Materiality analysis
In 2022, we conducted a new materiality analysis. We used this to map out the topics on which the organisation has a significant impact on the economy, the environment and people. We focused this analysis on so-called materiality (not CSRD). Firstly, we identified topics that provide insight into how sustainability affects Heijmans’ financial performance. These include such things as revenue, capital, equity and reputation. Secondly, we also considered topics that offer insight into Heijmans’ impact on the environment, people and society.
We started by identifying the most important stakeholders for Heijmans. The selection of stakeholders is related to the degree of cooperation with the various stakeholder groups in the value creation model. We then drew up a shortlist of themes. We identified the material topics that are relevant to Heijmans using desk research. We took into account trends in the sector and the issues relevant to customers, investors and other players in the construction industry.
Using surveys and interviews, we entered into dialogue with stakeholders, after which we prioritised these issues and scored their relevance to Heijmans. The various dialogues always involved clients, cooperation partners, employee representatives and producers/suppliers. Finally, the Executive Board determined the outcomes. The result of this analysis is shown in the materiality matrix below.
Based on the interviews conducted with stakeholders, the themes of ‘financial health’ and ‘risk management & process improvement’ are material. However, these two themes are not the most material in the matrix, as they are not among the Top 5. From a managerial responsibility perspective, these two themes nevertheless remain high on the management agenda. The Heijmans Executive Board is aware every day of the crucial importance of risk management and financial control for the continuity of our organisation. As a project company, we therefore continue to closely manage the associated Key Performance Indicators (KPIs). Financial control is crucial for the continuity of our organisation. Chapters 12 (Results), 19 (Financial Statements) and Appendix 20.6.5 (KPI table) contain the performance indicators and explanatory notes that can be used to determine Heijmans’ financial health.
In the Dutch Ministry of Economic Affairs and Climate’s most recent Transparency Benchmark – a biennial survey of the reporting transparency of the 500 largest companies in the Netherlands – Heijmans ranked 21st in 2023. We received the highest rating in the Construction & Marine category.
Explanation of most material themes
The theme of ‘energy-neutral construction’ is important to stakeholders because new homes and other building objects have a long lifespan and therefore have an impact on climate change for a prolonged period. Energy-neutral homes also help control energy bills for end users. This aspect is measured, among other things, using the system for measuring the energy performance of buildings introduced by the government in 2021: BENG. This system has as its underlying indicator the building’s CO₂ emissions. In this report, we use the average CO₂ emissions of completed residential buildings.
The theme of ‘nature-inclusive and climate-adaptive construction’ is addressed in many ways within Heijmans. In some projects, such as dyke reinforcement or water storage, climate resilience is even the explicit goal of the assignment. We also devote attention to climate adaptivity in all other projects. For example, take the rainwater drainage of buildings. For our area developments, we use the NL Greenlabel system to substantiate the degree of nature inclusiveness.
The theme of ‘circular construction’ is one of the spearheads of Heijmans’ strategy. When designing and selecting materials for new products, we explicitly consider material choices, detachability and recyclability. In addition to initiatives in our own operations, we are also in talks with suppliers to develop circular initiatives, use alternatives to existing products and reduce the amount of packaging material in the chain.
Heijmans has embraced ‘creators of the healthy living environment’ as its ambition. This theme is our most important contribution to society. This is also recognised externally and we see this reflected in a high appreciation of this theme. Because it is a theme in which there are many new developments, we remain alert to refining our business propositions and the right performance indicators.
The ‘working safely’ theme is recognised as one of our top priorities within Heijmans. Apart from the existing SCC (Dutch: VCA) and Safety Culture Ladder certifications for the entire organisation, we have set up a large-scale safety improvement programme: the Heijmans GO! Programme. In recent years, we have developed several innovative solutions within this programme, such as the GO! App and the underlying system for reporting unsafe situations. The current programme focuses on continuing culture change in the organisation, but also on active participation in industry initiatives to improve safety throughout the chain.
Changes vis-a-vis the previous analysis
‘Future-proof construction’ is a new topic in this terminology and both management and stakeholders believe that Heijmans can make a relatively high contribution to a current social issue on this theme. ‘Human rights and working conditions in the chain’ has become more important due to emerging legislation on human rights due diligence (such as the EU Taxonomy Minimum Safeguards and the Corporate Sustainable Due Diligence (CSDDD). The use of ‘smart technology’ is no longer seen by some stakeholders as distinctive or an end in itself, but more as a means to achieve other objectives, such as profitability and sustainability. Stakeholders see ‘client-oriented services’ as a subject through which Heijmans mainly has an impact on its own relationships and business performance rather than on society at large. In recent discussions with stakeholders, they also mention the theme of ‘Water’ as an important emerging topic. This theme will also play a more prominent role in Heijmans’ new strategy and will be reflected in the new ‘double’ materiality analysis Heijmans will conduct in the spring of 2024.
In chapters 7 (Mission, Vision and Strategy) and 12 (Results), we report on the further fleshing out and performance of the material topics. These topics are also included in the ‘KPI table’ in Appendix 20.6.5 of this annual report.