8.5

5.2

140

-

-

-

02/03

-

-

Ongoing

8.4

5.1

140

-

-

-

03/04

Progress

Ongoing targets 01/02

To consider most efficient water appliances when replacing old or installing new fittings

New targets 02/03

To meet total leakage targets (Ml/day)

02/03

To maintain a network efficiency of over 80%*

-

-

-

Ongoing

02/03

To comply fully with abstraction licences S

-

-

-

Ongoing

02/03

To prepare Water Resource Plans and submit to the Environment Agency & OFWAT

-

-

-

03/04

02/03

To prepare draft business plans and submit to OFWAT & the Environment Agency

-

-

-

03/04

02/03

To ensure security of water supplies in all resource zones

• by 2007/08

-

-

-

-

Ongoing

02/03

To reduce office water consumption by 5% of 02/03 levels

-

-

03/04

S Water industry sustainability indicator on compliant management of water resources. * Veolia Environnment target

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Energy, Materials and Waste Our goal...to seek opportunities to reduce our consumption of

only to staff costs) as well as to the environment. Despite our

non-renewable natural resources by using renewable alternatives

best efforts to use energy efficiently, usage is dependent on

where possible, and by optimising efficiency of use. This goal

climatic conditions, customer demand and regulations. For these

reflects Veolia Environnement’s primary commitment to protect

reasons we are not able to define a realistic target for reduction

the environment, conserve resources and reduce pollution (see

of carbon dioxide emissions. In line with other capital-intensive

p.50) and a target to increase the percentage of overall

sectors the Veolia Water companies have suffered financially

production using renewable energies.

from the introduction of the Climate Change Levy. Unlike other industries, the water supply sector cannot claim any rebate from

Energy consumption...in the supply of water

the Levy due to the specific nature of the rules.

Pumping water from underground and surface sources, treating and distributing it around the network uses large amounts of

Energy consumption per unit of water put into supply was higher

energy, which is largely generated from fossil fuels. Energy use

than last year at Tendring Hundred and Three Valleys.

therefore represents a major cost to business (coming second

Energy consumption in office premises 2002/2003 Kilowatt-Hours/m2

Performance Assessment4

Folkestone & Dover,

Gas & Oil

104

Lower than “typical”

Folkestone

Electricity

74

Lower than “typical”

Tendring Hundred,

Gas & Oil

114

Lower than “typical”

Manningtree

Electricity

115

Higher than “typical”

Veolia Water Partnership,

Gas & Oil

23

Lower than “typical”

Watford

Electricity*

-

-

Three Valleys Water,

Gas & Oil

159

Lower than “typical”

Hatfield

Electricity

265

Higher than “typical”**

Veolia Water UK,

Gas & Oil

41

Lower than “typical”

London SW1

Electricity

457

Higher than “typical”

4 Energy consumption performance assessments are based on yardsticks prepared by the Government. See glossary for explanation. * It is not possible to measure electricity consumption at Veolia Water Partnership offices because they are part of an operational site. Separate meter readings for the offices cannot be taken. ** This is mainly due to the high density of centralised computing services in the Hatfield office.

✓ ✓ ✓ ✗ ✓ ✓ ✗ ✓ ✗


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The increase in energy usage can be attributed to the use of

reduction since 1995/96. This fall is associated with changes in

different water sources (water lying deeper in an aquifer requires

the mix of fuels used to generate electricity supplied through the

more energy to pump it to the surface) and the increased number

public electricity network G.

of membrane plants, as a result of the need to treat to ever higher standards. The main effort to reduce energy consumption will

Transport and Travel

continue to be focused on water treatment and pumping because

Fuel consumption

this accounts for 98% of electricity used. The company has also

Veolia Environnement has an objective to promote the use of

adopted a target to source energy from renewable sources S.

cleaner fuels and vehicles.

Three Valleys has a phased inspection and replacement

Three Valleys can demonstrate a general downward trend in

programme for pump motors and installs variable speed

fuel consumption per property connected since 1995/96,

pumps, where possible, to increase efficiency. The company

although this is primarily due to more work being carried out by

has developed a computer management system to help take

contractors. Folkestone & Dover reduced the number of litres per

advantage of more favourable daily tariffs.

property by 10% during the year. This was achieved by installing route planning technology in a number of its vehicles and raising

We also measure our consumption in offices and seek ways to

staff awareness of the need to reduce fuel use.

reduce energy use where cost-effective to do so. During the year Three Valleys assembled a Green Team from among employees

Following on its policy decision in 2001 to replace all vehicles on

to consider and implement practical actions to reduce energy

renewal with those powered by LPG, Tendring Hundred now has

usage (in addition to water and waste). At Veolia Water

seven vehicles running on dual fuel. Refuelling stations have

Partnership the office block refurbishment included installing

been built at the company’s two sites and the company has

energy- and water-efficient fittings.

offered to share them with the local council and businesses.

Greenhouse gases

Three Valleys has a programme of active maintenance and

The annual carbon dioxide emissions associated with all our

routine replacement of fleet vehicles with vehicles which meet

energy requirements, for water supply, offices and transport,

the latest emission levels.

were 97,100 tonnes, which is a 34% fall, or 49,500 tonnes

S Water industry sustainability indicators on total energy use and percentage from renewable sources G Relates to the UK Government’s Quality of Life Indicator for climate change.

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Type of fuel used Fuel continues to be substituted away from petrol and towards

The work involved improving the existing pipe using “no-dig�

ultra-low sulphur diesel and LPG (liquefied petroleum gas, which

techniques rather than open trench pipe laying, thus reducing

produces between 30 and 90% less carbon monoxide and 50%

the need for backfill material and avoiding excavation waste

fewer pollutants than petrol.)

and environmental disturbance during streetworks.

Travelling to work

Waste production and disposal in water treatment

All the water companies and Veolia Water Partnership have

Water treatment wastes are variable depending predominantly on

introduced tele- and videoconferencing in order to reduce the

the quality of raw waters and treatment processes that are used.

amount of time and energy spent in travelling to inter-company

They may contain river solids, filtrates or sludges from treatment.

meetings. Folkestone & Dover estimate this saved 1,500 km

Of the waste disposed of in the year, 99.8% (13,900 tonnes)

travel in the year.

was re-used as a soil conditioner on agricultural land, with the remainder being disposed of to landfill. This has contributed to a

Aggregate use and recycling in streetworks

Veolia Environnement target to increase the percentage of waste

We are able to monitor the use of aggregates by measuring

reused for agricultural purposes.

our own purchases and increasingly, by obliging our streetworks contractors to record their use, re-cycling and disposal of

During the year Three Valleys installed four large membrane plants

waste. In 2002-03, 37% or 59,000 tonnes of excavated material

to further increase the quality of water supplied. Similar work

were recycled by our companies and contractors rather than

began on two other sites. The membrane plants allow for

going to landfill S, compared to 35,000 tonnes last year.

washwater from the plant to be recycled to the head of the works

We remain on track with our target to reduce the amount

instead of running to waste. Twenty per cent of water Three

of waste going to landfill G.

Valleys put into supply is now treated through membrane plant.

During the year Three Valleys pursued a major programme of rehabilitation of water mains, renovating over 150km of water mains in order to maintain water quality and reduce leakage.

S Water industry sustainability indicator on management of materials from excavations (diversion from landfill). G Moving away from disposal of waste towards reduction, reuse, recycling and recovery is consistent with UK Government’s Quality of Life Indicator for waste arisings and management.


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The chart shows fuel use by the three operating companies.

Case study During the year Three Valleys received a Utility Industry Achievement Award for introducing an innovative hand-held computer technology. The award was for the category of Emerging Technologies. The J Slate, which was introduced in 2002, delivers maps and job information into the field via a modem fitted to fleet vehicles. The field information system is available 24 hours a day, seven days a week, ensuring water network information, including gas and electricity data, is available anywhere, anytime. The system’s benefits include improved customer service through streamlined job tracking, reduced vehicle journeys to depot to collect instructions etc, and reduced costs.

During the year two membrane plants were commissioned and

At Three Valleys a ‘Green Team’ was formed during the year to

construction work started at Folkestone & Dover’s Drellingore

spearhead a company-wide drive to cut energy and paper use.

membrane plant. It is due for completion by end 2003.

This initiative followed a day of trawling through rubbish skips in order to assess the potential for recycling.

Office waste Across the group we used 50 tonnes of photocopying paper in

During the year Veolia Water UK plc and Three Valleys collected

main offices, an increase of 85% compared with last year. This is

old CDs for recycling. The CDs are used in the production of

mainly due to more comprehensive data collection, which reflects

alarm boxes and motor vehicle reflectors.

actual paper usage. Folkestone & Dover has adopted a purchasing policy that For the first time we recorded the use of all other paper

maximises the purchase of materials that can be recycled.

which amounted to 157 tonnes. This was mainly used for billing and marketing purposes. We also recorded the amount of paper which came from a sustainable source which amounted to 47%.

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* 2002 figures also include waste from mains laying activities.

Note : Waste figures include some estimation.

In the laboratory at Veolia Water Partnership a new pesticide kit was introduced which tests water samples for pesticides to much higher standards. The new technology is much smaller than previous equipment and uses proportionately smaller

Main Environmental Costs of Water Our environmental data measurement systems are maturing and the confidence we can place in the data is improving each year.

sample volumes of water (100ml per sample instead of 2.5 litres). The number of solid phase cartridges and solvent has also

For the fifth year we present a summary of the main resources used, the key discharges, waste products and releases to the

been halved.

environment for each cubic metre of water we deliver to our customers. Whilst this table is not a complete picture of the

During the year Three Valleys and Folkestone & Dover recycled

resources used, we believe it indicates the principal impacts.

waste office equipment such as old fax machines, PCs, and used ink cartridges, into the recycling chain.

The Principle Environmental Costs of Water To deliver 1 cubic metre = 1000 litres (1 tonne) of water to a customer:

1998-99

1999-00

2000-01

2001-02

2002-03

kWh of energy (electricity, gas & heating oil) used

0.768

0.722

0.775

0.767

0.776

Cubic metres of water lost from our pipes in distribution

0.129

0.118

0.111

0.118

0.114

Cubic metres of water lost from customers’ pipes

0.064

0.059

0.059

0.061

0.061

kg of treatment wastes, excavates & aggregates generated

1.005

0.586

0.333

0.563

0.603

- (of which) kg landfilled

0.796

0.456

0.247

0.388

0.347

- (of which) kg recycled

0.209

0.130

0.086

0.175

0.256

kg of carbon dioxide emitted into the air

0.351

0.327

0.349

0.346

0.341

litres of fuel used in fleet vehicles

0.005

0.004

0.003

0.004

0.003

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Date set

Folkestone & Dover Water

Tendring Hundred Water

Three Valleys Water

Veolia Water Partnership

Veolia Water UK

Veolia Water Industrial Outsourcing

To be met by

Progress

Ongoing targets 00/01

To develop an Intranet based library of good practice

-

Ongoing

97/98

To incorporate environmental and social assessments into capital projects

-

-

-

-

-

Ongoing

97/98

To address energy consumption in premises where current rates are higher than typical

-

-

-

-

-

Ongoing

97/98

To achieve a reduction in waste going to landfill

-

Ongoing

01/02

To assess potential benefits of tele- and videoconferencing

-

Ongoing

01/02

To ensure that, where possible, all fleet vehicles are converted to LPG

-

-

-

-

-

06/07

00/01

To undertake an energy assessment

-

Ongoing

02/03

To address high levels of energy consumption at Iver treatment works

-

-

-

-

-

03/04

02/03

To evaluate the effectiveness of water sludge disposal to agricultural land

-

-

-

-

-

03/04

02/03

To reduce average mileage by 5% on 2002 figures

-

-

-

-

-

03/04

02/03

To maintain improvement in fuel consumption

-

-

-

Ongoing

02/03

To raise employee awareness of energy use in the office

-

-

-

-

-

Ongoing

02/03

To source energy from renewable sources

Ongoing

02/03

To identify a Champion to establish a baseline for paper collection and recycling and set a target for reduction in next regulatory year

-

-

-

03/04

02/03

To recycle 50% of plastic cups

-

-

-

-

-

03/04

02/03

To recycle old CDs

Ongoing

New targets

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Water Services and the Community Our goal...to meet our customers’ expectations in terms of the

Extracts from the 2001 Drinking Water Inspection

provision of water and related services and to contribute in other

The DWI Chief Inspector found that all three companies “continue

ways to the quality of life in the communities we serve. This goal

to supply customers with drinking water of a high quality”:

reflects Veolia Environnement commitments to protect the

Folkestone and Dover - 99.89% of samples met the

environment, upgrade facilities to comply with regulations and

required standard. There were no water quality incidents

standards, improve health and safety performance, and meet

during 2002 that affected drinking water quality.

and anticipate as far as possible present and future public needs

Tendring Hundred - 99.84% of samples met the required

and expectations (see p. 50), and an objective to guarantee the

standard. There were no water quality incidents during

quality of water supplies.

2002 that affected drinking water quality. •

Three Valleys - 99.82% of samples complied with the

Supply of drinking water

regulations. Of the samples that did not comply, none were

During the year we provided drinking water to over 3.3 million

considered harmful to consumers’ health. There were six

people. The Drinking Water Inspectorate in its annual report

incidents of a deterioration in drinking water quality during

concluded that each of the Veolia Water UK group companies

2002. Each was of a short duration and the company took

continued to provide water “of a high quality”. Folkestone &

remedial action.

Dover Water’s compliance with the drinking water standards exceeded the industry average. UK water standards are among

The DWI report provides further information on water quality

the highest in the world.

results and incidents (see www.dwi.gov.uk).

In addition to the drinking water quality standards, the Drinking

Water quality treatment

Water Inspectorate also measured water companies’

All water that enters the public water supply has to be

performance against a number of quality parameters, to gauge

chlorinated. In addition, depending on the water source,

how well treatment works and distribution systems are operated

ultra violet light may be used as a further disinfectant.

and maintained. All three companies exceeded the average, with Three Valleys Water significantly above average.

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S

Use of gaseous chlorine (tonnes)

Use of sodium hypochlorite (tonnes)

2000/01

2001/02

2002/03

2000/01

2001/02

2002/03

Folkestone & Dover

7

10

7

0

0

0

Tendring Hundred

5

5

3

130

168

154

Three Valleys

13

225*

225

479

1267*

1694

*increase due to improved data collection

Chlorination

Ozonation

The company uses two methods to chlorinate water: chlorine

Ozone is used in water treatment to break down organic

gas (either generated on site or delivered in cylinders) or a

pollutants such as pesticides and herbicides. It can also

sodium hypochlorite solution. Since 1995 the water companies

improve the taste and odour of the water and assist in

have monitored and greatly reduced their use of cylinder chlorine

disinfection. Ozone is produced from either air or oxygen which

gas, because of the handling, storage, environmental and

is passed through glass tubes when an 11,000 volt electrical

health and safety issues associated with the chemical.

discharge is applied. It is pumped into and absorbed by the

Replacement with sodium hypochlorite has reduced safety

water. Any unabsorbed ozone is drawn off and destroyed.

and environmental risks. A risk assessment of all sites determines which system is used.

Air stripping At Dunmow treatment works Three Valleys is improving water

The quantities of cylinder chlorine gas Three Valleys stores at

quality by airstripping VOCs (volatile organic compounds) from a

its Iver water treatment works brings the site under the Control

polluted water source. The technology used for this is the most

of Major Accidents and Hazards regulations (see p.41.). The

efficient in terms of energy usage.

company has a target this year to replace chlorine gas with less hazardous sodium hypochlorite. This will also reduce the amount

Nitrates

of sulphur dioxide used.

Although the presence of nitrates would usually be associated with agricultural pollution, urban pollution and high groundwater

Where chlorine is used in high concentrations as part of the

levels have led to elevated nitrate concentrations in a number of

water treatment process residual levels in the water need to be

Three Valleys’ sources. The company has undertaken specific

reduced before it is put into supply. Excess chlorine is neutralised

studies into the causes of these high levels. The water entering

with sulphur dioxide or sodium bisulphite. A small amount is left

supply is managed to ensure it remains within the regulatory

in order to safeguard the quality of the water through its journey

targets for nitrates.

from treatment works to point of use. S Water industry sustainability indicator. 5 North Surrey Water merged with Three Valleys Water in October 2000

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Prospect Park, Heathrow During the year Three Valleys Water’s trunk mains scheme to link the Iver and Egham waterworks involved running a section of the mains pipe above ground through a park near Heathrow. Previously a resurrected landfill site which has been regenerated, the park is now used by the public and BAA employees. Three Valleys resolved the pipe’s unsightly appearance by encasing it in a specially constructed 30 metre steel bridge. It was then covered with a timber fascia to replicate the park’s other bridges. Three Valleys’ approach was unique as most exposed mains pipes need to be covered with barbed wire to prevent people tampering with them.

Implementation of the EC Nitrate Directive and the new Nitrate

filtration plants to treat water. Three Valleys now has the highest

Vulnerable Zones designated following the Government’s

p roportion of membrane treatment capacity compared with other

diffuse pollution review may result in greater protection for

water companies. Two thirds of groundwater supplies will be

the environment from this type of pollution in future.

t reated by this process by March 2005.

Lead

During the year construction work started at Folkestone &

New regulations regarding the content of lead in water have led to

Dover’s Drellingore membrane plant. It is due for completion in

the planned installation of around 50 new treatment plants. The

January 2004. Wastewater from the treatment process has been

p rogramme has been agreed with the Drinking Water Inspectorate

diverted to a pond in order to help sustain wildlife.

and consists of dosing water supplies with orthophosphate. This reduces the solubility of lead in treated water. The treatment is

The construction of ultra- and microfiltration plants can

expected to safeguard compliance with the interim standard for

remove the need for extensive disinfection, thereby reducing

lead under the new EU Drinking Water Directive.

the environmental impact associated with the use of disinfectants. Another advantage is the significant reduction in water loss

Orthophosphate dosing reduces the need to replace thousands

and chemical usage during the treatment process. These

of lead pipes. It is estimated that about 30% of all connections to

environmental benefits contribute to the conservation of natural

the mains have lead piping installations, and it is highly likely that

resources, reduced energy usage and lower risk of pollution.

this treatment will obviate the need for such customers to replace their water pipes.

Research and Development Investment in research and development represents a

Folkestone & Dover installed 7 orthophosphate dosing plants

fundamental element of the Veolia Environnement past, present

during the year. Three Valleys have installed dosing plants at

and future success. Anjou-Recherche is at the heart of Veolia

36 sites.

Environnement research and development and innovation efforts. Celebrating its 20th anniversary in 2003, Anjou-Recherche also

Cryptosporidium

co-ordinates the worldwide network of research at Veolia Water.

Three Valleys’ approach to water quality is based on the

Anjou-Recherche’s mission is to develop tomorrow’s new

p recautionary principle of applying controls in advance of complete

products and technologies for Veolia Water, to respond to the

scientific understanding. As part of this approach the company

needs of municipal and industrial water and wastewater markets.

installed during the year four more state-of-the-art membrane

Its global reach builds upon a network of over 450 researchers

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working in Europe: Anjou-Recherche (France), Kompetenz

Investigation of the ecological impacts of low flow rivers

Zentrum (Germany), Veolia Water Partnership (UK), North

Application of a biodiversity methodology to pilot sites

American Technology Center (Canada) and Windsor (Australia).

Focus group opinion on customer expectations of a water company’s products and services

In the UK the Veolia Water companies have invested over £0.75 million in projects devoted to specific company and collective

Economic modelling of the supply chain in key water resource areas.

industry issues S G. This work has been conducted at company level and in collaboration with the corporate research and

Respecting our surroundings

development organisation, Anjou Recherche, and external

Major capital schemes are planned and managed on behalf of

bodies such as UKWIR and various academic institutions.

the four water companies by Veolia Water Partnership. Each scheme is carefully designed and planned from the outset, with

Papers have been presented at various meetings including

an objective of minimising disturbance to local residents and to

input to the parent company’s material for the World Summit in

the environment. This is consistent with Veolia Environnement’s

Johannesburg in September 2002 and the World Water Forum

objective to curb local nuisance by enhancing quality of life and

in Kyoto in March 2003.

ensuring installations are integrated within the local landscape.

Significant research and development areas include the following:

Folkestone & Dover is working to minimise the size of new

Pilot scale treatment of bromate contaminated groundwater

treatment plants being developed, and to make use of the

Water quality in the distribution system

wastewater to feed ponds which support wildlife.

Optimisation of membrane processes operations

Management of microbial risk and security of water

Management of operations

from Source to Tap

We have ongoing commitments to update site environmental

Effect of climate change on nitrate levels

profiles with environmental information. The purpose is to

Control of bromate formation during onzonation

document the environmental baseline at our operational sites so

Behaviour of Soil Conditions and its contribution to

that appropriate operating procedures can be developed. In this

bursts and leakage

way environmental management becomes a seamless part of

Probability of Pipe Failure

operations. Good operating procedures can help minimise

Non-destructive testing of pipelines

potential disruption or nuisance to our neighbours, particularly in

National burst database

relation to the safe storage of chemicals. Folkestone and Dover

Mainlaying in contaminated land

produced a comprehensive set of site environmental profiles as

Optimisation of flushing

part of their efforts in obtaining ISO14001 certification in 2002.

Impacts of climate change on supply and demand balance

Development of a pollution assessment tool for water resource protection

Date set

To be met during report year

01/02

To replace chlorine gas with sodium hypochlorite at Iver treatment works

Folkestone & Dover Water

Tendring Hundred Water

Three Valleys Water

Veolia Water Partnership

Veolia Water UK

To be met by

-

-

-

-

02/03

Progress

Ongoing targets 95/96

To include environmental information in site environmental profiles as they are written

-

-

-

-

Ongoing

98/99

To complete site environmental profiles for all treatment works

-

-

-

-

04/05

02/03

To replace sulphur dioxide with with sodium bisulphite at Iver treatment works

-

-

-

-

03/04

02/03

To explore the voluntary control of pesticide use by tenant farmers in water catchments

-

-

-

-

03/04

New targets

S Water industry sustainability indicator on investment in research. G Consistent with UK Government’s Quality of Life Indicator for investment that is vital to future prosperity.

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Biodiversity Our goal...to carry out our activities to maintain and enhance

Management of our landholdings

biodiversity (eg. wildlife), and to assist others to do the same.

The companies have for the second year recorded the amount

This goal reflects Veolia Environnement’s primary commitment

of land owned which has a statutory designation, eg SSSI, SPA,

to protect the environment (see p.50).

SAC, including ancient woodlands and sites of high wildlife value. They have also recorded the percentage of this land which

Our policy is to give particular priority to projects and activities

is subject to a management plan. This is to ensure efficient

that foster species and habitats which are the subject of

management of our landholdings.

Biodiversity Action Plans (see glossary) and are found on our own and adjacent land G. The tables show a selection of

Land owned Percentage under a statutory with designation (km2) management (% of all landholdings) plan

species and habitats that we are helping in this way.

Priority Species Folkestone & Dover

Dormouse, silver-spotted skipper, Chalkhill Blue, great crested newt

Tendring Hundred

Water vole, dormouse, stag beetle, great crested newt, skylark, song thrush, mining bees, bumble bees

Three Valleys

Reed bunting, grasshopper warbler, water vole, otter, pipistrelle bat, bittern, reed bunting, great crested newt, white clawed crayfish, black throated grebe

Folkestone & Dover Tendring Hundred Three Valleys

4 (50%)

99%

0.05 (6%)

0%

2 (35%)

92%

Folkestone & Dover continued to be a partner in the White Cliffs Countryside Project which works to enhance and protect the countryside in south east Kent. Coppicing of the woodland at Lye Oak, a SSSI site, was carried out during the year, with the extra light benefiting the wood’s rare animal and plant life.

Priority Habitats Folkestone & Dover

Chalk grassland, woodlands, Dungeness shingle

Tendring Hundred

Acid grassland at Great Bentley

Three Valleys

Chalk rivers, grazing marsh, fen, lowland calcareous grassland, lowland dry acidic grassland, lowland heathland, reedbeds

In addition, scrub was cleared for rides. Farms owned by Folkestone & Dover in the Alkham Valley have been placed under countryside stewardship to help improve public access through the valley by linking footpaths, bridleways and byways.

Business priorities at Tendring Hundred have meant that active management of the Great Bentley site and Manningtree ponds

G This relates to the Government’s Quality of Life Indicator for the populations of wild birds.


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Three Valleys received a British Trust for Ornithology national award for community nature conservation work at Stockers Lake in partnership with the Herts & Middlesex Wildlife Trust and the Friends of Stockers Lake. Three Valleys’ long standing partnership with these two organisations demonstrates how business and community can work together to provide effective conservation sites for Britain’s declining bird population.

by company staff was reduced during the year. The company is

The water vole (Arvicola terrestris) is Britain’s fastest declining

considering alternative ways of managing the sites.

mammal and is already extinct in Devon and Cornwall. Its decline has been linked with damage to its habitat through river

During the year Three Valleys employees joined members of 15

engineering, changes in agricultural practise and predation by

other organisations to undertake a Water Vole Survey, organised

the American mink.

by the Chiltern Conservation Board, of the Rivers Ver, Gade and Bulbourne. A more detailed survey of the most promising

Do you want more information about our business and

location is also planned. Habitat enhancement and mink

biodiversity? Conservation Access and Recreation reports

control could then be targeted in these areas to protect any

prepared by each company are available. These describe

remaining populations.

policies, plans and performance relating to conservation, access and recreation within their supply areas.

The water vole is one of Three Valleys’ and Tendring Hundred’s Biodiversity Action Plan (BAP) Priority Species, which forms part

Please see page 51 for contact details.

of the Company’s Biodiversity Environmental Target. Through the BAP Veolia Water has become involved in the plight of the water vole, highlighting the Company’s commitment to the environment and strengthening links with organisations in the community.

Date set

To be met during report year

01/02

To pilot a biodiversity index

Folkestone & Dover Water

Tendring Hundred Water

Three Valleys Water

Veolia Water Partnership

Veolia Water UK

To be met by

-

02/03

Ongoing

-

-

-

03/04

Progress

Ongoing targets 97/98

To identify habitats and species on company-owned land that occur on national and local lists and seek to enhance and mainatain their diversity

New targets 02/03

To survey 5 company-owned sites for biodiversity value

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Engaging with our Stakeholders Our goals...to inform others of the steps we are taking to

Customer service

promote sustainable development, to consult them, and to take

Three Valleys introduced a new customer information leaflet to

into account their views when developing our programmes and

accompany water bills. For customers who do not have English

plans. This goal reflects Veolia Environnement commitments

as a first language information can be translated into 100

to protect the environment; integrate international standards

different languages. In addition, large print, Braille and

covering basic human rights, ethics, the environment,

Minicom® services are available.

occupational safety and labour law; and extend our dialogue with stakeholders (see p.50).G

For vulnerable and special needs customers the company maintains a ‘Safeguard’ register which ensures they are always

In line with a Veolia Environnement objective to promote health

supplied with the right service at the right time, in accordance

and environmental education, Veolia Water UK companies have

with their needs.

an ongoing target to give customers more information about the environmental implications of their water supply service.

The company recognises that not all customers are able to install a meter if they would like one. For such customers

In December 2002 Veolia Water UK was instrumental

the company has developed an assessed tariff based on

in organising Veolia Environnement’s first informal

estimated consumption.

stakeholder dialogue in London. The report is available at www.d.durable.veoliaenvironnement.com.

OFWAT, the water industry’s economic regulator, assesses companies’ overall delivery of service to customers annually.

Debt

In the 2002-03 Overall Performance Assessment report

During the year Veolia Water companies revised their codes

Tendring Hundred was awarded first place from all the

of practice and procedures on debt recovery for domestic

companies in England and Wales. The report also announced

customers. These offer advice to customers who are

that for the fifth year running Tendring Hundred received a

experiencing difficulty in paying their water bills.

five-star rating for its performance on key customer service measures. Folkestone & Dover received the same rating for the seventh year in succession.

G The water companies’ social and community initiatives are consistent with UK Government’s Quality of Life Indicators for tackling poverty and social exclusion, increasing employment, and education.


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Environmental Education Centre During the year the purpose-built Environmental Education Centre at Clay Lane, Bushey, was visited by over 5,800 schoolchildren, teachers and other visitors. The education programme links all activities to the national curriculum and includes visits to the on-site treatment works and the promotion of water efficiency messages. The Centre’s extensive outreach programme continued during the year with members of the educational team visiting more than 50 schools to increase awareness of water efficiency, teach children to use water wisely in a fun way and make water issues relate more closely to national curriculum teaching. Teachers from another 50 schools received training at the Centre to hold their own Water Days. In this way the outreach programme reached more than 9,800 schoolchildren and teachers. The Centre received a Green Apple environmental award during the year for the water audit project for schools which it developed in conjunction with Hertfordshire County Council. Staff from the Centre worked with children, teachers and caretakers in 50 schools to promote water consciousness and help them assess their daily water use. Since opening in September 1998, more than 65,000 young people have now either visited the Education Centre or have used its resources through the national curriculum. The Centre achieved Eco Centre status in 2002, an education award for environmentally friendly organisations.

At Three Valleys Water customer debt has risen by 16% over the

way they contribute to a Veolia Environnement objective to foster

last five years. To keep costs down for all customers it is important

social cohesion and sponsor good causes.

that bills are paid promptly. The company has there f o re set itself a target to introduce a debt management scheme, based on a

During the year Veolia Water UK plc took part in a scheme aimed

behavioural scoring system which assesses the risk of customers

at raising levels of achievement in schools serving the most

based on previous history. The company will then vary collection

disadvantaged pupils by mobilising targeted support from

cycles according to the customer’s score.

London employers. Employees helped children with their reading and maths at a local primary school situated on the edge of

Charitable donations Charitable donations made by our companies in 2002

Westminster’s largest council estate. The school has a high 6

proportion of pupils for whom English is an additional language

totalled £40,400, together with £49,500 of sponsorship S.

and where the risk of social exclusion is great. Feedback from

Three Valleys and Folkestone & Dover match sums raised

the school suggests the children’s knowledge is improving, while

for charity by employees.

employee feedback confirms employees have learnt new skills, have a better understanding of the local community and its

Employee volunteering

needs and experience personal satisfaction. Following the

Veolia Water UK companies actively encourage employees to

successful pilot, it is intended to extend the scheme to other

become involved in local community initiatives, in the belief that

Veolia Water UK companies.

there are benefits for both the community and employees. In this

S Water industry sustainability indicator on investment in communities. 6 For calendar year ended 31 December 2002.

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Our employees...

Other stakeholders

Three Valleys and its employees are long-standing

Veolia Water companies are actively involved in a number

supporters of the charity WaterAid. Fundraising activities are

of external groups, including Water UK, Thames Regional

coordinated by a WaterAid Committee. The company again

Environmental Protection Advisory Committee, Environment

matched the amount raised by employees on sponsored

Agency working groups, Associate Parliamentary Environment

monthly dress down days. Other fundraising events included

Group, Kent Sustainable Business Partnership, Groundwork,

sponsored runs, eg the Rickmansworth Road Run, the

Business in the Community, Business in the Environment,

Severn Trent mountain challenge, and a Bring and Buy sale

Working Herts, Environmental Analysis Co-operative, National

in aid of the Blue Peter WaterWorks Appeal.

Society for Clean Air, Universities of Herts and Surrey, and the

Three Valleys and Veolia Water Partnership staff raised funds

CBI (Environmental Affairs and Academic Relations Committees).

for BBC Children in Need. •

Folkestone & Dover offered work experience placements to

Veolia Water Industrial Outsourcing are members of the Business

pupils aged 14 to 15.

Council for Sustainable Development UK.

Folkestone & Dover employees raised money for a local hospice through a sponsored entry to the London marathon.

Veolia Environnement is a member of the World Business

At Veolia Water Partnership dress down days raised money

Council for Sustainable Development (WBCSD) and Entreprises

for charity. Old boots and football kits were collected and

pour l’environnement (EPE).

sent to Africa as part of KitAid •

Veolia Water Partnership provided schoolchildren and

Veolia Environnement supports the following initiatives: Global

students with work experience placements.

Reporting Initiative (GRI), Greenhouse Gas Protocol Initiative,

Staff at Tendring Hundred completed the arduous Six Peaks

United Nations Global Compact, and the World Resources

challenge in July 2002, raising money for WaterAid

Institute (WRI).

Tendring Hundred’s annual golf day raised money for WaterAid.

Veolia Water employees participated in a fun run around Battersea Park, London, to raise money for charity.

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Working with the community Grants from the Three Valleys Water fund, which is administered

security measures. The partnership has a benefit for Three

by the Hertford s h i reCommunity Foundation, were made to a

Valleys also. When visiting vulnerable customers to fit security

youth club, a toddler group, a gardening scheme for older people,

devices, WATRAC leave application forms for Three Valleys

the Salvation Army, a sailors group to buy materials to improve

Water’s Special Needs Safeguard Scheme for those who fit the

walkways for wheelchair use, and a self-help Lupus group.

right profile (see p.34).

Three Valleys’ employees worked with a nursery school to create

Folkestone & Dover hosted an inter-company cricket tournament

an environmentally safe play area and contributed food for

at their premises, raising money for WaterAid.

‘Harvest for the Hungry’, a EuroAid Charity appeal which Tendring Hundred continued to run its Maths Trail at Horsley

delivers food to needy people in Eastern Europe.

Cross pumping station. During the year 80 pupils aged between Three Valleys sponsored the canal-based charity Rickmansworth

9 and 11 undertook the challenge. The company’s Environment

Waterways Trust. The company funds the development grant for

Centre at Manningtree was visited by 170 schoolchildren.

the Trust’s operations and facilities in the Batchworth Lock area,

Engineering and environmental talks by company representatives

particularly the development of the education programme. It also

were also attended by 200 adults.

supports the annual Rickmansworth Canal Festival and are part of the Festival Committee, working with the British Waterways,

The company participated in the Tendring Hundred Agricultural

Three Rivers District Council and the Waterways Trust.

Show which resumed in 2002 after a year’s absence due to the Foot and Mouth crisis. Customers were given information on

The company and employees donated money to support a

how their water is supplied and on some of the conservation

campaign to fight bogus callers, Watford and Three Rivers

activities that the company undertakes.

Against Crime (WATRAC). The organisation offers practical help for vulnerable people in the form of door chains and other

Folkestone & Dover Water

Tendring Hundred Water

Three Valleys Water

Veolia Water Partnership

Veolia Water UK

Veolia Water Industrial Outsourcing

To be met by

Date set

To be met during report year

01/02

To increase by 5% the number of partners engaged with during the year

-

-

-

-

-

02/03

01/02

To develop and pilot new programmes to support education

02/03

Progress

Ongoing targets 95/96

To engage in a dialogue with customers, employees, suppliers and others about our products, services and performance

Ongoing

95/96

To promote metering and develop appropriate socially-responsible tariffs

-

-

-

Ongoing

97/98

To give customers more information about the environmental implications of their water supply service

-

-

Ongoing

01/02

To carry out Duty of Care audits on suppliers

-

-

-

-

Ongoing

New targets 02/03

To retain 100% of principal customers

-

-

-

-

-

Ongoing

02/03

To improve or maintain our Ofwat Overall Performance Assessment ranking to upper half of industry S

-

-

-

03/04

02/03

To introduce a debt management scheme

-

-

-

-

-

03/04

S Relates to water industry sustainability indicator on standards of service.

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Business Management for Sustainable Development Our goal...to manage our businesses taking into account and

During the year both Folkestone and Dover Water Services and

balancing the three dimensions (environmental, social and

Veolia Water Industrial Outsourcing achieved certification to the

economic) of sustainable development. This goal is consistent

ISO 14001 standard. VWIO’s integrated management system

with a number of Veolia Environnement’s commitments, ie to:

(environment, health and safety, and quality) was designed and

implement an Environmental Management System

implemented in a very short time, especially considering the

integrate international standards covering basic human

complexity of the business. As part of the ongoing development

rights, ethics, the environment, occupational safety and

of the business, the management system will be rolled out to

labour law

each new outsourcing contract.

improve health and safety performance

provide employees with training and opportunities

Workforce profile

for promotion, and

The social dimension of sustainable development concerns an

extend our dialogue with stakeholders (see p.50).

organisation’s impacts on the social systems within which it

operates. For our current and future employees this translates

Management systems S

to an objective to ensure that no employee or applicant for

Formal environmental, health and safety, and quality systems are

employment receives less or more favourable treatment, whether

fundamental to continuous improvement in our performance.

through direct or indirect discrimination, on the grounds of race,

These systems are at various stages of maturity throughout our

sex, sexual orientation, religious beliefs, creed, colour, nationality,

businesses and are being integrated into the overall management

ethnic or national origins, marital or parental status.

of the business in a seamless manner. The introduction of systems that are compliant with the ISO 14001 standard is a

To reflect this, we have modified our goal to monitor the

target set by the Veolia Environnement group. It is essential that

workforce profile and, where appropriate, move towards aligning

certification to the standard adds value to our business and

it with that of the local employment market in favour of a

undergoes a detailed analysis of benefit and cost.

recruitment and selection policy based on objective criteria

S Relates to water industry sustainability indicator on managing environmental and sustainability issues.


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consistent with applicants’ skills, abilities and potential. No

equality in the workplace8. Employees registered as disabled

applicants or employees will be unfairly discriminated against on

make up 0.45% (0.38% in 2001). These improvements reflect

grounds of criteria not relevant to the performance of the job.

the Group’s continued emphasis on equal opportunities. For the first year we recorded the percentage of the workforce

This policy is consistent with Veolia Environnement objectives to

from ethnic minorities: 4.7%. This compares with estimates that

anticipate demographic challenges and improve competency

the ethnic minority population in the South East region as a

management, and to offer secure jobs.

whole is 4%.

Three Valleys’ aim is to become the employer of choice where

In anticipation of European legislation on age discrimination and

people want to work, by continuously developing a working

to ensure a balance of experience and career progression, we

environment that attracts, retains and rewards talented people

measure the age profile of our workforce.

who live its values.

Employee consultation 20017

20027

No. of employees at 31st December

1316

1341

Of which: No. full-time:

1257

1216

No. part-time

25

118

1215

1307

42

34

No. permanent contract: No. fixed term contract

Veolia Environnement has objectives to ensure employees have representation at all levels and to monitor and evaluate employee satisfaction. The Veolia Water UK companies carried out a second annual employee survey in 2002. Staff were invited to contribute ideas for the future of the company. As a result of the survey’s findings, heads of departments will be working with their teams to understand fully and address the issues that directly

Net employment creation: 25 Average turnover: 17.6% S

affect them.

For Folkestone & Dover staff internal communication emerged

Diversity S S Women make up 36.5% of the workforce (35.8% in 2001),

as an issue. As a result the company is considering ways of improving the format and frequency of its employee newsletter.

and 26.8% of managers (18.6% in 2001). This compares with averages of 48% and 35% from over 200 private and public enterprises who took part in a benchmarking exercise of gender

7 Figures refer to the calendar year S Water industry sustainability indicator on employee turnover. S S Water industry sustainability indicator on workforce diversity. 8 The 2003 Benchmarking Report into gender equality in the workplace was organised by Opportunity Now, a Business in the Community campaign.

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Industrial relations S At Three Valleys Water management successfully negotiated

The reduction in hours worked complies with both the spirit and

with staff and union representatives to secure a significant

intent of the European Working Time Directive.

increase in labour productivity and to generate large savings in every area of its activity to enable it to remain financially

A number of project teams were set up to develop job

viable, despite a reduction of 15.2% in income imposed

definitions, competence structure and profiles, a job evaluation

by Ofwat.

scheme and proposed changes to other terms and conditions of employment. The project teams reported back their findings

Through the Joint Negotiating and Consultative Committee

to the main group with recommendations. The changes

(JNCC), which comprises representatives from the Company

implemented involved amending employee earnings/salaries,

and representatives from three Trades Unions, the company

which was done gradually over an 18 month period.

launched a project in 2002 to negotiate the consolidation of salaries and removal of an overtime culture.

Benefits •

After the 18-month transition period, standby is now for

The aims of the project were:

emergency work only and the amount of overtime worked

has significantly decreased.

to create a working environment which encourages the development of competence and high productivity

reduced with less tired workforce and better work planning

to reduce the risks to staff and the Company which are inherent in the very high levels of overtime currently

To the Company - costs are far more controlled and risks

To the Staff - better quality of life through reduced working time and guaranteed regular payments

worked in some areas •

to offer staff a better quality of life by reducing working time

To the Customer - improved service

to provide staff with enhanced, guaranteed, inclusive salaries

To the Environment - reduction in out-of-hours work with

to considerably improve pensionable salaries, thus securing a better future for staff

to provide enhanced sick pay

to provide enhanced holiday pay

S Water industry sustainability indicator on workforce representation.

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S

Note: ‘Reportable incidents’ are deaths, major injuries, accidents resulting in 3 days off work, diseases and dangerous occurrences [as defined by the Reportable Injuries, Diseases and Dangerous Occurrences Regulations 1995 (RIDDOR)]. Figures not available for Veolia Water Projects and Veolia Water from 1999 to 2001. No incidents were reported for Veolia Water Projects and Veolia Water from 2001 to 2003. Within the smaller water companies even one accident among a small number of employees will lead to an apparent large percentage increase.

Work/life balance Three Valleys Water and Veolia Water Partnership are committed to

Three Valleys were awarded a Gold Award for the sixth

supporting employees who are working parents and understand

consecutive year by the Royal Society for the Prevention of

the difficulties that can sometimes be associated with this. To

Accidents. The company is playing an active role in the industry

support them in managing their working hours, the company has

wide ‘Clearwater’ 2010 initiative which will look to reduce

introduced a Flexible Working for Parents Policy which enables

occupational health problems by 30% over the next 10 years.

parents to be able to apply to work flexibly. As a result of the amount of chlorine and sulphur dioxide stored

Whistleblowing

at Iver water treatment plant (see p.29) Three Valleys registered

In line with good practice Three Valleys Water and Veolia

the site with the Health and Safety Executive and the Environment

Water Partnership introduced during the year a whistleblowing

Agency, the competent bodies under the Control of Major

procedure aimed at encouraging an environment where all

Accidents and Hazards regulations (COMAH). The company now

employees are able to raise their concerns about acts of

has a target to replace the chlorine and sulphur dioxide with less

malpractice or misconduct within the companies, without

hazardous sodium hypochlorite and sodium bisulphite re s p e c t i v e l y.

fear of reprisals or victimisation. There were no fatalities in our water companies. Work days

Health & safety

lost due to work accidents amounted to 596.

Health and safety plays an important part in the everyday culture of our companies. A Veolia Environnement commitment (see

Three Valleys made greater use of its Occupational Health

p.50) to improve health and safety performance underpins a

Scheme to address increasing levels of staff absenteeism S .

target for all Veolia Water UK companies to improve existing

The issue will be addressed more closely in 2003/04.

accident and incident rates. During the year Three Valleys Water reviewed the existing procedure for accident/incident reporting. The company has decided to introduce ‘Near Miss Reporting’ to trigger prompt investigations and prevent near misses turning into accidents. Folkestone & Dover coached staff in health and safety training.

S Water industry sustainability indicators on occupational health and safety and the working environment.

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Training and career development Veolia Environnement is committed to providing employees

of employees that attended a training course during the year

with training and opportunities for promotion (see p.50). It has

was 86% (78% women, 91% men). Total annual cost of training

adopted a number of objectives aimed at maintaining a low

(excluding salaries) as a percentage of total gross annual salary

staff turnover rate through offering secure jobs, developing high

was over 1% S . Major strategic objectives for the year were

quality social protection, and offering job mobility.

personal leadership, management of business risk, technical, health and safety, and management development. Following a

As part of its balanced scorecard approach to performance

re-assessment Three Valleys retained its Investors in People

measurement (see page 44), Three Valleys Water is committed to

status. The company also upgraded its quality management

becoming the employer of choice where people want to work,

registration to ISO9001:2000.

by continuously developing a working environment that attracts, retains and rewards talented people who live its values. The

Each water company continues to train its new entrants on the

company has introduced a new personal development system

company’s environmental policies and performance through

that provides a more structured approach to learning and career

sessions at the company induction programme.

development. Employees can access individual personal development centres online. Personal development plans will

At Folkestone & Dover environmental awareness and safety

also be provided for staff at Folkestone & Dover Water, Veolia

training was provided for all staff as part of the ISO14001

Water Partnership and Veolia Water Industrial Outsourcing.

system. Subjects covered included fire fighting, first aid, health checks, streetworks, operation of new plant and use

Future leadership of Three Valleys has been identified as a

of breathing apparatus.

priority; as a result the company will introduce a management development programme in 2003/4. A graduate programme

As part of Veolia Water Industrial Outsourcing’s management

to train junior managers was developed during the year.

system a computer-based training package was developed to deliver employee awareness and understanding of environmental

In 20029, 1,152 employees (some employees were trained more than once) at Three Valleys and Veolia Water Partnership received training, of which 250 were managers. The percentage

9 Figures refer to the 2002 calendar year. S Relates to water industry sustainability indicator on investment in staff.

and safety issues.


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Benchmarking

Supply chain management

Veolia Environnement is committed to encouraging partners,

Business in the Community Corporate Responsibility Index

In 2002 we took part in the Business in the Community’s first

subcontractors and suppliers to adhere to its sustainable

Corporate Responsibility Index. Our score placed us in the top

development commitments. The VE Purchasing Charter sets

20 percent of companies, outperforming the sector as well as

out the purchasing values, which include health and safety and

the average overall Index.

environmental considerations, and specifically behaviour toward suppliers. Here in the UK the Veolia Water companies, as part 2002

Veolia UK Water Group

88

Average Score - Water Sector*

81

Average Score - all participating companies

85

* Average for all participating water companies

of the reorganisation of the business, have taken the opportunity to centralise and consolidate the purchasing and procurement functions. This has allowed the development and inclusion of environmental and social criteria in supplier selection and performance procedures. As the system develops this will be supported by specific training and auditing.

Business in the Environment Index of Environmental Engagement

Our 2002 score in the Business in the Environment Index was

The Group companies are aware of the need for timely payment

slightly less than 2001 due to a change in the methodology.

for goods and services received. The Group has a policy to settle

Nevertheless, it was better than the average score of FTSE100

the terms of payment with suppliers when agreeing terms of

companies and equal to the average score of participating FTSE

business and to pay in accordance with contractual and other

350 utility companies. The 2003 Index is due to be published in

legal obligations. During 2002 the average time taken by Group

March 2004, and so will not be available in time for this report.

companies to settle suppliers’ invoices was 34 days, compared with 36 days for 2001.S

Employers’ Forum on Disability Global Inclusion Benchmark 2003

Veolia Water was one of 68 companies to be scored on the basis of documentary evidence that disability is an important issue for the business. Our score ranked us in 32nd place,

Pensions and socially responsible investment Regulations requiring Trustees of Pension Plans to disclose in their Statement of Investment Principles “the extent (if at all) to which social, environmental or ethical considerations are taken

exceeding the industry as well as the country averages.

into account in ... investment” came into effect in July 200010.

1995

1996

1997

1998

1999

2000

2001

2002

15

64

77

87

89

85

89

87

Average Score - Utilities Sector*

-

-

-

89

86

84

89

87

Average Score - FTSE100**

-

60

67

75

73

72

73

77

Veolia UK Water Group

* Average for all participating FTSE350 utility companies ** Average for all participating FTSE100 companies S Relates to water industry sustainability indicator on responsible contracting. 10 The Occupational Pension Schemes (Investment, and Assignment, Forfeiture, Bankruptcy etc) Amendment Regulations 1999. SI 1999/1849.

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In June 2000 the Veolia Water Supply Companies’ Pension

significant issues such as energy use, waste disposal and the

Plan’s investment committee adopted a policy of actively

maintenance and improvement of landholdings.

encouraging the Plan’s investment managers to assess annually the extent to which social, environmental and ethical criteria

All three companies produce an annual integrated Environment

are considered by fund managers. It has also provided the

and Conservation, Access and Recreation report, which is

investment managers with details of its own policy on social,

available on their web sites (see back page).

environmental and ethical investment, based on the Veolia Environnement commitments (see p.50).

Emergencies Each company has procedures in place to provide appropriate

Integrating environmental, social and other

responses to incidents. Drills are carried out regularly to test the

business targets

adequacy of those procedures. In 2002/03 there were three

Our plans to build environmental and social measures into other

incidents which triggered the mobilisation of Emergency

internal reporting systems progressed during the year. At Three

Response Teams.

Valleys environmental and social key performance indicators are incorporated into departmental objectives. These are reported on

A water quality incident at Three Valleys involved distributing

a monthly basis and aggregated into the overall business

bottled water to a small number of affected customers and

performance report.

treating the source of the contamination. Remedial action was taken immediately.

Over the last two years Three Valleys Water has been structuring and organising the business to respond to the needs of

Fifty of Three Valleys Water’s pumping stations experienced

stakeholders by adopting the Balanced Score Card. All

power cuts in October 2002 as a result of very high winds.

departments have identified their interfaces with different

Power is needed to pump water to where it is needed. The

stakeholder groups and established objectives and targets. Each

company’s emergency plans ensured Three Valleys was able

departmental balanced score card feeds into the company strategy.

to restore water supplies swiftly to customers.

This overarching approach can accommodate existing

Folkestone & Dover worked with the Environment Agency to deal

management systems such as Health and Safety and Quality.

with an incident at Drellingore water treatment works involving

The environmental management system continues to develop

spilt oil and fuel. This was traced to a local farm where a vehicle

in line with the Balanced Score card to concentrate on the

had overturned. The spillage was successfully removed.

44


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Date set To be met during report year

Folkestone & Dover Water

Tendring Hundred Water

Three Valleys Water

Veolia Water Partnership

Veolia Water UK

Veolia Water Industrial Outsourcing

To be met by

01/02

To participate in the new Business in the Community Corporate Responsibility Index

-

-

-

-

-

02/03

01/02

To develop and implement a computer-based training package

-

-

-

-

02/03

01/02

To successfully complete the registration under COMAH regulations

-

-

-

-

-

02/03

01/02

To monitor and evaluate employee satisfaction

02/03

Progress

Ongoing targets 96/97

To provide environmental training

Ongoing

96/97

To give all drivers of fleet vehicles and all company car users briefing on responsible driving and a proportion of these defensive driving training

00/01

00/01

To achieve or progress development of the Environmental Management System to align with ISO14001

-

Ongoing

00/01

To raise general awareness of corporate responsibility among all staff and give specific training for senior managers on their responsibilities

Ongoing

00/01

To carry out an annual audit of corporate responsibility performance

Ongoing

00/01

To improve existing accident and incident rates

Ongoing

00/01

To improve the rate of assessment & treatment of employee medical cases

-

-

-

-

Ongoing

00/01

To make more effective use of IT when reporting environmental and social performance and targets

Ongoing

00/01

To ensure consistent and comprehensive inclusion of environmental and social criteria into purchasing procedures

Ongoing

00/01

To develop and implement a training programme to support the supply chain management policy and procedures

Ongoing

New targets 02/03

To survey company buildings to identify asbestos containing materials

-

-

-

-

-

03/04

02/03

To carry out risk assessment of display screen equipment and workstations and organise training assessments where necessary

Ongoing

02/03

To introduce ‘Near Miss Reporting’

-

-

-

-

-

03/04

02/03

To audit compliance with company health & safety procedures

-

-

-

-

-

03/04

02/03

To address staff absenteeism levels

-

-

-

-

-

03/04

02/03

To seek Investors in People accreditation

-

-

-

-

-

03/04

02/03

To provide staff with a Personal Development Plan

-

-

03/04

02/03

To introduce management development programmes

-

-

-

-

03/04

02/03

To introduce a performance review system

-

-

-

-

03/04

02/03

To review cost and quality of training provision

-

-

-

-

03/04

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Verification Statement Introduction Det Norske Veritas (DNV) conducted a verification of Veolia Water

3. Verifying the extent to which any specific recommendations made last year have been actioned and implemented.

UK’s Corporate Responsibility Report 2003 covering the period April 2002 - March 2003 to validate that it is supported by appropriate objective evidence. The terms of reference for DNV’s

Findings

verification were to assess the appropriateness and accuracy of

DNV commends Veolia Water UK for the progress its has made

the claims and commitments made by Veolia Water regarding its

with respect to the accuracy and completeness of the reported

environmental and social performance reporting, and ensure that

information and the robustness of reporting mechanisms used,

the information provided is representative of its activities.

particularly in terms of water, energy and waste management. Overall, DNV notes the generally systematic way that Veolia

Process

Water is addressing its environmental and social impacts, and

This is the fourth year that DNV has verified Veolia Water

communicating its performance to its stakeholders, both

UK’s Corporate Responsibility Report. The verification process

internally and externally (e.g. through its external stakeholder

was similar to that conducted in previous years and involved

engagement exercise in December 2002).

the following elements: To build on Veolia Water UK’s developing good practice so 1. Conducting site visits at each of the three water businesses

far, a number of recommendations for future improvement

presented in the report, plus the Veolia Water Partnership,

in environmental and social performance and reporting

to verify the claims being made with specific

are suggested:

‘responsible persons’.

2. Reviewing the central data management system at

Solid waste generation is one of the more significant impacts of Veolia Water UK’s activities, and improvements have been

each site, the transfer of this data to the UK level,

made in gathering data from waste contractors. In addition,

and its subsequent incorporation into Veolia Water

a standardised reporting mechanism could be developed

UK’s Corporate Responsibility Report 2003.

to further embed the necessary systems across Veolia Water UK’s sites.

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While Veolia Water UK’s strategic goal of ‘maintaining and

Conclusion

enhancing biodiversity and assisting others to do the same’

Overall, it is DNV’s opinion that Veolia Water UK’s Corporate

is laudable and DNV notes the effort with which it is being

Responsibility Report 2003 provides a credible and fair reflection

applied across Veolia Water UK’s operations, further

of the way the company has addressed and managed its

improvement could be made by carefully focusing

corporate responsibility issues during the year.

resources on areas where maximum ecological benefit can be achieved. •

Company-wide environmental training and awareness initiatives are already in place at Veolia Water UK, and

through greater coordination via site ‘environmental

Dr. Eric Pape

champions’ across the organisation, this can further

Vice President

enhance Veolia Water’s operational performance and

DNV Consulting

mitigate its environmental impacts.

London

DNV notes that the company has positively engaged with

December 2003

its key stakeholder groups, most notably in December 2002. Veolia should continue to embed such ‘good practice’, in response to the developing corporate ‘social’ agenda and reflect this in the external reporting process.

47


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Gauging energy performance To evaluate the energy consumption performance of a building we have used the performance assessments contained in Energy Consumption Guide 19: Energy Use in Offices, last updated in 2000. This method provides two benchmarks “typical” and “good practice” - against which we can compare the performance of each of our buildings (see p.22).

Glossary Abstraction licence - The authorisation granted by the Environment

Catchment protection activities - Actions to reduce the risk that water

Agency to allow the removal of water from a source of supply

from a catchment will be degraded (in quality or quantity) as a result of land-use change, pollution, etc.

Aquifer - A porous water-bearing underground formation of permeable rock, sand or gravel capable of yielding significant quantities of water

Corporate Responsibility Index - Developed by Business in the Community (see above) in 2002, the Index is a voluntary benchmark

Business in the Community - A business-led charity comprising

of responsible business practice.

over 700 companies. Its purpose is to inspire, challenge, engage and support business in continually improving its positive impact

Cryptosporidium - A microscopic protozoan parasite which can infect

on society. In 2002 it developed a Corporate Responsibility Index

humans and may cause gastro-enteritis

(see below). Demand management - Controlling or influencing the amount of water Business in the Environment - An organisation set up in 1989

needed to meet the requirements of society. Demand management

as an initiative of Business in the Community (see above). It promotes

measures are hugely varied and can include controlling leakage,

practical steps that will support the UK’s progress towards understanding

promoting the use of water-efficient appliances, charging for water

and applying the principles of sustainable development through action

on a measured basis (“metering”), encouraging water-efficient

and partnership between business and its stakeholders. It has developed

gardening techniques and promoting water recycling

the Index of Corporate Environmental Engagement (see below) Distribution input - Average daily flow from water treatment works into the Biodiversity - The variety of life forms we see around us. Encompasses

water company’s distribution system. Also known as “water put into supply”

the whole range of mammals, birds, reptiles, amphibians, fish, insects and other invertebrates, plants, fungi and micro-organisms such as protists, bacteria and viruses

Distribution losses - The water loss from that part of the distribution system which is the responsibility of the water company. It is the difference between distribution input and water delivered (after allowing

Biodiversity Action Plans - Plans which set out proposals and targets

for operational uses such as flushing of mains following repair work)

for the conservation of priority species and priority habitats identified under the UK’s National Biodiversity Action Plan

Drinking Water Inspectorate (DWI) - A body formed by Government in 1990 which monitors water companies’ compliance with the Drinking

Bromate - Bromate is a chemical that is used in manufacturing,

Water Standards (see over page)

as an industrial cleaning agent and in some products, such as hair perms. New EC Drinking Water Directive standards which came

Drinking Water Standards - The legal requirements governing the quality

into force in 2003 set a maximum limit for the first time on the level

and wholesomeness of drinking water

of bromate allowed in water. Energy consumption performance assessments - Yardsticks for the Carbon dioxide - The most important of the greenhouse gases

energy consumption of buildings. Higher than “typical” means a high

(see below). Carbon dioxide is produced when fuels are consumed

energy consumption; lower than “typical” means a low energy

(eg to generate electricity or to power a vehicle)

consumption (see box, top)

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Environment Agency - A non-departmental public body with major

Public electricity supply - Electricity obtained from the public

responsibilities for the management and regulation of the water

distribution network which includes the “National Grid” and local

environment and for the control of industrial pollution and wastes

networks. The amount of carbon dioxide associated with electricity obtained from the public supply depends on the mix of fuels used by

Greenhouse gases - Gases which, when present in the atmosphere, trap warmth from the sun and maintain the temperature of the earth Groundwater - Water held in water-bearing rocks, in pores and fissures underground Hippo - A small (200mm x 250mm) blue plastic bag that is easily installed into a toilet cistern. It saves water at each flush.

those who generate electricity to provide the supply. In recent years, the mix has shifted away from fuels which produce the highest amounts of carbon dioxide (such as coal) towards those (such as gas) which produce less carbon dioxide per unit of electricity generated Quality of Life Indicators - The UK Government issued its strategy for sustainable development in the UK in 1999. This included Quality of Life indicators designed to measure progress in a number of areas affecting

Index of Corporate Environmental Engagement - An index, developed

people’s quality of life. See www.sustainable-development.gov.uk.

by Business in the Environment (see above), which gauges how businesses are gearing up to manage environmental issues

Security of supply index - This index is designed to give information on a water company’s ability to supply customers in dry years without

IT - Information technology

making demand restrictions such as hosepipe bans.

Kilowatt-hour (kWh) - A unit of electricity. One Kilowatt-hour is the same

Site of Special Scientific Interest (SSSI) - An area of land designated

as 1000 watts of electricity used for one hour and is, for example, the

under the Wildlife and Countryside Act 1981 as of special interest

amount of electricity used by a typical single bar electric fire in one hour

because of its flora, fauna, or geological or physiographical features

Kilowatt-hours/megalitre (net of imports)/metre head pumped -

Streetworks - Work necessary to repair, renew or otherwise improve the

A measure of the amount of energy used to treat and distribute water put

distribution system which takes place on or near the public highway

into supply after allowing for water that is imported from other companies. It is a useful measure for comparing year-on-year performance and performance between different companies because it takes into account factors such as variation in gradients within the supply area and the depth of the water table Landfill - The process of disposing of rubbish by placing it in the ground, either in specially-designed excavations or in old mineral workings that are adapted for the purpose Leakage - Loss of water from the distribution system. Can be expressed

Supply pipe - The length of service pipe from the boundary of the property to the curtilage of the building; this part of the service pipe is the responsibility of the householder Surface water - Water which flows or is stored on the ground surface Sustainable development - Development that meets the needs of the present without compromising the ability of future generations to meet their own needs Tonnes - Metric measure of weight; equivalent to 0.98 tons

as “company leakage” or “distribution losses” (see above) or “total leakage” (see below)

Total leakage - The total amount of water lost from the distribution system including “distribution losses” (see above) and losses from the

Low-flow rivers - Rivers which are identified by the Environment Agency

customers’ part of the distribution system

as “having unacceptably low flows caused by authorised abstraction” Treatment wastes - Waste materials produced as a result of treating raw Megalitres/day (Ml/d) - Megalitres (1 million litres) per day. The usual method of measuring the consumption or the flow of water Meter penetration - The installation of meters to measure the consumption of water “No-dig” technology - A method of installing new pipes which does not require the excavation of a trench. It generally means less disruption to pedestrians, cyclists and vehicles; it can also reduce consumption of the materials required to fill the trench and make good the surface Ofwat - Office of Water Services. A body established by Parliament with legal duties to ensure that water and sewerage companies can carry out their functions, to protect customers, to promote efficiency and economy, to facilitate competition, and to further environmental conservation and enhancement. Ozone - A naturally occurring chemically reactive form of oxygen which is found as a gas throughout the atmosphere. Used to treat water before it is put into supply

water to ensure that it is safe to drink and complies with the Drinking Water Standards (see above). Examples include coagulant sludges, sludges from iron removal plant and river silt UKWIR - UK Water Industry Research was set up by the UK water industry in 1993 to provide a framework for the procurement of a common research programme for UK water operators on ‘one voice’ issues. Water available for use - Reliable yield of water resources based on the quantity or yield of water that can be supplied continuously from developed resources. Calculated using guidelines issued by the Environment Agency; takes account of the characteristics of each source and its ability to support abstraction under drought conditions without detriment to the needs of other water users or the environment Water delivered - Water delivered to the customer at the limit of the Water Company’s responsibility. (Water delivered will comprise water used by the customer, water lost due to internal plumbing losses and supply pipe losses)

Priority species - Species which are of the highest priority for conservation action and for which a Biodiversity Action Plan (see above) is in place

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Equal Opportunities Policy Veolia Water UK plc supports the principle of equal opportunities

it is in the Company’s best interests, and those of existing and

in employment and opposes all forms of unlawful or unfair

prospective employees to ensure that the human resources,

discrimination on the grounds of colour, race, nationality, ethnic

talents and skills available throughout the community are

or national origin, sex, marital status or disability. We believe that

considered when employment opportunities arise.

Veolia Environnement Sustainable Development Commitments 1.

Protect the environment, preserve resources and

7.

combat pollution 2.

Implement an Environmental Management System

3.

Provide resources to maintain compliance with relevant legislation and standards

4.

5.

8.

Provide employees with training and opportunities for personal development

9.

Integrate international standards covering basic human rights, ethics, the environment, occupational safety

integrated risk management policy

and labour law

Increase the research and development programme to

Engage with our supply chain to encourage adherence to our sustainable development commitments

50

future stakeholder needs and expectations

Improve health and safety performance by adopting an

improve environmental and economic performance 6.

Meet and anticipate as far as possible present and

10. Broaden our dialogue with stakeholders to increase access to essential services for all.


Veolia Final V5_2

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Invitation to comment We would like to hear from anyone who has comments to make on our corporate responsibility performance. Please contact

Kathleen Lucey Veolia Water UK plc 37-41 Old Queen Street, London SW1H 9JA Tel: 020-7393 2700, fax: 020-7222 0046 E-mail: kathleen.lucey@veolia-uk.com or comment online at http://www.3valleys.co.uk/environment/index.shtml

The Water Businesses of the Veolia Water UK Group Three Valleys Water Plc

Folkestone & Dover Water Services Ltd

PO Box 48, Bishop’s Rise, Hatfield, Herts AL10 9HL

The Cherry Garden, Cherry Garden Lane, Folkestone, CT19 4QB

Supply area

3738 km2

420 km2

Properties connected

1,226,702

72,559

Number of people supplied

3,029,220

Water put into supply

Veolia Water Partnership

Veolia Water Industrial Outsourcing Ltd

Veolia Water Projects

Veolia Water UK PLC

Blackwell House, T h ree Valleys Way, Bushey, Herts, WD23 2LG

Blackwell House, Three Valleys Way, Bushey, Herts, WD23 2LG

Blackwell House, T h ree Valleys Way, Bushey, Herts, WD23 2LG

37-41 Old Queen St London SW1H 9JA

352 km2

N/A

N/A

N/A

N/A

70,143

N/A

N/A

N/A

N/A

163,220

146,490

N/A

N/A

N/A

N/A

864 Ml/day

49.7 Ml/day

30.1 Ml/day

N/A

N/A

N/A

N/A

Percentage from groundwater/ surface water resources

55%/45%

100%/0%

86%/14%

N/A

N/A

N/A

N/A

Length of main

14,277km

1,072km

910km

N/A

N/A

N/A

N/A

900

81

67

164

9

2

34

Turnover

£165.1m

£13.3m

£12.1m

£14.4m

N/A

N/A

£189m11

Website

www.3valleys.co.uk

www.fdws.co.uk

www.thws.co.uk

-

www.vwio.com

-

-

Employees

11 For the calendar year ended 31 December 2002.

Tendring Hundred Water Services Ltd Mill Hill, Mistley Manningtree, Essex CO11 2AZ

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Designed by Beacon Creative. Printed by Beacon Press using their e n v i ronmental print technology. The printing inks are made using vegetable based oils. No film or film processing chemicals were used. 95% of the cleaning solvents are recycled for further use and 84% of the waste associated with this product will be recycled. The electricity was all generated from renewable sources. Printed on Revive silk, 75% of the pulp is made from 100% de-inked post consumer waste, the remaining 25% being mill broke and virgin fibres. Beacon Creative and Beacon Press are Carbon Neutral速 companies and registered to environmental standards ISO 14001 and EMAS.

Veolia Water UK Plc 37-41 Old Queen St, London SW1H 9JA


Veolia Water UK Corporate Responsibility Report 2003