VEOLIA TRANSDEV AND THE UNITED NATIONS GLOBAL COMPACT progress report

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1 VEOLIA TRANSDEV AND THE UNITED NATIONS GLOBAL COMPACT 2011 progress report

2 VEOLIA TRANSDEV, COMMITTED TO GLOBAL COMPACT Veolia Transdev has embarked on a path of sustainable development, consistent with the values of its shareholders, la Caisse des Dépôts and Veolia Environnement. Our decision to join the United Nations Global Compact is a formal confirmation of our commitment. We consider this commitment as an opportunity for continuous improvement in the areas of corporate responsibility, social relations, environmental conservation and business integrity. We thus pledge to continue to apply the Compact s 10 principles in a determined, practical approach as well as to share them with our partners. Jérôme Gallot Chief Executive Officer of Veolia Transdev

3 Principles in action A signatory to the Global Compact in 2003, Veolia Transdev strengthened its approach to Corporate Social Responsibility (CSR) in 2011 by establishing a sustainable development department to improve the management of CSR issues throughout the company s businesses and countries. Implementation of Veolia Transdev s CSR activities is carried out in full compliance with the 10 principles of the Global Compact. Our intention is to strengthen the consistency of our actions in each country where we operate in response to local issues and needs. This document summarizes the main advancements made in 2011.

4 HUMAN RIGHTS Principle 1: «We will support and respect the protection of internationally recognized human rights.» Principle 2: «We will ensure that we are not complicit in human rights abuses.» Public transport is an intrinsic part of a region s local environment. Sometimes, it represents the only public service active in certain sensitive neighborhoods or rural areas. Movement is a fundamental right, essential to compliance with other individual rights, such as the right to be free or the right to work. The impact of the activities of an international company like Veolia Transdev is therefore fundamental. In offering transport that is constantly adapted and improved to respond to the challenges of local populations, Veolia Transdev promotes accessibility to transportation for all. Veolia Transdev actions include the development of a transport offer accessible to all, promotion of discounted fares and numerous activities and initiatives to ensure service safety and quality. Veolia Transdev also applies its governance principles, consistent with the tenets of the Global Compact, with respect to its 102,000 employees in 27 countries. The company s ongoing development is carried out as part of a long-term vision and the responsible management of human resources, consistent with the principles of governance of its shareholders, Caisse des Dépôts and Veolia Environnement. Two examples of commitments at the Group level: - The various applications of internal rules, including through a Charter of Information Systems Users consistent with laws protecting individual liberties; - Responsible purchasing policies. Results 2011 During 2011, Veolia Transdev continued its determined support of social and community initiatives at both strategic and local company levels: - Creation of an Employer Brand Department to support mutual engagement between Veolia Transdev and its employees; - Commitment of all employees to responding to new societal challenges. Social innovation, born within networks, helps to foster social equity, solidarity, employability of employees and actions with regard to health and physical integrity. In 2011, 24 social initiatives were identified within our networks. Eight of them were published in a brochure, «Social Innovations: Ideas for progress, distributed to other networks for replication. These social initiatives are regularly carried out in partnership with local associations. Initiatives that won recognition as part of Veolia Environnement s Social Initiatives Award are available on under the Media section.

5 LABOR STANDARDS Principle 3: «We will respect the freedom of association and recognize the right to collective bargaining» Principle 4: «We will participate in the elimination of all forms of forced or compulsory labor» Principle 5: «We will support the abolition of child labor» Principle 6: «We will fight against discrimination in employment and the workplace» Although little exposed to risks related to working conditions due to the nature of its business (direct or outsourced) and its operating area (developed countries), Veolia Transdev is committed to social responsibility as a priority area for any new or ongoing local activity. Through training, internal mobility and building awareness of managers, a constant effort is made to adapt to the local conditions of each country, not only its regulations, but also to its varied and underlying cultural dimensions. Among the company s commitments, sustained from year to year: - Establishment, in 2012, of the new «European Works Council» across the 16 European countries where Veolia Transdev operates (established in 2011 with social partners) - Implementation of social programs, such as those oriented around work safety or social responsibility (Veolia Transdev networks are among the first to have taken the steps for OHSAS and SA 8000 certification) - Combating employment discrimination through active engagement with national public authorities (for example, signing of the Diversity Charter in France) Results 2011 In respect of these principles, Veolia Transdev continued its actions on development of social dialogue and employee training: - Most of 2011 was devoted to construction and deployment of new organizations from the merger. The company worked closely with employees and their representatives at each stage of the process. An example was the regular functioning of the Forum for Consultation and Negotiation Preparation, composed of employee representatives, throughout all steps of the transformation during the year. Veolia Transdev s commitment to social dialogue, transparency and information sharing contributed to the December 31, 2011 establishment of a new legal organization. - In 2011, 5,486 representatives actively represented employees throughout Veolia Transdev. The culture of social dialogue is reflected in the signing of more than 950 collective agreements, mainly concerning remuneration, safety and working conditions and social dialogue.

6 - To reaffirm its desire to extend and cultivate this vision of constructive social dialogue, Veolia Transdev s Human Resources Department created a Quality of Social Dialogue department, entrustingits management and actions to an experienced company manager. - The fight against employment discrimination requires constant attention, at all stages of working life: recruitment, career progression, maintaining employability, developing skills. Vocational training is one of the key levers used by Veolia Transdev for improving equal access to career opportunities. - As part of its commitment to integrating new employees through all possible means, Veolia Transdev seeks to ensure that its professions are accessible to populations sometimes far removed from the labor market. Veolia Transdev works to contribute to building local employment as a partner to the regions in which it operates. As an example, Veolia Transdev in France trains apprentices and young and adult jobseekers in professions such as driving and maintenance (with more than 400 apprentices in 2011). These employees are supported on an individual basis to ensure their successful integration into the company. - Veolia Transdev is strongly committed to helping company employees develop their skills throughout their careers. Whatever the level of responsibility, ensuring access for company employees to appropriate, customized training is a top priority. In 2011, over two million hours of training were provided to employees, half of which was dedicated to safety. 67% of employees participated in at least one training session, reflecting an overall financial investment by the company of more than 55 million euros. We believe that this work to build the skills of our employees represents one of the most effective means of preventing discrimination in employment for reasons other than professional competence.

7 ENVIRONMENT Principle 7: «We adopt an approach based on the precautionary principle with regard to environmental challenges» Principle 8: «We undertake initiatives to promote greater environmental responsibility» Principle 9: «We encourage the development and diffusion of environmentally friendly technologies» The environment is central to Veolia Transdev policy (the company was one of the initiators and signatories of the International Public Transport Union Charter on Sustainable Development in 2003). The company is committed to playing a distinctive and crucial role with regard to the environment, at three levels: - In providing and promoting a more attractive public transport system to encourage the modal shift from private cars to public transport, - Reducing the environmental impact of transport activities, - Operating in an environmentally conscious way at all technical and administrative sites. Some examples of company commitments supported from year to year: - Development of innovative solutions, in partnership with public transport authority clients and its suppliers; - Increasing environmental awareness of networks through the company s development of ISO type certifications or infrastructure management standards (e.g., HQE in France); - Promoting the tram as a reduced air emissions transport solution, working in particular through subsidiary Transamo. Results 2011 In the environmental area, the company continued development in 2011 of innovative approaches and advanced solutions, while reinforcing its commitment to fight against climate change: - Veolia Transdev is testing low-carbon energy: in France, bioethanol from grape residues in Reims and used food oil in Nice and, in the Netherlands, hydrogen, - Veolia Transdev is promoting 100% electric or hybrid technologies: commissioning the first hybrid bus in Germany; Ecoliner deployment in suburban Los Angeles in the U.S. (the world s first fast charging, heavy use electric bus); Launch of Coul bus in the Paris region (First electrical bus operating in Paris region); Coulombus experiment in the Netherlands (First bus with wireless re-charge); testing a multimodal all-electric network in Finland (project «E-Mobility»); a system for automatic, rapid recharge in France. Most of these initiatives are conducted in partnership with manufacturers and energy companies with an objective to produce economic models that account for total system cost (vehicles, electricity, battery and charging infrastructure), throughout the entire life cycle (from production of raw materials to recycling of materials at the end of useful life).

8 COMBATING CORRUPTION Principle 10: «We will act against corruption in all its forms, including extortion and bribery» for ensuring the responsible and honest behavior of its employees, beginning with managers: - Maintaining professional relationships with public authorities and suppliers; - Preventing the risks linked to the use of money within each business function. Preventing corruption, for a company like Veolia Transdev, is an issue of particular focus in procurement and in contractual relations. A form of corruption can also occur at a very local level when travel fares are collected. Although the nature of Veolia Transdev s business is not among the most sensitive (source: Transparency International study on areas most susceptible to corruption), consistent with its internally stated values, the company considers itself responsible Résultats 2011 In 2011, actions included strengthening risk management tools to prevent fraud and corruption and to secure and to protect the business from money laundering and financing of terrorism. VEOLIA TRANSDEV Sustainable development department - CSR 32 boulevard Gallieni CS Issy les Moulineaux Cedex Phone : July Photo credits : Veolia Transdev photolibrary

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