Social performance

Ambition: to offer added value to clients, employees, business partners and the community

Introduction

With the strategy Building a sustainable tomorrow BAM also strives to enhance peoples’ lives and create a positive social impact. This chapter provides an overview of BAM’s social performance in 2021 related to:

  • Safety;
  • Social impact by community engagement;
  • Organisational development and employee engagement;
  • Human rights;
  • Business conduct and transparency;
  • Supply chain management.

Safety performance

BAM aims to prevent all occupational accidents. BAM is pleased to inform that no fatalities have taken place during 2021. The Company regrets the (serious) accidents that involved people whose safety BAM is responsible for. Safety performance at BAM is measured using the incident frequency (IF). The target for IF was not achieved in 2021.

The IF indicator denotes the number of occupational accidents resulting in lost time (absence from work > 1 day) per million hours worked on construction sites. The overall IF indicator comprises two categories:

  • IF BAM: Incident frequency BAM site-employees
  • IF Total: Incident frequency including all employees working on sites managed by BAM (BAM employees, hired, subcontractors’ employees) and third paties.

The IF Total metric takes into account not only BAM site-employees, but all workers who are working on sites for which the Group is responsible for management of the site. BAM uses the IF Total metric for its internal reporting and for improvement of safety performance. Currently, BAM does not report this metric externally as the data accuracy and completeness is not mature enough across BAM. The main challenge lies in collection of data on the exposure hours of subcontractors and third parties and the completeness of incident reports from subcontractors and third parties, especially regarding lost-time, non-serious accidents. 

15 Incident frequency (IF BAM) by country
(x 1 million worked hours)

IF BAM
In 2021, IF decreased to 4.5 (2020: 5.3), which was above the 2021 target of IF ≤ 3.5. The IF in the markets in Germany and Belgium remains high. 

In The Netherlands, United Kingdom, and Ireland combined the IF BAM decreased from 4,1 in 2020 to 2,3 in 2021. This is a promising result. However, additional measurements over time are necessary to assure an ongoing trend.

Serious accidents
BAM is highly committed to prevent all incidents and feels responsible for all people who are involved in or are influenced by the activities of the Group. This includes employees, clients, partners, suppliers, subcontractors and members of the public. 

In 2021, 83 Serious accidents (BAM employees, hired, subcontractors’ employees, third parties) were reported, a decrease of 26 per cent compared to 2020 (112 serious accidents). 

An accident is classified as serious when an employee is hospitalised for more than 24 hours or involves an electrocution, amputation or fracture (including a hairline fracture in the bone). Serious accidents can be with and without lost-time and are therefore not always included in BAM’s IF figure (that only includes lost-time accidents).

BAM safety behaviour audit
Safety behaviour audits (SBAs) were performed until 2019. An SBA 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.

The SBAs used to be coordinated by BAM Group functions. In 2020, no SBAs were carried out due to the Covid-19 pandemic. In the first half of 2021 a reorganisation took place at BAM Group functions. BAM made the decision to decentralise activities related to safety performance and procedures, enabling the operating companies to tailor safety procedures and activities to their particular working environment. Due to the reorganisation the centrally organised worldwide SBAs have been phased out.

Compliance
To show clients and partners that BAM complies to international occupational health and safety standards several audits are performed across the Group. Operating companies are NEN-ISO 4500 accredited, AMS BAU certified, and/or assessed on the Safety Culture Ladder. These assessments are performed by external auditors.

NEN-ISO 45001 specifies requirements for an occupational health and safety management system and gives guidance for its use. This aims to enable organisations to provide safe and healthy workplaces by preventing work-related injury and ill health, and proactively improving BAM’s occupational health and safety performance.  

BAM is proud of the NEN-ISO 45001 accreditation received by the following companies in the Group: BAM Bouw en Techniek, BAM Wonen, BAM Construct UK, BAM Nuttall, BAM Contractors Ltd, BAM Galère, BAM Interbuild, BAM Contractors bv, BAM PPP, and BAM International. 

Wayss & Freytag Ingenieurbau is AMS BAU certified. This certification fits the construction industry as it takes into account specific conditions such as constantly changing workplaces, weather influences and special contractual agreements in the construction industry.

BAM’s Dutch operating companies continue to make progress on the Safety Culture Ladder (SCL). This is an assessment method for measuring safety awareness, culture and behaviour. The higher the safety awareness in an organisation, the higher the assigned step on the SCL. The SCL is the basis of a certification system for different sectors where physical safety is a greater risk, such as construction, energy and the chemical industry. 

In 2021, BAM’s Dutch Construction and Property segment retained step 3 out of 5. The auditor noted that the focus is shifting towards creating a safety culture. The organisation communicates openly about accidents and people learn from each other. To achieve a next step, BAM will work on further intensifying safety awareness throughout the value chain and with all partners. 

BAM’s Dutch Civil engineering segment maintained step 5 out of 5 (Rail, and Spoorse Kabels) during the audit performed in Q4, 2021. BAM DLP maintained step 5 of the SCL. Regionaal Wegen, Verkeerstechniek, Asfalt, Projecten, Funderingstechnieken, and Asset Management moved from step 3 to step 4. Infraconsult and Regionaal Civiel maintained their step 4, Materieel maintained step 3. The auditor noted the open culture wherein people hold each other accountable for each other’s safety and the important role of Safety Coaches. The ambition for next year is to strengthen the current position across the value chain. 

As of 1 January 2022, clients that signed the Governance Code Veiligheid in de Bouw (GCVB) include safety awareness as a mandatory theme in tenders and contracts. This will prioritise safety further on the agenda in the Dutch construction markets.

Safety activities 

BAM works hard to increase safety performance and culture and to maintain compliance to rules and regulations. Processes are in place to ensure the Company learns from successes and failures to prevent accidents from happening in the future. 

A selection of activities to improve the safety performance that took place across the Group:

BAM Safety Day
The most recent BAM Safety Day took place on 12 October 2021. During this annual event, BAM focuses on highlighting the importance of the choices made at work and at home, and how these can have a significant impact on the safety and well-being of its employees and the people BAM works with. Across BAM’s locations, several activities were organised to increase awareness of specific safety-related topics and to encourage people to come up with ideas to further improve safety for every person working for or with BAM. 

An important improvement in 2021 was that well-being was included for the first time. BAM recognises that mental well-being is interconnected with physical well-being. Stress can manifest itself in physical discomforts, and vice versa. When someone experiences stress, there is an increased risk of poor decision-making on the work floor, which may lead to physical accidents occurring. 

During the BAM Safety Day, the operating companies reflected on their safety performance and organised activities focusing on their most important safety and well-being challenge. Examples of activities that were organised this year included among others: seminars, masterclasses, workshops, and discussions on stress, lifting, scaffolding and subcontractor engagement.

Good practices across the Group 
Operating companies are further digitising the incident reporting process. As of 1 June 2021, BAM Construct UK launched the Incident Reporting App across the business. This application increases accuracy, accessibility of incident reporting and is connected to a dashboard view in Power BI to respond to trends.

The team at Her Majesty’s Revenue and Customs Government Hub project is using QR codes to provide easier access to the safety observations logging system for employees and the general public. The QR code automatically directs the user to a pre-filled editable text message that can easily be filled in on the spot.

During the last quarter, BAM Bouw en Techniek started with the implementation of Bouwpas and Safesight on two construction locations. Construction site workers get the Bouwpas-app on their phone. The app is integrated with Safesight and can therefore be used to create notifications, instructions, and alerts. Bouwpas helps BAM to be compliant to rules and regulations and decreasing administrative procedures for the contractor. 

In November 2021, BAM Energie & Water Noord-Oost organised ‘Subcontractors and employee days’. Open dialogues were facilitated on health and safety. More than thirty subcontractors participated in this day at BAM Infra Materieel in Nieuwleusen. Every afternoon for one week representatives of subcontractors and BAM employees held conversations about contemporary topics.

Throughout the year, BAM Contractors Ltd (Ireland) reviewed safety performance through ‘Planned versus Actual Reviews’ wherein the project team reviews whether the original plan was practical and safe, and identifies a better way to deliver the task. The process identifies whether additional coaching or other resources are required to complete the task successfully. 

Across the Group, safety conversations within the project teams remain a valued ongoing best practice. The topics of the safety conversations are extended based on current themes. In November there has been a Winter Working Safety Conversation at Newmains. In July 2021 BAM Construct UK produced safety conversation cards on women’s safety and diversity issues, on male-dominated construction sites. The cards are open questions about physical and sexual violence against women, how to make women feel safer (especially at night) and avoiding negative behaviours like ‘mansplaining’ or leering and wolf-whistling. 

Reinforced BAM Alcohol and Drugs Policy
In March 2021 BAM communicated about the new more stringent BAM Alcohol and Drugs policy through various channels in the Dutch operating companies and at Group Functions. The communications campaign was organised around the ‘Bewust Veilig Dag’ on 24 March 2021. 

Royal BAM Group makes it an absolute condition that all employees, subcontractors and others who work for BAM and carry out work at BAM locations, such as construction sites, offices and depots, perform their tasks and/or participate in traffic for business mileage or commuting without being under the influence of alcohol or drugs. Following the reinforced policy, any alcohol reserves for organised celebrations and jubilees have been removed from all BAM locations.

In the event of violation of the Alcohol and Drugs Policy disciplinary measures will be taken. The individual circumstances regarding the incident will be taken into consideration when determining this measure. Possible measures include giving a (final) written warning, being suspended from work or being fired (either immediately or otherwise). 

BAM has informed and involved employees via personal email messages to management and employees, news articles on BAM Connect (intranet), posters and verbal toolbox meetings on project sites. Poster material was provided in: Dutch, English, German, Polish, Romanian, Turkish and Portuguese.

Social impact

BAM recognises the potential social impact the Company can have delivering its products and projects. BAM continuously tries to work with local communities, subcontractors, suppliers and strategic partners to explore opportunities to increase the Company’s social impact. In the United Kingdom, BAM has established a social value portal where social value of projects is captured. Over the past two years, more than 200 million euro added social value was reported in this portal, working towards a target of minimum 15 per cent of social value added across BAM’s projects in the United Kingdom.

Community engagement progress
In 2021, local community engagement programmes regarding the impact of building projects on the local environment were implemented in 30 per cent of BAM’s projects (2020: 28 per cent). These initiatives formed part of existing programmes, such as the Considerate Constructors Scheme (CCS) in the United Kingdom and its Dutch equivalent Bewuste Bouwers, as well as unique initiatives by engagement managers on projects and site-specific sponsoring or charity work.

In the United Kingdom, 18 CCS projects were registered in 2021. 54 sites were registered under the scheme in the Netherlands (2020: 58) and the average audit score in 2021 was 7.7, above the industry benchmark of 7.6.

Organisational development and employee engagement 

From a human resources perspective BAM strives to enhance peoples’ lives. Covid-19 provided challenges for BAM in connection with human resources. Due to this time the health and well-being of employees is the most important thing. Keeping connected to employees and measuring the engagement of BAM’s employees became even more important. In 2021 BAM launched a new platform called BAM Engagement where they used it for employee engagement measures and specific information around Covid-19. Furthermore, office-based employees have been working from home as much as possible across the Group.

To enable the implementation of the strategy for 2021-2023 ‘Building a Sustainable Tomorrow’, it was necessary to implement a restructuring programme. The vision of this programme was to create a sustainable and profitable business with a strong focus on the engagement and well-being of BAM’s employees, which could be achieved by saving costs, simplifying the organisation, synergising where possible, stopping non-business critical spend and programs and at the same time strengthening BAM. By April 2021 the target of 120 million savings has been reached and the next steps towards the new strategy were taken. BAM started the business transformation and created a new operating model and at the same time started transforming the culture of BAM.

BAM People
BAM People is the human resources self-service portal used in the Netherlands, United Kingdom, Ireland and Belgium. BAM People contributes to the achievement of BAM’s strategy through uniform processes, digital collaboration and unambiguous reports. Next to a simplified and standardised HR process, this is also an important step in BAM’s focus on employee experience. The BAM People experience helps creating an engaging and personalised experience from start to end. This is done by meeting people’s needs and facilitating their careers without bias, while creating relevant experiences to increase their efficiency. By digitising HR BAM can provide faster responses and resolutions while maintaining optimum performance.

Learning
Via BAM Learning, employees have access to all trainings available. They can select a training based on personal needs, and after approval from their manager attend the training. Implementation of BAM Learning continued for the United Kingdom and Ireland during 2021.

Employee engagement
BAM continues to attach great value to the engagement of its employees. Starting 2021 BAM launched a new platform called BAM Engagement. Via a digital and frequent pulse approach a standardised set of questions, aligned to company strategy, is sent out periodically. Outcomes are available in real time in an online dashboard. With smart analytics and algorithms, BAM aims to become an even greater employer of choice and use these insights to improve the most important people related KPIs. BAM can add additional questions if the circumstances ask for more detailed information: this was done during Covid-19 and the strategy transformation.


Digital engagement at BAM 2021 digicon event

In November BAM hosted DigiCon21, an internal online event with the goal to inspire our teams with a vision of the future of construction in order to enable better decisions today. This event brought together employees across Royal BAM Group with more than 60 presentations, interactive sessions and panel discussions to raise awareness of digital ways of working across six themes – thinking digitally, data, data data, industrialised construction, it’s a 3D world, value of digital and sustainable tomorrow. The event included over 15 speakers from supply chain partners and was well supported and sponsored by key suppliers including Autodesk, Esri, Hexagon Leica, Allplan and Holobuilder.



Labour relations - European Works Council 
The European Works Council (EWC) was involved at an early stage in BAM’s new strategy in 2021. The proposed sale of the Belgian and German business units was also discussed in this context. In connection with Covid-19, the information meetings with the European Works Council were all held digitally.

Recruitment
Diversity and inclusion remains a key focus when acquiring talent to join BAM.  

BAM does not underestimate the importance of people and the ongoing need to diversify its workforce to resemble the communities BAM serves. In 2021, throughout the recruitment processes from early careers to senior leadership, the talent acquisition team initiated various activities such as developing educational materials for hiring managers on the topic of diversity and inclusion, positioning BAM as a female friendly business when celebrating BAM women during International Women’s Day.  

BAM has also taken continual steps to modernise how it recruits diverse candidates into the business, such as providing hiring managers with non-binary guidance, a recruitment survey tool to monitor gender diverse target audience feedback, how to guide on how to speak inclusively during the recruitment process, writing gender neutral job adverts using the job analyser tool which identifies words used within job adverts are balanced and not too masculine nor feminine.  

Gender diversity has been BAM’s focus in 2021. 27 per cent of the hires were female against a target of at least 25 per cent and the attrition rates by gender were monitored to ensure that female talent did not leave BAM disproportionately. Please find key metrics on the performance in figures 17, 18, and 19.

At a leadership level BAM is working towards a more diverse senior leadership team to be a role model to the rest of the organisation and BAM’s focus on inclusivity also encourages to attract and build a generation of young digitally minded talents from diverse backgrounds and expertise. 

While BAM continues to advance inclusion and diversity efforts, it is committed to further progress. 

Diversity and inclusion
Diversity and inclusion is a key focus area of BAM’s new strategy, and as such has had great emphasis in 2021 to provide clarity on the current position and accelerate diversity and inclusion as a key business priority and embed it in operational plans. 

The Supervisory Board, the Executive Board and the Executive Committee recognise the benefits and importance of diversity in their composition. The profile of the Board includes a minimum of 30 per cent target for female and male Board Members. 

This target applies mutatis mutandis to the Executive Board and the Executive Committee. The present composition of the Supervisory Board is in line with the targets set. As BAM has only embarked on the transformational period in 2021, no new appointments to the Executive Board or Committee have been made yet. 

In 2021 BAM continued to embed diversity and inclusion policies across people processes. Examples include a standardised company-wide performance and development approach, diversity and inclusion recruitment guidance to managers and mentoring programs across all countries (incl. reverse mentoring), contributing to a more inclusive organisation where diverse talent can work at their best. BAM also continued to emphasise the importance and consistent application of its senior leader selection guidelines which is driving a more inclusive dialogue and more diverse outcomes. In 2021 there are already clear results of interventions undertaken, for example in the early career population a significant increase in diverse talent was shown – examples: 40 per cent of BAM’s group graduates are women and in the early career programmes in the United Kingdom, there are up to four times the industry average employees with ethnic minority backgrounds. 

BAM remains committed to overall development of talent, including utilisation of stretch assignments, where employees gain diverse experiences to prepare for more senior roles. BAM applies key performance indicators and diversity ratios in talent practices (including succession planning) to support the acceleration of diverse talent. In 2021, these indicators contributed to more diverse succession plans in parts of the Company (27.5 per cent of identified successors for senior leaders positions is women, against a total population of 19 per cent women). BAM aims for 33 per cent of nominees for senior management positions to be women.

BAM also engaged in a company-wide data-driven Return on Inclusion review, assessing current practices and their effectiveness in delivering policy and inclusive practices. These results are shaping the next phase building on achieved successes to date and ensuring targeted interventions across BAM in 2022.

Mental health
BAM is committed to supporting, promoting and maintaining the overall well-being of its employees through awareness raising, training, guidance, and workplace practices, encouraging individuals to take ownership of their own mental health and well-being and that of others, particularly in the face of the challenges of Covid-19. Mental health support for employees is provided at varying levels across operating companies and includes well-being rooms/gardens on sites and in offices, regular communication to employees, access to company doctors, employee assistance programmes, telephone numbers, one-to-one and on-line counselling, mental health first aiders and well-being champions, line managers and Human Resources. In 2021, BAM Nuttall won a prestigious well-being award for best practice at site or project level. 

To support the worldwide suicide prevention campaign BAM worked closely with The Lighthouse Charity and produced a short film called ‘On the edge’ that is thought provoking and aims to reach those who are affected to find a way to talk about the way they are feeling.

Levels of engagement and success are measured through surveys and absence rates. Some operating companies additionally offer flexible working to support the work/life balance, well-being days and a volunteering day and promote well-being within their supply chain. 

Leadership programmes
In 2021 BAM continued with the three leadership programmes that were developed in the last three years: Olympus Leadership Programme (for senior project managers), Enterprise Leaders Programme (for directors and managers) and Future Leaders Programme (for young professionals identified as talent with management potential). In all leadership programmes, blended personal coaching is an integrated part of the journey and beyond. Due to Covid-19 BAM decided in March 2020 to postpone all leadership programmes (face-to-face delivery). This action was taken in line with general measures to control the spread of the virus, and to safeguard the health of BAM employees. In 2021 the leadership development journeys of programmes that were postponed in 2020 were completed virtually. All leadership programmes are now available with a virtual delivery option.

In 2021 BAM re-designed and re-started the Enterprise Leaders Programme/Olympus. The Olympus programme was merged with the Enterprise Leaders programme, introducing a separate module for Senior Project Managers as well as a separate one for Business Leaders. 

In 2021 BAM designed and started a new programme aimed at all people managers, called the People Management Essentials Programme. This programme is launched in support of BAM’s strategy and performance management approach, guiding all managers across BAM in applying the leadership style needed to offer the best environment for employees, and to bring business success.

16 Female/male employees by region
(in % of total employees)  

  2021 2020
Netherlands 14/86 13/87
United Kingdom 26/74 26/74
Ireland 20/80 23/77
Belgium 15/85 16/84
Germany 18/82 24/76
Rest of the world 9/91 7/93

17 Employees per gender by employment type
(in %)

 
  2021 2020 2021 2020
Full-time 94 93 57 57
Part-time 6 7 43 43

18 Employees per employment contract by gender in 2020 
(in %)

  Permanent contract  Temporary contract
96 4
97 3

19 Employees per management category by gender in 2021 
(in %)

  Seniormanagement Middlemanagement
18 14
82 86

20 Employees by age group 
(in %)

Age group 2021 2020
 13 15
30-39 21 22
40-49 25 25
50-59 28 27
60-64 10 9
65> 2 2


Annual total compensation by country
In 2021, the annual total compensation ratios were relatively stable in most countries of operation, as indicated by the overall similarity of compensation ratios between 2021 and 2020. This shows that the difference between the highest paid individual and the average annual total compensation for all employees did not change substantially in general.

Please note that BAM Deutschland, divested before December 2021, is not included in the overview for Germany. For the sake of comparability, the 2020 figure of Germany has been restated accordingly.

21 Annual total compensation by country

    2021 2020
   Change of ratio ratio ratio
Netherlands 0%  12.7  12.8
United Kingdom 21%  8.2  6.8
Ireland (8%)  5.8  6.3
Belgium (29%)  2.4  3.4
Germany (3%)  4.7  4.9
Rest of the world 1%  19.8  13.2


Human rights

Human rights are a relevant subject for BAM and its stakeholders. The value of rights and freedoms of people play a central role in both BAM’s direct operations as well as in its purpose to create sustainable environments. Human rights practices within BAM and its supply chain also affect the reputation of the Group and are associated with the risk of losing the license to operate. BAM’s policy to protect human rights is included in the Code of Conduct and underlying policies, such as the sustainability policy and procurement policy. The Group monitors reports related to human rights via the compliance organisation. In 2021 there were no compliance reports filed related to human rights incidents.

BAM focuses on three main areas in order to mitigate the risk associated with human rights:

  • Conducting a risk analysis to understand and mitigate the risk of slavery and human trafficking in the business and supply chain. In the United Kingdom, BAM worked with a third party, Action Sustainability, to conduct a high-level risk assessment of its supply chain through its spend and where there is potentially a higher risk of human rights and modern slavery issues. The main risks identified by BAM relate to materials supplied by contractors that are sourced outside the EU and may involve the use of low-skilled or migrant labour. Based on this exercise, BAM has identified categories of expenditure for further assessment and supply chain engagement;
  • Ensuring compliance and due diligence activities in the chain of subcontractors and suppliers. There is a robust procurement organisation and a focus on preferred suppliers to ensure quality in the supply chain. Part of the procurement process is to mitigate risks by ensuring that suppliers and subcontractors comply with BAM’s general terms and conditions of purchase. Through its general terms and conditions of purchase, BAM explicitly obliges its contractors to comply with the BAM Code of Conduct, the BAM Business Principles (see www.bam.com) and the United Nations Guiding Principles on Business and Human Rights. In order to monitor compliance with this obligation, BAM may conduct audits of its contractors;
  • Training and engaging BAM employees is done through e-learning. Furthermore, priority suppliers are trained through the supply chain school in the United Kingdom.

Industry engagement in human rights initiatives
BAM has a framework agreement with Building and Wood Worker’s International (BWI), to promote and protect employee rights. For practical reasons related the fact that BAM decided to wind down BAM International and the fact that the wind-down is nearing completion, no social audits were done during the year. In 2021 there was no substantive response from BWI to the text proposed by BAM for a new framework agreement, and BAM does not expect the framework agreement to be renewed on the short term. Therefore, the Framework Agreement from 2006 is still fully applicable. 

Driven by the Modern Slavery Act in the United Kingdom, the focus on human rights has activated collaboration with government and peers, amongst others through the Supply Chain Sustainability School, to collectively improve industry performance on sustainability issues, including modern slavery. An example of a BAM Construct UK, Modern Slavery Statement, is available on www.bam.co.uk. 

Business conduct and transparency 

BAM is committed to being an ethical company and to live up to the highest standards of honesty and integrity in the way it does business with clients, suppliers and within BAM. BAM’s Code of Conduct and underlying policies further define how to do the right thing and remain true to the BAM core values. Living the Code of Conduct contributes to a safe, ethical and sustainable culture and protects the future of BAM. New employees must sign a statement in which they acknowledge to comply with this code as part of their employment contract with BAM. 

BAM believes that communication and training are fundamental to make and keep the objective and content of the Code of Conduct alive in the organisation. Therefore, an e-learning tool is used to train selected employees on the code. The training, available in Dutch, English and German, is mandatory for (new) white-collar BAM employees. Progress is closely monitored and reported to management. The objective is to reach around 95 per cent completeness on an ongoing basis, taking into account fluctuations due to new starters. The status during the year was close to the 95 per cent. It was 93 per cent per year-end. BAM’s blue-collar employees are trained through so-called toolbox meetings. BAM strongly believes in a targeted approach for the different working groups to achieve optimum understanding and adaptation.

Furthermore, BAM has a robust speak-up process, including an independent speak-up line to report suspicions of misconduct. BAM maintains a speak-up platform, featuring experience stories and possibility to discuss dilemmas based on conversation starter cards. Furthermore, in 2021, the compliance officers within BAM continued with workshops and dialogue sessions across the company and providing advice to questions from employees.

In 2021, several cases were reported within the various operating companies. This was in line with previous years. The reported suspicions of misconduct have been assessed and, where needed, sanctions have been taken, up to and including dismissal. Reported cases dealt with issues such as inappropriate use of company assets and privacy breaches of which a limited number needed to be reported to the external local privacy authorities.

BAM’s Ethics and Compliance Committee supports the Executive Committee and the operating companies with the compliance programme, actual compliance matters and remedial actions. It ensures consistency across the Group. Reported suspicions of misconduct are discussed on a quarterly base with the Executive Committee and every six months with the Audit Committee of the Supervisory Board. Furthermore, on a yearly basis the effectiveness of the management approach is assessed and improvement activities are captured in the operating plan of the compliance function.

Corruption Perception Index
The Corruption Perception Index (CPI) is calculated by Transparency International, which focuses on the strict application of the UN Convention against Corruption. The CPI classifies countries according to their perceived level of corruption on a scale from 0 to 100. BAM mainly operates in Europe, which explains the overall score. BAM obtains its main turnover in countries with a low or very low risk of corruption.

22 Revenue according to Corruption Perception Index
(in %)

Supply chain management

BAM is involved in many stages of the construction value chain, from development, engineering and construction to maintenance and operation. Suppliers are essential in all this, as their knowledge, people and other resources provide more than 70 per cent of BAM’s revenue while bringing added value to clients. 

Large supply categories include concrete works, steel construction, mechanical and electrical engineering and facades. Most of these are typically sourced from preferred suppliers close to construction sites. 

BAM aims to increase social and environmental awareness, and continuously look for opportunities to jointly improve both sustainability performance and that of BAM’s suppliers. Its suppliers and subcontractors are subject to BAM’s general purchasing terms and conditions, which cover commitments to safety, human rights and the environment. 

BAM Group’s Procurement department put a lot of focus and effort in 2021 to improve the quality of vendor information. A major project is ongoing where Dutch vendors that deliver to the Dutch operating companies are onboarded in a uniform way. Based on a vendor’s profile their information is updated and kept up to date by a third party that specialises in collecting and managing vendor information for the Dutch construction industry. All vendor related information is collected in a single database from which secondary systems are fed. Further roll-out and connection of additional sources will continue in 2022. Also in the United Kingdom, a first step has been taken towards a maintaining a central vendor database, which will be improved and expanded further in 2022.

An initiative to further increase the number of, improve the quality of and follow-up on the yearly supplier and subcontractor performance reviews has been launched at the end of 2021, expected to be rolled-out in 2022.

The Procurement data-warehouse has been migrated in 2021 into a data-lake style solution, which will significantly improve reporting possibilities and performance of the reports. In 2022 additional sources will be connected, which combined with the improved vendor profiles mentioned above and the option to report on changes in data over time makes for powerful analytics options.

An example of BAM’s supply chain engagement is the ongoing engagement with car leasing companies across the Group. BAM’s vehicle fleet accounts for around 30 per cent of BAM’s direct CO2 emissions. BAM has the ambition to further increase the share of electric vehicles in its vehicle fleet. As a result of this engagement, the number of full electric vehicles within BAM increased from 269 (December 2020) to 354 (December 2021), a share of 7 per cent of BAM’s lease fleet.

Outlook

BAM will continue to learn from accidents, near-accidents and dangerous occurrences. Where appropriate, these are thoroughly and objectively investigated. 

With the new operating model BAM is decentralising responsibility regarding safety performance: BAM Group takes on a reporting and facilitating role, while the responsibility for performance lies with the management of the operating companies, embracing the high level of expertise and experience available within these companies. 

Significantly less lost-time accidents take place at the operating companies in the Netherlands, United Kingdom and Ireland, compared to Germany and Belgium. With the ongoing divestments of the Belgian and German operating companies the accidents in these markets are no longer in scope of BAM. As a result, BAM expects a decrease in BAM’s reported incident frequency after the divestments have been completed.

In 2022 BAM will be focussing on implementing the new organisation structure as a result of the implementation of the strategy ‘Building a sustainable tomorrow’. Continuing and evolving the leadership culture is one of the key focus areas. Also, diversity and inclusion will have a lot of attention. In a genuinely inclusive organisation, people can work together effectively without fear or discomfort. And when BAM proactively accommodates different needs, everyone can thrive professionally.

 

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