Contact person for matters related to this report:
Ewelina Karp-Kręglicka
Director of the ESG, Quality and Environmental Protection Department
Budimex SA
Siedmiogrodzka 9
01-204 Warsaw
ewelina.karp@budimex.pl
tel. (+48) 22 623 60 00
Wioletta Roguska
ESG Manager
Budimex SA
Siedmiogrodzka 9
01-204 Warsaw
wioletta.roguska@budimex.pl
tel. (+48) 22 623 60 00
Based on the double materiality analysis, 16 material topics have been identified, including:
The whole list is as follows:
Stakeholders identified governance matters and social matters related to service quality, labor rights and cooperation with local communities as areas of key significance. They also emphasized the significance of business innovation.
Detailed results are presented in the materiality matrix below.
Figure: Materiality matrix
This report fulfills the obligation set forth in Articles 49b and 55 of the Accounting Act of 29 September 1994 and thus includes a complete set of non-financial information that, in accordance with the Act, should be included in the Budimex Group’s annual activity report. The scope of topics has been voluntarily expanded to include sustainability issues identified in the ESRS-compliant double materiality analysis process, mandatory for the Budimex Group starting with the 2024 report.
The double materiality analysis process has been carried out using qualitative and quantitative methods, and resulted in a list of sustainability topics relevant to the Budimex Group’s operations. At each stage, representatives of the Group’s three leading companies, namely Budimex SA, Mostostal Kraków SA and FBSerwis SA, were involved.
Stages of double materiality analysis
In August 2023, with a view to reconstructing the value chain and business model, an external consulting agency conducted a diagnostic workshop with the participation of Budimex Group management. The workshop was focused on reviewing the company’s value chain, reconstructing its business environment and discussing the firm’s key impacts in the environmental, social and governance areas. The purpose of the workshop was to establish the vantage point of internal stakeholders and systematize existing knowledge.
This was followed by an expert workshop held in September 2023 with the participation of external stakeholders: representatives of investors, subcontractors, suppliers, local authorities and general public. The purpose of the workshop was to establish the vantage point of the company’s environment and complement the conclusions drawn from the diagnostic workshop.
After the workshop, the Budimex Group’s internal materials (including previous ESG reports, strategies, risk analyses) and workshop notes were scrutinized by a consulting firm. As a result, a preliminary expanded list of 16 material topics was developed. The list was ten subjected to an impact materiality and financial materiality assessment.
As part of the impact materiality measurement, an online survey was conducted. External stakeholders filled out the questionnaires between 14 September and 19 October 2023, while Group employees filled out theirs between 29 September and 3 November 2023. Respondents were requested to rate the severity, extent and irreversibility of impacts on a five-level Likert scale. The results were aggregated and averaged, with each sustainability topic assigned a numerical value.
As part of the financial materiality measurement, financial materiality workshops were held in September and October 2023 with representatives of the Budimex Group’s financial departments. The participants learned about the sustainability topics and the assumptions for the double materiality analysis, following which they were requested to assign a numerical value to each topic on a five-level Likert scale. Their responses were aggregated and averaged, with each sustainability topic assigned a numerical value.
Having obtained two quantitative dimensions of materiality, it was possible to illustrate the topics on a materiality matrix. The Budimex Group decided not to set a materiality threshold and thus not to reject any of the identified topics. The outcomes of the analysis were reviewed for consistency with the Group’s strategic goals in the sustainability/ESG context.
An element of the double materiality analysis process was an analysis of ESG risks, as discussed in more detail in subsection 4.1.2.
[GRI 3-3] [GRI 308-1] [GRI 308-2] [GRI 414-1] [GRI 414-2] [ESRS SMB-3] [ESRS G1-2]]
In connection with the performance of construction processes, the Budimex Group cooperates with a number of suppliers of a variety of goods and services from different sectors of the economy. In accordance with the company’s Integrated Management System procedures, a continuous process of qualification and ongoing evaluation of counterparties is in place, which also takes relevant sustainability aspects into account, that is the responsibility of each entity in observing social and environmental requirements.
The primary purpose of cooperation is to ensure the highest occupational health, safety, quality and environmental standards along with a top degree of operating efficiency, which is why the company prioritizes cooperation with qualified suppliers and subcontractors. Initial evaluation is based on a qualification questionnaire (form PO-04-01-F05 to procedure PO-04-01). Companies interested in cooperation are requested to complete the questionnaire through the system; it is also available for self-completion on our website. Prior to granting the qualification, compliance is verified of the submitted data with public registers (https://podatki.gov.pl, https://aplikacja.ceidg.gov.pl. https://ekrs.ms.gov.pl, https://ec.europa.eu/taxation_customs/vies/#/vat-validation) and private registers (Polish Economic Intelligence, https://www.pwg.info.pl/) along with verification vis-à-vis the Budimex Group’s needs and standards. The following documents are also requested: ISO and AQAP quality certificate(s), ZKP certificate (technical approvals), licenses, authorizations and references. Data from the questionnaires are entered into a database and serve as a primary source of information regarding construction projects when establishing cooperation in a specific area.
A tentatively qualified contractor is any contractor who has declared their compliance with the labor laws and legal requirements for environmental protection applicable in the Republic of Poland.
The bid of any entity responding to the invitation to participate in the procurement process must be consistent with the requirements contained in the list of occupational safety and health, fire safety and environmental protection standards created by the Budimex Group as a supplement to the statutory requirements. The specific manner of fulfillment of each obligation may be agreed upon at the stage of negotiations and selection of the supplier.
The Budimex Group cooperates only with counterparties committed to acting in a responsible manner. In the process of selecting suppliers of materials and services, one of the qualification criteria is the entity’s demonstrated respect for human rights (including labor rights), as governed by the instructions to the procurement procedure (Rules for the qualification and assessment of suppliers of products and services). All of the company’s business partners sign a statement of compliance with the set of rules of conduct for Budimex SA counterparties, while the Budimex Group contractually reserves the right to verify their practices in this area. In accordance with the document, each subcontractor and supplier is required to pursue their business objectives while demonstrating respect for the rule of law, ethical principles and human rights. Integral parts of all contracts signed by the company are the Requirements for occupational safety and health and the Requirements for environmental protection [1]. Cooperation with suppliers in the area of environmental protection at the construction stage is described in more detail in section 4.3.
After the completion of deliveries/services, the supplier’s compliance with human rights is reassessed.
Upon conclusion of the cooperation, the counterparty is evaluated according to the following criteria:
The following aspects are also verified:
The rating is calculated by the system based on adopted algorithms and a qualification status is assigned:
The Budimex Group intends to expand its due diligence procedures in the supply chain in pursuit of its strategic sustainability objectives. The Code of conduct for business partners is scheduled to be developed and adopted in 2024.
Additional information relevant to shaping a responsible supply chain is provided in section 5.2.
Table: New suppliers that were screened using environmental criteria
[GRI 308-1]
Table: Negative environmental impacts in the supply chain and actions taken
[GRI 308-2]
Table: New suppliers that were screened using social criteria
[GRI 414-1]
Table: Negative social impacts in the supply chain and actions taken
[GRI 414-2]
[1] A survey for contractors, a catalog of requirements for contractors, and a set of expected policies can be found at: https://www.budimex.pl/pl/kontrahenci.
BXF ENERGIA
In April 2023, Budimex SA and Ferrovial S.E. established a new joint venture, BXF Energia, in which they hold a 51% and 49% stake, respectively. The purpose of the joint venture is to initiate and develop large-scale renewable electricity generation projects. This electricity is intended to satisfy part of the Budimex Group’s demand, but may also to be sold to external customers.
BXF Energia’s portfolio includes photovoltaic projects and wind farms at various stages of development with a total capacity of approx. 305 MW at yearend 2023. Moreover, the company continues the construction of the Magnolia and Kamelia large-scale plants acquired by Budimex SA in an M&A transaction. It is also in the process of reviewing potential investments in project at various stages of development with a total capacity of approx. 800 MW.
MAGNOLIA
Wind farm purchased by Budimex SA in 2022 at the ready-to-build phase. It consists of two turbines with a total capacity of up to 7 MW. In January 2023, the project obtained financing under a project finance formula from Bank Gospodarstwa Krajowego. The plant was put into operation in the second half of the year. By the end of December, it generated and fed into the grid 8.2 GWh of electricity.
KAMELIA
A photovoltaic farm project purchased by Budimex SA in November 2022 at the ready-to-build phase. Following the completion of construction work, a 14 MW plant will be put into operation to cover a significant portion of the company’s demand for electricity.
BUDIMEX MOBILITY
In 2022, Budimex Mobility (formerly, Budimex PPP), a member of the Budimex Group, launched operations aimed at establishing a network of publicly accessible electric vehicle charging stations across the country. The company’s technology partner is Elocity, one of the most advanced platforms maintaining vehicle charging stations in Poland.
In 2023, Budimex Mobility put into operation 158 AC stations (slow-charging, alternating-current, 11-44 kW) and DC (fast-charging, direct-current, 30-180 kW) stations, mostly in Wielkopolskie, Zachodniopomorskie, Lubuskie and Kujawsko-Pomorskie voivodships. A significant portion of the charging points made available to the public are chargers acquired by the company through tenders from PGE and the Enea Group.
Moreover, the company is a beneficiary of the EU’s Connecting Europe Facility (CEF) and the National Fund for Environmental Protection and Water Management’s priority program called “Support for electric vehicle charging infrastructure and hydrogen refueling infrastructure.” As part of the Connecting Europe Facility, the company will build 9 charging stations along the TEN-T road network. In turn, aid from the National Fund for Environmental Protection and Water Management is intended for the construction or reconstruction of a publicly accessible network of charging stations with a capacity of no less than 50-150 kW and includes points in five locations.
By 2026, Budimex Mobility intends to make available another 300-350 charging stations to the general public through both a comprehensive organic expansion of its network and acquisitions. The company is also actively working to grow its own electromobility by increasing the share of electric vehicles in the Budimex fleet.
The current list of stations operated by the company may be viewed in the Alternative Fuels Infrastructure Register at: https://eipa.udt.gov.pl/.
GERMANY
BUDIMEX BAU GMBH
Budimex has been doing business in Germany since the 1970s. In 2004, Budimex Bau was established to ramp up sales in the assembly segment. Its core line of business was the prefabrication of elements made of concrete, reinforced concrete and steel. Since 2021, the company’s offering has been expanded to include general contracting of investment projects in infrastructural, residential, office and industrial construction. Among the company’s currently executed projects is the construction of a road and bridge in Oderberg and the construction of a bridge in Liepe. In August 2023, a major phase of the Liepe project was launched, including the installation of the main girder for the 230-ton structure.
SLOVAKIA
Budimex SA entered the Slovakian market in 2021. Its Bratislava branch office focuses its efforts on infrastructural investments. The team’s dedication to building the company’s image as a reliable and experienced general contractor resulted in signing its first contract on the local market in July 2022 for the construction of the D1/D4 motorway between Bratislava and Triblavina. Work on the project site was launched in 2023.
CZECH REPUBLIC
In December 2022, Budimex SA opened up a branch office in Prague. In 2023, organizational endeavors were carried out to align the firm’s operational activities with the specificity of the local market, including the stringent requirements imposed on construction companies. The branch office employs highly qualified and experienced personnel licensed to carry out construction work in the country. It participates in tenders for infrastructural, railroad, hydrotechnical, residential, office and industrial projects. The team’s efforts culminated in the execution, in late December 2023, of a contract for the construction of the Kutřin polder, as described in more detail in section 7.1.
LATVIA
Latvia is the first of the Baltic States where Budimex SA began offering its services. The company’s Riga branch office was opened in September 2023. Its operations are currently focused on the railroad construction segment, where the company signed a contract in December 2023 marking the inauguration of its operational presence in this part of Europe. The contract provides for the construction of a high-speed rail line within the framework of an international consortium, as described in section 7.1.
In 2023, all over Poland, under about 220 contracts, the Budimex Group completed works within general construction, infrastructural building, power engineering, industrial building and railway construction as well as services in the area of waste management and infrastructure maintenance. Selected projects which were completed last year are listed below.
Expansion of the ferry terminal in Świnoujście
Scope of works: Rebuilding of ferry stations and transloading ramps as well as modernization of the existing road and railway infrastructure and technical auxiliary facilities in the wharf. The aim of the project was a better integration of the Szczecin-Świnoujście port complex in the North-South sea and land transport corridor, which will contribute to the economic development of the West Pomeranian region and Poland as a whole.
Net contract value: PLN 185 million
Time for completion: 3 years and 11 months
Alteration of A18 motorway
Scope of works: Adjustment of the south roadway of national road no. 18 with its surroundings to the motorway parameters, construction of 5 bridge structures, including 2 overbridges and 2 animal crossings. The road is highly significant for the industry and tourism because it connects Ukraine, Slovakia and the southern part of Poland with Dresden and Berlin.
Net contract value: PLN 134 million
Time for completion: 3 years
Modernization of E65 railway line on section (LOT C) Vistula river Bridge – Czechowice-Dziedzice – Zabrzeg
Scope of works: Modernization of the node Goczałkowice-Zdrój – Czechowice-Dziedzice – Zabrzeg. The project included 23 road structures, such as bridges, overbridges, culverts, railway subways and railroad crossings as well as replacement of about 47 km of tracks and 56 km of overhead lines. Modernization also changed platforms at the following stations: Czechowice-Dziedzice, Goczałkowice-Zdrój and Zabrzeg. A modern Local Control Center was established too. All the works were performed during regular railway traffic.
Net contract value: PLN 1.5 billion
Time for completion: 4 years
Construction of a section of S11 expressway
Scope of works: Construction of a 16.8-kilometer section of the expressway between Koszalin and Zegrze Pomorskie. The construction project included a dual carriageway, numerous engineering structures – bridges, overbridges and underbridges and animal crossings, access roads to service local traffic, motorway service areas and drainage systems. What was also altered were public roads, electric power networks and water supply and distribution networks.
Net contract value: PLN 471 million
Time for completion: 3 years and 6 months
Construction of a bypass of Przecław and Warzymice
Scope of works: Construction of an over 4-kilometer bypass of Przecław and Warzymice. The project involved completion of a roadway, engineering structures, including overbridges, animal crossings and culverts as well as new stormwater drainage system with three retention tanks. The alteration works pertained to agricultural drainage ditches and telecommunications, electric power and gas networks.
Net contract value: PLN 89 million
Time for completion: 3 years
Expansion of provincial road no. 714
Scope of works: Expansion of a 2.3 km section of a former district road. A section of provincial road no. 714 was put into operation – extension of Łódź Górna Route connecting Łódź with motorway A1 in the Brójce municipality. Within the project, the roadway was broadened to 7 m and 5 crossings were expanded. In addition, 10 pedestrian crossings were built with conveniences for persons with disabilities, 2 passages for amphibians under the road prism as well as a new bridge on the Ner river. Furthermore, as a result of the project, there are 6 bus bays, 2.1 km of stormwater drainage system, 1.3 km of road ditches and 91 lighting poles.
Net contract value: PLN 30 million
Time for completion: 1 year and 6 months
Construction of a swing bridge in Nowakowo
Scope of works: Construction of a 103-meter swing bridge on the Elbląg river in the village of Nowakowo. It is a steel structure weighing over 700 tons with a special bearing at the center on its primary support, which allows the bridge to rotate. The project was completed within the construction of water way carried out by Budimex SA, joining the Vistula Lagoon with the Bay of Gdańsk (net contract value: PLN 466 million).
Net contract value: PLN 24 million
Time for completion: 2 years and 3 months
Construction of the Metropolitan Railway Station in Lublin
Scope of works: Construction of a modern communication hub – three-story building with floor space of over 18 thousand m2 with a Park & Ride garage equipped with chargers for electric vehicles. The facility satisfies the highest sustainability standards.
Net contract value: PLN 267 million
Time for completion: 2 years and 10 months
Construction of the Museum of the History of Poland in Warsaw
Scope of works: Construction of a 6-storry museum with an area of over 44 thousand m2. The works resulted in the completion of restoration workshops, laboratories, storage areas and office space for employees as well as restaurants, cafes, a cinema, an entertainment hall and a library. More than 30 hectares of green areas were developed and prepared so as to fulfill recreational and leisure functions.
Net contract value: PLN 700 million
Time for completion: 5 years and 3 months
Construction the State Archive in Bydgoszcz
Scope of works: Full-range construction of a four-story building of the State Archive in Bydgoszcz with modern architectural, technological and IT solutions.
Net contract value: PLN 80 million
Time for completion: 1 year and 10 months
Modernization of the Teatr Polski in Szczecin
Scope of works: Modernization and expansion of over a 100-year old sea of Teatr Polski Theater in Szczecin, including 5 modern stages and the construction of a new reinforced concrete and glass structure incorporated in the slope on the bank of the Odra river.
Net contract value: PLN 170 million
Time for completion: 3 years
Construction of a PepsiCo factory in Środa Śląska
Scope of works: The construction of a factory with internal installations (including electrotechnical robots), improvement of territory and development of technical infrastructure. The construction project also included a photovoltaic system and a high-class sewage treatment plant for the factory but also charging stations for electric vehicles.
Net contract value: PLN 502 million
Time for completion: 1 year and 8 months
Construction of a technical and operational point for Małopolska Railways
Scope of works: Designing and construction of a technical support facilities for the rolling stock at the Kraków Towarowy station, including a hall of repairs with a welfare and office section, workshop and storage section, train wash for whole trains and technical section with installations and equipment. Within the construction project, a new layout of stabling and shunting tracks was executed with an overhead line and Railway Traffic Control System.
Net contract value: PLN 79 million
Time for completion: 2 years and 5 months
Detailed current information on the contracts performed by the company is available at: https://media.budimex.pl/category/5321.
Construction of ARM platform
Scope of works: Designing, constructing and starting up the installation for preparing and charging alternative raw materials, as a result of which it will be possible to use waste from various sectors of the industry in the production of cement. The platform was built in the area of the Kujawy Region Cement Plant and the investor was Lafarge Cement.
Net contract value: PLN 56 million
Time for completion: 18 months
Design and assembly of the charging station for electric buses in Katowice
Scope of works: Designing, delivery and assembly of fast-charging stations for electric buses in the area of the terminus of Przedsiębiorstwo Komunikacji Miejskiej (Urban Transportation Company) in Katowice, on Tysiąclecia Street.
Net contract value: PLN 2 million
Time for completion: 16 months
Production and delivery of matrices for cathode pads for the Głogów smelter
Scope of works: Production and delivery of matrices for cathode pads for Section P-7 of the Głogów Copper Smelter, owned by KGHM Polska Miedź.
Net contract value: PLN 5 million
Time for completion: 12 months
In the Gdańsk region, FBSerwis SA is involved in the maintenance of more than 250 km of roads, including sections of S6 (Tri-City bypass), S7 (including the southern bypass of Gdańsk) and S6e (Kashubian Route). The contracts will be performed until 2025. The company also carries out year-round (ongoing and winter) maintenance of more than 90 km of the S5 expressway and more than 45 km of the A2 motorway, on the section from the Modła intersection to the Dąbie intersection in Wielkopolskie voivodship. Contracts for the performance of this work were signed in 2022 for a 4-year term.
Since 2021, the FBSerwis Group has been involved in the management of municipal waste from residential properties in the Warsaw area. Since 2016, it has been providing similar services in Łódź. Continuously since 2013, the Group has also been providing municipal waste collection and management services in the Rzeszów area. It also provides services related to the collection and management of waste from residential properties in Lądek-Zdrój municipality. The contract was signed in April 2022 and will be performed until April 2024.
Since 2017, FBSerwis Wrocław has been responsible for the summer and winter maintenance of cleanliness and order in Wrocław’s Stare Miasto and Krzyki districts.
The FBSerwis Group carries out technical maintenance services for the Gdańsk port, which is one of the largest facilities of its kind in the Baltic Sea basin. The port is a major building block of Trans-European Transport Corridor No. 1. which connects south-eastern Europe with Scandinavian countries. The contract has been performed since 2014.
The company also provides maintenance services for the Koga Office Center located within the Pomeranian Investment Center (PCI). The first contract was signed in 2015, but the services have been provided intermittently.
In 2023, the company put into use 158 publicly available electric vehicle charging stations. Some of these new stations were installed in popular tourist destinations such as Zakopane, Lądek-Zdrój, Jarosław, Krynica and Polanica-Zdrój. For more information about the company’s business and plans, please see section 7.4.
[GRI 203-1]
In 2023, the Budimex Group companies signed about 123 new contracts (including annexes). Selected ones are described below.
Construction and alteration of railway and road infrastructure between Tychy and Vistula Bridge
Scope of works: Designing and performing full-range construction works including railway and road infrastructure. Performance of construction works concerning trackwork, installation of new overhead lines, access roads and railway crossings, platforms, building a signal tower, as well as electrical grids, gas networks and water supply and sewage collection networks, and also preparation of working plans and specifications and completing housing for railway traffic control systems and railway telecommunication network systems. In addition, 36 road structures will be constructed or altered, such as overbridges, bridges, access subways or culverts. As a result of the project, 47 km of new tracks and 18 turnouts will be built.
Net contract value: PLN 909 million
Planned time for completion: 3 years and 6 months
Modernization and construction of a new railway line Podłęże – Piekiełko in the Podhale region
Scope of works: Modernization of a 6 km section of railway line no. 104 between Chabówka and Nowy Sącz with technical infrastructure along railway line no. 104 from the Chabówka station to the Rabka Zaryte station. The works will be carried out also along railway line no. 98 between Sucha Beskidzka and Chabówka and at the Chabówka station. The modernization will include building a second track and altering road structures and railway traffic control systems, the station and stops. New platforms will be built, among others, at the Rabka Zaryte station and the Rabka-Zdrój stop.
Net contract value: PLN 366 million
Planned time for completion: 2 years
Expansion of national road no. 65 between Gąski and Ełk
Scope of works: Modernization and expansion of the existing DK65 national road. The project will include altering the pavement, correction of road geometry and broadening the roadway and improving its general parameters, as well as building a new bridge in the village of Straduny and demolishing an old structure. The subject matter of the contract is similarly building and rebuilding culverts, crossings, bus termini and bays and sidewalks along DK65 and in the villages of Straduny, Oracze and Wityny.
Net contract value: PLN 186 million
Planned time for completion: 1 year and 6 months
Construction of the 4th stage of Drezdenka bypass
Scope of works: The project continues works started in previous years. A roundabout will be built at the crossing of provincial roads no. 156 and 160 and also a 345-meter bridge over the valley of the Noteć river and overbridge over a railway line. The project will also include construction of 4 passages for agricultural roads and 5 animal crossings and a fence to prevent animals from getting onto the bypass.
Net contract value: PLN 83 million
Planned time for completion: 2 years and 10 months
Construction of bypasses of Ciepielów and Zabierzów
Scope of works: Expansion of a section of national road no. 79 and accompanying technical infrastructure and traffic safety systems. The works include designing and building road structures, environmental protection systems, road lighting, sidewalks and cycling paths and bus bays. The altering work will concern 3 crossings and water supply and distribution networks, power distribution and teletechnical networks.
Net contract value: PLN 658 million
Planned time for completion: 3 years and 1 month
Construction of the installation terminal for offshore wind farms of the ORLEN Group in Świnoujście
Scope of works: Construction of storage areas for components of marine wind turbines, such as towers, blades and nacelles. As part of the investment, communication infrastructure and a new administration and office building will be constructed.
Net contract value: PLN 118 million
Planned time for completion: 1 year and 3 months
Modernization of national road no. 74 between Gorajec and Szczebrzeszyn
Scope of works: Alteration of an 8.7 km section of DK74. including replacement of the structure and pavement and its repair along 1.6 km in Szczebrzeszyn. The project will involve building safe and lighted pedestrian crossings with refuges and road traffic security systems as well as 5 bus bays and 7 additional converging roadways. The Rozłopy-Szperówka crossing will be expanded. Furthermore, private and public exits providing access to areas located near the road will be built or rebuilt. The investment project will include the construction of new bus stops, sidewalks and cycling paths as well as animal crossings.
Net contract value: PLN 119 million
Planned time for completion: 1 year and 11 months
Construction of expressway S8 from Kobierzyce to Łagiewniki
Scope of works: Designing and building expressway S8. The investment is made up of three sections with the total length of 32.5 km. All the structures that will be built are as follows: 9 bridges and 15 overbridges over expressway, 7 overbridges within expressway and 13 culverts, including 12 serving as animal crossings.
Net contract value: PLN 1.07 billion
Planned time for completion: 3 years and 6 months
Construction of flood protection facilities for the valley of the Nysa Kłodzka river
Scope of works: Modernization of flood protection and water infrastructure in the valley of the river aims to improve the flow of flood waters. Work on the construction project will concern, among others, reprofiling the existing floodgates with sectional reinforcement and slope revetments, and also demolition of damaged structures, rebuilding them or building new infrastructure. The shoreline will be also modified.
Net contract value: PLN 121 million
Planned time for completion: 1 year and 11 months
Construction of entertainment and sporting arena in the Szczecin House of Sport
Scope of works: Alteration and expansion of a swimming pool and entertainment and sporting arena in the Szczecin House of Sport covering demolition of existing structures and construction of new ones. Within the project, stands will be built for swimming competitions and a small swimming pool with a wading pool will be rebuilt. In addition, the works will include: repairing the existing main hall, development of the area with ramps, access roads and accessways, technical infrastructure and service connections to outside networks. There will be a photovoltaic system in the area of the facility.
Net contract value: PLN 84 million
Planned time for completion: 3 years
Full modernization of the town stadium in Ząbkowice Śląskie
Scope of works: Modernization and expansion of a multi-functional building of the town stadium. The project will involve the construction of a new building with a cloakroom, generally accessible sanitation room, a lecture hall and office rooms. The facility will be equipped with heat pumps and a photovoltaic system. The car park near the Sunny Arena and Sunny Water Park will be altered, a mini pumptrack will be also built for skateboarding, riding scooters and roller blading, equipped with a rainwater and meltwater small retention system to irrigate nearby sports fields.
Net contract value: PLN 15 million
Planned time for completion: 1 year and 3 months
Modernization of the historic railway station in Grudziądz
Scope of works: Replacement of the exterior facade with the framework and joinery, thermal insulation of the building from the outside and repairing the roof on which photovoltaic panels will be installed. The project will also cover rebuilding and repairing interiors to preserve and reconstruct historic features. The modernized building will be provided with an elevator and ramps and on the underground level, garages and commercial units will be added for passengers. The ground level will have, among others, a hall, waiting area, ticket offices, generally accessible toilets, a station of the Railway Security Service (SOK) and commercial premises.
Net contract value: PLN 60 million
Planned time for completion: 1 year and 8 months
Expansion of Wood-Mizer production establishment in Koło
Scope of works: Construction of a new one-story production and storage hall and two-story part earmarked for office rooms and welfare facilities. Within the project, technical infrastructure will be constructed, including a security service building, bike shelter, a pylon and a car park.
Net contract value: PLN 63 million
Planned time for completion: 1 year and 1 month
In 2023 the company significantly accelerated expansion in foreign markets, which is proved, among others, by winning the following contracts:
Construction of flood protection polder in the Czech village of Kutřín
Scope of works: Building a barrier 146 m long and revitalization of the river on a section 2 km long. The investment includes the construction of a dry retention tank in the village of Kutřín. The facility will form a part of the flood protection system for villages located below the junction of the Krounka and Novohradka rivers. The structure will be 5.67 m wide in the crest on which a paved road will be built. The retention capacity of the structure is 3.6 million m3. and the area of the flooded area when the full retention capacity is achieved will be 67.5 hectares.
Net contract value: PLN 113 million
Planned time for completion: 3 years and 3 months
Construction of high-speed railway line in Latvia
Scope of works: The construction of 230 km of high-speed railway line in Latvia, performed within the Rail Baltica project by the ERB RAIL consortium, whose members are Eiffage Génie Civil (France), Rizzani de Eccher (Italy) and Budimex SA. The project will join the Baltic states to the European railway network by creating a connection between Helsinki and Warsaw. It includes the construction of 175 road structures and 11 animal crossings. Rail Baltica is a project emerging within the Trans-European Transport Network (TEN-T).
Net contract value: PLN 16 billion
Planned time for completion: 8 years
Building charging stations for electric buses in Kraków
Scope of works: Delivery of fast charging stations for electric buses at two bus termini of MPK Kraków, Kurdwanów and Piaski Nowe, with the construction of transformer stations.
Net contract value: PLN 5 million
Planned time for completion: 10 months
Construction of cement mixing system in the Cement Plant in Ożarów
Scope of works: Preparation of engineering plans and specifications, delivery of equipment and the construction of a Green Solution cement mixing system for the Cement Plant in Ożarów.
Net contract value: PLN 22 million
Planned time for completion: 12 months
Delivery and installation of a framework with mechanical assembly for Umicore Poland plant
Scope of works: Production, delivery and assembly of a steel framework for a new production building of the plant in Radzikowice, producing cathode materials used in batteries for electric vehicles.
Net contract value: PLN 52 million
Planned time for completion: 12 months
Construction and assembly of Baltic Hub structure in Gdańsk
Scope of works: Delivery and assembly of steel structure for T3 container terminal built by Budimex SA for Baltic Hub.
Net contract value: PLN 28 million
Planned time for completion: 14 months
Modernization of Avicii Arena in Stockholm
Scope of works: Prefabrication and delivery of a steel structure for the needs of modernization of the Avicii Arena stadium in Stockholm (a contract performed with a Steel Structure Production Plant in Kraków).
Net contract value: PLN 32 million
Planned time for completion: 17 months
Rebuilding of a hothouse for Jagiellonian University
Scope of works: Rebuilding of a hothouse in the area of the Botanic Garden of the Jagiellonian University in Kraków, with expansion by adding utility and technical rooms.
Net contract value: PLN 7 million
Planned time for completion: 12 months
Delivery and assembly of a structure for ZRE Hamburg
Scope of works: Delivery and assembly of a steel structure for building a new unit in the ZRE waste processing plant in Hamburg.
Net contract value: PLN 43 million
Planned time for completion: 15 months
Alteration of the building of the Public Prosecution Service in Lublin
Scope of works: Alteration and repair of one the buildings of the District Public Prosecution Service in Lublin.
Net contract value: PLN 5 million
Planned time for completion: 6 months
Construction of an overpass over the Warta river
Scope of works: Delivery and assembly of a steel structure of a pedestrian and cycling overpass over the Warta river in Poznań, commissioned by Budimex SA.
Net contract value: PLN 59 million
Planned time for completion: 8 months
Construction of a storage facility for KGHM Polska Miedź
Scope of works: Construction of a new storage facility for copper concentrate for the Rudna mine.
Net contract value: PLN 17 million
Planned time for completion: 12 months
Construction of production system for Eco-pea coal for Polska Grupa Górnicza
Scope of works: Designing, delivery and assembly of a steel structure and other works connected with the construction of a production system for Eco-pea coal in the area of the Piast-Ziemowit coal mine.
Net contract value: PLN 21 million
Planned time for completion: 14 months
FBSERWIS GROUP
Maintenance of road structures managed by the General Board of National Roads and Motorways (GDDKiA), Branch in Katowice, Wysoki Brzeg District
Scope of works: Maintenance of road structures forming sections of A4 motorway, S1 expressway and national road DK44, DK44a, DK94b and DK81. The task of FBSerwis SA is to complete construction works and services of ongoing maintenance of bridges, retaining structures and culverts, including repair, maintenance and renovation works as well as supporting works during inspections.
Net contract value: PLN 10 million
Time for completion: 48 months from the first instruction to proceed with works
Maintenance of roads in winter in the area managed by GDDKiA, Branch in Olsztyn
Scope of works: Winter maintenance of over 80 km S7 and DK22 in the area of Operation and Maintenance Center in Elbląg and Pasłęk – from the border of the voivodship at the level of Elbląg to the Miłomłyn Południe interchange. The tasks of the company will include mainly prevention of slipperiness and liquidating it, removing snow accumulated on the roadway, shoulder and road supporting structures and taking it away.
Net contract value: PLN 21 million
Time for completion: from 1 September 2023 to 10 May 2026
Operation, service, general maintenance and maintenance of efficiency of the infrastructure of the port in Gdańsk in terms of electric power management
Scope of works: General maintenance and operation and technical efficiency maintenance of the electric power infrastructure of sea port in Gdańsk. The Company is responsible, among other things, for the operation and maintenance of electric power networks and systems and transformer stations as well as for maintenance of efficiency of lighting of the port area and electric vehicle charging stations.
Net contract value: PLN 19 million
Time for completion: from 1 March 2023 for 46 consecutive months
Reduction of the electricity consumption by modernization of the infrastructure of external lighting in the city of Konin
Scope of works: Disassembly of existing mercury and sodium light fittings and replacing them with 1404 modern LED fittings with a remote-control system. Under the agreement, FBSerwis SA will also replace 1253 columns of lamp posts with new ones.
Net contract value: PLN 7 million
Time for completion: from 23 November 2023 to 31 July 2024
Collection and management of non-segregated municipal solid waste, commissioned by MZO (Town Waste Treatment Plant) in Wołomin
Net contract value: PLN 8 million
Time for completion: from 2 November 2023 to 30 November 2024
Collection and management of municipal solid waste with selective collection, commissioned by the Andrespol municipality
Net contract value: PLN 5 million
Time for completion: from 1 November 2023 to 30 November 2024
Management of non-segregated municipal solid waste and kitchen waste from Łódź
Net contract value: PLN 48 million
Time for completion: from 1 February 2023 to 30 June 2024
Management of municipal solid waste from Warsaw
Net contract value: PLN 30 million
Time for completion: from 11 April 2023 to 11 June 2025
Management of municipal solid waste from real properties, commissioned by Zduńska Wola
Net contract value: PLN 12 million
Time for completion: from 2 January 2024 to 31 December 2024
Collection of municipal solid waste from the owners of real properties from the Czernica municipality
Net contract value: PLN 10 million
Time for completion: from 1 January 2024 to 30 June 2026
Collection of municipal solid waste from the owners of real properties from the Żórawina municipality
Net contract value: PLN 7 million
Time for completion: from 1 January 2024 to 30 June 2026
Collection and management of municipal solid waste, commissioned by the Stronie Śląskie municipality
Net contract value: PLN 6 million
Time for completion: from 1 June 2023 to 31 May 2025
The trust in the Budimex Group and its strong market position result, among others factors, from highly ethical and high-quality work as well as the company’s careful compliance with the prevailing laws and regulations. All the activities in the area of corporate governance are connected with the Company’s corporate values, its long-term history and experience and are consistent with the obligations defined in the ESG Strategy for 2023-2026. They are also consistent with the UN Sustainable Development Goals about: economic growth and decent work (goal 8) and innovation (goal 9).
In 2023, solutions were implemented in Budimex SA making it possible to manage and supervise each of the ESG areas in the organization, also with regard to potential risks. Workshops were performed, among others, aiming to identify ESG risks and opportunities, as part of testing double materiality, with the participation of the owners of business processes.
Work was also continued on updating and developing internal procedures policies regarding, among others, counteracting conflicts of interest and corruptive events and reporting them. In the area of cybersecurity, one goal defined in the ESG Strategy was achieved by implementing safeguards based on Microsoft 365 cloud solutions.
At the same time, activities were intensified to raise employees’ awareness and a strategic obligation was fulfilled by revising and expanding the Code of Conduct. The document was prepared and will be implemented in the organization in the coming months, similarly to the Manual for dealing with situations where conflicts of interest occur or may occur. In the previous year, a compliance communication strategy was developed as well and it is to be implemented in 2024.
In the training area, in accordance with a goal defined in the ESG Strategy for 2023, classes in the compliance area were organized and a total of 1093 employees participated in them in the entire Budimex Group.
With respect to internal audit, all audits of business processes were completed in accordance with the adopted schedule for 2023.
[GRI 2-17]
In 2023, numerous projects were completed in the Budimex Group, aiming to raise awareness and expand knowledge of employees in the area of issues regarding the ethical operation of the Group companies in compliance with the law and internal regulations.
Issues such as preventing corruption and conflicts of interest, responsibility of collective entities, financial and environmental risks, cybersecurity and whistleblowing were discussed in several training programs, including Witaj w Grupie (‘Welcome to the Group’), Akademia Młodego Inżyniera (‘Young Engineer Academy’) or Akademia Inżyniera Kontraktu (‘Contract Engineer Academy’). An additional training course devoted to the topic of compliance was addressed to employees of specific organizational units and foreign markets: Slovak and German. In November 2023, there was also an all-day workshop for the top management of the Budimex Group, 1093 persons participated altogether in the compliance training conducted in the Group last year.
Furthermore, in 2023, a compliance communication strategy in the Budimex Group was developed. The project is oriented to the achievement of the following objectives:
A compliance information campaign will be carried out in 2024.
The Budimex Group operates in a dynamic business environment, which exposes the company to diverse risks and is also a potential source of many additional conditions and events. In this context, meticulous monitoring of the above factors and their flexible management is of key importance to the effective execution of the company’s strategic priorities.
The principal document regulating the area of risk identification is the Risk Control and Management Policy in the Budimex Group. It is the Budimex SA Management Board (at the Group level) and presidents of the subsidiaries which are responsible for defining a policy on controlling and managing risks, including tax risk. In addition, they bear responsibility for monitoring information systems and internal control mechanisms.
Risk management is performed at two levels: strategic and operational.
The strategic risk management includes the following risk categories:
The operational risk management includes the following risk areas:
Risk management is overseen by the Budimex SA Management Board. The system of risk identification in the Budimex Group is based on risk reviews: annual, half-yearly and quarterly.
A map of strategic risks is presented to the Audit Committee of the Budimex SA Supervisory Board.
The course of the risk identification and assessment process is as follows:
During a review of risks for 2023 performed within the strategic risk management process, significant risks were identified in the Budimex Group, as presented in table below.
Table: Significant risks identified for the Budimex Group in 2023
[GRI 3-3] [Own indicator 2] [GRI 206-1]
The Budimex Group does not tolerate corruption, always operates transparently and in compliance with the law, does not breach ethical standards and employs ways to establish relationships with business partners which are fair and consistent with the Group’s internal regulations.
The major areas of legal risks which the compliance system in the Budimex Group prevents include:
The fundamental document of the system is the Compliance Policy, defining general directions and principles of activity which should be followed by all employees and associates while discharging on-the-job and contractual obligations.
In addition, the Group has the following binding documents: Code of Conduct, Anti-Corruption Policy and a set of operating instructions, including Rules of conduct in the event of a proposal to accept a financial benefit or Rules of conduct in the event of a suspected breach of the Compliance Policy and preventing such breaches.
The compliance function was separated in Budimex SA. Mostostal Kraków SA and the FBSerwis Group. The companies adopted the Compliance Policy and also draw up their own internal rules in this area. The regulations in force in the remaining companies of the Budimex Group are coherent with provisions of the Compliance Policy.
In 2023, with regard to any of the companies of the Budimex Group, no legal steps were taken because of violations of free competition principles or anti-trust proceedings.
In the reporting period, an administrative procedure was conducted against Budimex SA by the President of the Office of Competition and Consumer Protection (UOKiK) pursuant to the provisions of the Act on Preventing Excessive delays in Commercial Transactions. The proceeding ended with a decision in which no grounds were stated to impose an administrative fine on Budimex SA.
Mostostal Kraków SA reported in 2023 to the President of UOKiK an intention of concentration involving the acquisition of exclusive control of PPUH Konstalex. As a result of the report, anti-trust proceeding was conducted, which terminated with a favorable decision of the President of UOKiK.
Ensuring compliance in foreign markets
In connection with the expansion of the Budimex Group in 2023, actions were taken to implement compliance principles in foreign markets. Solutions in this area were verified in the Group companies operating abroad with regard to the maintenance of coherence with the compliance system binding in Budimex SA. Special compliance training was also organized, taking into account local legal requirements.
Internal audit
Budimex SA, as a public company, is subject to a number of regulations and best practices imposing high requirements regarding the operation of corporate governance (International Standards of Professional Practice of Internal Audit [1], Best Practices of WSE Listed Companies 2021 [2],Best Practices of Public Interest Entities regarding the Rules for Appointment, Composition and Operation of Audit Committees [3]). The company’s activity also complies with the requirements of the ISO Standards, the Company Production Control and Technical Supervision Office (more information on the topic can be found in Chapter 2.2.). To guarantee compliance with all the above requirements, Budimex SA appointed the function of internal audit.
Internal audit is an independent and objective function designed to help the company achieve its business objectives by introducing a systematic approach to assessing and improving the risk management process, the system of control mechanisms and corporate governance, and by providing assurance on the effectiveness of these processes and advice. The function is performed by the business unit appointed for this purpose – the Internal Audit Department.
To ensure objectivity and independence of the Internal Audit Department, it reports in organizational terms directly to the President of the Management Board of Budimex SA. The Department Director reports to the Audit Committee of the company’s Supervisory Board.
The Department performs tasks through two reporting business units: the Corporate Audit Department, concentrating on providing assurance and advisory services in accordance with requirements of financial markets, and the Governance Systems Audit Department, verifying compliance with the requirements:
The greatest emphasis in the work of the Governance Systems Audit Department is placed on the Construction Projects Assessment System, developed during long-term practice at the level of the entire Ferrovial Group. With reference to the system, the audit supervision subsumes first of all compliance of construction projects with the standards of Budimex SA with regard to Occupational Health and Safety and environmental protection.
Internal auditors are obligated to perform tasks in accordance with the company’s internal regulations, in particular the Code of Conduct of Internal Auditors in compliance with the wording of the Code of Conduct of the Internal Auditors Institute [4], based on the highest ethical standards.
Anti-corruption
[GRI 3-3] [GRI 205-1] [GRI 205-3]
Implementing the guidelines of the OECD for multinational enterprises, the Budimex Group adopted regulations aiming to prevent corruption which include:
Anti-corruption regulations provide employees of the Budimex Group with clearly defined rules of conduct aiming to avoid events of corruptive nature. The fundamental assumption for the Group’s activity in the area is a zero-tolerance policy regarding corruption.
Additional internal regulations making up an anti-corruption system in the Budimex Group include: Compliance Policy, Code of Conduct, a set of operating instructions, ethical clauses in binding model agreements and Set of rules of conduct for business partners.
In connection with risk analyses performed in the Budimex Group, the following areas potentially exposed to the occurrence of corruption phenomena are identified:
Threats related to corruption are identified during the process of ongoing identification of threats as described in section 6.2. The following threats were identified:
In 2023, through one of the communication channels used in Budimex SA, 1 event of a corruptive nature was recorded. In accordance with regulations in force at the company, an internal investigation was carried out and recommendations were issued and implemented to mitigate the risk of occurrence of similar cases in the future. At the same time, the steps taken by the company clearly confirmed that it applies the zero-tolerance principle to such events, with persons committing breaches to suffer full consequences, including those which follow from labor laws.
At the beginning of February 2023, information appeared at the website of the National Public Prosecution Service about detentions and pretrial proceedings concerning the case of participation in an organized criminal group, money laundering, granting and accepting financial benefits while claiming to have influences in a local government institution and issuing and using fictitious VAT invoices. Among the detained persons, there three (now former) employees of the FBSerwis Group, including the President of the Management Board of FBSerwis SA who was at the same time Management Board member of Budimex SA. Here, we would like to explain that we refer to generally available information in the media because neither Budimex SA nor any of the companies from the FBSerwis Group is a party or a participant to the proceeding and does not have knowledge on a detailed course of the case and its present status.
To the employees of the FBSerwis Group, a preventive measure was applied in the form of pretrial detention for 2 and 3 months (then repealed), as a result of which the FBSerwis SA Supervisory Board decided to suspend the President of the Management Board for 2 months and the Vice President of the Management Board for 3 months. A similar decision was made by the Budimex SA Supervisory Board about the President of the Management Board of FBSerwis SA as a Management Board member of Budimex SA. Then both persons were dismissed from the FBSerwis SA Management Board composition, and the President of FBSerwis SA also from the Budimex SA Management Board composition. All of their employment contracts were also terminated. As at the publication date of this report, the persons no longer remain in an employment relationship with any of the companies of the FBSerwis Group nor in any corporate relationship within the Budimex Group.
What should be emphasized is the fact that the case about which the proceeding is being conducted is not connected with at all nor related to the operating activity of Budimex SA because the company does not do any business activity associated with waste management (including waste collection or processing).
In connection with the pending proceeding, an audit of the companies from the FBSerwis Group was initiated, as a result of which organizational changes were introduced there with regard to decision making and changes in the compliance structure.
The issue of preventing corruption is an important element of compliance training organized by the managerial staff and employees of the Budimex Group – more information on the topic is available in section 6.3.
Management of conflicts of interest
[GRI 2-15]
One of the most important areas of the Budimex Group’s operation is management of conflicts of interest, which is carried out by applying relevant policies. This area is also a material topic from the G area of the company’s ESG strategy.
Issues connected with the management of conflicts of interest are regulated in the Code of Conduct. In addition, operating instructions are applicable in this area, laying down the rules for:
To manage the risk of conflicts of interest effectively, in 2023, the ESG Strategy adopted by the Management Board provides for expansion of the relevant internal regulations and broadening employees’ knowledge, in particular by preparing a handbook about how to act when a conflict of interest takes or may take place.
Reporting potential irregularities
The whistleblowing system operating in the Budimex Group to report actual or potential breaches of the law and internal regulations is described in the following documents:
A whistleblower can remain anonymous and no retaliation measures will be taken against someone who reports irregularities in good faith. In accordance with the Compliance Policy, the management board of a given company from the Budimex Group is notified of all received reports.
At Budimex SA, the following channels are provided for compliance communications:
The platform for receiving anonymous reports from whistleblowers ensures secure two-way communication. A whistleblower receives confirmation that the report has been received and its number, and is notified of the outcome of the internal investigation once it has been completed. A detailed analysis of each case, while maintaining confidentiality, is carried out by the Chief Legal Officer for the Compliance area in cooperation with organizational units of Budimex SA.
Reports are not used to undermine the role of legitimate trade unions and other equivalent employee organizations in resolving disputes with the employer. Nor do they prevent or impede access to the courts and out-of-court mechanisms for reporting breaches and reviewing complaints.
Each report is entered in the compliance register, which records the course of the internal investigation and the recommendations issued for further actions.
Employees of Budimex SA are informed about the above communication channels during compliance training. These channels are also indicated in the intranet.
In Mostostal Kraków SA, any breaches should be reported to the compliance policy coordinator through a special email box, in person or through an employee’s supervisor. The coordinator registers and reviews reports and archives them.
The FBSerwis Group, making efforts to maintain the highest operating standards, established diverse opportunities for reporting any breaches.
Reports may be submitted:
The rules of submitting reports, reviewing and registering them are similar to those in force at Budimex SA.
In all the companies from the Budimex Group, in accordance with the Compliance Policy, the management board of a given company is notified of all received reports.
Grievance mechanisms for third parties
External stakeholders may consult any issues related to the Compliance Policy through general channels used by them to communicate with the Budimex Group. The Group treats with due care any information obtained in that way and provides such information each time to relevant persons responsible for compliance.
Management of negative impacts
Where Budimex Group causes or contributes to a negative impact, e.g. with local communities, it cooperates with the affected parties in remediation measures, whose aim is to prevent similar negative impacts in the future.
[1] Prepared by the Institute of Internal Auditors (IIA) and available at: https://www.iia.org.pl/o-nas/standardy.
[2] Best Practices of WSE Listed Companies 2021 are available at: https://www.gpw.pl/dobre-praktyki2021.
[3] The practices prepared by the Office of the Polish Financial Supervision Authority and are available at: https://www.knf.gov.pl/knf/pl/komponenty/img/Dobre_praktyki_dot_zasad_powolania_skladu_i_funkcjonowania_
komitetu_audytu_konsultacje_24-12-2019_68378.pdf.
[4] The Code is available at: https://www.iia.org.pl/o-nas/kodeks-etyki.
[GRI 2-12] [GRI 2-13] [GRI 2-14] [GRI 2-16] [GRI 2-17] [GRI 2-18] [GRI 2-29]
At Budimex SA, comprehensive oversight of the performance of ESG activities, and thus in the sphere of social, environmental and corporate governance responsibility, is exercised by the ESG, Quality and Environmental Protection Department [1]. Within it, there is an organizational cell of ESG Manager, whose scope of responsibility includes:
In addition, coordination and supervision of activities in each ESG area are assigned to the following business units:
The Management Board assesses activities for implementing the company’s ESG/sustainability strategy and its members support the achievement of the objectives defined therein which are part of the areas of their business responsibility by assigning financial and human resources and cooperating to develop solutions. The assessment is made at the Management Board’s meetings based on information on the progress in the implementation of the objectives provided by the ESG Manager. In accordance with the assumptions of the strategy, reporting of the issues to the Supervisory Board will start in 2024. Based in a review of the level of the ratios defined in the document, the Supervisory Board shall assess the effectiveness of each business unit’s supervision of the management of the organization’s impact on sustainability issues.
The Supervisory Board and the Management Board of Budimex SA exercise strategic and quality supervision of the sustainability processes operating in the Budimex Group and monitor their effectiveness. Furthermore, it is the Management Board and the Supervisory Board that make the final decisions within the Group’s mechanisms of reporting and reviewing irregularities.
The Management Board is regularly informed about the findings of conducted processes in the area of sustainability, including key risks (also concerning ESG) and cases of incompliance with laws and internal regulations. In 2023, no critical infringements were reported to the Management Board.
The Management Board is involved in and recommends improvements to the organization’s processes and activities in the ESG sphere after having been provided with relevant information. In addition, the Management Board makes key decisions which have an impact on strategic directions of development of the Budimex Group, taking into account sustainability principles. Duties of the Management Board also include approving strategic plans in the area as well as approving integrated reports which incorporate comprehensive information on ESG.
In 2023, what was discussed and approved by the Management Board were assumptions of the ESG Strategy for 2023-2026, which were consulted with the Supervisory Board. On 30 June 2023, the Management Board approved the strategy, described in detail in section 3.3.
In 2023, the Management Board members of Budimex SA were involved in a dialog with internal stakeholders on key issues connected with sustainability and with elected representatives of external stakeholders, in particular within the organization and at industry meetings.
The Management Board members regularly extend their knowledge and skills in the sphere of sustainability/ESG. Information on their competences and experience can be found at: https://www.budimex.pl/pl/o-budimex/wladze.
The process of sustainability management of the Budimex Group will be supported by findings of the analysis of ESG risks and opportunities conducted in 2023 and described in detail in section 6.2.
[1] Until February 2024 under the name of „Procurement, Quality and Environmental Protection Department”.
[2] Until February 2024 under the name of „Procurement, Quality and Environmental Protection Department”.
[GRI 2-10]
The process of appointment of the Management Board of the parent company of the Budimex Group – Budimex SA – is regulated in the company’s articles of association, the Supervisory Board Bylaws of Budimex SA and the Management Board Bylaws of Budimex SA. The President of the Management Board and upon his or her request, Vice Presidents and the remaining Management Board members, are appointed and dismissed by the Supervisory Board for the period of joint term of office of three years.
The process of appointment of the Supervisory Board is regulated in the company’s articles of association and in the Supervisory Board Bylaws of Budimex SA. Supervisory Board members are appointed by the Shareholder Meeting for the period of joint term of office of 3 years. The Supervisory Board elects the chairperson from its members and, if needed, the deputy chairperson and secretary.
The Shareholder Meeting attaches particular importance to ensure at least minimum required participation in the Supervisory Board persons satisfying the independence criteria defined in the Act on Statutory Auditors, Audit Firms and Public Supervision of 11 May 2017 and regulations on corporate governance of listed companies.
Diversity Policy of the Supervisory Board of Budimex SA and Diversity Policy of the Management Board of Budimex SA are described in Chapter 5.3.
Supervisory Board Committees
As at 31 December 2023, the Audit Committee consisted of the following members:
During 2023 the composition of the Audit Committee did not change.
With regard to the satisfaction of independence criteria by the members of the Audit Committee, the following shall be applicable as appropriate: provisions of Article 129 (3) of the Act on Statutory Auditors, Audit Firms and Public Supervision of 11 May 2017 and independence criteria for Supervisory Board members within the meaning of Best Practices of WSE Listed Companies 2021.
The independence status of a Supervisory Board member is determined by the company in accordance with the criteria described in Operating Instruction no. IO-01-07-02 on information from Supervisory Board members and making it public, based on representations made by the Supervisory Board members pursuant to Article 129 (3) of the Act on Statutory Auditors, Audit Firms and Public Supervision.
As at 31 December 2023, the Investment Committee consisted of the following members:
The composition of the Investment Committee changed on 27 April 2023 in connection with the resignation of Mr. Dariusz Blocher from membership in the Supervisory Board, which also made him terminate discharging the function of the committee member.
As at 31 December 2023, the Remuneration Committee consisted of the following members:
As of 1 April 2023, the function of a Committee member began to be discharged by Ms. Silvia Rodríguez Hueso. As of 27 April 2023, in connection with the resignation of Mr. Dariusz Blocher from membership in the Supervisory Board, he stopped discharging the function of a member of the Remuneration Committee.
The major tasks of the Committee include [1]:
Remuneration policy
[GRI 2-19] [GRI 2-20] [GRI 2-21]
Remuneration rules for Management Board and Supervisory Board members of Budimex SA are regulated by the generally accessible Remuneration policy for members of governing bodies of Budimex SA [2]. Provisions of the Policy aim to motivate the authorities of the Budimex Group to achieve the best results correlated with its strategic objectives.
The remuneration amount of the President and members of the Management Board is set by the Supervisory Board, taking into consideration recommendations of the Remuneration Committee. The entire remuneration package includes fixed compensation, variable compensation in the form of bonuses and long-term incentive programs and extra benefits. In 2023, the amount of variable compensation of Management Board and Supervisory Board members was not linked to sustainability results achieved by the company.
The Supervisory Board is responsible for supervision of the policy and at least once a year, on the basis of, among others, payroll reports and observation of market trends, reviews the remuneration rules and makes an assessment of how they affect the management of the organization.
In order to ensure the highest quality of the process, an audit firm supports the Supervisory Board in the reviews.
The supervisory functions are performed by the Supervisory Board through the Remuneration Committee (REMCO), which convenes on a quarterly basis. The duties of REMCO are described in its Rules and Regulations and the Supervisory Board Bylaws.
Pursuant to the Best Practices of Companies Listed on Warsaw Stock Exchange 2021 remuneration of Supervisory Board members consists of fixed compensation and does not include components dependent of the Group’s results.
Pursuant to SRD II. i.e. Shareholder Rights Directive 2017/828, every year, Budimex SA publishes a report on remuneration of persons discharging managerial and supervisory functions. Shareholders at a Shareholder Meeting give opinions on the Supervisory Board report on remuneration of the company’s Management Board and Supervisory Board members. Once every 4 years, the Shareholder Meeting reviews the Remuneration policy for members of governing bodies of Budimex SA.
[1] Board of Directors, Supervisory Board and Audit and Remuneration Committees can be found at: https://www.budimex.pl/pl/o-budimex/lad-korporacyjny.
[2] The Remuneration policy for members of governing bodies of Budimex SA may be accessed at:
https://www.budimex.pl/repository/relation/Lad_Korporacyjny_2020/PL/
[GRI 3-3] [Own indicator 5]
The Budimex Group companies are happy to become actively involved in charitable activities and additionally run sponsorship projects. The document regulating this area of their activities is the Instruction for approving sponsorship or patronage projects and donations.
In 2023, companies helped those in need, especially as part of programs they initiated in previous years and of long-term cooperation with local non-governmental organizations and public institutions.
BUDIMEX SA
Parent Zone
The Parent Zone is a Poland-wide social program initiated and financed in full by the company. As part of activities undertaken in pediatric wards in hospitals throughout Poland, space is created by appropriately arranging premises or sections of corridors which are not in use for the youngest patients to spend time with their parents, forget about their illnesses and discover the world through play. The project has also a broader dimension – it promotes emotional and health benefits arising from the family involvement in care over a treated child. It is carried out with the participation of Budimex SA employees who become engaged as volunteers in arranging these zones e.g. by performing minor fit-out works. In 2023, we created a Parent Zone in a hospital in Ełk. The program’s website: https://strefarodzica.budimex.pl.
Home from the Heart
Another edition, being already the third edition, of the Home from the Heart program was started in 2023, The purpose of the program is to support families affected by housing and financial problems. This time, Budimex SA, supported by other construction companies and volunteers from the Budimex Group companies, is building a modern and environmentally friendly modular house for Teresa who has become homeless as a result of fire. The house, fully fitted out and equipped, will be delivered in spring 2024.
More information on the initiative can be found at: https://domzserca.pl.
Hello ICE
The Hello ICE education initiative is also an authorship initiative. It consists in organizing interesting, interactive lessons on safety, during which preschoolers and primary schoolers learn appropriate behavior on the road and are taught to provide first aid. In 2023, the subject matter of the project was extended to include knowledge on how to safely ride roller skates, scooters or electric bicycles. In the aforementioned year, over 20 thousand children from various education establishments took part in a total of 160 meetings with Budimex SA volunteers and the police and fire service representatives.
More information about the initiative under the honorary patronage of the Minister of Sports and Tourism can be found at: https://helloice.pl.
Support for other initiatives and entities
In 2023, Budimex SA continued to co-finance the Diamond Explorers scholarship program, which is aimed at providing financial support to talented and effectively operating groups of young people, to make it possible for them to participate in prestigious nation-wide and international exact and engineering science competitions. More information about the project can be found at: https://odkrywcydiamentow.com.pl.
Budimex SA continued, in the preceding year, its assistance activities addressed to young people facing difficult life circumstances, by providing funds to finance the activities of the Demos Foundation which arranges for premises for conducting pedagogic, educational, therapeutic and sports activities, as well as organizes scholarship programs and workshops for youth leaders. The company also supports the purchase of school equipment and the organization of educational tournaments and holiday rest for school students in areas fighting poverty in the following voivodships: Warmińsko-Mazurskie, Mazowieckie, Podlaskie and Łódzkie, as well as the operation of volunteer fire-fighting teams. Other areas of the company’s engagement in 2023 included, among other things, assistance to Polish Army soldiers injured while on military missions abroad and to their families, the development of youth sports and the protection of the historic Powązki Cemetery.
In the year covered by the report, Budimex SA also supported the Foundation for the Development of the University of Gdańsk which is responsible for the maritime station and seal center in Hel. As part of the cooperation, the seal rehabilitation center received a sophisticated biochemistry analyzer. The equipment will considerably reduce the waiting time for blood test results which will significantly increase chances to save treated animals.
MOSTOSTAL KRAKÓW SA
In 2023, charitable, social, cultural, research and sports initiatives addressed to the local community received support from the company in the form of donations. The company supported the statutory activities of a total of 21 entities. Moreover, Mostostal Kraków SA sponsored the girls’ volleyball team UKS Jedynka Kluczbork. The correctness and transparency of the company’s engagement was ensured by the Committee for Donations appointed in it, which each time gave consent to the company’s participation in a given initiative. Charitable and sponsorship activities are regulated in Operating instruction IO(MK)-01-05-08.
The company participated in a total of 36 pro-social projects in 2023 (apart from charitable projects they included e.g. information campaigns), organized at the initiative of employees, local governments, care and education centers for children and young people and hospitals and at the invitation of business partners. The company’s objective for the year was to double the number of pro-social projects and expenditures. The objective was met.
FBSERWIS GROUP
In 2023, the FBSerwis Group provided financial support to, among others, the following categories of entities:
Total expenditure of the Budimex Group for social purposes
The total of all donations made by Budimex SA in 2023 was approximately PLN 1.28 million, with a total value of all sponsorship projects of the company over that period reaching PLN 1.79 million. The FBSerwis Group companies provided approximately PLN 129 thousand in the form of donations and approximately PLN 118 thousand as part of sponsorship projects, whereas Mostostal Kraków SA provided, respectively, PLN 185 thousand as donations and PLN 200 thousand as part of sponsorship projects.
Figure: Expenditure of the Budimex Group for social purposes
The Budimex Group’s contribution to sustainable socio-economic development in the local or regional scale or throughout Poland is based mainly on it performing the following roles:
The Budimex Group makes a significant contribution to the state budget and local budgets. In 2023, it paid a total of PLN 1,083 billion on account of corporate income tax, VAT and real estate tax.
Table: Direct economic value generated by the Budimex Group
[GRI 201-1]
Budimex SA is a large employer, providing direct employment to 7,337 persons [1]. In 2023, the company allocated as much as PLN 1,536 million for salaries and employee benefits. It invests in the development of teams and supports the education of future human resources, especially engineering staff for the national construction sector. This is enabled in particular through the internship program for higher education and technical school students.
Budimex SA has signed over 40 partnership agreements with higher education institutions, technical secondary schools and vocational schools. 363 higher education students were admitted to paid internship in 2023. In addition, the company runs the BX Ambassador program in which selected students of engineering faculties participate. In the academic year 2023/2024, 17 ambassadors from 16 Polish higher education institutions promote the Budimex Group as an employer among their peers.
Budimex SA also runs a program of cooperation with secondary technical schools in which currently 40 schools participate. In 2023, 61 school students had their vocational internship in the company as part of their technical secondary school education program.
In 2023, the company organized 99 events addressed to higher education students and 38 events for schools. They have the form of, among others, trips to construction project locations, job fairs (often combined with talks and/or presentations on the Budimex Group) and lectures.
In addition, Budimex SA supports various competitions and projects at universities and high schools, such as the “Zwolnieni z Teorii” Program and the Building Knowledge and Skills Olympiad, aimed at motivating young people to develop and improve their professional skills in the construction industry.
As the purchaser of a number of products and services necessary to carry out contracts, the Group companies contribute to maintaining thousands of jobs in its value chain.
The research and development work undertaken by the Budimex Group contributes to the development of the construction sector, which also includes reducing its impact on the environment and enhancing the safety of works conducted. Additional information on this issue can be found in Section 2.11.
The Group companies support important pro bono goals, among other things by providing donations to local non-government organizations.
[1] As at 31 December 2023.
[GRI 2-29] [GRI 2-23] [ESRS SBM-2]
The Budimex Group is committed to building long-term relationships with relevant stakeholders, in which it is guided by the company’s values described in Section 3.1. We encourage stakeholders to share their observations, and we use conclusions drawn from them in development processes to make the company more dynamic and sustainable. The communication form is chosen to meet the specific needs of a given group and to communication possibilities of both parties. We also put a lot of importance on sharing information about our impact on the environment, communities and our internal regulations for managing this impact in a transparent way, as well as on communicating our actions in the area of sustainability.
Table: Identified relevant stakeholders of the Budimex Group
The Budimex Group’s responsibility for the actual and potential impact on the surroundings is manifested through the actions it undertakes in the social area. They arise from the company’s mission and its corporate values, as well as from the commitments defined in the ESG Strategy 2023-2026. They allow the Group to contribute to the UN Sustainable Development Goals regarding health and wellbeing (goal 3), education (goal 4) and gender equality (goal 5).
In 2023, as part of further improvement of employment terms and employee comfort, another edition of a periodic commitment survey was launched, which made it possible to define the areas requiring improvement or refinement.
To enhance the wellbeing of the company’s team members, they were offered an opportunity to participate in webinars on preventive healthcare, as well as to receive psychological support in the form of a specialist on-call helpline.
The importance of safety rules, constituting a priority for the construction sector, was highlighted and the monitoring of potentially hazardous incidents and the exchange of knowledge were continued – both among employees and with partners and subcontractors. In accordance with a strategic intention, the Safety Week was run in the case of over 90% of contracts (94%) carried out by the company. Also 576 safety visits were made to projects carried out under contracts.
Since the continuous development is seen as an obligation towards team members and customers, a number of training programs were continued in the company (Young Engineer Academy, Contract Manager Academy, Super Leader or Management Stairway). A total of over PLN 8.5 million were allocated for training and other development initiatives, which exceeded the strategic assumptions for 2023.
In 2023, actions aimed at promoting diversity in the organization were continued at Budimex SA. Three information campaigns concerning cross-gender and cross-cultural nad intergenerational differences, as well as cooperation with people with disabilities, were conducted. The company hired 40 trainees from Ukraine, and 14 employees of Budimex SA went to the United Kingdom and Australia as part of the Global Mobility program to work there under Ferrovial contracts. To prepare the organization for growth in neighboring markets, allowances for persons working on projects abroad were introduced in Budimex SA.
Knowledge about social changes and willingness to respond to future challenges for the construction sector were the driving force of the Budimex Group’s initiatives addressed to young generations. The assumed strategic objective, consisting in reaching at least 5,000 school and higher education students with education programs, was achieved through the organization of, among others. 142 events and 27 lectures in technical secondary schools and higher education institutions.
Additionally, as part of its social engagement, Budimex SA conducted in 2023 new editions of the company’s flagship programs focusing on initiatives for the benefit of local communities, equalization of opportunities and education of the youngest generations. For example, the company opened the 42nd Parent Zone in Ełk and initiated the 3rd edition of the Home from the Heart project as part of which it is rebuilding a house of Teresa in Wołomin together with the Polish Development Fund. In 2023, the subject area of the Hello ICE campaign, aimed at promoting knowledge of road traffic among preschoolers and primary schoolers, was extended to include roller skating and scooter or electric bicycle riding.
[GRI 3-3] [GRI 403-1] [GRI 403-2] [GRI 403-3] [GRI 403-7] [GRI 403-8]
As a construction sector company, the Budimex Group regards occupational health and safety issues as particularly important. Regulating them appropriately and adhering to the rules in force is a key component of our responsibility towards employees, as well as other relevant stakeholders who expect us to meet the highest standards when carrying out contracts. Guaranteeing employees safe working conditions clearly follows from the Group’s fundamental values and has been directly included in our ESG Strategy 2023-2026.
Since 2019, Budimex SA has held a certificate confirming the compliance of the occupational health and safety management system with international standard ISO 45001, and Mostostal Kraków SA also got this certificate in 2020. ISO 45001 assumes the engagement of all entities participating in the project implementation process in creating safe jobs, which is an approach shared throughout the Budimex Group.
In addition to management systems, the Ferrovial minimum occupational health and safety standards are in force in the Budimex Group. Their main purpose is to organize the construction process taking into account the rule whereby each Group employee and a representative of its business partner should go back to their close ones after work. It is additionally stressed in the document that nothing should stop us from respecting safety rules for which we always have to find time.
All cooperation offers made to us by the suppliers of goods and services must take into account the catalogue of the occupational health and safety requirements supplementing the requirements provided for by law, and the appendix defining our expectations in this respect constitutes an integral part of the signed contracts. Additional information on our raising of standards in the supply chain can be found in Section 7.5.
In addition to the Ferrovial Group’s standards and Budimex SA’s internal standards, the occupational health and safety standards set out in the Agreement for Safety in Construction [1] of which Budimex SA is a signatory and a founder member are implemented. They are based on many years of construction practice of the members of the Agreement and take into account all project stages, from planning to construction works.
All subcontractor employees carrying out work for Budimex SA are covered by identical occupational health and safety rules and internal regulations as the company employees.
Occupational health and safety policy
The Occupational health and safety policy [2] is obligations of the top management of the Budimex Group to use experience, technical solutions and effective management systems to ensure safe and healthy conditions for carrying out contracts, which will effectively prevent accidents and cases of work-related ill health of the employees of companies and subcontractors and will allow to maintain a high level of labor safety.
The detailed guiding principles of the Occupational health and safety policy are:
Occupational health services
The Budimex Group fulfills its obligations in the area of occupational health services, by referring its employees for preliminary and periodic examinations.
The companies forming the Group have entered into agreements for the provision of occupational health services with Medicover Polska Sp. z o.o., which provides comprehensive healthcare services and, as a healthcare institution, runs, among others, the Outpatient Care Center whose facilities are basic entities of the occupational health service system. Medicover is entitled to provide healthcare within the meaning of the Act of 27 June 1997 on occupational health service and to conduct medical examinations of employees and issue medical certificates on the basis of the Regulation of the Minister of Health and Social Welfare of 30 May 1996 regarding the conducting of medical examinations of employees, the scope of preventive healthcare of employees and medical certificates issued for the purposes provided for in the Labor Code and other provisions of generally applicable laws.
Table: Workers covered by an occupational health and safety management system
[GRI 403-8]
Budimex SA contracts, and Medicover undertakes to provide, the following occupational health services:
Additionally, employees have access to an extensive package of healthcare services including, among others, services provided by a psychologist, psychiatrist and other doctors, including dental services.
Medicover also carries out sanitary and epidemiological tests for candidates for work and the employees of the Budimex Group if such tests are necessary to fulfil duties in a specific position.
A referral to an occupational health doctor for an employee or a candidate for work is issued by the employer. It contains the following information:
The employee/candidate for work is referred for consultation and examinations on the basis of a referral. Subsequently, based on their results, a doctor licensed to conduct occupational health examinations issues a certificate confirming the absence or existence of contraindications for performing work in a specific position.
As part of the above-described process, the Budimex Group is required to:
Healthcare services are provided in Medicover Centers, the Damiana Center and facilities cooperating with Medicover. The employer helps employees to arrange for occupational health examinations by contacting the Medicover helpline. If works are started under a new construction contract to be carried out away from large cities in which Medicover has its branches, the Group company requests it to enter into an agreement with healthcare centers located close to the location of the construction works in order to facilitate its employees access to healthcare services.
Occupational health and safety committees and the Occupational Health and Safety Executive Committee
Occupational health and safety committees with the participation of employees and the employer, which represents all employees, operate in the companies forming the Budimex Group.
At the end of 2019 and beginning of 2020, additionally an Occupational Health and Safety Executive Committee was established at the initiative of the President of the Management Board, composed of company presidents, construction directors, branch directors and the director of the Labor Safety Department. It undertakes strategic actions in the area of raising the occupational health and safety level in the Budimex Group. One of its tasks is to develop plans for subsequent years, that is to set safety related goals for the entire Group.
A regular item of the agenda of the committee’s meetings is a discussion on the current occupational health and safety statistics in the company and decisions regarding lines of actions aimed at ensuring safe working conditions.
Employees at all levels of the organization are engaged in monitoring the safety status. Occupational health and safety services conduct safety inspections and a team of auditors monitors the correctness of operation of the occupational health and safety management system with the use of system audits. The compliance of the systems of work under contracts is verified through the Construction Assessment System audits.
Since 2019, the senior management of Budimex SA has been making visits aimed at building a safety culture at all levels of the organization. Over 600 of such visits were made in 2023. The aforementioned goal is also attained by providing all employees of the Budimex Group with access to the IT system, which enables them to report observations, incidents and accidents which are subsequently analyzed by the Labor Safety Department. The company puts a special emphasis on making employees report as many occupational health and safety issues as possible, since this allows us to focus on the most serious hazards and look for ways of eliminating them.
Accident prevention and training on occupational health and safety
[GRI 403-3] [GRI 403-4] [GRI 403-5]
We aim at ensuring that our teams act in accordance with the best occupational health and safety practices in their daily work. Training in this respect is organized more often than required by law, and its program is developed jointly with employees.
In the Budimex Group, each occupational health and safety incident is described in accordance with the requirements of Polish law, and also in accordance with the procedures and classification adopted by the Ferrovial Group, with the internal regulations of our strategic investor being more detailed than national laws. Our company additionally conducts more in-depth analyses of occupational health and safety incidents which are potentially fatal, i.e. are internally classified as HiPos (High Potential). According to the definition, it is any incident that potentially results in an accident or an actual accident which in other circumstances could result in real, serious injuries/diseases, death or serious material damage. Conclusions drawn from this type of incidents are discussed at weekly meetings of the top management of the Budimex Group, in a circle of a few hundred people performing management functions in the entire company (the procedure referred to as an executive incident review, EIR), and then cascaded throughout the organization as lessons learnt. Moreover, in cases agreed by the Occupational Health and Safety Executive Committee, other actions are taken at the level of companies and contracts.
The organization has decided that not each accident belonging to the same category involves the same potential effect, and therefore it has focused on a detailed analysis of the most serious ones. Such an approach makes it possible not only to conduct a more detailed analysis and to better adapt solutions to the structure of the entire company, but owing to the engagement of the senior management it has given an appropriate weight to decisions taken and has ensured resources necessary to implement them.
Examples of decisions taken in 2023:
As part of periodic instructions provided by direct superiors, employees may update their knowledge on the most important hazards and occupational health and safety rules relating to tasks they perform. Campaigns are conducted in the Budimex Group regarding the safety standards applicable in it, in which both intranet and standard communication tools, such as posters and leaflets placed and distributed in offices and at construction sites, are used. Many occupational health and safety training sessions for the company employees were held in 2023. In addition to the standard training required by law, the occupational health and safety module was also delivered as part of the Contract Manager Academy and Young Engineer Academy throughout the year. Approximately 200 persons working in specified positions took part in it. Figures concerning the participation in preliminary, periodic and specialist occupational health and safety training can be found in subsection 5.1.6.
The Kelvin TOP-SET training, focusing on analyzing root causes, was organized as development training for the occupational health and safety services with the aim of enhancing the quality of analyses conducted by them after incidents and accidents. A selected group of specialists became the internal trainers of this incident and accident investigation methodology.
Safety Week
In 2023, the tenth, jubilee Safety Week was held in the Budimex Group and in companies being parties to the Agreement for Safety in Construction. Its slogan was “I watch and don’t risk! STOP has power”, and it focused on safe logistics and transport organization, that is activities common in the construction market irrespective of the type of construction. With reference to the theme of the event, we equipped nearly 1,700 company cars with car packages, and webinars devoted to road safety used to gather over 300 listeners in a single session.
Apart from the main slogan of the Safety Week, a number of other actions promoting safe work were prepared in the Budimex Group. In their vast majority, they were local initiatives of construction projects and plants. As part of 191 contracts, we run a total of 572 occupational health and safety initiatives and training courses attended by nearly 6,000 representatives of the Group and 548 representatives of companies cooperating with us. Also an Internet occupational health and safety challenge addressed to the Group employees made its debut. It was taken up by 720 persons who answered questions and solved riddles relating to a safe work system. We also conducted 38 first aid training sessions and 26 fire protection courses. As part of the 10th edition of the event, an art contest with prizes was held, addressed to the Budimex Group employees’ children.
Other occupational health and safety initiatives
Labor safety information was included in a number of periodic education and development programs launched in the Budimex Group. In 2023, as part of the Young Engineer Academy, training sessions for young construction engineers were held, presenting the most important aspects of safety management at the level of a construction contract and cooperation with subcontractors, and the practical application of this knowledge, which was illustrated using the example of works at a height. As part of the Contract Manager Academy, employees preparing for the role of a manager attended classes on building a safety culture and leadership in this area.
In 2023, we continued also the Step Up campaign, the purpose of which is to point out areas with the highest likelihood of the occurrence of accidents and serious injuries. The campaign promoting the prevention of injuries and incidents was conducted with the participation of the President of Ferrovial Construction, Ignacio Gastóna, in all companies of the Ferrovial Group. A safety campaign relating to the introduction of machinery into construction sites and its maintenance was also organized. Films and other materials presenting the method of verifying a machine to be introduced were produced as part of it, which were shown to the Group employees and subcontractors present at the construction sites.
Occupational health and safety risks
The exposure of the Budimex Group employees to hazards depends on the nature of the work performed by them. In the case of construction contracts, they include mainly hazards relating to the risk of falling from heights, becoming injured while handling building machinery and being involved in road incidents. With respect to Mostostal Kraków SA, hazards are related not only to construction works, but also to work in permanent establishments producing steel structures. The FBSerwis Group employees, on the other hand, responsible for maintaining roads and motorways, are exposed mainly to public space risks, and also to hazards relating to the processing of waste in plants.
All accidents, irrespective of their consequences, are treated very seriously in the Budimex Group. Each incident assessed as potentially fatal (HiPo) is communicated to the entire organization in the course of an EIR meeting and through alerts.
Very diverse works are carried out in the Budimex Group and therefore various methods of assessing and minimizing work-related risks are used. The following issues are of key importance in this context:
Additionally, the Budimex Group keeps a register of operational and strategic risks, specifying occupational health and safety hazards, their potential impact and the methods of minimizing them. More information on risk management in the Budimex Group can be found in Section 6.2.
Table: Indicators pertaining to occupational health and safety issues
[GRI 403-9]
[1] They can be found at: https://www.porozumieniedlabezpieczenstwa.pl/standardy-bhp.html.
[2] The document is available at: https://www.budimex.pl/pl/zrownowazony-rozwoj/zintegrowany-system-zarzadzania.
Coaching and mentoring
Development activities [1] are offered not only to top management members, but also to middle-level executives, both in central and production units. Coaching is aimed at developing the competences indicated to be strengthened by the employees themselves or their superior. It makes it possible to achieve durable changes in behavior and attitude. leading to the maximalization of the person’s professional and personal potential, and is highly valued by our team members. Coaching is provided in the Budimex Group based on a specific process and is confidential. The company cooperates with over a dozen external coaches in this respect.
In 2023, another edition of the mentoring program, called officially Masterful Synergies, was launched. A record number of mentors and mentees – 40 women and men among whom there were specialists, managers, directors and Management Board members – joined the program. The overall objective of the program is to exchange knowledge and experience and to build cooperation. The goals attained by the mentee by definition support work effectiveness, and thereby the results of the entire Group. The program focuses on technical, expert, managerial and leadership competence building, reinforcing employees’ strengths, preparing for or adapting to new roles, supporting women’s development and teaching how to manage stress and workload. We prepared a cycle of training sessions and webinars for mentors and mentees, as well as information and education materials concerning the project and their roles.
Contractor Academy
A program designed for specialists newly employed in the Budimex Group and those with many years of experience in the organization. The Academy’s purpose is to provide and systematize knowledge on contract terms and to establish a strong team of experts who exchange experience and are a strong partner for businesses. The program was implemented from May 2022 to October 2023 by internal and external trainers for a group of 47 persons. Classes were held in four blocks – contract terms, legal aspects, professional effectiveness and personal effectiveness.
Young Engineer Academy
A development program addressed to newly hired engineers and trainee engineers. Its purpose is to efficiently introduce such persons to work in the organization, exchange experience already gained and build awareness of development opportunities in the Budimex Group. It consists of training sessions and workshops on the economic and formal and legal aspects of production, the building of relationships with external and internal partners, stress management, best communication practices or business security. The program also standardizes the key competences required from engineers and enables them to act more efficiently in accordance with the rules applicable in the Group, Two editions of the program were launched in 2023, 6th and 7th, with a total of 104 participants.
Engineer Academy
A cycle of training courses conducted by internal and external experts in specific fields, implemented in the organization for contract staff. Their participants may broaden and update their technical knowledge and exchange best practices. In 2023, we complemented the Engineer Academy with a waste management module. which was taken by over 100 persons. A similar number of employees participated in training for construction managers and a total of 441 persons took part in the Engineer Academy program last year.
Contract Manager Academy
A program supporting newly appointed contract managers and persons who are being prepared to be promoted for this position with acquiring knowledge, subject-matter competences and managerial skills relating to managing a contract and a team. The Academy is divided into several stages and includes, among others, a module dedicated to the standards applicable at Budimex SA delivered by internal trainers. as well as workshops on business security, negotiations and team management. 43 persons participated in the program in 2023.
Academy for Regional Economic Managers
A program initiated in 2023 in response to the need to update knowledge, and first of all to the changing environment and employees’ expectations and requirements. The purpose of the Academy is the exchange of experience among participants and providing them with management methods and tools. It consists of four modules which are leadership in action, team in change, mental wellbeing and difficult conversations, and I as a female leader/I as a human being. Over 20 employees on average participate in particular Academy for REM modules.
Super Leader
A program aimed at building leadership competences among senior executives and managers by reinforcing strategy communication skills, subordinate team development skills and skills relating to engaging employees in attaining joint goals. It consists of three modules, each of which presents a different leadership style. Before starting group classes, participants undergo an organizational climate diagnosis and a diagnosis of the applied leadership styles to obtain development guidance on this basis, In the following steps, they improve their skills in the course of workshops alternating with coaching sessions and master class sessions and implementation tasks they perform. In addition, each of them receives a set of materials to work on the development of a specific leadership style. In 2023, the third edition of the Super Leader program was completed by 82 persons, to whom feedback was provided at the diagnosis stage by over 610 employees. The program is implemented in cooperation with business partners – leaders in the market of consultancy and training services.
Managerial Stairway
A path for the development of managerial skills, from a beginner manager to a top senior management member, which takes into account the position held, experience to date and the competences necessary for effective management at particular career steps. The program consists of four stages which gradually broaden participants’ knowledge. Its catalogue includes a wide offer of training provided on-site and online by external trainers. Workshops are held periodically for closed and open groups. In 2023, 240 persons completed training for beginner managers.
Leadership webinars for managers
60/90-minute meetings with the participation of external experts, aimed at inspiring managers to develop emotional intelligence, to care for mental wellbeing, to build relationships in teams, to enhance their vital energy and to effectively appreciate subordinates.
Ironclad Success
A program supporting the career development of women in the Budimex Group, making it also possible to increase their number in managerial positions. It consists of four workshops delivered by external experts (“My skills, my talents, my new self”, “My personal effectiveness”, “My inner self as a female manager”, “My brand, my authority”), between which participants carry out implementation tasks supporting the development of the acquired skills. The 3rd edition, which started in 2022, ended in the second half of 2023. 47 female employees of the Budimex Group – from specialists to managers – participated in it.
Internal Trainers
A program launched in 2023 with the aim of building an internal trainer community and enabling internal trainers to exchange experience and best practices and to mutually inspire one another to develop and broaden knowledge, as well as at improving the effectiveness of internal training. 44 employees enrolled for the program as part of which we prepared training sessions on performing a trainer’s role for them.
Programs for the development of interpersonal skills, addressed to specialists and managers, are also implemented in the Budimex Group. They have the form of development paths divided into several main stages, taking into account successive levels of progress in acquiring competences.
Communication Stairway
An important factor enhancing effective communication and cooperation in the Budimex Group is a possibility of conducting an individual analysis of an employee in accordance with the Extended DISC model. It is an examination that makes it possible to know the natural predispositions of a person; it is based on self-reflection – the participant self-assesses their behavior in specific situations. The main areas under analysis are behavior and communication styles manifesting themselves in the professional sphere. After the examination, the employee usually participates in a webinar the purpose of which is to become familiar with the Extended DISC model and to prepare for work with the individual report on one’s own. There are certified employees in the Budimex Group who are authorized to provide Extended DISC feedback. In 2023, 193 persons participated in communication path programs.
Negotiation Stairway
We offer a themed training package to employees for whom negotiations are a component of their daily work. It makes it possible to systematize and standardize the knowledge of negotiation techniques, strategies and barriers, but also to get to know one’s strengths and weaknesses as a negotiator and to teach how to manage emotions in the course of a negotiation process. In 2023, 79 employees participated in training as part of this path.
Language Training
In connection with a dynamic growth in foreign markets. 2023 was a time of extremely intense development of language skills for the Budimex Group. We prepared an offer addressed to persons who actively use foreign language skills in their daily work. We made it possible for them to learn English, German, Slovak and Czech individually, in groups or in intensive language courses. Company employees also participated in intensive Total Immersion courses, both in Poland and abroad.
Table: Average hours of training in 2023
[GRI 404-1] [ESRS S1-13]
Where attending all the meetings was required to get credit for the course, training which was not completed in full was not included in the number of training hours. On the other hand, each non-obligatory training which was started was taken into account, with only the hours actually attended by employees being included in the total number of training hours.
Table: Number of employees upgrading employee skills in 2023
[GRI 404-2]
Table: Number of training hours broken down by selected topics in Budimex SA in 2023
[GRI 404-1] [ESRS S1-13]
In the report for 2022, the table concerning the number of employees trained in selected topics in fact showed the number of training hours delivered. Data concerning the number of training hours broken down by selected topics is presented above, whereas data concerning the number of employees trained in selected topics is presented below and it covers 2023 only.
Table: Number of employees trained in selected topics in 2023
In 2023, Budimex SA allocated a total of PLN 8.6 million for employee training, including PLN 2.2 million for women and PLN 6.4 million for men. In Mostostal Kraków SA, this amount totaled PLN 394,791, of which the amounts allocated for women and men were respectively PLN 142,375 and PLN 251,416, and in the FBSerwis Group this amount was PLN 396,680.
Feedback for employees
We pay a lot of attention to the building of awareness of the importance of feedback – provided by the manager to the employee, but also by the employee to the manager. A broad range of materials concerning the rules for providing such feedback is available on the company’s intranet. One of the key tools for communicating to employees what their strengths and the diagnosed areas for development are is a dialogue with the direct superiors held, among others, in the course of the annual performance review process.
Table: Employees receiving regular performance and career development reviews in 2023
[GRI 404-3]
Health Foundations
Employees are supported not only in their career and personal development, but also in caring for their physical and mental health. In 2023, the Health Foundations program was launched, as part of which webinars, training sessions and sports events relating to these issues are held among other things.
A number of webinars promoting preventive healthcare and building the awareness of the need to care for wellbeing were organized. To mark the International Day of Health, a webinar entitled “Do you know what you eat? How to read labels?” was given and employees were invited to attend preventive health workshops with a psycho-oncologist from the Rak’n’Roll Foundation entitled “What to do when an illness occurs in the work environment?”. Other webinars concerning preventive healthcare proposed on this occasion to company employees were “How to take care of the heart”. “How not to go crazy in today’s world” or “Occupational burnout – the edge of a breakdown or a chance for a new beginning”.
In October 2023, during the Breast Cancer Awareness Month, Budimex SA organized a webinar entitled “How to prevent breast cancer and cervix cancer”, and in November, as part of the Movember campaign, or the International Month of Action Against Men’s Cancer, a webinar entitled “Testicular cancer and prostate cancer – causes, symptoms, treatment and prevention” was given.
Physical activity is promoted among employees, Sporting competitions are organized, including e.g. running, walking or cycling, and the company also encourages employees to actively train and participate in competitions. Its representation took part in the 8th edition of the Polish National Volleyball Championship of Roadworkers, which it won. Employees also participated in the Polish Cross-Industry Grand Prix in Indoor Football, winning the second place.
All employees are offered a very good healthcare package and a physical activity package as part of the MultiSport card.
With the aim of building employees’ mental resilience, the company invites them to attend training on stress management techniques, and managers to attend training on stress management at work in a managerial position.
[1] The quantitative remuneration data presented in this section refer only to employees employed on the Polish market.
[GRI 3-3] [GRI 404-1] [GRI 404-2] [GRI 404-3] [ESRS S1-1]
Supporting employee development
The process of planning employee development is a part of the annual goal setting process and the related employee performance review process. Individual development needs, including training requirements, are defined in the course of discussions between the employee and the superior. On this basis, the HR Development and Systems Department creates a training and development action plan for the next year. Actions are carried out in accordance with the 70:20:10 model, i.e. 70% represents the practical implementation of tasks, 20% has the form of support provided by other persons (e.g. the superior, coach or mentor), and 10% represents training.
Training and workshops in the Budimex Group are available in an open form, as well as in the form of dedicated classes, corresponding to the needs of specific teams. Technical, specialist, negotiation, communication, computer, management and language training is offered, among other topics, as part of catalogue training courses.
Some training courses are delivered by internal trainers, i.e. highly qualified employees of the Budimex Group, who deal with issues being the subject matter of the training on a daily basis. This allows to effectively adapt the education offer to the specific nature of the company’s activities and to directly meet employees’ development needs. Additionally, it builds and promotes a knowledge sharing culture in the Budimex Group.
[GRI 202-1] [ESRS S1-10]
The remuneration policy [1] implemented in the Budimex Group meets all the requirements set out in the provisions of law, and its formulation ensures the long-term sustainable growth of the company – this is achieved through the structuring of total remuneration taking into account the amount and quality of the work performed and in a manner motivating employees to attain ambitious goals and leading to the implementation of the company’s strategic objectives. The adopted remuneration practices enable the recruitment and maintenance of the best qualified employees through a tailored package including basic salary, bonuses and attractive fringe benefits.
Remuneration in the Budimex Group is structured on the basis of:
Pay reviews are conducted in the Budimex Group periodically and are aimed at keeping our offer attractive for current and potential employees. A lot of the organization’s attention focuses on preventing pay discrimination based on gender, which is achieved through, among other things, monitoring the level of and levelling the pay gap (more information on this issue can be found in subsection 5.1.3.).
Table: Ratios of standard entry level wage by gender compared to local minimum wage
[GRI 202-1]
In accordance with the assumptions for area S of its ESG strategy, Budimex aims to achieve a gender pay gap ratio of less than 9% by 2026.
Particular incentive systems in the Budimex Group are adapted to the character of specific business areas, on the assumption that the main task of these systems is to ensure the attainment the company’s business objectives and the development of employees. The incentive system for management staff is based on individual objectives set for its representatives at the beginning of the year and consistent with the objectives set for the area or the entire company. In the case of persons employed in production, the amount of the variable remuneration components depends on the result of the annual performance review, as well as the degree of fulfilment of particular contracts, i.e. their progress and financial result.
In November 2023, the company was awarded distinction in the Employer of Rzeczpospolita competition organized by the Rzeczpospolita daily, in the best remuneration solutions category. Budimex SA was recognized for initiatives aimed at compensating employees for the decrease in the value of their income caused by inflation. This confirms that the company, acting in the spirit of social dialogue, creates and implements solutions guaranteeing employees decent pay, while taking into account the economic realities.
Employee benefits
[GRI 401-2] [GRI 403-6] [ESRS S1-11]
The Budimex Group continuously develops its benefit offer, to ensure it is adapted to employees’ needs, guaranteeing a wide range of options to them. Additionally, we are working on fully coordinating benefit practices across individual companies.
Persons employed in the Budimex Group have the following at their disposal:
In addition:
Additionally, Budimex Group employees received gift vouchers for Christmas in 2023.
In connection with the purchase of 100% of shares in PPUH Konstalex by Mostostal Kraków SA on 15 May 2023, steps were taken to unify the benefit system with the new owner company. To this end:
We periodically check the level of employee satisfaction with the offered benefits. In 2023, as part of the commitment survey described more broadly in subsection 5.1., 80% of respondents agreed with the statement that the offer of additional benefits provided by the company matched their needs.
[1] The quantitative remuneration data presented in this section refer only to employees employed on the Polish market.
[2] The document is available at: https://www.budimex.pl/repository/relation/Lad_Korporacyjny_2020/PL/Polityka_wynagrodzen_czlonkow_organow_Budimex_SA.pdf.
[GRI 2-7] [GRI 2-8] [GRI 401-1] [GRI 405-1] [GRI 401-3]
In connection with the Budimex Group’s growth in foreign markets and in the domestic market (e.g. the purchase of Konstalex, growth in the renewable energy sources market), the number of its employees had been increasing gradually to reach 7,337 of permanent and temporary employees on 31 December 2023 [1]. Thereby, it was 4.5% higher compared with the previous year.
Table: Employees hired for an indefinite and definite term on a year-on-year basis at Budimex SA
[GRI 2-7]
Table: Employees hired for an indefinite and definite term on a year-on-year basis in the Budimex Group
*Includes of all employees working in the Group (Polish and foreign markets)
**The German market was specified because has the most significant share (employment volume) relative to other foreign markets.
As of December 31, 2023, total employment in Budimex Group companies was 7337 employees, including 6431 in the Polish market and 906 in foreign markets (Czech market -11 employees, Slovak market – 34 employees and German market – 861 employees).
Table: Data concerning workers who are not employees at Budimex SA
[GRI 2-8]
Table; New employee hires in the Budimex SA and in the Budimex Group
[GRI 401-1]
*Includes of all employees working in the Group (Polish and foreign markets)
**The German market was specified because has the most significant share (employment volume) relative to other foreign markets.
In 2023, the total number of new hires in Budimex Group companies was 2004 employees, including 1219 in the Polish market and 785 in foreign markets (Czech market – 13 employees, Slovak market – 24 employees and German market – 748 employees).
Table: Employee departures in the Budimex SA and in the Budimex Group
*Includes of all employees working in the Group (Polish and foreign markets)
**The German market was specified because has the most significant share (employment volume) relative to other foreign markets.
In 2023, the total number of employee departures in Budimex Group companies amounted to 1826 employees, including 1016 in the Polish market and 810 in foreign markets (Czech market – 3 employees, Slovak market – 3 employees and German market – 804 employees).
Table: Employee turnover rate at Budimex SA
[GRI 401-1]
Table: Information on maternity and paternity leaves at Budimex SA
[GRI 401-3]
Table: Information on maternity and paternity leaves in the Budimex Group
[1] All quantitative data in this section referring to Budimex SA include also the employees of the company’s foreign branches (with the exception of the data on vacations).
[GRI 3-3] [GRI 2-10] [GRI 405-2] [ESRS S1-1] [ESRS S1-16]
Diversity issues are clearly regulated in corporate documents that apply to all companies in the Budimex Group. These include the Company’s Responsibility Policy Principles, developed at the Ferrovial Group level. They obligate all the company’s employees to, among other things, respect basic human rights, foster equality and diversity, and maintain a work-life balance. The second document that applies throughout the Ferrovial Group is the Human Rights Policy, which deals with avoiding discrimination, promoting equal employment opportunities, and recognizing the value of diversity in the workplace. The Budimex Group’s Code of Conduct, in turn, implements the principles of the policies indicated and counteracts employment discrimination. In addition, the Anti-Mobbing and Discrimination instruction is in effect at the individual company level.
The Diversity Policy implemented by Budimex SA and Mostostal Kraków SA focuses on:
The document’s provisions also cover the areas of recruitment, compensation, work-life balance, and protection against mobbing, discrimination and unjustified dismissal. In order to efficiently manage the aforementioned policy, the so-called anti-discrimination and anti-mobbing monitoring was introduced, as well as a system of educational tools, training and workshops. Every year, the results of its implementation are reported to Budimex SA’s Management Board.
The diversity policy applies to the entire employment structure of the Budimex Group. Given the importance of the impact on the rest of the staff of adhering to diversity principles at the highest levels of the organization, in 2021 the Diversity Policy of the Budimex SA Management Board was adopted. Its purpose is to ensure that the principles of equal treatment and diversity are observed at the management level of the Budimex Group. The policy guides the organization’s efforts to meet best practices in diversity, including those enshrined in the Warsaw Stock Exchange’s Best Practices for Companies Listed on the WSE 2021. The Diversity Policy of the Budimex SA Management Board introduces a minimum level of gender representation in the recruitment process for positions on the Management Board of 30% of all persons approaching the final stage of the recruitment process, if such persons are represented in the pool of candidates applying for the position and their competencies are at least equal to those of other candidates.
In addition, since 2022. the Diversity Policy of the Budimex SA Supervisory Board [1] has been in effect. Its goal is:
The Budimex Group is breaking down barriers related to employee health by hiring people with disabilities. The myBenefit system provides additional benefits for employees with a disability certificate and employees who have a family member with a disability.
Our company is a signatory to the international Diversity Charter – a voluntary commitment to treat all employees equally, prevent any form of discrimination in the workplace, and create an environment conducive to diversity. The document expresses the organization’s willingness to involve all groups of its stakeholders in efforts to protect and promote diversity.
Table: Results of unadjusted wage gap calculation for Budimex Group for 2023 (total compensation)
[GRI 405-2]
* Comparative analysis on total compensation basis including bonuses per FTE.
In 2023, Diversity Weeks were organized at Budimex SA. The purpose of the events was to spread knowledge and promote topics related to specific aspects of diversity. Each included webinars. contests and other activities for employees. The 2023 Diversity Weeks focused on gender differences, intergenerational differences, disability (organized in cooperation with the TAKpełnosprawni Foundation) and intercultural differences.
Confirmation of the quality of Budimex SA’s diversity management practices comes from the results of a global study commissioned by the Financial Times in November 2023 on companies’ support for diversity and women’s professional development. In the Diversity Leader 2024 ranking, based on employee surveys and HR indicators such as the number of women in leadership positions and diversity communication in the organization, our company scored 71.6 out of a possible 100 points. Thus, Budimex SA overtook many of the leading players in the international market and was ranked 10th among construction companies worldwide and 363rd overall (out of 850 companies included in the survey).
It is worth mentioning that according to data as of 31 December 2023, at Budimex SA, women account for as many as 55% of those employed as construction engineers – in 2012 the percentage was 31%.
Preventing discrimination against women
The Budimex Group actively prevents gender discrimination. To this end, it regularly analyzes the level of the GPGR, gender pay gap ratio (unadjusted wage gap), reflecting the pay gap between people employed in the organization. It represents the difference in average pay between men and women in each position group and is calculated in accordance with the methodology established for the Ferrovial Group as a whole, based on total pay, including bonuses, as well as on fixed pay. In 2023, the GPGR calculated based on total compensation including bonuses reached -1.7%, compared to -1.9% in 2022. From the perspective of base salary and fixed salary components. in 2023 there was no wage gap (it was exactly 0.02%).
The Diversity Policy provides for an obligation to achieve a fully equal pay in particular groups over the next years. To attain this goal, pay rises are granted in the Budimex Group taking into account the gender equality principle, and starting from 2023 all companies allocate part of their pay rise budgets directly for pay rises aimed at equalizing salaries.
We also attach a lot of importance to non-discrimination, among others based on gender, in the recruitment process, as well as to the transparency of decisions to select specific candidates. Other actions aimed at equalizing career opportunities for women include the Ironclad Success development program (described in more detail in subsection 5.1.6.) and the Mother on Maternity Leave program.
Table: Results of unadjusted wage gap calculation for Budimex Group for 2023 (fixed salary components)
* Benchmarking based on fixed salary components (i.e. without non-basic bonuses and awards. allowances and overtime payments. per FTE).
[1] All three of the company’s implemented diversity policies can be found on the website: https://www.budimex.pl/en/about-budimex/corporate-governance
[GRI 2-23] [GRI 2-24] [GRI 2-25] [GRI 2-26] [GRI 2-27] [ESRS SBM-3] [ESRS S1-3]
Budimex Group complies with the provisions of the following documents:
This means a commitment in all areas of activity to:
We are bound by the Ferrovial Group’s common Principles for the Protection of Human Rights. The goal of the document is to raise companies’ awareness of human rights and increase their capacity to address issues in this sphere. It obligates all employees, customers, suppliers and contractors in relations with the Budimex Group to, among other things, non-discrimination and the promotion of equal opportunities, and to respect the prohibition of child and forced labor, as well as the right to organize and engage in collective bargaining. The principles described in the document are rooted in the Universal Declaration of Human Rights adopted by the United Nations and the eight international conventions identified in the International Labor Organization’s Declaration on Fundamental Principles and Rights at Work.
The documents that, at the operational level, ensure that human rights are respected in the day-to-day operations of our companies are approved by the Management Board: Code of Conduct. the Rules of Conduct for Business Partners/Code of Conduct for Business Partners, the Compliance Policy and the Anti-Harassment and Discrimination instruction. They serve as reference points for Budimex Group employees and business partners, among other things, describing rules and guidelines for conduct in the listed types of relationships and areas of influence of the company. An important element of the Group’s human rights due diligence is the existing whistleblowing mechanisms described in Section 6.1.
As part of its strategic goals related to sustainability, the Budimex Group plans to expand due diligence procedures in its supply chain. The current rules for enforcing human rights from business partners are described in Section 7.5.
Responsibility and resources involved in the management of human rights topics
Responsibility for making and implementing decisions in the area of human rights is assigned to Management Board of Budimex SA’s (strategic decisions) governing bodies and individual operating units and positions. Compliance with the Code of Conduct at Budimex SA is guarded by Budimex SA’s Ethics Committee (see Section 6.4. for more information on the Committee). In addition, at Budimex SA, Mostostal Kraków and FBSerwis, a compliance function has been set up, responsible, among other things, for ensuring that the companies’ operations comply with laws and internal regulations, including those in the area of human rights (e.g. those concerning anti-mobbing and discrimination).
In any necessary case related to the management of significant human rights issues, there is a possibility of consultation between Budimex SA and subsidiaries, e.g. as regards knowledge sharing and exchange of experience – for example, in adapting internal regulations of companies to the provisions of the whistleblower directive [1].
Identification and assessment of human rights risks and impacts
The Budimex Group identifies human rights risks and impacts on an ongoing basis and adjusts internal regulations as necessary. The Group analyzes from this angle not only events of key importance to the companies’ operations (e.g. policy change, market entry, new projects), but also changes in the labor market. An example is the increase in the share of foreign workers in the Polish labor market, which can result in an increased risk of xenophobic behavior.
Human rights risks are identified in the context of labor rights, personal data protection, information protection, occupational health and safety, in the area of purchasing, as well as in operational activities under ongoing contracts. A process for identifying risks and impacts that includes the topic of human rights is being carried out for both own operations and important business relationships, including key elements of the supply chain. It is carried out on the basis of the Risk Management Procedure, which includes stakeholder consultations held with internal experts representing each area of the organization’s operations. In addition, there is regular communication with trade unions regarding the protection of human rights. Dialogue with stakeholders exposed to negative impacts is undertaken reactively and on a case-by-case basis. With regard to ongoing projects, this is done through the contract communication process described in the Policy for Cooperation with Local Communities.
The procedure for identifying risks and human rights impacts is automatically triggered when new business relationships are established. Budimex SA and FBSerwis have a due diligence process in place for entities defined as consortium partners. who complete the Consortium Partner Questionnaire, which is an appendix to the Business Partner Due Diligence operating manual.
The Budimex Group maintains a risk register, which also includes human rights risks identified by organizational units. Under the existing system for assessing risks and impacts. no negative impact of the Group on human rights or violations in this area have been identified, detected or reported.
General information on the risk management system can be found in Section 6.2.
Actions taken in connection with the assessment of human rights risks and impacts
Responsibility for specific areas of risk management has been distributed among experts, managers and directors. It is their responsibility to identify the risks included in the register and to assess and prioritize them, taking into account the requirement to involve stakeholders, including groups exposed to negative impacts. If significant negative impacts on human rights are identified, appropriate corrective action is taken. The system for preventing and mitigating impacts and implementing corrective actions for significant human rights impacts also includes the supply chain – see Section 7.5. for more information.
Monitoring and communication of human rights impacts
The Budimex Group monitors and evaluates the effectiveness of its response to human rights risks and impacts, and uses this information to continuously improve its processes and systems. This includes involving stakeholders and vulnerable groups in evaluating the effectiveness of any steps taken. With regard to ongoing projects, this is done on the basis of Budimex SA’s manual Cooperation with Local Communities on Contracts.
Based on data from the whistleblowing system, quarterly reports are produced on, among other things, potential human rights violations. There were no such reports in 2023.
Commitment to conduct corrective actions
The Budimex Group is committed to acting independently or cooperating in corrective actions for the benefit of entities, such as employees and communities, where it exerts or contributes to a negative impact in the area of human rights.
[1] Directive (EU) 2019/1937 of the European Parliament and of the Council of 23 October 2019 on the protection of persons who report breaches of Union law.
[GRI 2-23] [GRI 2-30] [ESRS S1-1]
The source of our company’s success is its employees – their knowledge, skills and experience, but also their attitudes reflecting the values that form the foundation of the Budimex Group’s organizational culture (see Section 3.1.).
As part of the implementation of the ESG strategy with regard to the company’s staff, the main focus was on building commitment, talent development and mobility to enable expansion into foreign markets. These activities are reinforced by building an attractive offer for employees and job candidates (salaries, benefits, development offer) and effective communication with these groups, as well as promoting diversity in employment.
The way we work is based on the Budimex SA organizational rules and regulations. It records not only the organizational chart of Budimex SA, but also the responsibilities and tasks carried out by the various departments.
The most important internal documents of significance for the shape of the working conditions in the Budimex Group include work regulations, employee compensation and bonus regulations and company collective bargaining agreements, which are in force at Budimex SA and Mostostal Kraków and which cover a total of 5,00724F26F[1] employees, i.e. 78% of the Group’s total staff employed on the Polish market. Of crucial importance are also the documents on guaranteeing human rights and managing diversity, described in Sections 5.2. and 5.3., respectively. In addition, the Budimex Group has operating procedures and instructions that regulate, among other things, issues related to the recruitment and dismissal of employees and the organization and implementation of training and other development activities.
We provide trade unions operating in the Group, i.e. the NSZZ Solidarność Intercompany Trade Union Organization, with full freedom to exercise their rights, and we cooperate closely with them in shaping internal regulations on human resources management. We also take into account feedback submitted directly by employees, as well as the results of their engagement surveys. Another such survey was conducted by an independent third-party vendor in accordance with its methodology in 2023.
Employee engagement survey 2023
The survey, preceded by an information campaign, invited 6,704 Budimex Group employees from Poland, the Czech Republic, Slovakia and Germany. Despite the fact that the survey was electronic only, more than 4,200 people responded, which means a turnout of 63% (among white-collar workers it was 75% and among blue-collar workers 47%). The engagement index, i.e. the percentage of Group employees who feel motivated to speak well of the company, continue their employment with the company and give more of themselves than is expected, was 39%.
Among the strengths of their workplace, the employees cited the employer’s attention to occupational health and safety and its quick and effective response to problems in this sphere. In addition, employees appreciate the ethical conduct of business, the relationship with direct managers (open communication, fair treatment or providing necessary support) and the relationship within teams (sharing knowledge and experience, working together to achieve goals). Areas identified as needing improvement include access to information about directions, plans and results, consistency of goals across areas and work-life balance. Following the survey, three company-wide project groups have been set up, and in addition, workshops are being held to deepen the survey results, so that optimal corrective actions can be selected at the local and central levels.
[GRI 402-1]
Internal regulations from the employee area are modified within the timeframes stipulated by the regulations (e.g.. the mandatory 2 weeks for entry into force). Best practices adopted by the Group, however, assume that any change is preceded by a communication campaign, which generally includes the organization of additional meetings, the preparation of information materials and lists of questions and answers for clarity and transparency of the actions taken.
The content of internal regulations, not only from the labor area, and changes in their provisions are communicated to employees in particular:
[1] All employment figures cited in this report are expressed in number of people (as of 31 December 2023).
The responsibility for reducing the actual and potential impact of the Budimex Group’s activities on the environment is manifested by the measures taken to protect nature and natural resources. The activities carried out are driven by the Group’s values and the goals enshrined in its ESG strategy, as well as the UN Global Sustainable Development Goals for energy (Objective 7), responsible production and consumption (Objective 12), climate protection (Objective 13) and ecosystem protection (Objective 15).
Aiming to reduce greenhouse gas emissions, in 2023, Budimex Group was making efforts to increase its commitment to green electricity generation. Last April, Budimex SA and Ferrovial EG SE established a new joint venture. BXF Energia to acquire photovoltaic projects and wind farms with a total capacity of about 305 MW (as of the end of 2023). BXF Energia is continuing the Magnolia and Kamelia projects acquired by Budimex SA and is also analyzing projects with a total capacity of approx. 800 MW. By 2028, the company intends to build a portfolio of wind and photovoltaic projects under construction and in operation with a total capacity of approx. 500 MW. The Group’s goal under its ESG strategy is to use energy from renewable sources. In 2023, 100% of the energy procured from external suppliers came from such sources, marking the achievement of the strategic goal. Budimex SA oversees the implementation of energy-related goals as part of the Energy Management Committee operating within its structures.
Budimex SA, being an environmentally responsible company, last year intensified its activities related to the reuse of recovered construction waste. Thus, the criterion for a circular economy defined in the EU Taxonomy has been met, and one of the ESG strategic goals, originally planned for 2024, has been achieved.
Understanding the power of business influence and the needs of employees for eco-engagement, the company sought to raise awareness of its own staff and the teams of its business partners on environmental issues. One such initiative, which took place in 2023, was a grant program that allows employees to obtain funding for grassroots projects in the sphere of environmental education or combating climate change. Two educational campaigns were held: “Green April” – a campaign aimed at encouraging people employed by the company to take environmentally friendly actions, and “Autumn under the sign of ESG” – a series of activities, including training, aimed at introducing employees to sustainability issues.
In summary, all of the goals in the environmental area of the ESG strategy set for 2023 have been met.
What is the EU Taxonomy?
The EU Taxonomy is a classification system that establishes criteria that economic activities must meet to be considered environmentally sustainable. It is a set of pan-European principles and technical indicators that reflect the EU’s climate goals and ambitions for specific areas of the economy, and is designed to redirect capital flows toward more sustainable activities to implement the EU climate and broader environmental policies over the 2030 horizon and beyond. The Taxonomy provides companies, investors and policymakers with clear and uniform definitions of environmentally sustainable activities. In this way, it helps protect companies and investors from greenwashing. among other things.
An environmentally sustainable economic activity is one that meets the following criteria:
Environmental objectives aligned with the taxonomy include:
In accordance with the Taxonomy Regulation [1], in the non-financial report the Group discloses:
Detailed requirements for the calculation and disclosure of the aforementioned indicators are set forth in Commission Delegated Regulation (EU) 2021/2178 [2]), the so-called Article 8 Delegated Act.
Budimex Group’s Taxonomy alignment examination process
A four-step process was conducted to verify alignment with the taxonomy:
The stage consisted of reviewing all the activities carried out by the Budimex Group and determining which activities are EU Taxonomy-eligible. The review covered the companies’ earned revenues, capital expenditures and operating expenses. To identify individual activities the companies used the descriptions in the annexes to Commission Delegated Regulation (EU) 2021/2139, as amended (i.e. supplemented by Commission Delegated Regulation (EU) 2023/2485) and Commission Delegated Regulation (EU) 2023/2486. In case of insufficient clarity in the qualification of the activities, the NACE code classification was used as an auxiliary measure [3].
Eligibility was assessed against all six environmental objectives for which lists of eligible activities were published:
OBJECTIVE I – Climate change mitigation (CCM) – as per Annex I of Commission Delegated Regulation (EU) 2021/2139 and for new activities added to the catalog of activities supporting Objective I as defined in Commission Delegated Regulation (EU) 2023/2485
OBJECTIVE II – Climate change adaptation (CCA) – as per Annex II of Commission Delegated Regulation (EU) 2021/2139 and for new activities added to the catalog of activities supporting Objective II as defined in Commission Delegated Regulation (EU) 2023/2485
For the other four environmental objectives set forth in the corresponding annexes to Commission Delegated Regulation (EU) 2023/2486:
OBJECTIVE III – Sustainable use and protection of water and marine resources (WTR),
OBJECTIVE IV – Transition to a circular economy (CE),
OBJECTIVE V – Pollution prevention and control (PPC),
OBJECTIVE VI – Protection and restoration of biodiversity and ecosystems (BIO).
The Group has identified activities eligible for the first two environmental objectives in the previous and current reporting periods. For the current reporting period, the Group has confirmed that the economic activities that concern the Group and are eligible for the other four environmental objectives overlap with the economic activities already identified as eligible for the first two environmental objectives.
The allocation stage consisted of assigning the value of revenue, capital expenditures and operating expenses to the various identified activities eligible for the EU Taxonomy. Details of the allocation methods used are described in the “Accounting principles” section.
The stages of verification of alignment with the EU Taxonomy consisted of two levels of evaluation, as described below:
In accordance with Commission Delegated Regulation (EU) 2021/2178 (as amended by Commission Delegated Regulation (EU) 2023/2486). the Budimex Group will assess eligibility and alignment for the remaining activities (i.e. for new activities under the first two objectives and for activities under the remaining four environmental objectives) starting from the disclosures published for 2024.
The process consisted of using the results of verification from stages two and three to produce tables containing the required data in accordance with the requirements of Annexes I and II to Commission Delegated Regulation (EU) 2021/2178, as amended.
The verification was carried out by representatives of the ESG, Quality and Environmental Protection Department [4], representatives of the Controlling Department and contract representatives of Group companies.
Verification of alignment with technical eligibility criteria
Verification of alignment with technical eligibility criteria was carried out for all taxonomy-eligible activities, and consisted of analyzing the individual criteria of substantial contribution and not causing significant harm in relation to OBJECTIVE I and OBJECTIVE II, and verification of the extent to which the type of activity complies with the technical eligibility criteria set forth in Annexes I and II to Commission Delegated Regulation (EU) 2021/2139 [5], as extended by Commission Delegated Regulation (EU) 2022/1214 [6]. The Group carried out the taxonomy assessment on the basis of active contracts, which are in the implementation phase (in the case of Budimex SA. the analysis was carried out on projects that were operational; no technical eligibility criteria were analyzed for contracts in the design phase). During the process of verifying the technical eligibility criteria for activities found not to meet the criterion of substantial contribution, no analysis of the criteria for not causing significant harm was carried out.
The main types of activities carried out in the Group are those included in the taxonomy as 6.14 Infrastructure for rail transport, 6.16 Infrastructure enabling low carbon water transport, 7.1 Construction of new buildings, 7.2 Renovation of existing buildings, 5.5 Collection and transport of non-hazardous waste in source segregated fractions and 5.9 Material recovery from non-hazardous waste.
The analysis of alignment with the technical eligibility criteria was carried out from October 2023 to December 2023 by representatives of Budimex SA’s ESG, Quality and Environmental Protection Department [7] as part of the work specified in the contracts for services provided by the Group to its business partners. The verification used tools in the form of alignment checklists implemented from the Ferrovial Group, which is the majority investor in the Budimex Group. In particular, documents such as environmental impact assessments, environmental monitoring plans, construction and demolition waste recovery rate reports, flora and fauna management plans, and corrective action plans for mitigating noise, dust, among others, were analyzed to assess whether DNSH criteria are met.
The analysis was conducted on the basis of active contracts generating revenue in 2023 or on the basis of active contracts or assets held by the Group that generate capital expenditures or operating expenses. In this way, the percentage of revenue, capital expenditures and operating expenses aligned with the technical eligibility criteria, which are reported in the tables in this section of the non-financial report, was established for each of the activities.
Verification of alignment with minimum safeguards
According to Article 18 of Regulation 2020/852:
The minimum safeguards referred to in point (c) of Article 3 shall be procedures implemented by an undertaking that is carrying out an economic activity to ensure the alignment with the OECD Guidelines [8] for Multinational Enterprises and the UN Guiding Principles on Business and Human Rights, including the principles and rights set out in the eight fundamental conventions identified in the Declaration of the International Labour Organisation on Fundamental Principles and Rights at Work and the International Bill of Human Rights.
The alignment with the minimum safeguards was based on the assessment conducted in 2022 and the recommendations implemented in 2023. The examination of compliance with the minimum safeguards was conducted in accordance with the recommendations in the Final Report on Minimum Safeguards by the Platform on Sustainable Finance.
According to the recommendations, the following four signs point to non-compliance with the minimum safeguards:
In the Budimex Group’s verification process, non-compliance based on the above-mentioned signs was examined as follows,
As a result of the verification process, it was determined that the Group’s activities are carried out in compliance with the minimum safeguards.
Accounting principles
The following rules were used to calculate the percentage of revenue, capital expenditures (CAPEX) and operating expenses (OPEX) that are taxonomy-eligible or aligned:
Revenue
The denominator of the taxonomy’s revenue-related indicators is the Budimex Group’s total consolidated revenue in 2023, as disclosed in the consolidated financial statements in the consolidated profit and loss account under “Revenue from contracts with customers.” Revenues from sales of products, goods and materials are described in Note 30.
The numerator of the EU taxonomy-eligible revenue indicator included revenues from taxonomy-eligible activities (aligned and non-aligned). The numerator of the EU taxonomy-aligned revenue indicator included the portion of revenues that result from activities aligned with the technical criteria.
Capital expenditures (CAPEX)
The denominator of the taxonomy indicators for capital expenditures (CAPEX) is the capital expenditures incurred at all Group companies. which are reported in the consolidated statement of cash flows in investing activities under “Acquisition of intangible assets and property, plant and equipment.”
The numerator of the indicator of EU Taxonomy-eligible expenditures includes the portion of CAPEX that relates to the types of activities eligible for the taxonomy (aligned and non-aligned with technical criteria). The numerator of the EU Taxonomy-aligned expenditure indicator includes the portion of CAPEX that relates to activities that are aligned with technical criteria.
The main capital expenditures in the year under review pertained to Budimex SA and FBSerwis Group companies. For capital expenditures incurred for vehicles, equipment, machinery, expansion of handling bases and storage facilities, the direct allocation method was applied to the type of activity in which the acquired assets will be used. For the remaining expenditures not directly mappable to taxonomic activity types, a proportional allocation method was used, as they will be used in the performance of various contracts, both related to taxonomy-eligible and non-eligible activities.
Operating expenses (OPEX)
The denominator of taxonomy indicators for operating expenses (OPEX) represents (as required by Annex I to Commission Delegated Regulation (EU) 2021/2178) all direct, non-capitalized costs that relate to research and development, building renovation measures, short-term lease, maintenance and repair, and any other direct expenditures relating to the day-to-day servicing of the Group’s assets of property, plant and equipment that are necessary to keep such assets in good condition.
The numerator of the indicator of EU Taxonomy-eligible expenses includes the portion of OPEX that relates to the types of activities eligible for the taxonomy (aligned and non-aligned with technical criteria). The numerator of the EU Taxonomy-aligned expense indicator includes the portion of OPEX that relates to activities that are aligned with technical criteria.
In the case of operating expenses for construction machinery and equipment, the direct allocation method was applied in a manner analogous to the CAPEX case described above. For other operating expenditures not directly attributable to activity types, the indirect allocation method was used.
Other information
The data used for the calculations came from the Budimex Group’s financial and accounting system and from the financial and accounting systems of the individual subsidiaries comprising the Group.
The Group avoided double counting when allocating revenue and capital expenditures by making appropriate consolidation exclusions, in accordance with applicable accounting regulations. For operating expenses, which are defined in the Commission’s Delegated Regulation (EU) 2021/2178 in a manner that does not refer to international financial reporting standards, all accounts in the Group’s accounting system were reviewed, and then the identified items meeting the definition of OPEX were assigned to given the taxonomy-eligible activity type in each case.
The Group discloses in this report for the second time the share of taxonomy-aligned activities and for the third time the share of activities that are taxonomy-eligible. The disclosure in this report relates to the most recent financial year, i.e. the period 1 January – 31 December 2023.
The analysis showed that there was no need for a detailed disaggregation of key performance indicators among the Group’s operating units in accordance with Section 1.2.2.3. Annex I to Commission Delegated Regulation (EU) 2021/2178. For more information, see the comments on each key performance indicator.
The Group does not carry out, finance or have exposure to the activities referred to in Sections 4.26-4.31 of Annexes I and II to Commission Delegated Regulation (EU) 2021/2139 (activities related to nuclear power generation and energy production from gaseous fossil fuels). Accordingly, the Group only discloses the following qualitative regulatory formula in this regard and does not disclose the other quantitative tables set forth in Annex XII of Commission Delegated Regulation (EU) 2021/2178, when all of these quantitative tables would contain zero values for activities related to fossil gas or nuclear energy.
Table: Nuclear energy related activities
Detailed results of the analysis are provided in tables: Revenue, CAPEX, and OPEX.
The results of the taxonomic analyses are shown in the graphical diagrams of figures: Taxonomy-eligible activities and Taxonomy-aligned activities.
Figure: Taxonomy-eligible activities
Figure: Taxonomy-aligned activities
Table: Revenue
A full version of the table showing the revenue: HERE
Table: CAPEX
A full version of the table showing CAPEX: HERE
Table: OPEX
A full version of the table showing OPEX: HERE
The Group generates revenue from several business segments. most of which are included in the taxonomy in terms of Annexes I and II to the Delegated Climate Act (Commission Delegated Regulation (EU) 2021/2139).
The main items of revenues from taxonomy-aligned activities in 2023 were:
Some of the revenues generated relating to the aforementioned activities did not meet the technical eligibility criteria, and were therefore considered taxonomy-eligible but not aligned. This was particularly true of revenues from new building construction (PLN 1,523.51 million).
3,984.17 million in revenue came from taxonomy-non-eligible activities.
The share of taxonomy-eligible revenue in total revenue in 2023 was 59.36%, of which the share of taxonomy-aligned revenue of 36.99% and the share of taxonomy-eligible but not aligned revenue of 22.37%.
Capital expenditures (CAPEX) are related to the implementation of investment plans adopted by the Management Board. In 2023, taxonomy-aligned capital expenditures were primarily incurred for:
Part of the capital expenditures (PLN 14.09 million) were incurred in connection with construction activities relating to taxonomy-eligible but not aligned activities.
In addition, in 2023, the Group incurred capital expenditures of PLN 63.99 million related to taxonomy-non-eligible activities.
In 2023, the share of taxonomy-eligible capital expenditures in total capital expenditures was 54.92%, including the share of taxonomy-aligned capital expenditures – 45.00%, and the share of taxonomy-eligible but not-aligned capital expenditures – 9.92%.
Taxonomy-aligned operating expenses (OPEX) in 2023 amounted to PLN 29.70 million and were incurred to maintain in proper condition machinery, equipment, vehicles and other assets necessary for taxonomy-aligned activities. The largest item was related to the maintenance of assets necessary for the construction of infrastructure for rail transport (PLN 15.47 million).
In addition, in 2023, the Group incurred operating expenses of PLN 36.42 million related to taxonomy-non-eligible activities.
In 2023, the share of taxonomy-eligible operating expenses in total capital expenditures amounted to 60.56%, including the share of taxonomy-aligned operating expenses – 32.15%, and the share of taxonomy-eligible but not aligned operating expenses – 28.41%.
[1] Regulation (EU) 2020/852 of the European Parliament and of the Council of 18 June 2020 on the establishment of a framework to facilitate sustainable investment.
[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 specifying the content and presentation of information to be disclosed by undertakings subject to Articles 19a or 29a of Directive 2013/34/EU concerning environmentally sustainable economic activities, and specifying the methodology to comply with that disclosure obligation.
[3] NACE (French: Nomenclature statistique des Activités économiques dans la Communauté Européenne, Statistical classification of economic activities in the European Union) – a classification made up of a series of letters and numbers corresponding to five levels of classification.
[4] Until February 2024, Procurement, Quality and Environmental Protection Department.
[5] 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 the technical screening criteria for determining the conditions under which an economic activity qualifies as contributing substantially to climate change mitigation or climate change adaptation and for determining whether that economic activity causes no significant harm to any of the other environmental objectives.
[6] 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 specific public disclosures for those economic activities.
[7] Until February 2024, Procurement, Quality and Environmental Protection Department.
[8] The Organisation for Economic Co-operation and Development.
[9] United Nations Guiding Principles.
[10] The database is available at: https://mneguidelines.oecd.org//database/.
[11] The database is available at: https://www.business-humanrights.org/en/companies.
Strengthening employee awareness of environmental impacts is an important element of the Budimex Group’s sustainable activities. Development and education are embedded in the company’s identity and corporate values. At the same time, these activities are in line with and planned on the basis of the goals set out in the UN Agenda 2030.
The Budimex Group promotes environmentally friendly attitudes in the workplace and in private life, as well as sensitivity to the issue of climate protection. The company is building an understanding of the ESG strategy among employees and involving them in its implementation. Projects serving these purposes include:
As part of building environmental awareness, newly hired employees are familiarized with Mostostal Kraków SA’s environmental rules on the day they are hired. This familiarization takes place after the mandatory initial health and safety training.
Educational processes are complemented by information campaigns aimed at Budimex Group teams. In 2023, environmental protection was the subject of two internal projects. These included a number of activities organized centrally and at regional branches and construction sites – the aforementioned “Autumn under the Sign of ESG” and “Green April.”
Green April
World Earth Day, celebrated on 22 April, inspired us to declare April 2023 a Green Month. As part of the campaign, organized by Budimex SA together with the FBSerwis Group and Mostostal Kraków SA, numerous initiatives were undertaken to strengthen employees’ environmental awareness and environmental protection activities:
The FBSerwis Group promotes pro-environmental attitudes by organizing competitions and workshops for elementary school and kindergarten pupils and involving them in environmental protection activities.
In 2023, the company implemented the following initiatives in this area:
Autumn under the sign of ESG
Assumptions of the strategy We are changing the world for you! And we are changing ourselves (see Section 3.3.), announced in June 2023, were promoted to Budimex Group employees as part of the two-month “Autumn under the sign of ESG” information and education campaign. The campaign aimed not only to familiarize the teams with the company’s priorities laid down in the document, but also to raise their awareness of sustainability issues.
The educational part of the project included a course consisting of five modules. Participants were able to expand their knowledge of ESG regulations and to learn in detail about the most important commitments made in the aforementioned strategy, as well as their impact on the company’s current operations.
An important part of the campaign was the publication on the company’s intranet of materials presenting examples of the Budimex Group’s commitment to sustainable development. The content was devoted to, among other things, the activities of BXF Energia, a company engaged in the development of renewable energy sources, programs in the field of equalization of opportunities and promotion of diversity, as well as policies and applicable rules for ensuring compliance with laws, internal regulations and ethics.
[1] Until February 2024 under the name of Procurement, Quality and Environmental Protection Department.
Budimex SA
[GRI 3-3]
Budimex SA strives to minimize its impact on the environment, including biodiversity. To this end, it conducts numerous activities related to plant and animal protection and noise reduction. The work is carried out in accordance with each company’s standards.
The company sets standards for due diligence, including with regard to the environment, with a particular focus on biodiversity. It implements them at every stage of the investment, in cooperation with entities along the value chain.
The supplier is obliged to conclude a contract/acceptance of order, of which the appendix Environmental requirements is an integral part. It thus expresses its full readiness to cooperate with Budimex SA in the field of environmental protection in the process of preparing and implementing construction.
Each supplier is contractually obliged to cooperate with Budimex SA in the following areas: waste management, protection of soil, water and acoustic environment, protection of flora and fauna. Prior to the start of supplies or construction work, training on environmental requirements is provided. Compliance with these requirements is verified during audits conducted on contracts by the ESG, Quality and Environmental Protection Department [1], Budimex SA Internal Audit Office and external verifiers. Suppliers are evaluated according to environmental, health and safety and social criteria (table below).
Table: Business partners evaluated using environmental and social criteria by Budimex SA
[GRI 308-1]
[1] Until February 2024 under the name of the Procurement, Quality and Environmental Protection Department.
Biodiversity refers to the diversity of ecosystems and species. It is essential for the environment and humans because it provides the functions that sustain ecosystems.
[GRI 3-3]
Budimex SA. when executing projects commissioned by investors (e.g. General Directorate for National Roads and Motorways. PKP Polskie Linie Kolejowe (Polish Railways)). relies strictly on contractual documentation provided by them (e.g. decision on environmental conditions, location decision, design). The company does not participate in decisions on the course and location of the projects, so it has no influence on whether or not a particular project is carried out in protected areas. It also has no influence on the number of trees to be cut down in connection with the construction of a new road, for example, nor does it decide the number of animal crossings planned. Nevertheless, it does take measures to minimize losses in the natural potential of the areas where it carries out the construction in question. To this end, Budimex SA has implemented standards for:
In addition, when felling trees and shrubs interfering with the project, supervision is exercised to ensure compliance with the investor’s documentation. This is to avoid cutting down plants not intended for removal. The company also carries out activities aimed at improving biodiversity by carrying out voluntary – not covered by contractual documentation – plantings of vegetation, installing nesting boxes for birds or bats, creating refuge points for lizards, erecting herpetological fences to limit losses in amphibian populations, or installing floating islands for aquatic animals – depending on interference and environmental needs.
[GRI 304-1] [GRI 304-2] [ESRS E4-5]
In 2023 Budimex SA was performing more than 200 contracts. In 58 cases, projects encroached on areas covered by one of the forms of nature protection:
In 9 cases, the work was carried out in the immediate vicinity of plots of land where protected areas have been delineated:
Budimex, as a general contractor, has no influence on the location of the projects, but nevertheless takes measures to mitigate the impact of the construction process on protected areas. It carries out its activities through:
Supervision of this area in the company is exercised by the ESG, Quality and Environmental Protection Department [1].
In its operations, Mostostal Kraków SA strives to minimize negative impacts on the environment, surroundings and biodiversity. As at Budimex SA, during works the company follows national regulations (including the provisions of the Waste Act and the Environmental Protection Law), as well as internal operating instructions and Environmental Protection Standards, Examples of these instructions include:
In 2023, within the scope of Mostostal Kraków SA’s operations, there was 1 case of conducting work near Natura 2000 areas. There, the company acted as a subcontractor to Budimex SA.
[1] Until February 2024 under the name of Procurement, Quality and Environmental Protection Department.
[2] WKS – Wytwórnia Konstrukcji Stalowych (Steel Construction Plant).
Limits of reported emissions
The scope of the Budimex Group’s greenhouse gas emissions inventory includes subsidiaries and the parent company. The calculation excludes companies that did not conduct any significant operating activities affecting the generation of significant fuel and energy consumption in 2023. In addition, a calculation for the parent company, Budimex SA, was additionally presented separately.
The largest emitters of greenhouse gases in the Budimex Group remain Budimex SA, the FBSerwis Group and Mostostal Kraków SA. Scope 1 and Scope 2 emissions arising from the operations of the other companies in the Group do not collectively exceed the threshold of a 10% share of total Scope 1 and Scope 2 emissions (market-based).
Scope of reported emissions
The Budimex Group reports Scope 1 and Scope 2 emissions in accordance with the GHG Protocol standard [1]. Implementation of a comprehensive Scope 3 emissions calculation process is in the preparation stages.
Calculation methodology and assumptions made
Scope 1 and 2 emissions
[GRI 305-1] [GRI 305-2] [GRI 305-4] [GRI 305-5]
In the calculation of Scope 2 location-based emissions, the EFC (emissions factor at consumption) was used due to the precautionary approach taken. The use of the mentioned indicator ensures that greenhouse gas emissions resulting from transmission losses are included in the calculation.
The dataset and scope 2 calculation were based on actual energy consumption.
Table below summarizes Scope 1 and Scope 2 greenhouse gas emissions.
Table: Scope 1 and 2 greenhouse gas emissions
Significant changes in reported emissions
There have been year-on-year changes in emissions in both scopes monitored by the Budimex Group. In Scope 1 there was a 177% increase in emissions resulting from fuel consumption in the fleet category for the Group compared to the previous year which was mainly influenced by an increase in diesel fuel consumption at Budimex Kolejnictwo.
Emissions resulting from fuel consumption in buildings and facilities and in transportation in turn are lower by 22% and higher by 1% respectively which ultimately translates into an aggregate 43% decrease in absolute Scope 1 emissions.
The results achieved in Scope 1 are influenced by the current energy intensity and characteristics of ongoing construction work as well as changes in the mix of fuels used.
In Scope 2 (market-based) significant reductions in GHG emissions were achieved through Budimex SA’s purchase of renewable energy origin guarantees for the whole volume of purchased electricity. This measure along with the sourcing of some energy from renewable sources as well helped reduce Scope 2 (market-based) emissions for Budimex SA and the Group by 52% and 47% respectively.
Additional information
Continued efforts to improve the accuracy of Budimex Group’s reporting of greenhouse gas emissions information in addition to preparing for Scope 3 emissions reporting have resulted in the replacement of the previously used UK Government Conversion Factors for greenhouse gas (GHG) reporting for fuel emission factors published by the UK Department for Environment Food and Rural Affairs (UK DEFRA) with the local Calorific Values and CO2 Emission Factors in 2020 for Emission Trading Scheme reporting for 2023 published by KOBIZE which more adequately reflect the characteristics of the fuels used by the Budimex Group.
The calculation of Scope 2 emissions using the location-based method was based on the most recent indicators from the document Emission factors of CO2, SO2, NOx, CO and total dust for electricity based on information contained in the National database of greenhouse gas and other substance emissions for 2022 published by KOBIZE in December 2023.
The above changes only improve accuracy, do not result in the need to recalculate the base year, and do not affect the consistency of reporting.
Other emissions
Due to the need to ensure continuity of operations Budimex SA operates asphalt plants and fuel tanks to enable smooth production activities. The plants and fuel tanks emit volatile organic compounds, nitrogen oxides and benzo(a)pyrene, which is part of persistent organic compounds (POPs), as well as sulfur oxides and dust.
Table: Emissions of dust and other substances
[GRI 305-7]
* Emissions from own boiler plant not included in the 305-1 and 305-2 index.
The 44% decrease in dust emissions, 45% decrease in nitrogen oxides and 60% decrease in sulfur oxides, and 26% decrease in volatile organic compounds is due to the decrease in the production of mineral and asphalt mixtures in 2023. In 2024 the trend is expected to reverse.
Analysis of the load of pollutants identified as hazardous air pollutants in GRI 305-7(a)(v) has revealed that they do not represent a significant item among the reporting unit’s pollution load.
[1] GHG Protocol. Corporate Accounting and Reporting Standard, Revised Edition, World Resources Institute and World Business Council for Sustainable Development.
In Budimex SA, a specially established Energy Management Committee is responsible for indicating the direction of activities related to the energy management system, as well as for setting and reviewing targets in this regard. The committee monitors the fulfillment of the organization’s energy management goals, and keeps track of related policies and guidelines – both at the Polish and European Union levels. Taking into account Poland’s ongoing energy transition, as well as Budimex SA’s new business segments related to green energy, the committee includes in its considerations the prospect of electromobility, decarbonization based on RES, among other things, and analyzes the possibility of implementing new technologies. The result of the team’s work is a review of the company’s activities in this area, as well as the revision of existing and development of new strategic assumptions in the ESG area. Committee meetings are held quarterly.
Composition of the Committee:
Raw materials
The construction industry consumes significant amounts of natural resources and building materials. The most commonly used in the construction process are concrete, cement, steel, asphalts and aggregates. One method of reducing the company’s consumption of raw materials is the recovery of construction materials. The Budimex Group has specific goals in this area, which are presented in Section 3.3.
In 2022, a change was introduced in the approach to reporting on purchases of raw materials. A breakdown into natural and artificial aggregates and recycled materials was presented. The same approach was also applied in the reporting year. In addition, in 2023, the item “recovered and recycled materials” was separated for the purpose of meeting environmental goals under the ESG strategy.
Table: Used raw materials and materials
[GRI 301-1] [ESRS E5-4]
When analyzing table abowe, it is noteworthy that the consumption of concrete, cement, steel, asphalt and artificial aggregates has declined between 22%-34% relative to 2022, despite a 12.8% increase in sales revenue in the construction business segment. The decrease in the consumption of construction materials is due to the structure of Budimex SA’s contracts, specifically, the significant share of infrastructure projects in the early stages of implementation, with earthworks predominating. The same factor accounts for a 15% increase in the use of recycled and recovered materials. We expect consumption of major materials to increase in 2024 as a direct result of a change in the structure of ongoing contracts.
Table: Used raw materials and materials at Mostostal Kraków SA
[GRI 301-1] [ESRS E5-4]
Table: Percentage of recycled input raw materials/materials used in the manufacture of primary products and services
[GRI 301-2] [ESRS E5-4]
In 2023, the total weights and volumes of recycled input raw materials and materials used were disclosed for the first time, as required by ESRS E5-4. In 2023, at both Budimex SA and the Budimex Group, raw and processed materials accounted for 20% of the total weight of materials used in the construction process.
Table: Year-on-year waste generated
[GRI 306-3] [ESRS E5-5]
The weight of waste sent for recovery in 2023 by Budimex SA increased by 6%, while the group as a whole saw a 10% increase over 2022.
Table: Waste recovered at Budimex SA, broken down by management method
The decrease in the amount of waste for disposal, both hazardous and non-hazardous, occurred both due to Budimex SA’s development of recovery and recycling processes and as a result of the identification of waste management processes at external customers. Waste with an unidentified management process is included in the statement (Table: Waste directed to disposal by method of disposal) as disposed waste. Under current regulations, the waste collector is not required to provide information on how the waste will be managed.
Table: Waste sent for recovery at FBSerwis, broken down by management method
In 2023, the structure of recycled waste changed. There was a 26% decrease in the weight of hazardous waste recovered and a 48% increase in the weight of non-hazardous waste recovered.
Table: Waste directed to disposal
[GRI 306-5] [ESRS E5-5]
Table: Waste directed to disposal by method of disposal
In 2023, the weight of waste diverted by Budimex SA to disposal decreased by 96%. The decrease in the amount of diverted to disposal occurred both due to Budimex SA’s development of recovery and recycling processes and as a result of the identification of waste management processes at external customers premises.
In order to reduce the generation of waste, year after year, Budimex SA has been increasing its potential for recovery of construction waste on the basis of its permits, which is in line with the idea of a circular economy promoted by the company.
Water
Water is nowadays understood as a natural resource and a common good to be managed sparingly. This raw material has economic value and is an important factor in production processes. A summary of water withdrawal is shown in table below.
Table: Water intake
[GRI 303-3] [ESRS E3-4]
At Budimex SA, water is drawn mainly for social and domestic purposes and partly for production and technological purposes. Water is mainly drawn from the existing water supply networks, less frequently from deep wells. Water is drawn from the company’s own intakes (deep wells) only on the basis of relevant permits. During the period under review, water withdrawal decreased by 39% and 15 % in the Budimex Group.
Wastewater
Wastewater is water consumed in the course of human activities for living and production purposes. Data on wastewater discharged in 2023 are summarized in table below.
Table: Wastewater discharge
[GRI 303-4]
The wastewater generated by Budimex SA is mainly social and living wastewater. Only 4% of the wastewater generated by the company is industrial wastewater, and for the group the ratio is 41%. Wastewater is discharged into sewer networks. In the absence of infrastructure, it is collected in sealed, drainless tanks and transferred to authorized entities for management. Budimex Group companies follow the same rules.
Energy and fuels
Energy and fuels are important elements of the construction process. Their consumption affects the environment. Budimex SA, as a socially responsible company, has set ambitious targets for reducing emissions from the combustion of fossil fuels. They are part of the company’s ESG strategy and are discussed in Section 3.3.
It should be noted that the entire volume of electricity purchased by Budimex SA in 2023 had guarantees of origin from renewable sources, thereby contributing to a significant reduction in emissions.
The table below shows data on fuel and energy consumption at Budimex SA and across the Budimex Group.
Table: Energy consumption within the organization
[GRI 302-1]
Conversion indicators from KOBIZE and the DEFRA Database were used for the calculation.
Budimex SA
The energy demand and carbon footprint of construction works are closely related to the stage of the project and factors such as asphalt mix production, transportation and construction equipment engaged. Variability in procurement and the long duration of the construction process mean that comparing energy consumption and carbon performance on an annual basis can be inaccurate: the results may depend more on current procurement progress than on changes in operations. Nevertheless, the Budimex Group, including Budimex SA, is taking many measures to sustainably reduce energy consumption and emissions, such as replacing construction equipment, investing in renewable energy, training and initiatives to improve energy efficiency. They contribute to a reduction in total energy consumption compared to previous years. Budimex SA has introduced an energy management system that identifies areas for energy efficiency improvements. The Company has an energy efficiency improvement policy, the implementation of which is monitored by the Energy Management Committee.
Mostostal Kraków SA
Energy consumption and emissions at steel structure plants are related to the phase of work and the number of structures produced in a given year and the distance they are transported. The diversity in these factors means that comparing energy consumption and efficiency on an annual basis may not be reliable.
FBSerwis Group
The FBSerwis Group has introduced energy efficiency plans which include a series of measures such as shutting down individual machines and equipment during process downtime, inspecting and servicing process lines to eliminate points of excessive energy consumption, using high-quality equipment with low electricity consumption, and automatically controlling the parameters of the biological waste processing process. FBSerwis Group facilities maintain energy balances that include information on energy consumption and flow.
[GRI 201-2] [ESRS SBM-3]
A comprehensive assessment of ESG risks, including those related to climate, was first carried out in 2023, in cooperation with an external consulting firm. As part of the double materiality analysis, consistent with the Corporate Sustainability Reporting Directive (CSRD) and further described in Section 8.1., ESG risks, including those related to climate, were identified.
Risks were identified through the following processes:
As a result of the analysis, individual risks were assigned a probability of materialization according to a four-point scale:
and one of four levels of severity/impact:
A total of 37 risks presented in table below were subjected to the process.
Table: ESG risks
The matrix of the results of the analysis conducted is as follows:
Figure: ESG risk matrix
The risks that the consulting agency recommended for management and monitoring are summarized in table below.
Table: Key ESG risks
[GRI 3-3] [GRI 306-1] [ESRS E1-2] [ESRS E2-1] [ESRS E3-1] [ESRS E4-2] [ESRS E5-1]
BUDIMEX SA
The overarching document at Budimex SA governing environmental and climate impact management is the Integrated Management System Policy. It contains commitments and principles for reducing environmental interference, such as efficient use of natural resources and promoting environmental responsibility.
The company is aware of the impact that its operations may have on the environment and climate, in the:
– local dimension – by interfering with the functioning of ecosystems as a result of construction work,
– global dimension – through (positive or negative) impacts on the climate.
In order to improve environmental performance, Budimex SA has implemented an environmental management system based on the requirements of the PN-EN ISO 14001:2015 standard. The company has undergone certification by an external, independent and accredited certification body. As part of the management system, the company has developed goals, as well as indicators by which it monitors its environmental impact. Responsibility for the management of the environmental area stems from established internal procedures.
MOSTOSTAL KRAKÓW SA
The overarching document at Mostostal Kraków SA governing environmental management is the Integrated Management System Policy. It includes the company’s commitments to minimize emissions and the amount of waste generated, as well as to systematically raise environmental awareness. In addition, the company pledges to conserve natural resources by, among other things, reducing water, fuel and electricity consumption.
Mostostal Kraków SA has implemented an environmental impact management system based on the requirements of PN-EN ISO 14001:2015. The company has undergone certification by an external, independent and accredited certification body. Responsibility for the management of the environmental area stems directly from established internal procedures.
In 2023, Mostostal Kraków SA has pledged to reduce fuel consumption by replacing its vehicle fleet.
FBSERWIS GROUP
The FBSerwis Group’s environmental impact management policy is based on the requirements of The FBSerwis Group’s environmental impact management policy is based on the requirements of Commission Implementing Decision (EU) 2018/1147 of 10 August 2018 establishing best available techniques (BAT) conclusions for waste treatment. The conclusions were implemented in the company in 2022 and address dust, gas, odor, wastewater, waste and noise emissions, as well as energy consumption and emergency management. Adequate prevention procedures have been developed and implemented for the occurrence of such emissions. In situations where prevention is not possible, procedures are in place to reduce emissions, minimize their impact and monitor the actions taken. Responsibility for environmental impact management stems from internal procedures adopted by the company.
The FBSerwis Group has implemented PO (FBS-Z)-06-02 procedures for the environmental impact management system in individual companies (FBSerwis Dolny Śląsk, FBSerwis Karpatia, FBSerwis Kamieńsk, FBSerwis Wrocław).
The following attachments are an integral part of these procedures:
FBSerwis Wrocław has implemented the PN-EN ISO 9001:2015 and ISO 14001:2015 management systems.
Principles of the Integrated Management System Policy related to environmental impact
Budimex Group companies have implemented a customized approach to environmental and climate impact management, tailored to their business models This area is managed by the Director of the ESG, Quality and Environmental Protection Department [1].
BUDIMEX SA
In the system in force at Budimex SA, the axis of which is the Principles of the Integrated Management System policy, the basic assumptions are:
Budimex SA operates according to accepted procedures, instructions and environmental standards. Operational activities, i.e. the performance of construction contracts, comply with environmental management procedures and internal operating standards, among other environmental issues.
Budimex SA’s environmental standards regulate the principles of proper protection of water, soil, air and biodiversity during construction work and ancillary processes.
These standards apply to:
Prior to the start of construction work, the identification of environmental aspects that are subject to supervision is carried out. They are identified according to an internal procedure that defines a uniform method of evaluation by determining:
Based on the identified potential environmental risks and impacts of the planned construction work, a health and safety plan (hereinafter: BIOZ plan) is agreed internally, which, as of 1 January 2024, has been transformed into an environmental protection plan (hereinafter: OŚ plan). This document include a waste management plan that specifies ways to selectively collect waste, labeling and acceptable ways to manage waste generated at construction sites, as well as an environmental task plan that, based on identified activities, identifies types of emissions and indicates hazards and measures to protect and minimize environmental impacts during construction activities.
The environmental task plan specifies:
In addition, the consumption of fuels and energy used to drive machinery, vehicles and installations in the construction process is monitored – their operation should be carried out economically and minimize emissions to the environment.
Each organizational unit of Budimex SA, for which aspects with an environmental and climate impact have been identified, is responsible for the implementation of the operational activities specified in the BIOZ plan and the OŚ plan. They are then subject to assessment, as a result of which significant risks and opportunities generated by the company’s activities are identified. With regard to significant environmental aspects, the activities that undergo environmental impact analysis are identified. This serves as the basis for establishing Budimex SA’s environmental goals.
The significant aspects identified by the organization in 2023 are closely related to the type of conducted operations and pertain to:
For these aspects, a number of minimization measures have been taken to reduce their negative impact and maximize environmental gains through:
The applicable performance standards for Budimex SA pertain to:
The company’s impact on the environment is generated in large part by suppliers of services and products, so it is important for Budimex SA to agree and cooperate with business partners also on the issue of environmental protection. Business partners undergo pre-qualification – their activities are verified for compliance with environmental regulations. Suppliers, when deciding to cooperate with the company, undertake to act in accordance with its policies (procedures, instructions, standards and other internal regulations). Subcontractors operating on the company’s project sites receive training on waste management and dealing with environmental incidents. The company evaluates, among other things, supplier’s experience and responsibility in the area of environmental impact. For more information on building a responsible supply chain, see Section 7.5.
MOSTOSTAL KRAKÓW SA
The basic principles of the Integrated Management System Policy in the area of environmental impact at Mostostal Kraków SA are:
The company responded to the above challenges by developing and implementing procedures, such as:
Mostostal Kraków SA’s impact on the environment is largely related to the operation of the Steel Structures Plant in Kraków and Kleszczów. In this area, the work is carried out by both the company’s own services and business partners. Service providers receive training on the company’s environmental procedures, including rules for dealing with environmental emergencies.
FBSERWIS GROUP
The basic aspects of the company’s Environmental Policy are:
The environmental impact management system policies, which follow from the requirements of Commission Implementing Decision (EU) 2018/1147 of 10 August 2018 establishing best available techniques (BAT) conclusions for waste treatment pertain to:
The company responded to these challenges by developing and implementing procedures:
Changes in the management of the environmental area
BUDIMEX SA
In 2023, the company conducted continuous monitoring of its environmental impact and m to avoid embedded wasteonitored environmd monitored environmental aspects. Accordingly, a thorough analysis of environmental documentation was carried out to help identify environmental threats and opportunities. As of 2024, new/updated environmental documentation has been implemented. Therefore environmental documentation has been excluded from OHS structures and a separate set of documents has been developed to address environmental issues. The Environmental Management operating procedure and the questionnaire identifying environmental aspects and requirements for business units have been modified. The OŚ plan, formerly part of the BIOZ plan, has been implemented and expanded, and the process for assessing environmental aspects has been modified. Budimex SA’s 14 environmental standards facilitating safe construction operations have been updated. A catalog of environmental labeling has been expanded, making it easier for workers on construction sites to properly collect waste. In addition, in 2023 an embankment material acceptance form was implemented, making it easier to identify the material they are accepting to avoid embedded waste.
The company, in the interest of effective environmental management, has decided to implement the European eco-management standard – EMAS. It is a legally sanctioned system of the European Union, supporting the idea of voluntary environmental action. The primary goal of the program is to initiate such processes that will help successively reduce negative environmental impacts, implement clean technologies, move toward a circular economy, and inform local communities about possible impacts on ecosystems. The implementation of the EMAS standard will expand the range of tools to help conduct environmental due diligence throughout Budimex SA’s value chain. The analysis and update of environmental documentation also took into account additional requirements of this scheme.
MOSTOSTAL KRAKÓW SA
There were no changes in environmental impact management in 2023.
FBSERWIS GROUP
There were no changes in environmental impact management in 2023.
[1] Until February 2024 under the name of the Procurement, Quality and Environmental Protection Department.
We manage responsibly because we always put our values first.
We are an ethical company
We conduct a number of activities to strengthen the ethical culture among both employees and business partners. In order to exercise the utmost diligence in adhering to sustainability standards, we are taking a number of measures, including implementing a Code of Conduct for business partners, as well as conducting awareness-building training on preventing and addressing conflicts of interest.
Our strategic goals:
Regular information campaigns in the area of ethics and conflict of interest management
2023 Revision and expansion of issues of the Code of Conduct
2023 Development of a manual for dealing with situations where conflicts of interest occur or may occur
2024 Development of the Code of conduct for business partners
Anti-corruption
We do not condone any form of corruption in the actions of our employees in internal and external relations. We regularly conduct training among our employees to keep their knowledge and sensitivity in this area at a high level.
Our strategic goals:
Conduct of periodic training sessions among employees on anti-corruption issues
We consciously manage risk
ESG issues and risks are not a separate area for us, unrelated to the Group’s business strategy. We want to manage business and ESG risks in an integrated manner, so as to promote sustainable development and ensure stable and long-term growth of the Group’s value.
Our strategic goals:
2023 Integrate ESG risks into the risk management system
We care about cybersecurity
Ensuring the highest standards of cybersecurity is a priority for us, so we will improve the protection of IT systems and enhance the security of sensitive data through monitoring and increased oversight of data processing. At the same time, we train our employees in this area and raise awareness of the risks, as well as the ability to respond appropriately to their occurrence.
Our strategic goals:
Continuous improvement of protection mechanisms against cyber risks for Budimex Group’s information systems.
You can find our sustainability strategy at: https://esg.budimex.pl/.
Information on the implementation of the company’s strategic goals can be found in the individual sections of this report.
We empower employees and business partners because we know that only dialogue is a guarantee of sustainable growth.
We are a company that integrates generations
Our strength lies in building diversity. We value both experience and innovation, which is why we form close-knit, strong and multi-generational teams. We believe in equal access to work. We are breaking stereotypes, especially in the perception of the role of women in construction. For years, we have been increasing their share of the workforce, including in managerial positions. We enable them to develop in tailored leadership programs. At the same time, we take care to level the playing field in the area of wages – we have established a dedicated fund for this purpose. Continuously building team competence and strong leadership is one of the pillars of Budimex Group’s activities. By developing key business areas, we support our employees and motivate them to succeed.
Our strategic goals:
2026 Strive to maintain a voluntary turnover rate of no more than 8.5%
2026 Aim for a GPGR (gender pay gap ratio) [1] of less than 9%
2026 GCR (glass ceiling ratio) – Aim to increase the percentage of women in middle and senior management at 22% (up from 19% in 2022).
We guarantee safe and decent work
Every day we do everything to ensure the safety of our employees and the participants of the projects we implement and their beneficiaries. Our strategy in this area is based on two pillars: “Always Safe, Always Ready”. Its foundations are accountability, dialogue within teams, and the constant search for and implementation of new solutions to support the creation of a safe workplace. This idea guides not only us. We also promote it to our stakeholders and the business community – subcontractors and business partners, as part of our annual Safety Week.
Our strategic goals:
Each year, top management will make regular safety visits to contract performance sites combined with meetings with company employees and business partners
annually Conduct of training and programs to promote a safety culture with 100% of employees
annually Organization of Safety Week in the Budimex Group for at least 90% of contracts
We are a good neighbor and we strengthen our relations
We are aware that through our projects we significantly affect the daily life of local communities. Our goal is to improve people’s quality of life, but we are not indifferent to their needs – here and now. We are open to dialogue. We regularly meet with local stakeholders, listen to their expectations and make every effort to maintain good neighborly relations. We support local initiatives, facilitate communication around ongoing projects and join in charitable activities, building valuable relationships for years to come. Promoting areas that are important to the Budimex Group – development and education – we establish contacts with universities and technical schools in the regions, offering programs that prepare people for work in the construction industry. By sharing our experience, we believe we are enabling younger generations to have a better start in the future.
Our strategic goals:
Conduct educational programs in schools and technical colleges for 5,000 students each year.
2023 No less than 50 outreach activities on all ongoing contracts
[1] Gender pay gap ratio, calculated in accordance with the methodology adopted for all Ferrovial companies.
We build with respect for the environment because we believe that our responsible decisions can positively shape industry standards.
 | We prevent climate change |
We are taking a series of measures to bring us to climate neutrality. This means, on the one hand, the need to invest in renewable sources to ensure access to clean energy, and on the other hand, it obliges us to undertake numerous projects to reduce CO2 emissions from the design stage of the project to its implementation. Accordingly, we plan to optimize our design processes to include an analysis of the reduction potentials of a given construction site, and we intend to gradually increase the share of low-emission transportation and heavy machinery in the construction process.
Our strategic goals:
2023 Aiming to source 100% of electricity from RES from the market
2026 100% of the energy produced by Budimex Group companies for Budimex comes from RES
2030 Aiming to reduce CO2 emissions from Scopes 1 and 2 by 20% (compared to 2020) [1]
2050 Achieving climate neutrality
 | Closing the circulation of raw materials |
We will start closing the raw material circulation by analyzing the potentials of implementing the circular model throughout the value chain so as to develop and implement a circularity policy in the next step. The resulting performance standards will apply both within the Group and in cooperation with business partners. We want to use raw materials from certified sources and those that have a lower carbon footprint. We intend to consistently increase the percentage of waste recovered, including recycling, and use raw materials that are already recycled.
Our strategic goals:
2024 Recycle and recover 70% of soil and land waste
2024 Recover at least 70% of non-hazardous waste
2025 Develop a circularity policy
2026 Perform circularity analyses for each new project
 | We protect resources |
At the same time, we want to increase our commitment in the field of natural resource conservation. In order to do this in an informed and responsible manner, it is essential to conduct impact analyses on water resource use and biodiversity. We aim to develop comprehensive plans to reduce our footprint in these two dimensions. We declare that we will undertake this challenging task with full commitment.
Our strategic goals:
2025 Conduct an assessment of the exposure of the company’s operations to water stress
2025 Conduct an analysis of the company’s dependence on biodiversity and the company’s impact on biodiversity
2025 Calculate the Corporate Biodiversity Footprint (CBF)[2]
2026 Strive for a Biodiversity Net Positive[3][1] The target includes a 33% reduction in emissions from the vehicle fleet and a shift to using only renewable electricity.
[2] An index that measures the scale of a company’s impact on biodiversity, developed by Iceberg Data Lab. For more information: https://www.icebergdatalab.com/solutions/biodiversity/.
[3] Id. to achieve a net positive impact on biodiversity, i.e., a state in which the company’s unavoidable negative impacts on biodiversity become less than its contribution to ecosystem restoration.
[ESRS SBM-1]
Responsibility, honesty or sensitivity to others are values that Budimex Group has been following for years. The creation of the Budimex Group CSR Strategy for 2021-2023 was aimed solely at organizing and accelerating activities in this regard and did not require a change in the company’s identity or organizational culture. In order to strengthen its potential and respond even better to the challenges of the future and become an even more reliable partner in business, the organization’s past experience in the sustainability area has been transformed into the ESG Strategy for 2023-2026 with an outlook until 2050. The document announced on 30 June 2023, whose title and, at the same time, guiding principle is We change the world for you! And We Change Ourselves, systematizes the approach and plans of the Budimex Group with regard to the environment (E), social responsibility (S) and governance (G). In each of these areas, strategic goals have been set that respond to key challenges for the construction sector and are consistent with global UN Sustainable Development Goals. They are intended to set the pace for the organization’s activities and make it easier to measure progress. Fulfilling them will support the company’s sustainable development, including allowing it to achieve climate neutrality in the long term and lead positive change in the construction industry as a whole.
The implementation of the commitments set forth in the strategy is the responsibility of the team leaders who had a hand in drafting the document: the Director of the ESG, Quality and Environmental Protection Department (strategy oversight), the ESG Manager (environmental area), the Director of the Human Resources Management Division (social area) and the Legal Director of Corporate Areas (corporate governance).
[1] Until February 2024 under the name of Procurement, Quality and Environmental Protection Department.
The Sustainable Development Goals (SDGs) are an important determinant of the Budimex Group’s activities. They are enshrined in the United Nations resolution “Transforming Our World. The 2030 Agenda for Sustainable Development” with its 169 assigned tasks. The document, as highlighted in its preamble, is a roadmap to 2030 for people, planet and prosperity, and its implementation will ensure a balance between the three aspects of sustainable development: economic, social and environmental.
In 2022, Budimex SA joined the Partnership for the Implementation of the Sustainable Development Goals coordinated by the Ministry of Development and Technology. On 30 June 2023, the Budimex Group announced its ESG Strategy for 2023-2026. This is the first document of its kind to define precisely the company’s commitments in the environmental (E), social (S) and governance (G) areas.
The company’s strategic activities allow it to contribute to the following Sustainable Development Goals:
Goal 3: Ensure healthy lives and promote well-being for all at all ages
Ensuring proper working conditions and raising awareness of physical and mental health is a prerequisite for employees’ wellbeing and high levels of motivation. That is why employees of the Budimex Group can benefit from, among other things, a private medical benefits package, health webinars, and a range of activities and training to raise their awareness in the area of occupational safety.
Goal 4: Ensure inclusive and equitable quality education and promote lifelong learning opportunities for all
Operating in the rapidly changing construction industry, which is important for sustainable development, motivates the Budimex Group to continuously improve and expand its knowledge. Among other things, the company offers employees a wide catalog of professional and development courses and training. Through cooperation with technical schools and universities, it is increasing the number of people with high professional competence.
Goal 5: Achieve gender equality and empower all women and girlsThe Budimex Group attaches great importance to ensuring equal opportunities and non-discriminatory working and pay conditions. The company is successively striving to eliminate the gender pay gap and is supporting the women it employs to improve their competencies and take on managerial positions.
Goal 7: Ensure access to affordable, reliable, sustainable and modern energy
In line with business diversification, the Budimex Group is increasing its involvement in green energy and sustainable transportation projects. Group companies are investing in renewable energy sources, as well as developing a national electric vehicle charging infrastructure. Our goal is that by 2026, 100% of the electricity consumed by Budimex is generated from renewable sources by Budimex Group companies.
Goal 8: Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all
The company’s priority is to create a safe and stable workplace for years to come. To this end, the Budimex Group continuously develops and implements policies and procedures in the areas of respect for diversity, anti-discrimination and anti-mobbing, and compliance, among others. In addition, the company promotes construction jobs to high school and college students. 
Goal 9: Build resilient infrastructure, promote sustainable industrialization and foster innovation
In view of its business profile, the Budimex Group is making a fundamental contribution to the development of reliable, sustainable and resilient infrastructure in Poland in support of sustainable social and economic development. This is possible, among other things, through innovation. The company has a specialized cell dedicated to this area.
Goal 12: Ensure sustainable consumption and production patterns
The Budimex Group supports the transformation of the construction industry to a circular economy being aware of the negative environmental effects caused by the construction sector’s increasing demand for natural resources.
Goal 13: Take urgent action to combat climate change and its impacts
In order to minimize its climate impact, the Budimex Group, among other things, is reducing the energy and material intensity of its operations and increasing the share of energy obtained from zero-carbon sources in the mix of purchased energy. To more effectively reduce its carbon footprint, the company has expanded its identification of greenhouse gas emissions to include Scope 3. An important contribution of the company to climate change adaptation is the search for design solutions that can withstand extreme weather events.
Goal 15: Sustainably manage forests, combat desertification, halt and reverse land degradation, halt biodiversity loss
The Budimex Group undertakes numerous measures to protect ecosystems in the vicinity of its projects. They concern, among other things, reducing construction noise and protecting biodiversity.
The Budimex Group makes a particularly significant contribution, in connection with its business model, to goals 7, 8 and 9.
As it continues to expand the scope of its activities in the sustainability area, the Budimex Group is also increasingly contributing to the achievement of two further goals adopted by the international community:
Goal 6: Ensure access to water and sanitation for all through sustainable management of water
The Budimex Group will be one of the first companies in Poland to measure its water footprint, i.e. its impact on water resources, in order to develop a comprehensive plan based on scientific knowledge for further activities to reduce the intake and consumption of this valuable resource.
Goal 11: Make cities inclusive, safe, resilient and sustainable
The construction of modern roads, bridges, railroads and stations is the subject of a large proportion of the Budimex Group’s contracts, which is crucial for expanding access to safe and sustainable transportation systems, including public transportation. In addition, the company is developing the infrastructure of local government transportation companies, including responding to the challenges of a sustainable future (electric vehicle charging stations).
[ESRS G1-1]
The Budimex Group’s mission is to execute construction projects in a manner worthy of a market leader, with respect for the environment and ethics, with attention to customer satisfaction and user comfort. The company achieves all this through professionalism derived from experience and a passion for building, high operational efficiency, and partnerships with suppliers and subcontractors.
The Budimex Group is fully aware of the scale of measures to be taken in the area of climate change mitigation and resource conservation. Equally important are investments in human capital and the local communities surrounding the Group’s projects. The organization wants to continuously develop. Its enduring commitments are special diligence in ethical conduct, attention to occupational health and safety, mitigation of environmental impact, and ensuring customer satisfaction and the highest quality of services delivered. This holistic approach is reflected in the ESG Strategy 2023-2026, described in more detail in Section 3.3., which touches on three areas: environmental, social and governance. It represents a commitment to building with respect for the environment, strengthening employees and business partners, and responsible management.
Figure: Values of the Budimex Group
Code of Conduct
In order to create a stable benchmark for the proper conduct of its employees, the Budimex Group has developed and adopted a Code of Conduct. This internal document describes the Group’s four aforementioned values, identifies areas of special adherence to ethical values, and sets out guidelines for conduct in the listed types of relationships and areas of influence of the organization. Its provisions are guarded by the Ethics Committee, which includes the Legal Director of the Compliance area, the Director of the Human Resources Human Resources Management Division and the Director of the Internal Control Department. The Committee investigates violations of the Code and provides guidance on compliance with the principles contained therein, while maintaining the necessary standards of confidentiality. Any violations of the document can be reported through the mechanisms described in subsection 6.1.2. In the FBSerwis Group and Mostostal Kraków SA, oversight of compliance with the Code of Conduct is the responsibility of compliance officers.
Competency model
Budimex SA is constantly striving to develop and achieve the best possible results. The organization is focused on achieving new, increasingly ambitious and complex goals. The dynamic business environment and stakeholder expectations are forcing fast, effective actions oriented toward further successes. In order to function efficiently in such realities, the company has developed a set of attitudes, behaviors and skills called a competency model. According to it, each position was described through four key competencies: inspiring trust, collaboration, results orientation and nurturing innovation, as well as through job competencies specific to each pay grade. Each competency is described by specific behaviors, making them easier to see in daily practice, which in turn allows the company to consciously work on improving them.
Figure: Competency model
We present the Budimex Group’s integrated report for 2023. In the report, we show how we are turning challenging environmental plans and social goals into measurable results. In these difficult times, we are not afraid to challenge ourselves to meet the expectations of our stakeholders. I would like to thank every employee who has contributed to our sustainability efforts.
In 2023, the construction sector stabilized after the difficulties caused by the pandemic and the war in Ukraine. Poland is now considered the largest construction site in Europe due to its large number of projects, especially in infrastructure. Although local conditions are favorable, we are not a green island – we face the same problems as other European Union countries, such as soaring costs and insufficient availability of workers.
In order to strengthen our potential in the sustainability area and to be even more responsive to the challenges of the future, we announced the ESG Strategy 2023-2026 with an outlook until 2050. The document systematizes our approach and plans in the environmental, social and governance areas. At its core are strategic goals that address key challenges for the construction sector and are consistent with the UN Sustainable Development Goals. They will set the pace for our operations.
As a proactive company, we focus on sustainable development. In 2023, we continued to increase our commitment to green energy. We invested in photovoltaics and in electrifying our vehicle fleet, and all the electricity we obtained from third-party suppliers came from renewable sources, which is confirmed by relevant guarantees.
We are raising the environmental awareness of our employees. Last year, they had the opportunity to take part in a grant program and win funds for grassroots projects in the ESG area, including education or climate change prevention projects. There has been a significant increase in the number of employees involved in research and development projects.
In the environment area, and of particular relevance in the context of the current environmental situation, is our promise to reduce CO₂ emissions from Scopes 1 and 2 by 20% by 2030 compared to 2020, and to aim for climate neutrality by 2050. Because of the focus of our activities, a significant positive impact will come from developing and implementing a circularity policy. In the social and governance area, in turn, one should mention especially, among other things, the annual implementation of training and programs to promote a safety culture on our construction sites, the further equalization of wages between men and women, and the launch of a process of systemic identification and analysis of ESG risks.
I am convinced that by adopting a sustainable development perspective, we will collectively turn the current challenges into success.
I invite you to read the report and reflect on the Budimex Group’s efforts for a better, sustainable future.
Artur Popko
President of the Budimex SA Management Board
The company’s structure includes an Innovation Department, which manages innovation projects and the implementation of new technologies.
We take steps to strengthen the culture of innovation. Our goal is for everyone employed at the Budimex Group to feel encouraged to propose new solutions and supported in developing them. We are committed to creating an environment where team members have the freedom to experiment, and where management is open to, appreciates and strives to implement ideas that are submitted. In this way, we plan to generate innovations that will not only address the company’s business needs and the challenges facing the construction industry, but also realize the aspirations of employees.
In 2023, 434 Budimex SA employees were involved in 62 carefully selected R&D projects, some of which were a continuation of activities initiated in previous years.
Advanced mobile collaborative robot
The object of the Concert project, funded by the European Commission under Horizon 2020, is to develop robots with high power and strength that can work alongside humans in a variety of often unstructured and dynamically changing environments. The initiative aims not only to increase efficiency and productivity in construction, but also to pave the way for the use of collaborative robotics in the manufacturing sector. The venture is being implemented from 2021 by a consortium involving Budimex SA, combining the experience of experts from Poland, Italy, Austria and Germany.
In 2023, within the framework of the aforementioned project, we began testing a robot that can perform the most physically demanding tasks for construction workers. Powered by an environmentally friendly electric motor and controlled by gestures, among other things, the device is able to work and safely avoid people and obstacles in a variety of conditions, enabled by advanced 360-degree cameras, four steering wheels or a lidar system. The innovative “cobot” (collaborative robot, a robot that works together with a human) can move completely autonomously, for which it can use an uploaded BIM model of the facility. Thanks to its modular design, it can be easily adapted to different applications.
The robot, developed by an international team of engineers in cooperation with the Central Institute for Labor Protection, was tested by us at the construction site of the Military Clinical Hospital in Kraków, where it helped in transporting heavy items and drilling, among other tasks. During the tests, we presented the “cobot” to students from Kraków universities, with the aim of introducing them to the practical aspects of using robots on construction sites, inspiring them to further innovation in the industry, but also drawing their attention to the need for ethical and safe implementation of the technology.
A short video about our tests can be viewed at: https://www.youtube.com/watch?v=9IGeOyLkgOw, and additional information about the entire Concert project can be found on its website: https://concertproject.eu/.
3D printing from concrete
The use of 3D printing technology for the design and construction of concrete stairs at the Ełk railroad station being modernized by Budimex was the first application of this technology in Poland in construction practice. With a length of 7 meters, a width of 80 cm and a height of about 4.5 meters, the staircase, made up of three elements weighing a total of nearly 2 tons, is a perfect example of the efficiency and flexibility that 3D printing offers in our industry.
The goal of the project was to better understand 3D printing technology from concrete and assess its practicality. The results of the implementation indicate that 3D printing can offer significant environmental benefits, such as reduced waste, reduced carbon footprint and more efficient use of materials.
Budimex SA has for many years maintained its position as a leader in the construction industry thanks to, among other things, reaching for modern technologies to support the company’s activities in many areas, and in particular, by constantly expanding the scope of application of the Building Information Modeling (BIM) methodology. We also pay a lot of attention to pilot implementations of technologies not previously used in the Polish construction industry.
Building Information Modeling
We use the BIM methodology to optimize all stages of the construction process, from design through construction to maintenance of buildings, as well as to optimize internal processes and improve operational efficiency. In 2023, we continued these activities and sought new areas for applying the aforementioned methodology in our organization. It is applied in the company in two key areas, which are:
One of the basic assumptions of the methodology in question is the use of the CDE (Common Data Environment) platform during the construction process as a central system for managing documentation and BIM models and for streamlining processes, such as work acceptance.
In 2023, we used the BIM methodology in a number of projects, among which the reconstruction of the Warsaw West railroad station, the construction of the PepsiCo factory in Środa Śląska, and the construction of the Military Clinical Hospital building in Kraków deserve special mention.
BIM-based design
State-of-the-art design software based on the BIM methodology allows us to develop designs in the form of 3D models with the necessary material and quantitative information early in the process. This type of design involves making a digital prototype of the planned project and continuing the work in the virtual world, so we are able, among other things, to find errors in the design before they occur on the construction site.
3D scanning
Another key BIM-based solution that we commonly use in our company is 3D scanning. This technology enables efficient inventory-taking of building and infrastructure facilities. We are able to acquire data from the area of the planned project in a very short time or take measurements during the ongoing work to verify the original design assumptions. 3D scanning is a surveying measurement, but the result is a set of points that can be reflected in 3D.
[GRI 3-3] [Own indicator 1]
Budimex SA as a modern company enterprise participates in the development of technologies. They make it possible to optimize the cost of execution work and reduce its environmental impact, as well as to make finished facilities more sustainable.
One of our primary areas of focus is the recycling of building materials, which reduces the industry’s need for natural resources. We focus on the reuse of materials resulting from the milling of pavements made of mineral-asphalt mixtures and cement concrete.
Recyclobeton
Recyclobeton is a project based on the idea of processing crushed concrete directly on the construction site for local use of this raw material in a closed system. The project conducted a series of concrete mix tests in 2023, using both crushed stone and fresh mix, experimenting with different proportions and methods of adding and mixing components. Working on the recycling of construction materials is a key area of focus for Budimex following from the assumptions of its ESG strategy. An industry article on this issue can be found at: https://inzynierbudownictwa.pl/transformacja-budownictwa-do-obiegu-zamknietego-zastosowanie-materialow-z-recyklingu/
Mineral and asphalt mixtures with asphalt granules
For years Budimex has been successfully developing a circular materials and production economy through the use of asphalt granules in the production of mineral and asphalt mixtures. These activities use the latest technologies in the extraction, processing and remarketing of recycled materials. Control over the process is exercised by employees of Budimex laboratories and employees of the Directorate of Equipment and Production Services [1].
Self-healing asphalt pavements
The SeHePa (Self-Healing Pavement) project, subsidized by the National Center for Research and Development and implemented by Budimex SA in cooperation with the Warsaw University of Technology, involves the development and real-world testing of mineral and asphalt mixtures with special microcapsules. A key feature of such mixtures is self-healing properties. They make it possible to increase the service life of road surfaces, which brings tangible economic benefits and reduces the negative impact on the environment by reducing the frequency of maintenance and repair interventions and reducing the consumption of raw materials.
[1] Until 1 February 2024, under the name Equipment Services Division.
[GRI 3-3] [Own indicator 3]
Caring for the highest quality of provided services is one of Budimex SA’s core values, and meeting the principle of due diligence in this area is guaranteed by the certified Integrated Management System operating in the company. It includes both a quality management system that complies with the requirements of ISO 9001 and a quality assurance system for design, development and production based on the AQAP 2110 standard, which specifies NATO requirements.
Uniform quality procedures apply during the company’s performance of all contracts. They regulate in detail the conduct of quality control at construction sites and the management of the quality of mineral and asphalt mixtures, concrete mixtures and aggregates. The relevant procedures also specify the rules for the procurement and use of individual raw materials at various stages of the construction process, and indicate the actions to be taken if deviations from the standard are found. The highest quality of contract performance is confirmed by numerous certificates and accreditations.
In 2023, day-to-day control of the quality of work performed and materials used, including in the context of the safety of building structures, was carried out by the Central Laboratory and 25 field laboratories owned by the company.
The Central Laboratory operates in accordance with ISO/IEC 17025 and has been accredited by the Polish Accreditation Center since 2013, with accreditation extended to the field laboratory in Szczecin in 2024 [1]. Accreditation ensures transparency and is objective proof that the organization operates in accordance with the best practices. The laboratory regularly participates in comparative inter-laboratory studies and proficiency tests, with the aim of constantly improving its testing methods and raising the level of its services. As part of its activities, it constantly cooperates with recognized testing bodies.
Budimex SA’s Quality Department conducts research and development activities and shares knowledge and experience, taking an active part in scientific conferences and publishing articles in industry journals. In addition, it provides technology consulting.
Budimex SA’s laboratories provide, among other services, the following:
Tests and measurements are carried out by qualified personnel, using proven equipment and premises that meet environmental standards. Competent and experienced personnel and specialized equipment make it possible to provide laboratory services in accordance with the terms of contracts and technical specifications for the execution of individual work ranges.
An important part of the laboratories’ work is to strive to optimize the use of natural resources, in particular to analyze the feasibility of using recycled and waste materials in construction. To this end, among other things, new testing methods are being developed and implemented, an example of which is the Study of Crack Propagation (SCB), which is important for the possibility of using asphalt granules in asphalt mixtures. Care for the environment is also manifested by the laboratories’ use of energy from renewable sources. There are photovoltaic panels on the roof of the laboratory building, which, combined with a system for monitoring electricity consumption, significantly reduces the carbon footprint.
Achievement of the goal of continuous improvement of service quality is monitored by the quality conformance index, which in 2023 reached 96.3%.
[1] Its scope can be viewed at: https://www.pca.gov.pl/akredytowane-podmioty/akredytacje-aktywne/laboratoria-badawcze/AB%201414,plik.html.
The effectiveness of the Budimex Group’s activities for the sustainable socio-economic development of Poland is confirmed by the awards and titles received in 2023.
Construction of the Year 2022 – Budimex SA received awards from the Polish Association of Civil Engineers and Technicians for the modernization of the Institute of Thermal Engineering at Warsaw University of Technology and the construction of the Łagiewnicka Route in Kraków.
Modernization of the Year 2023 – in the 27th edition of the Modernization of the Year & Construction of the 21st Century competition, Budimex SA’s modernization of the century-old Silesian Planetarium in Chorzów was awarded.
POLITYKA’S 2023 CSR White Leaf – Polityka weekly awarded Budimex SA with a prestigious distinction for improving the company’s social and environmental impact management activities.
WNP Award 2023 – Budimex SA received an award from the WNP.PL portal and the Economic Magazine “New Industry”. The award was given for contributions to the development of the Polish economy.
General contractor friendly to construction companies – Budimex SA once again received the title from construction industry experts in a ranking conducted by ASM Center for Analysis and Market Research. The company took first place in three subcategories:
Diversity Leader 2024 – Budimex SA was ranked among the top ten construction companies in the world in a ranking based on a global survey organized by the Financial Times on companies’ support for diversity and women’s professional development (see subsection 5.3. for more information).
List of 500 – Budimex SA made it to the list of the largest Polish companies, compiled by the Rzeczpospolita daily and the Coface financial group on the basis of sales revenue for 2022. Ranked 66th overall, the company was well ahead of all competitors in the construction industry.
Rzeczpospolita’s Employer – Budimex SA received an honorable mention in the aforementioned competition in the category of best remuneration solutions. The Rzeczpospolita daily pointed to companies compensating employees for the decline in the value of their salaries due to inflation as these exemplary initiatives.
Construction Company of the Year 2022 – the title in the general contractor category was awarded to Budimex SA by “Builder” magazine as part of the 20th edition of the Builder Awards.
Best solution from the area of circular economy – in a competition organized by the Polish Agency for Enterprise Development in the category of best implemented products, Budimex SA received an honorable mention for its innovative technology for the production of mineral-asphalt mixtures using recycled asphalt pavement material.
TopBuilder 2023 – the prestigious award honored the reconstruction of track systems along with accompanying infrastructure on the E-59 railroad line between Rokietnica and Wronki, completed by Budimex SA.
Lower Silesian Construction of the Year 2022 – for the construction of the PepsiCo plant Budimex SA was honored with an award in the competition of the Polish Association of Construction Engineers and Technicians in the industrial construction category.
Dividend Company of the Year 2022 – Budimex SA won the title in a poll honoring companies contributing to investor awareness and building products and services of the highest quality, accompanying the Invest Cuffs conference.
Golden Hundred of Łódzkie Voivodship – FBSerwis Kamieńsk was ranked 3rd in the ranking of “Dziennik Łódzki” in the category of the largest companies by net sales profitability in 2022.
TOP Brand 2023 – Budimex SA is the undisputed leader in terms of recognition among Polish construction and development companies. It won first place in the Top Brand 2023 ranking in its industry, and was thus among the 50 strongest brands in Poland.
The Budimex Group’s staff was also recognized in 2023 for its contribution in the sustainability area, among other aspects.
President of the Budimex SA Management Board Artur Popko has been awarded in the Builder Awards in the Industry Personality 2022 category.
Representatives of Budimex SA have been nominated for the European Women In Construction & Engineering Award 2023, an award for women working in the European engineering and construction industry who have outstanding achievements and are an inspiration to others. Among them are:
In the competition organized for all OHS areas of Ferrovial Group companies, one of the awards went to Maja Zielińska, OHS manager of District 9 of the General Construction Directorate at Budimex SA.
Already after the end of the period covered by the report, in February 2024, Budimex SA Management Board Member, Chief Operating Officer of Railway, Energy and Industrial Construction Maciej Olek, Budimex SA Management Board Member, Chief Operating Officer of Infrastructure Cezary Łysenko, and President of the Management Board, Managing Director of Mostostal Kraków Jacek Lech received the Builder Awards in the 2023 Industry Personality category.
Information on the awards and distinctions received by the Budimex Group is published on an ongoing basis at: https://media.budimex.pl/category/3193.
[GRI 2-28]
Budimex Group companies are members of numerous industry organizations. As such, they actively participate in meetings, conferences and gatherings of program councils and other statutory bodies. Leading Budimex Group companies belong to the following organizations:
BUDIMEX SA
MOSTOSTAL KRAKÓW SA
FBSERWIS GROUP
[1] Until February 2024 under the name of Procurement, Quality and Environmental Protection Department.
Table: Key performance indicators in the ESG area: Budimex SA
Table: Key performance indicators in the ESG area: Budimex Group
* Data revised from those published in the 2022 integrated report
[ESRS SBM-1]
FINANCIAL CAPITAL
The capital from which the Budimex Group finances its operations is the funds entrusted to it by shareholders and lenders, and generated by the company through its profits. The Group allocates these resources to purchase necessary raw materials and supplies, and pays its obligations to its business partners in a timely manner, which contributes to their liquidity.
In 2023, the management of financial capital was in line with the set targets. There was a 13.8% increase in sales in the construction segment compared to the previous year. The segment’s gross sales margin reached 10.9%, up from 9.6% in 2022, despite a sharp increase in material prices. The company maintained its contract margin target for most projects. Cost discipline was maintained, with a combined SG&A expense ratio of 3.9% (3.8% in 2022). Net profit stood at PLN 746.1 million, compared with PLN 548.1 million the previous year. Paid a dividend of PLN 459.3 million from the 2022 profit. Effectively managed finances, increasing the net cash position at the end of 2023 to PLN 3.8 billion, an increase of 22.6% over the previous year.
Table: Achieved results – financial capital
More information on financial capital can be found in the 2023 Report on the Activities of the Budimex Group and Budimex SA, available at: https://inwestor.budimex.pl/raporty-okresowe.
HUMAN CAPITAL
The Budimex Group is made up of a diverse team of experienced engineers and employees from other professions committed to building its lasting value. The company consistently provides its team and business partners with decent working conditions, and supports the development of their competence. The priority value is concern for the health and life of all participants in the construction process, so not only the employees of the Budimex Group, but also the staff of its consortium members or suppliers, among others.
In 2023, human capital management included, in particular, thoroughly analyzing the most serious occupational health and safety incidents, organizing safety visits to construction sites and Safety Week, organizing employee development programs (including Young Engineer Academy, Contract Manager Academy, Super Leader, Brick Success), and conducting another engagement survey, through which areas for improvement or enhancement were identified.
Table: Achieved results – human capital
In 2023, organizational capital management primarily included the establishment of BXF Energia Sp. z o.o., the acquisition of PPUH Konstalex Sp. z o.o., and the opening of a Budimex SA branch in Riga, Latvia.
Table: Achieved results – organizational capital
For more information on the Budimex Group’s organizational capital, see Sections 2.1., 2.2. and 2.3., among others.
INTELLECTUAL CAPITAL
The intellectual capital of the Budimex Group is the knowledge and competence of its employees, as well as the unique technical solutions developed by the company, enabling it to, among other things, ensure the safety of the recipients of the Group’s projects and the environment.
In 2023, intellectual capital management included the operation of the Innovation Department and a network of specialized laboratories, as well as the Group’s involvement in 62 carefully selected R&D projects.
Table: Achieved results – intellectual capital
For more information on intellectual capital, see Sections 2.9., 2.10., 2.11. and 5.6.
SOCIAL CAPITAL
A company’s social capital is the relationships it has built with its surroundings, including suppliers, subcontractors, local communities, other companies in the construction sector or public administration.
In 2023, the Budimex Group’s social capital management included, among other things: organizing consultations and information campaigns related to ongoing contracts, compensating local communities for nuisances caused during works, working with other companies to solve common problems of the industry, developing original social programs, running the employee volunteer program Grant for Volunteers, implementing educational projects for pupils and students, and supporting the common good through donations.
Table: Achieved results – social capital
* Data revised from those published in the 2022 integrated report.
For more information on social capital, see Section 5.8.
NATURAL CAPITAL
The Budimex Group uses natural capital, consuming raw materials and potentially contributing to their depletion through negative impacts on ecosystems and the climate.
In 2023, natural capital management consisted of minimizing direct and indirect environmental impacts and included, among other things, increasingly efficient management of raw material consumption (including activities in line with the idea of a circular economy), appropriate planning and securing of construction sites, application of environmental responsibility principles in the supply chain, and a systematic increase in the percentage of electric and hybrid vehicles in the Budimex Group’s fleet.
Table: Effects achieved
[GRI 302-3] [GRI 305-4] [ESRS E1-5] [ESRS E1-6]
* Data revised from that presented in the 2022 report.
For more information on the Budimex Group’s natural capital, see the Environmental Responsibility section of this report.
[GRI 2-9] [GRI 2-11] [ESRS GOV-1]
Management Board composition
As at 31 December 2023, the Management Board of Budimex SA consisted of the following members:
On 6 February 2023, the Supervisory Board suspended Mr. Artur Pielech from the Management Board of Budimex SA. On 30 March 2023, the Supervisory Board dismissed Mr. Artur Pielech from the company’s Management Board.
The members of the management body do not hold any positions within the company outside the area of responsibility defined in the aforementioned job title.
Composition of the Supervisory Board
As at 31 December 2023, the Supervisory Board of Budimex SA consisted of the following members:
On 30 March 2023, the Supervisory Board was enlarged with a new member Mr. Silvia Rodríguez Hueso with effect from 1 April 2023. As of 27 April 2023, Mr. Dariusz Blocher resigned as a member of the Supervisory Board.
Members of the Supervisory Board do not perform operational functions in the company. Some members of the Supervisory Board serve on Supervisory Board committees. The compositions of the Supervisory Board Committees are presented in Section 6.
Neither the Management Board nor the Supervisory Board includes representatives of stakeholders, such as a trade union delegate, yet both these corporate bodies take into account the results of dialogue with the social environment in their decisions. The scope and mechanisms of this dialogue are described subsections 6.1.1. and 5.8.1.
The Supervisory Board is made up of experienced managers, engineers and academics (law, economics, banking, auditing), which is a significant advantage for the company in terms of potentially complementing the competence of the Management Board and being able to provide it with information and guidance in specialized areas.
Full information about the education and career paths of the members of the Management Board and Supervisory Board is published by the company on the website https://www.budimex.pl/pl/o-budimex/wladze.
The shareholding of Budimex SA, to the company’s knowledge as of 31 December 2023, was as follows:
Figure: Share of Budimex SA’s share capital to the company’s knowledge as of 31 December 2023
In January 2023, the company received information from Powszechne Towarzystwo Emerytalne Allianz Polska SA about the merger of this entity with Aviva Powszechne Towarzystwo Emerytalne Aviva Santander SA, pursuant to Art. 492 sec. 1 item 1 CCC and Article 67 of the Act on Organization and Operation of Pension Funds, as a result of which the share in the share capital and the total number of votes in Budimex SA in the accounts of the funds managed by PTE Allianz Polska SA increased to 2,689,466 shares representing 10.53% of the share capital. In June 2023, the company received information from PTE Allianz Polska S.A. that, as a result of the sale of its shares, the company’s share in Budimex SA’s share capital and total number of votes in the Allianz OFE account was 2,551,331 shares, representing a total of 9.99%.
Budimex SA has been listed on the Warsaw Stock Exchange since 1995. As of September 2019, the company has been a member of the WIG-ESG index, which brings together the most responsible listed companies, and prior to joining it, from 2011 to 2019, it was part of its predecessor, the Respect Index.
On 31 August 2023, Budimex SA was included in the MSCI Poland index, run by New York investment bank Morgan Stanley for investment funds and aggregating Polish companies with the greatest growth prospects and a stable financial position. The selection of companies included in MSCI Poland index is based on several variables, the most important of which are the value (market capitalization) and how often and willingly market participants buy or sell shares of a given company. Only 14 entities have so far qualified for the main index for Poland.
On 29 February 2024, the results of the annual revision of stock market indices were announced by WSE Benchmark, as a result of which Budimex SA joined the prestigious WIG20 index. It groups together the largest companies listed on the WSE, which are reference points for domestic and foreign investors. Budimex will be listed as the 10th largest share of the WIG20. The company returns to the index after a 20- year hiatus – it was part of the index between 1995 and 2004.
Consolidation of Budimex F Sp. z o.o. and Budimex Slovakia s.r.o.
The above companies were consolidated due to the start of significant operations.
Establishment of civil partnerships under German law
Budimex SA and Budimex Bau GmbH, a wholly owned subsidiary of Budimex SA, have jointly established 4 civil companies under German law: ARGE Brücke Oderberg, ARGE Brücke Wittstock, ARGE Oberkrämmer and ARGE Campus Düppel. They are treated as joint entities and were established to perform construction contracts.
Establishment of BXF Energia Sp. z o.o.
The articles of incorporation of BXF Energia Sp. z o.o. were signed on 17 May 2023. The company was entered in the National Court Register on 25 September 2023.
Establishment of WMSerwis SA
On 22 May 2023, Budimex SA established WMSerwis SA. The company was registered with the National Court Register on 12 July 2023. It was not consolidated due to the absence of significant operating activities.
Establishment of Green Waste Management 1, 2, 3, 4, 5, 6 Sp. z o.o.
In June and July 2023, FBSerwis SA established 6 limited liability companies. They were registered with the National Court Register in June, July and August 2023. They have not been consolidated due to the lack of significant operating activities.
Dissolution of Budimex SA Ferrovial Construcción SA Sp.j.
On 13 January 2023, the company was deleted from the National Court Register, according to an application filed on 29 December 2022.
Dissolution of Budimex SA Ferrovial Agroman SA 2 S.c.
On 17 May 2023, the company’s shareholders – Budimex SA (95% of the contributions) and Ferrovial Agroman SA (5% of the contributions) – adopted a resolution to dissolve the company due to its inability to achieve the economic purpose for which it was established.
Acquisition of PPUH Konstalex Sp. z o.o.
On 15 May 2023, Mostostal Kraków SA, a wholly owned subsidiary of Budimex SA, concluded an agreement with two individuals for the acquisition of 80 shares in Przedsiębiorstwo Produkcyjno-Usługowo-Handlowe Konstalex Sp. z o.o., representing 100% of the company’s share capital and entitling to 100% of votes at the company’s shareholder meeting.
The Group’s structure as of 31 December 2023 is as follows:
Consolidated companies:
Other companies with Budimex SA’s shareholding:
Budimex Group companies have Integrated Management Systems (IMS) in place, which includes all the organizational units and functions of the entity and is characterized by:
The framework for the policies governing IMS in the companies is provided by the Budimex Group Policy. Some IMS documents are managed centrally and apply in unchanged form and content to all Group companies. A common system makes it possible to deepen the integration and systematization of the activities of all entities to ensure stable development and the achievement of ever higher levels of organization.
The said policy is discussed with the companies’ employees during training sessions. It is subject to regular reviews, the results of which are the basis for corrective and preventive actions and other activities aimed at continuous improvement of the systems.
BUDIMEX SA
In the organization and implementation of investment projects, Budimex SA applies an Integrated Management System that includes:
The Integrated Management System is coordinated jointly with associated systems, including:
Supervision of the functioning of the IMS and associated systems at Budimex SA is exercised by the Corporate Systems Department and the Management Board Systems Representative. Internal audits in this area are carried out by the Management Systems Audit Department, a unit of the Internal Audit Department.
Figure: Diagram of the operation of the Integrated Management System
Figure: Defined processes in IMS
MOSTOSTAL KRAKÓW SA
At Mostostal Kraków SA, the Integrated Management System (IMS) consists of:
They are supervised by the Management Board’s Integrated Management System representative.
The scope of the IMS described above includes the organization and management of comprehensive project implementation, construction, supply and installation of general, industrial and communications construction facilities, as well as the implementation of industrial pipelines. Scope of the IMS applies to construction contracts performed in the Republic of Poland and abroad.
Associated systems, which are consistent with the IMS and use part of its procedures and instructions, include:
FBSERWIS GROUP
The environmental management system at the FBSerwis Group is based on policies grounded in the requirements of Commission Implementing Decision (EU) 2018/1147 of 10 August 2018 establishing best available techniques (BAT) conclusions for waste treatment. BAT conclusions have been implemented at FBSerwis Dolny Śląsk, FBSerwis Karpatia, FBSerwis Kamieńsk and FBSerwis Wrocław based on operating procedures.
FBSerwis Wrocław has implemented an Integrated Management System compliant with ISO 9001 and ISO 14001. Its scope includes pick-up, collection and transportation of solid waste (municipal and industrial), collection and transportation of liquid waste, mechanical-biological processing of municipal waste, trading in recyclables, cleaning of outdoor and indoor areas, and summer and winter maintenance of roads and sidewalks.
Management systems certificates
The effectiveness of the implemented management systems is guaranteed by the constant supervision of external independent certification bodies. In 2023, the systems discussed above underwent adequate external supervision audits, which resulted in the maintenance of certificates of compliance with the relevant ISO standards.
KEY ECONOMIC AND FINANCIAL DATA
In 2023, the Budimex Group earned sales revenues of PLN 9 801 515 thousand, which represents a 13.72% increase compared
to the revenue earned in 2022.
Table: Consolidated Profit and Loss Account of the Budimex Group
In 2023, construction and assembly output in Poland expressed in current prices increased by 15.4% year-on-year, while sales of the Budimex Group’s construction segment on the domestic market increased by 13.3% in comparable periods.
In 2023, gross profit on sales stood at PLN 1 124 581 thousand, while in the previous year it reached PLN 872 443 thousand.
The gross sales profitability in 2023 was 11.5% and in 2022 this figure was 10.1%.
In accordance with the adopted accounting policies, as soon as Group companies become aware of the fact that budgeted construction contract costs exceed the entire expected contract revenues, they create provisions for expected contract losses and recognize them in the consolidated statements of financing activities under “Provisions for construction contract losses.”
As of 31 December 2023, the balance of the provision for contract losses amounted to PLN 771 947 thousand. In 2023, the balance of the provision for contract losses was reduced by PLN 31 316 thousand. The Budimex Group companies are required to provide guarantees for their construction services. As at 31 December 2023, the balance of provisions for warranty repairs was PLN 739 910 thousand. In the 12-month period ended 31 December 2023, the balance of provisions for warranty repairs increased by PLN 103 940 thousand.
Compared to the previous year, selling expenses decreased in the twelve-month period ended 31 December 2023 by PLN 14 thousand, while administrative expenses were PLN 54 243 thousand higher than the expenses incurred in 2022. The share of the sum total of selling and administrative expenses in total sales revenue increased from 3.8% in 2022 to 3.9% in 2023. Other operating income in 2023 amounted to PLN 125 722 thousand and other operating expenses amounted to PLN 84 264 thousand. Detailed analytics of other operating income and expenses are presented in Note 32 to the consolidated financial statements.
In 2023, the Group posted an operating profit of PLN 781 127 thousand, representing 8.0% of total sales revenues. In the previous year, the Group reported an operating profit of PLN 562 427 thousand, representing 6.5% of total sales revenues. In the 12-month period ended 31 December 2023, the Group reported profit on financing activities in the amount of PLN 148 180 thousand, while in 2022 – a profit of PLN 86 372 thousand. Detailed analytics of finance income and costs are presented in Note 33 to the consolidated financial statements. In 2023, the Group reported a gross profit of PLN 929 612 thousand, while in the previous year it reported a gross profit of PLN 648 934 thousand.
Income tax expense for 2023 was PLN 183 547 thousand, of which:
As at 31 December 2023, the Group recognized deferred tax assets in the amount of PLN 810 426 thousand and deferred tax liabilities in the amount of PLN 1 633 thousand, while as of 31 December 2022 the Group recorded deferred tax assets of PLN 685 036 thousand and deferred tax liabilities of PLN 1 149 thousand. Items of deferred income tax asset reported in the statement of the financial position of the Budimex Group result mainly from the specific method of settlement of construction contracts, under which the moment of recognition of costs as incurred and revenue as earned is different from the tax and accounting perspective.
The net profit on continuing operations attributable to the shareholders of Budimex SA for 2023 was PLN 738 196 thousand, whereas for 2022 it amounted to PLN 534 443 thousand, representing an increase of 38.1%. Net profit attributable to non-controlling interest for 2023 amounted to PLN 7 869 thousand. In the previous year, net profit attributable to non-controlling interest stood at PLN 13 686 thousand.
Key economic and financial data of Budimex SA
The financial situation of Budimex SA in 2023 is characterized by selected items disclosed in the Statement of Financial Position and Profit and Loss Account (as below, together with the 2022 comparative data).
Statement of financial position of Budimex SA
Table: The main items of the Company’s Statement of Financial Position of Budimex SA
As of 31 December 2023, the total assets increased by PLN 906 394 thousand as compared to 31 December 2022, and amounted to PLN 7 349 333 thousand. Changes in the Statement of Financial Position were mainly related to the following events:
Non-current assets:
The most significant changes in non-current assets were as follows:
Current assets:
In the same period, the value of current assets increased by PLN 758 679 thousand, mainly as a result of the following events:
Table: Equity and liabilities of Budimex SA
Equity and liabilities:
On the side of equity and liabilities, the most significant changes referred to:
Table: Profit and Loss Account of Budimex SA
Within the twelve-month period of 2023, Budimex SA generated revenues from sales in the amount of PLN 8 469 668 thousand, while in 2022 they amounted to PLN 7 507 937, i.e., a 12.8% increase.
In 2023, gross profit on sales stood at PLN 940 160 thousand, while in the previous year it reached PLN 718 372 thousand. The gross sales profitability ratio for 2023 was therefore 11.1% and was higher than in 2022, when it reached 9.6%.
Pursuant to the adopted accounting principles, the Company creates provision for contract losses if the budgeted costs exceed the total revenues under the agreement. In the subsequent periods, a part of the earlier created provision is reversed in proportion to the percentage of contract completion, after taking into account the total negative margin on the entire contract. As at 31 December 2022, the balance of the provision for contract losses amounted to PLN 791 275 thousand. In the twelve-month period ended 31 December 2023, the balance of the provision for contract losses decreased by PLN 33 039 thousand.
The selling expenses in 2023 decreased by PLN 17 thousand year-on-year, while the general administrative expenses grew by PLN 33 304 thousand. The share of the sum total of selling and administrative expenses in total sales revenue for the year under review was unchanged from 2022 at 3.6%.
Other operating income in the twelve-month period of 2023 amounted to PLN 98 931 thousand and other operating expenses – to PLN 32 569 thousand. Detailed analytics of other operating income and expenses are presented in Note 31 to the financial statements. In the twelve-month period of 2023, the Company reported profit on financing activities of PLN 199 002 thousand. Detailed analytics of finance income and costs are presented in Note 32 to the financial statements.
In 2023, the Company earned a gross profit of PLN 901 004 thousand. The comparable gross profit for 2022 amounted to PLN 543 942 thousand and was lower by 65.64% than in the current year.
Income tax for the 12 months of 2023 amounted to PLN 151 435 thousand, including:
In 2023, Budimex SA earned a net profit in the amount of PLN 749 569 thousand.
STATEMENT OF CASH FLOWS
Consolidated Statement of Cash Flows of the Budimex Group
“Cash and cash equivalents” included in the Statement of Cash Flows comprise cash in hand, demand deposits, and bank deposits that are readily convertible to a known amount of cash and are subject to an insignificant risk of changes in value. 
Included in cash of restricted use are mainly cash items representing:
The Budimex Group entered 2023 with cash in hand and cash at bank amounting to a total of PLN 3 249 369 thousand. For the purpose of the Statement of Cash Flows, this amount was reduced by the amount of restricted cash of PLN 27 959 thousand.
Net cash flow for 2023 was positive and amounted to PLN 654 933 thousand. As at 31 December 2023, the Group’s reported cash balance was PLN 3 900 290 thousand, of which restricted cash was PLN 22 396 thousand.
In 2023, the balance of cash from operating activities increased by PLN 1 312 035 thousand, mainly due to decreased financial involvement of the Group companies (and increased involvement of investors) in projects implemented.
Cash flow from investing activities came out to a negative balance of PLN 131 810 thousand, which was mainly the result of the acquisition of property, plant and equipment, as well as shares in related entities. Cash flow from financing activities for 2023 showed a negative balance, which amounted to PLN 525 292 thousand and resulted mainly from the 2022 dividend payment and payment of lease liabilities and credit.
Statement of Cash Flows of Budimex SA
The balance of cash in bank accounts and in hand at the beginning of 2023 amounted to PLN 2 830 825 thousand. For the purposes of drafting the statement of cash flows, this amount was adjusted with the value of restricted cash (in the amount of PLN 9 010 thousand), comprising mainly cash accumulated in split payment accounts and in accounts of consortia in the portion attributable to other consortium members. In the twelve months of 2023, net cash flow was positive and amounted to PLN 648 690 thousand. As at 31 December 2023, the Company reported a cash balance of PLN 3 484 987 thousand, including restricted cash of PLN 12 930 thousand.
In 2023, the balance of cash from operating activities increased by PLN 1 176 541 thousand.
The Company’s balance of cash from investing activities decreased by PLN 7 125 thousand, with the largest contribution coming from the acquisition of property, plant and equipment and the granting of loans to Group companies, including Budimex F Sp. z o.o., Mostostal Kraków SA and Fotowoltaika HIG XIV Sp. z o.o. while receiving dividends, including from FBSerwis SA, Budimex Budownictwo Sp. z o.o. and Mostostal Kraków SA.
Cash flow from financing activities for 2023 showed a negative balance of PLN 520 726 thousand. The expenses were connected with payment of the dividend made by the Company in the amount of PLN 459 286 thousand and repayment of lease liabilities.
Managing of finance
Managing of finance at the Budimex Group
The balance of cash and liquid deposits of the Budimex Group as at 31 December 2023 amounted to PLN 3 900 290 thousand and was PLN 650 921 thousand higher than as of 31 December 2022. The most important factors affecting this change in financial resources of the Budimex Group during 2023 include the following events:
In accordance with the Group’s policy, cash surpluses were placed as bank deposits in banks with high credit ratings. In addition, Budimex SA used cash surpluses to finance its suppliers of services and raw materials.
This had a positive effect on the financial liquidity of these suppliers.
At the same time, the Budimex Group reported an external debt in respect of bank loans, borrowings and leases, which as of 31 December 2023 amounted to PLN 236 591 thousand, including lease liabilities recognized in accordance with IFRS 16, amounting to PLN 130 153 thousand. The amount of the Group’s external debt on account of bank loans, borrowings and leases, without lease liabilities reported in accordance with IFRS 16, was PLN 106 438 thousand and was therefore PLN 12 779 thousand lower than as at 31 December 2022 (see table below). The Group’s debt is mainly composed of:
During 2023, Budimex SA did not draw on credit lines to which it has access. Persisting high interest rates in Poland in 2023 did not have a significant negative impact on the Budimex Group’s financial performance through rising interest expenses due to:
Table: Liabilities due to bank loans and borrowings and other external sources of finance of the Budimex Group
Table: Ratios showing the financing structure of the Budimex Group
At the end of 2023, compared to the end of 2022, the Group’s financing structure ratios remained roughly unchanged. The liquidity ratios (current and quick ratios) at the end of 2023 increased slightly, despite the dividend paid by Budimex SA.
Table: The liquidity ratios of the Budimex Group
Owing to the current very good financial standing of the Budimex Group, the cash resources held, access to credit at banks as well as the insignificant level of financial debt, there are no threats to the Group’s ability to finance its business activities in 2024.
Managing of finance at Budimex SA
The balance of cash and liquid deposits of Budimex SA as of 31 December 2023 amounted to PLN 3 484 987 thousand and was PLN 654 162 thousand higher than as of 31 December 2022. The most important factors contributing to this change in financial resources of Budimex SA during 2023 include the following events:
At the same time, the Company reported an external debt in respect of bank loans and borrowings and other external sources of finance, including lease liabilities, which as at 31 December 2023 amounted to PLN 103 860 thousand, including lease liabilities recognized in accordance with IFRS 16, amounting to PLN 88 757 thousand. The amount of Budimex SA’s external debt on account of bank loans, borrowings and leases understood in accordance with IAS 17, i.e., without lease liabilities, reported in accordance with IFRS 16, was PLN 15 103 thousand and was therefore PLN 16 830 thousand lower than as of 31 December 2022 and PLN 41 672 thousand lower than as of 31 December 2021 (see table below). The amount of financial debt of Budimex SA [1] comprises only liabilities under lease agreements in respect of machines and equipment required to carry out road construction projects. As at the end of 2022, the Company had no debt under bonds issued.
Table: Liabilities due to bank loans and borrowings and other external sources of finance of Budimex SA
Table: Ratios showing the financing structure of Budimex SA
At the end of 2023, the sustainability of the financing structure, as described above, improved as compared to 2022. The foregoing indicators were most significantly driven by two opposing factors: high profitability of the Company (high operating profitability and high net finance income – interest income and dividends received) resulting in an increase in equity and the dividend policy (annual payments close to the amount of net profits earned by the Company) which limits the rate of increase in equity. Liquidity ratios also improved in 2023 compared to 2022, reaching levels similar to those experienced at the end of 2021 (see table below).
Table: Liquidity ratios of Budimex SA
The Company’s situation with respect to liquidity and access to external sources of finance is currently very good, and there
are no risks to the financing of the Company’s activities in 2024.
Contingent liabilities and contingent receivables of the Budimex Group
Guarantees, sureties, and other contingent liabilities and receivables are described in Note 44 to the consolidated financial statements of the Budimex Group and in Note 44 to the financial statements of Budimex SA.The table below shows loan guarantees and sureties issued by Budimex SA or its subsidiaries as of 31 December 2023.
Table: Contingent liabilities and contingent receivables of the Budimex Group
* The surety was granted in relation to contracts executed by Budimex SA.
Differences between forecast and actual financial results of the Budimex Group
The Budimex Group did not publish any financial forecasts for 2023.
Utilization of proceeds from issues of securities
In the period covered by the report, no securities were issued either within or outside the Budimex Group.
[1] Items that do not include amounts of lease liabilities reported in accordance with IFRS 16.
STRUCTURE OF SALES REVENUES OF THE BUDIMEX GROUP
Sales of the construction segment
In 2023, the construction market in Poland (measured by the value of sales of construction and assembly production) increased, according to the Central Statistical Office, by nearly 15.4%compared to 2022. A strong increase was recorded in both the infrastructure construction area (+24.1%) and the general construction sector (+6.5%). In contrast, the residential construction segment saw a slowdown in activity (-6.8%). At the same time, there was an increase in non-residential construction activity (+15.0%), driven by improvements within the construction of commercial, industrial and warehouse buildings.
STRUCTURE OF SALES REVENUES OF BUDIMEX SA
[1] The description of business activities does not cover all activities of the Budimex Group in Germany.
General market conditions
According to a preliminary estimate, gross domestic product (GDP) in 2023 was higher by 0.2% in real terms compared with 2022, versus an increase by 5.3% in 2022 (at constant previous year’s prices). The full-year estimates show that the recovery is proceeding slowly, despite the presence of disinflationary developments. The Central Statistical Office reported that the average annual total consumer price index in 2023 was 11.4%, compared to 14.4% the year before. The final months of 2023 saw a normalization of price processes, as evidenced by December’s inflation reading of 6.2%.
In 2023, the registered unemployment rate in Poland was relatively flat compared to the previous year as evidenced by a slight decrease of 0.1 percentage points from 5.2% in December 2022 to 5.1% in December 2023. Average monthly remuneration in the economy increased by 9.6% year-on-year and exceeded PLN 8 thousand for the first time ever. In the construction industry alone, average wages rose by 6.3% year-on-year, with higher increases of 10.4% and 10.3% in engineering and specialized construction, respectively, and lower in building construction, which had a negative growth rate of 1.5%.
Gross fixed capital formation in 2023 increased by 8% year-on-year, compared with an increase by 4.9% in 2022. The investment rate in the national economy (the ratio of gross fixed capital formation to gross domestic product in current prices) in 2023 was 17.4% compared with 16.8% in 2022.
At the end of 2023, the construction business climate index was -13.2 percentage points, which suggests that more companies in the sector (20.5%) expect the industry to see a deterioration in business conditions rather than an improvement (7.4%). According to the CSO’s surveys, construction companies are experiencing a year-on-year improvement in raw material issues, with 6.1% of respondents perceiving a shortage of materials at the end of December 2023 (compared to 12.3% a year earlier) and 57.6% perceiving material costs (compared to 73.5% a year earlier) as market barriers. The trends are confirmed by the price indices for construction and assembly production, which increased by 10.2% over the year, while since the beginning of January 2023 they have exhibited decreasing dynamics, with prices going up by 7.5% in December 2023 alone. According to construction businesses, the biggest challenge for the industry is the cost of labor, which was identified by 70.2% of the companies surveyed as a barrier to the sector.
According to data from the Central Statistical Office, construction and assembly output (at constant prices) delivered in Poland by construction businesses employing more than nine people was 5% higher in 2023 than in 2022. Building construction was the only construction segment to show negative year-on-year growth of -1.3%, although it should be noted that the last quarter was characterized by a recovery, with an increase of 13.4% witnessed in December alone. The other construction sectors – civil engineering and specialized construction – were characterized by increases in constant prices of 11.3% and 2.7% respectively in 2023.
The environment of low level interest rates (and therefore a low cost of capital) observed in recent years, which was favorable for the construction market, was replaced by the reality of higher interest rates. A series of increases by the MPC pushed the reference rate to 5.75% in October 2023. The market does not expect a significant reduction in the interest rate trajectory in 2024, which is likely to continue to reduce the potential for debt-backed investment. Despite the high level of interest rates, residential construction in the ten largest cities was characterized by year-on-year increases of nearly 69% in the number of residential units sold. The reason for the increases can be attributed to the introduction of the government’s Safe 2% Loan program, which has increased the number of loan applications by leaps and bounds – rising from 214 thousand loan applications in 2022 to 365 thousand applications in 2023. Ultimately, this resulted in an upturn in residential construction, but it also produced an imbalance between demand and supply in individual metropolitan areas, which led to a negative balance of residential units on offer.
Market development prospects
Poland stands out among the countries of Central and Eastern Europe as a country with potential for GDP recovery, owing to fiscal loosening but also to the impact of inflows from the European Union and a slight potential for interest rate cuts in 2024. The expected decline in inflation is expected to be driven by the reversal of the trend of external price shocks and the strengthening of the domestic currency. According to projections by the Polish Economic Institute (PIE) published in January 2024, the domestic economy will emerge from a period of slowdown and grow by 2.3% in 2024 and 3.5% in 2025. The recovery trend in economic growth is also signalled by the Ministry of Finance and the projections of domestic commercial banks.
Recovery of GDP is expected to be driven mainly by private consumption boosted by an increase in real household disposable income. At the same time, macroeconomic forecasts suggest a deceleration in investment and a deterioration in the effect of the balance of trade with foreign partners. Investment is set to decelerate from 6.7% in 2023 to 1.2% in 2024, driven by both the economic slowdown in Europe and a decline in local government investment volumes – mainly due to the stoppages caused by the change in the outlook for cohesion funds from the European Union. Any support for funding from the National Recovery Plan (NRP) should only be noticeable in 2025, as project implementation anticipates the largest outlays to be made in a period of a dozen or so months after the launch of the initiative.
The PIE forecasts average CPI inflation of 5.1% in 2024, which would sustain the downward trend observed in 2023, but at a much lower rate. Inflation expectations among companies are still high and, according to the CSO Business Survey, the number of companies declaring price increases is still higher compared to the peak of the cycle before the COVID-19 pandemic in 2018–2019. In addition, expectations of price increases will be boosted by energy prices – the reinstatement of market prices and the expiry of the energy price freeze legislation at the end of June 2024. The continuing elevated inflation rate will also be driven by the increase in the minimum wage and the reinstatement of VAT on food from 1 April 2024.
In December 2022, the European Commission (EC) approved all Polish Cohesion Policy programs for 2021–2027, agreed on the basis of the Partnership Agreement developed. Poland remains the largest beneficiary of the Cohesion Policy, with EU contributions of EUR 76 billion. All national programs and 16 regional programs for Poland have been approved. EUR 24.2 billion has been allocated to the FEnIKS program, compared to EUR 27.4 billion under the previous financial perspective. The expected scale of assistance in the area of infrastructure projects should ensure that EU funds will continue to play a significant role in the growth of the Polish construction sector in the coming years. The forthcoming budgetary perspective will be the first in which railway projects will have priority over road projects. The support for infrastructure projects under the Connecting Europe Facility (CEF) competitive instrument will also be important.
The last months of 2023 saw visible progress in terms of access to EU funds. In November, the European Commission (EC) approved a modified NRP budget, increasing the amount of funds linked to the REPowerEU program. The effect of the EC’s move is that 20% of REPowerEU funds can be pre-financed without the need to meet milestones – Poland has already received EUR 5 billion in pre-financing, which is important in the context of the reduction of the remaining EU funds in 2024.
The revised National Recovery Plan envisages the disbursement of EUR 59.8 billion, including EUR 25.3 billion in grants and EUR 34.5 billion in preferential loans. In line with EU targets, a significant proportion of the funding will be allocated to climate-related objectives (46.6%) and digital transformation (21.4%). In addition, at the beginning of 2024, Poland fulfilled the last three conditions necessary for the release of structural funds totaling EUR 76 billion. The structural funds include the Cohesion Fund, the European Regional Development Fund, the European Social Fund, the European Agricultural Fund for Rural Development, and the European Maritime and Fisheries Fund. According to economists’ calculations, Poland will receive a net 1.3% of GDP in grants and up to 2.7% of GDP in 2024 from EU funds, when loans are taken into account.
In 2023, the Polish construction market continued to suffer the consequences of the challenges caused by the difficult geopolitical situation. The price shocks experienced in previous years and the market’s continued anticipation of the release of EU funds have influenced further delays in the public procurement market. However, despite the demands of the market, the General Directorate for National Roads and Motorways (GDDKiA) has once again ensured the stability of the tenders announced and the dialogue on the indexation mechanism. The projected expenditure by the main contracting authority in the road market was around PLN 15 billion, the second highest figure in the last six years. In 2023, GDDKiA signed sixteen contracts for tasks with a total length of 216 kilometers and a value of around PLN 8.6 billion (against twenty-four contracts in 2022 with a length of 333.4 kilometers). The value of tenders announced increased year-on-year to forty-two sections with a total length of 530.6 kilometers (compared to twenty tenders with a total length of 226.8 kilometers in 2022). In addition, in 2023, GDDKiA finalized the signing of indexation annexes with a 15% indexation cap for ninety-seven contracts with twenty-three contractors – responding to the significant increase in contractors’ expenses resulting from the effects of Russia’s aggression against Ukraine in 2022.
In December 2023, the contracting authority signed the first contracts for EU funding under the European Funds for Infrastructure Climate, Environment (FEnIKS) program. As part of the EU-funded projects, more than 2,127 kilometers of national roads (including around 158 kilometers of motorways and 1,765 kilometers of motorways) are scheduled to be constructed. As of the end of 2023, 1,298 kilometers of national roads are under construction, another 507 kilometers are in tender proceedings and 3,306 kilometers are currently in the pipeline. The Government’s National Road Construction Program until 2030 (with an outlook until 2033), updated in 2022, with a total value of PLN 294.4 billion, accounts for most of the investment. The remaining investment will be implemented under the Program for the Construction of 100 bypasses, worth PLN 28.1 billion. In 2024, GDDKiA intends to announce tenders for 215 kilometers, of which 92.2 kilometers relate to roads under the Government’s National Road Construction Program until 2030 and 122.5 kilometers to the Program for the construction of 100 bypasses. In addition, following the replacement of executives at the main contracting authorities in the road and rail markets, the timetables for the signing of announced tenders and the publication of new tenders are expected to be extended. Consequently, this may affect the short-term supply of contracts, but the long-term outlook remains invariably optimistic.
The rail market faced another year of funding problems due to the prolonged wait for EU funds. As a consequence, the period for signing contracts for previously announced tenders was extended. PKP PLK signed nine contracts in 2023 for tenders announced back in 2022, and what is more, two of the tenders from this period are still pending. The main contracting authority has published further tenders worth more than PLN 11 billion in 2023, with five contracts worth around PLN 1.5 billion already signed. From a market perspective, it should be mentioned that at its meeting on 16 August 2023, the Council of Ministers adopted a resolution submitted by the Minister of Infrastructure on the establishment of the National Railway Program until 2030 (with an outlook until 2033). The total value of the National Railway Program 2030 is PLN 170 billion, including PLN 79 billion for the 2014–2020 perspective, PLN 80 billion for the 2021–2027 perspective and PLN 11 billion for the NRP. Some of the funds were pre-financed by the Polish Development Fund (PFR) at the end of 2023. Additional support for investment in the railway market is provided by the Local and Regional Railway Infrastructure Completion Program – Rail + until 2029, worth PLN 13.2 billion, and plans for the construction of 1,800 kilometers of railway lines by 2034 as part of the Solidarity Transport Hub Poland.
Another key project necessary for Poland’s proper energy transition is PSE’s investments. The updated program includes investments in electricity grids, which are expected to amount to nearly PLN 62 billion by 2036. The program includes, among others, the construction of 5,225 kilometers of 400 kV line tracks; 27 new substations and 775 kilometers of direct current lines. Investment objectives selected by PSE include: power evacuation from Polish offshore wind farms in the Baltic Sea; power evacuation from nuclear power plants; integration of onshore RES sources into the NPS; connection of new stable generation sources and energy storage facilities; increasing the potential of the national grid to transport energy through Poland as a transit hub; supplying electricity to new industrial customers; including in special economic zones; supporting the development of electromobility and electrification of the heating sector; and supplying power to the Solidarity Transport Hub Poland, including high-speed rail.
Poland is currently in the process of phasing out its oldest coal-fired power units. The efforts of energy companies are focused on implementing projects geared towards climate neutrality. Among other things, PGE is in the process of preparing a project for the largest offshore wind farm in the Baltic Sea and is working on the construction of two CCGT units at the Dolna Odra power plant. Another important development in the energy sector was the merger of Orlen, Lotos and PGNIG. The establishment of a multi-energy company is an unprecedented event in the domestic market that may change the balance of power on the map of Europe’s energy interests.
At the end of 2023, the Rybnik Power Plant’s two coal-fired power – units No. 3 and 4 – were shut down. These will be replaced by an 882 MW gas-fired unit at this plant. The net value of this investment is approximately PLN 4 billion.
In 2023, planning and preparatory work progressed on the Solidarity Transport Hub Poland project (CPK). Advanced design work included the airport terminal, railway station, runways, air traffic control tower and more than 450 kilometers of railway, including the section between Warsaw and Łódź. Of the almost 2,000 kilometers of lines the company plans to build, investor options have been selected and mileage consulted for more than 600 kilometers – these are the following sections: Warsaw – CPK – Łódź, Łódź – Wrocław, Sieradz – Poznań, Łętownia – Rzeszów and Katowice – Ostrava. Of those listed, design is underway for more than 450 kilometers. In addition, CPK has selected the French-Australian consortium of Vinci and IFM as a strategic investor in the proceedings. The estimated total amount needed for the airport part of the investment is around PLN 41 billion, of which more than PLN 32 billion is to be provided by contributions from private investors and debt financing. CPK has signed agreements for the design of the Warsaw – Łódź line, which will be the first section of the High Speed Railway (HSR) in Poland. The contractors were selected as part of the largest framework agreement for this type of service in Europe. Some rail projects are envisaged to be implemented under the Public-Private Partnership (PPP) formula.
A contract has also been signed with the designer of the passenger terminal and railway station (the so-called master architect) the Foster + Partners and Buro Happold consortium, and with the Master Civil Engineer (MCE), Dar Al-Handasah, a Lebanese company that has been involved in the design of airports in Doha, Dubai and Chicago, among other places. In addition, 13 companies and consortia have been selected with whom CPK will sign a framework agreement, as part of the first tender for the design of support facilities (SIE – Support Infrastructure Engineer).
CPK has already secured a total of more than PLN 400 million in EU funding from the CEF Connecting Europe Facility.
This year, the European Commission granted CPK funding of around PLN 300 million for the construction project of the strategic HSR line between Warsaw and Łódź. The company plans to apply for further funding. In the current round of the CEF program, it will apply for grants totalling at least PLN 1.7 billion.
Port investments are another important pillar of Poland’s infrastructural development. In autumn 2019, the Council of Ministers adopted a resolution identifying key investments for the program called: “Program for the development of Polish seaports until 2030.” Implementation of the program will ensure the efficient functioning and development of Polish seaports and contribute to utilizing their full potential. The implementation of the investments indicated in the program is extremely important for the further dynamic development of the ports and for maintaining and strengthening their position among European ports. The value of the program until 2030 has been estimated at around PLN 30 billion.
Projects currently underway include the upgrade and deepening of the Świnoujście-Szczecin waterway to a depth of 12.5 meters at a cost of almost PLN 2 billion; the upgrade of the protective breakwater system in the Northern Port in Gdańsk at a cost of almost PLN 800 million; the deepening of the approach fairway and internal basins and the reconstruction of quays in the Port of Gdynia at a cost of almost PLN 600 million, and the construction of a protective breakwater in the Port of Gdańsk at a cost of PLN 850 million. The program was prepared with a view to implementing the “Strategy for Responsible Development until 2020 (with an outlook until 2030).”
Budimex SA remains interested in implementing projects under the public-private partnership (PPP) formula. There are still very few PPP tenders for high-value projects on the Polish market.
The Polish electricity market offers good prospects from the point of view of investing in green generation assets.
In 2022, the annual demand for electricity in the Polish electricity system is approximately 174 TWh and 55 GW of installed generation capacity. Currently, Poland has the fifth largest annual electricity demand in Europe, which is largely covered by coal-fired sources. Low-carbon electricity generation accounts for 23% of total output. Over the next decade, Poland will face the challenge of ensuring sufficient generation capacity as coal-fired power plants are being phased out. The main goals and objectives of Poland’s energy development are set out in the “Poland’s Energy Policy until 2040,” which is currently being updated. According to government announcements, a draft of the new document will be prepared by the end of this year. Unofficial information suggests that the share of RES in the energy mix will be higher than originally assumed. The document from 2019 provided for, among other things, an increase in installed photovoltaic capacity to around 10–16 GW (2040), the installation of offshore wind farms with a total capacity of 11 GW by 2040 and an increase in the share of RES in all sectors and technologies by at least 23% (2030). The expansion of the market will be further boosted by the investment program of the Polskie Sieci Przesyłowe (PSE) and investments under the National Recovery Program.
The Budimex Group is scouting for further projects to acquire and is working towards the organic development of such plants through a long-term development process.
Between 2022 and 2023, the Budimex Group entered the electromobility business. Budimex Mobility SA’s network of electric car chargers has already exceeded 160 stations. The company is among the top 5 players in the market. The electromobility market in Poland is at an early stage of development. Charging station operators are focused on securing attractive locations, whose purchase will pay off as a result of successive improvements in market utilization. According to estimates by the PSPA, annual sales of electric vehicles (BEVs) in Poland will increase from 14,425 in 2023 to more than 0.5 million cars per year in 2040. The network of charging points will be expanded dozens of times during this period, from 6,639 points in 2023 to nearly 176,000 points in 2040.
Another promising market for the Budimex Group is the waste management and infrastructure maintenance segment. Since 2012, these markets have been developed by FBSerwis Group companies.
The waste management sector in Poland deviates from Western European standards and requires major changes, in line with the trend of promoting a circular economy. Various legal regulations are being introduced at both national and EU level, forcing municipalities and producers to reduce waste generation and bear the costs of waste disposal. Thermal treatment and landfilling are the least promoted waste disposal options in the EU. In recent years, along with economic growth, the amount of municipal waste in Poland has been gradually increasing. In 2022, 13.4 million tons of waste were produced. Due to the decline in coal mining, a different trend was observed in the case of industrial waste, with over 115 million tons generated in 2022, i.e., significantly less than even 10 years ago. A major problem for the industry is the so-called “grey market.” It is estimated that around 30% of waste in Poland is managed outside the system. For comparison, the same indicator in Western European countries stands at about 5%. In the long term, recycling and reuse of waste as a raw material should be the primary means of “disposing” of waste. If this happens, the amount of mixed waste, and thus the production of the calorific fraction of waste, should decline. This trend will set the stage for further market development. The level of recycling in Poland (30–40%) is far from the figures observed in other countries: Germany (around 70%), Austria (60%), Italy (50–60%) or Norway and Sweden (50%). This percentage has been increasing in Poland to a small extent in recent years, with the main reason being the insufficient level of funding for raw material recovery by producers of packaged goods.
The FBSerwis Group is active in the infrastructure maintenance industry, mainly with regard to the national and local road network. As a result of the successive implementation of the National Road and Motorway Construction Program, the length of expressways and motorways has increased to more than 5,000 kilometers in recent years. The target network is expected to be over 8,000 kilometers. Over time, the emphasis will shift from road construction to road maintenance and repair.
The same trends will be observed at the local level, where the expansion of the road network is supported by programs such as: the New Deal or the Program for Strengthening the National Road Network.
Railroad construction
Equipment services
Manufacturing of steel structures
The company’s core business areas include prefabrication, supply and assembly of steel structures, and the provision of design services. The backbone of the company is the steel structure plants located in Kraków and Kleszczów, and from May 2023, also the Konstalex plant in Radomsko, which deals with heavy structures, mainly steel bridges. The company’s total production potential exceeds 18,000 tons per year. Deliveries of structures are made, among others, for industrial, bridge and environmental facilities.
Industrial projects
The company is a designer and general contractor of steel structures for the construction of logistics centers, warehouses, and industrial and power facilities, among others. It has established teams responsible for developing its modular construction offerings and implementing multi-level steel system parking facilities.
Waste management
The FBSerwis Group companies offer a full catalogue of services in the area of municipal and industrial waste management, including collecting and transporting waste, managing waste processing facilities and landfills. In addition, they post employees to handle processes at customer sites, and advise on waste management and legal requirements in the environmental area. They perform tasks related to the maintenance of green areas and cleaning in cities and municipalities. The FBSerwis Group’s operations are complemented by Circular Construction SA, whose business activities focuses on the collection, storage and processing of waste. The company specializes in the recycling of building materials.
Comprehensive road infrastructure maintenance services
The FBSerwis Group provides comprehensive summer and winter maintenance services for roads, engineering structures and outdoor areas, taking care of their proper condition, passability, cleanliness and appearance as well as maintenance of horizontal and vertical road signs and traffic lights, etc. It also performs construction work and temporary signage for road works and events.
Lighting infrastructure management
FBSerwis performs comprehensive lighting modernization projects – from the system design stage, through obtaining construction permits and executing the works, to ongoing maintenance, and warranty and post-warranty repairs.
Technical building maintenance
The company provides technical maintenance and upkeep services for building installations, fit-out services, i.e. comprehensive development of building space, cleaning and green space maintenance services as well as providing administrative and security services for facilities. In addition, it performs energy audits, and reviews of energy consumption with an indication of achievable savings.
In addition, the Budimex Group is active in renewable energy production and the development of electromobility infrastructure, as described in more detail in Section 7.4. The company’s activity in foreign markets is presented in Section 7.3.
[1] By February 1, 2024. Under the name of the Equipment Services Division.
