Stakeholder engagement and material themes
BAM recognises that real business benefits can only be achieved by involving all stakeholders. BAM continuously engages with its stakeholders to understand their priorities and concerns through benchmarking, sector meetings, client surveys and direct contacts.
The Group has defined its stakeholders as those groups which significantly influence or are influenced by the economic, environmental and social performance of BAM. The Group has identified its stakeholders based on the risks and opportunities for its business performance, strategy execution and strategic objectives. BAM’s key stakeholder groups, and its interactions with those stakeholders are:
BAM is in daily conversation with its clients about project expectations and projections. In addition, BAM organises client meetings to share knowledge, best practices and innovation within its value chain. Maximum value for money is of upmost importance to BAM’s clients, and this extends beyond simply delivering a project for the lowest price. Increasingly BAM has been engaged with clients who seek to engage with contractors who’s sustainability performance delivers leading safety, innovation and socio-environmental outcomes with lasting benefits.
Providers of financial capital
Communication with investors, financial institutions and the financial community in general is actively pursued and usually takes place through meetings, project visits, road shows, seminars, presentations, investment meetings and press releases. The main recurring topics of discussion are financial performance, transparency and control. All dates and locations of road shows, seminars and other investor relations activities are published on the BAM website. In terms of environmental, social and governance (ESG) performance, BAM has responded to CDP’s investor information requests since 2008.
BAM’s employees are the company’s most important asset. As part of the performance management process, personal learning and development plans of employees are evaluated annually between manager and employee. Progress to meet annual targets together with personal growth and career development are discussed. BAM has active works councils within the operating companies to discuss organisational changes and other employee related matters. Employee engagement is facilitated through multiple platforms such as Young BAM events, open collaboration days, One BAM senior management meetings and online surveys through BAM Panel. In those events BAM aims to share learnings from projects, inspire employees with new ideas and collect feedback on what can be improved. In addition BAM is engaged and facilitates more informal interaction through the use of internal and external social media outlets. This ensures BAM stays connected with the next generation of BAM employees.
Suppliers and subcontractors
Supply chain partners are increasingly involved in the early stages of the bidding process and in the development and planning of BAM projects through lean planning meetings. This optimises the efficiency of the construction programme via the value chain. By involving its partners in an early stage, BAM invests in these relationships. Typical discussions between BAM and suppliers are around product and project quality and project progress. In projects suppliers and subcontractors play a large role in delivering performance on health and safety and innovations around circular economy and CO2 reductions.
By their nature, the construction and civil engineering works of BAM have an impact on local communities. BAM builds facilities which society needs, such as housing, hospitals, schools, leisure and industrial facilities, utilities and infrastructure. Main discussion points differ per governmental body, but health and safety as well as human rights are common. Chapter 3.2 of this report describes BAM’s results and provides examples of its activities for social involvement in 2018. BAM’s target of enhancing one million lives shows its ambition to increase its positive impact on local communities.
By delivering projects, BAM is in constant contact with local government authorities about issuing permits, compliance with regulations and monitoring its activities. BAM is involved in many governmental initiatives including several Green Deals in the Netherlands. BAM is a member of multiple Green Building Councils throughout Europe. BAM aims to engage regulators in issues such as health and safety management, carbon-free buildings, carbon impact in the infrastructure lifecycle and other sustainability-related issues within the built environment. An example is Advancing Net Zero, a World Green Business Council global project which aims to promote and support the acceleration of net zero carbon buildings to 100 per cent by 2050.
In addition to its engagements with individual stakeholder groups across the business, the Group organises annual multi-stakeholder meetings hosted by CEO Rob van Wingerden. A wide range of stakeholders participates in this event. During the 2018 annual stakeholder dialogue cross-industry trends and movements throughout the entire construction value chain were addressed.
‘Working together towards a sustainable future’ was the central theme in the 2018 multi-stakeholder dialogue. At this year’s special edition, stakeholders and BAM colleagues were invited together with their children. Stakeholders who joined the dialogue were some 137 representatives of clients, financial institutions, suppliers, architects, startups, NGOs, and knowledge institutes that are actively involved with BAM. BAM facilitated discussion tables around the following themes: smart cities and mobility, circular economy, healthy urban living, life cycle values, energy transition and digital construction. These themes are all big societal challenges that no single party in the value chain can solve on its own. The themes are important for BAM’s long-term strategy and with innovative solutions BAM shows how it contributes to the Sustainable Development Goals. This requires cross-sectoral collaboration, which can only be achieved if organisations and people from different sectors are willing and able to think, learn, communicate and collaborate across the boundaries that used to divide them.
Discussions for both current leaders and children were facilitated in dialogue sessions that ran in parallel, H.R.H. Princess Laurentien of the Netherlands moderated the session where outcomes from all discussion tables were discussed. Suggested solutions from the different themes varied widely. However, the common denominators from all discussions were on the process how to drive change in collaboration. The main outcomes were:
• We need to change, now is the time to start;
• We can learn from children to spark creativity and use imagination. The ability to ask the right question improves decision making;
• Start small scale, accept to make mistakes, it most likely can’t be first time right;
• Create an environment where you can work together and share knowledge in an early stage;
• Make sure the goals are aligned with all parties in the team, a shared vision and shared interest ensure to reach goals.
The session was concluded with a call to action: Dare to be a rebellious and experiment with partners to overcome societal challenges to safeguard a bright future for the generations to come. The conclusions of the multi-stakeholder dialogue were shared with relevant BAM colleagues and participants to ensure that the lessons learned will be used in practice.
Follow up of the stakeholder dialogue includes two round table sessions with the municipality of Bunnik and Eindhoven around urbanisation and mobility. In these sessions smart solutions are developed around bike mobility, for instance a digital bicycle highway at Schiphol Airport ‘fly + bike’ to reduce car movements by 5,000 a day, hubs to increase connectivity and minimise parking issues and partnerships to scale up bike sharing concepts. A next step on circular economy includes starting a ‘taskforce’ to develop a circular value proposition for clients.
As part of the development of the strategic agenda for 2016-2020, the Group carried out a materiality assessment. Material themes are themes that significantly influence BAM’s ability to create value in the short, medium and long term.
To update the 2018 materiality matrix, BAM sent out a survey to stakeholders that were invited to the stakeholder dialogue as well as international stakeholders. A detailed description of all material themes, the impact on BAM and the management approach can be found in chapter 9.7. The materiality matrix (figure 6) displays the prioritisation of the matters based on their relative importance to BAM and to BAM’s stakeholders.
Stakeholders could identify and prioritise the potential impact of material themes on themselves and on society. In comparison to last year the prioritisation of material themes remained very similar. Most relevant for the client group were project and product quality and control and business conduct. The group of employees specifically indicated financial performance and project and product quality and control as most material themes. Providers of financial capital indicated that BAM’s financial performance is most relevant to their organisations, in addition to business conduct and transparency. BAM’s subcontractors and suppliers as well as the group representing society – NGOs, government and knowledge institutes – specifically indicated innovation and procurement strategy as material themes. Regulators indicated the circular economy and community engagement as most material. The stakeholders were requested to introduce and assess matters that were missing in BAM’s original materiality assessment. Topics raised by stakeholder include supply chain integration and networking economy, life cycle thinking and health & well-being.
6 - Materiality matrix
Sustainable Development Goals
BAM values alignment of its strategy with regard to the UN-adopted Sustainable Development Goals (SDGs): 17 goals that serve as a roadmap for good growth by 2030. BAM evaluated the key areas of alignment of the goals with its corporate strategy and the relevant stakeholder material themes. BAM’s business potentially impacts all SDGs. However, some have more direct influence within current markets, given the nature of BAM’s business. BAM has subsequently considered these global issues in relation to its 2050 Net Positive strategy and has identified key focus areas where progress will be monitored going forward. BAM therefore strives to make a positive contribution to seven SDGs in particular, because these best fit in with its strategy and impact. Results are described in the performance chapters and are indicated with SDG symbols.
7 - Link between BAM’s strategy, material themes and performance indicators