Climate Policy Engagement Analysis
Climate Policy Engagement Overview: Veolia is strategically engaged on various climate change policy streams in the EU. The company broadly supports urgent climate action and government regulation in its top-line messaging, but takes more nuanced positions on specific climate regulations. Veolia expressed broad support for the energy transition, but seemed to engage with more negative positions via public consultations.
Top-line Messaging on Climate Policy: Veolia’s top-line messaging on climate policy is clearly supportive of ambitious action. The company stated support for GHG emissions reductions in line with 1.5 °C on its corporate website accessed in April 2023. In a May 2022 joint letter, Veolia’s CEO Antoine Frérot, advocated for a more ambitious Fit for 55 package in order for the European Union to achieve its net-zero target by 2050, and appeared to support a wide range of policies to combat climate change in France, in the US and in China as well, in its 2021-22 Integrated report published in June 2022. In an October 2021 press release, Veolia also stated support for the UNFCCC process to limit global warming below 1.5 °C.
Engagement with Climate-Related Regulations: Veolia stated top-line support for a number of climate-related policies in the EU via open letters and media releases in 2021-23, but appears to have more mixed positions in direct engagement with policymakers.
In a joint letter to EU President Ursula von der Leyen in May 2022, the company called for a more ambitious reform of the EU Emissions Trading System, as well as stronger provisions in the Renewable Energy Directive (RED) reform. Veolia consistently strongly supported more ambitious energy efficiency legislation, for example, in anopen letter in May 2022,through the Energy Efficiency Directive (EED), the Renovation Wave and Energy Performance of Buildings Directive (EPBD). Veolia also supported a Renovation passport for buildings and mandatory minimum energy performance standards in a feedback comment to the EU Commission on the revision of the EU EPBD in March 2022.
Veolia adopted more mixed positions in direct advocacy with the EU Commission. On the EU Emissions Trading System reform, Veolia seemed to not support a reduced number of free allowances or indirect compensation costs in the EU ETS in a February 2021 EU public consultation response. In a November 2021 public consultation response comment on the EU EED reform, the company appeared to advocate for allowing the energy savings obligation to continue to include combustion technologies, including fossil gas, in the residential heating and buildings sector.
Veolia supported renewable energy targets under the revision of the RED in a November 2021 comment to policymakers, however the company also advocated in a public consultation response from February 2021 for limited improvements to the bioenergy sustainability criteria and for the inclusion of low-carbon fuels in overall and sectoral targets. The company supported increased GHG emissions reductions targets under the EU Effort Sharing Regulation in a public consultation response in February 2021, yet advocated against the inclusion of GHG emissions in the EU Industrial Emissions Directive in a June 2022 comment to policymakers.
Positioning on Energy Transition: Veolia engaged on the energy transition with predominantly negative positions on key policies. According to the company’s 2022 CDP response, the company appeared to promote the role of fossil gas, in particular through cogeneration, to support the transition away from coal, calling for its inclusion in the EU Taxonomy. Furthermore, Veolia repeatedly called for tax exemptions for heavy industries, for example in feedback to policymakers on the revision of the Energy Taxation Directive (ETD) in November 2021, supporting exemptions for high efficiency co-generation and for renewable fuels of non-biological origin (RFNBOs). However, Veolia’s CEO signed a May 2022 joint letter supporting a move-away from fossil fuels and advocating for the decarbonization of transport and industry, and for regulatory measures to transition to low-carbon technologies and infrastructure, including an ambitious revision of the ETD.
Industry Association Governance: Veolia has disclosed on most of its indirect climate policy engagement activities, stating industry association memberships with additional information on company's role, position alignment and accounts of industry associations engagements on climate policy, via its 2022 CDP Climate Change disclosure. Veolia does not disclose its involvement with industry associations that are influencing climate policy on its corporate website, accessed in April 2023, and has not published a review of its alignment with industry associations. The company is a direct member of BusinessEurope, which has predominantly opposed EU climate policy ambition since 2018.