Taking risks is an inherent part of doing business. Risk management is therefore an essential part of the Heijmans culture, corporate governance, strategy development and operational and financial management. Heijmans is prepared to take certain risks associated with the performance of our core activities, as defined by the Executive Board in consultation with the group board and under the supervision of the Supervisory Board. These limits ensure that the actions of one person do not lead to disproportionate risks or missed opportunities for the entire company. Heijmans’ risk management is designed to provide reasonable assurance that Heijmans achieves its objectives by integrating management controls in day-to-day operations, ensuring compliance with legal requirements and the integrity of the company’s financial reporting and related disclosures. Heijmans’ risk framework is in line with the Dutch Corporate Governance Code.
We face risks and uncertainties due to external and internal developments, such as geopolitical circumstances in the field of energy and the availability of qualified workers, materials and products, as well as increasing regulations related to nitrogen and other emissions, and their impact on nature and the living environment. At the end of 2022, we also saw the cancellation of the construction exemption related to nitrogen emissions. In 2023, we saw a further destabilisation of geopolitical conditions and an increase in the effects of global warming. Risks are becoming more complex and increasingly interconnected and can therefore have a greater impact when they occur. On top of this, in the Netherlands we are seeing a rise in citizen involvement in social issues (including pollution of the living environment), a shifting and fragmentation of the political landscape and social pressure for sustainable and socially responsible business practices.
The transition of the sector is marked by a growing focus on sustainability, technology and digitalisation, the scarcity of personnel and materials, and rising cybercrime. To keep up with the dynamics and rapid developments in the construction world, Heijmans is developing new initiatives internally and making investments in the fields of sustainability, industrialisation and digitalisation. We are committed to sustainable, long-term value creation. These developments are creating opportunities, but also bring new risks and therefore impact our risk profile and risk appetite.
To remain in control, it is important to keep our risk taking at a manageable level. Heijmans has set up a risk management process to manage these risks and seize opportunities. Our risk management contributes integrally to the realisation of our strategic ambitions and the achievement of our goals, and by doing so determines the success of our company.
