Regulatory News:
Veolia (Paris:VIE):
GreenUp 2024-2027
• Solid organic revenue growth1
• €350m savings per year
• Over €8 bn of EBITDA in 2027
• ~ 10% annual growth in net profit
over 2023-20272
• Financial leverage ≤ 3x
• Dividend growth in line with
current EPS
• €4 bn of growth investments, of which €2
bn are prioritized on 3 growth boosters
• Decarbonization: 18m tons of CO2
erased in 2027 (scope 4) & emission reduction trajectory
compatible with 1.5°C warming (scope 1&2)
• Regeneration: 1.5 bn m3 of fresh
water saved in 2027
• Depollution: 10m tons of hazardous
waste and pollutants treated in 2027
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"The ecological awareness must now be channelled towards
effective action, which protects rather than punishes, which
reconciles the economy with ecology, and human health with the
environment. This is the meaning of our new strategic programme:
GreenUp! With GreenUp, Veolia becomes the best catalyst of
ecological transformation for cities and industries, ready to seize
the opportunities created by the demand of populations everywhere
in the world," comments Estelle Brachlianoff, CEO of
Veolia.
The demand for ecological transformation has never been
stronger. In a world committed to achieving carbon neutrality
and gradually reducing fossil fuels, industries and territories
need a shock of proven, affordable and replicable solutions.
Solutions that enable them to reduce their carbon footprint, but
also to adapt to the already visible consequences of climate
change, notably on water resources, preserve the health of
populations, and exploit new local resources to gain greater
sovereignty and autonomy.
Ideally positioned in this booming market, estimated to
be worth around €2.500 billion, Veolia is accelerating the
profitable growth of its activities worldwide with its new
GreenUp plan, while strengthening its decarbonization commitments.
To achieve this, the Group will focus primarily on its
high-impact solutions - the boosters. These are the most
essential and transformative solutions in the fields of water,
energy and waste. Their rapid, large-scale deployment will help
erasing 18 million tons of Scope 43 CO2 emissions by
2027 and preserve 1.5 billion m3 of water.
This impact demonstrates the importance of dedicating efforts
to greening, transformation, and not just to what is already
“green”. This is the most effective way to reconcile economy
and ecology, and that is precisely the objective of GreenUp.
Veolia is also accelerating its own decarbonization trajectory,
with a reduction in emissions (Scope 1 & 2) of -50% by 2032,
compatible with the 1.5°C warming trajectory of the Paris
Agreement.
Veolia is poised to obtain the benefits offered by growth
opportunities, capitalise on its key market position and reap the
dividend of being a champion. The company is targeting average
annual growth of 10% in its current net income over the period
2023-2027, and an EBITDA of more than €8 billion in 2027.
To achieve its growth, Veolia acts as a solutions integrator,
combining its different businesses - water, waste and energy - to
help its customers decarbonize, depollute and regenerate resources.
To achieve this, the Group relies on the combination of its core
businesses with growth boosters, and its presence in different
geographies in order to duplicate proven solutions in one of the 44
countries where it operates.
Boosters and development of digital and technological
innovation
Spearhead of Veolia's growth, the boosters are strategic
activities to which the Group will devote a major share of its
resources, as part of its GreenUp plan. They already account for
30% of its revenue and will generate 70% of its 2024-2027
growth. Veolia will allocate half of its growth investments to
these activities, i.e. €2 billion, as much as for all the
activities in the previous strategic plan. The GreenUp boosters
are:
- Decarbonizing local energy, through bioenergies, energy
efficiency in buildings and industries, and electrical
flexibility,
- Water technologies and new solutions to preserve water
resources and treat new pollutants,
- Hazardous waste treatment, to treat the most toxic and
harmful elements to protect ecosystems and public health.
Already a leading player in the research and development of
environmental solutions, with 14 research centres around the world,
the Group is going to significantly step up its investment in
innovation with an additional €200m to design the technologies
of the future.
Veolia also plans to increase the efficiency gains offered by
digital technology and artificial intelligence as part of its
annual savings plan, to optimise its customers' water and energy
consumption as well as waste sorting and recycling and strengthen
predictive maintenance.
Strongholds
The acceleration of GreenUp will rely on the Group's core
businesses, the soil on which these boosters can grow. They account
for 70% of Veolia's activity today and will continue to fuel its
growth, representing 30% by 2027 with €2 billion of investment as
part of the plan.
These are the robust foundations of essential services to the
territories or to industry, often comparable to infrastructures.
For these activities, such as heating networks, municipal water and
solid waste management, Veolia is working to maintain its
operational excellence and pursue its innovation efforts.
▁▁▁
ABOUT VEOLIA
Veolia's ambition is to become the benchmark company for
ecological transformation. With nearly 218,000 employees on five
continents, the Group designs and deploys useful, practical
solutions for managing water, waste and energy that help to
radically change the world. Through its three complementary
activities, Veolia contributes to developing access to resources,
preserving available resources and renewing them. In 2023, the
Veolia group served 113 million people with drinking water and 103
million with wastewater services, produced 42 terawatt-hours of
energy and recovered 63 million metric tons of waste. Veolia
Environnement (Paris Euronext: VIE) generated consolidated sales of
€45.3 billion in 2023. www.veolia.com
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1 excluding energy costs 2 at constant exchange rates 3 The aim
of introducing a scope 4 indicator is to measure and recognize the
ecological transformation and, in particular, the decarbonization
of industrial and economic activities. Scope 4 avoided emissions,
which quantify the CO2 that would have been emitted into the
atmosphere, corresponding to the positive impact of the
decarbonization solutions implemented. Complementary to scopes 1, 2
and 3, scope 4 will enable us to steer economic, financial and
regulatory decisions towards genuine global and collective
decarbonization of the planet.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240229825768/en/
GROUP MEDIA RELATIONS Laurent Obadia - Evgeniya
Mazalova Anna Beaubatie - Aurélien Sarrosquy
Tel.+ 33 (0) 1 85 57 86 25 presse.groupe@veolia.com
INVESTORS RELATIONS Ronald Wasylec - Ariane de
Lamaze
Tel. +33 (0) 1 85 57 84 76 investor-relations@veolia.com
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