Integrated report 2020

The activity of the Budimex Group has a significant impact on the climate. The Group is aware of that and makes efforts to minimise the negative impact. The risks and opportunities in connection with the necessary transition of Poland and all of Europe to a low-carbon economy are also of great importance in the context of the climate crisis.

As part of the „Strategii CSR Budimeksu na lata 2021–2023” measures were defined to reduce the Group's negative impact on climate, mainly by contributing to reducing greenhouse gas emissions, as well as to help to adapt the business model to climate changes.

The company undertook to:

develop in 2021 and implement in 2022 a policy related to climate change mitigation and a policy to adapt the Group to climate change

develop in 2021 the company’s business model and strategy analysis, taking into account various climate change scenarios

define and develop in 2021 a matrix of risks and opportunities in connection with climate change

set in 2021 the objectives in relation to reducing CO₂ emissions for 2021-2023

increase the share of energy from renewable sources to 50% in 2023

implement and promote low emission technologies (use of asphalt technology with asphalt granulate)

The Budimex Group's demand for fuels and energy results mainly from:

• production of bituminous mass,
• operation of construction equipment, transport of materials, raw materials and waste,
• use of company cars.

The ongoing energy consumption related to works (and therefore the emission level) is closely connected with project construction stages of a given investment and results e.g. from the demand for transport, operation of machines or production of bituminous mass, for example. Due to a relatively long contract performance cycle (much more than one year), comparing energy demand and energy consumption on an annual basis is sometimes rather unreliable. Positive or negative changes in effects may result from the current state of implementation of the contract portfolio, instead of changes in the operating model. They occur, though, as the Budimex Group takes actions aimed exactly at permanent reduction of energy consumption and emissivity, e.g. through successive replacement of equipment. Educational activities aimed at employees are also undertaken, which translate into lower consumption of electricity and fuel.

Since 2019, the Budimex Group’s car fleet has also included electric vehicles.

Detailed data on fuel consumption and CO₂ emissions are available HERE . The methodology for monitoring and calculating them is as follows: fuel and energy costs are monitored in internal company registers. Their consumption is based on their average prices. The fuel consumption was conversed into energy expressed in GJ using the calorific values published in the document KOBIZE (National Centre for Emissions Management) 2019 calorific values (CV) and CO₂ emission rates (ER) to be reported under the Emissions Trading System for 2020.

Emission calculations were prepared in accordance with the following standards: „The Greenhouse Gas Protocol. A Corporate Accounting and Reporting Standard Revised Edition” and „GHG Protocol Scope 2 Guidance”. Greenhouse gases identified and included in the calculations are O₂, CH₄ and N₂O, expressed as a CO₂ equivalent. No biogenic greenhouse gas emissions were identified. The main sources of emission indicators were publications issued by KOBIZE, the Energy Regulatory Office and indicators published by electricity sellers. The financial control criterion was adopted for the consolidation of the Group's emissions, which means that 100% of the companies' emissions were assigned to the Group. The emission from the consumed electricity was calculated according to the location-based method, using the average emission rate for Poland. On the other hand, at the Budimex Group it was calculated according to the market-based method; if the supplier was known, the emission rates provided by it were applied for electricity, while the rate of 0 kgCO₂e/kWh was assumed for energy from RES confirmed by the Guarantees of Origin.

*Data for 2019 concerning the FB Serwis Group are estimates for the beginning of February 2020 and were not verified by an independent auditor.
**Emissions for 2020 calculated using the market-based method, i.e. the specific emission indicators were assumed for known energy suppliers. For other entities and years, the Budimex Group assumed average rates for Poland.