Non-financial results

In 2023, we once again focused on achieving the targets we set for the end of last year. For Heijmans, its bold statements highlight the most important themes for the direction we want to move in and areas in which we want to effect real change. That is why we deliberately set these targets ambitiously. Our goal was to achieve 100% movement on all bold statements and to achieve at least half of them. They were categorised along the axes of our strategy: Better, Smarter and More sustainable. The targets set at the time expired in 2023. As expected, the realisation of these targets through to the end of 2023 was something of a mixed bag.

Better

1. We will not be satisfied until we record 0 accidents.

Last year was overshadowed by a fatal traffic accident on the Gorinchem and Waardenburg (dyke reinforcement) project, in which a subcontractor’s employee was killed. We are also disappointed with the number of accidents (involving absence or replacement work) in the past year. The number of accidents rose to 72 in 2023 from 71 in 2022. We suspect this is partly because more and more (minor) accidents are being reported by colleagues. This is a sign that our people are looking away less and behaviour is slowly changing. We continue to aim for 0 accidents.

For all our accidents (involving absenteeism), we use the 1-3-14 method, in which accidents are analysed, investigations are conducted and actions are taken on the first, third and fourteenth day. This method helps us to learn how to improve and formulate concrete improvement actions. To increase the learning effect, in 2023 we added a module to our incident registration system (IRES). In this module, the improvement actions are linked to an action owner and we run an extra check to see whether the improvement is embedded across the entire Heijmans group.

2. IF < 1 in 2023.

The IF figure increased to 3.1 Heijmans-wide (was 2.7 in 2022). While the number of accidents was similar to 2022, there were more accidents involving absenteeism where replacement work was not possible.

We will continue to monitor the IF figure and the number of accidents, but when it comes to focusing on learning from near accidents we are ready for the next phase: focus. Focus to learn and improve. To really prevent the serious accidents with (potentially) fatal or life-threatening injuries. We need to get a grip on extreme risks, because life-threatening situations still occur in our company. To this end, in 2023 we developed new policies that came into effect on 1 January 2024.

3. In 2023, the entire organisation will have reached step 4 on the Safety Ladder.

In 2023, all business units were certified at step 4 of the Safety Culture Ladder (out of 5 in total), barring recent acquisitions. However, we continue to make strides on safety. You can find more information in chapter 8.

4. In 2023, we are predictable because all larger projects (cat. 2 and 3) end within the initial bandwidth.

While projects under construction are more susceptible to fluctuations due to market conditions, projects remained predictable across the board. We see project performance improving on the whole as projects move towards completion.

5. In 2023, all projects make a positive contribution to our profit.

In 2023, despite the changed market conditions, the relative contribution of projects to profit remained at the same level. This show that all improvements we have made over past few years are now embedded robustly enough in the organisation for us to take these changed market conditions in our stride.

6. We reduce the number of colleagues who leave at their own request by 50% each year.

By 2023, the number of colleagues who left at their own request fell by a quarter in relative terms. It remains important to retain talent; this is why we devote a lot of attention to binding and engaging employees and being an attractive employer with a social face. Celebrating Heijmans’ 100th anniversary in 2023 certainly contributed to this. We analyse which groups of employees are more likely to leave Heijmans and their reasons for doing so. We deploy specific measures in response to this. For example, we have split the work package of certain groups of work planners into administrative and technical parts, enabling us to arrive at a better match of employees’ qualities and interests with the task. We have also learned that we need to supervise newcomers more intensively in the first year. We know the importance of a thorough selection and onboarding process, and stay in close contact with employees about areas for improvement. Throughout the organisation, for instance, we hold team meetings on the results of the engagement survey and we have regular check-in meetings at the individual employee level.

7. We reduce absenteeism by 5% every year.

In 2023, Heijmans had a rolling absenteeism rate of 5.1%, which was almost the same as in 2022. Although this means we did not achieve our own targets, this was about 1% lower than the average in the Netherlands for companies larger than 100 employees (6%; CBS[1]). It is also below the average for the construction industry (5.3%; CBS[1]). At Heijmans, last year we saw a slight shift from short to (extra) long absenteeism. We devoted a great deal to this with careful case management. Both healthcare professionals and managers play an important role in this and explicitly work together. At the same time, we also devote attention to prevention; for instance, this might involve adjustments to working conditions, help to increase mental resilience and vitality, sustainable employability interviews, etc.

• 1CBS figures are rolling through the third quarter 2023.

8. In 2023, we have a higher employee engagement score than in 2021.

In 2023, Heijmans conducted an employee engagement survey. In this survey, we measured what employees think is going well and what could be improved in our company. Employees attach particular importance to the relationships with each other, the appreciation they receive and attention to work-life balance. On average, people within Heijmans are (very) satisfied on these fronts. No less than 83% of employees completed the survey. Compared with 2021, the measured eNPS increased to +35 from +25. This result is also higher than the scores of other companies that carry out the same measurement in the Netherlands. In other words, we achieved this target.

Smarter

9. All the projects we work on will have a digital twin in 2023.

The use of digital twins on our projects and contracts is a prerequisite for many new and future innovations that are part of Heijmans’ renewed strategy. Moreover, there is still plenty of room for improvement in returns by ‘unbundling’ our working methods; digital construction and the deployment of digital twins enable more efficient working methods and processes. To give Heijmans-wide direction and control over the continued development of digital construction, we have revised the ambition ladder that we used up to 2023 to control the move towards working with digital twins. The new digital construction ambition ladder retains the strengths of the old ladder, but adds new values. These include a greater focus on supporting innovations with digital construction and cashing in on the value of digital construction on projects, rather than scoring digital construction applications. With the revised ladder, we ensure that digital construction makes a positive contribution to achieving several of Heijmans’ strategic objectives.

Non-residential

By 2022, we had already reached the limits of BIM development and implementation. In addition to new construction projects, digital twins, in the form of BIM models that are actively deployed, are routine in Heijmans Non-residential renovation projects. The training and refresher programmes have become part of the regular training programmes and the processes used are part of a Plan Do Check Act (PDCA) cycle, making the processes subject to a continuous improvement cycle.

In 2023, we worked on developing prototypes through to ‘minimal viable products’ (first version of the product). These enable us to sharply define the value of using digital twins and high-quality information management for us as a main contractor and for our clients. As a result, our proposition is becoming increasingly effective and we know how to make better choices in the development of related products and services.

Residential building

At Residential building, we are currently seeing an upward trend in the average number of BIM stars achieved per project. This is the main indicator of the fact that we are taking a structured approach to all projects using the BIM Focus Project approach. And more importantly, this is delivering results. Not only in terms of the number of BIM stars achieved (divided over five levels), but also in terms of the perception of the people on the projects and the financial results on those projects. Projects run more smoothly and in a more structured way, resulting in more streamlined processes and lower failure costs.

Infra

In our new-build projects, we use BIM targets with a range of ambitions that depend on the complexity of the projects. The number of projects where we build digitally has increased when compared with 2022. These days, the question more likely to be ‘how’ rather than ‘whether’ we use digital construction in our projects.

We have established a standard operating procedure with the development of the Infra Digital Construction Process. This has enabled us to integrate digital construction in our ‘1-development process’, which revolves around the controlled and integrated development of a feasible, constructible and maintainable plan that meets both the (client) requirements and the assignment. The ‘1-Development Hub’, a GeoBIM development and integration between geographic information system (GIS), 3D-BIM, 4D-BIM, provides us with support in this process from the tender phase onwards.

You can find more information in chapter 9.

10. We successfully launch five new data-driven services in the market each year.

In addition to the continued development of propositions to create new products for our customers, for example by adding new value elements to existing products and services, we developed and launched a total of fifteen new data-driven services in the Building & Technology, Infra and Property development business areas. You will find a brief of a number of examples below:

• In 2023, we worked hard to realise the first modules in the digital building platform. Within this platform, we will gradually support conceptual and industrial housing construction with digital modules from product development through to occupation.

• The Heijmans energy storage system is a smart energy storage system combined with energy management. It is intended for non-residential projects, including a spin-off for physical management and maintenance of systems. It provides immediate solutions to acute energy transition problems that clients may face. The problems may vary by market/client situation. This system has been installed and is operational at our timber-frame housing production plant in Heerenveen.

• Based on data-driven maintenance, we have broadened our portfolio to projects involving intelligent traffic control installations (iVRIs) and public lighting (OVL) in addition to monitoring Dynamic Traffic Management. Long-term management and maintenance contracts enable us to see all failures from all systems in real time and respond proactively.

• In 2023, we continued to develop two traffic management services. We continued with the development of the Travel Time Monitoring service for traffic management in the context of large-scale road works into a production-ready and therefore cybersecure solution. This service shows real-time expected and actual travel times during diversions. This enables Heijmans to make immediate traffic management adjustments to these diversions, in particular on the underlying road network. In the context of safe working along and on the road, Infra has developed the Digital Road Safety System. Colleagues can use this system to register their road works in real time with navigation software such as TomTom, Google and Waze via an in-car box. This means road users can be notified immediately if there are roadworks in their area.

11. The number of subscriptions based on data-driven services in the in-use phase increases by 50% each year.

Property Development issued 573 subscriptions to data-driven services to private buyers/users of a Heijmans property in 2022. In 2023, we did not focus on the number of subscriptions. The earning potential is marginal and this does not currently fit into our value creation thinking.

12. In 2025, we have transferred 50% of our hours – compared with 2020 – from on-site to off-site.

The shift from on-site hours to off-site hours is a measure of our planned industrialisation and standardisation. This will enable us to achieve a number of objectives related to safety, sustainable employability, the quality of delivered products and the reduction of failure costs.

In 2023, in terms of the Heijmans Woonconcept (concept houses - HWC), we remained in line with 2022 figures with 358 assembled shells. The absolute number was slightly lower because we realised five pilot projects totalling 62 homes according to the Horizon concept. In addition, we also produced elements of houses for external clients.

We also made considerable progress with our stacked concepts (apartment complexes).

In these concepts, we use prefabricated components wherever possible, produced or assembled in the production facilities of our co-makers involved in the concepts. For both the houses and the stacked products, the shell, roof and (a large part of) the façade are delivered in prefabricated form for assembly at the building site. In addition, we continuously review which other components can be prefabricated; for instance, we are running a pilot involving Horizon homes with a ready-made floor, which eliminates the need for a finishing floor, and the use of prefabricated internal walls. This also provides circular benefits: less material is needed, there is less waste and the internal walls are made of bio-based material rather than aerated concrete.

In 2023, we opened our timber-frame housing production plant. The first of a total of 88 Horizon houses produced in Heerenveen have now been placed in the ‘t Ven neighbourhood in Eindhoven.

A growing part of our production has thus shifted from on-site to off-site, both in terms of conceptual to industrial (in our own production plant), as well as for houses and stacked (apartments). This ensures a tidier construction site, lower failure costs and less nuisance for the neighbourhood.

More sustainable

13. From 2023, Heijmans is CO₂ neutral. Any residual values are offset.

If Heijmans achieves its goal of CO2-neutral production after 2023, it will meet the projected science-based target of COP21, requiring a linear reduction of CO2 emissions of over 4.2% per year. In 2023, we achieved a 13.7% reduction (scope 1 & 2) compared with 2022. We use the Green House Gas (GHG) protocol to map our footprint and also report on this annually in the GHG report. This protocol addresses scope 1, 2 and 3 emissions. For more details on GHG emissions (scope 1, 2 and 3), please see the Climate appendix.

14. In 2023, we can produce emissions free, and in 2030 we do so for all our projects.

We have made considerable progress in CO₂ reduction, and we will continue with these efforts. An increasing number of clients are demanding the use of sustainable equipment. Public sector bodies are also tightening their policies related to emissions from inner-city construction.

Emission-free production is primarily about replacing used combustion engines from our equipment with electric motors. These can then be powered by batteries or, for example, by hydrogen. This will prevent any nitrogen or particulates emissions as a result of combustion. The most important measures on this front are the electrification of the vehicle fleet and the investment programme for the electrification of our equipment. We invest in equipment in consultation with our suppliers. On this front, the producers of smaller equipment are switching to all-electric more quickly, while we are seeing innovations in large-scale equipment. From 2023, we will only have new leases for electric passenger vehicles and existing lease contracts will be shortened. The equipment investment programme has now led to the purchase of electric equipment, from small (vibrating plates, forklifts) to large (crawler excavators, asphalt finishing machines, cable cranes).

15. In 2023, we can deliver 100% energy-neutral solutions for our clients.

We have seen an increase in the number of clients requesting energy-neutral solutions. We offer active solutions to fulfil this need, both on request and unsolicited.

In addition to being a contractor that builds the infrastructure for energy suppliers, Heijmans has become a party that increasingly provides energy production. This happens at the area level with solutions for the utilisation and distribution of residual heat, thermal energy storage and energy grids. We also contribute to an energy-neutral living environment at the building level by developing energy-neutral or even energy-generating homes and buildings, solar roofs and other sustainability measures. We use data-driven solutions to offer residents and users insight into the consumption of their home or building, enabling them to make the right choices for energy-efficient solutions. This is customised work in which the client demand is generally leading. We constantly review which measures and investments have the greatest sustainable impact.

16. All our quotes include a calculation of the environmental performance.

Providing clients or principals with environmental information is increasingly becoming an integral part of contract terms. Heijmans stated ambition is to make an MPG (Environmental Performance of Buildings) calculation for all homes (in the case of houses at the start of the sales phase) from 1 January 2023. We aim for a score of ≤ 0.6. This ambition should raise awareness of the influence of material choices during the design phase. At Infra, too, we are seeing a sharp increase in the number of tenders based on ECI (Environmental Cost Indicator) calculations. You will find more information on this in chapter 10.

17. In 2021, all packaging in our construction projects is 100% reusable or recyclable.

Our main focus so far has been on recycling residual materials, such as foils, for which we achieved our 100% target in 2021. We are now looking at follow-up recycling steps using reusable materials, such as pallets and crates. In this process, we try to return the released materials to the cycle as much as possible. Secondary materials are also becoming increasingly valuable, making the reuse of materials for processing more important.

18. In 2023, all the houses we deliver to our clients will be 100% circular; in 2030 this will also apply to apartment buildings.

In the Raw Materials Agreement, the Dutch government set the goal to be fully circular by 2050, eliminating the need for primary raw materials (meaning reusing and recycling, and using renewable materials such as timber). In recent years, we have tried to get ahead of this target. In 2023, we once again reduced the material impact of our houses, by lowering the MPG (environmental performance) score, material-related CO₂ emissions and the share of primary raw materials. The bold statement of 100% circular houses has proved very ambitious, even when measured against societal benchmarks. Despite some interesting developments, such as more industrial-scale construction and the use of more bio-based materials in our products, full circularity has not (yet) proven feasible. However, we will continue to explore possibilities in the coming years. Circularity is used here partly as an instrument to continue to reduce the CO₂ footprint, especially of scope 3 emissions. You will find more information on this in chapter 10.

19. In 2023, we will use circular asphalt and concrete; in 2030, we will build 100% of our projects using these materials.

At Heijmans, the use of concrete granulate as a gravel substitute for the concrete shells of the Heijmans Woonconcept homes is one of the ways we are moving toward circular concrete. In addition, we have submitted circular concrete proposals in various tenders and projects in which secondary sand and gravel are used. A significant share of current asphalt is already circular. Any further increase is hampered by current production methods in asphalt plants. The use of carbon filters will enable a further increase in the proportion of recycled asphalt in the future.

20. From 2021, all our new area developments are awarded an NL Greenlabel A rating

Since 2018, Heijmans has been collaborating closely with NL Greenlabel, which represents a demonstrably sustainable living and working environment. The NL Gebiedslabel (area label) and NL Terreinlabel (site label) methods provide insight into the cohesive sustainability in public spaces and sites. Heijmans works with the NL Gebiedslabel method in all area developments involving the development of its own land holdings as long as the area is large enough. If the area is smaller, Heijmans uses the NL Terreinlabel (site label) method.

This allows us to include all stakeholders in our ambitions, so the focus remains on sustainability themes throughout the process. This makes cohesive sustainability an explicit part of the development process through independent monitoring/assessment. The use of the NL Greenlabel methodology creates a greater degree of obligation, allowing us to actively aim for cohesive sustainability.

The methods help us to make consciously sustainable choices and to substantiate those choices. We have fully embraced the NL Greenlabel methodology, and we are using the methods in a wide range of projects.

This table below offers an overview of the current status per project:

We also use the NL Greenlabel system when drafting anterior agreements with local authorities, like the contract for the Nieuw Boekhorst project in Voorhout.

As a result, the seven themes are already taken into account at an early stage, ensuring assurance within the overall development process. These themes are: Design Realisation & Management, Products & Materialisation, Energy & Climate, Soil & Water, Biodiversity, People & Environment and Safeguarding. For each theme, points can be scored on three components, which Heijmans is required to demonstrate. Adding up all these points results in a score between A and G, and Heijmans aims for a score of A or B in the design/realisation phase for those developments that are part of our land operations.

Finally, in 2023 we continued to work with NL Greenlabel on a Heijmans dashboard in Tygron. The Tygron Geodesign Platform combines (geo-) data, models and applications and thus provides more insight into the projects (‘parametric and generated design’). This dashboard provides support in the area labelling process, provides the developer with a lot of information about the area and provides insight into how the area will respond to new designs. In cooperation with NL Greenlabel, Heijmans maximised the alignment of this system with the EU Taxonomy in 2023.

21. In 2023, all our interventions in the built environment result in an improvement in local biodiversity, climate adaptation and safety.

In 2023, we applied climate adaptation and biodiversity initiatives in almost 30 new projects. These include our showcases in the field of property development and infrastructure projects, such as the Kazernekwartier in Venlo, where we maximise climate-adaptive and nature-inclusive construction via our Sustainable Design Principles (Dutch: DOP).

We want to make the results of our efforts measurable. To this end, we cooperate with various parties. Examples include:

• The Vijfsluizen project in Vlaardingen, where we are collaborating with the Naturalis Biodiversity Centre on soil quality.

• In Maanwijk in Leusden, we are collaborating with Earth Watch on biodiversity.

• In Parijsch Culemborg, through fieldwork by our team of in-house ecologists, we conducted research into the occupancy of installed nesting sites with positive results as a result.

• We also launched our own Smart Monitoring Biodiversity and formulated the principles of healthy soil with Wageningen University.

• We continued to develop the Nature Ladder, of which we are a co-initiator, and this was well received by several clients. In 2024, we will make this tool available to the sector as an internet tool.

• We signed up to the National Bee Strategy in 2023, as we consider it important to commit to biodiversity.

• We have also joined the Water Bank platform. We want to make knowledge available and gain new knowledge in collaboration with others. Water is a growing theme and one in which we have specialised for several years.

22. We apply our latest solutions in three projects each year, and these will then become new showcases for the healthy living environment.

We have now delivered the previously mentioned Maanwijk showcase in Leusden, but we are not finished yet. We want to remain involved for a more prolonged period in the use phase, to learn from the solutions we devised and created, and their impact on a healthy living environment. In Maanwijk, we are doing this in collaboration with a number of organisations, including the University of Utrecht, which is involved in the project through the Healthy Urban Living Knowledge Hub. The university will measure various aspects of social cohesion, as well as how our interventions do or do not contribute to this, for two years after delivery.

In 2023, we once again realised a number of showcases:

• Borg & Buiten, Parijsch Culemborg: first liberalised sector project with Horizon homes (HSB homes from the Heijmans production plant in Heerenveen). Theme: Factory-based, bio-based. In the same area, we realised a Heijmans Huismerk Apartment complex (HHA) for a housing association. Theme: affordable. Borg & Buiten’s urban plan is characterised by lots of greenery. Car ownership is discouraged and has been partly replaced by shared mobility. Second-car parking and visitor parking are clustered at the edges of the area in so-called hubs. Theme: mobility, green and blue.

• De Kuil, Rotterdam: social cohesion and circularity are the big themes here. For instance, this project makes use of ‘restklezoor’, the residual brick from which stone strips are sawn off. In terms of social cohesion, meeting in and around residential buildings is encouraged at various levels, for instance by widening galleries in combination with outdoor space.

• Karel de Grotelaan, Eindhoven: in cooperation with the Woonbedrijf housing association, we have set up a joint strategy towards the local authority. Data in area development is the bigger theme in this initiative.

Davey Ringnalda

“I think we will produce homes faster, less expensively and more sustainably. For instance, more homes will come out of the timber-frame housing production plant. That is a very efficient way of building.”