Climate Change Data

Environmental Metrics

ESG Focus Areas

• Health and safety
• Project and product quality and control
• Business conduct and transparency
• Financial performance
• Employee recruitment, development and retention
• Energy & emissions
• Local community engagement
• Circular economy
• Procurement
• Innovation
• Human rights
• Responsible tax

Environmental Achievements

• Reduced CO2 emissions from 277 kilotonnes in 2009 to 230 kilotonnes in 2015, a reduction of 17%
• Reduced construction and office waste from 574 kilotonnes in 2009 to 161 kilotonnes in 2015, a reduction of 72%
• Increased construction waste separation rate from 10% in 2009 to 29% in 2015, an improvement of 63%

Social Achievements

• Reduced Incident frequency (IF) to 4.5 (2014: 5.0)
• Safety Awareness Audits (SAA) score increased to 75.4 (2014: 74.2)
• Women in top management increased (specific numbers not clearly stated in the report)

Governance Achievements

• Successful implementation of the Back in Shape programme
• Improved stage gate tendering process to reduce project risks
• Strengthened operational audit function

Climate Goals & Targets

Environmental Challenges

• Intense competition in shrinking project markets
• Pressure on property portfolio value
• Limited capital availability
• Asymmetrical risk profile in project business
• Need for leadership style and competency changes
• Need for employee training in contract and risk management
• Maintaining a preferred employer status
• Difficulties in quantifying biodiversity value
• Regulatory restrictions on new and recycled materials
• Public procurement restrictions on unique solutions

Mitigation Strategies

• Increasing market share in niche markets
• Forward integration and client-oriented approach
• Focusing on complex/multidisciplinary projects
• Alternative property development and financing methods
• Investing in employee development
• Fostering an open learning culture
• Improving project selection, tendering, and execution
• Implementing lean and BIM in integrated projects
• Strengthening project monitoring and performance management
• Concept and process innovation related to sustainability

Supply Chain Management

Supplier Audits: 3,679 supplier performance assessments

Responsible Procurement

• Supplier assessment against safety, quality, total cost, logistics, and engineering & process themes
• Dialogue with suppliers to improve performance
• Exclusion of suppliers unwilling/unable to improve

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather conditions

Transition Risks

• Regulatory changes

Opportunities

• Energy-efficient buildings and renovations

Reporting Standards

Frameworks Used: Integrated Reporting (IR) Framework, Global Reporting Initiative (GRI) G4 ‘Comprehensive’

Certifications: OHSAS 18001

Third-party Assurance: PricewaterhouseCoopers Accountants N.V.

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Low Energy Asphalt Concrete (LEAB)
• Water-efficient residential water tap sprinkler
• Self-healing concrete

Awards & Recognition

• Construction Week Award for CSR Initiative of the year (BAM International)
• Top 5 position in the Transparency Benchmark
• CDP Climate A List

Environmental Metrics

ESG Focus Areas

• Safety
• Sustainability

Environmental Achievements

• CO2 emissions reduced by 9% to 185 kilotonnes (2016: 203 kilotonnes)
• Construction and office waste reduced by 9% to 134 kilotonnes (2016: 148 kilotonnes)

Social Achievements

• Incident Frequency improved to 4.6 (target <3.5) compared to 4.8 in the previous year

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Project loss at sea lock IJmuiden (€68 million)
• Eindhoven Airport parking garage collapse
• Rising pressure on costs and availability in some parts of the supply chain
• Brexit affecting labour supply at subcontractors
• Challenging market conditions in Netherlands and Belgium

Mitigation Strategies

• Prior restructuring in the Netherlands and Germany
• Key priorities remain pre-construction management, business controls, digitalisation and IT standardisation, and implementing key learnings from sea lock IJmuiden
• Accelerate execution to capitalise on potential

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Gravity Based Foundations for offshore wind power

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Economic Performance
• Project and Product Quality Control
• Employee recruitment, development and retention
• Health and Safety
• Diversity and Equal Opportunities
• Occupational Health and Safety
• Procurement Practices
• Local Communities
• Human Rights
• Tax governance
• Materials
• Energy and Emissions
• Business Conduct and Transparency
• Community Engagement
• Fair Tax
• Circular Economy

Environmental Achievements

• Reductions in energy requirements of products and services
• Reduction of GHG emissions

Social Achievements

• Programs for upgrading employee skills and transition assistance programs
• Diversity of governance bodies and employees

Governance Achievements

• Tax governance, control and risk management
• Operations assessed for risks related to corruption

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Proportion of spending on local suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate change
• Resource consumption
• Safety
• Diversity and inclusion
• Human rights
• Sustainable procurement
• Circular economy
• Digitalization

Environmental Achievements

• Reduced CO2 emissions intensity by 15% compared to 2019, exceeding the 2020 target of a 25% reduction compared to 2015.
• Increased recycle or reuse rate of construction and office waste to 76% (2019: 75%).
• Delivered 16 circular projects (2019: 14).

Social Achievements

• Launched ‘Speak Up’ campaign focusing on psychological safety.
• Organised Worldwide BAM Safety Day addressing mental health and psychological safety.
• Appointed women managing directors at two operating companies.

Governance Achievements

• Implemented a major restructuring programme aiming for €100 million annual cost reduction.
• Extended partnership with PGGM Infrastructure Fund, acquiring a 50% interest in BAM PPP.
• Updated Code of Conduct and improved reporting on activities aimed at enhancing lives.

Climate Goals & Targets

Environmental Challenges

• Covid-19 pandemic impacting operational efficiency and revenue.
• Continued losses at BAM International.
• Underperformance in German construction and Dutch civil engineering businesses.
• Asymmetric risk/reward balance on some large projects.
• Tight labour market, especially for skilled technology professionals.
• Uncertainty regarding nitrogen and PFAS regulations causing delays in building permits.
• Increased competition in the UK due to Covid-19 and Brexit.

Mitigation Strategies

• Implemented a cost reduction programme targeting €100 million annual savings.
• Wound down BAM International.
• Secured a waiver from lenders on financial covenants due to Covid-19 impact.
• Extended partnership with PGGM for BAM PPP.
• Focus on markets and projects with proven competitive strengths and lower risk profiles.
• Investing in employee development and employer branding to attract talent.
• Proactive engagement with clients and supply chain partners to address sustainability challenges.

Supply Chain Management

Supplier Audits: 2475 performance reviews (2019: 1391)

Responsible Procurement

• BAM’s general purchasing terms and conditions covering safety, human rights, and environment.
• Engagement with car leasing companies to increase electric vehicles.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather conditions

Transition Risks

• Changing client behaviour leading to increased demand for low-carbon products.

Opportunities

• Development of lower-carbon construction materials and zero-energy solutions.

Reporting Standards

Frameworks Used: International Integrated Reporting Council’s Integrated Reporting framework, CDP Climate A List

Certifications: BIM level 2

Third-party Assurance: Ernst & Young Accountants LLP

UN Sustainable Development Goals

• Goal 3
• Goal 4
• Goal 8
• Goal 9
• Goal 11
• Goal 12
• Goal 13

BAM’s business potentially impacts all SDGs, but seven goals have a more direct influence within current markets.

Sustainable Products & Innovation

• Zero-carbon products/services (4 in total)
• Circular asphalt mixture LEAB
• All-timber sports hall

Awards & Recognition

• CDP Climate A List
• CDP Forest Timber A-List

Environmental Metrics

ESG Focus Areas

• Project and Product Quality Control
• Employee recruitment, development and retention
• Health and Safety
• Diversity and Equal Opportunities
• Digitalisation and industrialisation
• Circularity
• Decarbonisation

Environmental Achievements

• Not disclosed

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Decarbonisation
• Circularity
• Climate adaptation
• Biodiversity
• Safety, health and inclusion
• Social Value

Environmental Achievements

• 56% reduction of scope 1 and 2 CO2 intensity versus 2015 (target: -50%)
• 60% reduction of construction and office waste intensity compared to 2015
• Maintained its position on the CDP Climate A List for the fifth consecutive year.

Social Achievements

• Implemented its five core values (Sustainable, Inclusive, Reliable, Ownership, Collaborative)
• Return on inclusion score of 55 (2021: 45)
• 320 apprentices directly employed, delivering 13,770 apprenticeship weeks. A data academy and digital apprenticeship scheme were launched.
• 554 members of BAM staff (circa 10 per cent of the total) completed 632.5 days of volunteering, equating to 5,027 volunteering hours.

Governance Achievements

• Further embedding and strengthening of risk governance in relation to the organisational structure
• Increased management risk dialogues
• Improvements in the effectiveness of internal controls regarding processes and systems
• Improvements in project control and reporting

Climate Goals & Targets

Environmental Challenges

• Challenging market conditions due to higher interest rates, political and geopolitical uncertainties, and pressure to attract and retain staff.
• Supply chain issues and cost overruns at a large project in Construction UK.
• Design issues and cost overruns at four non-residential projects in Denmark.
• Cost increases and higher interest rates leading to delays in project awards in the Netherlands.
• A BAM employee lost his life while working on one of the Group’s projects.

Mitigation Strategies

• Continued strategy to de-risk project portfolio by selective tendering and divestments.
• Focus on Product Market Combinations with attractive risk-reward profiles.
• Investments in BAM Flow wooden home concept factories and robotised production.
• Additional safety measures implemented to improve safety performance.
• Comprehensive Safety Leadership Survey to gain insights into safety culture.

Supply Chain Management

Responsible Procurement

• BAM Vendor Code of Conduct
• BAM Business Principles
• UN Guiding Principles on Business and Human Rights

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather
• Flooding
• Drought
• Heat stress
• Subsidence

Transition Risks

• Regulatory changes
• Market shifts
• Changes in client demand

Opportunities

• Development of energy-efficient products
• Energy transition markets

Reporting Standards

Frameworks Used: GRI Universal Standards 2021, EU Non-Financial Reporting Directive (2014/95/EU), EU Taxonomy

Certifications: ISO 14001, ISO 45001, ISO 27001

Third-party Assurance: Ernst & Young Accountants LLP (limited assurance)

UN Sustainable Development Goals

• SDG 7
• SDG 8
• SDG 9
• SDG 10
• SDG 11
• SDG 12
• SDG 13
• SDG 15

BAM’s sustainability strategy is aligned with selected UN SDGs.

Sustainable Products & Innovation

• BAM Flow wooden home concept
• GROENR BETON (sustainable concrete)

Awards & Recognition

• CDP Climate A List (5 consecutive years)
• Financial Times Europe’s Climate Leaders list