GreenUp: Veolia launches its new strategic plan to accelerate ecological transformation to meet growing global demand

GreenUp 2024-2027

"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 4 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.