| Invested through |
|
|---|---|
| Asset Classes | Impact bonds |
| Impact strategy | Impact Equities and Bonds |
| ISIN code | FR001400AFL5 |
| Industry group | Utilities |
| Aligned with SDGs |
In 2021, French utility SUEZ signed a merger agreement with Veolia and a consortium of financial investors. The new SUEZ focuses exclusively on water and waste operations, operating 1,903 wastewater treatment plants and 917 drinking water production plants serving 68 million people in the world. The company’s waste business activities produced 1.8 million tons of secondary raw materials in 2020 and served 8 million inhabitants around the world. SUEZ employs 35,000 people all over the world. Its 2021 annual revenues reached EUR 7.5 billion, split 50/50 between water and waste business.
Investment rationale
Both water and waste management are essential for a more sustainable and circular economy. Access to drinking water is considered an essential human right. Limited or no access to drinking water and sanitation poses great challenges and risk to human development and economic development. Wastewater treatment will contribute to a more circular economy and sustainable economy. As for waste, the world is expected to produce 3.4 billion tons of solid waste by 2050. More than half of this is currently not properly collected, treated or safely disposed. Proper waste management can reduce emissions, increase recycle rates and alleviate landfills disposal.
SUEZ is a leading player in both water and waste management. Thanks to its expertise, it can bring positive impact in ensuring water security, fighting climate change, preventing pollution and enhancing circular economy. Although the proceeds from the debut issuance will be used for refinancing acquisition of entities substantially active in eligible green criteria, we consider the impact to be strong given SUEZ's pure play status.