A four-step process was followed to investigate compliance with the taxonomy:
Identification
The stage consisted of reviewing all activities carried out by the Budimex Group and the group’s subsidiaries and determining
whether, and if so, which activities qualify for the taxonomy. The revenue generated by the companies, capital expenditure
and operating expenses were reviewed. Their descriptions in the appendices of Commission Delegated Regulation (EU)
2021/2139 were used to identify the various activities, which were compared to the activities actually carried out. If the
description of the activities was not sufficiently clear, the NACE taxonomy was used.
Allocation
The stage consisted of allocating the values of turnover, capital expenditure and operating expenses to the individual
activities identified in the first stage. Details of the allocation methods used are described in the Accounting Policies chapter..
Verification
The stage consisted of two types of research:
- For all identified activities, an examination of the material contribution and non-major damage criteria using the Technical Eligibility Criteria as set out in the appendices of Commission Delegated Regulation (EU) 2021/2139 was carried out. Details of the assessment are presented in the Verification of compliance with the Technical Eligibility Criteria section..
- An assessment of whether the Minimum Safeguards are met has been carried out. Details of the assessment are set out in the Minimum Safeguards section.
Calculation
This stage consisted of using the resulting information from stages two and three to produce tables containing the required
information and compiling this supporting information, as required in Appendices I and II of Commission Delegated
Regulation (EU) 2021/21782).
The process was carried out with the participation of the Purchasing, Quality and Environmental Protection Office, the Controlling Office, the Contract Managers and, where appropriate, with the participation of representatives of Group companies.
Verification of compliance with the Technical Eligibility Criteria
Verification of compliance with the Technical Eligibility Criteria was carried out for selected activities eligible for the systematisation and consisted in analysing the individual criteria of significant contribution and no significant damage and verifying the extent to which the activity complies with the Technical Eligibility Criteria set out in Annexes I and II to Commission Delegated Regulation (EU) 2021/21393), as extended by Commission Delegated Regulation (EU) 2022/12144). The Group carried out the taxonomy study on the basis of a representative group of projects, i.e. for activities for which turnover represented a significant value to the Group’s total turnover, the Technical Eligibility Criteria were audited, and for activities for which turnover did not exceed a significant value, the Technical Eligibility Criteria were not audited and the activity was considered eligible for the taxonomy but not in compliance with it. In addition, for activities for which an examination of compliance with the Technical Eligibility Criteria was carried out and it was found that the criterion of no significant contribution was not met, no examination of the criteria of no serious damage was carried out.
The main types of activities carried out in the Group are those included in the systematisation as 6.14 Infrastructure for rail transport and 7.1 Construction of new buildings.
The Technical Eligibility Criteria compliance survey was carried out in the period from October 2022 to December 2022 by the Budimex SA Purchasing and Quality and Environmental Office with the cooperation of people on individual contracts. The survey used tools in the form of compliance checklists obtained from the Ferrovial Group which is the majority investor in the Budimex Group. The analysis was carried out on a representative group of contracts within each activity. In this way, for each activity, the percentage of turnover, CapEx and OpEx compliant with the Technical Eligibility Criteria was established, which are reported in the tables in this section of the non-financial report.
Verification of compliance with the Minimum Safeguards
Pursuant to Article 18 of Regulation 2020/852: ‘The Minimum Safeguards referred to in Article 3(c) are the procedures to be followed by the business enterprise to ensure compliance with „Wytycznych OECD dla przedsiębiorstw wielonarodowych” oraz „Wytycznych ONZ dotyczących biznesu i praw człowieka”, w tym zasad i praw określonych w ośmiu podstawowych konwencjach wskazanych w „Deklaracji Międzynarodowej Organizacji Pracy dotyczącej podstawowych zasad i praw w pracy” oraz zasad i praw określonych w „Międzynarodowej Karcie Praw Człowieka”.
The examination of compliance with the Minimum Guarantees was carried out in accordance with the recommendations
in the Final Report on Minimum Safeguards by Platform On Sustainable Finance.
According to the recommendations,
non-compliance with the Minimum Safeguards is one of four considerations:
Inadequate or non-existent human rights due diligence processes, including labour rights, corruption, taxation and fair competition.
The Company has been ultimately held accountable or found to have violated labour or human rights law in certain types of labour or human rights court cases.
Failure to co-operate with the OECD National Contact Point (hereafter OECD NCP) on a notification accepted by the OECD NCP.
Business and Human Rights Resource Centre (BHRRC) took up an allegation against the company and the company did not respond within 3 months.
In the verification process at Budimex Group, non-compliance with the above premises was examined as follows::
Premise 1:
The completeness of the due diligence processes was verified on the basis of an internal verification of the existence and operation of the elements of the due diligence process resulting from the framework of these processes contained in the documents mentioned in the definition of the Minimum Safeguards. The design of the due diligence processes in the definition proposed in Article 3(c) of Regulation (EU) 2020/852 of the European Parliament and of the Council of 18 June 2020 establishing a framework to facilitate sustainable investment, amending Regulation (EU) 2019/2088 is mainly influenced by the provisions of the UN Guiding Principles on Business and Human Rights and the OECD Guidelines for Multinational Enterprises. Compliance was verified using a compliance assessment tool using the assessment methodology proposed by the Platform on Sustainable Finance: World Benchmark Alliance Core UNGP indicators. As a result of the analysis, it was determined that the organisation has a complete due diligence process in place and in operation that fulfils the guideline.
Premise 2:
Premise 2 was verified in the process of completing the responses to premise 1 by verifying that there were no final convictions against the individuals listed in the premise during the period under review. As a result of the verification, it was found that there was no information qualifying the Group for premise 2.
Premise 3:
A verification of the OECD NCP notification database was carried out, which showed that no notifications occurred in relation to the Group during the period under review. [http://mneguidelines.oecd.org/database/].
Premise 4:
A verification of the Business and Human Rights Resource Centre (BHRRC) reporting database was carried out and showed that there were no reports against the Company/Group during the period under review. [https://www.business-humanrights.org/en/companies].
As a result of the verification process, it was determined that the Group’s operations are conducted in accordance with the Minimum Safeguards..
2) Commission Delegated Regulation (EU) 2021/2178 of 6 July 2021 supplementing Regulation (EU) 2020/852 of the European Parliament and of the Council by clarifying the content and presentation of the information on environmentally sustainable business activities to be disclosed by companies subject to Article 19a or 29a of Directive 2013/34/EU and specifying the method to comply with this disclosure obligation.
3) Commission Delegated Regulation (EU) 2021/2139 of 4 June 2021 supplementing Regulation (EU) 2020/852 of the European Parliament and of the Council by establishing technical eligibility criteria for determining the conditions under which an economic activity qualifies as making a significant contribution to climate change mitigation or adaptation and whether that economic activity does not cause serious harm to any other environmental objective.
4) Commission Delegated Regulation (EU) 2022/1214 of 9 March 2022 amending Delegated Regulation (EU) 2021/2139 as regards economic activities in certain energy sectors and Delegated Regulation (EU) 2021/2178 as regards the public disclosure of specific information in relation to those economic activities.
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