Creative Solutions for our Environment Water and Energy – Currents of Molecules and Electrons Your Name Veolia Water North America June 2010 Edwin Pinero Executive Vice President and Chief Sustainability Officer Veolia Water North America 1

The benchmark standard for professional water services Managing water and wastewater services for public authorities and industry Designing technological solutions and building and managing the facilities and systems required to deliver these services Construction, rehabilitation and maintenance of networks and associated infrastructure 2009 Revenue $18.1 billion 95,000 employees Drinking water services to 95 million people Wastewater services to 68 million people Facilities managed +5,260 water +3,220 wastewater

The View from the “Water Company” We are a water resource management company We consume energy and generate GHG in providing water services We operate under the three pillars of sustainability (economy, environment, social/quality of life) Water and energy are integral to all of the three pillars Therefore water and energy sustainability is not part of our business…it IS our business

Water-Energy Nexus Already an overused term Very encompassing It takes water to make energy, it takes energy to care for water Climate and energy actions and policies have water-related implications Most “carbon friendly” or “energy friendly” options are NOT necessarily most “water friendly” options- trade offs required Sectors do not communicate well Need more strategic approaches (co-locating, EE, WE) But the energy-water nexus is part of the broader water-energy-growth nexus

Finding the path to sustainability What is one of the world’s main challenges? Finding the path to sustainability 5 5

Research by the International Food Policy Research Institute and Veolia Water The impact of water scarcity not just on people, energy, and food supply but on the economy– now and in 2050!

Severe water scarcity = unsustainable withdrawals Moderate stress (< 20%) “Safe” withdrawals less than 20% of internal renewable water resources Generally avoids local environmental impacts <20% 20 - 40% > 40% Water stress (20 - 40%) Stress apparent during drought periods and with water quality impacts of water use Some transport of water within the region required to meet demand Water Stress Index Total withdrawals as share of internal renewable water resources Water-scarce (> 40%) - "at risk" Large spatial variability of demand results in "unsustainable“ withdrawals within river basin Local impacts of over-extractions more common Water stress: water use in excess of 40 percent of available resources, at river basin and country levels, where water scarcity puts economic development and food production at risk.

Four megatrend global scenarios developed and projected

2 Already, water-scarce regions account for 36% of global population (2.5 Bn) and $9.4 trillion (22%) of global GDP 2010 How many people live in water short areas (%)? Water stress, percent of total renewable water withdrawn > 50 < 20 20 - 30 30 - 40 40 - 50 No data 0 - 20% 46 20 - 40% 18 2.5 Bn people > 40% 36 2010 How much GDP is generated in water scarce regions (%)? 0 - 20% 59 20 - 40% 19 9.4 trillion USD2 > 40% 22 2010 1 >40% water stress 2 Year 2000 prices 9 9

Under business-as-usual water productivity and medium growth, 52% of population and 45% of GDP are in regions at risk due to water stress Business as usual (BAU) water productivity, medium growth, 2050 How many people live in water short areas? 4.7 Bn people, 70% of 2010 pop. Increase by 90% compared to 2010 Water stress, percent of total renewable water withdrawn < 20 20 - 30 No data > 50 30 - 40 40 - 50 32 46 16 18 52 36 2010 2050 How much GDP is generated in water scarce regions? 63 trillion USD2 1.5 x 2010 total GDP Increase by 570% compared to 2010 30 59 25 19 45 22 2010 2050 1 >40% water stress 2 Year 2000 prices 10 10

In a blue world, water stress can be substantially reduced, with ~1 billion people and $17 trillion2 GDP coming from less water scarce areas1 "Blue" high-productivity scenario medium growth, 2050 How many people live in water short areas? Water stress, percent of total renewable water withdrawn > 50 < 20 20 - 30 30 - 40 40 - 50 No data Decrease of 11% to BAU 1 Bn peo-ple in less scarce regions 32 38 16 21 52 41 2050-BAU 2050- Blue How much GDP is generated in water scarce regions? Decrease 12% com-pared to 2010 17,000 Bn USD2 in less scarce regions 30 38 25 28 45 33 2050-BAU 2050- Blue 1 >40% water stress 2 Based on year 2000 prices 11 11

Grey High-Growth Scenario – 2010

Grey High-Growth Scenario – 2030

Grey High-Growth Scenario – 2050

Blue High-Growth Scenario – 2010

Blue High-Growth Scenario – 2030

Blue High-Growth Scenario – 2050

Raising awareness (Growing Blue, www.growingblue.com) What can be done? Raising awareness (Growing Blue, www.growingblue.com) Reducing energy use Managing carbon footprint Promoting energy management Applying innovative business models

Thank you for the discussion!