Non-financial reporting process and methods

Reporting criteria: GRI Standards – Core
This report has been prepared ‘in accordance’ with the GRI Standards: Core option. An overview of the GRI disclosures covered by this report is available on BAM’s website (www.bam.com/en/sustainability/reports-and-policies). In this overview, more information is disclosed on the nature and coverage of reporting per GRI disclosure (e.g. quantitatively or qualitatively).

Reporting period and reporting frequency
This report presents both quantitative and qualitative data for the calendar year 2019. For some operating companies or topics an exception is made and a reporting period of 1 December 2018 to 30 November 2019 is applied. BAM allows for this different reporting period when due to a complex operating and reporting structure more time is required to ensure that the reported data are reliable and adequate. BAM considers the effects of a different reporting period as not material to the Group’s integrated report. There have been no significant changes from previous reporting periods in the scope and boundaries.

Reporting boundaries
Sustainability performance and data are accounted for according to BAM’s share of equity. As an exception to this rule, BAM International reports all sustainability data for joint arrangement projects in which it is the leading party. In general, BAM views disclosure regarding acquisitions and divestments on a case-by-case basis.

Reporting process
The integrated report, including all material aspects, is compiled by the Executive Board and discussed with the Supervisory Board. BAM uses a reporting system for non-financial information (including safety, CO2, waste and HR), as an extension of the financial reporting system. The applied reporting processes and definitions are formalised in BAM’s non-financial reporting manual, which provides guidance on how to collect, consolidate and report data.

Reporting indicators
For BAM’s main non-financial indicators this chapter provides further insight below. For other quantitative indicators disclosures on the reporting scope and methods used are given elsewhere in this report.

Safety
BAM defines its incident frequency (IF) as the number of BAM employees (not including site employees outsourced to external companies) involved in industrial incidents leading to absence from work per million hours worked on construction sites. Reportable incidents are based on actual occurrences and are never extrapolated or estimated. Despite all measures and an open safety culture there is an inherent risk of incomplete accident reporting. BAM is partially dependent on information provided by the person involved in an accident. Reported hours are measured, calculated or estimated. The absolute number of reported serious accidents covers all BAM employees, subcontractors, hired employees and thirds on own projects and BAM employees, BAM subcontractors and direct hired employees by BAM on joint ventures.

For all companies, except for BAM International, BAM includes only employee-related accidents and hours. BAM International takes into account all persons working under its direct supervision even though they may not have a labour contract with BAM directly. As a result, the accidents and hours worked by all persons working under the supervision of BAM International and irrespective of their labour contract are included in the reported incident frequency.

Creating uniform safety reporting across all operating companies is one of the strategic objectives which create access to the right management information. BAM is in the process of enhancing the reporting process for worked hours of subcontractors. The Group strives to obtain reliable information by implementing automated on-site entrance systems such as tourniquets, fingerprint readers, iris scans and card systems.

BAM safety behavior audit
The audit was carried out following the official BAM safety behaviour audit (BAM-SBA) questionnaire 2016, which is aligned with the BAM Health and Safety Directive of January 2015. The audit template consists of the sections: safety climate, management system and site conditions. Each section is scored independently with all elements collated to provide the overall score. Additional points may be added for innovative practices and where areas of concern, points deducted. The scoring of the various sections is marked from 1 to 5 as below:

No evidence of commitment

Poor

0% - 40%

Slight evidence of commitment

Fair

41% - 60%

Commitment evident but room for Improvement

Good

61% - 80%

Good commitment demonstrated

Very good

81% - 90%

Excellent commitment demonstrated

Excellent 

91% - 100%

Safety climate: management ambition and commitment to keeping workers safe is demonstrated through words and actions. Visual leadership coaching/ supporting the organisation, demonstration of intervention and enforcement where necessary.

Management system: safety policies, processes and procedures used to the task specific requirements (including resources) to achieve its safety objectives by risk management, supply chain management and continuous improvement. Demonstrate learning ability of the organisation. Compliance with the law and safety regulations (including the Royal BAM Safety Directive).

Site conditions: site setup, site logistics, collective and personal measurements to mitigate the task specific risks. Safe physical work environment and equipment. Demonstrate how to plan for safety and engage with the workforce.

The reported SBA score is the average of all individual operating company scores. It is the responsibility of safety officers from the operating company to organise the SBA interviews in detail and select the projects within the overall planning. Safety officers have to take into account the diversity in areas, business units, type of projects, phase of the projects. The selection of various projects could result into fluctuation of the score between the years. During all SBAs an independent person is present to oversee the results of all SBAs.

Human Resources (HR)
HR data are obtained twice a year using a standardised reporting platform. HR data are derived from the HR accounts held by BAM’s operating companies. Due to different definitions used, breakdowns in paragraph Organisational development and employee engagement are based on figures that do not match the total number of FTE in Key figures. This does not result in different insights.

Energy consumption and CO2 emissions
BAM’s energy consumption and greenhouse gas inventory is based on the Greenhouse Gas Protocol Corporate Accounting and Reporting Standard, Revised Edition (2013: Corporate Standard) as issued by the World Business Council for Sustainable Development and the World Resources Institute. BAM reports its greenhouse gas emissions as CO2 equivalent, taking into account other greenhouse gasses than CO2 . BAM calculates the energy consumption (in terajoules) and CO2 emissions associated with BAM’s energy consumption, using conversion factors from reputable and authoritative sources. BAM applies country-specific conversion factors for electricity and natural gas, based on GHG emissions reported in national inventory reports (NIR). BAM uses tank-to-wheel emission factors. All conversion factors are reviewed annually and updated if necessary.

The Group’s reporting scope includes its direct CO2 emissions (scope 1 emissions, from BAM’s own sources), indirect CO2 emissions from the generation of purchased electricity consumed by BAM (scope 2 emissions) and employee travel-related scope 3 emissions.

The GHG Corporate value chain (scope 3) accounting and reporting standard for full scope 3 reporting has not been implemented. Contrary to the Greenhouse Gas Protocol BAM reports fuel consumption by leased vehicles under scope 1 emissions. Energy consumption from district heating and use of public transport are considered negligible and therefore not included in BAM’s overall energy consumption and related CO2 emissions. The basis for consolidated energy consumption and CO2 emissions is activity data, which in turn are based mostly on meter readings, invoices and data provided by suppliers. Where reliable data are not available, BAM uses calculations or estimations using reliable methods and input data. BAM is satisfied that the estimates are reliable in all material respects.

Where clients provide BAM with electricity and BAM is able to receive reliable information on its client-supplied electricity consumption, the Company includes this consumption in its carbon footprint. Similarly, information received on CO2 emissions associated with air travel is included in BAM’s scope 3 emissions.

It occurs on projects that BAM supplies fuel and electricity to subcontractors. In accordance with BAM’s non-financial reporting manual the supplied fuel and electricity to subcontractors should be measured and excluded from reported figures, unless fuel and electricity are supplied under the supervision of BAM. In practice, however, it is not always possible to determine how much fuel is supplied to subcontractors. In that case BAM accounts for all CO2 emissions.

Waste
The reporting scope includes all waste leaving BAM’s sites and offices, mainly based on waste tickets and data provided by suppliers. Reported waste is either measured, calculated or estimated using reliable methods and input data which can be based on BAM’s experience in comparable works. Excavation waste and demolition waste are especially difficult to measure and are more often calculated.

Construction and office waste consists of temporary and permanent (construction) materials and packaging brought on to sites which are to be discarded and subsequently leave offices, construction sites and/or BAM sites such as depots or premises.

Materials
BAM reports the amount of materials used and the recycled content of various materials used by Dutch operating companies. Raw materials which are consumed in large quantities and which have a significant impact on natural resources have been selected. The Group reports on concrete, timber, asphalt and steel.

The raw material consumption in the Netherlands was determined using supplier reports. Extrapolation of data is applied to cover all suppliers. BAM aspires to keep the extrapolated data below 20 per cent. The results are verified against BAM’s procurement database, internal and external experts. The recycled content is determined based on information provided by suppliers.

True Price of asphalt
The True Price calculations of LE2AP and conventional asphalt are made by a third party and contain inherent estimates and specialised supplier data. The methodology has been checked for logic and consistency, yet it is known that different visions on the cost of CO2 are available and that the cost of CO2 is subjective. A comparison by True Price has been performed to evaluate the bandwidth of CO2 cost, in which a conservative estimate is used by True Price.

Local sourcing
For the Dutch companies BAM has investigated the extent to which its purchases are sourced locally. BAM has defined local sourcing as a purchase done with a supplier who is located in the same country as the construction site. BAM determines the percentage of local sourcing based on the country of residence of its suppliers.

Verification of this report
In order to provide BAM’s stakeholders comfort over BAM’s sustainability information, the Executive Board has appointed Ernst & Young Accountants LLP (EY) to provide independent assurance of the report. As in previous years, BAM has obtained reasonable assurance for the following KPIs: IF BAM, number of serious accidents, safety behaviour audit, as included in the ‘Safety’ section in Business performance. Additionally EY has provided reasonable assurance over the ‘Material themes’ section in Stakeholder engagement and material themes and the ‘Business conduct and transparency’ section in Social performance. For all other information reported in Business modelStrategyStakeholder engagement and material themesSocial performanceEnvironmental performanceNon-financial information* and diversity information reference tableMaterial themes and management approach BAM has obtained limited assurance.

 

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