4.1. Environmental impact management, 4.1.8. Building awareness in the area of environmental protection (E), Environmental responsibility

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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:

The campaign “Autumn under the sign of ESG” – In October and November 2023 Budimex SA held a training session open to all staff. The course, consisting of five modules, was conducted by specialists from the CMS law firm and the ESG manager. During the meetings. participants were able to expand their knowledge of ESG regulations for the construction sector, the EU Taxonomy and technical eligibility criteria, as well as other issues relevant to sustainability reporting. A total of 613 employees at various levels of the organization took part in the training in both on-site and online formats.
Welcome to the Group – as part of a training program for newly hired employees, key ESG issues of particular importance to the Budimex Group were presented and discussed. A total of 192 people were trained.
“Waste management” – employees participated in a series of training sessions on environmentally safe and compliant waste management at construction sites, with emphasis on the importance and benefits of recycling processes. 139 people were trained in waste management.
“EMAS Environmental Management System” – as part of the project, a series of training courses was conducted to introduce employees to the European Eco-Management and Audit Scheme and expand knowledge of the internal audit function in accordance with EMAS requirements. A total of 258 people were trained.

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:

Teams participating in the construction of the Oświęcim bypass took part in the initiative “Recycling Turns Us On” to clean up the space of the town together with other committed people,
As part of the “Eco-Grant for Volunteering” campaign, Budimex Group employees were able to obtain funding to implement their ideas for environmental activities. The initiative resulted in 3 events carried out by 13 volunteers thanks to the support of PLN 36,000,
As the title partner of the “StomilLOVE Budimex Cleaning of Olsztyn Sports Grounds” project, together with the players of the Stomil Olsztyn Football Club, the coaching staff and fans, the Budimex SA contract team went on a joint walk to clean up the green areas around the city,
The FBSerwis Lower Silesia team invited students from four elementary schools in the Radków municipality and the rest of the local community to collect waste from the municipality. Together they managed to collect more than a ton of waste,
A representation of Budimex SA’s ESG, Quality and Environmental Protection Department [1] planted 2,300 pine trees in the Celestynów Forest District. More than 500 flowers and shrubs were distributed near the Budimex Group headquarters in Kraków. In addition, in conjunction with the Urban Greenery Board, lilacs were planted on the empty areas under the flyover, built by the company, connecting Zabłocie and Krzemionki stations,
Nesting boxes for birds have been installed on the premises of the Steel Construction Plant in Kleszczów, belonging to Mostostal Kraków SA, which will be surrounded by flower meadows,
The company’s headquarters located in Warsaw organized a collection of waste paper and electro-waste from construction sites operated by Budimex SA and nearby offices. Those donating waste received potted flowers in return,
FBSerwis specialists published an article and instructional video on the intranet with tips on how to properly separate waste and develop environmentally friendly daily habits,
In two editions, in the spring and autumn, the “Greenery Stop 2023” campaign was organized, addressed to housing communities and cooperatives in the Warsaw districts of Mokotów and Wilanów, located closest to the tramway route being built by Budimex SA. As part of the project, 280 trees were planted in 34 communities/cooperatives. Three neighborhood picnics were also held, attended by more than 500 people.

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:

“Let’s be EKO for Wrocław” contest aimed at students of Wrocław’s primary schools, for which more than 200 works (posters and spots/videos) were submitted,
beekeeping workshops for children in Kamieńsk and Gorzędowo, during which the children learned about the important function bees play in nature. FBSerwis Group companies take care of their own little apiary in Kamieńsk. which produces approx. 50 liters of honey per year, and thus contribute to the preservation of biodiversity of the Radomsko county in Łódzkie voivodship,
symbolic adoption of long-eared hedgehogs from the Wrocław zoo, which aimed to draw attention to the issue of safety of wild hedgehogs living under protection in Poland,
participation in events promoting environmental protection, such as a family eco-picnic on the grounds of the Municipal Selective Waste Collection Point at Kazimierza Michalczyka Street in Wrocław, cleaning up the world on Earth Day in partnership with the municipality of Radków, and the organization of the 14th National Educational Eco-Picnic Pobiedziska 2023.

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.

4.1. Environmental impact management, 4.1.7. Environmentally responsible service delivery, Environmental responsibility

4.1.7. Environmentally responsible service delivery

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April 29, 2024

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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]

In 2023. we recorded a 6% increase in the total number of evaluated contractors according to the rating sheets. In addition, in 2023. We have changed our approach to reporting on the issue of social evaluation of contractors, adopting principles analogous to those for reporting on environmental evaluation of contractors, with a related adjustment to the published data for 2022.

^[1]Until February 2024 under the name of the Procurement, Quality and Environmental Protection Department.

4.1. Environmental impact management, 4.1.6. Biodiversity, Environmental responsibility

4.1.6. Biodiversity

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April 29, 2024

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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.

BUDIMEX SA

[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:

ensuring effective protection of trees and shrubs from damage or destruction during construction work,
ensuring effective protection and minimizing losses to amphibian populations during construction activities,
organization of work in the proximity of watercourses and bodies of water in order to make it safe for the aquatic environment how to perform work in the riverbed or in the basin of a lake. pond or sea. as well as on the shoreline of watercourses and bodies of water,
organization of drainage works to protect water from suspended solids emissions.

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.

BUDIMEX SA

[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:

nature reserve (4 cases),
national park (3 cases),
landscape park (6 cases),
protected landscape area (10 cases),
Natura 2000 area (29 cases),
area under plant species protection (2 cases),
area under animal species protection (1 case),
nature and landscape complex (1 case),
natural monument (1 case),
ecological land (1 case).

In 9 cases, the work was carried out in the immediate vicinity of plots of land where protected areas have been delineated:

national park (1 case),
landscape park (1 case),
protected landscape area (1 case),
Natura 2000 area (5 cases),
natural monument (1 case).

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:

implementation of the work in accordance with applicable standards in the area of environmental protection (these are described in Section 4.1.),
implementation of internal and external environmental supervision,
training for own employees and business partners,
information campaigns to build environmental awareness.

Supervision of this area in the company is exercised by the ESG, Quality and Environmental Protection Department [1].

MOSTOSTAL KRAKÓW SA

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:

Instructions for handling waste at the construction site and WKS [2],
Environmental emergencies and incidents.

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.

FBSERWIS GROUP

The FBSerwis Group strives as hard as possible to reduce the negative impact of its operations on the environment, biodiversity and local communities. To this end, it strictly adheres to the provisions of the applicable legal acts, with particular emphasis on the provisions of the Environmental Protection Law, the Waste Act, the Water Law and the related regulations, which regulate, among other things, waste storage or detailed requirements for collecting municipal waste from property owners. The group also complies with local laws.

^[1]Until February 2024 under the name of Procurement, Quality and Environmental Protection Department.

^[2]WKS – Wytwórnia Konstrukcji Stalowych (Steel Construction Plant).

4.1. Environmental impact management, 4.1.5. Greenhouse gas emissions, Environmental responsibility

4.1.5. Greenhouse gas emissions

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April 29, 2024

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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.

Direct emissions (Scope 1) arise from the combustion of fuels in stationary or mobile sources owned or controlled by the company, as well as from technological processes or escape of refrigerants into the atmosphere.
Indirect emissions (Scope 2) are related to the production of purchased electricity and heat. Scope 2 emissions are calculated using two methods. The location-based method takes into account average generation-related emission rates for specific geographic locations, while the market-based method is based on emission rates specific to energy suppliers and reflects informed choices made by the company.

Calculation methodology and assumptions made

Emissions were calculated in accordance with the GHG Protocol methodology. The calculations involved six greenhouse gases (CO₂, CH₄, N₂O, HFCs, PFCs, SF6). Emission values are given in metric tons (Mg) of carbon dioxide equivalent (CO₂e).
The volume of emissions from the generation of purchased energy according to the market-based method was calculated on the basis of indicators published by energy suppliers (where the supplier was known). For electricity from RES confirmed by guarantees of origin, an indicator equal to 0 kg CO₂e/kWh was adopted.
In the case where the heat supplier did not make the data available, the indicators were adopted in accordance with the data reported for Poland by the Energy Regulatory Office in the document Thermal Energy in Figures – 2022, Warsaw, October 2023 (also applied in the case of calculations using the location-based method).
The global warming potential (GWP) creation factors used in the calculations are in accordance with the AR5, The Fifth Assessment Report of the IPCC.
No biogenic emissions were found.
2021 was taken as the base year.

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 CO₂Emission 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, SO_2, 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.

4.1. Environmental impact management, 4.1.4. Energy Management Committee, Environmental responsibility

4.1.4. Energy Management Committee

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April 29, 2024

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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:

ESG Manager,
Infrastructure Construction Director,
Technical Director,
Administration Director,
Management Board Representative for Management Systems,
Director of Industry Construction,
Director of the Directorate of Investment and Development,
Chief Automation Specialist,
Purchasing Director.

4.1. Environmental impact management, 4.1.3. Key indicators, Environmental responsibility

4.1.3. Key indicators

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April 29, 2024

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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]

In 2023, the weight of waste generated at Budimex SA decreased by 20% compared to 2022, including a 20% decrease in the weight of non-hazardous waste and a 14% increase in the weight of hazardous waste. The increase in the amount of hazardous waste generated is due to the identification within this category of pulverized asphalt. A similar trend was observed for the Budimex Group, for which the decrease in the weight of waste generated was 14%.

Table: Waste recovered
[GRI 306-4] [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 total weight of non-hazardous and hazardous waste sent for recovery in 2023 by Budimex SA increased by 6%. Recovery was carried out through recycling (R5) and recovery (R12 and R13) processes.

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.

4.1. Environmental impact management, 4.1.2. Identification and management of ESG risks, including climate-related risks, Environmental responsibility

4.1.2. Identification and management of ESG risks, including climate-related risks

By feniksmedia on

April 29, 2024

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[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:

analysis of Budimex Group’s documentation, and specialized and industry reports,
diagnostic workshop with internal stakeholders,
expert workshop with external stakeholders,
analysis of the finished risk library and the results of the company’s 2021-2022 analysis of climate-related risks,
industry benchmark for ESG reporting on risks,
specialized consultations inside the consulting agency’s team.

As a result of the analysis, individual risks were assigned a probability of materialization according to a four-point scale:

high,
medium,
low,
very low,

and one of four levels of severity/impact:

very serious,
serious,
moderate,
minor.

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

4.1. Environmental impact management, 4.1.1. Policies and accountability, Environmental responsibility

4.1. Environmental impact management

By feniksmedia on

April 29, 2024

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4.1.1. Policies and accountability

[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:

List of wastewater and waste gas streams,
Waste stream management,
Emergency management plan,
Odor management plan,
Noise and vibration management plan,
Energy efficiency plan and energy balance register.

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:

minimizing the negative impact of the company’s operations on the environment,
efficient use of natural resources, energy and materials through energy-efficient solutions and recycled materials,
reducing the amount of waste generated, water and energy consumption, and greenhouse gas emissions.

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:

storage of hazardous waste in an environmentally safe manner,
safe handling of liquid fuels during storage and refueling of equipment and vehicles,
safe handling of hazardous substances during their storage and use,
equipping construction sites with the so-called environmental first-aid kit for the efficient elimination of small spills and leaks,
organization of works that cause dust emissions into the air,
organization of works that cause noise emissions,
organization of works that cause vibration,
organization of works performed in the riverbed or in the basin of a lake, pond or sea, as well as in the proximity of watercourses and reservoirs and on the shoreline of watercourses and reservoirs in a manner that is safe for the aquatic environment,
organization of drainage works in such a way as to protect water from suspended solids emissions,
cleaning vehicle wheels from mud and equipment contaminated with concrete, cement-lime or gypsum mixtures in a way that is safe for the water and soil environment,
ensuring effective protection of trees and shrubs from damage or destruction during construction work,
ensuring effective protection and minimizing losses to amphibian populations during construction activities,
legible and understandable labeling of waste collection sites, environmental protection infrastructure and environmental monitoring sites.

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:

the nature of the environmental impact (positive/neutral/negative),
the scale of the environmental impact,
the duration of the influence exerted,
the intensity of the impact by determining the scale of the impact,
legal requirements for the given impact,
probability of occurrence.

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:

the interaction of the construction with the environment and ways of reducing the nuisance caused by the execution of construction work, as well as an analysis of the construction environment and facilities in terms of proximity to sensitive infrastructure (e.g., schools, hospitals, residential areas), an industrial plant with an increased or high risk of industrial accidents or a plant with an increased sanitary regime – in such cases, the plan also indicates how to proceed,
the operation of social, technical and production facilities of construction sites in a way that ensures the economical use of land, the study of the possibility of the foundation of construction facilities at a given site, the appropriate protection of the site and also the restoration of the site to its original state after the completion of construction,
rules for the use of water and disposal of wastewater, taking into account the safest for the given conditions of the construction supply of water and disposal of wastewater,
rules for protection of the soil and water environment in construction works,
earthworks related to the excavation of earth masses (including contaminated ones) and indicates safeguards for the soil and water environment,
sources of waste emissions with an indication of the ways of proceeding to reduce these emissions – including ways to protect the land and water environment from the effects of waste,
sources of air emissions with identification of ways to minimize emissions,
sources of noise and vibration emissions with an indication of safeguards and ways to minimize them,
consumption of natural resources and materials, taking into account their economical use and the use of recycled materials,
rules for handling hazardous substances with an indication of safeguards,
impact on biodiversity with an indication of measures to reduce and minimize this impact,
impact on cultural heritage with an indication of measures to reduce and minimize this impact,
potential emergency situations with an indication of rescue equipment.

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:

the emission of significant amounts of construction waste in the form of unusable earth masses and demolition materials, the generation of hazardous waste and the risks associated with the generation of such waste,
waste recovery carried out on construction sites and the associated environmental opportunities in the form of a significant reduction in the amount of construction waste generated and the saving of natural resources,
air emissions from the use of combustion-powered equipment and vehicles and the operation of their own heat sources,
the activities of the production facilities of construction sites – including asphalt plants, concrete batching plants and the associated risks to the earth’s surface,
conducting work in riverbeds or reservoir basins, as well as on the shorelines of watercourses and reservoirs that result in a change in water flow and carry the risk of water pollution,
impacts on biodiversity by cutting down trees and shrubs that are in conflict with the infrastructure under construction (e.g., road or rail),
consumption of large quantities of raw materials, materials, fuels and energy.

For these aspects, a number of minimization measures have been taken to reduce their negative impact and maximize environmental gains through:

optimization of designs and balancing of earth masses (excavation/embankment),
implementing the principles of a circular economy,
application of rules pertaining to qualification and management of materials obtained in the course of works, facilitating the identification of materials, the possibility of their use and also indicating the legal aspects of such activities,
implementing documentation for the safe transfer of natural material for use by non-business entities,
determining, for each contract, prior to the start of the project, a waste management plan specifying the types of waste to be generated, the method of safe and company-approved waste collection, the method of marking collection sites and waste containers, and the method of waste management,
efficient operation of diesel-powered equipment and vehicles,
replacement of old equipment units with Stage IV and Euro 6 compliant ones,
implementing electrically powered equipment and vehicles,
allowing only operable equipment units and vehicles on construction sites,
organization of construction facilities at existing sites,
reducing losses in the tree population thanks to supervision of the works related to removal of trees and shrubs in conflict with the ongoing project, in terms of compliance with the investor’s documentation to avoid cutting down plants not intended for removal,
conducting works taking into account their specifics and the specifics of the areas in question, and ensuring appropriate environmental measures (e.g., nature supervision, checking trees and shrubs for bird and bat nests),
additional voluntary planting of vegetation, including a tree planting campaign (as part of the “Green April” campaign – more in subsection 4.1.6.).

The applicable performance standards for Budimex SA pertain to:

safe storage of hazardous waste,
safe handling of liquid fuels during storage and refueling of equipment and vehicles,
safe handling of hazardous substances during their storage and use,
equipping construction sites with an environmental emergency kit for efficient elimination of with small spills and leaks to prevent environmental pollution,
environmental labeling system, introducing clear and understandable labeling of waste collection sites, environmental protection infrastructure and environmental monitoring sites,
reducing noise and dust nuisance, among other things, when conducting waste recovery.

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:

continuously reducing the environmental impact of the company’s operations,
meeting the requirements and obligations under applicable laws and standards,
minimizing waste generation and emissions of hazardous substances,
systematically raising the environmental awareness of employees and suppliers,
conservation of natural resources by reducing waste generation and consumption of water, electricity and fuels.

The company responded to the above challenges by developing and implementing procedures, such as:

Organization and environmental management during contract performance,
Identification and qualification of environmental aspects,
Emission reporting and environmental effect monitoring,
Instruction for qualification and management of materials acquired in the course of works,
Detailed rules for recording fixed assets and low-value items – containing controlled substances,
Environmental monitoring and measurement,
Environmental emergencies and incidents.

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:

commitment to environmental protection, including prevention of emergencies and pollution, and fulfillment of compliance obligations,
continuous improvement of the quality and environmental management system to improve environmental performance,
continuous improvement of the environmental performance of the installations.

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:

control, mitigation and protection measures in connection with the generation of dust and gas emissions, odors, wastewater and noise,
monitoring and management of waste streams from receipt, through the treatment process, to final management of the treatment residue,
measures to prevent and mitigate the consequences of potential accidents that have a negative impact on the environment,
measures to monitor and reduce energy consumption.

The company responded to these challenges by developing and implementing procedures:

procedure for controlling and methods to reduce pollutants discharged into the environment in the form of gas, dust and wastewater emissions,
waste handling procedure,
emergency management plan,
odor management plan,
noise management plan,
energy efficiency plan.

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.