8 About the report, 8.1. How to determine the scope of the report
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.
