Climate

We are increasingly feeling the impact of climate change, and this is causing growing concern. Long periods of drought and heat stress (higher temperatures in densely built-up cities) alternate with increasingly heavy rainfall, resulting in flooding. This is why it is crucial that we continue to innovate to reduce the impact on the environment and increase the resilience of our society.

The Netherlands has committed to the targets of the Paris Climate Agreement to reduce greenhouse gas emissions. The aim is to emit 95% fewer greenhouse gases by 2050 than in 1990. As a sustainable leader, we are consciously raising the bar even higher to take on our responsibility in this challenge. We want to achieve Net Zero as early as 2040 and operate free of greenhouse gas emissions in both our direct operations and our value chain.

In this chapter, we explain how our climate ambitions and policy came about, how we continue to test them and whether our performance is on track to achieve our targets.

Impacts, risks and opportunities

When determining and scoring the impacts, risks and opportunities, we extensively consider the actual and potential impact on climate change. We screened our activities as a basis and used our greenhouse gas emissions inventory, which provides a clear picture of our impact from 2019 to the present. In addition, we also consider where we stand in relation to the targets we have set and the status of all our planned actions.

We are not yet using scenario analyses, but this will be a significant next step for us in expanding the IRO process. We plan to look at various scenarios as outlined in the likes of the reports of the Intergovernmental Panel on Climate Change (IPCC) or the Network for Greening the Financial System (NGFS).

As input for the double materiality analysis, we looked at the relevant IRO for climate by using the analysis method of the Task Force on Climate Related Financial Disclosures (TCFD). We did this on the basis of a ten-year horizon and in line with the RCP 8.5 scenario. We looked at the potential impact of physical climate risks and opportunities (chronic and acute) and climate transition risks on our activities. At this time, we have not yet used specific geospatial coordinates (NUTS, NL) to determine where activities are at risk, but this is a follow-up step, in addition to applying scenario analyses.

Physical climate risks

This is the impact of climate change on the availability of raw materials, the accessibility of building sites and the weather-proofing of projects. Our analysis examines how extreme weather conditions such as floods, heatwaves and storms can affect our business and the products we deliver.

Although climate models provide insight into the potential impact of heat waves, floods and storms, the frequency and intensity of these events in the long term remains uncertain.

Climate transition risks

This pertains to the impact of changes in legislation and regulations, such as stricter requirements in the realm of greenhouse gas emissions, and the transition to renewable energy sources.

These risks are essential to understanding how our business model must evolve to remain compliant and maintain a competitive advantage. It is uncertain how quickly new regulations on greenhouse gas emissions and sustainable building methods will be introduced, which may affect the demand for certain building materials and technologies.

Resilience analysis

We did not perform a resilience analysis of the identified risks in 2024. This is a follow-up step that we intend to take in 2025. 

Overview

Locked-in greenhouse gas emissions

Construction machinery and activities on large projects are the most important assets in significant future emissions that are fixed due to existing investments. This is why we analysed how these emissions influence our greenhouse gas emission reduction targets and potentially exacerbate transition risks.

As long as vehicles, construction machinery and equipment are purchased and used without being electrified or replaced by more sustainable alternatives, we will remain bound to a source of locked-in emissions. We are therefore investing in the transition to a fully electric machine fleet. Since 2022, our preference has been to purchase electric equipment, unless there is a valid reason to deviate from this plan.

Policy

We have developed a climate policy that focuses on both climate mitigation and climate adaptation, with the aim of limiting the impact of our business operations on the environment and making them more resilient to the effects of climate change. This policy also focuses on managing the impacts, risks and opportunities that have led to the material themes in the double materiality analysis.

By keeping a close eye on the needs and ambitions of our partners, we can align our own ambitions and strategy. This keeps us on our toes and allows us to contribute to each other's climate successes. In terms of our scope 3 emissions, this is becoming more concrete as we make agreements with our suppliers about our ambitions. We do this by having them sign a sustainability statement and by actively working together to reduce emissions.

Transition plan

We have chosen to integrate our climate transition plan into our broader climate policy. This enables us to present a more holistic picture of our climate strategy and to improve the cohesion of our reporting, in which targets, actions and performance management are interlinked. This plan is reviewed, updated and submitted to the Executive Board on an annual basis. They monitor progress and use the findings as input for a broader risk assessment and investment decision-making.

In 2024, we combined the entire climate policy, including the climate transition plan, into a single comprehensive document. In previous years, information, targets and policy regarding climate change were scattered across various business units, depending on specific needs or certification requirements. This often led to duplication of work and differences between reports. With the help of the guidelines provided by the ESRS, it is now possible for us to collect, coordinate and report everything centrally.

Climate mitigation and adaptation

In 2023, we rolled out a roadmap of climate-mitigating actions to achieve our Net Zero target. We are doing this mainly by decarbonising our end products, but also our production facilities and/or the equipment used to make these finished products. During the design phase, as well as within the ‘Water’ and ‘Biodiversity’ strategic themes, we are also working on climate-adaptive solutions. The taxonomy alignment achieved in the economic activities ‘Construction of new buildings’ and ‘Renovation of existing buildings’ represents a significant contribution to the sustainability transition in these areas.

Energy efficiency

The speed with which we are scaling up the electrification of our cars, company vehicles and equipment is having a positive impact on our ambitions related to climate change mitigation. However, this also brings with it a new challenge, namely the increasing pressure on the electricity grid and the reduced efficiency of the construction process due to the extra transport movements associated with charging the batteries on heavy equipment.

That is why we monitor our energy consumption to improve our energy efficiency performance and reduce our total energy consumption. The latter is very important, despite the use of renewable energy, because reducing energy consumption means that less energy needs to be generated overall, which can accelerate our progress towards achieving our climate targets.

The trias energetica principle is an important basis for the efficient use of energy: 

1. Minimise energy use

2. Use renewable energy

3. Use fossil fuels efficiently and offset when possible

Roll-out of renewable energy

All the electricity and gas we use comes from renewable sources, something we guarantee by greening our entire annual consumption with the purchase of Guarantees of Origin (GOs). We have taken this step to accelerate the mitigation of our climate impact.

Although we already purchase gas and electricity from renewable sources, we are simultaneously exploring the possibilities of using these directly and not offsetting them via Guarantees of Origin. We are doing this by, for example, installing solar panels on our offices and building sites.

We are also conducting research into alternative fuels such as hydrogen and have set HVO (hydrotreated vegetable oil) targets since early 2023. The latter means that we aim to use HVO fuel instead of conventional diesel in all our projects, including vehicles with so-called grey licence plates (business vehicles) and lorries. We monitor our progress towards this target via periodic reports on fuel deliveries. Our plan for 2025 is to investigate whether we can extend this initiative to our subcontractors.

Scope

Our own operations

Our climate policy applies to all of Heijmans’ operations, namely:

• All construction, infrastructure and property development activities, both new-build and renovation

• The entire design and construction process (from procurement to delivery)

• Internal business processes, such as the use of machinery on building sites and company cars for staff commuting

In addition, the policy applies to all Heijmans projects, but there may be regional deviations in the implementation.

Value chain

On the upstream front, cooperation with (sustainable) suppliers of building materials such as asphalt, concrete or steel is also part of the climate policy. On the downstream front, the policy is also aimed at Heijmans' end users and clients, for example by striving for energy-efficient homes for residents (through EPC standards, among other things) and sustainable infrastructure that takes climate adaptation into account (such as water-permeable roads).

Standards and initiatives

Our policy is in line with various international initiatives that manage the frameworks and guidelines for climate transition plans and the monitoring and management of greenhouse gases. The most important ones we have aligned ourselves with are:

• TCFD: Guidance on Metrics, Targets and Transition Plans

• GHG Protocol Corporate Accounting and Reporting Standard

• SBTi Net-Zero Standard

• CDP Technical Note: Reporting on Transition Plans

• Transform to Net Zero: Climate Transition Action Plans

• Climate Action 100+

• CO₂ Performance Ladder

The above standards largely converge on a common basis in the Greenhouse Gas Protocol. However, these standards are not set in stone and also try to differentiate themselves from each other. As a result, the comparability of the disclosed information continues to present significant challenges.

Investments in coal, oil & gas activities

We are not excluded from the benchmarks that have been established in the European Commission's delegated regulation 2020/1818, based on the Paris Agreement. In addition, we are not one of the companies listed in Article 12 d to g, and Heijmans does not invest in coal or oil and/or gas-related activities.

Targets

Heijmans' climate change targets are set for the long term (> five years), focusing on 2030 (six years) and 2040 (sixteen years). We have not formulated a target for the medium term, but have planned a moment to take stock, namely in 2027. In that year, we will evaluate our efforts and assess whether they are still sufficient to achieve our targets.

Science Based Targets initiative

During our development of greenhouse gas reduction targets, an important question arose. When will we really be doing enough to limit global warming? And how can we measure that? We have committed to the Science Based Target Initiative (SBTi) to answer these questions. This global organisation of climate scientists assesses the targets we have set and our greenhouse gas emissions inventory to see if they really go far enough to contribute to the Paris Climate Agreement target of keeping global warming below 1.5 degrees.

The Paris Climate Agreement is therefore the starting point for the SBTi. Using 1.5 degrees of warming as a basis, the SBTi calculated the world's ‘carbon budget’. In other words, the maximum level to which the greenhouse gas content in the atmosphere can rise before it leads to irreversible climate change. If nothing changes, this budget will be used up within a few years. That is why it is not only important to reduce emissions to zero in the long term, but also to immediately reduce emissions as much as possible. After all, the sooner we start, the longer we have until the carbon budget is completely used up. 

The SBTi approved our targets, substantiation, action plans and greenhouse gas emissions inventory in September 2024.

Baseline year

We have chosen 2019 as the baseline year for the formulation of our climate targets. We chose this year because the economic and construction sector situation was stable, which makes it a representative baseline. Furthermore, 2019 marks a time when our sector was already making significant progress in the areas of sustainability and innovation, without being influenced by external circumstances such as the COVID-19 pandemic. Using 2019 as a reference year enables us to monitor progress consistently and formulate realistic, measurable targets to contribute to the national and international climate targets for 2030.

In addition, we conducted an assessment to determine whether 2019 was an exceptional year in terms of weather and temperature, as this could potentially affect emissions (for example, more gas consumption in cold years). For this, we used data from the Royal Netherlands Meteorological Institute (KNMI) from the official measuring station in De Bilt. This assessment showed that 2019 was a fairly average year in terms of weather conditions, with temperatures, hours of sunshine and precipitation close to the 10-year average.

Recalculation policy

To make sure we can continue to work consistently towards our climate targets, even when business circumstances change, we have drawn up a robust and transparent recalculation policy. This policy follows the guidelines set out in the Greenhouse Gas (GHG) Protocol and supports the additional requirements of the Science Based Target initiative (SBTi).

The GHG Protocol requires organisations to recalculate their emission targets firstly in the event of significant structural changes, such as company growth or downsizing (mergers, acquisitions or demergers) that significantly affect the scale of activities and therefore emissions. They do not, however, provide an explicit definition of ‘significant’. A second reason for recalculations is methodological improvements, such as changes in data collection methods, the accuracy of emission calculations or improved measurement methods. This also applies to changes in emission factors, when the emission factors used to calculate greenhouse gas emissions change.

The SBTi recalculation policy is in line with the GHG Protocol guidelines and sets additional specifications for companies, such as ourselves, that have scientifically tested climate targets. For example, they require a minimum frequency of every five years to review the targets, even without major structural changes. This ensures that targets remain up to date with the latest climate science. It is worth mentioning here that, in line with the requirements of the CSRD, we have set an additional review moment in 2030, so that we are in line with the EU's reporting steps (2030, 2035, etc.). The SBTi also defines a threshold value for significant structural changes, in other words the aforementioned supplement to the requirement of the GHG Protocol. The SBTi requires that such a change in operating conditions leads to recalculation if the impact on the CO₂e accounting is equal to or greater than 5%.

In addition to the aforementioned policy, we also take into account that if new guidelines or benchmarks are published for specific sectors, these may also give rise to a recalculation to reflect the latest scientific insights.

Monitoring

In order to effectively monitor the progress of our objectives, we set annual targets for the following year after reviewing the objectives and greenhouse gas emissions inventory. These targets are based on linear reduction paths between the baseline year and the year for which the objective is set. They serve as milestones we can use to guide us towards our ultimate goal, but also to assess our annual performance. 

Limits

Our targets encompass all categories and emissions for which we are responsible. We are not excluding anything. We have also included land-related emissions and greenhouse gas removals through raw materials for bio-energy.

2030

Our first targets are for 2030, an important intermediate step on the way to our final target in 2040. We have set one target for scopes 1 and 2 together and a separate target for scope 3 emissions.

Heijmans is looking to reduce its absolute scope 1 and 2 emissions in 2030 by 100% compared with 2019.

We will reduce the emissions released by our direct activities to zero by implementing sustainable actions related to our vehicle fleet, equipment, offices and building sites. The main decarbonisation drivers in the reduction of our scope 1 and 2 emissions are the electrification of the vehicle fleet (fossil-free by 2026), the electrification of our company vehicles (grey, light) (fossil-free by 2029), full use of green fuels in offices and on projects, and the electrification of our equipment fleet.

In the years leading up to 2030, we want to go the extra mile in terms of taking responsibility for our impact. That is why we fully offset the emissions from our direct operations by purchasing carbon credits. We will explain this in more detail in the report.

Progress

Since 2019, we have reduced our scope 1 emissions by approximately 55%. The most significant impact we are having is via the electrification of our vehicles and equipment, but we are also greening 100% of the gas used in our offices by purchasing Guarantees of Origin (GOs). We have also already reduced our scope 2 emissions to zero by offsetting the entire amount of electricity we use in our direct activities with GOs. We are well on track to meet our target of reducing all three scopes to zero by 2030.

Heijmans is looking to reduce indirect emissions (scope 3) in 2030 by 50% compared with 2019.

In order to reduce our scope 3 emissions, we are launching a wide range of actions and studies on all the various components of our scope 3 emissions. The primary focus is summarised in the themes of ‘sustainable use of materials’ (upstream) and ‘energy-neutral buildings’ (downstream).

Another important step in the reduction of our scope 3 emissions is the construction of a new, innovative asphalt plant. This will be the most sustainable, environmentally friendly asphalt plant in Europe. Construction is expected to start in early 2025 and production will begin in 2026. Innovative techniques will ensure that production is low-emission, odour-free and virtually silent. Furthermore, the asphalt from the plant will be 100% circular. The Asfaltcentrale Lage Weide (ACLW) asphalt plant will recycle old asphalt and reuse it locally. Utrecht is a logical choice due to its central location. This will enable ACLW to quickly and efficiently fulfil a large part of the asphalt demand in the region and the rest of the Netherlands.

Progress

Since 2019, we have reduced our absolute scope 3 emissions by almost 30%, while our revenue has increased by more than 60%. The most significant impact we have had is through the construction of energy-efficient homes. As a result, we have seen a reduction in emissions in category 11, ‘Use of sold products’, our second largest scope 3 category. Category 1 ‘Purchased goods and services’, which accounts for more than half of the emissions, is increasing due to the rise in our revenue. This category is currently still predominantly based on procurement spend, so if our procurement costs go up, due to growth or even sustainable choices, the reported impact will also automatically increase.

2040

Heijmans will achieve Net Zero greenhouse gas emissions across its entire value chain in 2040

We are taking our sustainability commitment one step further. By 2040, we want to build and work in a way that has no impact on climate change. This means that our direct activities and all other activities in our chain must be free of greenhouse gas emissions. According to the SBTi definition, net zero means a reduction of at least 90% compared to the baseline year, with residual emissions to be fully offset.

We are the first Dutch construction company to aim to be net zero as early as 2040. This is ten years earlier than many other companies and the ambition the European Union set in its Climate Law.

Actions

Materiality

The first explanation we provide for each action is the material topic to which it contributes. We also state the specific target the action is linked to, the timeframe for this target and the quantity of emissions within the scope of the baseline year it is aimed at.

Specifications

To clarify where in our organisation the action should be implemented and/or have an impact, we have explicitly indicated in the table which pillar of our value chain the action will impact, which business unit will implement it and which activities the action will impact. 

We then also indicate the type of solution that the action offers, for example nature-based or technological, and the relevant decarbonisation driver. The latter is the type of action. Heijmans distinguishes between electrification, energy and equipment efficiency and product optimisation. 

Governance

A person with final responsibility is assigned to each action. This is often a member of the Executive Board or a business area director. These people are then responsible for achieving the targets that underlie the actions. In addition to this person with final responsibility, there is also always a person with operational responsibility. This is often the sustainability programme manager of the business area in which the action is being implemented, but it could also be a manager of a specific business unit. This person is responsible for the day-to-day progress of the action and reports to the person with final responsibility.

Impact

For actions that make a direct contribution to the target of reducing greenhouse gas emissions, an estimate is expected of the reduction in percentage and tonnes of CO₂e compared with the baseline year 2019. These figures are reviewed annually and recalibrated if necessary, for example when the baseline year is recalculated.

The reduction figures we cite for the actions on scope 1 emissions are determined on the basis of the share that the relevant category accounts for in the scope 1 inventory in the reporting year. For the scope 3 reduction figures, we have had to make estimates by looking at the assignment and adjusting the action accordingly.

Financing

An estimate must be reported for actions that require financial resources in operational (OpEx) or capital (CapEx) expenditure. It is important that the figures can be traced back to the relevant item in the financial statements and, where applicable, that a link is made to the EU Taxonomy. These financial resources will be reviewed annually and recalibrated if necessary.

In the case of our current package of actions, no investments or ongoing financing is required. For the actions to be successful, we will have to adjust working methods and develop new policies. Actions revolving around electrification do not require specific investments, because capital goods are only replaced when they are due for replacement.

Resources

The actions will be realised through the use of various resources. For example, we have specific roles and even dedicated teams within the organisation that are responsible for realising our ambitions on various sustainability themes and compliance with the ESRS. These roles and teams are supported by Heijmans' technological capabilities, smart IT systems and resources for data-driven decision-making and sustainability reporting. We also have operational resources that make a difference during construction, such as new processes we are developing, or the use of energy hubs and electric equipment.

Preconditions

Heijmans cannot implement every action independently and with certainty. For various actions, it is important that we get our supply chain moving or that certain sector agreements are applied. For such cases, we have defined preconditions to maintain insight into what will be required, in addition to our own resources, to successfully implement the action.

Scenario analyses

At this point in time, we are not yet using scenario analyses, but this is an important next step for us to expand the impact of our actions. We plan to look at various scenarios as outlined in the reports of the IPCC or NGFS.

New technology

If we are to reduce scope 3 emissions, we will very much need new technology to achieve our targets, such as more sustainable versions of concrete, steel and asphalt. However, completely reducing scope 1 to zero also depends on technological developments, for example in the electrification of heavy equipment.

Overview

The table below provides a simplified, concise overview of the actions that we have already started or that are still in progress in the reporting year. Complete qualitative descriptions of the actions are included in internal documents, such as the sustainability plans for the various business areas.

Energy use

High climate impact

We only operate in sectors with a high climate impact, as specified in the European Commission's NACE list of economic activities, sections A to H, and have additional reporting obligations due to our significant contribution to climate change. We are therefore expected to provide extensive insight into the amount of energy we consume, but more importantly into the various sources from which this energy is extracted.

According to reporting requirements, we also have to report separately on any energy consumption from sectors that are not classified as having a ‘high climate impact’, but there are no such sectors at Heijmans.

Calculation methodology

The report is compiled using a combination of data exports provided by our suppliers, the reading of building performance data (including energy generation) by the facilities management company and values retrieved from invoices. The sources used are the same as those used to calculate our scope 1 and 2 greenhouse gas emissions. The difference is that we convert our energy consumption to MWh rather than CO₂e.

Indicator

To keep the reports transparent and comparable, and to improve the comparability of companies' energy performances, regardless of their sector or size, each energy source is reported in MWh.

Energy mix

Energy intensity

In addition to absolute figures, we also present energy intensity figures to give a clearer picture of our efficiency and sustainability efforts. Absolute figures show how much energy we use in total, but say nothing about our production efficiency. We show the amount of energy we emit per million euros in revenue in terms of energy intensity. This makes it easier to compare our performance, regardless of revenue growth or size.

By monitoring energy intensity, we can show that we are producing more efficiently and sustainably, even if absolute consumption increases due to growth in our operations. We make the link to the total consolidated Royal Heijmans N.V. revenue figure, as reported in the consolidated statement of profit or loss, because all our operations fall within the high climate impact sector, as explained in the ‘Reporting obligation’ section.

Greenhouse gas emissions

Inventory

We have mapped out our impact on climate change by making an inventory of our greenhouse gas emissions according to the Greenhouse Gas Protocol Corporate Standard (version 2004), as well as the requirements of the SBTi and, where necessary, clarified with the scope 3 guide of the Dutch Green Building Council (DGBC).

In the GHG Protocol, the various emission flows are divided into scopes. Scope 1 includes emissions that are the result of our direct operations, such as the emissions from fuels used by our fleet of vehicles and equipment, or the gas burned to heat our offices. The emissions released during the generation of the electricity we use are an indirect result of our activities and are reported in scope 2. Finally, our scope 3 emissions include all emissions released during all activities that take place before or after our own operations (upstream and downstream). This can therefore be anything from emissions released by the concrete we purchase, for example, to emissions generated by the use of homes throughout their entire lifespan once we have completed them.

The figure below shows the different scopes and their contents.

Consolidation

For our emissions, we consolidate 100% of the greenhouse gas emissions over which we have full operational control. Given the way the construction sector operates, it is not appropriate to fully consolidate entities over which we share control with another party. Therefore, entities in which we do not have a 100% interest or control are included proportionately in the corresponding scope 1, 2 and 3 categories based on the work assignments of the associate in question. An exception to this is Asfalt.nu. This is an associate over which we have no operational control, but which is a relevant player in the value chain. The associated emissions are included in our scope 3 emissions in category 1 ‘Purchased goods and services’.

Calculation method

Each scope requires different approaches and calculation methods to obtain a thorough picture of the emissions. For example, our direct scope 1 emissions are compiled from data from our own facilities company and various external sources, such as our leasing company and the supplier of fuels for our projects. Indirect scope 2 emissions are determined based on purchased electricity, steam, heat and cooling from utilities firms and other companies. The indirect scope 3 emissions require different calculation methods for each category, ranging from calculations based on procurement spend to exact calculations at project level. The methods used are explained in more detail in the sections on the scopes below.

Global Warming Potential

One challenge in the ESRS is the requirement to report greenhouse gas emissions in accordance with the most recent report of the Intergovernmental Panel on Climate Change (IPCC), which sets out the most recent Global Warming Potential (GWP) of greenhouse gases. Most emission factor databases require time to adjust the emission factors, which means that there are no data sets available that offer an extensive set of emission factors that meet this requirement.

In addition, we believe it is important to use a consistent methodology in a given financial year, so the reported emissions remain comparable and reproducible. We have therefore decided to update the emission factors once a year, in January. Switching to a different or updated dataset in the middle of a reporting year would result in non-sequential breaks, which would make it difficult to interpret trends and monitor impactful actions. In addition, the transition to a new dataset requires extensive validation and adjustments to internal calculation models, both of which are part of a systematic and thorough approach at the start of our reporting cycle.

Recalculations

In 2024, we recalculated our figures based on the recalculation policy explained in the ‘Targets’ chapter. This was prompted by the acquisition of Van Wanrooij and the switch to a new set of emission factors. We explain exactly how these calculations were carried out for each scope in the sections below.

Scope 1

Sources

We measure our scope 1 emissions on the basis of the actual quantities of fuel purchased, which means that we include greenhouse gas emissions from stationary combustion, mobile combustion, process emissions and volatile emissions in our reporting. We have carried out this inventory according to the Greenhouse Gas Protocol Corporate Standard (version 2004), as well as the requirements of the SBTi.

Calculation methodology

Exact

Scope 1 emissions are calculated by multiplying the amount of an energy carrier by a conversion factor. These conversion factors are taken from the website www.co2emissiefactoren.nl. Every year in February, we check our conversion table and make adjustments based on the most current factors. The historical data is also adjusted retroactively at that time (including the baseline year).

Future changes

When reporting scope 1 emissions, we used the well-to-wheel (WTW) emissions of the energy carriers through 2024. However, this leads to double counting due to the reporting of our scope 3 emissions. We have therefore decided to split these emission factors between scope 1 and 3 as of 1 January 2025, to ensure that the impact components are reported in the correct categories.

From this point on, we will use the tank-to-wheel (TTW) emission factor for scope 1 emissions and the well-to-tank (WTT) emission factor for scope 3. To communicate the consequences of this change clearly and transparently, this year we will also show what the total for scope 1 looks like in the new calculation method in all relevant places. We will do this by adding a footnote to the relevant figure.

Estimates

No assumptions are made in the Heijmans company flow figures, and the full scope 1 footprint can be retrieved using exact data. Van Wanrooij's share of the scope 1 footprint in 2024 is also based on exact data. However, a full estimate has been made for all years prior to 2024 based on the figures for 2024.

Scope 2

Sources

For scope 2 emissions, we report the emissions released from all the electricity, heat, steam and cooling we purchase. We conducted this inventory according to the standard of the Greenhouse Gas Protocol Scope 2 regulations (2015 version), as well as the requirements of the SBTi. We use two approaches, starting with the location-based approach, in which we report the impact of these flows with emission factors based on the national average. In addition, we break down the emissions using a market-based method. Here we present the same underlying data, but apply an emission factor based on what we have actually purchased.

It is relevant to report these two methods side by side. The location method reflects the emissions that actually take place in the network that serves us, regardless of specific energy choices. The market-based method reflects emissions based on contractual agreements with energy suppliers (such as green energy certificates or renewable energy contracts). This enables us to demonstrate how we are actively making our energy consumption more sustainable by choosing less emission-intensive sources.

Calculation method

Exact

We use the same set of conversion factors to calculate our scope 2 footprint as we do for scope 1 emissions. Because scope 2 is reported in a market-based and location-based variant, it is worth noting that the market-based version uses an emission factor of zero (due to the fact that we only use renewable energy) and the location-based version uses the emission factor of the average Dutch grid mix.

Estimates

We do not make any assumptions in the scope 2 figures of the Heijmans business areas. The full footprint can be obtained using exact data by obtaining the amounts of purchased energy from our suppliers. It is important to note that the data for the reporting year is based on the slightly different reporting year of our suppliers. Our scope 2 location-based footprint in 2024 effectively consists of the electricity data from December 2023 through November 2024.

Van Wanrooij's share of the 2024 scope 2 footprint is partly based on exact data (for example, for cars and offices), but also partly estimated when it comes to electricity consumed on building sites. For the latter, we made an estimate by dividing the total expenditure on building site electricity by an average kWh rate. In addition, we also made a full estimate for all years prior to 2024 based on the figures for 2024.

Scope 3

We have mapped out our scope 3 impact by taking an inventory of our greenhouse gas emissions according to the Greenhouse Gas Protocol Corporate Value Chain (Scope 3) Accounting and Reporting Standard (2011 version), as well as the requirements of the SBTi and, where necessary, clarified with the scope 3 guide of the Dutch Green Building Council (DGBC).

Categories

The fifteen categories that make up scope 3 are subdivided into upstream and downstream. Not every category of scope 3 applies to Heijmans. By conducting an extensive analysis of our activities, we have determined in which categories we can measure emissions and in which we cannot. We then classified the applicable categories according to size, influence, risks and stakeholder interests. The categories that we cannot measure are explained in more detail in the next section.

Some of the categories that we can measure are very small and therefore hardly material at this time. However, we believe in the importance of taking responsibility for our total impact. Categories that now appear small or immaterial in terms of screening criteria and impact may become increasingly important in the long term. We have therefore chosen to include them in our ambitions and reporting.

Excluded

There are six scope 3 categories for Heijmans that are not applicable for our report. Heijmans does not supply any leased goods in our upstream (category 8) or downstream (category 13). As a construction company, we deliver products that are anchored at a location and are immediately suitable for use, which means that both category 9 ‘Downstream transport and distribution’ and 10 ‘Processing of delivered products’ do not play a role in our impact. Nor does category 14 ‘Franchises’ apply to us, as we do not have any franchises. Due to the nature of the associations and joint ventures a construction company enters into, it is not clear how to report category 15 ‘Investments’ in line with the GHG Protocol. We also explain this earlier in this chapter in the ‘Inventory, consolidation’ section.

Calculation methodology

Spend

Categories 1 ‘Purchased goods and services’, 2 ‘Capital goods’, 4 ‘Upstream transport’ and 5 ‘Production waste’ are calculated on the basis of spend. Spend involves exporting data from our procurement system at the supplier level, including the euros spent per product group, which is then linked to supply chain greenhouse gas emission factors from the US-EPA database. This database contains thousands of different greenhouse gas emission factors, enabling us to make links with all our procurement categories (approximately four hundred). To automate this process, we have created a one-off complete conversion table and linked it to a Power BI report that presents the spend data from the procurement system live.

The US-EPA dataset, like the other individual emission factors, is updated annually at the start of the reporting year to provide a consistent picture of our impact and progress. However, in the second half of the year under review, a completely new version was published based on a more recent IPCC Assessment Report (AR5) and therefore an updated Global Warming Potential (GWP). Although, as explained earlier in this report, we have a policy of only applying new emission factors at the start of a new reporting period, we have made an exception in this case because the differences in impact were particularly pronounced, and the old set (based on AR4) was not consistent enough with other emission factors that we use.

Because this means we do not meet the ESRS requirement to report emissions in accordance with the most recent GWP values, we intend to devote attention to this in the coming year and recalibrate our emission factors according to IPCC AR6 where possible. To facilitate this, we are switching to a robust ESG management platform that will manage the emission factors for us. If the transition to the next set of emission factors leads to significant differences in our figures, we will report on this transparently.

Our mitigation efforts are not reflected in generic data, such as spend. For example, circular concrete can be more expensive than regular concrete, so even though using it has a very positive influence on our impact, the number in our report goes up.

We therefore need more specific data to be able to manage and gain insight into the impact of our actions. Various initiatives are underway to achieve this, with the choice of methodology often depending on the activities in our business areas. Infra, for example, is approaching this challenge from the perspective of material flows by entering into dialogue with its largest suppliers of the most impactful materials. Residential Building prefers to analyse its product portfolio using BENG (near energy-neutral buildings) and MPG (environmental performance of buildings) calculations, while Non-residential building is investigating the possibility of calculating the largest projects in detail and using them as a basis for extrapolation.

Exact

We can fill in part of our scope 3 footprint using exact data. To calculate categories 3 ‘Fuel and energy’, 6 ‘Business transport’ and 7 ‘Commuting’, we collect data from Human Resources, our financial administration and the facilities department. Conversion factors can be directly linked to this data from the same set that we use to calculate our scope 1 and 2 emissions.

Category 11 ‘Consumption of sold products’ also consists partly of exact data. We calculated the 2024 figures for Heijmans Property development and Residential building by registering the energy consumption of completed homes from project-specific calculations.

Estimates and exclusions

Unfortunately, in 2024 it was not yet possible to calculate our full scope 3 footprint, including Van Wanrooij, with exact data or based on spend. Some components are estimated or extrapolated because there is insufficient data available. We explain below which estimates are used and how we obtained the data.

Van Wanrooij

For category 1 ‘Purchased goods and services’, Van Wanrooij was able to report a figure for 2024 by applying the same spend method outlined above. In order to make an estimate of category 11 ‘Consumption of sold products’ for 2024, we analysed the OPTIO housing types offered by Van Wanrooij. This yielded an average emission per housing type, taking into account the orientation options. Van Wanrooij has not provided data on the CO₂e impact associated with the number of homes sold in 2019. We estimated this by comparing the figures of Heijmans and Van Wanrooij in 2024 and extrapolating the Heijmans figure in 2019 in the same ratio over the number of homes sold by Van Wanrooij. The latter was calculated by applying a correction to the total number of homes sold for the portion that was realised in combination with other parties (15%). All other categories, and the figures for 2019 and 2023, were calculated by making estimates based on the 2024 figures, revenue ratios and scope 3 ratios of Heijmans.

Use of sold products

The part of category 11 ‘Consumption of sold products’ that cannot be retrieved using exact data is related to the emissions associated with the homes delivered in 2019 and objects that we deliver through our infrastructural and non-residential construction activities.

Non-residential properties are reported by estimating energy consumption using key figures for each type of property, such as office buildings, hospitals and data centres. These key figures are obtained either from project-specific calculations or by obtaining averages with our own research into various external sources. Activities in the area of services and renovation are left out of scope and not registered as delivered products. This is primarily because the definitions for these have not yet been properly determined, and many questions remain unanswered about when a property should be included. In addition, most of these projects involve modifications or renovations that do not affect energy consumption, such as replacing fire or security systems. We calculated the impact of 2024, as well as that of 2019 and 2023, using this method.

For the infrastructural works we have delivered, there are no project-specific calculations available that present a thorough figure for energy consumption. In addition, our ERP system does not have the option to register or retrieve numbers of products that consume energy. To estimate the impact, we had to do a back calculation by dividing a spend analysis by an average purchase price per object in a procurement category. An average energy consumption and an average lifespan were then linked to these numbers. The purchase prices, energy consumption and lifespans were retrieved through our own research in combination with the use of an AI tool when our own research did not yield any results.

End-of-life sold products

Category 12 ‘End-of-life treatment of sold products’ is currently estimated by extrapolating an average key figure from the MPG calculations across all delivered homes. No data is yet available for Infra and non-residential building and we are not yet reporting on this, but processes are underway to change that in 2025.

Total greenhouse gas emissions

Overview
The table below presents the scope totals for the baseline year 2019, 2023 and the last reporting year 2024.

* According to the new method, the scope 1 figures are calculated as 29,259 tonnes of CO₂e in 2019 and 12,142 tonnes of CO₂e in 2024. For more information, see the ‘Scope 1 - Calculation methods’ section in this chapter.
** These figures for 2019 and 2023 in this category have been changed as a result of the inclusion of Infra's emissions. See explanation in ESRS 2, ‘Reporting errors in previous years’ section.

Greenhouse gas intensity

Explanation

It is often difficult to compare absolute emissions between companies, especially if they operate in different sectors or vary greatly in size. Greenhouse gas intensity offers a standardised benchmark that makes companies comparable. It also helps to gain insight into relative performance and efficiency, even when business operations increase.

Calculation method

To calculate intensity, we divide the total emissions in CO₂e tonnes by the total of Royal Heijmans N.V.’s revenue in millions of euros. For this, see the consolidated statement of profit or loss.

Overview

Greenhouse gas removals

Policy

In Heijmans' current value chain, greenhouse gas removal takes place through biogenic storage in the biobased materials purchased (timber boards/beams, insulation) for new homes. In our reporting of this, we take into account the GHG Protocol Corporate Standard (version 2004), Product Standard (version 2011), Agriculture Guidance (version 2014), Land use, land use change, and forestry Guidance for GHG project accounting (version 2006).

In addition, we apply consensus methods for the administrative processing of greenhouse gas removals (from the EU regulatory framework for the certification of greenhouse gas removals) as soon as these become available.

Overview

In the table below, we explain which greenhouse gas removals we realised in our direct operations and in our value chain in the 2024 financial year.

Explanation per project

Offsetting with carbon credits

Policy

In our strategy, we have agreed to produce in a greenhouse gas emission-neutral manner from 2023 onwards and to reduce our direct (or scope 1) emissions to zero by 2030. The latter is one of the targets that we had assessed by the SBTi.

In the intervening period until 2030, we want to minimise the burden on the climate due to our direct emissions and have chosen to offset these by purchasing certificates from projects in which greenhouse gases are captured for the long term or fossil emissions are replaced by sustainable alternatives.

The offsetting projects meet the standards of Verified Carbon Standard (VCS) or the Gold Standard. Reliability and effectiveness are crucial for Heijmans when choosing offsetting standards. The period for which the certificates have been issued is also important, as is the fact that the projects involved originate from the European Union. For our voluntary greening, we choose renewable energy sources such as wind, solar and hydroelectric power, as well as forestry projects. In 2024, the offsetting involved 16,895 tonnes of CO₂e. We are investigating whether it is possible to purchase certificates from a project by the Dutch Forestry Commission (Staatsbosbeheer) as part of our collaboration to add value to Dutch forests.

We do not purchase credits on the basis of contractual agreements, but through separate annual purchases that we make at the end of the year. If any credits remain after offsetting, we use them to offset the following year.

When we use credits to compensate for CO₂e, the credits are withdrawn via the so-called ‘Corresponding adjustments’ system in a central database. This prevents a credit from being used multiple times.

Overview

Net Zero residual missions

Although we will not use greenhouse gas removals and offsetting certificates to achieve our goals, we do intend to use them if there are residual emissions in 2040 that we are unable to neutralise. We made this decision based on current insights to the effect that there is no guarantee that it will be possible to reduce all emissions in all categories to zero (commuting, for example).

When submitting our targets to the Science Based Target initiative, we estimated that this probably accounts for 10% of emissions in the baseline year 2019, or ~110,000 tonnes of CO₂e.

Internal carbon pricing

Heijmans has set up a system for internal CO₂e pricing. The aim of this is to create awareness of CO₂e impact, to provide an extra incentive for sustainable innovations and to distribute the costs associated with neutralising our scope 1 and 2 footprint proportionally across the company's business areas. This pricing will serve as an incentive for those in the business areas responsible for the implementation of climate policy and targets.

Depending on the estimated scope 1 and 2 CO₂e emissions of the consolidated parent company, all business units pay a CO₂e contribution to an internal fund on an annual pro rata basis. This estimate does not take into account planned actions to reduce these emissions. Scope 3 emissions and Van Wanrooij are not (yet) included in this system.

The price of one tonne of CO₂e in 2020 was determined on a one-off basis based on a study of the price of carbon credits. We did not use a direct source in this case, but we did compare prices from different providers and different types of projects that meet our requirements, after which we took an average. Since then, we have adjusted this price annually by following the trend in the price development of carbon credits and then applying a correction based on inflation.

Overview