trending Market Intelligence /marketintelligence/en/news-insights/trending/MjeBXbeC0g3CCmC8Igxl-g2 content esgSubNav
In This List

French utility Suez unveils plan to expand environmental services

Podcast

Next in Tech | Episode 49: Carbon reduction in cloud

Blog

Using ESG Analysis to Support a Sustainable Future

Research

US utility commissioners: Who they are and how they impact regulation

Blog

Q&A: Datacenters: Energy Hogs or Sustainability Helpers?


French utility Suez unveils plan to expand environmental services

Suez SA on Oct. 2 unveiled a comprehensive strategic plan it said would enhance value creation for all stakeholders and position the company as a global leader in environmental services.

Under its "Shaping SUEZ 2030" plan, the French utility aims to see material results as soon as 2021 by accelerating "selectivity" in organic growth, simplicity with a leaner organization and engagement with customers and employees.

By being selective, Suez will target growth in selected countries, including entering markets with fast-growing environmental infrastructure needs, with plans for this segment to reach 60% of group revenue. The company will also build new "high-potential asset-light" businesses with the ambition to exceed 30% of group revenue.

Meanwhile, its move toward a leaner organization will be underpinned by a €1 billion efficiency plan by 2023, which also includes a move toward fewer business units and a devolved decision-making process.

Suez also revised its sustainable development commitment for 2030, with the new aim of reducing greenhouse gas emissions by 45% by that time, from the previous 30%.

"Taken together, the set of actions we have started to execute take us on a 4-year journey to 2023, during which we will transform the group in every respect," Suez CEO Bertrand Camus said.

Suez established 2021 guidance of 8 euro cents for recurring earnings per share, €500 million recurring free cash flow and net debt at 2.8x to 3.0x EBITDA. It also confirmed previous targets of organic revenue growth of 2% to 3%, organic EBIT growth of 4% to 5%, and free cash flow growth of 7% to 8%.