Essential to society, committed to the environment - 2021 Integrated Report - SUEZ
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Essential to society, committed to the environment 2021 Integrated Report
CONTENTS
Joint interview
between Philippe Varin
and Bertrand Camus
03
PART 1 PART 2
The Covid-19 crisis: Being essential
an accelerator of profound in environmental
changes services
10 17
PART 3 PART 4
Performance Governance
on behalf embodying the Group’s
of stakeholders transformation
25 46
2
« In this crisis
situation, Philippe Varin, Bertrand Camus,
SUEZ has emerged
Chairman of the Board of Directors Chief Executive Officer of SUEZ
of SUEZ
as an essential
I n 2020, Covid-19 turned our lives third-sector initiatives in France and abroad,
and our societies upside down. and released emergency funds to help projects
If you had to draw one lesson from in developing countries (Action Against
the health crisis, what would it be? Hunger in Senegal and ACTED in Haiti). We
have also protected our staff throughout the
player. »
crisis by deploying a global support plan
Bertrand Camus: 2020 reminded every one to preserve jobs and guarantee the salaries
of us what is essential in our lives. SUEZ of employees on short-time working
naturally emerged as one of the guardians of arrangements. In France and many other
public health at a global level, ensuring its countries, the Group has also paid exceptional
customers, both cities and industrial
-
bonuses to the collaborators on the lowest
companies, could count on continuity of salaries.
service in water management, sanitation
Joint interview between Philippe Varin and waste collection and recovery. The Group
attracted attention by accelerating its
and Bertrand Camus innovations in response to the unprecedented
crisis – we are proud of our Covid-19 City
Watch innovation, which is already in use in
over a hundred towns in France and Spain and The crisis
will soon be deployed in the United States,
India and Morocco. This unique solution gives strengthened our
local authorities a closer view of how the virus
is circulating in their area by detecting viral
convictions, which
markers in wastewater networks, enabling we enshrined in
them to plan appropriate health measures in
a more targeted way. our corporate
Philippe Varin: I would also like to underline
purpose in 2020
the importance of solidarity and civic
engagement at SUEZ during the management
of the crisis. The SUEZ Foundation supported
3
The two groups
agreed that a new
SUEZ would be
created
he year was also marked by the
T
Veolia takeover bid. After many
months of negotiations, what are
took in response to the pandemic were com- the conclusions?
bined with the actions already in progress to
improve operational performance, and bore P.V: Veolia’s initial offer did not set a fair price
Teams committed to providing fruit more quickly and abundantly than ex- that would satisfy all SUEZ’s stakeholders.
essential services pected. Our sales teams have continued to This is why we sought to improve it in order
– achieve success in Europe and across the to find a satisfactory solution for SUEZ’s
world, with contracts incorporating an in- employees, customers and shareholders.
creasing number of services with high digital Finally, we reached an agreement on 14 May
and technological content. This is the case in 2021 that recognises SUEZ’s value. It was
Tashkent, Uzbekistan, for example, where the essential for the SUEZ Board of Directors to
hat impact has Covid-19 had on
W Group will be able to deploy its expertise and ensure the company was fairly valued for its
your business and your strategy? smart solutions to modernise and improve shareholders and that all the Group’s
water and sanitation services for 3.5 million commitments to its customers would be
B.C: Firstly, the crisis shone a spotlight on our residents. respected. The agreement also clearly defines
activities, which are too little known despite concrete safeguards for employees.
being essential to the proper functioning of P.V: The crisis acted as an accelerator for the
our societies, the health of our populations SUEZ 2030 plan, which is fully aligned with B.C: The two groups agreed that a new SUEZ
and the preservation of their quality of life. the environmental targets restated by would be created, consisting of assets that
Our teams were recognised for their vital role. governments in most regions of the world in will form a coherent and sustainable group
Then the crisis strengthened our convictions, response to the crisis, like the European Union from an industrial and social standpoint, with
which we enshrined in our corporate purpose with its Green Deal. This acceleration has real growth potential in regions where the
in 2020. SUEZ has been helping people con- been felt in every dimension of the strategy: need for our services is immense (including
stantly improve their quality of life by protect- our performance plan has increased our Africa, India and China) and revenue of around
ing their health and supporting economic profitability and generated additional cash €7 billion. Veolia will also reiterate its social
growth for over 160 years. flow, reducing our debt. The asset rotation commitments for a period of four years after
The crisis also confirmed our SUEZ 2030 strat- programme has continued at the planned the signature of the offer. To ensure the
egy launched in autumn 2019, which empha- pace and enabled us to begin reinvesting in integration and diversity of its teams, the
sises a more agile and innovative company strategic priorities to fuel our growth – by Group is committed to taking particular
that continuously strives to forge closer cus- consolidating our positions in China, for care in choosing the management teams at
tomer relationships. example. We also strengthened the Board headquarters and in each country. This
In financial terms, the solid 2020 results and with three new independent directors, who agreement in principle offers every promise Visit to the CIRSEE
strong prospects for 2021 despite the situation bring exceptional international experience in of a global solution that will provide prospects –
underline the creation of value launched by financial investment, advanced technology and essential employment guarantees to all
the SUEZ 2030 strategic plan. The steps we and industrial development. our collaborators.
4
74% of our 2020 he ecological transition is central
T
to recovery plans all over the
revenue falls within world. What role can SUEZ play?
the European
P.V: The “Green Deal” indicates an ambition
taxonomy for to accelerate the transformation of the growth
sustainable activities strategy in Europe and across the world. Its
goal is to support a modern, competitive
economy while ensuring responsible resource
use. As a leader in essential environmental
services, SUEZ has an important part to play.
We are keen that the Group’s objectives should
always be concrete and aligned with the UN
target of limiting global warming to 1.5°C.
ore than ever, 2020 underlined
M B.C: A whole year ahead of our European obli-
the need to place people and gations, we are also very proud that 74% of our
collaborators at the heart 2020 revenue falls within the European taxon-
2021: a pivotal year for biodiversity
of any organisation. What is their omy for sustainable activities. This figure un-
thanks to the COP15
involvement in SUEZ 2030? derlines the ambition enshrined in our SUEZ
–
2030 plan, which involves strengthening our
expertise in sustainable development until,
B.C: Once again, I want to thank our
ultimately, 100% of our solutions are sustain-
collaborators, who have demonstrated
able. This is a success for all our stakeholders,
unfailing commitment to serving our customers
particularly at a time when our shareholders
throughout the crises of the past year. SUEZ and the current health crisis must serve as
and investors want to identify companies that
teams have mobilised at every level to ensure an accelerator towards the environmental
are taking the lead in terms of responsible in-
the continuity of the essential services we transition. In 2021, SUEZ will play an active
vestment. This focus has also led us to restruc-
deliver to our customers and implement our part in both COP26 on the climate and COP15
ture our value proposition around six priority
strategic plan, of which everyone can be proud. on biodiversity, testifying to its commitments.
areas: quality of life, local partners, the climate,
I know I can count on them to stay focused in
the planete, the circular economy and the ex-
the coming months and ensure the best quality B.C: Indeed, our purpose has more resonance
cellence of our solutions.
of service for our customers. than ever in our current situation – it embodies
our responsibility to future generations, as
P.V: We have also been able to evaluate staff year after its adoption, has your
A does our adoption of the principles of the UN
commitment this year through their record corporate purpose made you Global Compact. The recent unprecedented
participation in the fifth shareholding offer stronger? How does it resonate public consultation to draft France’s Climate
offer, SHARING 2021. With over 15,000 with the current situation? and Resilience act proves that the lines are
employees in France expressing an interest in shifting. Essential environmental services are
investing, the reservation rate reached more P.V: 2020 coincided with the adoption of our an unavoidable part of implementing virtuous
than 52%. Employees strengthened their corporate purpose: “Shaping a sustainable economic development in the context of the
position and now hold nearly 6% of the capital. environment, now”. This is a marker of the environmental crisis that now constitutes
This aligns them fully with the group’s strategy. Group’s identity and vocation, and a compass humanity’s biggest challenge. They have a key
An employee shareholder association, ASAS, for the future; it guides us in our strategic and role to play throughout the world in fighting
was also set up to strengthen the bond with operational decision-making and helps us climate change and environmental pollution.
the Management Committee and the Board of overcome this global crisis with determination. They will also be central to raising the
Directors. Health and the environment are closely linked, resilience of our societies.
5
A global agreement
between SUEZ and Veolia
-
Veolia and SUEZ have signed a Combination Agreement between themselves
and a Memorandum of Understanding with Meridiam–GIP–Caisse des Dépôts/
CNP Assurances for the acquisition of the new SUEZ. Its key points are as follows:
Value of SUEZ Share ownership
The two groups have agreed on a price of The two groups proposed that the new SUEZ
€20.50 per SUEZ share (coupon attached) resulting from this agreement should be owned
conditional upon the signature of the Combi- by a group of shareholders including financial
nation Agreement. partners from both groups (Meridiam–GIP–
Caisse des Dépôts/CNP Assurances) and by
employees. The majority of the shareholders
of the new SUEZ will be French.
Scope of the new SUEZ
The scope of the new SUEZ The new SUEZ In order to guarantee the conditions for the
would be made up of assets forming a coherent long-term development of the new SUEZ:
and sustainable group from an industrial and • Its shareholders will have to subscribe to the
social standpoint, with real growth potential, social commitments for four years from the
with revenues of around €7 billion. closing of the takeover bid;
• Its shareholders will have to undertake to
Its scope will be the municipal water and solid maintain their positions over the long term.
waste activities of SUEZ in France (including
CIRSEE, the main research center in France),
as well as the activities of SUEZ in particular
in water and in the following geographies: Italy Commitments from Veolia
(including the stake in Acea), the Czech The agreement:
Republic, Africa (including Lydec), Central Asia, • reiterates Veolia's social commitments for a
India, China, Australia, and the global digital period of four years after the signature of the
and environmental activities (SES). offer.
• with a view to the integration and mix of
teams, describes commitments to be made
by Veolia regarding the composition of the
management teams at headquarters and in
the countries.
6
SUEZ
in figures
in 2020
- ENVIRONMENTAL INNOVATION
TRANSITION AND PERFORMANCE
2.2 billion m3
of alternative water
€ 326 M
of performance savings
produced (wastewater achieved
reuse, desalination)
€ billion
0.65
of revenue
- 4.1 Mt
of secondary raw materials
€
dividend per share*
74
produced
% 68 %
of revenue integrated to
the European green taxonomy
7.2 TWh
of renewable energy
of institutional shares
held by SRI funds
CULTURE AND
ENGAGEMENT
-
generated
28.9 %
103 women
86,000 9.5
€ M in management
invested in R&D
Mt of CO₂
avoided on behalf of the
employees on all 5 continents
Group’s customers
Over 87.5/100
4,000
patents
gender equality index
in France
5.6 %
employee shareholding**
* Subject to approval by the Shareholders’ General Meeting
** Following the Sharing 2021 operation
7
SUEZ in dates 1869
Supporting and
1990-2000
Water for All
2019
Helping cities to
160 years serving a
accelerating trade by programme. Inventing breathe by treating
opening the Suez canal tailored solutions for air in the metro and
universal access to school playgrounds
sustainable environment 1880-1890
services in cities in the
developing world
in the Paris region
(France)
- Improving public
health with the
development of 2005 2020
In 2020, the Group adopted its Purpose at the
the first water and Controlling water Fighting plastic
Annual General Meeting: “Shaping a sustainable sanitation networks networks in real time pollution by designing
1981 2015
environment, now”. Its 160 years of history bear in French cities with the first smart the first plant to
witness to a continuous, pioneering commitment to meters produce food-grade
serving this ambition, working alongside citizens, recycled PET plastic
regions, cities and the business world. 1919
Accelerating urban 2010-2020
waste collection with Supporting economic 2021
the first motorised growth with water Detecting and
refuse collection and waste treatment monitoring the
trucks in Paris (France) solutions for Chinese spread of Covid-19 by
industrial parks analysing wastewater
in cities.
1948 Guaranteeing the
Supporting 2015 quality of sewage
1990-2000 2019 sludge using
urbanisation in Responding to fossil
developing countries fuel depletion by blockchain technology
by building the first injecting biomethane
drinking water plant from waste into gas
1869 in Egypt networks
1975 2015
Responding to Supporting the
resource scarcity by historic Paris Climate
designing the first Agreement with
reverse osmosis commitments to
seawater desalination achieve the 1.5°C
1880-1890 1919 2005 2020 plant in Riyadh (Saudi target
Arabia)
1981
Creating CIRSEE, the
International Water
and Environment
Research Centre
1948 1975 2010-2020 2021
8
The SUEZ
value chain
- INCOMING BUSINESS VALUE VALUE SHARED CONTRIBUTION
RESOURCES FLOWS SEGMENTS PROPOSITION CREATED VALUE TO SDG
SUEZ supports the
environmental transition in
the industrial and municipal
markets, which have fully
grasped the scarcity of CAPITAL CAPITAL
resources and the need to
fight climate change and
HUMAN HUMAN
adapt to the consequences WATER Shaping a better
86,195 Household €4,697
we can already see around and industrial quality of life Products
employees of the circular million in salaries
us. waste
economy
Raw and secondary materials
The Group, which favours Renewable energy
the circular economy model, NATURAL Alternative water NATURAL
operates throughout the Air Water Soil Shaping a better 9.5 MtCO2e
Biodiversity planet of emissions avoided
water management and
waste recovery value chain: RECYCLING AND
from building and operating FINANCIAL
RECOVERY
networks and infrastructure €520
FINANCIAL million distributed to
for water and for waste shareholders
Net debt/EBITDA Shaping for a better
collection, sorting and = 3.4 x Raw water climate
recovery to the production and
of renewable energy and wastewater Environmental
new materials and the services INTELLECTUAL
delivery of digital services.
CITIES: Integrated service management €103
INTELLECTUAL / Advanced solutions million invested
ENVIRONMENTAL
Shaping a circular INDUSTRY: Eco-efficiency / Industrial in R&D
4,045 patents TECHNOLOGIES AND
economy water / Marketplaces
SOLUTIONS
CONSUMERS: Smart metering /
Smart waste / E-commerce / Digital
services SOCIETAL
SOCIETAL €9,652
Open innovation million of procurement
ecosystem > 125,000 and subcontracting
Other Shaping with
suppliers local partners €851 million in tax
Construction and duties
materials Reagents
Energy
9
PART 1
The Covid-19 crisis:
an accelerator
of profound changes
-
The Covid-19 crisis has not halted the strong trends affecting
SUEZ’s markets. On the contrary, it has strengthened them,
creating favourable conditions for the Group’s strategic plan to be
implemented more quickly.
10Protecting biodiversity: TREND 01
where major challenges for humanity
come together
- Building truly sustainable economic
growth and development requires us to
recognise that our long-term prosperity
depends on a rebalancing of our
our demands on nature do not exceed its demands for natural goods and services
capacity to fulfil them. This is why the with nature’s capacity to deliver them.
next United Nations biodiversity confer- Covid-19 shows us what happens when
ence, known as COP15, which will be held
we fail to respect this balance.
in China at the end of 2021, is expected
Extract from the Dasgupta review (2021)
to lead to an international agreement on
biodiversity protection on the same scale
as the COP21 climate agreement.
Biodiversity is also threatened by climate
change, as shown by the “megafires”
that struck huge areas of Australia, Cal-
TRENDS
ifornia, Siberia and the Amazon in 2020.
These fires, which are likely to multiply
1,000,000
animal and plant species are currently
according to scientific projections, cause at risk of extinction
huge population displacement and have
a catastrophic impact on hundreds of
animal and plant species.
2020 will go down in history as the Another phenomenon associated with the
year when the links between climate, impact of human activities is the contin-
biodiversity and human health were uing thawing of permafrost observed in
made abundantly clear. summer 2020 in Alaska and northern 55%
Russia. This extreme phenomenon also of global GDP ($41,700 billion) depends on the
The urgency of controlling biodiversity heightens environmental and health functioning of biodiversity and ecosystem services
loss is now as obvious as the need to risks, as this soil layer contains enor-
drastically reduce greenhouse gas emis- mous quantities of CO2, methane and –
sions. Commissioned by the UK Treasury
and published in February, the Dasgupta
viruses that could potentially be danger-
ous to humanity. 69 countries
review of the economics of biodiversity have adopted national strategies and action plans
observes that societies have collectively to protect biodiversity
failed to manage nature sustainably, and
that transforming our institutions and
organisations is imperative to ensure that Sources: IPBES, Swiss Re, CBO
11Ecological transition: TREND 02 Details of recovery plans
at the heart of the
economic recovery
-
FRANCE
€30 billion over 2 years
Goal: to accelerate the
ecological transition in
transport, construction,
energy, industry and
agriculture
decisions could trigger unbearable cli-
mate disasters or create a resilient and
safe economy powered by clean energy,”
emphasise 14 internationally recognised
institutions (including Columbia Univer-
sity, I4CE and IISD) in a joint call. The
recovery plans announced so far have
EUROPEAN UNION
TRENDS
responded to this need (see diagram
opposite). €1,000 billion over 10 years
Goal: to be the first
climate-neutral continent
Investors, too, are calling for the econ- USA by 2050
omy to be allied with ecology. 2020 was $2,000 billion over 4 years
a year of acceleration in green finance: Goal: to build low-carbon
green bonds, sustainable bonds, sus- infrastructure
tainable debt etc. According to Bloomb-
erg, finance in the form of loans granted
to sustainable projects reached the
record sum of $732 billion in 2020, 29%
higher than in 2019.
As well as a global public health crisis,
the Covid-19 pandemic has caused a More investment was paired with greater
corresponding economic and jobs crisis. expectations of non-financial perfor-
As soon as the first recovery plans were mance, as shown by many investors
announced, economists and research advocating the Say on Climate, a prin- SOUTH KOREA
institutions called for a focus on green, ciple by which shareholders vote every $61 billion over 5 years
inclusive growth: “This large-scale stim- year on the climate policies of listed Goal: to increase renewable
ulus spending will shape the global companies, enabling them to monitor energy production, strengthen
economy for decades to come. These their actions and results more closely. green mobility, renovate rented
housing and turn cities green
12Analysis by Sébastien Treyer,
Executive Director of IDDRI
-
What impact has the crisis had on inter- continues to inflict serious socioeconomic The race for carbon neutrality, even
national momentum towards sustai- damage almost everywhere, shifting the though it is still too half-hearted, has
nable development? priority to social rescue packages. definitely begun: we must now ensure
International cooperation that the international framework, par-
The Covid-19 crisis has disrupted the The world has also shown its fragmen- ticular in terms of trade, balances the
for sustainable timetable of international events, delay- tation and its inability to cooperate at the straightforward competition for green
development: despite ing many of the meetings that will be very time when the pandemic was clearly technologies with a spirit of inspiration
crucial for a successful implementation demonstrating how closely interwoven and cooperation to achieve a transforma-
the Covid-19 crisis, of the ecological transition at all levels. our economies are, through both the cir- tion towards low-carbon economies with
the race for carbon culation of microorganisms and our sup- a positive impact on nature
A whole set of questions will have to wait ply chains.
neutrality has begun! until the conferences of the parties (COP)
can be held at the end of 2021. Have the
Paris Agreement signatory countries ful- What are our chances of achieving
TRENDS
filled their 2015 commitments – have they strong, convincing results in these inter-
implemented ambitious climate policies, national forums in 2021?
and are they still increasing their targets
for reducing greenhouse gas emissions? In autumn 2020, the chain of events that
Will countries be able to set themselves saw major advanced economies (China,
a new framework of 2030 targets for Japan and South Korea, following the
biodiversity, and will they define the European Union in 2019) announcing
resources needed to effectively halt the long-term carbon neutrality goals
factors driving biodiversity loss? demonstrated the effectiveness of the
Paris Agreement in enabling and accel-
Is the international community capable erating this convergence, despite uncer-
of reaching agreement about the deploy- tainties about the American elections and
ment of concrete measures to protect the socioeconomic crisis.
BIO IN BRIEF
marine ecosystems despite the geopo-
With a doctorate in environmental litical tensions around sea areas? This indicates a “sense of history”, but it
management, Sébastien Treyer, still needs to be given concrete form,
Executive Director of IDDRI (the French This year’s delay has the advantage of including the actual deployment of recov-
Institute of Sustainable Development
and International Relations), specialises
giving countries more time to negotiate ery plans or the Chinese five-year plan.
in forecasting to help shape public the terms of their cooperation despite the Recovery plans have generally focused
policy and international negotiations on political and commercial tensions, and too much on fossil fuels, even if invest-
sustainable development. to demonstrate their individual commit- ment in the ecological transition has also
ment. Meanwhile, the Covid-19 crisis often been a significant component.
13Green, resilient cities: TREND 03
on the agenda more than ever
- POPULATION
55%
of the world’s population ENERGY
2/3
(68% by 2050)
of energy needs
ccelerating the greening of cities by
a
improving air quality, reducing levels
of artificial land cover, developing
urban agriculture etc.
Central to economic activity, cities also The footprint AREA
3%
want to influence the “green recovery”. of cities
TRENDS
Brought together by the international C40
network, 96 cities committed to fighting of the Earth’s
climate change – including Montreal, surface
Seoul, Paris, New York, Melbourne and
Revealing the links between the environ- Mexico City – have created the Global
ment and human health, together with Mayors Covid-19 Recovery Task Force to
the fragilities of a globalised economy, “guide our [recovery] efforts to develop a
Covid-19 has also made questions about new normal – one that is greener, health- HEALTH
the future of cities even more urgent. ier, and more prosperous for everyone.” levels of fine particles, CARBON
70%
carbon dioxide and ozone
In the age of lockdowns, politicians, opin- generally above
ion leaders and residents have all re- the thresholds set by
examined what they expect and need the WHO of CO₂
from their cities: emissions
reinforcing the resilience and adapt-
ability of cities to extreme events
(weather, pandemics etc.) by investing
in services and infrastructure;
Source: World Economic Forum, WHO
14The year of acceleration TREND 04
in the digital transformation
-
Online activities have naturally flour-
ished during the coronavirus crisis. The environmental impact of digital technology
Worldwide, 4.66 billion people used
the internet in January 2021, an increase
of 316 million (7.3%) since the previous
year. 4.2 %
of primary energy
The use of digital technology has inten- consumption
sified in all areas of activity: working
from home, remote schooling, streaming
platforms, the e-commerce boom, tele-
medicine, increased web browsing etc. 3.8 %
of CO₂ emissions
As a result of this trend, countries are
increasingly questioning the environ-
TRENDS
5.5
mental impact of digital technology and
considering both technical and legisla- %
tive responses.
of global electricity
consumption
0.2 %
of water consumption
billion people worldwide used the internet
in January 2021 Sources: AIE, GreenIT, Hootsuite
15Analysis of
risks and
Opportunities Opportunities Opportunities Opportunities
Essential services for health Waste recovery Infrastructure needs Blockchain and
opportunities
and well-being → SDG 7, 11 et 12 → SDG 6, 9, 10, 11 and 12 cryptocurrencies for secure
→ SDG 3 Local loops in the circular transactions and targeted
Soil remediation finance
economy
-
Attracting talent → SDG 15 → SDG 9, 10, 16 and 17
→ SDG 5, 8, 10 and 17 → SDG 11 and 12
Air treatment
Smart cities Smart resource and flow
Citizen participation → SDG 11
At a time when changes are → SDG 11 management
→ SDG 16 and 17 Low-carbon solutions → SDG 9, 11 and 12
accelerating, the need for Low-carbon solutions
Attractiveness of responsible → SDG 13 and 12 → SDG 13 and 12 Slow tech
responsiveness and agility in
companies to investors Solutions for urban resilience Alternative water → SDG 9, 10 and 17
our activities and models is a
→ SDG 8 and ecosystems resources and secondary New online services
constant challenge; analysing
→ SDG 6, 11, 14 and 15 raw materials → SDG 8, 9, 10 and 17
the resulting risks and → SDG 6 and 12
New activities
opportunities is a necessity. Contractual models suited → SDG 4, 8, 9, 10 and 17
SUEZ draws on an integrated to emerging countries
risk and opportunity → SDG 10 and 17
management process aligned
with the SDGs.
TRENDS
Needs for
Health and citizens’ Digital
environmental Urbanisation
concerns technology
services
Risks Risks Risks Risks
Ethical and reputation risks Increase in extreme climate Increased pollution Cybersecurity and data
→ SDG 16 and 17 events → SDG 11, 14 and 15 protection
Social conflicts → SDG 13 Resource conflicts → SDG 9 and 16
→ SDG 16 and 17 Rising energy prices → SDG 6 and 16 Human resource adaptation
Risks of volume and price → SDG 7 Uncontrolled urban and Group transformation
reductions Risks of delay in achieving development → SDG 4, 8, 9 and 17
→ SDG 11 and 12 compliance → SDG 1 and 11 Competitive environment and
Health risks → SDG 8 Reduced infrastructure delays to innovation
→ SDG 3 load in declining cities → SDG 8, 9 and 17
The Sustainable Development Goals were defined by
the United Nations in 2015. They constitute a shared Supply chain vigilance → SDG 3, 10 and 11 Environmental footprint
agenda for sustainable global development in the → SDG 16 and 17 of digital technology
years leading up to 2030. They provide a common → SDG 9 and 12
language for SUEZ, its customers and other
stakeholders; the Group uses them to analyse its
risks and opportunities, inform its strategic choices
and adapt its solutions to local priorities.
16PART 2
An essential
presence
in environmental
services
-
The SUEZ 2030 strategic plan sets out the Group’s position
in relation to the decade’s opportunities and challenges and
accelerates its contribution to the environmental transition.
SUEZ aims to maintain its position as the preferred choice
of its industrial customers, local authorities and citizens so that it
can work alongside them to meet the planet’s biggest challenges:
the climate crisis, protecting and restoring our natural capital,
health and quality of life.
17The first calendar year of the SUEZ 2030 OR
GA
strategic plan’s implementation has NI
already resulted in notable successes TH S
W
with regard to the Group’s transforma-
AT
RO
IO
tion targets set by senior management.
EG
NA
In the sectors where the development
SELECTIV
ND P
opportunities identified were the most
promising, such as environmental ser-
ERFORMAN
vices and hazardous waste treatment,
new partnerships have led to many com-
STRATEGY
mercial successes.
By reducing its debt and deploying its
performance plan, SUEZ has been able
CE
to increase its financial targets.
Finally, the shared commitment across
the Group to continuing to deliver essen-
tial services during the health crisis while CU
LTUR
protecting everyone’s health and safety E & HR
has been a catalyst for the deployment of
the Group’s culture and values.
SUEZ has implemented a transformation
strategy built on three pillars: a more
selective path to growth, simplified
operational processes and a new culture
that embodies the winning spirit of SUEZ
on a daily basis.
18Highlights of SUEZ’s PILL AR 01
selective growth
-
In 2020, despite the unprecedented global health crisis,
By aiming for selective growth, the Group accelerated its
the Group’s ability to secure contracts showed no signs
development in the areas where the strongest opportunities
of slowing down. SUEZ not only succeeded in deploying its
have been identified:
strategic plan – it even accelerated its implementation.
International markets: the Group intends to grow its acti-
vity in a selection of countries, where it will deploy its global
value proposition and step up its investments in innovative
services. The Group also aims to grow in markets where the
need for environmental infrastructure is rising sharply.
STRATEGY
Industrial customers: the Group intends to accelerate its
development in five key fast-growing markets (agri-food;
energy; oil and gas; chemistry and pharmaceuticals; and
microelectronics), prioritising high-added-value activities
based on its portfolio of distinctive solutions.
Data-driven technologies and solutions: the Group will
call on proprietary technologies and innovation to develop and
deploy advanced solutions on a worldwide scale. SUEZ is also
developing new, high-potential activities such as air quality
management and smart agriculture.
19Multiplying innovations to serve
the environment and health
LOOP
Strategic partnership with LOOP Indus-
tries to build the first factory producing
100% recycled and infinitely recyclable
plastics in Europe and deliver a sustai-
nable solution for global consumer goods
manufacturers.
COMBIN’AIR
Installation in Poissy (France) of the
first air treatment system to improve air
Diane Galbe, Group Executive VP
quality in schools and protect children, in charge of Strategy and the Smart
who are particularly vulnerable to atmos- & Environmental Solutions BU
pheric pollution.
CIRCULAR CHAIN
STRATEGY
Launch of the circular economy
Our strategic plan, which
blockchain to support the agricultural
combines a renewed focus
transition. This technology represents a
on added-value growth
new stage in SUEZ’s pioneering strategy
activities with an ambitious
for organic waste management and digi-
performance plan, is already
tal roll-out.
showing results after just a
year of implementation and
ON’CONNECT
demonstrating its ability
Deployment of a new digital solution with
to meet the ongoing challenges
the RATP Group to optimise and reduce
of the environmental transition.
water and energy consumption across its
network and its assets.
million of euros
103 the amount SUEZ invested in R&D, innovation
and digital technology in 2020
20Focusing capital on activities
corresponding to the selective
growth strategy
Having announced the first wave of dis-
posals in its asset rotation plan in 2020,
the Group began 2021 with several strate-
gic acquisitions in China, the USA and
Spain.
2020
Supporting the growth
Disposal of OSIS (a company specialising of the hazardous waste
in sanitation network and infrastructure treatment market
maintenance in France), the stake in
ESSAL in Chile and the SUEZ Recycling ITALY
and Recovery activities in four continen- Creation of a joint venture with A2A
tal European countries. Group to become a high-level player in
hazardous waste treatment in Italy (the
2021 third-biggest market in Europe).
STRATEGY
Acquisition of the minority stakes in SUEZ
NWS and Suyu in Greater China, resulting SAUDI ARABIA
in 100% ownership of SUEZ NWS and Completion of the process to acquire a
Suyu; acquisition of Itochu Group’s 33.4% majority stake in EDCO, a Saudi hazar-
stake in Canaragua to hold all the capital; dous waste management company, Christophe Cros
acquisition of the Heritage Hills Water alongside Five Capital and Itochu, to gain Group Executive VP – North America
Works Corporation and the Heritage Hills a presence in the fast-growing hazardous Region, President of the WTS* BU
Sewage Works Corporation to expand the waste market in Saudi Arabia.
Group’s activities in North America.
Creation of a joint venture with Schneider With the acquisition of the
Electric with the aim of building a leader Heritage Hills Water and
in digital water, developing and marketing Sewage Works Corporation in
a shared range of innovative digital New York state, we are
solutions for water cycle management. contributing our expertise to
guarantee compliance with
state and federal government
water regulations on behalf of
local authorities.
* Water Technologies & Solutions
21A performance plan PILL AR 02
exceeding expectations € 326
- million in additional
performance savings
In 2020, the Group continued to roll out its new at the end of 2020
organisation, tailored for the success of its strategic
and commercial objectives. -
3
centres of excellence
(Marketing; Skills and
Performance; Digital and
Innovation) supporting the
operational BUs
Julian Waldron,
Group Chief Financial Officer
Launched in 2019 under the Organisation and
Performance section of the Strategic Plan,
and based on deploying a culture of operational Our performance plan has
STRATEGY
excellence on the ground, taking action to exceeded our expectations.
reduce environmental impact and supporting It has affected all our
local teams through the transformation, the operational processes,
SPOT 2023 programme involves over 2,000 from quality of service
employees in the field or the themed working to customers and supply
groups responsible for its management. chain relationships. We
have already witnessed the
The speed of its deployment and the level of benefits in terms of our
performance shown by the first results cashflow: we significantly
collected has enabled us to raise the 2023 reduced our working capital
annual savings target from €1 billion to €1.2 requirement in 2020, while
billion, which will contribute significantly to paying our suppliers more
increasing investment in research, innovation rapidly.
and the digital transition, as well as continuing
the reduction in the carbon footprint of the
Group’s activities.
22At the height of the health crisis, PILL AR 03
employees who are more
committed than ever
-
The success of SUEZ 2030 relies on all Employees in the front line of the
the Group’s employees contributing their Group’s commitment
energy and expertise. To succeed in the SUEZ has launched the #LeadTheChange
transformations at the heart of the challenge on social media. Its goal is to
strategic plan, four fundamental values share its goal of passing on a sustainable
have been defined: passion for the en- environment to the younger generations,
vironment, customer first, respect and with a photo of each participant as a child
team spirit. and a caption describing their daily effort
to preserve the environment.
The commitment of staff at the height of
STRATEGY
the health crisis to ensuring that activi-
ties such as water distribution and waste
collection could continue testifies to
their strong roots; but 2020 was also an Employee shareholding beats
opportunity for the Group to consolidate engagement records
its values. Over half of SUEZ employees in France
subscribed to Sharing 2021, the Group’s
fifth employee share offer. A new record
86,000 employees involved for engagement!
in the “Environment Collage” Following the reservation period, the
In 2020, SUEZ announced the global employee shareholding level was 5.6%, The health crisis has generated a new social
roll-out of the Environment Collage, a making the Group’s employees the dynamic which responds to employees’ aspirations
workshop for collective intelligence ins- second-largest SUEZ shareholder. for a better work-life balance and aligns with
pired by and created in partnership with our commitments in terms of corporate culture.
the Climate Collage. By 2023, it aims to It has also accelerated the modernisation and
explain the concrete role of SUEZ’s digital transformation that was already under
activities in the environmental transition way in our processes, working methods
Isabelle Calvez and managerial culture.
and share it with the Group’s 86,000 Group Executive VP
employees. for Human Resources
23The four values
of the SUEZ winning spirit
-
Passion for the
SUEZ has established four values that The unanimous, unfailing mobilisa- environment
constitute the new basis for its culture tion of the Group’s employees
and its conquering spirit: Passion throughout the Covid-19 crisis has
for the Environment, Customer First, both illustrated these values in
Customer
Respect and Team Spirit. These concrete terms and cemented the first
values are the foundations of the Group’s corporate culture around
human resources management policy them.
in the SUEZ 2030 plan. They reflect
Our values
STRATEGY
the Group’s vision, illuminate its Among the actions launched in 2020
strategic decisions and guide its to deploy these values, as well as the
actions. Environment Collage (see page 24),
all Group Business Areas were
By embodying these values in the challenged to announce an action
concrete missions it allocates to its
employees, the Group gives its cus-
plan covering all their activities by the
end of 2021, to show how they were
Respect
tomers, partners and stakeholders setting an example by incorporating
a clearer view of its commitment the environment into their daily ope-
to the planet. rations.
Team spirit
24PART 3
Performance
on behalf of
all stakeholders
-
In a year marked by an uncertain environment, the unfailing
commitment of the Group’s employees and the trust of its
customers, investors and partners have once again enabled SUEZ
to demonstrate its ability to create multidimensional value for all
its stakeholders. In particular, the Group’s commitment to offering
its customers 100% sustainable solutions took concrete form,
enabling the shared management of all components of the Group’s
value proposition.
25Performance for Redistribution of the financial flows
generated by SUEZ activity in 2020
the benefit of everyone
- 17,590
million €
Revenue and other income
Every year, SUEZ evaluates the economic
and social impact of its activities in the 16,187 million €**
Redistributed
regions where it operates. Over 92% of the
financial flows generated by its activities € 9,652 Suppliers and service
are redistributed to its primary stakeholder millions providers, including €3,437
categories. million of procurement (32%
from microbusinesses/SMEs)
France: 30%
Europe excluding France: 25%
Rest of world: 45%
–
€ 4,697* Employees
PERFORMANCE
millions France: 34.1%
Europe excluding France: 34.8%
Rest of world: 31.1%
–
€ 851 Government and local authorities
millions Taxes and duties
–
€ 520 Shareholders
millions Dividends
–
€ 441 Financial institutions
millions –
€ 26 NGOs and communities
millions Donations, corporate patronage
and sponsorship
–
* Including social security and pension contributions.
** The difference between the revenue generated and the economic flows redistributed represents amounts that could not be
identified as corresponding to a counterparty in terms of the supply of goods and services: amortisation, depreciation and
provisions, loss of asset value etc. 26SHAREHOLDERS LOCAL AUTHORITIES INDUSTRY PLANET EMPLOYEES
For the benefit The Group has improved its
of financial investors
2021 outlook with the following
targets2:
-
-
Revenues of over €16 billion, with
a return to organic growth
An EBIT of €1.4 billion to €1.6 billion
Net income Group share amounts to
-€228 million in 2020, compared with Recurring Earn Profit per Share
€352 million in 2019. (EPS) of €0.80 to €0.85
Restated to include non-recurring items,
net income Group share amounts to -€38
changes in the scope of consolidation million in 2020, a net recurring income Recurring free cash flow over
of -0.2% (-€35 million) per share of -€0.06. €500 million
PERFORMANCE
exchange rate variations of -1.6% Recurring free cash flow amounts to €69
(-€295 million), due to depreciation in million, compared with €127 million in
currencies including the Chilean peso, 2019.
the US dollar, the Australian dollar and The working capital requirement amounts
Solid 2020 results and improved the Brazilian real against the euro. to €202 million in 2020, compared with
prospects for 2021 that consolidate In terms of EBITDA and EBIT, the Group -€153 million in 2019, reflecting struc- Net debt amounted to €9,749 million on
the value creation initiated by the recorded -€98 million and -€303 million tural improvements over the financial 31 December 2020 before reclassification
SUEZ 2030 strategic plan. respectively of costs and estimated pro- year resulting particularly from actions of assets and liabilities associated with
visions for the 2020 financial situation, taken in France and within WTS. assets held for sale1 (IFRS 5), compared
organic variation of -2.6% (-€477 mil- including the pandemic. These figures with €10,151 million on 31 December
lion), representing the drop in volume due are associated primarily with the excess Investments amounted to €1,324 million 2019, a reduction of -€403 million. This
to Covid-19 in the first half-year (-4.5% costs of maintaining operations during in 2020, compared with €1,417 million includes €423 million of income from
in organic revenue compared to 2019) the pandemic, the risks of business inter- in 2019. disposals. After the impact of the IFRS 5
followed by solid operational perfor- ruption (for construction activities, for They consisted of €579 million of main- standard, net debt stands at €9,611 mil-
mance in the second half-year as the example) and the potential impact of the tenance capex and €745 million of devel- lion.
recovery took hold (-0.9% of organic var- increased risk of payment defaults. This opment capex. Additional investments
iation), particularly in the Asia-Pacific brings the EBIT to €780 million, with an were made in the second half-year using The debt ratio stands at 3.5 x EBITDA
region and in Recycling and Recovery impact of -€50 million due to exchange cash flow generated due to structural on constant scope (before the impact of
activities in Europe. rate effects. improvements. IFRS 5).
1-Recycling and Recovery activities (excluding plastic recycling and hazardous waste) in the Netherlands, Luxembourg, Germany and Poland, and OSIS
2-On the basis of constant exchange rates and raw material prices and no more regional lockdowns
27SHAREHOLDERS
Revenue breakdown by activity* Net investment (in € millions)
Water
39.6% Recycling &
Recovery
42.2%
2019 2020
Environmental 663
Tech & Solutions
(ETS) 579
20.3%
* Percentages calculated excluding 2% inter-company sales, i.e. reciprocal transactions between Group entities. 755
745
PERFORMANCE
Key financial indicators 94
(in € millions) 56
Variation (651) (399)
December 31, December 31, Gross Organic
In € millions at constant
2019 2020 variation variation exchange rates
860 980
Revenue 18,015 17,209 -4.5% -2.6% -2.8%
EBITDA 3,220 2,815 - 12.6% - 9.9% - 10.2%
EBITDA/revenue 17.9% 16.4%
EBIT 1,408 780 - 44.6% - 40.8% - 41%
EBIT/revenue 7.8% 4.5% Maintenance investment
Development investment
Net income,
352 -228
Group share Financial investment
Disposals
Recurring net income,
350 -38
Group share
28SHAREHOLDERS
A pioneering, committed approach
to non-financial performance In March 2021, SUEZ integrated the new
-
Euronext CAC 40 ESG index, launched by
Euronext with the backing of Vigeo Eiris, a
Moody’s subsidiary. This index measures
With sustainable development an increasingly central part of its strategy, companies’ performance relative to the
SUEZ has again consolidated its excellent performance in the eyes combined criteria of several frameworks,
of the non-financial rating agencies and its presence on the main including the United Nations Global
international ESG rankings. Compact and the ISR label launched by the
French finance ministry. Companies are
selected from the “Large 60” index, which
includes the 40 reference stocks from the
2017 2018 2019 2020 French CAC 40 plus the 20 from the CAC
Next 20.
RobecoSAM 82 79 76 78
SUEZ was commended by Sustainalytics
for its excellent management of ESG risk
PERFORMANCE
CDP Climate A A A A- (environment, social and governance). The
Group ranks second in the “multi-utilities”
sector, consisting of 58 companies, and
CDP Water - - B A- features in the “low risk” category.
This score reflects SUEZ’s strong risk
CDP Supplier Engagement Rating - -
A A
management and underlines how well ESG
considerations are integrated into all the
Sustainalytics - 83/100 83/100 84/100 79/100 Group’s processes and the whole value
ESG Performance chain. The management of risks associated
with occupational health and safety,
Sustainalytics – - - 22.8 19.2
ESG risks medium risks low risks business ethics and stakeholder relations
is evaluated alongside the Group’s climate
and environmental risks.
Ecovadis Gold Gold Gold Platinum
This assessment of ESG risk management
Vigeo EIRIS 67 - 71 - completes the ratings assessing corporate
sustainable development best practices
and responds to the growing eagerness of
FTSE Russell 4.0 4.1 4.4 4.4 financial players to further integrate
sustainability risk when choosing
MSCI - A A A investments.
29SHAREHOLDERS
2020 revenue included in the
European taxonomy
As part of its proactive engagement
with the financial community, the Group
74
has also published the proportion of
its 2020 revenue recognised under the
European Taxonomy for Sustainable
Activities: 74%.
The Group has decided to adopt the SASB
PERFORMANCE
2020 revenue eligible for climate (Sustainability Accounting Standards
65% change mitigation
Board) non-financial reporting standard
in its 2020 statement of non-financial
2020 revenue qualifying under performance, as it includes the financial
9% articles 11 to 15 of the Taxonomy materiality of the environmental and
Regulation
social issues specific to each industry.
This statement of non-financial perfor-
mance also includes a correlation table
with the recommendations of the Task
2020 revenue not identified
Force on Climate-Related Financial
18% in the Taxonomy framework Disclosures (TCFD).
2020 revenue excluded
8% from the Taxonomy
framework
30SHAREHOLDERS LOCAL AUTHORITIES INDUSTRY PLANET EMPLOYEES
Working with local authorities
to deliver essential services to residents
-
Water distribution, plastic recycling: supporting Asia’s
response to the major environmental challenges
INDIA
The Group designed and built 250 drinking water treatment
and sanitation plants and operated 25 plants in 2020.
PERFORMANCE
SUEZ provides drinking water and sanitation services for
major metropolises such as New Delhi, Mumbai, Bangalore
and Kolkata and other cities such as Lucknow, Mangalore,
Davanagere, Coimbatore, Udupi and Puttur.
In 2020, SUEZ secured two drinking water production contracts for over 10 million
residents in Bangalore. These contracts include designing, building and operating a
drinking water plant with total capacity of 775,000 m3 of water/day for seven years,
together with a treated water tank and a pumping station at the site of the TK Halli
drinking water plant.
44 million 48 million 15 million
Indians supplied receiving sanitation benefiting from the Group’s
with water by SUEZ services expertise in network performance
and leak identification
31LOCAL AUTHORITIES
THAILAND
In 2020, SUEZ began constructing a plant to
recycle plastic waste into recycled polymers in Bang
Phli, near Bangkok. The plant will contribute to the
Thai government’s ambitious target of recycling 100%
of the plastic collected by 2030 and respond to growing
demand for recycled plastic in local industry.
Treating 30,000 tonnes of plastic waste a year, the plant will avoid the emission of over
75,000 tonnes of greenhouse gases generated the production of virgin plastic.
Ana Giros, Group Executive
VP – APAC & AMECA and Key
The installation will be equipped with a high-performance water treatment system, Industrial Accounts
reducing the amount of water needed for recycling. The plant will be partly powered by
PERFORMANCE
solar panels on the roof, optimising the site’s environmental footprint.
The project contributes to the goals of the Alliance to End Plastic Waste, of which SUEZ Our Group has the most
is a founding member. Its ambition is to eradicate plastic pollution in the environment, innovative solutions and
and especially in the oceans. technologies for plastic
recycling. Our first plastic
recycling facility outside
Europe was opened last
December, after construction
was finalised at the height
of the pandemic, and is now
operational. It will help
South-East Asia move towards
75,000 a circular economy model.
tonnes of CO2 avoided
30,000
tonnes of plastic treated
a year
3D rendering of the plastic recycling plant
Recycled plastic
32LOCAL AUTHORITIES Since 1994, SUEZ has supported the local
authorities in the production of over
750 million m3 of recycled water.
Significant growth in the Group’s historic core
The facility supplies five different qualities
of recycled water tailored to the specific
needs of municipal, commercial and
industrial customers in the United States’
western basin (watering gardens,
irrigation, supplying water to boilers and
AUSTRALIA
cooling towers at industrial sites etc.).
Edward C. Little also produces 45,000 m3
of reservoir water a day to recharge
groundwater and protect the South Bay
coastal groundwater reservoirs from any
The new contract is worth €170 million ingress of salt water from the Pacific
over five years and begins in July 2021. Ocean.
It includes the operation of five drinking
water plants and five wastewater
treatment plants to meet the needs of a
million residents.
PERFORMANCE
To contribute to the local industry UNITED STATES
participation plan, which aims to create
tangible economic and socio-economic
opportunities for the city including an
a m b i t i o u s a c t i v i t y i m p rove m e n t
programme to achieve sustainable € 67M
savings, SUEZ offered intelligent In January 2020, the West Basin of cumulative sales
solutions developed by the Group. These Municipal Water District, near Los
include the AQUADVANCED® suite, an Angeles in California, renewed the
South Australia Water (SA Water), the innovative digital tool that guarantees contract it entrusted to SUEZ in 1994 for
Australian state’s public water services high-quality drinking water and another five years. The agreement
company, renewed its trust in the SUEZ improved overall performance for covers the operation of the Edward C. 150,000 m 3
Group in December 2020, with a new production systems and distribution Little wastewater recycling plant and of water produced each day
public-private partnership contract networks, while helping to reduce the three auxiliary plants.
covering water production and waste- environmental impact.
water treatment services for the city of Edward C. Little is one of the biggest water
Adelaide, the country’s fifth-largest recycling facilities in the United States. It
city. produces around 150,000 m3 of water 5
every day, helping to conserve water water quality levels
resources in one of the regions of the
country most exposed to drought.
33LOCAL AUTHORITIES In the UK, SUEZ quantifies and highlights
its non-financial benefits
Significant commercial
momentum in France
FRANCE
In line with the provisions of the British
government’s Social Value Act, which
encourages public service providers to
The Group has maintained strong evaluate and optimise the social,
commercial momentum in the French economic and environmental benefits
market by renewing and securing large of the services they provide to local
numbers of contracts, including: authorities, SUEZ has developed a Social
Profit calculator in the UK. Based on
Aix-Marseille Provence national and international calculation
PERFORMANCE
standards, it translates the positive
• D rinking water and sanitation
externalities of the Group’s activities into
management in Istres Ouest-Pro-
monetary terms.
vence for over eight years. These
contracts, worth a total of €98 mil- The tool has been used to monetise the
lion, serve nearly 100,000 residents. non-financial benefits arising from
Greater Manchester’s outsourced
Greater Dijon municipal waste management contract,
totalling around three times the amount
• Creation of the first multi-service
paid annually for the contract.
single-contract public-private com-
pany (SEMOP) in France dedicated
to managing both public water and
sanitation services. The company
covers 220,000 residents of 15
municipalities in greater Dijon.
UNITED KINGDOM
• P re-collection and collection of
household and similar waste, with
total revenues of nearly €70 million
over five years.
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