Our strategy: to become the global leader in environmental services
Shaping a sustainable environment now
The “SUEZ 2030” strategic plan aims to position the Group relative to the opportunities and the challenges of the coming decade, and to speed up its contribution.
We interact with a fast-changing world that demands concrete action to shape a sustainable environment together, now.
In particular, we foresee the development of the circular economy, the emergence of new models, an increase in regulations and rising awareness amongst citizens of the climate crisis and the deterioration of the environment.
To develop SUEZ 2030, we identified and analysed 75 worldwide trends that may impact our markets by 2030, including five trends that will shape the future of our businesses:
Growing concern for the health and well-being of consumers in developed countries, particularly the "Millennials"
In 2018, more than 1.6 million employees worldwide participated in health and well-being programs. This concern is particularly acute among Millennials, people born in the 1980s and early 1990s, at the same time as the emergence of digital technology.
In many developed countries, the rise of social, ecological and ethical concerns within this generation is leading to new consumption patterns and behaviors, more responsible and demanding with regard to well-being and health issues (~90% of consumers are willing to pay a premium for healthier food products according to Nielsen's Global Health & Wellness study published in 2015).
Increased needs for environmental added value services from industries
Companies are increasingly paying attention to environmental sustainability and ethical sourcing requirements as a lever to mitigate risk and increase brand perception. Customers value more and more sustainability, transparency and social responsibility, which directly influence brand value and reputation (~70% of global customers are willing to pay premiums for sustainable goods).
As a result, environmental and social responsibility is an increasingly important preoccupation of management and can lead to increased monitoring reporting and compliance costs (as of 2017, 43% percent of Fortune 500 companies have set renewable or sustainable energy targets).
Improved environmental and safety regulations globally
Driven by public pressure, governments and regulators around the world are concerned about the well-being of their population and the state of the planet. They have consistently issued and increased regulations to secure and improve living conditions for future generations (e.g., EU is increasing energy efficiency requirements in market by requiring new buildings to be zero-energy by 2020).
Urbanization in emerging markets, the main growth driver (especially medium-sized cities)
By 2030, 50% of the world's megacities will be located in emerging countries. This urbanization is based, in particular, on the emergence of the middle class and poses a challenge in terms of infrastructure and the environment.
In these same parts of the world, medium-sized cities are also experiencing sustained growth. As a necessary step towards a higher stage of development, investment in infrastructure, urbanization and related services will therefore have to be extensive.
Emergence of the analysis of big data and connected devices sources of information allowing better insight into business opportunities
In 2019, the number of connected devices in the world amounts to more than 26 billion; there will be more than 30 billion next year. All these devices generate a huge amount of information and data, especially customer-related information.
In our markets, their analysis is key to refining our decisions, offering innovative services and discovering new opportunities that will stimulate our growth.
We have decided to reposition the Group’s strategy, on the strength of SUEZ’s long-standing reputation, its advanced technologies and its expertise in sustainable development. We will adapt to our changing markets and, from today onwards, we will contribute to meeting environmental needs, while also increasing the value we create for our stakeholders, as early as 2021.
Bertrand Camus , Chief Executive Officer of SUEZ
To be our customers’ preferred company, with a portfolio of 100% sustainable solutions
Our strategy aims to offer unprecedented and effective solutions that will help our customers to become more competitive and, more globally, to make the difference.
SUEZ intends to stand out as the first choice of its customers in industry and local government, and of citizens, to address the greatest challenges facing the planet, together: the climate crisis, the protection and restoration of our natural assets, health and quality of life.
We intend to offer our customers a portfolio of high added-value solutions that are 100% sustainable and that will make the difference, thanks to their positive impact on health, quality of life, the environment and the climate.
Health and quality of life: access to water and the treatment of wastewater, water quality, the treatment of micropollutants, waste management and smart cities.
A positive impact on the climate: strengthening resilience in response to the climate crisis (flood prevention, forecasting systems), recycled and green products, green energy and chemicals, ecological landfill sites, capturing greenhouse gases.
Zero waste: innovative collection programmes for smart cities, ecodesign and environmentally-friendly materials for industry, reuse, zero uncharged water (or the repair of water leaks in the mains networks).
100% circular: “100% reuse” factories, priority flows of bio-solids, biowaste, foodstuff and plastics, the promotion of innovative recycling.
Total traceability of impacts: smart solutions for sustainable water quality in favour of health and the environment, traceability services, ecological accreditations and certifications, monitoring of air and water quality.
For our customers, this new value proposition aims to::
- Help our industrial customers to follow their roadmaps, with performance-focused integrated offers, while sustainably securing their industrial processes.
- Help cities and local authorities to make their environmental transition, thanks to smart and digital solutions.
- Provide easier access to sustainable consumption for citizens, by offering affordable solutions.
From today onwards, SUEZ is raising its sustainable development ambitions for 2030. 100% of our solutions will be sustainable. Our solutions will enable our customers to avoid producing about 20 million tonnes of CO2 every year. We are also committed to, and in line with, the IPCC’s target to limit global warming to 1.5°C. The SUEZ Group will have a neutral carbon impact by 2050.
Bertrand Camus , Chief Executive Officer of SUEZ
Our transformation strategy is built on three pillars
Thanks to its strengths (technology, know-how, talented people and an excellent reputation), our Group will grow more selectively, with simplified operational processes and the renewed commitment of its teams, founded on their passion for the environment.
“Shaping SUEZ 2030” is built on three strategic pillars that will fuel the creation of value for all our stakeholders, as of 2021.
By targeting selective growth, we intend to build on our strong capacity to innovate in Europe and, in all our segments of activity, to speed up our development in the fields where we have identified the most promising opportunities:
- International markets: we intend to grow our activity in a selection of countries, where we will deploy our global value proposition and step up our investments in innovative services. We also aim to grow on markets where the need for environmental infrastructures is rising sharply. Our ambition is to generate 60% of our revenues on international markets.
- Industrial customers: we want to speed up our growth on five key, high-growth markets, with a priority focussed on high added-value activities that draw on our differentiating portfolio of solutions. Thanks to our partnerships with our industrial customers, we can offer personalised and integrated solutions that will help them to follow their sustainable development roadmaps. Our ambition is to generate 50% of our revenues with industrial customers.
- Data-driven technologies and solutions: we call on proprietary technologies and innovation to develop and deploy smart and environmental solutions on a worldwide scale. We will also develop new high-potential and low capital-intensive activities, such as air quality management and smart agriculture. Our ambition is to generate 30% of our revenues in data-driven technologies and solutions.
We are going to build a decentralised and agile SUEZ that is close to its customers.
This new organisation will consist of:
- The simplification and optimisation of our industrial processes that will improve our operational performance and significantly increase our investments in innovation.
Our goal is to increase our investments in R&D, innovation and digital technology by 50% by 2023.
- A simpler and more efficient organisation, with a reduced number of Business Units and a decentralised decision-making process that better meets our customers’ needs.
The operational BUs, that will have greater responsibilities and be close to our customers, will be supported by three centres of excellence in marketing, know-how and performance, digital technology and innovation
The operational BUs will be organised into six major regions (France, Northern Europe, Southern Europe and Latin America, North America, Africa, the Middle East and Central Asia and Asia Pacific), plus two worldwide business units (Water Technologies & Solutions, Environmental and Digital Solutions).
The success of SUEZ 2030 depends on harnessing the energy and the expertise of our employees, in order to meet the needs of our customers and our partners.
The combination of our new values - a passion for the environment, care for our customers, respect and team spirit - and a culture that embraces our conquering spirit, will support the major transformations that our strategic plan intends to bring about.
In order to offer the highest standards of expertise to our customers, our Human Resources policy will strive to further promote the talent, leadership and skills of our employees throughout the entire Group.
We will also set up Centres of Excellence on emerging markets, offering the differentiating capacities required to address our customers’ specific issues.
“Shaping SUEZ 2030” will be deployed in SUEZ’s three business segments worldwide: “Water”, which includes all of SUEZ’s worldwide “municipal water” activities; “Recycling and Recovery”, which covers all the non-hazardous waste treatment activities for local authorities, industry and business; “Environmental Tech & Solutions”, which includes Water Technologies & Solutions, hazardous waste and specific environmental solutions for industrial customers and local authorities.
Over the next four years, we will transform the Group on every level, and the first results of these actions will be achieved as early as 2021. The total commitment and support of everyone at SUEZ have enabled us to draw up an ambitious, robust and exciting plan, that will be deployed immediately. The success of SUEZ 2030 depends on harnessing the energy and the expertise of our employees, in order to meet the needs of our customers and our partners.
Bertrand Camus , Chief Executive Officer of SUEZ