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