UNITED WATER SUSTAINABLE DEVELOPMENT REPORT 2011 COMMITMENTS AND PERFORMANCE UNITED WATER 200 OLD HOOK ROAD HARRINGTON PARK, NJ 07640 TEL 201-767-9300 FAX 201-767-2082 EMAIL Bob.Iacullo@UnitedWater.com WWW.UNITEDWATER.COM June 4, 2012 Dear Colleagues, At United Water, we truly believe that making the planet sustainable is the best job on earth. As we witness the effects of climate change, urbanization and population growth, we see that our water resources are becoming more stressed and more precious each day. We embrace our responsibility to help protect natural resources and our nation’s waterways while providing safe, clean water to our customers. We consider it a privilege to address these challenges alongside our customers as we provide them with leading edge, long-term, sustainable solutions. United Water has launched a strategy for Sustainable Development which is based on four priorities and 12 commitments and links respect for the environment, social equality and economic performance together. By focusing on this strategy, we can preserve natural resources, create innovative solutions, inspire our employees and strengthen partnerships with our stakeholders. This report demonstrates how United Water is putting its Sustainable Development strategy into action. It includes examples of best practices from across United Water’s business lines and demonstrates our accomplishments on the 12 commitments during the 2011 calendar year. Working together, we can develop sustainable solutions today that improve the quality of life in the communities we serve and leave the planet in better shape for those who will inherit it tomorrow. Sincerely, Bob Iacullo President, United Water SUSTAINABLE DEVELOPMENT REPORT 2011 COMMITMENTS AND PERFORMANCE PAGE 1 SUSTAINABLE DEVELOPMENT REPORT 2011 COMMITMENTS AND PERFORMANCE At the core of United Water’s business is our commitment to provide services that are essential for people’s lives, their health and for an uncompromising level of environmental protection in water and wastewater management. Providing superior drinking water and treating wastewater to protect our community’s waterways are services essential to the well-being of people. To ensure a sensible balance between development and non-renewable natural resources, United Water strives to maintain natural balances by protecting rivers, soil, aquifers and oceans. We achieve these objectives by respecting land use and biodiversity; preserving resources and reducing greenhouse gas emissions in the atmosphere. Our goal is to be a trusted community partner and to provide innovative solutions that protect the planet and our most valuable resource - water. At United Water, we conduct our business better by taking action to meet or exceed the expectations of our stakeholders by: Addressing head-on new challenges in our management of water and wastewater to protect natural resources and the environment Managing responsibly the byproducts of our business activities and actively promoting recycling Reducing environmental impact through energy efficiencies and the reduction of greenhouse gas emissions Promoting the development of our employees through training and the promotion of a diversified staff Engaging our stakeholders and building upon our longstanding tradition of participating in the social and economic life of the communities in which we live and work Living up to our commitment of promoting transparency in our work, to support sustainable development through publication of an annual report and providing relevant information available on our website Natural resources are finite. United Water is committed to the daily challenge of protecting resources and the environment by providing innovative solutions to millions of people in the communities that we serve GOVERNANCE United Water’s Sustainable Development Department is under the supervision of the Senior Vice President, Operations Support. The Steering Committee meets twice a year and is composed of United Water’s executive management staff, including Bertrand Camus, CEO; Bob Iacullo, President; Charlie Wall, Senior Vice President Human Resources & Communications; Patrick Cairo, Senior Vice President, Commercial Development; Philippe Dartienne, CFO; Dennis Ciemniecki, President, Regulated Segment; Nadine Leslie, President, Environmental Services Segment. The Steering Committee is tasked with monitoring our progress, approving goals and communicating the Sustainable Development initiatives to United Water’s Board of Directors yearly. SUSTAINABLE DEVELOPMENT REPORT 2011 COMMITMENTS AND PERFORMANCE PAGE 2 COMPANY PROFILE United Water is a subsidiary of SUEZ ENVIRONNEMENT NORTH AMERICA (SENA). With 80,410 employees and a worldwide presence, SUEZ ENVIRONNEMENT is proud to be recognized as an international environmental leader. United Water’s Strategic Plan includes a corporate mission, vision and values, which are incorporated into our Sustainable Development strategy as well as our business practices. Our Mission We provide innovative water and waste management solutions that improve the quality of life in the communities we serve. Our Vision We will be among the top two companies in each market we currently serve by 2015. Our Values Drive Commitment Courage Unity Integrity United Water at a Glance 5.7 million Population provided efficient water and wastewater services 7.7% Employee turnover 1.8 billion Gallons of water treated daily $800 million Annual revenue 20 utilities Owned and managed by the Regulated business segment 100 plants Managed as public-private partnerships by the Environmental Services business segment Awards Numerous industry, environmental, community and civic awards bestowed every year 2,300 Employees working to make the planet more sustainable SUSTAINABLE DEVELOPMENT REPORT 2011 COMMITMENTS AND PERFORMANCE A SUSTAINABLE DEVELOPMENT POLICY FOCUSED ON 4 PRIORITIES AND 12 COMMITMENTS United Water operates as a socially responsible company and maintains an aggressive continuous improvement program based on the four main priorities and 12 commitments that are set forth in our Sustainable Development Policy. United Water utilizes a strategy based upon the triple bottom line. Our commitments are focused on economic growth, social equality and respect for the environment, in addition to creating and maintaining a dialogue with our stakeholders. This approach allows United Water to be forward thinking and demonstrate that we understand what we want to achieve, and how to achieve it. Our strategy incorporates sustainable business practices with United Water’s values, and these commitments allow us to maintain economic growth while protecting the environment and our employees. In fact, our Sustainable Development Policy goes beyond meeting regulatory and contractual obligations to incorporate economic, ethical, governance, environmental and social responsibilities. Furthermore, our long standing dedication to technology, research and innovation, has allowed United Water to provide a proven record of comprehensive water and wastewater solutions. We are an environmental company with a history of sustainable practices and values that are having an undeniable impact on our employees, the environment, water resources, our customers and the communities we serve. PAGE 3 SUSTAINABLE DEVELOPMENT REPORT 2011 COMMITMENTS AND PERFORMANCE PAGE 4 Created an in-house Commitments & Performance Report Publication of the first external Commitments & Performance Report 2012 Established 2009 baseline data for 12 Commitments 2011 Publication of the 4 Priorities & 12 Commitments 2010 Deployment of the Sustainable Development Roadmap 2008 Launch of the Sustainable Development Policy 2006 2005 Figure 1: United Water's commitment to Sustainable Development began in 2005 as a fundamental strategy in our business ETHICS United Water maintains a written Ethics Policy that is derived from the SUEZ ENVIRONNEMENT Ethics Charter. The Ethics Policy is available to all employees on unitedwater.com and is also available to the public, clients, partners, suppliers and vendors. By publishing the Ethics Charter in 2010 and the implementation guide Ethics in Practice, United Water formally committed itself to principles widely known and respected within United Water organization. United Water’s Ethics Officer, Robert Gerber, Senior Vice President and General Counsel, is a member of the Executive Management Team. He also chairs the Ethics Committee, which maintains a 24-hour-a-day, seven-days-a-week toll-free number which encourages employees to contact and bring ethics and human rights matters to the immediate attention of the Ethics Committee. Employees can raise questions, seek information and report concerns anonymously. The Ethics Committee reports to the Audit Committee of the United Water Board of Directors. Figure 2: Ethics training, practices and standards such as the "Ethics Charter" help our employees put ethical behavior at the forefront United Water has instituted and maintains ongoing education and training designed to inform employees of applicable laws, regulations and standards of business conduct; their expected ethical conduct and the consequences of a violation, both to the employee and United Water. Training is provided through an e-learning ethics portal, most recently to 1400 employees, including all managerial employees. The ethics course covers topics such as ethical decision making, improper gifts and gratuities, conflicts of interest, vendor relationships, fraud and confidentiality. It reinforces the need for communication regarding the United Water Ethics Program and how employees can report misconduct. All new employees receive information regarding the Ethics Policy, other components of the program and take the e-learning ethics course. United Water is committed to full compliance with employee anti-retaliation and whistleblower laws. SUSTAINABLE DEVELOPMENT REPORT 2011 COMMITMENTS AND PERFORMANCE RESPECTING HUMAN RIGHTS United Water and SUEZ ENVIRONNEMENT share a culture of commitment toward human rights, a respect for human dignity, the fight against corruption and environmental conservation. This culture has driven United Water to uphold ethical principles that often go beyond the scope of just the laws and regulations applicable to our business. Another fundamental ethical principle to which we have committed ourselves is the respect for others. Employees are encouraged to consider the impact of their actions and decisions on others and not to tolerate or perpetrate any form of discrimination, with respect to age, gender, ethnic, social or cultural origins, faith, political or trade union views, personal life choices, physical characteristics or disabilities of others. One example of United Water’s respect for human dignity is recognizing that occasionally a financial crisis or setback, due to a job loss, illness, casualty or military service can happen to anyone, even the most fortunate among us. UW Cares is a nonprofit organization, funded entirely by United Water that provides financial assistance to customers having trouble paying their water bill. UW Cares provides grants to pay the water bills of households in need through a network of community-based social service agencies located throughout the United Water service territories. UW Cares ensures that funds are distributed Figure 3: UW Cares brings fairly and appropriately to eligible households. A link to our water service to financially program can be found on our website, unitedwater.com. disadvantaged households PAGE 5 SUSTAINABLE DEVELOPMENT REPORT 2011 COMMITMENTS AND PERFORMANCE PAGE 6 ENVIRONMENTAL COMPLIANCE At United Water, we care deeply about the environment and our Environmental Charter serves as a daily reminder to our employees and the public of our commitment to protecting and sustaining the earth’s natural resources. United Water’s Environmental Compliance Assurance Program serves as the Company’s environmental management system and consists of an array of corporate policies, procedures, controls and expectations that The Compliance & help to ensure environmental protection while providing Enforcement Division exceptional customer service. We continuously strive to find of the New Jersey Department of ways to improve our compliance efforts, which includes a Environmental Protection commitment to greater transparency in our governance structures awarded United Water and the ways in which we operate. Matchaponix the 2011 Environmental Stewardship Award for the full development of an Environmental Management System The Company’s extraordinary compliance record has been achieved through a top-down commitment by our executive and senior management, and extends throughout our organization to every treatment facility. Whether it involves operating our own water systems or working with clients to operate their systems, United Water has a singular goal – 100% compliance each and every day. To achieve these goals, the priorities include: Providing compliance awareness and training Offering tools management Ensuring rigorous self-evaluation through the compliance audit program Holding our operations compliance performance for effective information accountable for Protecting the environment is at the heart of our business. Good environmental performance is a key component of sound business performance and provides many benefits for our customers, our Figure 4: United Water's partners and our communities. Environmental Charter is our commitment to protecting the environment and sustaining the earth's natural resources SUSTAINABLE DEVELOPMENT REPORT 2011 COMMITMENTS AND PERFORMANCE 2011 REPORT AND OUTLOOK ON PROGRESS PRIORITY: CONSERVE RESOURCES & ENGAGE IN A CIRCULAR ECONOMY Today we are aware that natural resources are limited, yet the demand is increasing. We use more fossil fuel than ever before. Fresh water, an essential resource, is scarce in many areas of the United States. Using resources more efficiently, generating less waste and creating new energy sources are necessary to continue economic growth and to ensure resources are available for future generations. COMMITMENT 1: REDUCE, REUSE, RECYCLE United Water is committed to the principles of Reduce, Reuse and Recycle. There are numerous opportunities to reduce waste and increase the proportion of materials that are reused and recycled in both the workplace and in our households. It is our goal to reduce, reuse and recycle materials used in our business and operations, such as paper, electronics, bulbs, metal, construction materials, glass and batteries. Beyond our “SUEZ ENVIRONNEMENT operations, this commitment to reduce, reuse and recycle also is the only world player applies to natural resources we draw upon and supply to our exclusively dedicated to the customers. Water is our core business; it is a precious, lifeenvironment. Its business sustaining resource that must not be wasted and should be anticipates tomorrow’s world conserved or reused whenever possible. At United Water, our by developing circular economic solutions." commitment is demonstrated through our promotion of water conservation, protection and preservation of the groundwater, — Jean-Louis Chaussade, lakes and rivers we draw upon, and the promotion of alternative CEO, SUEZ ENVIRONNEMENT resource use (e.g., the reuse of treated wastewater for irrigation and industrial purposes). Best Practices New York Conservation Success In 1992, United Water began a formal customer based conservation program at its large water utility located just northwest of New York City. This innovative program offers customer education initiatives, including making low-flow devices available to residential customers at discounted prices. United Water promotes residential leak reduction, sensible irrigation and other conservation strategies. Educational tools include bill inserts, print and broadcast ads, public events, presentations, and a dedicated conservation website. Building on this program, United Water New York began publishing an “Annual Conservation Guide” in the local newspaper in 2007. This guide summarizes common water use reduction practices that residential customers can implement. This important information is also available electronically to anyone via the website at unitedwater.com. As a result of these combined conservation initiatives, United Water PAGE 7 SUSTAINABLE DEVELOPMENT REPORT 2011 COMMITMENTS AND PERFORMANCE PAGE 8 customers at its New York utility consume an average of 67 gallons per capita per day - well below the national average of 90-100 gallons per capita per day. Among the recommendations in these publications are tips for reducing outdoor water use and xeriscaping (conservation gardening). The xeriscaping program is based on the selection of locally appropriate plantings and horticultural irrigation techniques that make the best use of water. Water use for landscaping can also be reduced Smart Watering & by following a scientific lawn watering program based United Water New York on EvapoTranspiration (ET). United Water monitors and disseminates information on regional ET rates. United Water successfully designed and implemented the ET This information helps avoid overwatering and guides (evapotranspiration) lawn watering customers to apply the right amount of water to program to support effective lawn landscaping based on the weather conditions. watering. The ET concept was developed in partnership with Cornell and Rutgers Universities. Daily watering advice is provided to customers via our website and a phone messaging system. Based on customer response and conservation impact, the program was rolled out to other operations in the Northeast Furthermore, United Water is partnered with AM Conservation to provide the water-saving kits at a nominal cost. Indoor kits include a toilet dam, lowflow nozzles and showerheads and a shower timer. Outdoor kits include a hose timer, moisture meter, a rain gauge and a low-flow hose nozzle. Several thousand kits have been purchased by United Water customers over the past few years. United Water Idaho TOMS Projects United Water Idaho manages over 250 wells, boosters, reservoirs and pressure regulating stations distributed throughout a 150 square mile area. Facilities are checked using seven driving routes and two readers each week. Routine facility operations data needs to be captured accurately and efficiently before timely distribution to the users and managers. Tablet PC Operations Management System (TOMS), a paperless tablet PC operations management system, has achieved this objective and proven to be an effective, low cost solution using commonly available software and hardware. United Water Idaho was a first place winner in the large utility division of the Pacific Northwest Section of the American Water Works Association’s Excellence in Communication and Conservation Awards for the summer Conservation Guide TOMS allows large quantities of field operations data to be gathered and summarized at the end of Figure 5: Readings are each shift. Field operations input directly into the data such as meter readings, TOMS paperless tablet tank levels, safety conditions, motor efficiencies and compliance sampling are gathered electronically, synched with a desktop computer and used to SUSTAINABLE DEVELOPMENT REPORT 2011 COMMITMENTS AND PERFORMANCE PAGE 9 populate operations and management templates. This data is available to all users in the business unit and helps to make accurate and informed operational decisions. The implementation of TOMS has resulted in the following benefits and cost savings: Faster and more efficient data availability Improved chemical and inventory tracking and control Faster and more efficient report generation Improved accuracy of data Elimination of manual data entry and report generation resulting in labor reduction Reduction in driven mileage due to fewer repeat trips saving gas, vehicle maintenance and emissions Reduction in paper usage saving trees and landfill space During the past two years, the Indianapolis Wastewater Treatment plant has saved approximately 200 trees through their Shred It paper recycling program. They have also recycled approximately 8 tons of cardboard and 13 tons of plastic, aluminum and paper COMMITMENT 2: MANAGE WATER EFFICIENCY Drinking water is a precious resource. As United Water strives to deliver safe drinking water and control water loss, we also face challenges such as the availability and management of water resources, adaptation to and mitigation of climate change, the capital intensive nature of water production, population growth, drought management and increasing regulatory requirements in various areas of the country we serve. For this reason, United Water is dedicated to the management of water efficiency and the sustainable use of water. While a Figure 6: United Water repairing a focus on leak reduction can help in many of these leak in the distribution system areas, it will not address all. United Water is using an integrated approach to manage water resources and diversifying our water portfolio. By using a combination of solutions such as groundwater, surface water, conservation efforts, leak reduction, Drought Management Programs and technologies such as desalination and water reuse, we are able to create innovative solutions and protect our most precious resource. United Water is a proud sponsor of WaterSense, the United States Environmental Protection Agency’s program to encourage water efficiency through the use of a special label on consumer products United Water strives to reduce water loss associated with aging infrastructure by developing controls to identify and minimize losses while delivering safe drinking water to our customers. Understanding where water is lost in buried pipes requires an integrated approach to focus, locate and fix underground leaks. This begins with an audit of our systems to prioritize our efforts. SUSTAINABLE DEVELOPMENT REPORT 2011 COMMITMENTS AND PERFORMANCE We conduct an annual water balance using the American Water Works Association Water Loss Control Water Audit as the standard audit methodology. In addition, we perform area specific leak surveys, deploy acoustic-based technologies, assess pipe condition, test and calibrate meters, review and audit meters and billing for abnormal consumption, employ pressure management strategies, enhance hydrant security and prepare and implement action plans. Integrating the management of water loss and water resources creates a holistic approach to water efficiency and the growing water scarcity concerns. United Water is creating innovative solutions to promote water efficiency and introducing services that help to save water and diversify our water portfolio. Best Practices United Water New Jersey Manages Water Loss United Water New Jersey has been working to accurately detect and locate leaks in large diameter water mains and sections of pipe that did not have available appurtenances. To improve water conservation and reduce water loss, the company began evaluating leak detection services with the ability to accurately isolate leaks on large diameter mains. To accomplish that goal, we selected a leading developer of acoustic-based technologies for water loss management, leak detection and pipe condition assessment, for a pilot survey. Our objective was to assess approximately five miles of Figure 7: United Water New Jersey large water mains. using electromagnetic leak detection equipment Through the use of acoustic sensors, we detected a major leak on a 42-inch water main in a section of pipe that ran beneath a river in the pilot area. The leak was responsible for the loss of an estimated 100,000 gallons of treated water per day. As a result, United Water was able to quickly repair the leak without the need to disrupt service thus avoiding potential failure and providing immediate savings of water loss. We also were able to inspect the pipe and make several repairs that would prevent further leaks on this critical main. United Water New Jersey has a comprehensive water loss management program to proactively monitor leaks in the distribution system. We are using the latest technologies for leak detection such as electromagnetic and sonic/ultrasonic equipment. One supplementary water loss solution is a survey program where inspectors perform leak surveys throughout the entire system twice per year during normal system maintenance such as valve and hydrant testing, field investigations and repairs. In 2011, approximately 72% of the 2,100 miles of transmission and distribution piping were surveyed under the annual program. PAGE 10 SUSTAINABLE DEVELOPMENT REPORT 2011 COMMITMENTS AND PERFORMANCE Innovation on the Hudson River Innovation will help quench the growing thirst for water in Rockland County, NY. The community’s conservation practices are among the best in the nation, but water demand is projected to outpace current supply by 2016. The county United Water New York’s population increased nearly nine percent in the last decade and surface water treatment additional growth is expected. That’s why United Water New plant Lake DeForest has York is taking an innovative approach to develop an additional, ISO 14001 and 9001 sustainable supply to meet the county’s growing water needs. certifications The Haverstraw Water Supply Project (HWSP), designed to treat brackish water from the Hudson River, will use a multi-step process, including reverse osmosis to remove salt, organic compounds and more. A pilot study on treating Hudson River water has been underway for over a year and the findings are exciting. The pilot facility is consistently producing water of equal or higher quality than Rockland County residents are consuming today. Figure 8: The HWSP treatment scheme provides diversity to the water supply These positive study results are being used to help design a full-sized plant capable of producing up to 7.5 million gallons of drinking water per day. A mature river with an abundant water supply, the Hudson can help resist droughts and regional climate change. Adding this water source will improve the reliability and diversity of United Water New York’s water supply portfolio, which currently consists of 70 percent groundwater and 30 percent surface water. Studies have shown that the HWSP is more cost-effective than alternatives such as wastewater reuse or building a new reservoir. The new facility will also preserve natural resources and address sensitive environmental issues. Best of all, the HWSP will help ensure a reliable source of great tasting water for our customers. See more information on the HWSP at www.haverstrawwatersupplyproject.com. PAGE 11 SUSTAINABLE DEVELOPMENT REPORT 2011 COMMITMENTS AND PERFORMANCE Smart Metering Pilot Study United Water is transforming its water distribution systems into smart metering grids. Smart metering grids provide informational awareness of the water system operations such as precisely how much water is coming from the plants, how much water flows into regional distribution zones and ultimately how much is consumed by the customers. At United Water New Jersey, many meters are read via Automated Meter Reading (AMR) mobile reading systems. Transmitters are installed on customers’ meters which broadcast their consumption data to truck-mounted and hand-held collectors which periodically travel through neighborhoods to collect the readings. As part of a smart metering pilot, United Water is installing Advanced Metering Infrastructure (AMI) collectors which are backpack-sized metal cabinets with antennas. This enables consumption data to be Figure 9: AMI pilot installation gathered from every meter on a daily basis and stored in a central server as opposed to quarterly drive-by mobile readings. AMI improves water loss efforts by enabling better detection of tampering, theft and under-registering meters. New sensors and devices are constantly being added to AMI networks, such as permanent acoustic leak detectors which can help pinpoint the location of leaks in near-real-time. The results of the pilot have demonstrated that business efficiency increases with AMI as it dramatically decreases the cost of individual reads, allows easier high and low consumption investigations and can reduce complaints and theft. Customer benefits include detailed real-time consumption information via a website and proactive notifications of customer-side leaks. Figure 10: AMI networks improve water loss and provide near-real- time data collection PAGE 12 SUSTAINABLE DEVELOPMENT REPORT 2011 COMMITMENTS AND PERFORMANCE PRIORITY: INNOVATE TO RESPOND TO ENVIRONMENTAL CHALLENGES Combating climate change, increasing energy efficiency, producing renewable energy when feasible and preserving ecosystems are requirements for a socially responsible company. Consistent with meeting these environmental challenges, our mission at United Water is to provide innovative water and wastewater management solutions that improve the quality of life in the communities we serve. United Water’s Corporate Headquarters in Harrington Park, NJ is greening their workplace. During 2011, a pilot study was conducted to improve lighting illumination and efficiency. Light levels were increased in some work areas in addition to piloting high efficiency LED lighting, occupancy sensors and daylighting. The pilot also included a proactive program encouraging employees to shut down computers at the end of each day. COMMITMENT 3: REDUCE GREENHOUSE GAS (GHG) EMISSIONS United Water is committed to a comprehensive strategy of adaptation, mitigation, research and education to anticipate and react to the impacts of climate change. We strive to combat climate change through the introduction and deployment of both operational and energy efficiency measures. While working in an energy intensive industry, we recognize the link between water and energy and we work to conserve both. Energy efficiencies deployed throughout the company will help to reduce our GHG emissions while also helping to combat climate change. United Water has made it our goal to establish a framework for action against climate change that can be shared throughout our business segments and within the communities we serve. We plan to respond and adapt to the effects of climate change and provide innovative solutions to address operations and maintenance efficiencies, energy and water conservation, renewable energy, water resource management and crisis management. Approximately 95% of United Water’s GHG emissions are Using high-efficiency hand dryers instead of paper towels generated through the use of electrical energy. We promote at United Water’s Corporate energy efficiencies throughout the operation of the Headquarters will save two treatment facilities to the distribution and collection of metric tons of greenhouse gas water and wastewater in our service areas. In addition, we (CO2e) emissions and 16 cubic encourage purchasing Energy Star rated equipment in our meters of trash each year administrative offices for computers, laptops, printers and copiers. As we continue to strive to reduce energy consumption, our efforts have effectively reduced our GHG emissions over the past three years. PAGE 13 SUSTAINABLE DEVELOPMENT REPORT 2011 COMMITMENTS AND PERFORMANCE PAGE 14 Best Practices Springfield, MA Energy Savings United Water’s partnership in Springfield, MA has made a constant effort to reduce energy consumption and greenhouse gas emission. Over the past few years, their electricity and natural gas consumption has dropped by 21% and 68% respectively, which has reduced their greenhouse gas emissions as well. For example, operations protocol was changed for solids processing and disposal procedures at its wastewater treatment plant. In the dewatering operations, the belt filter presses were eliminated and centrifuges were purchased. Springfield also shut down its dryer and stopped transporting biosolids to a compost facility. Instead, the dewatered biosolids are taken directly to a landfill where they generate useful biofuel. Those efforts reduced the energy usage of the facility by 49% and greenhouse gas (CO2e) emissions by 39% at the plant site, saving $650,000 annually. Figure 11: Through innovative solutions, United Water Springfield, MA reduced energy consumption by 49% Springfield further reduced their electrical consumption by replacing older, inefficient blowers with newer, high efficiency turbo blowers and by optimizing the aeration system and reducing the dissolved oxygen set point. Additionally, they replaced fluorescent and sodium vapor lighting with new efficient fluorescent bulbs, ballasts, reflectors and LED lighting. These projects resulted in a 30% reduction in blower power usage and a 50% reduction of lighting power usage. Overall, the plants’ reductions in electricity and natural gas consumption have reduced their greenhouse gas (CO2e) emissions by 41%. In many of these examples, Springfield has received partial capital funding from the local electrical utility, which has helped to reduce the payback period. SUSTAINABLE DEVELOPMENT REPORT 2011 COMMITMENTS AND PERFORMANCE COMMITMENT 4: IMPROVE ENERGY EFFICIENCY Improving energy efficiency is a major challenge for United Water and our customers -- and the stakes are economic as well as environmental. Reducing energy consumption includes improving the efficiency of electricity, natural gas, various fuels, gasoline and diesel. This ranges across the spectrum of our energy use, from fleet management to the operation of the treatment facilities to the distribution and collection of water and wastewater in our service areas. United Water’s strategy for energy management includes a significant focus on conservation and optimization. Efforts United Water Arkansas has to improve energy consumption are ongoing and realized a 10% reduction in electrical power (MW/MG) by accomplished by conducting energy audits and improving installing high efficiency, pump efficiency, lighting, aeration systems and fleet motors, more efficient pumps, efficiency. In 2010, we established an Energy Task Force to changing starters on motors provide oversight and expertise into energy audits, creating and diverting flow to action plans for energy reductions, establishing alternative their most energy efficient treatment plant purchasing and financing means and sharing of the latest tools and technologies. The task force has focused on the top 10 users of energy across the company and the following actions to further reduce energy consumption: Upgrade to high efficiency pumps and motors, off peak pumping Optimize aeration systems Lighting and sensors, ventilation and controls Improve fleet efficiency through training, idling reduction, routing and alternative fuel Best Practices A New Approach to Pump Efficiency Testing in Boise, ID United Water Idaho operates more than 80 deep wells to supply water to the 84,600 customers in Boise, ID. Each of these wells is equipped with an electric motor that drives a submerged pump. The more efficient the pump and motor, the less electrical power consumed – and the lower the operating costs to both the Figure 9: LED screen displaying pump company and ultimately our customers. electrical power reading In 2009, United Water initiated a comprehensive program to assess the efficiency of well pump operations called wire-to-water efficiency. Motor efficiencies remain relatively constant over time, so losses in efficiency generally arise due to wear in the pumps as they age. The net effect is that more energy is needed to deliver the same amount of water. PAGE 15 SUSTAINABLE DEVELOPMENT REPORT 2011 COMMITMENTS AND PERFORMANCE United Water developed an operating procedure for pump efficiency testing that was safe and less time consuming than previous methods requiring opening the electrical panel door. The project was piloted and deployed initially on 10 well sites, which focused on monitoring the pumps with electric power data displays mounted on the exterior panel doors. The results of amperage, voltage and demand were displayed on small LED screens. The power monitors provided readings that were continuously updated and needed merely 90 seconds to fully cycle through the data. With these devices in place, the operator can obtain the raw data necessary for the pump efficiency calculation in only a few minutes. The immediate benefit from this change is that the data needed to perform wire-to-water pump efficiency testing is now readily available through metering devices and can be recorded by operators during their normal rounds in just a few minutes. Additional benefits include improved worker safety, the potential for automated analysis via SCADA, visible information to help prevent equipment damage and enhanced support for capital expenditure planning. After a year of operation, the annual savings from changing out three well pumps was $41,000 with a return on investment exceeding 20%. This represents a savings of about 2.2% of the total water production budget for electricity at our Boise facility. Based upon this success, United Water Idaho deployed power monitors at all active well sites beginning in 2010 and completed deployment in 2011. Nitrogen Removal in Stonington, CT United Water operates three wastewater treatment facilities for the Stonington Water Pollution Control Authority (SWPCA) under a public private partnership. The Connecticut Department of Energy and Environmental Protection (DEEP) established a general permit requiring each treatment facility to remove nitrogen and implemented a Nitrogen Credit Exchange Program, granting SWPCA a limited amount of nitrogen credits. The three plants were not designed to remove nitrogen, leaving SWPCA facing a capital upgrade or purchasing nitrogen credits under the DEEP Exchange Program. United Water believed that through operating the plant Figure 10: Laboratory testing in differently, the nitrogen limits and all other existing Stonington, CT permit limits could be met. United Water conducted a pilot study to maximize the aeration system and enhance the nutrient removal process. By alternating the blowers’ run time, carefully controlling dissolved oxygen (DO) levels to the aeration system and testing the nutrient levels, the operators were able to improve the efficiency of the nutrient removal process and achieve permit compliance. The pilot produced favorable results and was scaled up to the full operation. PAGE 16 SUSTAINABLE DEVELOPMENT REPORT 2011 COMMITMENTS AND PERFORMANCE Through optimization of the blowers at the three Stonington wastewater treatment facilities, United Water was able to achieve biological nutrient removal and save electricity without investing in capital improvements. This operational change, initiated by United Water, resulted in the following benefits to SWPCA: Eliminated the need for the consulting engineer to design or upgrade the three treatment plants which saved Stonington considerable capital. The engineering firm felt that upgrading the plant would not provide noticeable improvements compared to the nutrient removal efficiency achieved by United Water Under the Nitrogen Removal Program, Stonington will receive compensation for unused nitrogen credits SWPCA will now use capital investment dollars to upgrade the instrumentation and controls of the facilities, making automation of operational functions more efficient Not only did optimization of the aeration achieve enhanced biological nutrient removal, it also provided a 7% reduction in electrical power COMMITMENT 5: INCREASE AND PROMOTE RENEWABLE ENERGY GENERATION Renewable energy is a significant priority - and challenge - for In 2011, SUEZ United Water. In the United States, we rely on fossil fuels, ENVIRONNEMENT natural gas and oil all of which are finite resources. Renewable allocated $95,000,000 energy is energy generated from a natural resource such as for research, sunlight, wind, tides and geothermal heat. It is clean energy that technological development replenishes itself and has a much smaller environmental impact. and innovation Many of our sites are owned by our clients who are responsible for capital investments and the decision of whether or not to use renewable energy at their facilities. In our regulated business segment, where we own the assets, United Water is currently conducting studies to evaluate a feasible source of renewable energy. We are evaluating hydroelectric power, solar energy, power purchase agreements and other sources that can be supported by our customers. In addition, energy is an important component of the various research programs of SUEZ ENVIRONNEMENT, such as the R + i Alliance, www.ri-alliance.com. The various research centers of the group, including United Water Environment Research Center (United WERCs) are focused on energy efficiency and renewable energy projects such as removing contaminants from biogas in order to use it in fuel cells or inject it into the grid, or microalgae as green powerhouse of wastewater. PAGE 17 SUSTAINABLE DEVELOPMENT REPORT 2011 COMMITMENTS AND PERFORMANCE Best Practices United Water & West Basin Municipal Water District West Basin Municipal Water District (WBMWD), www.westbasin.org, is a world leader in water recycling, conservation, education and water resource management. United Water has had a partnership with WBMD for the past 17 years and is the operator of the Edward C. Little Water Recycling Facility (ECLWRF). WBMWD expanded its commitment to energy conservation and environmentally sound practices by completing the installation of a 60,000 square foot solar power generating system at the ECLWRF. The solar panels account for up to 10% of the facility's power demands, operating during peak demand hours and producing an estimated 783,000 kilowatt hours per year of solar energy. The overall output of the facility is enough energy to power nearly 100 homes for one year. In addition to reducing energy usage, solar power also reduces the emissions and wastes resulting from the use of fossil fuels for heating and electrical needs, improving the quality of our air, groundwater and plant life. West Basin's solar power generating system enables WBMWD to avoid the production of 420,000 Figure 11: Solar power generating system at ECLWRF pounds of greenhouse gas (CO2e) emissions annually. COMMITMENT 6: INCORPORATE BIODIVERSITY INTO SITE MANAGEMENT Biodiversity is defined as the diversity of plant and animal life within a given ecosystem. These organisms are naturally occurring in the region, but may be threatened by extinction. Biodiversity and related ecological services have now become important considerations in managing our treatment facilities. United Water’s primary business is offering water and wastewater treatment solutions that limit the physical, chemical and biological impact that human activities could have in the absence of treatment. We understand that we are an integral part of environmental protection and consequently biodiversity protection. Through its research and innovation, our parent company, SUEZ ENVIRONNEMENT is United Water Idaho is a winner of the American constantly improving the treatment technologies for the various Water Works Association effluents discharged back into the environment. The objective at Education Award for United Water is to protect biodiversity through site management Water Efficient and ensure that we have a positive impact on flora, fauna, lakes, Landscaping Classes streams, rivers and the creatures that inhabit our service areas. PAGE 18 SUSTAINABLE DEVELOPMENT REPORT 2011 COMMITMENTS AND PERFORMANCE PAGE 19 United Water is focused on understanding more fully the sites and surrounding areas in our service territories where threatened and endangered species may exist. A guidance document was prepared and distributed in early 2011 by the Sustainable Development and Environmental Compliance Departments to assist our teams in the field. Our goal is to create and implement action plans for the sites that we identify as “sensitive or protected.” In addition, voluntary, probiodiversity actions are encouraged on all sites whether sensitive or not. Best Practices Voluntary Biodiversity Programs United Water participates in many voluntary programs to promote and protect biodiversity in our service areas and on our plant sites. Listed below are just a few examples: Xeriscape gardening at United Water locations in Boise, ID; Haworth, NJ and West Basin, CA Tree planting in Indianapolis, IN in partnership with the 2011 Super Bowl Tree Campaign and in Camden, NJ with the New Jersey Tree Foundation Rain gardening at United Water Delaware and United Water Pennsylvania Removing invasive plant species in the watershed at United Water New Jersey Setting up bird houses at United Water’s partnership in Indianapolis, IN Protecting the habitat of American bald eagles nesting at United Water New Jersey Donating and installing a water line and hydrant for the Birds of Prey in Boise, ID Providing a grant for a green roof for the Nature Conservancy of Indianapolis, IN Figure 15: Tree planting in Indianapolis, IN Birds of Prey, Boise, ID In an effort to help preserve the birds of prey located in Boise, ID, 20 United Water employees donated their time and vendors donated materials to install 470 feet of new water main, a fire hydrant and relocate an existing fire hydrant at the World Center for Birds of Prey. This two-day construction project will not only benefit these magnificent birds, but will also improve the fire protection for current and future building. The World Center for Birds of Prey is an internationally known leader for the preservation of these birds and is owned and operated by the Peregrine Fund. SUSTAINABLE DEVELOPMENT REPORT 2011 COMMITMENTS AND PERFORMANCE PRIORITY: EMPOWER OUR EMPLOYEES AS ACTORS OF SUSTAINABLE DEVELOPMENT At United Water we strive to provide a safe work environment and to further our employees’ motivation and professional growth. Our employees are important beneficiaries of our Sustainable Development Policy, which recognizes their personal and professional significance in our organization. COMMITMENT 7: FOSTER PROFESSIONAL KNOWLEDGE United Water’s commitments to Sustainable Development not only drive the success of our company, but also that of our employees. These commitments create a sense of purpose, community, volunteerism and help to preserve both natural and human resources. United Water is dedicated to furthering the development of our employees. We conduct numerous programs that empower our employees to drive their own career development, as well as develop the necessary skills required for advancement. We are committed to being a leader in the environmental industry, providing all participants with an opportunity to contribute their best every day, both through their job and volunteer efforts. We encourage mobility and work to develop and promote our employees within the organization, providing opportunities Figure 12: In 2011, United Water across our two business segments as well employees received approximately 28 total hours of training, including Health & Safety as within SUEZ ENVIRONNEMENT. Our SuccessFactors performance management platform includes an Employee Profile, where employees can build their career resume – including specific work accomplishments, awards and honors, volunteer work and areas of leadership and functional expertise – as well as express both their interest in future roles/assignments and their degree of mobility. United Water offers a robust catalog of learning opportunities for all employees which include classroom, distance and e-learning, as well as specific assessment tools. We also offer a tuition and education assistance program that provides funding to employees who pursue a college degree and specific professional certification programs. Our learning recognition program acknowledges employees who achieve a degree, professional license or certification. Our employees are our most valuable resources and we are committed to developing their talents and fostering their professional knowledge. We are convinced that the motivation, inspiration PAGE 20 SUSTAINABLE DEVELOPMENT REPORT 2011 COMMITMENTS AND PERFORMANCE PAGE 21 and innovation of our people make us a successful environmental company. Our commitment to Sustainable Development motivates our employees to perform at their greatest potential and encourages them to be catalysts for change, innovation and continuous improvement. To measure the success of our commitment, United Water tracks the number of hours of training per employee each year. During 2011, each employee received approximately 28 hours of training including Health & Safety. The following major training activities were conducted: Ethics Training Two Leadership Development Programs Professional Skills Training On-line and classroom safety training Project Manager Action Program Ethics Training for new employees Diversity and Inclusion training Front Line Leadership training Best Practices In order to continue to provide our workforce with the skills and knowledge to be successful in their roles and create alignment with the goals and commitments of the organization, United Water expanded upon two important training initiatives in 2011. The first was an enhanced level of Diversity and Inclusion (D&I) training, the second an e-learning module on Ethics. Diversity As part of United Water’s commitment to providing a deeper understanding of Diversity and Inclusion, two different one-day training programs were developed, beginning a multi-year rollout plan to train all employees within the company. Similar in design, there are separate sessions for managers and staff. The goal of both programs is aligned with our Diversity and Inclusion Mission, which in part is to “Provide an environment that celebrates individual uniqueness and enables all employees to contribute to our success and share in the rewards.” Participants in the program experienced a day filled with discussions and team activities providing tools to enhance communication skills, facilitating inclusion in our work environment. In addition, participants learned how D&I applies to our business, our customers and the communities we serve. Ethics United Water requires all of its employees to act in an ethical manner in all of their dealings and in all circumstances, whatever their role and level of responsibility. In order to ensure all employees are aware of our policies and what is expected of them, an on-line Ethics course was deployed to employees in 2011. The course provided an overview of our ethics policy and provided linkage and alignment with the SUEZ ENVIRONNEMENT Ethics Charter. The course also covered specific topics such as Conflict of Interest, Ethical Decision Making and Reporting and Raising Questions. Feedback on the program was positive and survey results validated that employees understood our policies and knew where to direct any questions regarding specific situations. SUSTAINABLE DEVELOPMENT REPORT 2011 COMMITMENTS AND PERFORMANCE PAGE 22 COMMITMENT 8: CONTINUOUSLY STRIVE TO IMPROVE HEALTH AND SAFETY IN THE WORKPLACE In keeping with our commitment to customer service and value, business efficiency, employee motivation and development and managed growth, United Water’s health and safety program is an integral part of our initial mobilization efforts and ongoing operations. United Water firmly believes that in order to develop and maintain a safe working environment, safety must be a key part of all our operations, maintenance and administrative work practices. Our health and safety program not only complies with all federal, state and local regulations, it also ensures that safety is a responsibility shared by all of our employees. In addition to establishing safe work practices, our health and safety program increases Figure 13: In 2011, 86% of United safety awareness and provides ongoing safety Water’s facilities achieved OSHA lost training opportunities for all our employees. We time incident and lost time severity challenge our employees to practice safety as if rates of "Zero" their lives and the lives of their colleagues depend on it. In 2011 we provided an average of 22 hours of safety training to all our employees, far exceeding our goal of 12 hours per employee per year. We also realize that the development of a successful health and safety program requires a significant dedication of time, management and financial resources. However, success is not a function of input alone. Health and safety programs must be measured on the basis of impact – do they reduce workplace injuries and illnesses. To that end, we are pleased to report that in 2011: 75% of our facilities had an OSHA recordable rate of zero 82% of our facilities had an OSHA days away, restricted or transferred (DART) rate of zero 86% of our facilities had an OSHA lost time incident and a lost time severity rate of zero In 2011, United Water’s project in Wixom, MI received the Michigan Water Environment Federation George W. Burke Jr. Safety Award United Water’s experience modification rate (EMR) as calculated by the National Council on Compensation Insurance, Inc. (NCCI) fell from 0.96 in 2011 to 0.70 for 2012, well below the industry average of 1.0 and is another indicator of the positive impact our health and safety program is having on our workplace injuries and illnesses. SUSTAINABLE DEVELOPMENT REPORT 2011 COMMITMENTS AND PERFORMANCE Going Forward For 2012, our philosophy continues to be “good is not good enough”. United Water will never be satisfied until we are accident free every day. To reach that “best in class” status, we continue to shift our health and safety program away from compliance-based to a culture-based program. Figure 14: United Water's Health and Safety Program has matured and improved over the years and we now instill safety into the DNA of our culture During 2012, United Water is promoting safe work planning, continued manager/supervisor involvement, “60 Seconds for Safety,” and risk assessment programs to insure our employees think before they act. We are also focusing our 2012 capital investments to engineer out any hazards or dangers before new facilities are built or upgrades are completed. By combining these initiatives with the elearning program, 24-hour incident reporting hotline, safety management “walkabout” program, safety contract program, WorkCare program and 15-point health and safety management system, we can address employee awareness, commitment and behavioral issues that will enable us to reach “best in class” results. Figure 15: Programs such as "60 Seconds for Safety" bring continued focus to safe work practices PAGE 23 SUSTAINABLE DEVELOPMENT REPORT 2011 COMMITMENTS AND PERFORMANCE Best Practices OSHA’s Voluntary Protection Plan OSHA’s Voluntary Protection Plan (VPP) is a health and safety management program that recognizes and promotes the efforts of employers and employees who have achieved outstanding health and safety records. In OSHA’s VPP program, management, labor and OSHA establish a partnership that results in a comprehensive and effective health and safety management system in each participating workplace. In essence, OSHA’s VPP program establishes performance-based, measurable criteria for a managed health and safety program. Workplaces who feel they have a strong health and safety management program are invited to apply and are then assessed against the criteria. If they meet the criteria, they are assigned to one of three VPP programs. The programs are: Star - recognizes sites that have distinguished themselves with the highest level of safety and health excellence. Merit - is a program for organizations that are not qualified for STAR level, but appear to be close to qualifying. Merit sites must have specific goals for enhancing their safety and health program to meet Star requirements and are evaluated onsite annually. Star Demonstration - Recognition for work sites that address unique safety and health issues. United Water is proud that our Wixom Wastewater Treatment Plant has achieved the highest “Star” recognition. The Wixom facility, jointly operated by United Water and the City of Wixom, illustrates the commitment United Water places on health and safety, the depth of our health and safety management systems which are driving cultural changes and the strength of a successful public-private partnership. PAGE 24 SUSTAINABLE DEVELOPMENT REPORT 2011 COMMITMENTS AND PERFORMANCE PAGE 25 COMMITMENT 9: COMMIT TO DIVERSITY United Water creates and maintains an environment that celebrates individual uniqueness and enables all employees to contribute to our success and share in the rewards. At United Water, diversity means embracing differences among individuals in our workforce, suppliers and communities. Diversity, to us, includes areas such as age, business background, culture, disability, educational level, employee status, ethnicity, family status, gender, national origin, race, religion, sexual orientation, social class and thinking styles. Our similarities and differences offer us the opportunity to leverage endless possibilities for personal, corporate, and community development. United Water is committed to identifying and establishing business relationships with certified diverse suppliers whose firms are owned by minorities, women, disadvantaged or small disadvantaged businesses, veterans and service-disabled veterans or are located in a historically underutilized business zones such as an Indian reservation In 2009, United Water created a diversity council and a full-time position was dedicated towards diversity promotion and inclusion. This helped establish United Water as the reference company in the water industry, recognized for its commitment to diversity and inclusion. By further embracing cultural and gender diversity, United Water enriches its range of profiles, talents, sensitivity and knowledge, making it better prepared not only to understand the expectations of the people we serve, but also to operate its business as efficiently as possible. Throughout October of each year, we celebrate National Awareness Diversity Month. We also recognize the need for continuous improvement and strive to further our gender ratio in the workforce and in management. In 2011, United Water published the first Diversity and Inclusion Stewardship Report on www.unitedwater.com. Figure 16: This report brings focus on United Water’s D&I efforts and 2011 results SUSTAINABLE DEVELOPMENT REPORT 2011 COMMITMENTS AND PERFORMANCE PAGE 26 United Water’s Diversity and Inclusion Goals include: Workforce: Recruit, develop and retain a workforce at all levels of the organization that reflects our communities, clients and qualified labor pool. Environment: Provide a work environment where all employees feel included and engaged and show respect and appreciation for diversity. Customers: Improve customer service and drive market growth by understanding and reflecting the diverse current customer and potential clients. Community: Support the communities in which we serve by promoting philanthropic, social and educational programs that reach diverse constituents. Suppliers: Develop a supplier base that is diverse and that demonstrates commitment to diversity within its own operations. Best Practices Building a Strong Supply Chain Torry McAlvain’s Native American-owned business in Boise, ID has been part of the United Water team for the past quarter of a century. McAlvain Construction has worked on dozens of United Water projects since Torry’s father started the company in 1980. A member of the Choctaw Nation like his father, McAlvain is now CEO of one of the largest and most prominent construction firms in Idaho, as ranked by the Idaho Business Review. Recent work provided for United Water included the Hilton Well Greensand Treatment Project and the 600,000gallon Boulder Concrete Reservoir. United Water’s supplier spend with certified diverse suppliers such as McAlvain Construction was $13 million in 2011. The Bergis Mamudi Diversity and Inclusion Award was established to honor and recognize exemplary individuals or workgroups who incorporate Diversity and Inclusion goals and objectives within our communities and work environments Bob Iacullo, President and COO of United Water, was a key note speaker at the 2011 New York New Jersey Minority Supplier Development Council’s Sustainability Summit. Bob served on the Plenary Panel for Innovative Sustainability Partnering Improving Recruitment and Careers for Women In 2011, Nadine Leslie became the first woman president at United Water, a significant and visible action in United Water’s efforts to promote women to senior, decision-making positions. Ms. Leslie is responsible for more than 100 water and wastewater operations throughout North America and managed by the company’s Environmental Services segments. Today, women managers represent nearly 20% of United Water’s workforce. United Water is committed to increasing the number of female managers to 28% by 2015. SUSTAINABLE DEVELOPMENT REPORT 2011 COMMITMENTS AND PERFORMANCE PAGE 27 PRIORITY: BUILD OUR DEVELOPMENT GOALS WITH ALL STAKEHOLDERS We pledge to take into account the expectations of our stakeholders and partners and to foster open dialogue and constructive collaboration. We strive to communicate our activities and performance to both our internal and external stakeholders. COMMITMENT 10: MAINTAIN AN ACTIVE DIALOGUE WITH OUR STAKEHOLDERS United Water organizes regular stakeholder meetings at all relevant levels of the organization to help align the company’s strategy with the expectations of society. Stakeholders are defined as those individuals or organizations that can affect or are affected by the organization’s actions. United Water’s internal and external stakeholders are defined below: Internal stakeholders are employees, labor unions, SENA, SUEZ ENVIRONNEMENT and GDF-SUEZ External stakeholders are external partners such as customers, clients, Non-governmental Organizations (NGO), academics, elected officials, regulators and customer advisory panels United Water has created a partnership with the University of Arizona and our client, the West Basin Municipal Water District, to conduct research and create a shared learning opportunity. United Water has provided a fellowship to a student at the university who will conduct research under the direction of Professor Shane Snyder. The collaboration creates value and seeks solutions of common interest United Water strives to effectively engage our stakeholders by creating useful interactions to exchange information, obtain knowledgeable feedback and communicate openly and transparently. By using this proactive approach to effective communication, the expectations of the stakeholders are clearly understood and used to actively guide United Water’s strategy. United Water is engaging our stakeholders and creating partnerships based on a shared vision, shared learning and value creation. These collaborations are goal-oriented and seek to find solutions and guide decision making. A good example of this type of collaboration is United Water’s Customer Advisory Panels (CAPs), which exist in seven of our service areas. CAPs have been formed as a means for United Water Figure 217: United Water New Jersey’s to obtain feedback from our customers. Customer Advisory Panel SUSTAINABLE DEVELOPMENT REPORT 2011 COMMITMENTS AND PERFORMANCE This feedback is used to guide United Water on issues or matters relevant to the company, water industry, water supply, water quality and water rates among others. These meetings also serve as a means for the company to present new initiatives and programs for critique and evaluation by the CAPs. CAP members are compensated for their participation and meet quarterly with an independent moderator conducting the meetings. Best Practices Initiative for Global Environmental Leadership (IGEL) United Water is a founding partner and board member of the Initiative for Global Environmental Leadership (IGEL) in conjunction with the Wharton School and the University of Pennsylvania. Their mission is to develop and disseminate business solutions to sustainability on a global scale through future leaders and public outreach regarding best business practices and sustainable profit. Patrick Cairo, Senior Vice President of Commercial Development at United Water has been a board member of IGEL since its inception. With planning assistance from United Water, IGEL holds an annual conference featuring expert speakers from around the globe and has included speakers from SUEZ ENVIRONNEMENT and United Water. The University of Pennsylvania designated 2011 as the Year of Water. IGEL’s fourth annual conference was held on World Water Day at the Wharton School on the University of Pennsylvania campus. The conference was dedicated to Valuing Water: Business Challenges and Opportunities for Innovation. Barbara Paxton, United Water’s Director of Sustainable Development, contributed by serving on a panel and providing a presentation on Water as a Driver for Innovation. United Negro College Fund In 2010, United Water began the first year of the partnership with UNCF (United Negro College Fund) and its Corporate Scholars internship program. The program is designed to provide up to 20 college students paid summer internships at United Water over the next four years. UNCF will provide access to students at their 39 member schools and select other schools chosen by United Water. The students begin the first internship after the summer of their sophomore year of study. If the intern successfully completes their summer internship, he or she is awarded a scholarship during their junior school year and returns to United Water for a second internship experience the summer after their junior year. The goal is that after graduation and where openings exist, United Water will offer full-time opportunities to students. In 2011, United Water provided internship opportunities as well as scholarships to nine students at locations across the United States. PAGE 28 SUSTAINABLE DEVELOPMENT REPORT 2011 COMMITMENTS AND PERFORMANCE PAGE 29 Project Lighthouse: Navigating to a Superior Customer Experience Project Lighthouse is the new Customer Care and Billing (CC&B) system that was implemented on time and on budget during 2011. This system is used to generate bills for customers, update customer information, schedule work and determine credit and collection activities. After more than two years of planning, developing and training, the CC&B system is fully launched and will provide better data management, consistency, reporting and productivity. It is a user-friendly tool for the Customer Service Team that will provide better, more consistent access to information when interacting with customers. Project Lighthouse is an innovative solution that will enable our customer service professionals to deliver a superior customer experience to United Water customers. According to United Water’s Customer Experience Survey, our customer satisfaction rating has improved by 18% in the past five years with an overall rating of 85% COMMITMENT 11: BE A KEY ACTOR OF LOCAL SUSTAINABLE DEVELOPMENT United Water actively participates in the social and economic life of the communities that we serve by partnering with local authorities in sustainable development initiatives. These efforts are targeted to cultivate an effective stakeholder dialogue and generate defined social action plans that structure our contribution to the local area along lines that are environmentally and socially focused. Figure 18: United Water San Antonio’s Project Manager, Joe Thaxton receives an award for outstanding community service. In addition to stakeholder dialogue in local and regional communities, United Water is building partnerships with nonprofit organizations dedicated to environmental, educational and humanitarian services. Our goal is to provide leadership and volunteerism and give back to the communities in our service areas. From coast to coast, United Water employees can be found making a difference by volunteering with local nonprofit organizations and participating in activities such as river and beach cleanups, planting trees, serving meals to the needy, repairing homes and a multitude of other worthy efforts. United Water hosts environmental and humanitarian community events at various locations around the country. In 2010, we launched the United Water Foundation, which provides a means of giving within our focus areas of education, environment and health and humanitarian services. Through the United Water Foundation, philanthropic contributions were made during 2011 of approximately $2,000,000. SUSTAINABLE DEVELOPMENT REPORT 2011 COMMITMENTS AND PERFORMANCE PAGE 30 Best Practices Habitat for Humanity Along with a $15,000 contribution, employees at United Water in Indianapolis, IN rolled up their sleeves for their first-ever Habitat for Humanity home building event. Through volunteer labor and donations, the non-profit organization builds or rehabilitates simple, decent houses alongside homeowners (partner families). In addition to a down payment and monthly mortgage payments, homeowners invest hundreds of hours of their own labor (sweat equity) into building their Habitat house and the houses of others. Our Figure 19: Habitat for Humanity home employees helped build the organization’s building in Indianapolis second LEED Certified home in the Indianapolis area. LEED, or Leadership in Energy and Environmental Design, is an internationally recognized green building certification system created for better environmental and health performance. Water for People Water for People, www.waterforpeople.org, is an international humanitarian organization comprised of dedicated people who recognize that water is a primary building block of life. United Water supports Water for People both financially and operationally through corporate and employee donations, and through lending its expertise in the field. Working side by side with communities to improve their drinking water, Water for People helps its partners undertake local water and environmental health efforts. Water for People helps local communities install simple, low-cost water pumps, water tap stands, showers and latrines. The benefits of these water systems helps the people in these communities discover the freedom that improved health affords, which, in turn, creates a cycle of empowerment that impacts these communities for current generations and those to come. Figure 20: Water for People honored two United Water employees in 2010 In 2010, Water for People honored two of United Water employees with the Kenneth J. Miller Founder’s Award. The Founders’ Award is a special recognition for volunteers who show outstanding service to Water for People's international humanitarian effort. SUSTAINABLE DEVELOPMENT REPORT 2011 COMMITMENTS AND PERFORMANCE PAGE 31 United Water Indianapolis In Indianapolis, IN, United Water developed a Community Relations and Environmental Partnership Program with city leaders, which outlines seven programs for implementation throughout the city. Through this effort, United Water donates more than $800,000 annually in direct contributions and in-kind services to hundreds of local organizations and groups throughout Marion County. Our primary giving focus is to support nonprofit organizations dedicated to the environment, education, diversity and humanitarian services. The Community Relations Partnership Program is composed of the following seven programs: Community Relations (CREG) Program Mobile Environmental Education Program Spray Grounds for Parks Department Planting of trees throughout the City Adopt-a-School Program Green Power Program Green Infrastructure Grant Program Environmental Grant Figure 21: Indianapolis spray As a highlight of one of these partnership programs, the Green Infrastructure Grant Program provides funds of $100,000 per year for projects that promote green infrastructure construction, reduce energy consumption and limit negative impacts on the environment. This program helps manage and treat stormwater runoff through the use of natural systems or engineered systems that replicate natural methods. The primary goal of green infrastructure is to capture stormwater where it falls so that it can be cleaned, infiltrated into the soil and slowly released into rivers and streams. By slowing the release and reducing the amount of rain water into the sewer system, these strategies also help alleviate Combined Sewer Overflows (CSO). ground park at a city playground Figure 22: The Green Roof at the Indianapolis Nature Conservancy helps minimize stormwater overflows SUSTAINABLE DEVELOPMENT REPORT 2011 COMMITMENTS AND PERFORMANCE Over the past four years, United Water has committed over $400,000 to this initiative. We are helping the City of Indianapolis to become greener by assisting organizations that are building green roofs, purchasing rain barrels and cisterns, installing porous pavement and constructing wetlands. To date, United Water has helped 23 organizations across Marion County with green infrastructure projects. United Water is Making a Difference From coast to coast, United Water is making a difference by volunteering and building partnerships with environmental, educational and humanitarian organizations. Our goal is to provide leadership and volunteerism and give back to the communities in the areas we serve and live in. Below is a sample of the organizations supported by United Water’s efforts. PAGE 32 SUSTAINABLE DEVELOPMENT REPORT 2011 COMMITMENTS AND PERFORMANCE COMMITMENT 12: PROVIDE REGULAR AND EASILY ACCESSIBLE INFORMATION ABOUT OUR SUSTAINABLE DEVELOPMENT ACTIVITIES As a business unit of SUEZ ENVIRONNEMENT NORTH AMERICA, United Water’s sustainability reporting is integrated into the global reporting of SUEZ ENVIRONNEMENT, www.suezenvironnement.com. As a public entity and our parent company, they communicate economic, social and environmental performance through a reporting tool following the Global Reporting Initiative guidelines. SUEZ ENVIRONNEMENT is regularly evaluated by nonfinancial rating agencies such as Sustainable Asset Management and Vigeo and is now represented on the following indices: Dow Jones Sustainability Index World and Dow Jones Sustainability Index STOXX Advanced Sustainable Performance Indices Eurozone and Ethibel Sustainability Indices Excellence Europe FTSE4Good Index United Water strives to improve transparency and reporting on its environmental, social and governance performance by publishing the 2011 Sustainable Development Commitment and Performance Report on our website, www.unitedwater.com. PAGE 33