Valuation of provisions. Provisions for contingencies and losses These provisions are valued at the best estimate of the outflow of resources necessary to settle the obligation. When valuing a single obligation in the presence of several valuation assumptions concerning the outflow of resources necessary, the best estimate is the most probable assumption. Provision for incentive schemes The unit amount of incentive payments is defined: ■ based on the results of Group subsidiaries for the following criteria: • current net income (Group share) compared to the 2021 budget, • 2021 purchase expenditure, excluding taxes, recorded for the sheltered employment sector (France scope); ■ based on the results and performance of Veolia Environnement for the following criteria: • average number of training hours per employee in Veolia Environnement for 2021, • participation rate in the Veolia Environnement employee engagement survey in 2021, • employee engagement rate under the Veolia Environnement engagement survey, • employee subscription rate to the Veolia Environnement employee share ownership transaction in 2021. Based on the observed growth rate and other criteria, the level of incentive payments is determined using a contractually defined chart. The total amount of incentive payments provided is equal to the individual amount determined above multiplied by the number of beneficiaries communicated by the Human Resources Department. The maximum amount of the provision for incentive schemes cannot exceed €5,000 gross per beneficiary and per fiscal year. Provision for bonuses This provision is determined based on the amount of bonuses awarded in the previous year multiplied by an estimated percentage change and changes in employee numbers.
