Climate Change Data

Environmental Metrics

ESG Focus Areas

• Occupational health and safety
• Customer satisfaction and quality
• Compliance
• Economic success

Environmental Achievements

• Reduced CO2 emissions from business travel (5,295 tons in 2015 compared to 7,184 tons in 2014)
• Reduced CO2 emissions from purchased energy (50,725 tons in 2015 compared to 51,488 tons in 2014)
• Identified a total potential energy savings of over 30,000 megawatt hours and 9,000 tons of CO2 using Tipcheck analysis since 2011
• Avoided the transport of nearly 1,000 tons of Australian garnet sand in 2014 and 2015 by using "Bilfinger Grit"

Social Achievements

• Reduced LTIF (Lost Time Injury Frequency) by nine percent in 2015
• Increased the proportion of women employees to 22.4 percent (from 20.3 percent in the previous year)
• Implemented SafetyWorks! program to improve safety awareness
• Supported 40 high-performing students through the Deutschlandstipendium

Governance Achievements

• Implemented a compliance program geared toward prevention
• Established a whistleblower system
• Consistently applied the principles of ethical business practice as formulated by the United Nations

Climate Goals & Targets

Environmental Challenges

• Data limitations due to decentralized organizational structure and country-specific features
• Not all locations integrated into central data collection for dangerous waste

Mitigation Strategies

• Introduced software for recording relevant environmental key figures in the Group
• Gradual expansion of the scope of data presented on dangerous waste in coming years

Supply Chain Management

Supplier Audits: More than 4,000 suppliers evaluated in 2015

Responsible Procurement

• Code of Conduct for Suppliers and Subcontractors
• Uniform Group-wide evaluation criteria including compliance, risk management, environment, cooperation, innovation, and occupational health and safety

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G4 (Core option)

Sustainable Products & Innovation

• "Bilfinger Grit" (alternative blasting material)

Environmental Metrics

ESG Focus Areas

• Economy
• Social aspects
• Ecology
• Customer satisfaction and quality
• Compliance
• Occupational safety and health
• Innovation
• Supply chain
• Equal opportunity and diversity
• Energy consumption and CO2 reduction
• Waste and resource management

Environmental Achievements

• Reduced maintenance costs by nearly 50% for a client using the Bilfinger Maintenance Concept (BMC)
• Increased plant output by 15% through innovative desalination using bypass technology
• Environmentally friendly remediation project using recycled materials and efficient techniques

Social Achievements

• Launched a Group-wide onboarding standard for new hires
• Implemented a trust-based flextime model at headquarters and several subsidiaries
• Expanded compliance training program to include bribery and corruption prevention

Governance Achievements

• Updated Code of Conduct to align with legal, regulatory, and stakeholder expectations
• Established a Compliance Review Board
• Merged Corporate Compliance and Corporate Legal & Insurance into a new department (Corporate Legal & Compliance)

Climate Goals & Targets

Environmental Challenges

• Difficulty in achieving a 0.9 LTIF target (Lost Time Injury Frequency)
• Inconsistent customer satisfaction survey methods across operative units
• Need for a more comprehensive approach to identifying relevant energy consumption indicators

Mitigation Strategies

• Introduced the “Safety Moment” to raise awareness of occupational safety
• Formed a working group to harmonize customer satisfaction survey methods
• Developing a concept for a new and more comprehensive basis for identifying relevant energy consumption indicators

Supply Chain Management

Supplier Audits: 2,303 suppliers assessed in 2016, plan to conduct targeted and systematic audits in 2017

Responsible Procurement

• Uniform Group-wide supplier management system
• Code of Conduct for Suppliers and Subcontractors
• Minimum requirements for compliance, risk management, environment, cooperation, innovation, and occupational safety

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Expansion of services for enhancing clients' energy and process efficiency

Reporting Standards

Frameworks Used: GRI G4 Sustainability Reporting Guidelines (core option)

Certifications: DIN EN ISO 9001 (approx. 75% of business units), OHSAS 18001 and SCC/SCP (approx. 60% of operative units), DIN EN ISO 14001 or DIN EN ISO 50001 (approx. 50% of operative units in the Industrial business segment)

Third-party Assurance: Not disclosed

Sustainable Products & Innovation

• Environmental technologies (e.g., flue gas desulphurization)
• Energy-efficient maintenance services
• Turnkey solutions for upgrading biogas to biomethane

Awards & Recognition

• Business Partner’s Health and Safety Award from Essar Oil

Environmental Metrics

ESG Focus Areas

• Economy
• Social aspects
• Ecology

Environmental Achievements

• LTIF (Lost Time Injury Frequency) decreased to 0.8, a 20% reduction from the previous year.

Social Achievements

• Achieved an LTIF of 0.9
• Central recording, coordination and release of all donation and sponsoring activities of the Group

Governance Achievements

• Introduced a new Code of Conduct binding for all employees worldwide.
• Numerous new Group Policies formulated and implemented for compliant behavior.

Climate Goals & Targets

Environmental Challenges

• Strategic repositioning in 2017 resulted in the sale of various business units, making it difficult to consolidate energy consumption data.
• Decentralized organizational structure and country-specific factors hindered complete information on all GRI performance indicators.

Mitigation Strategies

• Implemented a global standard for recording energy consumption and emissions data as of January 1, 2018.
• Expanded existing HSEQ software and trained users to facilitate data collection.
• Aiming for 80% energy consumption and emissions recording in 2018, with complete transparency by 2020.

Supply Chain Management

Supplier Audits: 413 suppliers assessed in 2016, including many category ‘A’ suppliers. A concept for assessing supplier compliance with external agency developed in 2017, to be tested in 2018.

Responsible Procurement

• Uniform Group-wide evaluation criteria (price, quality, compliance, risk management, environment, cooperation, innovation, occupational safety and health)
• Bilfinger Code of Conduct and Code of Conduct for Suppliers

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI standard: Core option

Certifications: DIN EN ISO 9001 (in around 73% of business units), OHSAS 18001 and SCC/SCP (in approximately 82% of units), DIN EN ISO 14001 or DIN EN ISO 50001 (in majority of operating units)

UN Sustainable Development Goals

• SDG 9: Industry, innovation and infrastructure
• SDG 7: Affordable and clean energy
• SDG 6: Clean water and sanitary facilities
• SDG 8: Decent work and economic growth
• SDG 4: Quality education
• SDG 5: Gender equality

Bilfinger's services contribute to these goals through various initiatives.

Sustainable Products & Innovation

• BCAP (Bilfinger Connected Asset Performance) digitalization solution

Environmental Metrics

ESG Focus Areas

• Integrity
• Sustainable Industrial Services
• Occupational Safety
• Employer Attractiveness
• Compliance
• Sustainable Supply Chain Management
• Customer Satisfaction & Quality
• Employee Development

Social Achievements

• Reduced Lost Time Injury Frequency (LTIF) by 11% to 0.66

Governance Achievements

• Compliance system certified by Compliance Monitor, ending the Deferred Prosecution Agreement (DPA)

Climate Goals & Targets

Environmental Challenges

• Work-related fatal accidents (one in Scandinavia, six in Eastern Europe)

Mitigation Strategies

• Special program implemented for affected companies to improve occupational safety measures, including regular reporting, workshops, and employee training.

Supply Chain Management

Supplier Audits: 115 suppliers evaluated in 2018 using Sustainability Self-Assessment Questionnaires

Responsible Procurement

• Group-wide supplier management system (HANDLE Procurement Suppliers)
• Code of Conduct for Suppliers
• Minimum economic, social, and environmental standards

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards: Core option

Third-party Assurance: Ernst & Young (EY) - Limited Assurance Review

UN Sustainable Development Goals

• SDG 4: Quality Education
• SDG 5: Gender Equality
• SDG 6: Clean Water and Sanitation
• SDG 7: Affordable and Clean Energy
• SDG 8: Decent Work and Economic Growth
• SDG 9: Industry, Innovation and Infrastructure

Bilfinger's activities contribute to these SDGs through employee training and development, equal opportunity policies, water desalination technologies, energy efficiency services, human rights promotion, and industrial services that enhance efficiency and reduce costs.

Sustainable Products & Innovation

• BCAP® (Bilfinger Connected Asset Performance)
• Industrial Tube
• PIDGraph

Environmental Metrics

ESG Focus Areas

• Good corporate governance
• Counteracting corruption & bribery
• Data security & data protection
• Occupational health and safety
• Employee development and diversity
• Human rights, labor rights and sustainable supply chain
• Emissions and energy
• Customer focus
• Quality management
• Sustainable industrial services

Environmental Achievements

• Initiated the foundation for measuring energy consumption and GHG emissions on a Group-wide basis.

Social Achievements

• Finalized the system implementation and roll-out of the SAP SuccessFactors software for HR management.
• Conducted a safety campaign titled 'Always Time for Safety' to raise employee awareness of workplace safety.
• 37 companies with 128 locations certified to DIN EN ISO 45001 and 11 companies with 53 locations certified to SCCP.

Governance Achievements

• Implemented a Group-wide risk management system.
• Established a Compliance Review Board (CRB) to manage and monitor the compliance management system.
• Implemented an Independent Allegation Management Committee (IAMC) to control and monitor internal investigations.

Climate Goals & Targets

Environmental Challenges

• Lack of complete and structured recording and internal reporting of energy consumption and GHG emissions prior to 2020.
• Failure to achieve targets for women in management positions in 2020 due to restructuring and lean design.
• COVID-19 pandemic significantly impacted business development and required adaptation of safety and operational measures.

Mitigation Strategies

• Developed a concept for Group-wide GHG reporting based on the Greenhouse Gas Protocol, aiming for Scope 1 and 2 emissions reporting in 2021.
• Set new targets for women in management positions for 2023.
• Established a Corona Intervention Team to define guidelines for managing the pandemic and implemented various measures such as social distancing, hygiene rules, and flexible working.

Supply Chain Management

Supplier Audits: Approximately 100 self-assessments commissioned from suppliers in 2020; risk-based IT-supported due diligence for partners exceeding a defined value limit.

Responsible Procurement

• Supplier Code of Conduct requiring respect for human rights and adherence to international principles.

Climate-Related Risks & Opportunities

Opportunities

• Services related to energy efficiency, green hydrogen, and CCUS.

Reporting Standards

Frameworks Used: CSR Directive Implementation Act (CSR-RUG), German Accounting Standards (DRS 20), UN Global Compact

Certifications: DIN EN ISO 14001 (34 companies), DIN EN ISO 45001 (37 companies with 128 locations), Safety Certificate Contractors Petrochemical (SCCP) (11 companies with 53 locations), ISO 27001 (central data centers)

Third-party Assurance: Ernst & Young Wirtschaftsprüfungsgesellschaft GmbH

Sustainable Products & Innovation

• Services related to energy efficiency, green hydrogen, and CCUS.

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Developed a concept for data collection of GHG Scope 3 emissions.
• Reduced Scope 2 location-based CO2e emissions by 30% (largely due to improved measurement).

Social Achievements

• Launched the Bilfinger Apprentice Campaign to attract vocational trainees.
• Increased the proportion of women in management level 1 to 11% (from 6%).
• Implemented a virtual series of talks on diversity.

Governance Achievements

• Established Group Executive Management (GEM) to improve decision-making.
• Increased the number of internal supplier audits to 600 (target for 2023).

Climate Goals & Targets

Environmental Challenges

• Data limitations in calculating Scope 3 emissions.
• Challenges in achieving Taxonomy alignment due to interpretation uncertainties in EU regulations.

Mitigation Strategies

• Phased approach to Scope 3 data collection (waste in 2022, other upstream categories in 2023, downstream in 2024).
• Detailed explanation of interpretation of EU Taxonomy Regulation in the report.

Supply Chain Management

Supplier Audits: 600 per year (target for 2023)

Responsible Procurement

• Declaration of Principles on Respect for Human Rights (2022)
• Code of Conduct

Climate-Related Risks & Opportunities

Opportunities

• Opportunities to influence customers' sustainability goals through services.

UN Sustainable Development Goals

• SDG 4 (Quality education)
• SDG 7 (Affordable and clean energy)
• SDG 8 (Decent work and economic growth)
• SDG 9 (Industry, innovation and infrastructure)

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Reduced Scope 1 emissions by 9% (to 32,594 tCO2e) and Scope 2 location-based emissions by 37% (to 10,370 tCO2e), and Scope 2 market-based emissions by 9% (to 12,723 tCO2e). Total energy consumption fell by 9% to 200,031 MWh. Increased share of renewable energy sources in total energy consumption to 9%. Collected data on Scope 3 upstream GHG emissions (795,085 tCO2e) for the first time.
• Exceeded internal supplier audit target with 1,167 audits conducted.

Social Achievements

• No work-related fatalities in 2023 (down from 1 in 2022).
• Improved LTIF and TRIF figures compared to the industry average.
• Increased proportion of women in management level 1 to 12% and management level 2 to 11%.

Governance Achievements

• Established Bilfinger education GmbH to secure qualified young talent.
• Implemented various training and development programs for high-potential employees and management levels.

Climate Goals & Targets

Environmental Challenges

• Shortage of skilled workers.
• Difficulty in obtaining individual consumption statements due to gross rents including supplementary costs at client sites.

Mitigation Strategies

• Investing a quarter of savings from the efficiency program in employee training and development from 2024.
• Developing concepts and implementing systems to collect key figures for new material topics identified in the 2023 materiality analysis (secure employment, working time, adequate wages, work-life balance, and equal pay).

Supply Chain Management

Supplier Audits: 1,167 in 2023

Responsible Procurement

• Statement of Principles on Human Rights
• Group’s Code of Conduct
• Third-party due diligence process for potential business partners.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Increasing awareness of climate change and the ensuing energy transition generating substantial opportunities.

Reporting Standards

Frameworks Used: Null

Certifications: DIN EN ISO 14001 (36 Group companies), DIN EN ISO 45001 (39 companies)

Third-party Assurance: Limited assurance

UN Sustainable Development Goals

• SDG 4 (Quality education)
• SDG 7 (Affordable and clean energy)
• SDG 8 (Decent work and economic growth)
• SDG 9 (Industry, innovation and infrastructure)

Bilfinger's sustainability targets support these SDGs.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed