Heijmans and the climate

At Heijmans, we believe it is important that people can live safely and comfortably in the Netherlands, also in the future. To this end, our buildings and the built environment will have to be adapted to the changing climate. We must ensure that our projects can withstand the increasingly extreme weather, flooding (subsidence) and drought (cracking of dykes and soil). This is why, depending on the environment and the type of project to be realised, we apply specific area and construction measures. We do this by, among other things, building smarter with an eye to sustainability, biodiversity and water use.

At the same time, we take our responsibility to limit global warming. For instance, we have grand ambitions to reduce emissions, not limiting ourselves to our direct emissions. We accept our responsibility and want to lead our entire chain in the transition to a positive impact on the climate.

Mapping greenhouse gases

Greenhouse Gas Protocol

Knowing where you are going starts with determining where you stand right now. At Heijmans, we have therefore mapped our CO₂e impact, by identifying our greenhouse gas emissions according to the standard of the Greenhouse Gas Protocol (GHGP). We have been doing this in full for our direct emissions for many years, but as of last year we also do this for all indirect emissions we can influence. Incidentally, greenhouse gases include not only Carbon dioxide (CO₂), but also, for instance, methane and sulphur. This is why we do not report emission figures in CO₂, but in CO₂e (CO₂ and equivalents).

In the GHGP, the various emission flows are divided into scopes. Scope 1 includes emissions that result directly from our activities, such as emissions from our vehicle fleet, our equipment or to heat our offices. The electricity we use is of course also a direct consequence of our activities. The emissions released at a power plant, during its generation, we report in our scope 2 emissions.

Our indirect emissions, or scope 3, include all emissions released from everything that takes place before or after our operations. So this ranges from the emissions released from, for example, the concrete we buy, to emissions resulting from the use of homes during their full life cycle after we have delivered them.

In 2023, our total greenhouse gas impact was 811,561 tonnes of CO₂e, which was divided across the aforementioned scopes as follows:

Scope 1 & 2

In the inventory of CO₂e emissions, we mapped the energy flows below to see where, what type of fuel is consumed and in which scope this should then be reported.

Vehicle fleet

Of all the vehicles with yellow license plates within Heijmans, about 2,866 vehicles in total, about 1,350 are now electric. Since last year, it is no longer possible to opt for a car with a combustion engine in lease contracts. As part of this drive, we have shortened current lease contracts with a duration beyond 2025 to 31 December 2025 at the latest. This will ensure that we have an all-electric fleet by 2025 at the latest. In addition, all drivers of vehicles with internal combustion engines have been asked to fill up using HVO100 whenever possible from now on. Unfortunately, the coverage of filling stations offering this is still inadequate.

Projects

At a construction company, a large proportion of CO₂e emissions take place on building sites. The main consumers on the projects are listed below.

On projects, most equipment is hired by subcontractors and CO₂e emissions do not fall within Heijmans’ scope (1 & 2). Nevertheless, the percentage contribution to the fuel consumption share on projects is approximately 28% of our CO₂e footprint.

In recent years, Heijmans has invested heavily in electric heavy equipment, both Heijmans and at our subcontractors. We welcomed the first five pieces of our own heavy equipment on our projects in 2022 and a further 20 pieces followed in 2023. In addition, we are already working with our subcontractors on emission-free projects in the road regions.

We decided that from mid-2023 we would only fill up with HVO100 on projects, regardless of whether it was calculated that way beforehand. The investment we make in this measure will immediately result in a substantial reduction in our direct emissions.

Offices

Compared to the other categories, the emissions released from the use of our offices are quite limited. This is due to the size of the impact from projects and our vehicle fleet, for example, but also due to the measures we have already taken at our offices. For instance, we install solar panels where possible and the remaining fluorescent lighting has been replaced with LEDs.

When extending current leases, we will devote extra attention to the footprint of our operations. Should an office location make a negative contribution to our sustainability ambitions, we will not hesitate to move to another, more sustainable location.

Green electricity

In 1 January 2012, Heijmans switched entirely to green electricity, which meets the stringent conditions imposed on it. We have CertiQ certificates for all our electricity consumption. As a result, our scope 2 emissions are zero.

Scope 3

Categories

The 15 categories that make up scope 3 are divided into Upstream and Downstream.

Upstream emissions, are all emissions released before the activities of Heijmans take place. Examples include emissions from machinery when mining raw materials, transport of the raw material, processing into steel, for example, machining and transport to the construction site. The eight Upstream categories can mainly be influenced by making the right material choices and through sustainable procurement.

Downstream emissions are released during, say, the use of our products, or the demolition of the delivered product when its lifetime is over. The seven categories comprising Downstream therefore take place after Heijmans’ activities have taken place. Here we mainly have an impact with smart design choices and technological innovation.

Not every scope 3 category applies to Heijmans. Through a comprehensive analysis of our activities, we have determined in which category we can measure emissions. We then classified the applicable categories by size, impact, risks and stakeholder interests.

Categories 8, 9, 10, 13, 14 and 15 do not contain measurable emissions for Heijmans and are therefore not addressed in the notes below.

The figure below shows the breakdown of scope 3 emissions.

Upstream

1. Purchase of goods and services

The purchase of goods and services category includes everything we buy on an annual basis. This ranges from material purchases, such as steel and concrete, for example, to purchasing services from subcontractors or hiring equipment. To calculate these emissions, we analysed our procurement figures. We then attached an emission factor to each procurement category and grouped them into main categories to determine a clear centre of gravity.

This is the largest of all scope 3 categories. In 2023, this category comprised a total of 481,308 tonnes of CO₂e, 63% of all scope 3 emissions.

Despite the fact that our influence on this component is fairly limited, because we are heavily dependent here on the developments that our suppliers and subcontractors go through, this is also where we have the most room to make an impact. At Heijmans, we therefore want ambitious tenders, and focus not just on price in procurement, but also on sustainability.

To realise reductions in emissions, we set specific targets for the largest procurement categories and perform material-specific chain analyses to determine how we can achieve the greatest impact. In 2023, we did this for asphalt and concrete, among other things.

2. Capital goods

In this category, we capture all emissions associated with the production and delivery of the capital goods we acquire. This includes, for example, buildings, large equipment, machines and vehicles. This primarily relates to our procurement of large equipment. These emissions from the production of a piece of equipment are reported in full directly in the year of purchase and not spread over its lifetime as in the case of depreciation.

To calculate these emissions, we analysed our procurement figures and then attached an emission factor to each procurement category.

The size of this component is limited in comparison to the other components. For example, in 2023 this category comprised 7,431 tonnes of CO₂e, about 1% of the scope 3 total. Because the electrification of our equipment is a crucial part of our scope 1 & 2 reduction plans, we need to invest heavily in the coming years and this category will increase.

The process surrounding the purchase of a piece of equipment is intensive, the costs are often high and the cooperation with suppliers and partners very important. For these reasons, we have considerable influence in such a process, but we notice that the issues surrounding emission reduction are still barely on the agenda among equipment manufacturers.

All our capital equipment purchases can be summarised in five main categories.

3. Fuel and energy-related activities

This category is similar to what we report in scope 1 & 2, but this section focuses specifically on the emissions released during the extraction, production and transport of the fuels we use. In other words, the journey between the source and the filling station where we fill up on the fuels for use, also referred to as the ‘Well-to-Tank’ part of fuel emissions.

This is a very small category, amounting to 6,259 tonnes of CO₂e in 2023, less than 1% of the scope 3 total.

Influencing this process is not possible, but we can still reduce simply by continuing to reduce our fuel use. When we have fully reduced our scope 1 & 2 emissions, this category will also be reduced to zero.

We obtain the fuel consumption figures from our suppliers, and we link this to an emission factor specifically for the ‘Well-to-Tank’ part of the fuel in question.

4 Transport and distribution (upstream)

This category includes emissions released from the transports carried out by our suppliers to deliver the goods we order to our construction sites, HUBs or workshops. To calculate these emissions, we analysed our procurement figures and then attached an emission factor to each procurement category.

In the coming year, we will work hard to draw up an inventory of the equipment used by all our subcontractors, including consumption data and exact numbers of kilometres driven. This will allow us to better identify what exactly happens in the field of transport by third parties and determine where we can have the greatest impact.

In 2023, this amounted to 43,010 tonnes of CO₂e, about 6% of the scope 3 total.

Our influence on this component is fairly limited, as we depend on the equipment deployed by our suppliers and subcontractors. Nevertheless, there are a few things we can control and influence. For instance, setting the right requirements for our suppliers and smarter procurement ourselves. We can also steer towards more efficient loading and unloading on our building sites, for instance by collecting more shipments.

However, there are risks on this front, for instance due to new legislation in urban areas imposing requirements on the number of transport movements or emissions from these movements in certain areas.

5. Production waste

We measure and report all emissions released from third-party disposal and processing of our residual flows in this category. The data in the report was retrieved using a SPEND analysis for the procurement of residue flow processing. Excluded from reporting is the soil category, as this only involves movements. The emissions generated by these final transport movements are included in the transport UP category.

The quantity measured in this category is fairly limited, amounting to 3,245 tonnes of CO₂e in 2023, about 1% of the scope 3 total.

Our influence lies primarily in separating our residual flows as well as possible, which we manage proactively. It is then up to our partners to process the waste as efficiently as possible with as few emissions as possible.

Stakeholder interest in this component is high. Residual flows are a crucial element in the transition to a circular economy, but also highly visible.

6. Business travel

This category includes emissions from transporting workers in vehicles owned or operated by third parties, such as planes, trains, buses and passenger cars.

This is a very small category, which involved 113 tonnes of CO₂e in 2023, less than 1% of the scope 3 total.

Our impact on this component is fairly limited. Almost everyone at Heijmans who regularly has business appointments outside the office drives a lease car (scope 1). In addition, shared bicycles are available at Heijmans for easy and emission-free travel to local appointments.

7. Commuting

This category includes emissions from employees’ travel to get from their homes to the workplace.

This is a very small category, amounting to 3,287 tonnes of CO₂e in 2023, less than 1% of the scope 3 total.

Downstream

11. Use of products sold

In this category, we measure the direct emissions from projects realised by Heijmans. This therefore includes the project-related energy consumption of residential and non-residential buildings. Indirect energy consumption, use-related consumption, is not included here. This also applies to consumption of infrastructure projects. For the latter, we will report consumption in 2024.

In terms of emissions per year, we report the total consumption in the year of completion for the entire lifetime of a realised object. For new houses this is a lifespan of 75 years and for utility projects a lifespan of 50 years. Renovation projects are included from € 5,000,000 and reported for a lifespan that depends on the renovation work.

This is a large category, amounting to 239,608 tonnes of CO₂e in 2023, about 35% of the scope 3 total.

We have a reasonable amount of influence on this category, as our Property Development department is directly responsible for the development of many of the homes we build. Smart design and making the right choices in terms of installations are the main ways we have an impact on the emissions we emit in the process. This is why we focus on standardisation, the application of concepts and industrial-scale production. 

12. Processing at end of life

When a realised object has to be reprocessed at the end of its life through recycling or removal, this releases emissions. In this category, we report these emissions from residential and non-residential buildings.

The quantity measured in this category is fairly limited, amounting to 4,790 tonnes of CO₂e in 2023, about 1% of the scope 3 total.

However, we also have a reasonable amount of influence on this category, as our Property Development department is directly responsible for the development of a large part of the homes we build. Smart design and making the right choices in material use are the main ways we have an impact on the emissions emitted during end-of-life processing.

Goals

Having an impact in the world requires leadership and grand ambitions. At Heijmans, we embrace this responsibility and are not afraid to set the bar high. We want to give more than we take and thus set the stage for positive climate impact. To this end, we have formulated short-term and long-term goals.

• In 2030, we are 100% CO₂e neutral in terms of direct emissions (scope 1 & 2).
  This means no more emissions from our direct operations.
  
  

• In 2030, we want to have reduced our indirect emissions (scope 3) by 50% compared with 2019. 
  By working with our partners, using smart design and conscious procurement, we will have an impact in the chain. This is how we will reduce our indirect emissions by at least half in the next six years.
  
  

• Heijmans Net Zero in 2040.
  No emissions at Heijmans or elsewhere in our chain from our activities. That is our ambitious longer term goal.

Science-based verification

While we were developing greenhouse gas reduction targets and objectives, a key question came to mind. When are we really doing enough to limit global warming? And how do we measure that?

To this end, Heijmans has committed to the Science Based Target initiative (SBTi). This global organisation of climate scientists tests a company’s targets and GHG inventory to see whether they really contribute enough to the Paris climate agreement to keep the earth below 1.5 degrees of warming.

So the starting point of the SBTi is the Paris climate agreement. They use the 1.5 degree warming as a basis for the calculation of the world’s ‘carbon budget’. In other words, what is the maximum level the CO₂e content in the atmosphere can rise to before it leads to irreversible climate breakdown. If nothing changes, this budget will be used up within a few years. Which is why we not only need to get emissions down to zero in the long term, it is also important to reduce as many emissions as possible immediately. After all, the sooner we start doing this, the longer we have until the carbon budget is completely consumed.

Our targets, substantiation and GHG inventory have now been submitted to SBTi. In the coming months, we will undergo extensive screening and verification to get our targets approved by mid-2024.

The SBTi is looking at our plans relative to our submitted base year. After various analyses, we decided to use 2019 for this and also run a complete inventory of our emissions in that year.