Investor coalition helps Veolia sharpen its road to net‑zero
Since February 2023, a seven‑member investor group within the Net Zero Engagement Initiative (NZEI) has worked hand‑in‑hand with Veolia Environnement S.A. to tighten the company’s climate strategy and align it with “Green Up,” Veolia’s growth programme. Led by François Humbert of Generali Asset Management, the team—also comprising ERAFP, Allianz GI, EOS at Federated Hermes, Phoenix Group and the U.K. Pension Protection Fund—pressed for a transition plan capable of cutting emissions while safeguarding long‑term, risk‑adjusted returns. NZEI’s reach itself has swelled from 93 to 115 investor signatories since its 2023 launch, underscoring the financial materiality of climate action.Through a series of meetings and workshops, the investors outlined clear expectations: a business‑by‑business emissions pathway, levers for decarbonisation, full disclosure on coal exposure in Central & Eastern Europe and China, and robust climate governance. Veolia was already drafting its roadmap when it received the NZEI letter in February 2023, but the dialogue accelerated progress.
The resulting plan, published in February 2024, commits to a 50 % cut in Scope 1 & 2 emissions and a 30 % cut in Scope 3 emissions by 2032 versus 2021, on the way to net‑zero by 2050. It also details governance, risk management and metrics in line with TCFD guidance. The Science Based Targets initiative (SBTi) validated the plan in July 2024, and Moody’s awarded it an “Advanced” rating. Veolia has already invested €650 million in climate projects (2018‑2024) and earmarked a further €950 million through 2030.
In response to the EU’s Corporate Sustainability Reporting Directive, Veolia will from March 2025 reclassify operational emissions outside its financial control as Scope 3, updating—but not weakening—its targets; the revised figures were resubmitted to SBTi on 31 March 2025. Both Veolia and the NZEI signatories intend to keep the conversation going, focusing on avoided (Scope 4) emissions, a European coal exit and Chinese coal asset decarbonisation, enhanced methane capture and the translation of these efforts into future capital allocation.
Francois Humbert, Engagement Lead Manager at Generali Insurance Asset Management, as lead of the engagement group said: “We would like to congratulate Veolia for the very significant work performed to publish the Veolia Climate Report, issued in February 2024 and the subsequent SBTi approval in July 2024 along with the “Advanced / NZ-2” transition plan rating from Moody’s. We believe that this is one of the most comprehensive climate reports we have seen in recent years, including a pedagogical explanation and breakdown for each business, emissions trajectory and contributing levers, disclosures on coal in CEE/China and related climate governance. Following the CSRD implementation, we take note of the scope changes, we welcome the clarification which was expected, and we look forward to the SBTi re-validation. We will continue to work with the company on avoided emissions, coal in China, methane, the various business models of the transition, and related improvements in reporting.
This positive outcome was helped by the joint work started in early 2023 between our group and Veolia’s strategy, climate and investor relation teams, who we thank for this very fruitful partnership. The Net Zero Engagement Initiative helped us demonstrate formally that climate is important for many investors, while gathering a sub-group to work with Veolia.
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