I need to analyze Veolia Environnement's use of hybrid bonds relative to S&P's 15% cap on equity credit for hybrids as a percentage of total adjusted capital (debt + equity).

## Step 1: Identify Hybrid Bonds Outstanding

From the balance sheet data:
- "Titres Super Subordonnes ADuree Indeterminee" (Deeply Subordinated Perpetual Securities) at 2023-01-01: €3,496.3M
- At 2022-01-01: €2,460.7M

During the year, there was a contribution of hybrid debt from Suez SA of €1,623.9M and a payment/redemption of €500M.

## Step 2: Calculate Total Adjusted Capital (Debt + Equity)

At end of 2022 (2023-01-01):
- **Equity**: €14,866.9M (total equity including NCI)
- **Debt** components:
  - Noncurrent Financial Liabilities: €19,692.1M
  - Current Financial Liabilities: €6,521.4M
  - Noncurrent Lease Liabilities: €1,656.2M
  - Current Lease Liabilities: €496.5M
  - Noncurrent Concession Liabilities: €1,680.5M
  - Current Concession Liabilities: €243.2M
  - Bank Overdrafts: €213.6M

Total financial debt (broad): ~€30,503.5M (excluding lease and concession for a simpler view, or including them)

For S&P purposes, total adjusted capital = debt + equity. Let me use a reasonable definition:
- Financial debt (non-current + current, excluding concession/lease): €19,692.1M + €6,521.4M = €26,213.5M
- Including hybrid securities which are already in equity: need to add back
- Total equity: €14,866.9M (already includes hybrids of €3,496.3M)

For S&P's calculation, hybrids with equity credit are typically treated partly as equity, partly as debt. The 15% cap is on equity credit as % of total adjusted capital.

**Total Adjusted Capital** = Total Debt + Total Equity
- Approximation: €26,213.5M + €14,866.9M = €41,080.4M (simplified)
- If including leases: + €2,152.7M = ~€43,233M

## Step 3: Calculate S&P's 15% Cap

15% of total adjusted capital ≈ 15% × €41,080M = €6,162M (simplified)
Or with leases: 15% × €43,233M ≈ €6,485M

S&P typically gives 50% equity credit to qualifying hybrids. So the equity credit from hybrids = 50% × €3,496.3M = €1,748.2M

## Step 4: Compare to Cap

- Maximum equity credit allowed: ~€6,162M - €6,485M
- Actual equity credit (50% of hybrids): €1,748.2M
- This means actual hybrid equity credit is about 1,748/6,162 = **28%** of the cap

Alternatively, looking at it as: the hybrid amount that would fully utilize the cap would be €6,162M / 50% = €12,324M of hybrid face value. Veolia has €3,496M, which is about 28% of that maximum.

## Step 5: Assessment

Veolia has significant hybrids (€3.5B) that grew substantially with the Suez acquisition (adding Suez's hybrid debt). The company is actively using hybrids - they issued new ones, contributed Suez's hybrids, and redeemed some. The hybrid amount relative to the S&P cap is roughly 25-30%.

However, looking at the company's strategy: they actively maintain and manage hybrid instruments, they contributed Suez's hybrids into their structure, and the hybrid balance is meaningful but well below the S&P cap. The company seems to target moderate hybrid usage - not maximizing the cap but meaningfully utilizing it.

Given the ~28% utilization of the cap, and considering the company's active hybrid strategy with room to grow, the closest answer is **25%**.

<answer>25%</answer>