Veolia Environmental
Encyclopedia
Veolia Environnement S.A. is a multinational French company with activities in four main service and utility areas traditionally managed by public authorities - water supply
and water management
, waste management
, energy and transport services. In 2009, Veolia employed around 300,000 employees in 77 countries. Its revenue in that year was recorded at €34.6 billion. It is quoted on Euronext Paris
and the New York Stock Exchange
. It is headquartered in the 16th arrondissement of Paris
.
Between 2000 and 2003 the company was known as Vivendi Environnement, having been spun off
from the Vivendi conglomerate
, most of the rest of which became Vivendi. Prior to 1998 Vivendi was known as Compagnie Générale des Eaux.
. In 1853, CGE obtained a concession in order to supply water to the public in Lyon
, serving in this capacity for over a hundred years. In 1860, it obtained a 50-year concession with the City of Paris
.
For a hundred years, Compagnie Générale des Eaux remained largely focused on the water sector. However, following the appointment of Guy Dejouany
as CEO
in 1976, CGE extended its activities into other sectors with a series of takeovers. Beginning in 1980, CGE began diversifying its operations from water into waste management, energy, transport
services, and construction
and property
. It acquired the "Compagnie Générale d'Entreprises Automobiles" (CGEA), specialized in industrial vehicles, which was later divided into two branches: Connex and Onyx Environnement. CGE then acquired the "Compagnie Générale de Chauffe", and later the Montenay group. The Energy Services division these companies became part of was later (1998) renamed "Dalkia
".
CGE's expansion into communication commenced with the establishment of Canal+
in 1983, the first Pay-TV channel in France. This expansion was accelerated after Jean-Marie Messier
succeeded Guy Dejouany on June 27, 1996. In 1996, CGE created Cegetel to take advantage of the 1998 deregulation of the French telecommunications market, accelerating the move into the media sector which would culminate in the 2000 demerger into Vivendi Universal and Vivendi Environnement.
changed its name to Vivendi, and sold off its property and construction divisions the following year.
Vivendi
went on to list on the New York Stock Exchange (as "V"), and in December, announced a major merger with Canal+ and Seagram
, the owner of Universal Studios
film company, to become Vivendi Universal and now named Vivendi
.
In July 2000, Vivendi spun off the remaining water and waste companies into Vivendi Environnement (IPO in Paris in July 2000 and in New York in October 2001), later (2003) renamed Veolia Environnement.
In November 2009, Antoine Frérot has become the Chairman and the CEO of the Group after succeeding Henri Proglio
who has been appointed CEO of EDF
. The change has been part of a huge politico-financial scandal
in France as Proglio kept executive positions - and subsequent salary - in both companies until public criticism forced him to give up his Veolia revenues.
Its Veolia Water division remains the largest private operator of water services in the world.
) systems in North America, located in ten major U.S. cities. It also provides facility operations, energy management, and advisory services. Until February 2011, this division operated under the Trigen Energy brand name.
Veolia Environnement has 2,573 subsidiaries around the world.
exploded. The blast leveled two buildings on the property which were a laboratory and a building that had several 200,000 gallon chemical tanks. This particular plant handles fuel blending among other services. Two workers at the plant were injured in the blast. The explosion caused $50 million in damage to the plant itself. More than a dozen homes up to a mile radius from the blast were also damaged due to the explosion.
(primary shareholder), followed by Groupe Industriel Marcel Dassault
(5.9%), Groupama
(5.6%), Velo Investissement (5%) and Électricité de France
(3.9%). Individual shareholders accounted for a further 7.7% of shares, employees of the company 1.6%, treasury stock
3% and other institutional investors the remaining 57.8%.
The following is a summary of data (in millions of euros):
On the Paris Bourse (the Paris stock exchange), Veolia Environnement is part of the CAC 40 index of shares.
Following the earthquake in Haiti in January 2010, the Veolia Foundation dispatched 30 tons of emergency supplies (mainly water treatment units) via French Red Cross air transportation. The Foundation also sent Veolia technical experts to provide water to the disaster’s victims.
The Research and Innovation division includes 850 experts and supports around 200 scientific partnerships with private and public organisations. The division focuses on four main issues:
Water supply
Water supply is the provision of water by public utilities, commercial organisations, community endeavours or by individuals, usually via a system of pumps and pipes...
and water management
Water management
Water management is the activity of planning, developing, distributing and managing the optimum use of water resources. In an ideal world. water management planning has regard to all the competing demands for water and seeks to allocate water on an equitable basis to satisfy all uses and demands...
, waste management
Waste management
Waste management is the collection, transport, processing or disposal,managing and monitoring of waste materials. The term usually relates to materials produced by human activity, and the process is generally undertaken to reduce their effect on health, the environment or aesthetics...
, energy and transport services. In 2009, Veolia employed around 300,000 employees in 77 countries. Its revenue in that year was recorded at €34.6 billion. It is quoted on Euronext Paris
Euronext
Euronext N.V. is a pan-European stock exchange based in Amsterdam and with subsidiaries in Belgium, France, Netherlands, Portugal and the United Kingdom. In addition to equities and derivatives markets, the Euronext group provides clearing and information services...
and the New York Stock Exchange
New York Stock Exchange
The New York Stock Exchange is a stock exchange located at 11 Wall Street in Lower Manhattan, New York City, USA. It is by far the world's largest stock exchange by market capitalization of its listed companies at 13.39 trillion as of Dec 2010...
. It is headquartered in the 16th arrondissement of Paris
Paris
Paris is the capital and largest city in France, situated on the river Seine, in northern France, at the heart of the Île-de-France region...
.
Between 2000 and 2003 the company was known as Vivendi Environnement, having been spun off
Spin out
A spin-out, also known as a spin-off or a starburst, refers to a type of corporate action where a company "splits off" sections of itself as a separate business....
from the Vivendi conglomerate
Conglomerate (company)
A conglomerate is a combination of two or more corporations engaged in entirely different businesses that fall under one corporate structure , usually involving a parent company and several subsidiaries. Often, a conglomerate is a multi-industry company...
, most of the rest of which became Vivendi. Prior to 1998 Vivendi was known as Compagnie Générale des Eaux.
1853-1997: Compagnie Générale des Eaux
On December 14, 1853, a water company named Compagnie Générale des Eaux (CGE) was created by an Imperial decree of Napoleon IIINapoleon III of France
Louis-Napoléon Bonaparte was the President of the French Second Republic and as Napoleon III, the ruler of the Second French Empire. He was the nephew and heir of Napoleon I, christened as Charles Louis Napoléon Bonaparte...
. In 1853, CGE obtained a concession in order to supply water to the public in Lyon
Lyon
Lyon , is a city in east-central France in the Rhône-Alpes region, situated between Paris and Marseille. Lyon is located at from Paris, from Marseille, from Geneva, from Turin, and from Barcelona. The residents of the city are called Lyonnais....
, serving in this capacity for over a hundred years. In 1860, it obtained a 50-year concession with the City of Paris
Paris
Paris is the capital and largest city in France, situated on the river Seine, in northern France, at the heart of the Île-de-France region...
.
For a hundred years, Compagnie Générale des Eaux remained largely focused on the water sector. However, following the appointment of Guy Dejouany
Guy Dejouany
Guy Dejouany was the CEO of Compagnie Générale des Eaux, from 1976 to 1995.Guy Dejouany worked as Chief Executive Officer of Vinci PLC from 1990 to 1996...
as CEO
Chief executive officer
A chief executive officer , managing director , Executive Director for non-profit organizations, or chief executive is the highest-ranking corporate officer or administrator in charge of total management of an organization...
in 1976, CGE extended its activities into other sectors with a series of takeovers. Beginning in 1980, CGE began diversifying its operations from water into waste management, energy, transport
Transport
Transport or transportation is the movement of people, cattle, animals and goods from one location to another. Modes of transport include air, rail, road, water, cable, pipeline, and space. The field can be divided into infrastructure, vehicles, and operations...
services, and construction
Construction
In the fields of architecture and civil engineering, construction is a process that consists of the building or assembling of infrastructure. Far from being a single activity, large scale construction is a feat of human multitasking...
and property
Property
Property is any physical or intangible entity that is owned by a person or jointly by a group of people or a legal entity like a corporation...
. It acquired the "Compagnie Générale d'Entreprises Automobiles" (CGEA), specialized in industrial vehicles, which was later divided into two branches: Connex and Onyx Environnement. CGE then acquired the "Compagnie Générale de Chauffe", and later the Montenay group. The Energy Services division these companies became part of was later (1998) renamed "Dalkia
Dalkia
* Dalkia, a kingdom in the game Soul Calibur III.* Veolia Energy-Dalkia is a corporate group focused on energy and a part of Veolia Environnement....
".
CGE's expansion into communication commenced with the establishment of Canal+
Canal+
Canal+ is a French premium pay television channel launched in 1984. It is 80% owned by the Canal+ Group, which in turn is owned by Vivendi SA. The channel broadcasts several kinds of programming, mostly encrypted...
in 1983, the first Pay-TV channel in France. This expansion was accelerated after Jean-Marie Messier
Jean-Marie Messier
Jean-Marie Messier is a French businessman who was Chairman and Chief Executive of the multinational media conglomerate Vivendi SA until 2002...
succeeded Guy Dejouany on June 27, 1996. In 1996, CGE created Cegetel to take advantage of the 1998 deregulation of the French telecommunications market, accelerating the move into the media sector which would culminate in the 2000 demerger into Vivendi Universal and Vivendi Environnement.
1998-2003: Vivendi
In 1998, Compagnie Générale des EauxCompagnie Générale des Eaux
Compagnie Générale des Eaux was a French multinational company which gave birth to three world's leaders in their respective fields: VINCI, Veolia Environnement and Vivendi....
changed its name to Vivendi, and sold off its property and construction divisions the following year.
Vivendi
Vivendi
Vivendi SA is a French international media conglomerate with activities in music, television and film, publishing, telecommunications, the Internet, and video games. It is headquartered in Paris.- History :...
went on to list on the New York Stock Exchange (as "V"), and in December, announced a major merger with Canal+ and Seagram
Seagram
The Seagram Company Ltd. was a large corporation headquartered in Montreal, Quebec, Canada that was the largest distiller of alcoholic beverages in the world. Toward the end of its independent existence it also controlled various entertainment and other business ventures...
, the owner of Universal Studios
Universal Studios
Universal Pictures , a subsidiary of NBCUniversal, is one of the six major movie studios....
film company, to become Vivendi Universal and now named Vivendi
Vivendi
Vivendi SA is a French international media conglomerate with activities in music, television and film, publishing, telecommunications, the Internet, and video games. It is headquartered in Paris.- History :...
.
In July 2000, Vivendi spun off the remaining water and waste companies into Vivendi Environnement (IPO in Paris in July 2000 and in New York in October 2001), later (2003) renamed Veolia Environnement.
2003 – present: Veolia
In 2003, Vivendi Environnement became Veolia Environnement. In 2005, the name “Veolia” was established as an umbrella brand for all of the Group’s divisions (water, environmental services, energy services and transport) and a new logo was created.In November 2009, Antoine Frérot has become the Chairman and the CEO of the Group after succeeding Henri Proglio
Henri Proglio
Henri Proglio is a French business man, the Chairman of the Board and CEO of Electricité de France and Veolia Environnement.-Biography:Of Italian origin, Henri Proglio was born in Antibes. He is a graduate of HEC Paris....
who has been appointed CEO of EDF
Électricité de France
Électricité de France S.A. is the second largest French utility company. Headquartered in Paris, France, with €65.2 billion in revenues in 2010, EDF operates a diverse portfolio of 120,000+ megawatts of generation capacity in Europe, Latin America, Asia, the Middle East and Africa.EDF is one of...
. The change has been part of a huge politico-financial scandal
Scandal
A scandal is a widely publicized allegation or set of allegations that damages the reputation of an institution, individual or creed...
in France as Proglio kept executive positions - and subsequent salary - in both companies until public criticism forced him to give up his Veolia revenues.
Its Veolia Water division remains the largest private operator of water services in the world.
Veolia Water
Veolia Water is the world leader in water services. It handles water and wastewater services for clients in the public sector and in various industries. It also creates and constructs the required technology and infrastructure. In 2009, Veolia Water recorded revenue of €12.56 billion and employed 95,789 people. The Water division operates in 66 countries around the world.Veolia Environmental Services
Veolia Environmental Services is second in the world in waste management services. In addition to environmental and logistics services, it treats and converts hazardous and non-hazardous waste. The goal: decrease pollutants in waste to lessen its environmental effects, and promote waste recycling and recovery. The company employs 85,600 staff in 33 countries and had 2009 revenues recorded at €9.1 billion.Veolia Energy (Dalkia)
Veolia Energy (Dalkia) strives to maximise facilities’ energy and environmental efficiency. Its services include maintaining and managing heating and cooling systems, making plants more energy efficient, and selecting the most adapted energies. In 2009, Dalkia had €7.1 billion in revenue and employed 52,577 employees in 42 countries, principally in Europe.Veolia Energy (North America)
Veolia Energy (North America) is the largest operator and developer of efficient district energy (heating, cooling and cogenerationCogeneration
Cogeneration is the use of a heat engine or a power station to simultaneously generate both electricity and useful heat....
) systems in North America, located in ten major U.S. cities. It also provides facility operations, energy management, and advisory services. Until February 2011, this division operated under the Trigen Energy brand name.
Veolia Transport
Revenue in 2009 for Veolia Transport was recorded at €5.86 billion. It employs 77,591 people across 27 countries in Europe, North America and Asia. It works with public authorities under public-private partnerships to manage public transit systems (buses, trains, metros, ferries, etc.).Around the world
Veolia Environnement is established in 77 countries, with employees across the globe:- France: 32%
- Europe (not including France): 35%
- Asia-Pacific: 10%
- North America: 9%
- Africa / Middle East: 7%
- South America: 7%
Veolia Environnement has 2,573 subsidiaries around the world.
West Carrollton plant explosion
On May 4, 2009, a Veolia Environmental Service's plant in West Carrollton, OhioWest Carrollton, Ohio
West Carrollton is a city in Montgomery County, Ohio, United States. The population was 13,143 at the 2010 census. It is part of the Dayton Metropolitan Statistical Area....
exploded. The blast leveled two buildings on the property which were a laboratory and a building that had several 200,000 gallon chemical tanks. This particular plant handles fuel blending among other services. Two workers at the plant were injured in the blast. The explosion caused $50 million in damage to the plant itself. More than a dozen homes up to a mile radius from the blast were also damaged due to the explosion.
Financial information
At September 30, 2010 shares in Veolia Environnement were held as follows: 9.5% by Caisse des Dépôts et ConsignationsCaisse des dépôts et consignations
The Caisse des Dépôts et Consignations is a French financial organization created in 1816, and part of the government institutions under the control of the Parliament. Augustin De Romanet is the board chairman and chief executive...
(primary shareholder), followed by Groupe Industriel Marcel Dassault
Dassault Group
Dassault Group, is a French group of companies led by Serge Dassault.Managing directors are Claude Dassault and Olivier Costa De Beauregard.- Subsidiaries :*Dassault Aviation;...
(5.9%), Groupama
Groupama
Groupama contraction of GROUPe des Assurances Mutuelles Agricoles is an international insurance group based in Paris, France...
(5.6%), Velo Investissement (5%) and Électricité de France
Électricité de France
Électricité de France S.A. is the second largest French utility company. Headquartered in Paris, France, with €65.2 billion in revenues in 2010, EDF operates a diverse portfolio of 120,000+ megawatts of generation capacity in Europe, Latin America, Asia, the Middle East and Africa.EDF is one of...
(3.9%). Individual shareholders accounted for a further 7.7% of shares, employees of the company 1.6%, treasury stock
Treasury stock
A treasury stock or reacquired stock is stock which is bought back by the issuing company, reducing the amount of outstanding stock on the open market ....
3% and other institutional investors the remaining 57.8%.
The following is a summary of data (in millions of euros):
| Year | 2002 | 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 |
|---|---|---|---|---|---|---|---|---|---|
| Consolidated revenue | 30,078 | 28,603 | 24,673 | 25,245 | 28,620 | 31,574 | 35,765 | 34,551 | 34,787 |
| Operating income EBIT EBIT may refer to:*EBIT, or Earnings before interest and taxes, in finance*EBIT, or Electron beam ion trap, in physics*An ebit, a two-party quantum state with quantum entanglement and the fundamental unit of bitpartite entanglement... |
1,971 | 1,751 | 1,617 | 1,893 | 2,222 | 2,461 | 1,960 | 2,020 | 2,120 |
| Net income Net income Net income is the residual income of a firm after adding total revenue and gains and subtracting all expenses and losses for the reporting period. Net income can be distributed among holders of common stock as a dividend or held by the firm as an addition to retained earnings... |
339 | -2,054 | 125 | 622 | 759 | 928 | 405 | 584 | 581 |
| Stakeholder equity | N/A | 6,300 | 5,600 | N/A | N/A | 10,191 | 9,532 | 10,131 | |
| Free cash-flow | -1,525 | 168 | 694 | 555 | 901 | 906 | -1,809 | -1,344 | |
| Net financial debt | 13,066 | 11,804 | 13,059 | 13,871 | 14,674 | 15,125 | 16,528 | 15,128 | |
| Staff | 271,153 | 298,498 | 319,502 | 336,013 | 312,590 |
Stock market data
Data for Veolia Environnment, as listed on the New York Stock Exchange.- Market capitalisation on December 31, 2010: $15.27 billion
On the Paris Bourse (the Paris stock exchange), Veolia Environnement is part of the CAC 40 index of shares.
- Number of shares outstanding on December 31, 2009: 493,630,374
- Market capitalisation on December 31, 2009: €11.4 billion
Sustainability, corporate communications and sponsorship
The company’s sustainable development activities are diverse. Because it operates in four sectors with a huge potential impact on the environment, both the risks and opportunities presented by sustainable development activities are substantial. The company’s sustainability efforts are furthered by its Foundation and Institute which emphasize innovation and research.The Veolia Environnement Foundation
The Veolia Environnement Foundation supports non-profit activities related to sustainable development, professional continuous development and the protection of the environment in France and overseas. The Foundation supports projects through financial aid and voluntary services provided by its employees. It also supports emergency relief operations in collaboration with humanitarian organisations.Following the earthquake in Haiti in January 2010, the Veolia Foundation dispatched 30 tons of emergency supplies (mainly water treatment units) via French Red Cross air transportation. The Foundation also sent Veolia technical experts to provide water to the disaster’s victims.
Institut Veolia Environnement
The Institut Veolia Environnement was created in 2001 to provide insights into major global challenges such as climate change, urbanisation and various economic, social and cultural issues related to the environment. The institute is built around a committee that brings together 7 experts and an international network of researchers and experts. Its activities include organising conferences and publishing articles and reports.Boycott Controversies
Veolia has recently been subject to a series of boycott movements based on its involvement in light rail projects in Israel. Pro Palestine activists claim that the company provides services to settlements illegal under international law and thus is complicit in war crimes. Several councils in the UK have cancelled their contracts with Veolia as a result of this pressure.Research and development
As of December 31, 2009, the Group’s research and development investments reached €89.8 million (€92.1 million in 2008, €84.6 million in 2007).The Research and Innovation division includes 850 experts and supports around 200 scientific partnerships with private and public organisations. The division focuses on four main issues:
- Manage and preserve natural resources
- Control impacts on natural environments
- Care for health and living environments
- Develop alternative sources of energy
Programmes
Veolia Environnement’s R&I division has determined 9 main development programmes through which a number of research projects are managed:- Waste collection, sorting, and beneficial re-use
- Sustainable city and building management
- Energy efficiency
- Transport
- Environmental and health standards
- New activities
- Bioresources
- Drinking water
- Waste water
Veolia Innovation Accelerator
To boost and accelerate the innovation process, Veolia Environnement has established the Veolia Innovation Accelerator initiative. This is a programme for the identification and support of the best technologies (also called “cleantechs”) within the most innovative start-up companies in the industry.See also
- VivendiVivendiVivendi SA is a French international media conglomerate with activities in music, television and film, publishing, telecommunications, the Internet, and video games. It is headquartered in Paris.- History :...
(history of Veolia Environnement) - Water privatizationWater privatizationWater privatization is a short-hand for private sector participation in the provision of water services and sanitation, although sometimes it refers to privatization and sale of water resources themselves . As water services are seen as such a key public service, water privatization is often...
- Waste managementWaste managementWaste management is the collection, transport, processing or disposal,managing and monitoring of waste materials. The term usually relates to materials produced by human activity, and the process is generally undertaken to reduce their effect on health, the environment or aesthetics...
- Water supplyWater supplyWater supply is the provision of water by public utilities, commercial organisations, community endeavours or by individuals, usually via a system of pumps and pipes...
- CogenerationCogenerationCogeneration is the use of a heat engine or a power station to simultaneously generate both electricity and useful heat....
- Distributed generationDistributed generationDistributed generation, also called on-site generation, dispersed generation, embedded generation, decentralized generation, decentralized energy or distributed energy, generates electricity from many small energy sources....
- Veolia TransportVeolia TransportVeolia Transport is the international transport services division of the French-based multinational company Veolia Environnement...
(ex-Connex), the group’s transportation division - DalkiaDalkia* Dalkia, a kingdom in the game Soul Calibur III.* Veolia Energy-Dalkia is a corporate group focused on energy and a part of Veolia Environnement....
, the group’s energy division
Major subsidiaries
- Water: Veolia WaterVeolia WaterVeolia Water , the water division of the French company Veolia Environnement, is the world's largest supplier of water services....
(formerly Vivendi Water). Includes Veolia Water Solutions & Technologies. - Waste management: Veolia Environmental Services (formerly known as Onyx Environmental Services)
- In 2006 Veolia Environmental Services bought Cleanaway UK for £565 million
- Energy: Dalkia (Veolia Energy)
- Transport services: Veolia TransportVeolia TransportVeolia Transport is the international transport services division of the French-based multinational company Veolia Environnement...
(Formerly Connex)