Building a
sustainable
tomorrow
2
1. Message from the CEO 4
2. Value creation 6
2.1 About BAM 7
2.2 Strategy 11
3. Business performance 14
3.1 Financial performance 15
3.2 Social performance 19
3.3 Environmental performance 23
4. Risk management and governance 28
4.1 Risk management 29
4.2 Corporate governance and capital information 36
4.3 Supervisory Board and Executive Board 38
4.4 Executive Committee 41
5. Supervisory Board 42
5.1 Report of the Supervisory Board to shareholders 43
5.2 Remuneration report 50
6. Sustainability statement 60
6.1 Approach to sustainability reporting 61
6.2 Sustainability reporting principles 72
6.3 Environmental information 78
6.4 Social information 102
6.5 Governance information 112
6.6 EU taxonomy 116
6.7 Sustainability statement annex 126
7. Financial statements 130
8. Other information 182
8.1
Independent auditor’s report and limited assurance report on sustainability information
183
8.2 Articles of Association provisions governing the distribution of profit 196
8.3 Anti-takeover measures 197
8.4 List of principal subsidiaries, joint arrangements and associates 198
9. Appendices 200
9.1 Royal BAM Group nv shares 201
9.2 Ten-year overview 203
9.3 Glossary 204
Berghaus Plaza Amsterdam
Sustainable redevelopment
of the former Berghaus
Plaza office building in Amsterdam for
real estate developer Boelens de Gruyter,
including two residential towers (288 new
homes) and office tower (21,600 m
2
).
BAM Bouw en Techniek and BAM Wonen.
Executive Board report
Housing concepts Flow
With advanced digital
techniques and modular
components, Flow makes sustainable, fast,
and affordable customisation possible on
any plot, with any desired appearance.
BAM Wonen.
3
1
Refer to the glossary in chapter 9.3 for definitions.
2
Includes continued and discontinued operations.
3
Adjusted for the impairment related to Invesis
Key figures
1
People
2024 2023
Safety
Incident frequency BAM (IF BAM) 2.9
2.8
Incident frequency total (IF Total) 2.9 2.6
Human resources
Average number of employees (in FTE) 13,172 13,344
Female representation in senior leadership group (in %) 16 15
Return on inclusion score - 55
Planet
Decarbonisation
Scope 1 and 2 CO
2
emissions intensity (in tonnes per € million revenue) 7.5
10.9
Scope 1 and 2 CO
2
emissions (in kilotonnes) 49
69
Energy consumption (in MWh) 334,633
355,763
CDP Climate ranking A A
Circularity
Construction and office waste intensity (in tonnes per € million revenue) 8.1
8.7
Construction and office waste (in kilotonnes) 52 55
Profit
2
(x € million, unless otherwise stated) 2024 2023
Revenue 6,455 6,270
Adjusted EBITDA 333.3 304.3
Adjusted EBITDA margin (in %) 5.2 4.9
Net result attributable to the shareholders of the Company 82.2 175.0
Earnings per share (in €) 0.31 0.65
Dividend per share (in €) 0.25 0.20
Dividend payout (in %) 81
3
31
Share buyback programme 30.0 -
Number of ordinary shares ranking for dividend at 31 December (x 1,000) 263,524
268,978
Share closing price as at 31 December (in €) 4.20
2.42
Equity attributable to the shareholders of the Company 895.5
920.5
Solvency ratio (in %) 23.0
23.4
Capital employed 1,317.6
1,345.7
Return on capital employed (in %) 5.8
13.7
Order book 13,008 9,809
Message from the CEO
‘I am pleased with our performance in 2024,
which reflects the success of our growth
strategy and our core strengths.’
Ruud Joosten
CEO Royal BAM Group nv
4
CEO Message
5
Value creation Business performance Risk management and governance Supervisory Board Sustainability statement Financial statements Other information Appendices
‘I am pleased with our performance in 2024,
which reflects the success of our growth strategy
and our core strengths in the energy transition,
transportation and Dutch residential markets.
Nearly all of BAM’s activities performed strongly,
highlighting the resilience and effectiveness of our
business model. We reported an adjusted EBITDA
margin of 5.2%. However, project delays and
supply chain disruptions at school projects in
Denmark and various construction projects in
construction UK did weigh on EBITDA growth.
We maintained a strong financial position by
focusing on projects with an attractive risk-reward
balance, along with effective cost and working
capital management. This has resulted in our
robust solvency and liquidity position. We
propose a dividend of €0.25 per share over 2024,
reflecting an increase of 25% versus last year. In
addition, BAM intends to return €50 million to its
shareholders through a share buyback. We have
further optimised our portfolio by divesting our
remaining stake in Invesis, allowing us to focus
more strongly on our core business.
Furthermore, we are pleased that the Dutch Public
Prosecution Office (DPPO, Openbaar Ministerie) has
closed its investigation and dismissed their
suspicions regarding BAM International with a
favourable outcome and clarity for our company.
In early 2024, we advanced to the next phase of
our strategy ‘Building a sustainable tomorrow’,
centred around three key pillars Focus, Transform
and Expand, with sustainability and people as the
primary drivers. Under Focus we prioritise
profitability, multi-asset clients and framework
agreements. Key milestones were winning
projects like the Lightyards development for
242 homes in Eindhoven and a high-voltage
substation for Schiphol Airport. In the Transform
pillar, we marked a significant step forward with
the official opening of our production facility for
our sustainable wooden Flow homes concept.
The first Flow homes have been successfully
delivered, reinforcing our commitment to
innovation, digitalisation, and affordable housing.
As part of Expand, BAM continues to grow in the
energy transition and rail infrastructure markets.
This is illustrated by multi-year project wins in our
civil engineering businesses, including the
framework contract for TenneT to upgrade the
electricity grid and the Orkney-Caithness link
project for energy transmission.
Safety is more than a set of rules — it is a deeply
embedded mindset and a shared responsibility
that guides everything we do. By fostering open
conversations and empowering our people to
prioritise their well-being and that of their
colleagues, we continue to build a culture where
safety always comes first. This is why we launched
an ambitious programme to further enhance the
safety of our employees and supply chain partners.
Additionally, we have reinforced our commitment
to sustainability with the validation of our
enhanced emissions reduction targets and our
net zero ambition for 2050 by the Science Based
Targets initiative (SBTi). Our company’s
leadership in sustainability is further
demonstrated by receiving a prestigious CDP
Climate A rating for the sixth consecutive year,
awarding BAM’s consistent efforts in mitigating
climate change.
Our dedicated efforts and strategic focus
have driven the strong growth of BAM’s well-
diversified order book, which has increased by
33% to €13 billion compared to year-end 2023.
We continue our disciplined contract and risk
management approach and we’re entering the
final stage of de-risking our portfolio, which is a
fundamental priority within our strategy to
enhance our financial performance and
predictability.
We expect that demand in our markets remains
robust, although uncertainty regarding interest
rates, the Dutch nitrogen situation and political
unrest persist. We see attractive market
opportunities driven by demand for
decarbonisation, infrastructure, and sustainable
and affordable housing, areas where we have
demonstrated market-leading capabilities.
Also, attracting and retaining employees remains
a top priority for our company.
For 2025, BAM expects to deliver an adjusted
EBITDA margin of around 5%, which is in the
middle of the target range for the strategic
period 2024-2026.
Finally, also on behalf of the Executive
Committee, I extend our gratitude to all our
stakeholders for their confidence in BAM. We are
particularly thankful to our dedicated employees
for their hard work and commitment to serving
our clients.’
Bunnik, the Netherlands, 19 February 2025
Ruud Joosten,
CEO Royal BAM Group nv
Safety is more than a set of
rules — it is a deeply embedded
mindset and a shared
responsibility that guides
everything we do.
By fostering open conversations
and empowering our people to
prioritise their well-being and that
of their colleagues, we continue
to build a culture where safety
always comes first.
Value creation
Aberaeron Coastal Defence Scheme
on the Welsh coast to protect the
seaside town of Aberaeron. The
scheme for Ceredigion County
Council will protect the town and
the surrounding coastline from
rising sea levels, preventing
flooding and coastal erosion.
Aberaeron,
BAM Nuttall
6
• Instable supply chain in the United Kingdom with a lot of bankruptcies of construction companies as a
consequence. Rising costs and supply chain instability are causing bankruptcies, driving demand for
cost-effective, modern construction methods.
• Global capability shortage is forcing firms to look internationally for skilled workers. Rapid changes in
required skills and increased demand in technical skills such as AI, robotics and automation affect
reskilling requirements.
• The energy transition in BAM’s home markets requires huge investments in the energy grid creating great
opportunities for BAM to support the construction of these projects. Net congestions potentially affect
construction projects, and create demand for energy-efficient designs and decentralised energy solutions.
• Nitrogen: strict nitrogen regulations in the Netherlands are slowing down construction, but creating
opportunities for companies like BAM offering low-emission building solutions.
1
BAM’s role in the value chain
Upstream
Development
Design, engineering and construct
Maintain and operate
Renovate and retrofit
OWN OPERATIONS
Material suppliers
Subcontractors
Service providers
Temporary staff
and labour
Downstream
Clients and
end users
Royal BAM Group nv - Corporate centre
Netherlands
division
United Kingdom and
Ireland - division
Belgium
Public Private Partnerships
BAM Infra Nederland
BAM Bouw en Techniek
BAM Residential
BAM Specials
BAM Nuttall
BAM Construct UK
BAM Contractors (Ireland)
BAM Ventures
BAM Interbuild
Kairos
Invesis (50%)*
BAM is organised in two divisions, one dedicated to the Netherlands and the other to the United
Kingdom and Ireland. The Group’s activities in Belgium are organised separately. The two divisions and
Belgium are supported by a corporate centre.
BAM’s Executive Committee consists of two Executive Board members (chief executive officer and chief
financial officer), two chief operating officers, one responsible for the activities in the Netherlands and
the other for the activities in the United Kingdom and Ireland, and the chief HR officer.
What BAM does
In divisions Netherlands and United Kingdom and Ireland, BAM leverages its scale and strong position to
lead with replicable and ‘best-in-industry’ construction processes, delivered by highly skilled employees
to create valuable, sustainable solutions for its clients.
Key clients and market developments
Public and private sector Energy transition Supporting productivity
Housing shortage Supporting society Climate adaptive assets
Markets: context and opportunities
• Governmental changes in the Netherlands and United Kingdom. Housing affordability remains a major
issue in the Netherlands and significant growth opportunities continue for sustainable construction,
with increasing adoption of circular and industrialised methods. In the United Kingdom, government
shifted to Labour party government for the first time since 2010. Opportunities arise in various sectors
including Energy (nuclear, renewables and grid upgrade), Transport (Rail), Education, and Health
whereas the commercial sector is impacted by high interest rates and scrutinised client budgets.
• Geopolitics and global instability are disrupting global supply chains and increasing materials costs,
but also opening the door for innovation in local sourcing and supply chain resilience.
*will be divested in 2025
CEO Message
7
Value creation
Business performance Risk management and governance Supervisory Board Sustainability statement Financial statements Other information Appendices
2.1 About BAM
Marine Works and Flood protection
Healthcare
Housing
Offices
Leisure facilities
Renewable energy
Energy efficiency
Leisure facilities
Light rail
Bridges
Education
Tunnels
Stations
Mobility hubs
EV Charging infrastructure
Roads
Housing
Airports
Heavy rail
Retrofit
Building refurbishment
Land stations
Industrial
Electricity grids
Marine Works and Flood protection
Healthcare
Housing
Offices
Leisure facilities
Renewable energy
Energy efficiency
Leisure facilities
Light rail
Bridges
Education
Tunnels
Stations
Mobility hubs
EV Charging infrastructure
Roads
Housing
Airports
Heavy rail
Retrofit
Building refurbishment
Land stations
Industrial
Electricity grids
Products and services
Civil Engineering and infrastructure
BAM builds, upgrades, and maintains
roads, railways, bridges, tunnels,
cables, sewage, and energy
infrastructure. BAM is committed
to making infrastructure ready for
future demands by prioritising
sustainability through innovative
use of sustainable materials and
practices.
Residential construction and property
development
BAM constructs new homes and
renovates existing ones.
BAM delivers low-rise and mid-rise
buildings, both prefabricated and
custom-built. In its production
facility, BAM manufactures
affordable, sustainable wooden
homes under the Flow brand.
BAM also provides student
accommodation and retirement
homes.
Non-residential construction
BAM designs, constructs, maintains,
renovates and operates commercial
buildings, hospitals, healthcare
facilities, educational facilities,
leisure facilities, industrial
complexes, airports and more to
make them fit for the future.
8
CEO Message
Value creation
Business performance Risk management and governance Supervisory Board Sustainability statement Financial statements Other information Appendices
Stakeholder involvement 2024
To execute BAM’s strategy and to deliver the products and services visualised on the previous page,
a diverse range of stakeholders is consulted, engaged, influenced, or at a minimum, informed. This is
achieved through both a formal process, utilising a double materiality approach (as reported in chapter
6.1 and in accordance with ESRS 1 and 2 of the CSRD), and through stakeholder dialogues.
Stakeholders
BAM’s stakeholders encompass all interest groups that significantly influence or are influenced by
BAM’s economic, environmental and social impact. These stakeholders include parties in the value
chain that BAM operates in (see BAM’s role in the value chain on page 7) as well as other stakeholders
like employees, shareholders, financial institutions, central and local governments and non-
governmental organisations.
Employees
BAM’s employees are a key enabler for realising BAM’s mission ‘Building a sustainable tomorrow’.
Employee engagement is facilitated through multiple platforms such as internal events, quarterly
engagement surveys, open collaboration days, senior management meetings, the Young BAM, Future
BAM and management trainee communities. Additionally, BAM has active Works Councils across the
business, with whom regular engagements are in place.
Society
BAM constructs essential facilities that society requires, such as housing, hospitals, schools, utilities,
and infrastructure. By their very nature, BAM’s construction and civil engineering projects have a
lasting presence and impact on local communities and are integral to the foundational economy.
In the design phase, this involves designing for a sustainable future to benefit society while
supporting local needs. During construction, BAM’s engagement typically focuses on local or social
spending and employment, education, and creating positive social impacts through volunteering.
BAM’s community liaisons ensure that local communities’ experiences during the construction phase
are as comfortable as possible.
Clients
As part of BAM’s strategy to focus, transform and expand, BAM actively seeks to establish and strengthen
relationships with clients who share BAM’s sustainable ambitions. BAM engages with these clients to
enhance the sustainability of products and services. This engagement extends beyond providing the most
effective offerings to creating value for society and the environment. The relationship is facilitated
through sustainability-themed client days and meetings to inspire, share knowledge and best practices,
and fundamentally through continuous dialogue about project expectations and projections. This is
primarily managed through account management and business development.
Suppliers
Supply chain partners are vital to BAM, and therefore the Company engages directly with its key
suppliers. During projects, BAM maintains constant dialogue with its suppliers regarding project
expectations, safety, sustainable solutions and the sources of supplied goods to minimise the
environmental and social negative impacts of projects. BAM’s key suppliers are material suppliers,
subcontractors, service providers, temporary staff and labour.
Key partners
BAM collaborates with a number of other key partners. These include for example architects and
engineers, joint venture partners, knowledge institutions, industry organisations, credit insurers,
and local governments and regulators. BAM engages with these partners in different ways, for
example as partners in a joint-venture bidding for a project or working with local governments on
constructing projects with minimal impact.
Providers of financial capital
Engagement with investors, financial institutions and the broader financial community is actively
pursued and typically occurs through road shows, seminars, investment meetings, press releases,
and the Annual General Meeting of Shareholders.
Regulators
In delivering projects, BAM is in constant contact with local and other governmental authorities
regarding the issuance of permits and compliance with regulations. Simultaneously, the sector
must better align industry practices with sustainability standards, through increasingly ambitious
regulations to minimise negative impacts and stimulate social and environmental performance.
BAM collaborates across industries in national and international organisations to influence policy
and practice for the transition to a net-zero future. Therefore, BAM engages, together with trade
associations, with regulators on issues such as MPG calculation (environmental impact calculation
related to the Dutch market), carbon-free buildings, carbon impact in the infrastructure life cycle,
and other environmental issues. A full list of BAM’s memberships can be found on the corporate
website.
Other stakeholders
Other stakeholders include e.g. trade organisations, knowledge institutions and non-governmental
organisations such as SBTi, CDP, Nationale Denktank and Milieudefensie. BAM engages with these
types of stakeholders in different ways, e.g. by collaborating on research projects with universities,
being a strategic partner for the Nationale Denktank, and participation in events or one-on-one
meetings.
CEO Message
9
Value creation
Business performance Risk management and governance Supervisory Board Sustainability statement Financial statements Other information Appendices
Human capital
Diverse and skilled workforce in an
inclusive environment, guided by
the BAM values and reflective of
the communities in which
BAM operates.
Natural capital
Materials such as concrete, steel,
timber and asphalt.
Manufactured capital
Machinery, tools and buildings.
Social and relational capital
Social relationships and networks
including clients, business partners,
suppliers, subcontractors and other
stakeholders.
Intellectual capital
Digital, modular and industrialised
construction technologies.
Financial capital
Funding from shareholders,
financial stakeholders and clients.
€
Inputs Outputs
Social impact by providing a safe
and inclusive working
environment.
Environmental impact by limiting
global warming and its effects,
and reducing waste.
Economic impact by being
financially strong to build a safe
and sustainable living
environment.
€
Value creation model
SDG 9
|
SDG 11
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CDP
climate
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emissions
Climate adaptive
measures
Biodiversity
positive
Material
passport
Circularity
assessment
Deliver circular
products by
maximising
resource
efficiency and
eliminating waste
Reduce carbon emissions to
limit global warming and its
effects
Adapt the built
environment to increase
climate resilience
Improve the variety
of life to enhance
ecosystems
Foster safe, healthy
and inclusive
working and
living environments
Engage with
communities to enhance
peoples’ lives
Construction
and office
waste
Incident
frequency
Gender
diversity
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inlusion
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BAM’s value creation model shows how the Group
uses resources, capabilities and expertise to create
sustainable value for all stakeholders.
10
Recognising that maintaining the status quo will
only take BAM so far, BAM understands the need
to transform its products and services. BAM is
committed to continuous evolution, striving to
becoming more digital, scalable, and even more
sustainable.
When BAM transforms, it will uncover new
opportunities to expand into, such as growing in
energy markets, and renovating and retrofitting.
BAM will champion ownership, collaboration,
and inclusion of diverse voices to achieve its
goals. BAM will ask new questions and explore
new perspectives.
BAM aims to focus to protect profitability,
transform to strengthen competitive advantage
and expand for future growth.
BAM’s mission ‘Building a sustainable tomorrow’
remains unchanged, as it consistently strives to
enhance its contribution to a more sustainable
world, create an inclusive environment for its
employees, and deliver significant returns for
shareholders.
Strategy 2024-2026:
Focus, transform and expand
BAM aims to be a market leader in sustainable,
and profitable product market combinations
(PMCs). The strategy for 2024-2026 focuses on
protecting profitability, transforming through
industrialisation and digitisation, and further
expanding into growth markets.
2.2 Strategy
Building a sustainable tomorrow
BAM has one clear mission – building a
sustainable tomorrow. By staying focused on its
goals, BAM has taken significant steps in the
right direction. The year 2024 is the first year of
the next phase for 2024–2026 of BAM’s mission
‘Building a sustainable tomorrow’. BAM aims to
transform its business from conventional (grey)
to environmentally conscious (green). BAM’s
success lies in partnering with clients who share
its values and prioritise sustainability in
achieving their goals. By providing value-based,
reliable, and sustainable solutions while
upholding safety standards, BAM can achieve
these goals with its stakeholders.
It is important for BAM to take ownership,
collaborate, and embrace diverse perspectives.
BAM must challenge the status quo by
rethinking not only its actions but its
approaches:
• What if diesel equipment is replaced with
electric alternatives?
• What if one-off projects are turned into a
replicable concept?
• What BAM does is impactful, time-sensitive,
and plays a crucial role in shaping a
sustainable future.
It is not about changing direction, but
continuing the journey that has led BAM to
success. BAM will focus on selecting profitable
projects which align with its sustainability
targets for 2026 and 2030, helping ensure BAM
remains predictable, profitable, and sustainable
in the future.
Mission:
Building a sustainable tomorrow.
Focus on selecting
profitable work
aligning with our
sustainability targets
to remain predictable,
profitable, and
sustainable.
Transform products
and services to
evolve further,
becoming more
digital, scalable,
and sustainable.
Expand and increase
efforts towards new
opportunities, such
as growing in energy
markets and
renovating and
retrofitting.
• Reliable
• Inclusive
• Sustainable
• Collaborative
• Ownership
Focus
Transform
Expand
Values
Led by a clear strategy
CEO Message
11
Value creation
Business performance Risk management and governance Supervisory Board Sustainability statement Financial statements Other information Appendices
Expand for future growth
• in grids and EV charging;
• in green infra rail;
• in housing renovations;
• in commercial renovation and retrofitting.
BAM sees strong further growth in residential,
new energy markets and renovations towards
2030. With BAM’s scale and scope it is well
positioned to serve these larger societal
challenges. BAM targets leading positions in
markets that are in line with its strengths and
sustainability purpose. This will be done through
expanding existing capabilities. A key initiative
in both divisions is growing the presence in
markets for energy solutions, including grids.
The BAM Experience
BAM’s employees are a key enabler for realising
BAM’s mission ‘Building a sustainable
tomorrow’. In 2024, BAM launched ‘the BAM
Experience’, an attractive employee experience
tailored to the needs of BAM’s employees and
distinctive in the market. The BAM Experience is
characterised by four main themes: ‘Guided by
values, united by culture’, ‘Embracing diversity &
fostering inclusion’, ‘Sustainable career
development’ and ‘Building our communities’.
Focus to protect profitability
• on framework agreements;
• on infrastructure projects with a balanced
risk portfolio;
• on selective multi-assets clients in the
Netherlands and United Kingdom and Ireland;
• differentiate on process capability in
economic core.
BAM’s strategy involves clear focus on profitable
growth platforms in the Netherlands, and in the
United Kingdom and Ireland, emphasising key
clients and proven competitive advantages.
A key initiative in the division United Kingdom
and Ireland includes a focus on medium-sized
projects with top clients and enhancing core and
value chain capabilities such as advisory, design
and engineering.
Transform to strengthen
competitive advantage
• industrialise housing through Flow concept;
• transform education and health through
standardised designs;
• innovate roads through sustainable asphalt;
• unlock advantages through cross-segment
collaboration.
BAM’s transformation centres on sustainability
in markets where it is looking to differentiate
from competition on product and process
leadership and strong relationships with clients.
BAM will target markets where prioritisation of
innovation and sustainability can flourish,
enabling transformation within the portfolio.
A key initiative in the division Netherlands is to
increase the number of biobased, industrialised
Flow homes within residential.
What if the BAM Experience meant being the
best employer in construction in Europe?
What if we could
build a company
culture rooted in
our values?
Our employee-picked
values define everything
we do, and our leaders
endeavour to put those
values into practice in
innovative ways.
What if our
workplace was as
diverse as our
world?
We strive to create an
environment where
everyone feels valued,
unleashing
productivity and
creativity.
What if our
employees could
thrive and grow?
We aim to ensure
that everyone at
BAM can develop a
sustainable career,
with opportunities
to learn and grow.
What if we could
extend our legacy
of building
communities?
We want our
employees to feel
empowered to make a
difference at BAM and
in the communities
they’re building.
The BAM Experience
Guided
by values,
united by
culture
Embracing
diversity &
fostering
inclusion
Sustainable
career
development
Building our
communities
We are set on a journey to build a sustainable tomorrow, and that is no small promise. One we cannot
keep without you. With The BAM Experience, we put our employees at the forefront of our strategy,
ensuring that we live our values, that leadership drives us forward, that we foster diversity and inclusion,
that our employees thrive and grow, and that we build communities with a focus on safety and innovation.
12
CEO Message
Value creation
Business performance Risk management and governance Supervisory Board Sustainability statement Financial statements Other information Appendices
Overview of BAM’s strategic targets for the years 2026 and 2030
Economic
Environment Social
Decarbonisation
• 2026: -80% Scope 1 and 2 CO
2
intensity vs. 2015
• 2030: -50% Scope 3 CO
2
emissions vs. 2019
• Maintain CDP climate ‘A’ ranking
Financial performance
• 2024-2026: > EUR 6 billion revenue
• 2024-2026: Adjusted EBITDA margin 4-6%
Financial resilience
• 2024-2026: Capital ratio
~
25%
Return to shareholders
• 2024-2026: 30-50% of net income from
operations for dividend
• 2024-2026: potentially additional cash returns
via share buybacks
Circularity
• 2030: -50% non-biobased virgin materials vs. 2019
• 2030: A,B,C* and industrialised projects with design
in their scope to use the material passport and to use
the circularity assessment
• 2030: -75% construction and office waste
intensity vs. 2015
Safety, health and inclusion
Gender diversity:
• 2026: ≥ 25% female representation in senior leadership
• 2030: ≥ 30% female representation in senior leadership
Return on inclusion:
• 2026: Score > 60 (Silver)
• 2030: Score > 71 (Gold)
Climate adaptation
• 2026: Climate-adaptive measures to be integrated in
all BAM’s own developments
• 2026: Offer climate-adaptive measures in all A,B,C*
tenders with a design scope
• 2030: Climate-adaptive measures to be
integrated in all projects
Social value
• 2026: UK&I 35% social value for projects, NL to
deliver 5% social value on top of contractual obligations
Biodiversity
• 2026: Biodiversity enhancing alternatives to be offered in all A,B,C*
tenders and developments with design in their scope
• 2026: Evidenced biodiversity balanced on all projects
in the United Kingdom and Ireland
• 2030: Aggregated biodiversity-positive
Focus
Transform
Expand
* BAM uses a classification system based on the size and risk profile of its projects, ranging from A (highest classification) to E. A, B, and C projects typically represent medium to large projects.
CEO Message
13
Value creation
Business performance Risk management and governance Supervisory Board Sustainability statement Financial statements Other information Appendices
14
Business performance
For housing corporation
‘thuis’, BAM Wonen
delivered 56 sustainable
apartments with wooden
support structures in
Veldhoven.
Veldhoven,
BAM Wonen
2 Income statement
(x € million, unless otherwise stated) 2024 2023
Revenue Adj. EBITDA Revenue Adj. EBITDA
Division Netherlands
3,231 160.8 3,007 179.0
Division United Kingdom and Ireland
3,112 114.1 3,139 121.5
Germany, Belgium and International
113 6.4 125 11.4
Invesis
29.8 - 2.6
Other including eliminations (1) 22.3 (1) (10.2)
6,455 333.3 6,270 304.3
Adjusted items
(12.2) (9.6)
Depreciation and amortisation
(127.8) (121.3)
Impairments
(114.5) (2.7)
Finance result 8.5 12.9
Result before tax
87.4 183.6
Income tax expense
(5.2) (8.6)
Non-controlling interest 0.0 0.0
Net result attributable to shareholders
82.2 175.0
Dividend proposal
BAM’s policy is to pay out 30 to 50% of the net result for the year, thereby considering the balance sheet
structure supporting the strategic agenda. BAM proposes to pay a dividend of €0.25 per share (2023:
€0.20). This reflects a pay-out ratio of 35% of net result over 2024 adjusted for the €107 million
impairment related to Invesis. Subject to adoption by the Annual General Meeting on 8 May 2025, the
shares will trade ex-dividend on 12 May 2025 and dividend will be paid on 6 June 2025. Furthermore,
BAM has decided to return an additional €50 million via a share buyback to its shareholders in 2025.
This reflects BAM’s strong performance, supported by the cash proceeds of the Invesis divestment.
Outlook 2025
It is expected that the demand in BAM’s markets remains robust, although uncertainty regarding
interest rates, the Dutch nitrogen situation and political unrest persist. There are attractive market
opportunities driven by demand for decarbonisation, critical infrastructure, and sustainable and
affordable housing, areas where BAM has demonstrated market-leading capabilities. Attracting and
retaining employees remains a top priority for the company. For 2025, BAM expects to deliver an
adjusted EBITDA margin of around 5%, which is in the middle of the target range for the strategic
period 2024-2026.
3.1 Financial performance
Solvency
(in%)
23.0
(2023: 23.4)
Dividend
(in € per share)
0.25
(2023: 0.20)
Adjusted EBITDA
(in%)
5.2
(2023: 4.9)
Revenue
(x
€ million
)
6,455
(2023: 6,270)
Revenue increased by 3% to €6.5 billion compared to full-year 2023, mainly driven by the division
Netherlands. The development of the British pound exchange rate had a positive effect of €78 million.
Adjusted EBITDA increased by 10% to €333 million. Invesis contributed €50 million to adjusted EBITDA,
including €20 million earn-out for successfully securing new projects, reported in ‘Other including
eliminations’ and €31 million reclassification of hedge reserves following the agreed divestment,
reported in ‘Invesis’.
Net result was €82 million (2023: €175 million), reflecting earnings per share of €0.31 (2023: €0.65).
Adjusted items of €12.2 million refer to reorganisation costs in both divisions. The net result was
impacted by a €107 million non-cash impairment related to Invesis. The low effective tax rate of 6% is
mainly driven by the yearly revaluation of deferred tax assets. The tax rate is also lowered by the future
tax benefits arising from the liquidation of operations.
The order book at year-end 2024 increased by 33% to €13 billion (2023: €9.8 billion), with a clear
focus on attractive risk-reward balance. This includes a positive British pound exchange rate effect
of €262 million. Of the total order book, €5.8 billion is expected to be carried out in 2025.
CEO Message
15
Value creation
Business performance
Risk management and governance Supervisory Board Sustainability statement Financial statements Other information AppendicesAppendicesOther informationFinancial statementsSupervisory BoardRisk management and governance
Business performance
Value creationCEO Message
15
diversified portfolio and order book provides BAM the flexibility to adapt where needed. There remains
a strong rationale for essential investments in energy transition, infrastructure and sustainable and
affordable homes. Regarding the portfolio, BAM announced it will divest BAM Infra
Funderingstechnieken and strengthen its position in mobile networks with the announced acquisition
of WL-Winet.
Division United Kingdom and Ireland
4
Division United Kingdom and Ireland key numbers
(x € million, unless otherwise stated) 2024 2023
Revenue Adj. EBITDA Revenue Adj. EBITDA
Construction UK
905 (48.3) 1,046 (14.8)
Civil engineering UK
1,573 95.5 1,363 77.3
Ventures UK
310 38.1 323 36.8
Ireland
427 36.8 463 27.6
Other including eliminations (103) (8.0) (56) (5.4)
Total
3,112 114.1 3,139 121.5
Adjusted EBITDA margin
3.7% 3.9%
Revenue growth
(1%) 0%
Adjusted EBITDA growth
(6%) 49%
TWC efficiency
(11.1%) (13.8%)
Order book 7,181 4,533
Order book growth 58% (16%)
Revenue declined by 1% compared to full-year 2023. There was a high activity level in civil engineering
UK. Revenue was lower in construction UK, reflecting the more challenging market circumstances.
Adjusted EBITDA was €114 million (2023: €122 million), reflecting an adjusted EBITDA margin of 3.7%
(2023: 3.9%). The performance of construction UK was impacted by project delays and supply chain
issues, including a loss for Co-op Live in Manchester. Civil engineering UK delivered strong results
supported by a high activity level, especially in rail and projects related to energy transition. Also,
Ventures and Ireland continued their solid performance.
The order book increased by 58% to €7.2 billion. This strong increase was mainly driven by civil
engineering but also Construction UK and Ireland contributed to growth. Project wins included three
contracts, with a joint-venture partner, to design and build a 140-mile track infrastructure for the
high-speed railway HS2 in the United Kingdom and to Construction UK the St Leonard’s Catholic School
and improvement of Luton Airport.
Division Netherlands
3
Division Netherlands key numbers
(x € million, unless otherwise stated) 2024 2023
Revenue Adj. EBITDA Revenue Adj. EBITDA
Construction and Property
2,255 85.7 2,072 111.9
Civil engineering
1,005 74.3 964 65.0
Other including eliminations (29) 0.8 (29) 2.1
Total
3,231 160.8 3,007 179.0
Adjusted EBITDA margin
5.0% 6.0%
Revenue growth
7% 3%
Adjusted EBITDA growth
(10%) 4%
TWC efficiency
(11.7%) (12.0%)
Order book
5,348 4,917
Order book growth
9% 13%
Revenue increased by 7% compared to full-year 2023 and was supported by high production in all
businesses. Adjusted EBITDA was €161 million (2023: €179 million), reflecting an adjusted EDITDA
margin of 5.0% (2023: 6.0%). The performance of the Dutch residential activities continued to be strong
and home sales increased to 1,854, including 125 homes in the Bajeskwartier project (2023: 1,670,
including 134 in the Bajeskwartier project). These homes were mainly bought by private buyers.
The contribution of non-residential was impacted by cost overruns and the delayed completion of the
schools in Denmark. In total three of the four projects in Denmark have been handed over to the client
and the last one is expected to be completed in the first half of 2025. Civil engineering continued to
perform strongly, with a 14% increase of adjusted EBITDA.
The order book increased by 9% to €5.3 billion supported by all business segments. Recent project wins
include a long-term maintenance contract for the Sluiskil tunnel, a traffic management system project
for ProRail, a 2GW landstation in IJmuiden, the Lightyards project for 242 homes in Eindhoven and a
new high-voltage substation for Schiphol airport.
The residential market remained strong, driven by stable consumer confidence. The government has
the ambition to build more homes, which is illustrated by the Housing Summit 2024 initiative, aimed at
improving procedures to expedite residential construction. The non-residential market is cautiously
optimistic, specifically in the healthcare, education and offices sector. In civil there are many attractive
growth opportunities driven by the energy transition and the transport market. Regarding the nitrogen
verdict by the Council of State of 18 December 2024, ongoing projects continue as planned and the
16
CEO Message Value creation
Business performance
Risk management and governance Supervisory Board Sustainability statement Financial statements Other information Appendices
The construction market in the United Kingdom is expected to grow. Energy remains a focus of the UK
Government, which has recently issued the Clean Power Action plan to speed up planning decisions to help
the energy chain gear up for delivery. Furthermore, negotiations have begun with the shortlisted bidders
for the Small Modular Reactor (SMR) programme and BAM participates in this process with Rolls Royce.
The New Hospital Programme in the UK will be put on a more sustainable and deliverable footing.
In the first half of 2025, further announcements from the UK Government are expected, including the
long-awaited ten-year Infrastructure Plan and the outcomes of the Strategic Defence Review and the
Spending Review, which will determine capital spending for the next five years.
The construction market in Ireland is also forecast to grow and there is solid demand for transport and
social infrastructure. For 2025, the total capital investment will be almost €15 billion, the country’s
highest annual spend to date. BAM remains focused on winning projects with the right risk/reward
balance.
Germany, Belgium and International
5
Germany, Belgium and International key numbers
(x € million, unless otherwise stated) 2024 2023
Revenue Adj. EBITDA Revenue Adj. EBITDA
Germany, Belgium and International
113 6.4 125 11.4
The activities in Belgium performed strongly in a competitive market and the order book further
increased, also due to the addition of the Berkenlaan project in Diegem. In Germany, BAM still shares
responsibility for one project of the former BAM Deutschland.
Invesis
In December 2024, BAM and PGGM reached conditional agreement on the divestment of BAM’s
remaining 50% share in Invesis to PGGM Infrastructure Fund. After the transaction, which is expected
to be closed early 2025, Invesis will be fully owned by PGGM Infrastructure Fund. BAM will receive a
cash consideration of approximately €105 million in two tranches in 2025.
Invesis contributed €50 million to adjusted EBITDA, including €20 million earn-out for successfully
securing new projects (reported in ‘Other including eliminations’) and €31 million reclassification of
hedge reserves following the agreed divestment. The net result was impacted by a €107 million
non-cash impairment related to Invesis.
Cash flow
6
Cash flow
(x € million, unless otherwise stated) 2024 2023
Cash flow of operations 284 276
Cash flow from working capital 3 (99)
Change in provisions and pensions
(30) (71)
Cash flow from operating activities 257 106
Cash flow from investing activities (108) (91)
Cash flow from financing activities
(172) (109)
Increase / decrease in cash position (23) (94)
Cash and cash equivalents beginning period 757 841
Exchange rate differences
29 10
Cash and cash equivalents 763 757
At year-end 2024, cash and cash equivalents totalled €763 million (2023: €757 million), while trade
working capital normalised. After a further normalisation in the first half-year 2024, trade working
capital, as anticipated, has bottomed out in the second half of the year.
The operational performance resulted in a strong cash flow from operations of €284 million.
Cash flow from working capital was €3 million positive. This development was in line with the
anticipated stabilisation of trade working capital efficiency to -11.7% at year-end 2024.
Cash flow from investing activities of -€108 million primarily relates to regular capital expenditure
(€85 million) with a focus on sustainable, digital and modular solutions such as the electrification of
equipment and modular housing. The cash proceeds of the divestment of the remaining share in
Invesis, of approximately €105 million are not included as these will be received in two tranches in
2025.
Cash flow from financing activities of -€172 million includes the payment of cash dividend (€26 million)
and share buybacks (€66 million). The remainder primarily relates to lease payments of €86 million.
Exchange rates, primarily the British pound, had a positive effect of €29 million on cash and cash
equivalents at the year-end.
CEO Message
17
Value creation
Business performance
Risk management and governance Supervisory Board Sustainability statement Financial statements Other information Appendices
Financial position
7
Financial position
(x € million, unless otherwise stated) 2024 2023
Cash position 763 757
Borrowings (67) (62)
Net (debt) cash before lease liabilities 696 695
Lease liabilities (256) (234)
Net (debt) cash 440 461
Trade working capital (938) (822)
Shareholders’ equity 896 921
Balance sheet total 3,891 3,932
Capital ratio 23.0% 23.4%
Capital employed 1,318 1,346
Return on capital employed 5.8% 13.7%
Trade working capital efficiency changed to -11.7% (2023: -13.2%), which reflects the normalisation of
working capital.
The decrease in shareholders’ equity of €25 million to €896 million mainly comprises the net result of 2024
(€82 million), positive exchange rate differences (€21 million), the effects of the payment of dividend in
cash (-€26 million) and the buyback of shares (-€66 million), remeasurement of post-employment benefit
obligations (-€13 million) and release of Invesis hedge reserves (-€30 million). BAM’s solvency remained
solid at 23.0% (2023: 23.4%).
The financial resilience further improved by securing the second extension of the €330 million revolving
credit facility by one year to November 2028.
The lower return on average capital employed is primarily explained by the effect of the €107 million
non-cash impairment related to the Invesis divestment.
Sustainability insight
At Schiphol, BAM Bouw en Techniek starts the
construction of a circular crossing point
(‘Doorlaatpost 90’), where people and vehicles will
be checked by security staff. The design is almost
completely circular, using materials from the
demolition of offices and cargo buildings at
Schiphol.
18
CEO Message Value creation
Business performance
Risk management and governance Supervisory Board Sustainability statement Financial statements Other information Appendices
CEO Message
19
Value creation
Business performance
Risk management and governance Supervisory Board Sustainability statement Financial statements Other information Appendices
Safety, health and wellbeing
The year 2024 has been one of profound reflection and loss for BAM. The tragic loss of two lives has
deeply affected everybody in BAM. Each individual is not just a part of BAM’s own workforce and
contributor to a shared mission: ‘Building a sustainable tomorrow’, but also a cherished family
member and friend.
Safety
BAM reaffirms its commitment to prioritising the health and safety of every person within the BAM
organisation and on every site. These lost lives and serious accidents are a clear reminder that safety
is not just a compliance requirement, but it is a joint responsibility that underpins everything BAM
values. BAM recognises the focus areas where its safety systems, practices, and culture have not met
the high standards that BAM expects.
BAM measures safety performance through the incident frequency and the number of (serious)
accidents with the intent of continuous improvement. Incident frequency denotes the number of
occupational accidents resulting in lost time (absence from work ≥1 day) per million hours worked.
BAM measures incident frequency for its own employees (IF BAM) and for its own workforce, i.e. own
employees plus hires and subcontractors (IF Total).
The incident frequency (IF BAM) deteriorated from 2.8 in 2023 to 2.9 in 2024. IF Total is 2.9 in 2024
(2023: 2.6). It remains BAM’s aspiration to prevent all incidents and to further reduce the incident
frequency rate.
As a response to the deteriorating safety performance the Executive Committee has initiated a
Group-wide safety programme for which external expertise was retained to perform a holistic
assessment of BAM’s safety culture, organisation and system. Top risks and their underlying root
causes were identified, resulting in a prioritised roadmap to strengthen BAM’s safety culture and
performance.
The programme will be launched early 2025 and will focus on strengthening the organisation’s
system and enabling the organisation to drive system and culture. This includes enhancing safety
standards, management processes, governance and tools, strengthening safety leadership and risk
awareness and reducing risk tolerance at all levels.
3.2 Social performance
Social value
delivered
in UK&I (in %)
15.6
Female
representation in
senior leadership
(in %)
16
(2023: 15%)
Incident
frequency
2.9
(2023: 2.6)
BAM is committed to creating a positive social impact within the communities where it operates. BAM’s
approach to social sustainability spans the physical safety of its own workforce (including subcontractors)
and the public, the wellbeing of colleagues, supporting local economic development, social mobility and
inclusion. The launch of the BAM Experience (see chapter 2.2 Strategy) in 2024 placed renewed focus on
putting employees at the forefront of BAM’s mission to build a sustainable tomorrow.
To guide this journey, BAM has defined social performance targets for 2030 and targets for intermediate
years towards 2026. Current results are below initial expectations and reaching these targets requires
persistent effort going forward. Board-level engagement, continuous constructive dialogue and corrective
measures are taken to ensure a longer-term trend that moves towards the targets. Interrelated indicators
show that progress is made, but it has not brought performance levels within a satisfactory range of the
short-term targets. This chapter presents progress against strategic targets and key initiatives.
Supplementary disclosures are presented in chapter 6.4.
20
CEO Message Value creation
Business performance
Risk management and governance Supervisory Board Sustainability statement Financial statements Other information Appendices
8 Incident frequency
(x 1 million worked hours)
2.8
2.9
IF BAM 2024
IF BAM 2023
Own employees
2.6
2.9
IF
Total 2024
IF Total 2023
Own workforce (including subcontractors)
191
215
2024
2023
Number of recordable work-related accidents (with lost time)
Based on the incidents happened in 2024, BAM reassessed potential hazards and high risks affecting
safety performance. As part of enhancing preventive measures BAM continuously reviews procedures,
and standards to reduce risks. Increase of (leadership) safety audits, inspections, and performance
tracking focused on leading and lagging indicators, is enabling BAM to continously monitor and discuss
safety performance across the organisation. BAM encourages feedback and prioritizes safety culture
reinforcement. BAM actively promotes leadership involvement and employee participation in safety
initiatives.
Health and wellbeing
In 2024, BAM Netherlands implemented the programme House of Vitality in part of the business. The
programme gives employees insight into their own vitality by means of an extensive survey that covers
the themes work ability, work experience, productivity and happiness. In addition, it provides BAM with
management information and steering factors to improve wellbeing in the organisation. This allows
BAM to deploy targeted interventions that make a direct contribution to improving the wellbeing of
employees. The programme will be expanded next year to the rest of the division.
A comprehensive programme of training and awareness-raising was established in the division United
Kingdom and Ireland, including 400+ individuals being trained as mental health first aiders to support
colleagues. A BAM benefits platform was launched in 2024, totalling 63 different benefits. The platform
consolidated all the existing BAM benefits such as cycle to work scheme, medical insurance, retirement
planning and added a suite of new benefits such as pregnancy and baby support, and health apps.
BAMathon, a United Kingdom and Ireland-wide fitness event, took place in June 2024, with high levels
of engagement shown by employees taking part in walking, running, cycling and swimming events in
teams. The division United Kingdom and Ireland won five wellbeing awards in 2024 from Investors in
People, CECA and Mind Index for its innovative wellbeing work. It was also accredited with Investors in
People - Wellbeing (gold). Mind Index nominated 35 individuals who have worked exceptionally hard to
promote and support workplace wellbeing.
Female representation in leadership
BAM strongly believes that different backgrounds, cultures and experiences enhance business, drive
innovation and lead to sustainable growth. BAM welcomes diversity in thought and perspective and
expects leaders to value difference, whilst it complies with statutory requirements for gender
representation in leadership roles.
As prescribed by these requirements to set a number for the diversity between female and male
members of the Supervisory Board, its composition shall consist of at least one third (33%) female
members and at least one third (33%) male members. Since the Annual General Meeting in 2017,
the composition of the Supervisory Board has been in line with this target, and with the recent
appointment of Jane Hanson to the Supervisory Board, three out of seven members are female.
The Group’s aim is that at least 25% of the Executive Committee (including the Executive Board)
shall consist of women and at least 25% shall consist of men. With the appointment of Carla
Rodenburg-Verschuur as Chief Operating Officer for division Netherlands in October 2024,
the female share in the Executive Committee composition is 40%.
To underpin BAM’s belief in the value of diverse teams, BAM has set additional targets for the
percentage of women in its senior leadership group for the period up to 2030. The senior leadership
group (‘SLG’) is defined as all employees in senior job grades (referred to as grade F, G and H in BAM’s
salary framework). This group of approximately 140 employees includes members of the Executive
Committee, the directors of businesses and large underlying business units, as well as the most
senior functional roles in the divisions and at the corporate centre. At the end of 2024, the share of
female leaders in SLG was 16%, while the target was set at 19%. The Group continues to seek
opportunities to retain and develop talent to fulfil this ambition. Examples of such initiatives during
the reporting period are:
• A continued focus on inclusive recruitment, including an inclusive recruitment audit, as part of
BAM’s Return on Inclusion commitments. This has resulted in more females joining BAM, with a 3%
increase in the population of women since 2021.
• Inclusive development, progression and promotion has increased the proportion of female
managers in the Group by 4% since 2021. With more females in manager positions,
CEO Message
21
Value creation
Business performance
Risk management and governance Supervisory Board Sustainability statement Financial statements Other information Appendices
BAM anticipates to increase the number of women in its succession planning and to increase
females at senior levels in the future.
• Across the Group, BAM now has employee networks for gender equality. The purpose of these,
and other networks in BAM, is to provide a supportive space for colleagues and advise the Group in
how to increase inclusion.
• The Group sponsored AmplifyHER, a women’s visibility and leadership event in Amsterdam,
positioning BAM as an attractive and inclusive employer and providing 30 talented leaders with the
opportunity to learn more about gender equality and inclusion.
9
Female representation
(in %)
Senior leadership groupExecutive CommitteeSupervisory Board
0
10
20
30
40
50
43
40
25
19
33
2024 Target (2024)
16
Inclusion as a golden thread
An inclusive culture which respects and values differences, is essential to make the Group stronger,
more innovative and attractive. BAM’s aim is for inclusion to be a golden thread throughout the
Group’s operations. To support this, BAM is performing regular Return on Inclusion assessments with
an external independent party to track its progress towards the target score of 71 (Gold) or higher by
2030.
The next assessment is taking place in 2026 and hence BAM has focused in 2024 on embedding the
recommendations from the previous assessment to improve its score to 60 (Silver) or higher by 2026.
The assessment noted that BAM has openly recognised the necessity for cultural change. Over the
period, the recommendations from the Return on Inclusion assessment that were adopted include:
• Embedding diversity and inclusion in the organisation, spanning HR activities in recruitment,
leadership development and training, and procurement and IT.
• Further developing BAM’s inclusion networks, with the formation of two new networks in division
Netherlands with a focus on gender equality and inclusion for members of the LGBT+ community.
This mirrors the approach in division United Kingdom and Ireland, with both collaborating to
implement effective governance for networks, thereby increasing their impact and enhancing
inclusion within BAM.
• Building a Group-wide diversity and inclusion dashboard to better understand the trends in data
which inform the D&I strategy.
BAM is confident in its progress within D&I and is prepared to achieve its target score of 71 (Gold) or
higher by 2030. To ensure BAM’s vision for D&I is woven into projects, BAM shares training resources with
those working on BAM sites, and hosts sessions with supply chain partners. Through sharing these
resources and materials, a more inclusive industry is created. This is captured in the social value approach.
Social value
BAM aims to make a lasting societal impact by generating social value, a central theme in its goal of
‘Building a sustainable tomorrow’. Social value allows for reinvestment into the communities where
projects are executed. These investments include channelling wealth back into the local economy
through local procurement and employment, supporting apprenticeships, and volunteering in local
community projects. Activities that enhance social and local economic value are assigned a monetary
value, and are expressed as a percentage of social value against revenue or contract value.
Social value in division United Kingdom and Ireland
The division United Kingdom and Ireland has a strategic target of delivering 35% social value in 2026.
In 2024, the division United Kingdom and Ireland has implemented a Social Sustainability Reporting
Tool, allowing social value data to be captured across projects and reported at divisional level.
The themes which are tracked by the tool, allow BAM to demonstrate impact on Social Mobility,
Foundational Economy and Social Inclusion.
Social
Inclusion
Community engagement
Diversity & Inclusion
Legacy
Foundational
Economy
Local spend
Investment in VCSEs*
Volunteering
Ambassador network
Social
Mobility
Education
Employment
Training
* Voluntary, Community and Social Enterprise
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Risk management and governance Supervisory Board Sustainability statement Financial statements Other information Appendices
2024, no additional social return has yet been delivered on top of the required obligations.
Work remains to be done to progress towards the 2026 target, which the Social Council will drive
for instance by making social value offers for all projects in the tender stage.
Division Netherlands’ social return engagements in 2024 included:
• BAM Specials continued efforts to remain step 2 on the Prestatieladder Sociaal Ondernemen (Social
Entrepreneurship Performance Ladder) -certification, with parts of the business reaching step 3 –
recognising the way the organisation provides work to those who have difficulty finding employment.
• A national cooperation with JINC, reaching 857 young people through flash trainings, coaching and
job interview training.
• 222 apprentices were employed and trained through the BAM Vocational school (BAM Leerbedrijf).
These students split their time between working (4 days) and learning (1 day) for a technical or
vocational study.
Other initiatives
BAM participates in the Considerate Constructors Scheme (CCS) in the United Kingdom and its Dutch
counterpart, Bewuste Bouwers. Under these schemes, construction sites adhere to the Code of
Considerate Practice, which encompasses principles for respecting the community, protecting the
environment, and valuing the workforce. For further details, see chapter 6.4 Social information.
The overall Social and Local Economic Value (SLEV) captured under these three themes in 2024 is
estimated at over €487 million, representing 15.6% of revenue. As not yet all projects are included in
the tool, this figure does not reflect the average SLEV created in projects. For further detail on this
metric, see chapter 6.4 Social information. 2024 is the first year BAM was able to present
consolidated social value figures. Although BAM acknowledges that there is still room for
improvement in the reporting process, this is an important step forward in solid reporting towards
the social value targets in the coming years.
A striking example of a project in where BAM has delivered substantial SLEV in 2024 is the
Daphne Steel (University of Huddersfield) project. BAM created a social and local economic value
of €26 million which was equivalent to 39% of the project value. This was generated through local
employment, over 1000 apprentice weeks, 25 work experience weeks and 52% of construction
spend with local organisations.
Some additional highlights of BAM delivering social value in 2024 are:
• 370 directly employed apprentices. Over 38,000 apprenticeship and T-level weeks were delivered
on BAM’s projects in 2024. A data academy and a digital apprenticeship scheme were launched in
2023, providing employees the opportunity to upskill and increase their digital literacy. BAM is
recognised among the top ten best apprenticeship employers in the United Kingdom in the
construction and property sector.
• Each year BAM offers each staff member the opportunity to spend a paid work-day volunteering
with charities or community organisations. In 2024, over 11,000 staff volunteering hours
supported local projects. Additionally, over 38,000 hours were spent delivering schools
engagement and careers activities in educational establishments.
Social value and SROI in division Netherlands
In division Netherlands, projects for the public sector often contain obligations to deliver Social
Return on Investment. This is a method of delivering and measuring social value in projects, with a
focus on getting people who are distant from the labour market into work. This can be supported
through placements and employments for these people directly and through social procurement, for
instance purchasing from socially recognised companies. Various social activities also contribute to
social return, such as school visits to engage primary school and high school students.
Division Netherlands has committed to deliver 5% social return on top of the required obligations by
2026. In 2024, a Social Policy and a Social Council have been instated, to drive delivery and reporting,
and scope the social value framework for the Dutch context. For 2024, a sample part of the business
has been investigated on its progress. All social value activities that are in scope of the social value
framework, were used to fulfil project requirements. Based on this sample, it is estimated that in
Sustainability insight
For the sixth consecutive year, Royal BAM
Group nv has been recognised for leadership in
corporate transparency and performance on
climate change by the global environmental
non-profit CDP, securing a place on its annual
‘A List’.
Decarbonisation
BAM underlines the urgency to reduce carbon emissions and the pivotal role that the construction sector
plays in the transition towards a sustainable low-carbon society. In 2024, BAM had its 2030
CO
2
targets and
2050 net-zero ambition revalidated by SBTi, ensuring BAM’s targets allign with the latest climate science
requirements to meet the goals of the Paris Agreement. BAM’s targets are:
• 2026: -80% Scope 1 and 2 CO
2
intensity versus 2015
• 2030: -90% Scope 1 and 2 CO
2
intensity versus 2015 (SBTi validated)
• 2030: -50% Scope 3 CO
2
emissions versus 2019 (SBTi validated)
• 2050: net-zero Scope 1,2 and 3 (SBTi validated)
• Maintain CDP Climate A List position
After reaching the 2023 Scope 1 and 2 reduction target in 2023, BAM is now accelerating its carbon
reduction towards the more ambitious 2026 target. BAM’s Scope 1 and 2
CO
2
intensity decreased by 70%
versus 2015 (target for 2026: 80% reduction). The
CO
2
intensity in 2024 was 18% lower compared to 2023
(from 10.9 to 7.5 tonnes per € million revenue). The reduction is the result of BAM’s ongoing
CO
2
reduction initiatives such as the use of biofuels and electrification. BAM reports Scope 1 and 2
CO
2
emissions using market based conversion factors for electricity as BAM’s reduction targets are based on
market based accounting. BAM’s Scope 1 and 2
CO
2
emissions using location based emissions factors are
included in chapter 6.3.
Scope 1 and 2 emissions
10 CO
2
emissions intensity (Scope 1 and 2)
(in tonnes per € million revenue)
10
CO
2
reduction target:
50% reduction in 2023 versus 2015
15 16 17 18 19 21 22 23 2420
0
5
10
15
20
25
30
7.5
3.3 Environmental
performance
Construction and
office waste
intensity
(in tonnes per € million revenue)
8.1
(2023: 8.7)
Environmental sustainability forms an integral part of BAM’s strategy. BAM’s performance on the targets in
the sustainability strategy is divided in the four key strategic environmental themes: Decarbonisation,
Circularity, Climate adaptation and Biodiversity. This chapter presents progress against strategic targets and
key initiatives. Supplementary disclosures and details are presented in chapter 6.3. BAM is committed to
advancing its sustainability efforts, which can be categorised into three key areas:
1. Showing progress: BAM has made notable progress towards its decarbonisation goals, particularly in
relation to Scope 1 and 2 emissions. While significant reductions have also been achieved in Scope 3
emissions, the Company remains focused on improving data quality and enhancing its portfolio to enable
further reductions in the years ahead. BAM’s position on CDP’s A list for the sixth consecutive year
highlights BAM’s consistent commitment to its decarbonisation goals.
2. Expanding efforts: In recent years, BAM has focused on developing and aligning frameworks for
biodiversity and climate adaptation. These efforts are critical for tracking progress and collaborating with
partners and clients. Looking ahead, BAM plans to implement several initiatives in these areas to ensure
the successful achievement of its strategic sustainability objectives.
3. Realigning intentions: In 2025, BAM intends to reiterate its sustainability strategy to ensure alignment
with evolving market conditions, organisational changes, and the latest climate policies.
CDP Climate
score
A
(2023: A)
Scope 3
CO
2
emissions
(in kilotonnes)
2.093
(2023: 2.552)
Scope 1 and 2
CO
2
emissions
intensity
(in tonnes per € million revenue)
7.5
(2023: 10.9)
CEO Message
23
Value creation
Business performance
Risk management and governance Supervisory Board Sustainability statement Financial statements Other information Appendices
Construction sites
The largest source of
CO
2
emissions remains the fuel use on BAM’s construction sites. In 2024, absolute
emissions from fuels used on construction site were 22 kilotonnes compared to 36 kilotonnes in 2023.
This decrease was caused by electrification of equipment and replacing diesel with hydrotreated
vegetable oil (HVO).
BAM continues its focus on the electrification of equipment to reduce CO
2
emissions on its
construction sites and the dependency on fossil fuels. In the Netherlands, BAM aims to replace small
equipment that needs replacement by electric alternatives. BAM is piloting electric equipment on its
projects, for example the first electric 9-ton tandem roller which has been taken into service at
Schiphol airport in 2024.
The electrification of equipment is not sufficient to reach BAM’s short term CO
2
reduction targets, which
is why BAM is also replacing conventional diesel with sustainably produced HVO. The use of HVO increased
to 9 million litres in 2024 compared to almost 5 million litres in 2023. HVO now covers 54% of the fuel use
on construction sites, saving circa 24 kilotonnes of CO
2
emissions.
11
Absolute CO
2
emissions (Scope 1 and 2)
(in kilotonnes)
Construction site Vehicle fleet
Energy use offices
21 22 23 2420
0
20
40
60
80
100
120
49
The replacement of fossil fuels by biofuels continues to spark debate. This discussion is focused on
proving the true sustainability of apparently lower-carbon biobased fuels, which is sometimes
questioned due to potential adverse impacts (e.g. land-use change) during the production of
biomass. BAM has given careful consideration to the use of HVO and remains satisfied that it is a
necessary and suitable transition fuel to reduce CO
2
emissions in the short term.
Company car fleet and electricity consumption
The emissions from the vehicle fleet, which account for 43% of BAM’s total Scope 1 and 2 CO
2
emissions, decreased by 15% compared to 2023. The number of fully electric lease vehicles increased
to 2321 in 2024 (a share of 66% of the total lease fleet). Driven by the electrification of the vehicle
fleet, BAM’s electricity consumption in vehicles increased by 85% to 14.1 million kWh, compared to
7.6 million kWh in 2023.
A large share of BAM’s electricity consumption is being generated by the charging of its electric fleet. On
most of BAM’s locations renewable electricity is used, but BAM cannot guarantee that renewable
electricity is used for public and home charging. As a result, the rapid increase in electricity use for
charging BAM’s vehicle fleet has resulted in a decrease in BAM’s renewable electricity share to 64% in 2024
(2023: 69%). BAM is exploring several options to support the use of renewable electricity in public and
home charging to maintain the push towards BAM’s target of 100% renewable electricity use in 2030.
Scope 3 emissions
BAM’s ambitious Scope 3 reduction target for 2030 underlines BAM’s commitment to reduce CO
2
emissions in the value chain. Initiatives are ongoing to reduce emissions associated with the use of
raw materials, including pursuing opportunities to use more sustainable materials, such as timber,
recycled steel and lower carbon concrete. BAM is starting to steer on underlying drivers, such as % of
recycled steel use and % of lower carbon concrete use. An example of a lower carbon concrete
initiative is ‘GROENR BETON’, a concept developed by BAM that leads to a reduction of 15 to 20% CO
2
emissions compared to traditional mixtures. The characteristics of GROENR BETON are comparable
to those of traditional concrete, making it suitable for many applications.
To reduce downstream emissions, BAM tries to construct as many low carbon assets (A+++ and
A++++ label) as possible as these have a significantly lower energy consumption during their lifespan.
BAM is increasingly delivering low and net-zero carbon assets. A key example is the delivery of the
Southam College project in the United Kingdom in 2024. This project is part of the Department for
Education’s Pathfinder programme, and serves as a model for exploring pathways to achieving Net
Zero. As such, this project provided valuable insights that will fuel future developments.
In 2024, BAM also continued its efforts to improve the quality of measurement of Scope 3. BAM has
explored several options to unlock activity data on its purchased goods and services, such as supplier
data, data from cost calculation models and data from building information modelling. While some
of these options provided promising opportunities, BAM has not yet managed to use activity data for
its upstream Scope 3 calculation, mainly because processes and controls to validate data quality are
not yet in place. Therefore, BAM’s upstream Scope 3 data calculation is still 100% based on spend
data (description of applied methodology is provided in
chapter 6.3).
24
CEO Message Value creation
Business performance
Risk management and governance Supervisory Board Sustainability statement Financial statements Other information Appendices
BAM’s Scope 3 emissions for 2024 were estimated at 2,093 kilotonnes CO
2
. Figure 12 provides a
breakdown of the contribution of the several Scope 3 categories to BAM’s overall CO
2
footprint. The
inner circle of the diagram outlines the overarching categories of Scope 1, 2, and 3 emissions, with
the data highlighting that the majority (97.7%) of the impact stems from Scope 3. The outer circle
illustrates the subcategories reported by BAM, with seven categories under Scope 3. The largest
portion of the impact is attributed to two key categories:
• 3.1: Purchased Goods and Services, responsible for 63.6% of the total Scope 1, 2 & 3. The impact in
this category is caused by the CO
2
emissions emitted during the production of the resources BAM
used for the construction of its projects. The major drivers of this impact were concrete and steel
for which BAM has different reduction initiatives in place.
• 3.11: Use of Sold Products, accounting for 25.0% of the Scope 1, 2 & 3 impact was caused by the
energy consumption of the assets BAM constructs during its entire lifespan. The construction of
low energy assets is a focus for BAM, to further reduce this environmental impact, even though a
large part of this impact is outside of BAM’s direct sphere of influence.
12 Breakdown Scope 1,2 and 3 CO
2
emissions
Scope 3.1: Purchased goods & services
Scope 3.2: Capital goods
Scope 3.3: Fuel and energy related activities
Scope 3.5: Waste generated in operations
Scope 3.6: Business travel
Scope 3.7: Employee commuting
Scope 3.11: Use of sold products
Scope 3.12: End-of-life treatment of sold products
Scope 3.15: Investments
1.9%
0.4%
97.7%
63.6%
5.0%
0.8%
0.7%
0.3%
0.1%
25.0%
2.1%
< 0.1%
Scope 1
Scope 2
Scope 3
BAM also recalculated the emissions for its baseline 2019 in 2024. A comparison of BAM’s Scope 3
footprint between 2019, 2023, and 2024 reflects a consistent reduction in impact (see figure 13).
BAM’s 2024 Scope 3 footprint (2,093 kilotonnes) is 18% lower than the Scope 3 CO
2
emissions in 2023
(2,552 kilotonnes). The difference 2023 and 2024 was mainly the result of lower emissions in the
category use of sold products. This category is estimated based on the delivered products in the
reporting year, which can heavily fluctuate from year to year. In 2024, BAM delivered less assets than
in 2023 and on average the estimated energy use of the delivered assets also decreased.
A direct comparison with 2019 remains challenging due to differences in data quality, data collection
and processing methodologies. The estimation for 2019 is based on 18% extrapolation, compared to
5% in 2024. The largest uncertainty lies in the downstream reduction. The downward trend looks very
promising, but it is important to understand that these emissions can heavily fluctuate based on
BAM’s portfolio of delivered assets in the reporting year. Upstream emissions seem to remain
relatively constant, but that is primarily the result of the limitations of the spend-based methodology
used. In reality, BAM expects that upstream reductions have occurred which are not captured in the
spend-based methodology. This underlines the importance to continue BAM’s efforts to unlock
reliable activity data to replace spend data going forward.
13
Scope 3 CO
2
emissions (kilotonnes)
Target (-50% in 2030)
2019 21 22 23 24 26 27 28 29 3025
8.1
500
1.000
1.500
2.000
2.500
3.000
3.500
Upstream Downstream
BAM’s climate action acknowledged
BAM was awarded a place on the prestigious CDP Climate A List for the sixt consecutive year,
recognising BAM’s efforts in CO
2
reduction and transparent reporting. CDP regularly increases the A
list criteria and the CDP Climate A list therefore remains an important confirmation fthat BAM is
doing the right things when it comes to mitigating climate change. BAM was also again included in
the Europe’s Climate Leaders 2024 list of the Financial Times, a list of the top 600 European
companies that have reduced their greenhouse gas emissions in the past five years the most.
Circularity
BAM aims to deliver more circular solutions to limit the use of primary materials and the
environmental impact of these materials. BAM’s circularity approach is centred around: 1) applying
tools to support circular solutions (material passports and circularity assessment); 2) reducing the use
of virgin materials by reusing, recycling and considering alternative materials and 3) waste reduction.
CEO Message
25
Value creation
Business performance
Risk management and governance Supervisory Board Sustainability statement Financial statements Other information Appendices
BAM’s circularity targets are:
• 2030: -50% non-biobased virgin materials versus 2019
• 2030: A,B,C and industrialised projects with design in their scope to use the material passport
• 2030: A,B,C and industrialised projects with design in their scope to use the circularity assessment
• 2030: -75% construction and office waste intensity versus 2015
Material passports and circularity assessment
BAM is proactively offering material passports and circularity assessments to clients to stimulate the
transition towards a more circular economy. The aim of a material passport is to ensure that the materials
retain their value for reuse or recycling. A circularity assessment provides insight into the extent to which
a building uses recycled materials and into the reusability and detachability of materials used. In 2024,
circularity assessments were offered in 71% and materials passports were offered in 63% of the A+B tenders
with design in scope. This promising results is mainly supported by the developments in the United
Kingdom and Ireland where BAM has started to offer circularity assessments and materials passports in
2024 as well. BAM is also supporting Madaster as a pioneer partner of their newly formed United Kingdom
and Ireland market, meaning BAM will help shape the solutions for materials passports going forward.
Material passports and circularity assessments are currently only delivered when they are valued by
the client, as these require a significant investment. In 2025, BAM will evaluate its approach and decide
whether targets on the delivery of material passports and/or circularity assessments remain a logical
and valuable next step.
Reduce use of non-biobased primary (virgin) material
BAM is targetting to reduce the usage of primary materials to improve circularity and to drive down
upstream CO
2
emissions. BAM focusses on a few key materials: concrete, steel, asphalt and timber.
Accurately mapping these materials remains a challenge for the Company, but BAM is now able to
estimate the quantities and percentage recycled content of these main materials used on its construction
projects (see chapter 6.3). BAM estimates that the recycled content of steel used by the Company is
already substantial (> 75%) contrary to the use of recycled asphalt (< 30%) and concrete (< 5%).
Waste reduction
BAM continues to gradually reduce its waste figures. The construction and office waste intensity was
reduced by 7% to 8.1 in 2024 (2023: 8.7). Besides reducing waste, BAM also continues to explore
opportunities to repurpose waste. Examples in 2024 include the repurpose of pallets that would
otherwise be discarded by having a company collect all types of pallets for re-use purposes, substantially
reducing timber waste on construction sites. Even though the focus of BAM is on reducing and re-using
waste, recycling is still an important part of the Company’s waste streams. BAM’s ‘recycle or reuse’ rate
remained stable at 83% (2023: 83%).
14 Construction and office waste intensity
(in tonnes per € million revenue)
9.4
Waste reduction target:
75% reduction in 2030 versus 2015
0
5
10
15
20
25
1615 17 18 19 20 22 23 2421
8.1
15
Construction and office waste production per destination category
(in kilotonnes)
Recycling / re-use Incineration with energy recovery Landfill and incineration without energy recovery
0
30
60
90
120
20
21 22 23 24
52.2
Climate adaptation
BAM and many other organisations are committed to mitigate climate change, but BAM also
acknowledges the reality that the climate is already changing and is expected to change further in
the coming decades. That is why BAM has selected climate adaptation as one of its sustainability
strategic themes. For BAM, climate adaptation is about adapting the built environment to increase
climate resilience, meaning that the assets BAM delivers can withstand severe climate, such as heavy
precipitation, drought and rising sea levels. Climate-adaptive solutions are also increasingly
demanded by communities, clients and regulators. BAM’s targets related to climate adaptation are:
• 2026: Climate-adaptive measures to be integrated in all BAM’s own developments
26
CEO Message Value creation
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Risk management and governance Supervisory Board Sustainability statement Financial statements Other information Appendices
• 2026: Offer climate-adaptive measures in all A, B and C tenders with a design scope
• 2030: Climate-adaptive measures to be integrated in all projects
Performing a climate risk scan was already the standard within BAM in the Netherlands. In 2024,
BAM has also developed a climate risk scan for the United Kingdom and Ireland based on the solution
of the partner South Pole. As a result, BAM is progressing ahead of schedule and has offered climate
adaptive measures in 96% of its A+B tenders with design in scope in 2024. The progress puts BAM in
a good position to work towards its 2026 target, where the main challenge is to also ensure climate
risks scans are performed and adaptive measures are included in all C (smaller category) tenders.
Biodiversity
Biodiversity loss, together with climate change, is increasingly considered a severe threat to the
planet, society and economy. Economies depend on healthy and resilient ecosystems and mitigating
climate change can only truly be achieved by addressing biodiversity loss. Recognising the
importance of nature, BAM included biodiversity as a key topic in its sustainability strategy.
BAM’s biodiversity targets are:
• 2026: Biodiversity enhancing alternatives to be offered in all A, B and C tenders and developments
with design in their scope
• 2026: Evidenced biodiversity balanced on all projects in the United Kingdom and Ireland
• 2030: Aggregated positive impact on biodiversity
In recent years, BAM has explored various methodologies to assess the biodiversity impact of its
projects. As BAM’s understanding has advanced, the focus of these frameworks has shifted from
measuring impact to measuring effort, recognising that quantifying actual biodiversity impact is
extremely difficult and not possible within BAM’s current operations. As a result, the actions BAM is
currently taking do not fully align with the targets set for 2026 and 2030. To avoid greenwashing and
ensure long-term sustainability, BAM is reviewing and benchmarking these goals against industry
standards and best practices.
BAM has introduced a new methodology for measuring biodiversity impact, known as BAM Biodiversity+.
This assessment was originally developed in the UK&I and has been adapted to the Dutch context in 2024.
In 2024 this scan has been trialed in 12 projects in the Netherlands. To account for the different level of
maturity this topic has in the both divisions slight changes have been made to the assessment in several
iterations without losing the alignment between the two versions. In the UK&I, Biodiversity+ assessments
of completed projects have commenced to establish a baseline and identify key priorities for 2025. At the
same time, BAM is investing in upskilling its workforce by addressing biodiversity knowledge gaps and the
upcoming launch of a dedicated Biodiverstiy ‘Design & Build Library’.
An example of BAM’s biodiversity strategy in action is BAM’s contribution to the creation of a dedicated
“Sparrow Garden” at the Lightyard project in Eindhoven. The location of the two residential towers was
previously a habitat for house sparrows. To mitigate the loss of the sparrow population, a specially
designed reserve has been established diagonally opposite the construction site. The garden is carefully
designed to cater to the needs of house sparrows, featuring ample shrubbery for shelter and plants that
attract insects. While the sparrow garden is currently considered a temporary initiative,
the municipality has not ruled out its continued existence following the completion of the project.
This would complement the 2,400 m² of green space already planned within the residential area.
Biodiversity+
To guide project teams and align their efforts with BAM’s biodiversity objectives, BAM has
developed the Biodiversity+ Assessment Tool. This comprehensive tool, comprising eight primary
themes and 29 subthemes enables BAM to assess its efforts in minimizing negative biodiversity impacts.
The five drivers addressed in the BAM Biodiversity+ assessment are:
• Habitat Creation
• Sustainable Resourcing
• Carbon Reduction
• Pollution Avoidance
• Biosecurity
While the primary focus of this approach is on
biodiversity, it also incorporates broader
environmental services to deliver additional
benefits such as ecosystem services. BAM is
actively exploring the feasibility of
implementing an overarching biodiversity
metric-based framework. However, at this stage,
the company is prioritising a contributions-based
assessment to enhance practices, foster collaboration,
and identify opportunities for improvement.
Having completed a pilot and refinement phase, BAM is confident that the criteria within the
Biodiversity+ assessment effectively address a wide range of project-specific and local requirements.
CEO Message
27
Value creation
Business performance
Risk management and governance Supervisory Board Sustainability statement Financial statements Other information Appendices
28
Risk management
and governance
The new office of dsm-firmenich in
Maastricht is a combination of a
‘Paris Proof’ historic building and a
new construction that meets the
highest sustainability standards,
including BREAAM Outstanding and
WELL Platinum. The building is
the homebase for about 600
dsm-firmenich employees.
Maastricht,
BAM Bouw en
Techniek
CEO Message
29
Value creation Business performance
Risk management and governance
Supervisory Board Sustainability statement Financial statements Other information Appendices
functional leads in both divisions, Belgium and
at Group level are responsible for managing risks
and controls and performing self-assessments
for their design, implementation and operating
effectiveness.
The risk and control function reviews the
operating effectiveness of the control
requirements framework. Reviews of controls
are performed throughout the year, based on a
pre-defined schedule covering the full year. The
results are reported to the Executive Board and
the Audit Committee.
The internal audit function validates the control
assessments and reports its obervations to the
Executive Board and the Audit Committee.
Internal audit also provides business managers
and the risk and control function with
recommendations to further improve the
design, implementation and/or effectiveness of
control requirements.
The results of effectiveness testing of the
control requirements together with the
reporting of control incidents (if any) and
internal and external audit findings are taken
into consideration by business management and
division management in their internal reporting
of in control statements.
These internal in control statements form the
basis for managerial accountability for the
effectiveness of the control requirements
framework. Any deviations from the internal
control requirements framework are reported,
including remediations and follow-up actions to
resolve them.
4.1 Risk management
In the ordinary course of business, BAM is
willing to take risks while benefitting from
opportunities. Risk management is an essential
activity to ensure risks and opportunities are
identified and addressed in a controlled manner.
The Company’s risk management activities are
designed to support long-term value creation.
Risk management framework
In line with the requirements of the Dutch
Corporate Governance Code, BAM’s risk
management framework is based on the
Committee of Sponsoring Organisations (‘COSO’)
of the Treadway Commission Enterprise Risk
Management Framework from 2017. It provides a
standardised framework for identifying risks,
mitigating actions and implementing controls.
The risk management framework ensures that
BAM’s activities are managed in a controlled
manner and in accordance with the strategy and
related risk appetite.
The Executive Board is responsible for risk
management and maintaining an effective
control system. The Executive Board is
supported by the Risk and Control Committee
(“RCC”) and supervised by the Supervisory
Board. The RCC is established to coordinate and
advise on the implementation of the risk
management framework enabling an
integration of risk management and the control
system. The RCC is chaired by the CFO and
includes risk and control specialists as well as
representatives from both divisions.
The risk and control function, at Group level and
in the divisions, supports the Executive Board
and senior management in risk management
activities. This includes providing support in
performing risk assessments and monitoring of
the design and operating effectiveness of
control procedures.
Risk management activities are subject to a
three lines model to ensure robust governance
and efficient implementation throughout the
organisation.
Key risk areas and risk appetite
The identification of BAM’s key risk areas is a
process that includes establishing the risk
appetite by the Executive Board. This is followed
by structured risk assessments to determine the
risk profile and the monitoring of mitigating
actions. The key risk areas are categorised
into strategic, operational, financial and
compliance risks.
Risk appetite is defined as the level at which
BAM is willing to accept risk in the ordinary
course of business to achieve its objectives. A
risk appetite is established in accordance with
the Company’s strategy. The Executive Board
validates the risk appetite of key risk areas on a
yearly basis and performs a reassessment when
required by a change in facts or circumstances,
such as a change in laws and regulations or
change of strategy.
The Company’s general risk appetite per risk
category is as follows:
• Strategic risks – BAM takes a balanced
approach to risk and reward to achieve its
strategic objectives and continues to invest in
innovation through digital and sustainable
technologies and solutions;
• Operational risks – BAM seeks to limit risks
that may jeopardise the execution of its
business activities;
• Financial risks – BAM strives to maintain a
solid financial position, ensuring access to the
financial markets and retaining its clients,
supply chain and other partners. BAM wants
to provide an insightful, fair and accurate
representation of its performance and
economic results;
• Compliance risks – Compliance with all
applicable laws and regulations including
BAM’s code of conduct is of fundamental
importance to the Group.
Risk assessments reflect on the risk profile and
the risk trend versus the Company’s risk
appetite. These are executed in the divisions,
Belgium and at Group level and include defining
of mitigating actions and monitoring of their
effectiveness. Risks are
assessed and prioritised
based on their probability of occurrence, their
potential impact and the effectiveness of
mitigating measures.
BAM’s risk framework addresses 20 key risk
areas. The key risk areas relevant for 2024, their
risk trend, risk appetite and mitigating measures
are summarised on pages 31 to 35.
Internal controls
BAM has a control requirements framework to
manage risks, to prevent material
misstatements in (non)financial reporting and to
ensure compliance with laws and regulations.
This framework addresses BAM’s key risk areas
by defining control requirements to be executed
in the business. Business managers and
30
CEO Message Value creation Business performance
Risk management and governance
Supervisory Board Sustainability statement Financial statements Other information Appendices
It should be noted that the above does not imply
that these systems and procedures provide
absolute assurance as to the realisation of
operational and strategic business objectives,
or that they can prevent all misstatements,
inaccuracies, errors, fraud and non-compliances
with legislation, rules and regulations. Nor can
they provide certainty that BAM will achieve its
objectives.
Furthermore, the Executive Board confirms that,
to the best of its knowledge:
• The financial statements give a true and fair
view of the assets, liabilities, financial position
and profit or loss of BAM and the subsidiaries
included in the consolidation;
• The sustainability statement is prepared in
accordance with the European Sustainability
Reporting Standards (ESRS) as adopted by the
European Commission, Taxonomy Regulation
and in accordance with the Company’s double
materiality assessment;
• The Executive Board report provides a fair
review of the position at the balance sheet
date, the development and performance of
the business during the financial year;
• The Executive Board report describes the
principal risks and uncertainties that the
Group faces.
BAM strives for continuous improvement of its risk
management activities. In 2024 this resulted in a
next step in the maturity of adhering to control
requirements, evidenced by higher effectiveness
scores versus 2023 and years before. The
management of the divisions and Belgium have
confirmed and signed the internal in control
statement 2024 which supports the Executive
Board in its assessment of the effectiveness of the
design and operation of the internal control and
risk management systems.
Executive Board statement
In accordance with the Dutch corporate
governance code and the Financial Supervision Act
(‘Wet op het financieel toezicht’), the Executive
Board confirms that, to the best of its knowledge:
• The Executive Board report provides sufficient
insights into any failings in the effectiveness of
the internal risk management and control
systems of Royal BAM Group;
• The aforementioned systems provide
reasonable assurance that the financial
statements do not contain any material
inaccuracies;
• Based on the current state of affairs, it is
justified that the financial statements are
prepared on a going concern basis;
• There are no material risks or uncertainties that
could reasonably be expected to have a material
adverse impact on the Group’s continuity for
the period of twelve months after the
preparation of the financial statements.
New Lock Terneuzen
Sassevaart joint venture (including BAM Infra Nederland)
delivered Nieuwe Sluis (new lock) in Terneuzen for client
VNSC (Vlaams-Nederlandse Scheldecommissie).
CEO Message
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Value creation Business performance
Risk management and governance
Supervisory Board Sustainability statement Financial statements Other information Appendices
Risk area Description Management measures
Strategic risks
Market risk
Appetite
Trend
BAM operates in highly competitive markets and is
exposed to market volatility.
Fierce competition may
have an adverse impact on a project’s margin, its risk
profile and financing structure or may lead to a lack of
projects.
• A strategy is in place that focuses on product-market-combinations (‘PMCs’) that are attractive
from a financial and sustainability perspective. The tender procedure verifies that a tender complies with this strategy.
• BAM implemented a focus on key clients to mutually benefit from a long-term relationship and to reduce the impact of
short-term market volatility.
• BAM’s tender process verifies that a project’s margin, risk profile and financing structure comply with the requirements set
by the Executive Board.
Transformation and innovation
Appetite
Trend
BAM’s strategy involves a transformation that focuses on
differentiation from competition on product and process
leadership through priorisation of innovation and
sustainability. Missing out on transformation and
innovation opportunities has an adverse impact on BAM’s
competitive position and financial and sustainability
performance.
• A strategic transformation agenda is in place to provide focus for transformation initiatives. The Executive Board allocates
appropriate resources and budgets to the respective initiatives and monitors progress.
• Together with supply chain partners and through client collaboration, BAM continuously seeks product improvements
with sustainability as a key focus. Examples are low carbon asphalt and concrete and x-pods.
• BAM may also leverage its size and market leadership to invest in promising and attractive innovations through capital
expenditures or mergers and acquisitions.
Key risk areas
The following table summarises BAM’s key risk areas, the respective risk appetite and management’s measures to bring the risk in line with the risk appetite.
Risk appetite level What does it mean
Very low BAM has (almost) no appetite for materialisation of these risks.
Low BAM accepts these risks to materialise at a low likelihood and/or impact.
Medium BAM accepts these risks to materialise with a medium likelihood and/or impact.
High BAM is risk taking and accepts that these risks may materialise with a high likelihood and/or impact.
Very high BAM is very risk taking and accepts these risks may materialise with a very high likelihood and/or impact.
Trend level
Increased (residual) risk
Neutral risk trend
Decreased (residual) risk
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CEO Message Value creation Business performance
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Supervisory Board Sustainability statement Financial statements Other information Appendices
Risk area Description Management measures
Operational risks
Safety
Appetite
Trend
The nature of BAM’s business can pose occupational
health and safety risks. The well-being, safety and
work-related ill health effects (long term) of its workforce
are of vital importance to the Company.
• BAM implemented a safety management system covering its workforce (employees and subcontractors). The safety
system complies with the ISO 45001:2018 standard for occupational health and safety management systems.
• Safety is a top priority in BAM’s code of conduct and both divisions have a dedicated safety function that validates
compliance with safety requirements and monitors the safety performance.
• Safety activities during the year include toolbox meetings, risk assessments, investigation of incidents, safety (culture)
audits, trainings and an annual safety day. Also, safety specialists and senior leaders perform project safety visits.
Further details about policies and performance on health and safety are described in chapter 6.4.
Property development
Appetite
Trend
Property development projects may be postponed or
completed at higher costs or lower income than
expected. Furthermore, the realisable value of land bank
and property development positions may be lower than
the book value.
• A property policy is in place that specifies conditions and requirements for investment opportunities.
• BAM implemented a property procurement process covering all property development investments. The process requires
various approvals by senior managers to verify compliance with the property policy to ensure a development’s risk profile is
in line with the Group’s risk appetite.
• Start of construction of a property is also subject to an approval process to manage financial risks involved in construction.
Generally, construction does not commence unless at least 70% of the project is sold.
• A yearly review process is implemented to compare the book value of land bank and property developments to their realisable value.
Project tendering
Appetite
Trend
Selecting the right projects against balanced contractual
conditions and climate, environmental and social impact
is crucial. Failure to deliver on this may impact project
execution and lead to fluctuations in the financial and
non-financial results.
• A tender policy is in place that defines requirements for tender proposals. The policy does not allow tendering on
single-stage, lump-sum projects above €150 million.
• BAM implemented a tender assurance process that involves various approvals by senior managers to verify compliance
with contractual and commercial requirements to ensure a project’s risk profile is in line with the Group’s risk appetite.
Project execution
Appetite
Trend
The Group is constantly active in thousands of projects
which exposes it to a wide variety of risks, in a sector
known for its asymmetrical risk profile.
• Projects are executed by BAM’s highly skilled and qualified employees under the leadership of a project manager and/or
project management team. The project manager or project management team is facilitated in their oversight by project
monitoring tools and dashboard.
• A comprehensive risk and opportunities management process is in place to identify, evaluate (and mitigate) risks and
opportunities in the execution of projects.
• The operational, financial and sustainability performance of projects is reported to and evaluated by the management team
of business units. The performance for ‘key projects’ is reported to the Executive Board on a monthly basis. Key projects are
projects with a high risk profile or substantial contribution to the Group’s results or cash-flows.
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Value creation Business performance
Risk management and governance
Supervisory Board Sustainability statement Financial statements Other information Appendices
Risk area Description Management measures
Operational risks
Supply chain
Appetite
Trend
BAM purchases approximately 70% of its revenue from
suppliers and subcontractors. Poor quality of services or
materials and/or volatility in purchase prices may
negatively affect the Group’s financial and sustainability
performance.
• A procurement policy is in place that focusses on long-term relationships with several key suppliers to avoid dependency
on one supplier and to secure appropriate volumes of key materials. The policy also requires use of standard contracts,
vendor code of conduct and terms and conditions.
• Procurement of materials and subcontractors is managed by the procurement specialists to ensure compliance with the
procurement policy.
• The project tender process includes procedures to assess supply chain risks, including price volatility. Exposure to such
volatility is generally limited through price indexation reimbursement clauses in contract with customers.
Human resources
Appetite
Trend
Attracting, retaining, developing and engaging diverse
talent is crucial, as it enables the Company to deliver its
strategy and to build on an inclusive culture that is
resilient to market changes. This attractive employee
experience, labeled ‘The BAM Experience’ is essential to
remain a preferred employer in a competitive market.
• Employees are guided by BAM’s five values, sustainable, inclusive, reliable, ownership and collaborative, and united by
BAM’s unique culture. The values are also reflected in the ten competencies in the BAM leadership framework.
• A comprehensive performance and development process is implemented to pursue sustainable career development for all
employees. BAM’s development activities include a traineeship programme as well as tailor-made programmes for project
managers and (future) senior leaders.
• BAM offers fair rewards at a competitive level, encouraging personal growth while safeguarding personal wellbeing.
• BAM launched an attractive employer branding campaign and has a professional team of recruiters to increase the inflow
of diverse talent. BAM fosters an internal mobility culture to enhance career perspectives for employees.
Information technology and security
Appetite
Trend
Digitalisation, data, communication, and connectivity
are essential for BAM. However, these elements also
present cyber-security challenges, necessitating the
Company’s continuous adaptability.
• BAM has a dedicated information security function led by the Director Security.
• Information security processes are based on the NIST cybersecurity frameworks and comply with with ISO27001
standards.
• The information security function is subject to a periodical maturity assessment by an independent party.
Business continuity
Appetite
Trend
Crisis and business continuity disruptions can have
a material effect on the Company’s operations
due to risks such as natural disasters, influenza and
pandemics.
• BAM has a crisis management and business continuity policy to address significant disruptions. This policy includes a
description of the organisation, processes and responsbilities. This is further elaborated in underlying procedures and
instructions such as disaster and business recovery procedures.
• A crisis management team is implemented at group and in both divisions to manage and supervise the business continuity
system and to ensure continuity in a safe and healthy manner on project sites, in offices and at home.
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CEO Message Value creation Business performance
Risk management and governance
Supervisory Board Sustainability statement Financial statements Other information Appendices
Risk area Description Management measures
Operational risks
Sustainability - climate change
Appetite
Trend
Climate change-related risks are related to climate
mitigation and climate adaptation. Climate mitigation
involves risks of operating in a CO
2
intensive industry while
climate adaptation risks are related to the effects of global
warming, causing extreme weather conditions such as
storms, heat waves and flooding.
• BAM’s strategy of ‘Building a sustainable tomorrow’ intends to contribute to creating a sustainable future for clients,
colleagues, society, and future generations.
• BAM is committed to an 80% reduction of its Scope 1 and 2
CO
2
intensity by 2026 (versus 2015) and a 50% reduction in
Scope 3 CO
2
emissions by 2030 (versus 2019).
• BAM is committed to integrate climate adaptive measures in all projects by 2030.
For further details, refer to
chapter 6.4.
Sustainability - environmental impact
Appetite
Trend
The construction industry has a negative impact on the
environment due high levels of use of natural resources,
pollution in the supply chain and negative effects on
biodiversity through land use change. A potential
positive impact is the contribution to ecosystem services
(benefits to humans provided by the natural
environment and healthy ecosystems).
• BAM’s strategy of ‘Building a sustainable tomorrow’ intends to contribute to creating a sustainable future for clients,
colleagues, society, and future generations.
• BAM is committed to a 50% reduction of non biobased virgin materials by 2030 (versus 2019) and a 75% reduction of
construction and office waste intensity by 2030 (versus 2015).
• BAM is committed to the use of material passports and circularity assesments on projects with certain characteristics by
2030.
For further details, refer to
chapter 6.4.
CEO Message
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Value creation Business performance
Risk management and governance
Supervisory Board Sustainability statement Financial statements Other information Appendices
Risk area Description Management measures
Compliance risks
Financial and sustainability reporting
Appetite
Trend
Providing insightful, fair and accurate representation of
the Group’s financial and sustainability performance is
essential for trust in BAM. Material misstatements in
reports may lead to a loss of confidence of internal and
external stakeholders.
• BAM has a financial reporting manual and sustainability reporting manual to ensure all subsidiaries apply the same reporting
principles. The financial reporting manual complies with IFRS accounting policies and the sustainability reporting manual complies
with CSRD reporting policies.
• The central finance function and sustainability reporting function monitor compliance with the reporting manuals. Both functions
coordinate, support and approve (the interpretation of) complex reporting matters.
• Periodic reviews by management, finance, sustainability and risk functions underpin the insightful, fair and accurate representation
of performance and economic results, and aim to prevent any material misstatements due to fraud or errors.
Regulatory and reputation
Appetite
Trend
Regulatory compliance and the trust of clients,
shareholders, lenders, construction partners and
employees in BAM is vital to ensure the continuity of the
Company. Non-compliance may result in administrative,
civil or criminal liabilities including fines and penalties and
suspension or debarment from government or non-
government contracts.
• BAM’s code of conduct and related policies such as those relating to bribery, corruption and competition align with generally
accepted standards and values and local legal and other rules and regulations.
• All employees are required to confirm compliance with the code of conduct.
• BAM has a robust speak up procedure (including an anonymous external reporting line) for (suspected) breaches of the code of
conduct and policies. The compliance function investigates matters reported in the speak-up procedures, monitors compliance
with laws and regulations and advises on integrity issues.
In December 2024, the Dutch Public Prosecutions Office (DPPO, Openbaar Ministerie) closed its pending investigation into BAM
International from 2022 and dismissed their suspicions. BAM conducted its own internal review in connection with the DPPO’s
investigation and identified certain potentially irregular payments in connection with an unrelated completed project in Africa. BAM
self-reported these potentially irregular payments to the DPPO. The DPPO concluded that not all of these payments were properly
recorded in BAM International’s administration and imposed a fine of €30,000.- on BAM International through a penalty order. BAM
will not appeal the penalty order.
Dutch corporate governance code
In 2023, an updated version of the Dutch
Corporate Governance Code (‘the Code’) entered
into effect. The Code is based on the comply-or-
explain principle and applies as from the financial
year 2017.
The application of the Code by BAM, as
described in this chapter, is part of the
Company’s ‘Corporate governance statement’
as specified in article 2a of the Decree on the
contents of the Executive Board report.
The other information which completes
this statement is specified in
table 16.
Compliance with the Code is described in the
Corporate governance compliance overview that
is available on the Company’s website and that
should be read in conjunction with this section.
BAM complies with the principles and best
practices of the Code. In accordance with the Code,
the Company will submit any substantial changes
in the main features of its corporate governance
structure to the General Meeting for discussion
purposes. The corporate governance structure of
the Company was reviewed by the Executive Board
and Supervisory Board in December 2024.
The BAM corporate governance compliance
overview was last updated on 12 February 2025.
Diversity and inclusion
The Code stipulates that the diversity and
inclusion policy, related targets and performance
for the Company’s Supervisory Board, Executive
Committee and sub-top should be explained in the
Executive Board report. BAM has defined the
sub-top as its senior leadership group (SLG). The
reporting requirement is addressed in chapter
3.2 section ‘Female representation’.
Sustainability
The Corporate Governance Code prescribes in
section 1.1 that the Executive Board should
develop a view on sustainable long-term value
creation by the Company, formulate a strategy in
line with this, including specific objectives. When
formulating the strategy the Executive Board
should pay attention to – amongst others – the
impact of the Company in the field of
sustainability, including the effects on people and
the environment.
BAM’s strategy is build on sustainability and takes
into consideration the Company’s effects on
people and the environment. Further information
is provided in chapter 2.2. To ensure that the
interests of the relevant stakeholders of the
Company are considered when the substantiality
aspects of the strategy are updated, BAM has
formulated an outline policy for effective
dialogue with those stakeholders, which is
published on the Company’s website.
Capital information
The Company has three classes of shares:
ordinary shares, preference shares B and a series
of preference shares F. At the balance sheet
date, only ordinary shares were issued and these
are traded on the Euronext Amsterdam stock
exchange. Note 23 of the financial statements
provides further information about the
Company’s capital structure. An overview of
rights attached to the three classes of shares is
included in table 17 and a summary of the
statutory arrangements with respect to the
distribution of profit is included in chapter 8.2.
The restriction on transfer of preference shares
B provides the Company the opportunity –
because of the specific purpose of issuing them,
namely the acquisition of finance or achieving
protection – of offering the holders of these
shares an alternative in the event that they wish
to dispose of their shares. The Company granted
Stichting Aandelenbeheer BAM Groep
(Foundation Preference Shares BAM Group, or
“the Foundation”) the option to acquire
preference shares B.
This option was granted up to such an amount
as the Foundation might require, subject to a
maximum of a nominal amount that would
result in the total nominal amount of preference
shares B in issue (and not held by the Company)
equalling no more than 99.9% of the nominal
amount of the issued share capital of the other
shares classes (and not held by the Company).
The Company and the Foundation agreed that
the Company will not issue these shares or grant
any rights to purchase them to anyone else
without the Foundation’s permission.
The Foundation will not dispose of or encumber
any preference shares B, nor renounce their
voting rights, without the Company’s
permission. Further information about the
Foundation is included in chapter 8.3.
4.2 Corporate governance and capital information
16
Corporate governance statement
Requirement Addressed in
Corporate governance structure and compliance
with principles and best practices of the Code
This chapter; a full compliance overview is
available on the Company’s website
(www.bam.
com/en/about-bam/corporate-governance)
Principal characteristics of the Company’s
management and control system for its financial
reporting process
See
chapter 4.1
Functioning of the General Meeting and the rights
of shareholders
This chapter and further information is available
on the Company’s website (www.bam.com/en/
about-bam/corporate-governance)
Composition and functioning of the Executive
Board and the Supervisory Board (including its
committees)
See
chapters 4.3 and 5.1
Policy and report on gender diversity in the
Supervisory Board, Executive committee and
sub-top
See
chapter 3
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CEO Message Value creation Business performance
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Supervisory Board Sustainability statement Financial statements Other information Appendices
The Company operates an equity-settled long
term incentive plan (“LTI”) as futher disclosed in
note 29 of the financial statements.
Shareholders’ agreements
The Company is not aware of any agreements
involving one of the Company’s shareholders
and which might provide reasons for restricting
the transfer of shares or depositary receipts
issued with the Company’s cooperation or
restricting the voting rights.
Appointment and dismissal of members of the
Supervisory Board and members of the
Executive Board and amendment of the Articles
of Association.
The Company is obliged by law to operate a
mitigated two-tier structure. The General
Meeting appoints the members of the
Supervisory Board, based on a recommendation
from the Supervisory Board. The General
Meeting also appoints the members of the
Executive Board, with the Supervisory Board
having the right of recommendation.
A more detailed explanation of the rules
governing the appointment and dismissal of
members of the Supervisory Board and
members of the Executive Board can be found in
the Articles of Association of the Company, as
published on the Company’s website.
Resolutions to amend the Articles of Association
or to dissolve the Company may only be
adopted by the General Meeting pursuant to a
proposal of the Executive Board and subject to
the approval of the Supervisory Board.
Powers of the Executive Board
The Executive Board’s powers are those arising
from legislation and regulations. A more
detailed description of the Executive Board’s
duties can be found in the rules of the Executive
Board and the Executive Committee, available
on the Company’s website. In the general
meeting on 10 April 2024, the Executive Board
was authorised, subject to approval of the
Supervisory board to (i) issue ordinary shares
and Class F preference shares and to grant
options to acquire these shares and (ii) to have
the Company to acquire ordinary shares in the
Company’s capital.
This authorisation is limited in duration to
eighteen months. It is also limited in scope to
10% of the issued capital. In principle, the
General Meeting is asked to grant these
authorisations every year.
Resolutions to amend the Articles of
Association, or to dissolve the Company, may
only be passed by the General Meeting based on
a proposal put forward by the Executive Board
and approved by the Supervisory Board.
Change of control provisions in important
agreements
BAM differentiates the following categories of
agreements as referred to in the Decree on
Article 10 of the EU Takeover Directive:
• The Company has a €330 million syndicated
revolving credit facility (‘the RCF’) which
stipulates that a change of control provides
the lenders with the right to cancel their
undrawn commitments and declare
outstanding loans due and payable;
• The Company and its subsidiaries have
entered into various important agreements
that contain clauses that, in the event of a
change of control, provide the other party
with the right to terminate it. Individual
agreements are not considered key
agreements within the meaning of the Decree
on Article 10 of the EU Takeover Directive, but
jointly they are considered significant;
• The terms and conditions of the LTIs stipulate
that, upon the occurrence of a change of
control, the Supervisory Board may decide to
accelerate vesting on a prorated basis, both in
terms of time and performance. The
Supervisory Board is also authorised to
withdraw conditional and unconditional
performance shares in exchange for a cash
payment at market value.
17 Rights per class of shares
Rights Ordinary shares Preference shares B Preference shares F
Nominal value €0.10 per share €0.10 per share €0.10 per share
Voting rights in class-holders meeting One vote per share One vote per share One vote per share
Voting rights on general meeting One vote per share One vote per share One vote per share
Payment on shares Issue upon full payment Issue upon partial payment of at least 25%
of the nominal amount
Issue upon full payment
Pre-emptive right in the issue of ordinary shares Pre-emptive right for issue of new ordinary
shares, unless restricted or excluded by a
resolution of the general meeting
No pre-emptive rights No pre-emptive rights
Pre-emptive right in the issue of preference shares No pre-emptive rights No pre-emptive rights No pre-emptive rights
Restrictions on transfer of shares No restrictions Transfer requires approval of the Executive Board No restrictions
CEO Message
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Value creation Business performance
Risk management and governance
Supervisory Board Sustainability statement Financial statements Other information Appendices
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CEO Message Value creation Business performance
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Supervisory Board Sustainability statement Financial statements Other information Appendices
H.Th.E.M. (Henk) Rottinghuis (1956) Chairman
Mr Rottinghuis is a businessman who has held
senior executive and non-executive roles for
leading European companies across various
industry sectors. He served as CEO and chairman
of the Executive Board of Pon Holdings from 2001
until his retirement in 2010. He joined Pon in 1993
and became a member of the Executive Board in
1999. Before that, he fulfilled senior management
roles at Royal Nedlloyd Group. Since his
retirement from Pon, he has held several
Supervisory Board and non- executive director
positions, including at Royal Bank of Scotland,
Blokker, DRG (food retail), Stork (as chairman) and
CRH (cement building materials). Mr Rottinghuis
completed his studies at the University of
Groningen in 1982.
Mr Rottinghuis is a Dutch national.
Other offices: chairman of the Supervisory Board
of Chane Terminals and member of the
Supervisory Board of Damen Shipyards Group.
G. (Gosse) Boon (1959) Vice-Chairman
Mr Boon studied quantitative business
economics and commercial law at Erasmus
University Rotterdam. He completed the
postgraduate RA (Chartered Accountant)
programme at the same university. Mr Boon
started his career at Unilever. From 1983 to
2000, he held various senior positions within this
company, the latest being CFO of Unilever Brazil.
In the period 2000-2004, Mr Boon was CEO of
DiverseyLever Netherlands. Subsequently,
Mr Boon became CFO and member of the
Executive Board of private equity owned
Rijnmond Waste Processing and Van
Gansewinkel Group respectively. In 2010, he
joined publicly listed Nutreco and became its
CFO and an Executive Board member in 2011. In
2015, following the delisting of Nutreco, he
decided to leave this company.
Mr Boon is a Dutch national.
4.3 Supervisory Board and Executive Board
Biographies of the Supervisory Board members
Other offices: lay judge (expert member) of the
Companies and Business Court (Enterprise
Chamber), which is part of the Amsterdam Court
of Appeal, board member of Foundation
Continuity ASMI.
B. (Bob) Elfring (1959)
Mr Elfring obtained a master’s degree in Law
and Business Economics at the University of
Groningen. He started his career at Amsterdam-
Rotterdam Bank, followed by management
positions at Rabobank, Amsterdamse
Investeringsbank, MeesPierson and Lehman
Brothers. Between 2008 and 2011, he worked for
Credit Suisse, where among other tasks he was
responsible for Investment Banking in Northern
Europe and the Benelux. Between 2011 and 2018,
Mr Elfring worked for Bank of America Merrill Lynch,
where from 2012 onwards he was responsible for
Corporate and Investment Banking in Europe, the
Middle East and Africa, based in London. Between
2021 and 2024, he was Vice-Chair of EMEA
Investment Banking at J.P. Morgan Securities plc.
Mr Elfring is a Dutch national.
Other office: chairman of the Supervisory Board of
Vuyk Holding and member of the Supervisory
Board of ASR Nederland.
From the left:
N.M. (Nina) Skorupska,
G. (Gosse) Boon, D. (Denise) Koopmans, H.Th.E.M. (Henk) Rottinghuis, B. (Bob) Elfring
,
J.C. (Jane) Hanson and
M.P. (Paul) Sheffield
.
CEO Message
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Value creation Business performance
Risk management and governance
Supervisory Board Sustainability statement Financial statements Other information Appendices
N.M. (Nina) Skorupska (1961)
Dr Skorupska obtained a Doctorate degree in
Chemistry, Engineering and Geology at the
University of Newcastle upon Tyne and
subsequently conducted post-graduate research
at the same university. She started her
professional career with multiple research and
management roles at successively IEA Coal
Research and National Power plc. In 2001,
National Power was acquired by RWE where she
continued her career holding various senior
management and executive positions until 2012,
most recently as Chief Technology Officer at
Essent in ‘s-Hertogenbosch, where she was
responsible for Essent’s power plants (including
construction projects). From 2013 to mid-2024,
Dr Skorupska was Chief Executive of REA, the
Association for Renewable Energy and Clean
Technology.
Dr Skorupska is a British national.
Other offices: non-executive director of Great
British Energy and member of the Advisory Board
of National Grid Energy Distribution.
D. (Denise) Koopmans (1962)
Mrs Koopmans earned a master’s degree in Law
from Erasmus University Rotterdam and a
further postgraduate degree Real Estate Law
from Radboud University Nijmegen. She is a
graduate of Harvard Business School and an
Insead certified board member. Between 1991
and 1998, Mrs Koopmans was Chief Legal Officer
at NBM-Amstelland (acquired by BAM in 2000).
Since then, she has worked in various
commercial and senior international leadership
positions at Heerema Group, Cap Gemini
Engineering and RELX Group. Between 2011 and
2015, Mrs Koopmans was managing director of
the Legal & Regulatory division of Wolters
Kluwer in the Netherlands and director of the
global business line for workflow solutions.
Before Wolters Kluwer, she was CEO at
LexisNexis Business Information Solutions (RELX
Group). Since 2015, Mrs Koopmans has worked
as a non-executive director and advisor of
companies.
Mrs Koopmans is a Dutch national.
Other offices: non-executive director at Swiss
Post AG and Cicor Group, member of the
Supervisory Board of Norma Group, lay judge
(expert member) of the Companies and Business
Court (Enterprise Chamber), which is part of the
Amsterdam Court of Appeal.
J.C. (Jane) Hanson
(1967)
Mrs Hanson graduated with a Music BA (Hons)
degree from the University of York, and after 2
years as a professional musician, Mrs Hanson
qualified as a Chartered Accountant at KPMG. She
continued her career at Aviva PLC, where she held
executive roles including Head of Audit and Risk &
Governance Director. After Aviva, Mrs Hanson built
her own consulting company, delivering
governance-related services to Boards of regulated
and other significant sized entities. She gained
further non-executive director experience on
private, listed, public sector and charity boards,
including holding Chair and Audit & Risk Committee
Chair roles across a wide range of industries
including Financial Services, Entertainment and the
Not-For-Profit sector. Her experience includes
managing complex change, improving business
performance, and managing succession.
Mrs Hanson was awarded a CBE in 2022 for her
contributions to Charity and Public Service.
Mrs Hanson is a British national.
Other offices: non-executive director of
HM Treasury, non-executive director and audit
committee chair of Welsh Water (chair of the Board
with effect from 1 January 2025), audit committee
chair at the Civil Aviation Authority (until 21 January
2025) and audit and risk committee member and
independent advisor to the board of John Lewis
Partnership.
M.P. (Paul) Sheffield (1961)
Mr Sheffield studied civil engineering at the
University of Surrey. He is a Chartered Engineer
and Fellow of the British Institution of Civil
Engineers. From 1983 to 2014, he was employed
by the Kier Group, a large British construction
and property development group, listed on the
London stock exchange, where he held a
number of management positions. Mr Sheffield
spent the first 17 years of his career working on
significant infrastructure and construction
projects around the world, including seven years
as a project director on power stations in the
United Kingdom, desalination plants in Saudi
Arabia and underground railways in Hong Kong.
He then spent seven years running business
units within the United Kingdom, and in 2005 he
joined the Board of Kier Group with
responsibility for global construction activities.
He was appointed as Chief Executive Officer in
2010. In 2014, Mr Sheffield left the Kier Group
for Laing O’Rourke, the largest private
construction company in the United Kingdom,
where he was a member of the Executive
Committee until 2017 and responsible for their
activities in Europe and the Middle East.
Mr Sheffield is a British national.
Other offices: none.
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CEO Message Value creation Business performance
Risk management and governance
Supervisory Board Sustainability statement Financial statements Other information Appendices
18
Retirement schedule for the Supervisory Board
Member Date of initial appointment Year of reappointment End of current term
H.Th.E.M. Rottinghuis*
15-04-2020 2024 2028
G. Boon 19 - 04 -2017 2021 2025
B. Elfring 24-08-2020 2024 2028
J.C. Hanson 06-11-2024 - 2028
D. Koopmans* 24-08-2020 2024 2028
M.P. Sheffield 24- 08-2017 2021 2025
N.M. Skorupska 14-04-2021 - 2025
* Right of recommendation of Central Works Council.
19 Retirement schedule for the Executive Board
Member Date of initial appointment Year of reappointment End of current term
R.J.M. Joosten 24-08-2020 2024 2028
L.F. den Houter 26-06-2018 2022 2025
Biographies of the Executive Board members
R.J.M. (Ruud) Joosten and L.F. (Frans) den Houter.
Shareholding position
Information about the shareholding position of the Supervisory and Executive Board members
is in chapter 5.2.
R.J.M. (Ruud) Joosten (1964) CEO
Mr Joosten earned a degree in Business
Economics at VU University Amsterdam in 1987
and an MBA from the University of Leuven in
1990. Mr Joosten started with AkzoNobel in
1996 as a marketing director, joining from
Petrofina (currently PPG) where he began his
career in 1988. At AkzoNobel he held
management positions in sales and marketing,
and became managing director of Decorative
Paints North and Eastern Europe in 2006. In
2013, he joined AkzoNobel’s Executive
Committee and became responsible for the
Decorative Paints business. In 2018, he became
the Chief Operating Officer of AkzoNobel,
responsible for the business performance of the
coatings and paints businesses.
Mr Joosten is a Dutch national has been a
member of the Executive Board (CEO) of Royal
BAM Group since September 2020.
Other office: member of the Supervisory Board
of ALTANA AG.
L.F. (Frans) den Houter (1974) CFO
Mr Den Houter was trained as a hydrographic
surveyor at the Amsterdam University of Applied
Sciences, then earned a degree in business
economics at the University of Amsterdam and an
international master’s degree in Finance and Control.
He started his career at Exxon Mobil in 2000, where
he worked as a financial analyst and controller for the
Benelux retail operating company. In 2005 he moved
to Shell, where he worked as a controller at Shell
Global Real Estate, project manager at Shell Energy
Europe and financial manager for joint ventures at
Shell Upstream International. He joined Heerema
Marine Contractors (HMC) in 2010 as its Finance and
Control Manager and then held the position of Senior
Vice-President Finance before being appointed as
CFO in 2012.
Mr Den Houter is a Dutch national and has been a
member of the Executive Board (CFO) of Royal BAM
Group since August 2018.
Other offices: none
On 25 October 2024, the Supervisory Board
announced that Mr Den Houter has decided to leave
the Company in the last year of his second term,
effective 1 March 2025.
J.D. (John) Wilkinson (1968)
COO division United Kingdom and Ireland
Mr Wilkinson was appointed Chief Operating
Officer (COO) for the division United Kingdom
and Ireland, effective 1 January 2022.
Since 5 October 2020, Mr Wilkinson has been a
member of the Executive Committee (as COO
for the former business line Civil Engineering).
He was formerly President of Infrastructure and
a member of the Executive Committee of
SNC-Lavalin in Canada. He previously held senior
positions with British civil engineering
companies Laing O’Rourke, Kier Group and May
Gurney, respectively as managing director of UK
Infrastructure, executive director of Services and
managing director. Mr Wilkinson holds a
Bachelor of Science (Hons) in Construction
Management from Reading University and is an
Alumnus of Cambridge Judge Business School.
Mr Wilkinson is a British national.
Other offices: none
C. (Carla) Rodenburg-Verschuur (1972)
COO division Netherlands
Mrs Rodenburg-Verschuur was appointed Chief
Operating Officer (COO) for the division Netherlands,
effective 1 October 2024. She joined BAM in October
2020 as executive director of BAM Infra Netherlands.
She was formerly Vice President and member of the
Executive Committee at Stork (acquired by Fluor).
Previously she held senior positions at KPNQwest and
Shell in the field of general management and business
development. She started her career as a strategic
consultant at Arthur D. Little. Besides a Master of
Science in Electrical Engineering at Delft University of
Technology, she holds a Master of Business
Administration (Drs) degree at Rotterdam School of
Management and Duke University in the US.
Mrs Rodenburg-Verschuur is a Dutch national.
Other office: member of the Advisory Board of
Deltares.
S.B. (Sabine) van Hooijdonk-Verboom (1981)
CHRO
Mrs Van Hooijdonk-Verboom was appointed
Chief HR officer (CHRO), effective 1 July 2023.
She joined BAM in early 2022 as executive
director Group HR. Before she joined BAM, Mrs
Van Hooijdonk-Verboom was global DE&I Lead
and Executive HR Business Partner at JDE Peets
where she was responsible for creating the
People strategy in all the central functions. As
part of this role, she also led the creation and
implementation of the D&I business case. She
gained extensive HR experience with senior
(global) positions at KPMG, Philips and Signify.
Mrs Van Hooijdonk-Verboom graduated as a
Master of Science in business administration
with a specialism in human resources at the VU
University Amsterdam.
Mrs van Hooijdonk-Verboom is a Dutch national.
Other offices: none
4.4 Executive Committee
The Executive Committee consists of the
Executive Board members R.J.M. (Ruud) Joosten
and L.F. (Frans) den Houter, as well as of
Mrs S.B. (Sabine) van Hooijdonk-Verboom,
Mrs C. (Carla) Rodenburg-Verschuur and
Mr J.D. (John) Wilkinson.
Information about the role and responsibilities
of the Executive Committee is included in the
Executive Board and Executive Committee rules
of procedure. The relationship and contact with
the Supervisory Board is explained in the
Supervisory Board rules of procedure
(see www.bam.com), pursuant to which
Supervisory Board meetings shall generally be
attended by all members of the Executive
Committee.
Biographies of the Executive Committee
From the left:
J.D. (John) Wilkinson, S.B. (Sabine) van Hooijdonk-Verboom, R.J.M. (Ruud) Joosten, C. (Carla) Rodenburg-Verschuur and L.F. (Frans) den Houter.
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42
Supervisory Board
Dunfermline Learning Campus
brought two high schools and Fife
College together on one site,
accommodating up to 2,700
students, sharing state-of-the-art
facilities. The new high school
is built to Passivhaus
standards.
Dunfermline,
BAM Construct UK
The year 2024 is the first year of BAM’s 2024-2026 strategy ‘Building a sustainable tomorrow’.
Through this strategy, BAM aims to be a market leader in selected sustainable and profitable product
market combinations (PMCs). The strategy focuses on protecting profitability, transforming through
industrialisation and digitisation, and further expanding into growth markets. The strategy was
launched on 15 February 2024 and was well received by the market.
On 21 February 2024, a serious accident took place at the project site of a bridge over the Twente
canal in Lochem. As a result of this accident, tragically two persons lost their life; while other persons
were seriously injured. The incident was very impactful for all involved and the Supervisory Board
expressed its condolences to the family and colleagues of the deceased. It reinforces the necessity of
preventing these accidents from happening and the Supervisory Board encourages and supports the
Executive Committee in prioritising the health and safety of every person within the BAM
organisation and on every site.
Highlights in the year were the celebration of the 65th listing anniversary on the Amsterdam Stock
Exchange, the start of industrialised production of wooden Flow homes in the factory in Hoogkarspel,
the inclusion of BAM in the CDP A list for the fifth consecutive year and the successful execution of a
share buyback programme. The Dutch Public Prosecutions Office concluded its investigation into
BAM International and the Supervisory Board welcomed the resolution.
In December the Company reached conditional agreement on the divestment of BAM’s remaining
share in Invesis as it no longer aligned with the strategy ‘Building a sustainable tomorrow’.
Mr Frans den Houter announced his departure as CFO. The Supervisory Board is very grateful for his
contributions over the past six years and appreciates that an internal successor (Henri de Pater) could
be identified. Carla Rodenburg took over the position of COO of the division Netherlands from Joost
Nelis. The latter’s achievements and long-term commitment to the Company are highly regarded.
Supervisory Board activities
The attendance at Supervisory Board meetings and committees is specified in table 20.
During 2024, the Supervisory Board held ten meetings, including seven regular and three ad-hoc
sessions. In the regular meetings, the Supervisory Board and the Executive Committee discussed:
• safety,
• the current state of affairs and BAM’s financial and sustainability performance,
• market developments and order intake,
• development of working capital and cash flow,
• the Company’s financial condition and
• investments and divestments.
The Supervisory Board committees reported on their activities in each quarterly meeting and the
Supervisory Board was also updated by the Executive Committee on the status of key projects and
large tenders. The related discussions mainly focused on the risks in these projects and how these
were managed and/or could be mitigated.
Other matters discussed in the quartly meetings were the annual report and financial statements for
2023, the half-year press release and interim statements, the dividend policy and the dividend
proposal, as well as compliance reports and material disputes and legal proceedings.
20
Supervisory Board attendance overview 2024
Member SB
1
AC
2
RC
3
NC
4
HSS
5
1
Supervisory Board
2
Audit Committee
3
Remuneration Committee
4
Nomination Committee
5
Health, Safety and Sustainability Committee
H.Th.E.M. Rottinghuis 10/10 - - 4/4 4/4
G. Boon 10/10 5/5 - - -
B. Elfring 9/10 4/5 6/6 - -
J.C. Hanson 3/5 2/2 - 2/2 -
D. Koopmans 10/10 - 6/6 4/4 -
M.P. Sheffield 10/10 5/5 - - 4/4
N.M. Skorupska 10/10 - 6/6 2/3 4/4
Besides the regular matters that needed to be addressed, the Supervisory Board spent ample time on
specific topics, which included the development and implementation of the new strategy,
organisational developments and required leadership skills, mergers & acquisitions (including
divestment of the remaining stake in Invesis) and the appointment of Carla Rodenburg to the
Executive Committee as COO of the division Netherlands. Other specific topics of attention were the
execution of the share buyback programme, the proposed succession of Frans den Houter as CFO by
Henri de Pater (including period between 1 March 2025 (start as CFO) and 8 May 2025 (formal
appointment as member of the Executive Board), CSRD and its expected transposition into Dutch
law, the investigation and subsequent resolution of this investigation by the Dutch Fiscal Information
and Investigation Service (FIOD) and the Dutch Public Prosecutions Office (Openbaar Ministerie) into
certain projects of BAM International and the status of the investigations into accidents resulting in
lives lost including the actions to be taken as a result.
The Supervisory Board highly values an open and regular dialogue with shareholders and investors to
explain the Group’s strategy and performance and to receive feedback. The Supervisory Board
reviewed BAM’s investor relations activities and shareholder base in all its meetings and was informed
of the feedback given by shareholders, investors and analysts.
5.1
Report of the Supervisory Board
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BAM’s enterprise risk management assessment in the presence of the Executive Director Group
Control. This assessment provides an overview of the key risks BAM faces in achieving its objectives.
The key risks and related mitigating measures were discussed. The Executive Director Group Control
also informed the Supervisory Board about the status of adherence to BAM’s control requirements
framework, which is used to assess the internal risk management and control system throughout the
Group.
The Supervisory Board concluded that BAM has in place adequate internal risk management and
control systems, financial reporting manuals and procedures for drawing up financial reports as well
as an established monitoring and reporting system.
Specific areas of attention for 2024
In 2024, the areas safety and sustainability were subject to increased attention by the Supervisory Board.
Safety
The Supervisory Board agrees with the Executive Board that safety is the highest priority for BAM, its
employees, supply chain employees and society at large. The tragic loss of two lives has deeply
affected everybody in the organisation. Material safety incidents were discussed and evaluated
extensively by both the Supervisory Board and the Health, Safety and Sustainability Committee.
These lost lives and other serious accidents show that safety is more than merely a compliance
requirement. It is a top priority for the Company which requires permanent attention. The incident
frequency (IF BAM) deteriorated from 2.8 in 2023 to 2.9 in 2024. IF Total is 2.9 in 2024 (2023: 2.6). It
remains BAM’s aspiration to prevent all incidents and to further reduce the incident frequency rate.
As a result of the deteriorating safety performance, the Executive Committee has conducted a
thorough analysis to identify the root causes of these incidents and the systematic factors
contributing to a negative trend. BAM is leveraging these insights to implement changes in the
approach to safety—expanding training programmes, strengthening safety leadership and
accountability measures, and reinforcing discipline. The Supervisory Board provided input and
monitored the development of these initiatives throughout the year.
Sustainability
Early in 2023, BAM launched its long-term sustainability strategy, which is built on the Company’s
purpose and market-driven sustainability ambitions. This strategy is an integral part of the new
strategic plan for 2024-2026. The strategy has been developed around six material themes
concerning People and Planet, and is driven by the global challenges regarding climate change and
inequality, and related developments concerning legislation, clients and competitors.
These themes are aligned with the selected United Nations Sustainable Development Goals (SDGs)
Before each meeting, the Supervisory Board met without the Executive Committee being present.
Topics discussed in these pre-meetings included the preparation of the meeting, the functioning of
the Executive Board, the annual self-assessment and the remuneration policy and remuneration of the
Executive Board members, including the determination of the variable portion of their remuneration
for 2024 and the targets for 2025.
Corporate governance
Each year, an updated corporate governance compliance overview is published on BAM’s website,
providing transparency on how BAM complies with the Dutch Corporate Governance Code. The
Supervisory Board and the Executive Board are of the opinion that the Company’s corporate
governance is up to standard. Further information is included in chapter 4.2.
Risk management
Proper risk management remains a high priority for the Supervisory Board, essential for predictable
performance and enhancing shareholder value. As such, it continued to be high on the Supervisory
Board’s agenda. In its meetings, the Supervisory Board discussed the risk appetite that aligns with the
Company’s strategic agenda and the related business and project portfolio.
BAM’s focus on its key growth markets, alongside a robust stage gate tender process, continue to
play a pivotal role in identifying potential risks early and implementing appropriate measures to
mitigate risks at tendering.
The Supervisory Board continues to fully support the Executive Committee’s strategic decision to
stop tendering for large, complex, single-stage projects that present an unbalanced risk-reward
profile. This decision reflects BAM’s firm commitment to critical and selective tendering, essential for
de-risking BAM’s portfolio. By drawing lessons from past challenges, BAM is reinforcing its risk
management strategies. Furthermore, the Supervisory Board, in collaboration with the Executive
Committee, continuously evaluates the company’s risk appetite. This ongoing process ensures BAM
sets clear boundaries for future engagements, aligning them with its long-term strategic objectives.
This includes decisions to part with clients that do not share BAM’s view on a fair distribution of risk.
The Supervisory Board reviewed BAM’s business and project portfolio, including those projects with
a higher risk profile, (the phasing out of) legacy projects and discussed how these are managed.
Additional comfort and insights were obtained from Internal Audit, which continued with auditing
several high-exposure projects, resulting in recommendations to improve project control measures.
As part of the Supervisory Board’s annual risk management review, the Audit Committee and
subsequently the Supervisory Board discussed in their respective October meeting the outcome of
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Composition of the Supervisory Board
Until 6 November 2024, the Supervisory Board consisted of six members. On that date, Jane Hanson
was appointed as a new member. As a result the Supervisory Board consists of seven members until
the Annual General Meeting on 8 May 2025. Gosse Boon will then step down from the Supervisory
Board at the end of his second term. Paul Sheffield will also reach the end of his second term but will
be nominated for re-appointment for a period of one year in order to allow for a more effective
re-appointment schedule.
The Supervisory Board is chaired by Henk Rottinghuis who was appointed to his position in 2020.
Dr. Skorupska will reach the end of her first term of four years and will be nominated for
re-appointment for a similar period. The Board’s vice-chairman was Gosse Boon. Further
information about the individual members of the Supervisory Board is available
in chapter 4.3.
When selecting new members, the Supervisory Board considers expertise, experience, diversity, and
independence aspects as described in the profile of the Supervisory Board (schedule 2 of the
Supervisory Board rules of procedure, which are available on BAM’s website). Candidates always meet
with the Executive Board and a delegation of the Central Works Council whose input is considered in
the recommendation for nomination.
Diversity and inclusion
In accordance with the 2021 law on diversity at the top of large corporations (‘Wet evenwichtiger
verhouding tussen mannen en vrouwen in het bestuur en de raad van commissarissen’), BAM has set
and/or reconfirmed fitting and challenging targets on diversity for its Supervisory Board, Executive
Committee and senior leadership group. In addition, an action plan was established in order to
achieve these targets. Further information on the targets and action plan is available in chapter 3.2.
The Supervisory Board recognises the benefits and importance of diversity in its composition. The
profile for the Supervisory Board includes a minimum 30% target for female and male board members
respectively. Throughout the year the composition of the Supervisory Board met the target.
Induction
Following the nomination of Jane Hanson as a new member of the Supervisory Board an induction
programme was established and approved by the Chairman of the Supervisory Board. The
programme consisted of introduction meetings with internal and external stakeholders, including
members of the Executive Committee, other senior managers and the external auditor. She also
visited projects in the Netherlands and United Kingdom in order to get accustomed to the business
and operations.
and include clear goals for the shorter and longer term. The Supervisory Board was closely involved in
the development of the sustainability strategy and the goals that were set for the six themes. The
Supervisory Board recognises the importance and connection of all six sustainability themes and
supports the Company in its focus on achieving the targets it has set.
The Supervisory Board is delighted that BAM as the only Dutch construction company was rated on
the CDP A-list for the fifth consecutive year and notices a promising ongoing trend in reducing BAM’s
environmental footprint. The Supervisory Board closely monitors the challenges in CO
2
measurements and the planned reductions in Scope 1, 2 and 3. In this regard the Supervisory Board
noted with satisfaction that the Company has met (and even exceeded) its 2024 Scope 1 and 2 CO
2
reduction target of 50% reduction versus 2015. Further acceleration is however needed to also meet
the ambitious 2026 targets.
The Company is also committed to reduce the Scope 3 CO
2
intensity of its operations by 50% in 2030
compared to the 2019 base year. While the Company is ambitious in its Scope 3 approach, the
Supervisory Board acknowledges that consistent and reliable measuring of Scope 3 is an enormous
challenge and maturing the measurement process will be a multi-year journey for the Company.
The Supervisory Board recognises the need to educate more clients to choose and pay for sustainable
solutions as the goals cannot be achieved without customer cooperation.
Other activities
Besides the formal meetings, the Supervisory Board actively engaged with the Executive Committee
as well as other senior managers. The chairman of the Supervisory Board had regular contact with
BAM’s CEO, as did the chairman of the Audit Committee with the CFO. The chairman and other
members of the Supervisory Board also met a wide range of senior managers in order to be briefed
on specific topics such as human resources, sustainability, finance, corporate governance and internal
audit. During the off-site in September the Supervisory Board visited the Seaton Valley Schools
project in Newcastle. In December the Safehouse project in London was visited.
A delegation from the Supervisory Board met with the Central Works Council in the Netherlands.
The Central Works Council was informed timely about the appointment of members of the
Executive Committee.
Educational sessions are organised throughout the year in order to inform and educate the
Supervisory Board about specific matters. In 2024, so-called edusessions were held on topics such as
double materiality assessment, sustainability reporting and people development. These educational
sessions introduce the Supervisory Board to other individuals within the organisation.
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Training
The Supervisory Board recognises the importance of continuous training and development. This is
addressed extensively in the annual performance evaluation, and safeguarded by an annual
educational budget for Supervisory Board members.
Besides the educational sessions mentioned above and specific individual trainings, the Supervisory
Board (together with the Executive Committee) was updated by the Institute for Sustainability
Leadership (University of Cambridge) on the changing global context, with a particular focus on
approaches to protect and restore nature and the interconnectedness of climate, nature, society and
economic progress. In addition a dedicated training on safety performance enhancements was given
by an external consultancy firm.
Independence
The Supervisory Board established that none of the Executive Board members held more than two
Supervisory Board positions at large organisations or a position as chairman of such a supervisory
body in 2024. This was in line with the Management and Supervision Act (‘Wet bestuur en toezicht
rechtpersonen’) and the Corporate Governance Code. Furthermore, none of the Supervisory Board
members had more than five memberships of supervisory boards at Dutch listed companies or other
large institutions.
Conflicts of interest
Given his position as a member of the Supervisory Board of KPMG, Mr Boon excused himself from the
selection process for the new external auditor.
As part of the annual self-evaluation (see below) the Supervisory Board also reviewed the other
positions held by the members of the Supervisory Board and Executive Board and established that
there are no other conflicts of interest.
Evaluation
In November 2024, the Supervisory Board performed its annual self-evaluation. This self-evaluation
was based on an extensive questionnaire that was completed by all members prior to the evaluation
session. The feedback from the individual members was translated into a report which was
subsequently discussed in a dedicated evaluation session.
Specific attention was paid to the key areas of supervision, being strategy, risk management and
internal audit, ethics and compliance culture as well as finance and accounting. The Supervisory
Board concluded that it continues to be a well-functioning team, is of an appropriate size, and
benefits from expertise, diversity and international representation.
A number of suggestions were made to further strengthen the Supervisory Board going forward,
focusing on topics such as succession planning and access to the ‘second echelon’ in the organisation,
a more thematic approach to compliance reporting and information gathering.
The Supervisory Board also reviewed the functioning of the Executive Board and its members, based on
input received from the Executive Board following its own performance evaluation. The outcome of the
review by the Supervisory Board was shared and discussed with the members of the Executive Board.
The Supervisory Board appreciated the open discussions and transparent communications and felt
that the Executive Board was functioning well.
Supervisory Board committees
The Supervisory Board has four permanent committees: Audit Committee, Remuneration
Committee, Nomination Committee, and Health, Safety and Sustainability Committee. Three of
these committees are mandatory and in line with Dutch corporate governance requirements. The
Health, Safety and Sustainability Committee was established in 2021 to underline the Supervisory
Board’s focus and emphasis on these topics. It is the task of these committees to support and advise
the Supervisory Board on matters under the committees’ responsibility and to prepare the
Supervisory Board’s decisions regarding those matters. The Supervisory Board as a whole remains
responsible for the way in which it performs its tasks and for the preparatory work carried out by the
committees.
Audit Committee
In 2024, the Audit Committee was composed of Gosse Boon (chair), Paul Sheffield, Bob Elfring and
Jane Hanson (from 6 November). The latter will succeed Mr Boon as chair of the Audit Committee per
8 May 2025 when Mr Boon will step down from the Supervisory Board. The composition of the
committee is in line with the relevant provisions of the Corporate Governance Code. The Audit
Committee prepares the Supervisory Board’s decision making regarding the supervision of the
integrity and quality of the Company’s financial and sustainability reporting and the effectiveness of
the Company’s internal risk management and control systems and assists and advises the Supervisory
Board in this respect.
Meetings and topics
The Committee met five times in 2024: it held four regular meetings in which the financial results
were discussed, plus an additional meeting in December to discuss the budget and plans for 2025.
The CFO, the Executive Director Group Control, the Group Director Internal Audit and the external
auditor attended all regular Audit Committee meetings. In line with its tasks and responsibilities, the
Audit Committee addressed many topics, including the development of BAM’s key financial figures,
the reports of the external auditor, the internal audit plan for 2025, and the output and impact of the
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discussed the terms and conditions for the departure of Mr Den Houter and for his proposed
successor Mr De Pater. Additionally a session was organised to be informed on general reward
topics in the organisation concerning senior leader reward, gender paygap, pensions and various
improvement projects. In December 2024, with the input of the HSS Committee and Audit
Committee, the Remuneration Committee submitted a proposal to the full Supervisory Board for
the objective setting for the 2025 short-term incentive and the 2025-2027 long-term incentive.
Finally the Remuneration Committee prepared the remuneration report, which explained how the
remuneration policy had been implemented in practice and conducted an annual evaluation on its
own functioning.
Nomination Committee
During 2024, the Nomination Committee consisted of Henk Rottinghuis (chair), Denise Koopmans
and Nina Skorupska. Per 6 November the latter was succeeded by Jane Hanson. The key responsibility
of the Nomination Committee is to make proposals to the Supervisory Board regarding the size and
composition of the Supervisory Board and the Executive Board, with regard to selection criteria,
selection procedures, appointments and reappointments to both boards as well as the assessment
of their performance. The Nomination Committee also monitors the Executive Board’s policy on
selection criteria and appointment procedures for senior management, succession planning, talent
development and holds annual appraisals with the individual members of the Executive Board.
Meetings and topics
The Nomination Committee met four times in 2024, in addition to which members consulted each
other a number of times outside the context of a formal meeting. Items discussed included the
composition of the Supervisory Board, Executive Board, Executive Committee and senior
management, including diversity and inclusion aspects. In addition, the Nomination Committee,
the CEO and the CHRO discussed workforce trends, selection criteria and appointment procedure
for senior managers, the results of the 2024 talent review cycle, succession planning for senior
management roles, diversity and inclusion, project management staffing and talent development.
Additionally, the Nomination Committee was updated regularly on initiatives on the people roadmap.
Appointments to the Executive Committee are subject to the approval of the Supervisory Board.
In 2024, the Nomination Committee reviewed the decision to appoint Carla Rodenburg to the
Executive Committee as COO for the division NL and proposed to the Supervisory Board to approve
this decision. Also, the Nomination Committee prepared the decision of the Supervisory Board to
nominate Henri de Pater as successor of Frans den Houter as member of the Executive Board in the
role of CFO, which will be presented to the Annual General Meeting in 2025 for appointment.
Subject to shareholder approval Mr De Pater will start as CFO effective 1 March 2025.
new mandatory sustainability reporting requirements. In addition, developments relating to tax, IT,
insurance, legislation (including material legal proceedings), treasury, compliance, risk management
and pensions were monitored and reviewed, as well as BAM’s progress on the transformation of its IT
landscape and finance functions.
The Audit Committee prepared the selection of the new auditor and, taking into account the
observations of the Executive Board, advised the Supervisory Board to nominate KPMG as the
external auditor per the financial year 2026.
External auditor
The Audit Committee was briefed by the external auditor on relevant developments in the audit
profession and on the major findings of their audit and review procedures.
The Committee met with the external auditor without the Executive Board being present, and
reported to the Supervisory Board on the performance of and the relationship with the external
auditor. Furthermore, the chairman of the Audit Committee regularly communicated on a one-to-
one basis with the external auditor. The Audit Committee considers the Company’s relationship with
the external auditor to be effective.
Remuneration Committee
In 2024, the Remuneration Committee consisted of Denise Koopmans (chair), Bob Elfring and Nina
Skorupska. The key responsibility of the Remuneration Committee is to make proposals to the
Supervisory Board regarding the remuneration policy, the terms of employment of the members of
the Executive Board, and the remuneration of the members of the Supervisory Board and the
Executive Board. The remuneration of those members of the Executive Committee who are not also
members of the Executive Board is also subject to the approval of the Supervisory Board.
Meetings and topics
In 2024, the Remuneration Committee met six times. The CEO and CHRO attended these meetings
when deemed prudent. In February, the Remuneration Committee submitted a proposal to the full
Supervisory Board regarding the pay-out of the 2023 short- term incentive and the vesting of the
2021-2023 long-term incentive, based on BAM’s performance and the applicable criteria. In
preparation of the 2024 Annual General Meeting, the Remuneration Committee submitted renewed
remuneration policies for the Executive Board and Supervisory Board.
During the year, the Remuneration Committee reviewed the fixed remuneration of the CEO and CFO
in light of remuneration increases of other employees and developments in the labour market
reference group and submitted a proposal to apply indexation on their fixed remuneration following
consultation with external advisors and stakeholders. Furthermore, the Remuneration Committee
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The Supervisory Board established that EY received the financial and sustainability information on
which the reports were based in a timely manner, and noted that it had discussed the information
provided with the Executive Board and various senior managers. The Supervisory Board took note of
the reports as prepared by EY and addressed the follow-up of the identified action points.
Areas of emphasis
In the February and July meeting, the Supervisory Board discussed with EY and the Executive Board
the areas of audit emphasis, valuation of projects and revenue recognition for key projects, the
investigation by the Dutch authorities into potential irregularities at some of BAM International’s
completed projects, regulations, sustainability and valuation of land and building rights. Other topics
discussed were the findings on the company’s internal control environment and financial processes,
valuation of deferred taxes, IT general controls and fraud and (non-) compliance with laws and
regulations.
Reappointment proposal
The Supervisory Board assessed the performance of, and its relationship with, the external auditor,
based upon feedback from the Executive Board, the evaluation and recommendation of the Audit
Committee and the feedback of the financial leadership team. Based on this assessment, the
Supervisory Board’s experience with the external auditor, and the external auditor’s expertise with
regard to the construction industry in general and BAM in particular, the Supervisory Board
recommended that the shareholders present at the Annual General Meeting should reappoint
EY Accountants B.V. as the external auditor responsible for auditing the 2025 financial statements
and review of the sustainability information of the Group.
Appointment proposal 2026, 2027 and 2028
Based on the mandatory rotation requirements, the Supervisory Board supervised the selection
process which resulted in the decision to nominate for appointment KPMG as the new external
auditor for the years 2026, 2027 and 2028 at the Annual General Meeting in 2025.
Relationship with shareholders
The Annual General Meeting took place on 10 April 2024. Shareholders were given the opportunity to
participate in person or virtually. The Annual General Meeting was prepared by the Executive Board
and Supervisory Board. Besides the regular topics, the agenda also included the presentation of the
next phase of the strategy and the amendment of the remuneration policy for the Executive Board
and Supervisory Board. All proposals were adopted although one proposal (adoption of a transition
allowance for the Executive Board) was withdrawn following stakeholder feedback. On 6 November
2024, an Extraordinary General Meeting was organised to appoint Jane Hanson as a member of the
Supervisory Board.
Health, Safety and Sustainability Committee
Throughout 2024, the Health, Safety, and Sustainability (HSS) Committee, composed of Henk
Rottinghuis (chair), Paul Sheffield and Nina Skorupska, supervised and challenged health and safety
practices within the Company. The HSS Committee’s key responsibilities included a thorough review
and advisory role regarding the Company’s health, safety and sustainability policies, management
approaches, culture, and performance.
Moreover, the HSS Committee reflected on significant internal and external developments, fostering
the advancement of an ambitious, well-structured sustainability agenda, and supporting the
implementation of a clearly articulated roadmap.
Meetings and topics
In 2024, the HSS Committee met four times, besides several consultations between members outside
formal meetings. The meetings are attended by the COOs of the two divisions as well as the Head of
Group Sustainability. Discussions during these meetings covered a wide range of critical topics. Key
areas of focus included the sustainability metrics BAM will prioritise, chosen for their credibility and
reliance on accurate, objective data. Also different strategies for achieving cross-divisional synergies
were reviewed, particularly in enhancing social value and health and safety practices.
The measures taken to improve overall health and safety performance are being monitored closely as
were the serious and lost life accidents that occurred. The Committee also reviewed how BAM
collaborates with its supply chain partners to embed sustainable solutions into its projects. The
management incentives were also reviewed and aligned with the Company’s sustainability agenda,
alongside regular evaluations of BAM’s sustainability dashboards and roadmaps. These discussions
reflect the Supervisory Board’s ongoing commitment to steering the Company towards ever
improving safety and sustainability performance.
External auditor
During the year under review, the external auditor EY Accountants B.V. (‘EY’) reported on its 2023
audit, and attended the quarterly meetings with the Audit Committee, two meetings of the
Supervisory Board, as well as the Annual General Meeting on 10 April 2024. Outside the meetings
there were several informal contacts between the signing partner, the chairman of the Supervisory
Board and the chairman of the Audit Committee respectively.
The 2024 assurance plan was presented to, and discussed with, the Audit Committee and the
Supervisory Board, and subsequently approved. During the audit of the 2023 financial statements
and the review of the 2024 interim financial statements, the Supervisory Board met with EY to
discuss its reports. The relationship between EY and the Supervisory Board was effective and open.
48
CEO Message Value creation Business performance Risk management and governance
Supervisory Board
Sustainability statement Financial statements Other information Appendices
Financial statements 2024
This annual report includes the 2024 financial statements, duly prepared by the Executive Board.
The financial statements have been audited by EY; the unqualified independent auditor’s report is
included in chapter 8.1.
The Audit Committee discussed the financial statements with the Executive Board and the external
auditor. The Audit Committee also discussed the auditor’s reports and the quality of internal risk
management and control systems. The Audit Committee had this discussion with the external
auditor without the Executive Board being present. Subsequently, the Supervisory Board discussed
this annual report, including the financial statements, with the Executive Board in the presence of the
external auditor.
The Supervisory Board took note of the reporting from the Audit Committee and reviewed the
auditor’s report and the quality of internal risk management and control systems. The Supervisory
Board concluded that it should approve the 2024 financial statements.
The Supervisory Board recommends that the 2024 financial statements be adopted during the
Annual General Meeting, to be held on 8 May 2025. The Supervisory Board is of the opinion that the
financial statements, the report by the Executive Board and the report by the Supervisory Board
provide a solid basis on which to hold the Executive Board accountable for the management of
policies pursued, and the Supervisory Board accountable for its supervision of these policies. The
members of the Supervisory Board signed the financial statements in accordance with their statutory
obligations under article 2:101, paragraph 2 of the Dutch Civil Code.
The Supervisory Board also recommends the Annual General Meeting to adopt the proposal of the
Executive Board to make a distribution of €0.25 per share against the net result of 2024.
Final comments
The Supervisory Board is convinced that BAM is in a strong position to perform successfully, as the
Group is consistently implementing a clear strategy based on a strong portfolio and increasing
profitability. The Supervisory Board expresses its thanks to the Executive Board, the Executive
Committee, management and employees for their contributions to make BAM a more resilient
company, in the interest of all BAM’s stakeholders.
Bunnik, the Netherlands, 19 February 2025
On behalf of the Supervisory Board,
Henk Rottinghuis, Chairman
Sustainability insight
As Network Rail’s principal contractor on the new
Ashley Down station scheme, BAM worked closely with
staff at the nearby Brunel Field Primary School to
create new green outdoor space that pupils can enjoy,
with a new planting area and a safer school pond.
CEO Message
49
Value creation Business performance Risk management and governance
Supervisory Board
Sustainability statement Financial statements Other information Appendices
50
CEO Message Value creation Business performance Risk management and governance
Supervisory Board
Sustainability statement Financial statements Other information Appendices
Introduction
In addition to launching the new strategy for 2024-2026, at the start of the year, BAM has introduced
its renewed policies for the remuneration of the Executive Board and Supervisory Board. After
consultation with stakeholders, the policies were well received and adopted with 99.25% and 99.60%
of the votes in favour. The renewed policies have now been in place for almost a year and have
contributed to greater alignment between remuneration and BAM’s strategic priorities, including
further focus on sustainability and increased ownership of the Executive Board, while at the same
time ensuring more transparency and consistency towards stakeholders.
Overall, the year has been strong for BAM, reflecting the success of the new strategy and leveraging
BAM’s core strengths in the energy transition, transportation and Dutch residential markets. BAM did
face setbacks at school projects in Denmark and various construction projects in the United Kingdom
and worked hard to minimise these. Despite difficult business circumstances with uncertainty
regarding interest rates, the Dutch nitrogen situation and political unrest, it is clear that the future
for BAM holds attractive market opportunities driven by a strong demand for decarbonisation,
critical infrastructure, and sustainable and affordable housing.
BAM’s positive business results and outlook have however been overshadowed by a personal tragedy,
when two employees of subcontractors lost their lives at the project site of a bridge over the Twente
Canal in Lochem and a further two of their colleagues were seriously injured at the beginning of the
year. Management and employees of BAM remain deeply affected by this serious accident.
Our deepest sympathies go to their families, friends and colleagues of all concerned. BAM has
launched an ambitious program to further enhance the safety of its employees and supply chain
partners.
Incentive outcomes over 2024
On the basis of BAM’s business results and in line with the new remuneration policy, the Supervisory
Board determined the outcome of the incentive plans for the Executive Board, applying the discretion
framework to assess the formulaic results and to ensure that these were in line with the philosophy of
the remuneration policy and its guiding principles. The major safety incidents were considered at
length in relation to this framework. But, in the end, the Supervisory Board decided not to apply
discretion to the short-term incentive (STI) plan, as any payout on the safety objective had already
been nullified due to underperformance based on incident frequency. In addition, the outcome of the
adjusted EBITDA objective in the long-term incentive (LTI) was assessed using the framework. The
positive results of the Invesis sale were not reflected in the outcome of the LTI plan since the adjusted
EBITDA performance was corrected (in accordance with the agreed methodology) with results of the
divested entity. This resulted in an adjusted EBITDA of 4.7% whereas the threshold was 5%. The sale of
Invesis is however of strategic importance and will support the free cash flows of the Company. The
Supervisory Board therefore decided to reward the importance of this strategic step, in combination
with the overall positive development in adjusted EBITDA and used the framework to assign the
threshold achievement of 50% to this objective.
Overall, the incentive outcomes reflect a strong performance on both the STI and the LTI. The
financial and strategic progress in 2024 resulted in a STI payout for the Executive Board of 81.3% of
fixed remuneration. Furthermore, 91.7% of the conditionally awarded shares for the 2022-2024 LTI
plan will vest on the basis of strong profitable growth and significant shareholder value that was
created over the three-year performance period as well as an excellent performance on the
sustainability objectives.
Incentive objectives for 2025
As BAM enters the second year of the current strategic period, the Supervisory Board decided to
maintain focus and maintain the objectives and weightings for the (2025) STI and the (2025-2027)
LTI largely unchanged with some optimisations in the sustainability scorecard. Based on the
increased focus on safety, the measure used for the corresponding objective in the short-term
incentive plan over 2025 will however be changed from incident frequency (IF Total) to the number
of field/project safety visits by Executive Committee members under a strict definition. This is to
ensure that these visits truly support and drive an improved safety culture in the Company. One
important condition has been added: any payout on the safety objective will be nullified in case of
loss of life.
It is believed that it will be essential in 2025 to step up the engagement of top management in
BAM’s safety agenda. For this purpose, this objective will also be cascaded across the divisional
management teams. More details on the objectives for STI 2025 and LTI 2025-2027 can be found in
table 28.
With the remuneration policies that were recently reviewed and approved in 2024 as well as
ambitious incentive targets set for the coming year(s), the Supervisory Board feels that BAM’s
practices are well positioned to drive company performance into the future. This remuneration
report provides a summary of the remuneration of the members of the Executive Board and the
Supervisory Board in the financial year 2024 and an outlook for 2025. The full remuneration policy,
as approved by the Annual General Meeting in 2024, is published on the company website.
Bunnik, the Netherlands, 19 February 2025
On behalf of the Supervisory Board,
Denise Koopmans, Chair of the Remuneration Committee
5.2
Remuneration report
CEO Message
51
Value creation Business performance Risk management and governance
Supervisory Board
Sustainability statement Financial statements Other information Appendices
Remuneration Executive Board in 2024 at a glance
854 706 974 22 188
610 504 668
22 134
0 2,000 2,400 2,8001,6001,200800400
Fixed remuneration
R.J.M. Joosten
L.F. den Houter
LTI
STI
Post-employment benefits
Other benefits
Fixed
remuneration
Purpose: Provide base compensation to attract and retain qualified Executive Board members.
Policy: Annual evaluation considering personal performance, the results of the past year, alignment
with the labour market reference group, broader macro-economic factors and a particular
focus on wider workforce compensation developments.
1 January 2024 +3.5%
1 July 2024 +3.5%
R.J.M. Joosten
€839,000
€869,000
L.F. den Houter
€599,000
€620,000
STI
Purpose: Reward annual performance, incentivise achievement of agreed objectives and align
Executive Board and stakeholder interests.
Policy: Cash incentive expressed as a percentage of fixed remuneration.
Objective setting:
70% Financial objectives | 30% Non-financial objectives.
LTI Purpose: Reward long-term value creation, serve as retention instrument and align Executive
Board and stakeholder interests.
Policy:
Share-based incentive.
Award value expressed as a percentage of fixed remuneration: CEO 100% | CFO 90%
Objective setting:
66.7% Financial objectives | 33.3% Sustainability objectives.
Three-year vesting period.
Two-year lock-up period after vesting plus minimum share ownership requirement:
CEO: 200% of fixed remuneration | CFO: 150% of fixed remuneration.
Post-employment
benefits
Purpose: Provide the Executive Board members a solid basis for retirement savings.
Policy:
Gross allowance equal to 22% of fixed remuneration.
In line with policy
Benefits
Purpose: Offer a competitive package of benefits that suits the needs of the Executive Board members.
Policy:
The benefits offering is set in line with the overall benefits proposition provided to BAM Group’s
wider workforce.
In line with policy
Purpose and 2024 Policy 2024 Actuals
STI 2024 payout (amount)
R.J.M. Joosten €706,063
L.F. den Houter €503,750
20 40 60 80 100
32.5
65
97.5
81.3
STI 2024 payout (% of fixed remuneration)
Vesting LTI plan 2022-2024 (% of award)
50 70 90 110 130 150
100
50 91.7
150
Threshold
ExcellentTarget
Achievement
Threshold
ExcellentTarget
Achievement
Labour market reference group (remaining unchanged for 2025)
Aalberts, Arcadis, Balfour Beatty, Corbion, Fugro, Heijmans, Keller Group, Kier
Group, Koninklijke KPN, Morgan Sindall Group, PostNL, Renew Holdings, SBM
Offshore, Signify
52
CEO Message Value creation Business performance Risk management and governance
Supervisory Board
Sustainability statement Financial statements Other information Appendices
Remuneration of the Executive Board in 2024
The members of the Executive Board received remuneration in the past financial year in line
with the remuneration policy adopted by the Annual General Meeting on 10 April 2024.
The remuneration policy for the Executive Board is available on BAM’s website
( see www.bam.com/en/about-bam/corporate-governance/articles-of-association-rules-and-codes).
A summary of the remuneration of the members of the Executive Board can be found in the table below.
21
Total remuneration Executive Board
(x €1,000)
Fixed
remuneration
Short-term
incentive
Long-term
incentive
1
Other
benefits
2
Post-
employment
benefits
Total
remuneration
2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023
R.J.M. Joosten 854 801 706 554 974 545 22 22 188 176 2,744 2,098
L.F. den Houter 610 572 504 395 668 342 22 22 134 126 1,938 1,457
1
The amount shown under ‘Long-term incentive’ consists of the IFRS valuation of the Performance Share Plan as
included in note 28.1 Key management compensation of the Financial Statements.
² The amount shown under ‘Other benefits’ consists of the car allowance.
The remuneration of members of the Executive Board was not affected by a change of control at the
Company and no loans or options were issued to them.
The Supervisory Board did not see any reason
during the financial year to use its extraordinary powers to adjust or reclaim variable remuneration
that has been awarded previously.
Fixed remuneration
The Supervisory Board reviewed the fixed remuneration in line with the remuneration policy for the
Executive Board. In line with the wider workforce in the Netherlands, the fixed remuneration of
Mr Joosten was increased by 3.5% per 1 January 2024 and by 3.5% per 1 July 2024 to €869,000 gross
per annum. The fixed remuneration of Mr Den Houter was increased by 3.5% per 1 January 2024
and by 3.5% per 1 July 2024 to €620,000 gross per annum.
Incentives
Based on input from the Remuneration Committee, the Supervisory Board evaluated the outcomes of
the short-term incentive over 2024 and the long-term incentive over 2022-2024 in relation to the
objectives that had been set. The Supervisory Board then reviewed the appropriateness of these
formulaic outcomes against the discretion framework defined in the remuneration policy.
On the basis of this framework, limited upward discretion was applied to increase the achievement on
the adjusted EBITDA objective in the LTI to threshold level, as explained in the introduction. Otherwise,
it was concluded that the formulaic outcomes were reasonable and fair and discretionary adjustments
were not required. Therefore, the payout of the short-term incentive has been determined at 81.3% of
fixed remuneration and the vesting percentage for the long-term incentive has been determined at
91.7%. Further details on the achievement of the performance objectives can be found in tables 22
and 23. The conditional performance shares that were awarded under the LTI plan 2022-2024, will vest
on 25 April 2025.
Post-employment benefits and other benefits
Both Mr Joosten and Mr Den Houter received an age-independent gross allowance of 22% of their
fixed remuneration as pension contribution, in line with the remuneration policy.
Terms of appointment of the Executive Board members
Members of the Executive Board are appointed for a term of four years, and deliver their services
under a management services agreement. Details of their appointment are specified in table 19.
The notice period is three months for both the Company and the Executive Board member, the
maximum severance is one year’s fixed remuneration in case of termination by the Company.
CEO Message
53
Value creation Business performance Risk management and governance
Supervisory Board
Sustainability statement Financial statements Other information Appendices
Objective Weighting (%) Achievement on performance objectives Achievement
Achievement
(% of target)
STI (% of fixed
remuneration)
Financial Adjusted EBITDA
(x € million)
45 BAM delivered a strong performance with an adjusted EBITDA
of €302 million. This excludes the effect of recycling of Invesis’
hedge reserves.
150 43.9
Total cash flow
(x € million)
1
25 The total cash flow significantly exceeded
excellent level.
150 24.4
Non-financial Employee engagement
(action taking)
(in %)
2
10 The engagement of employees has been improving steadily
during the year. But overall performance ended up at
threshold level.
50 3.3
Safety
(IF Total)
10 The performance did not justify payout. - -
Scope 1 and 2 CO
2
intensity reduction
(in %)
10 The reduction of Scope 1 and 2 CO
2
intensity continued and
was larger than anticipated.
150 9.8
Overall achievement 81.3
1
Average end-month IFRS cash position (excluding joint ventures) for October-December 2024 minus average for October-December 2023.
2
Measured with the standardised, external (Glint) survey. Average % employees positive over Q1-Q4 on Glint survey statement: ‘I believe meaningful action will be taken as a result of this survey’.
Threshold
ExcellentTarget
Achievement
22 Performance on 2024 STI objectives
3 2.5 2
2.6 2.4 2.22.9
10 9 8 7
9.4 8.9 8.4 7.5
-150
-100 -50 0 50
-124 -94 -64 19
55 60 65
59 60 61
250
270 290 310
251
271
291 302
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CEO Message Value creation Business performance Risk management and governance
Supervisory Board
Sustainability statement Financial statements Other information Appendices
Objective Weighting (%) Achievement on performance objectives Achievement
Achievement
(% of target)
Vesting (% of
award)
Relative TSR
1
33.3 Position 4 See
table 24 for the TSR peer group ranking. BAM’s relative TSR
performance ended up in 4
th
position and above the peer group median
although the targeted 3
rd
position was not achieved.
75 25
Adjusted EBITDA
(in %)
2
33.3 BAM delivered an adjusted EBITDA of 4.7% excluding the effect of
recycling of Invesis’ hedge reserves. Limited discretion was applied to
increase the achievement to threshold level, as explained in the
introduction.
50
(discretion)
16.7
Sustainability
- CDP Climate Ranking 11.1 BAM once again earned a spot on the prestigious CDP Climate A List, for
the sixth consecutive year.
150 16.7
- Scope 1 and 2 CO
2
intensity reduction
(in %)
11.1 The reduction of Scope 1 and 2 CO
2
intensity continued and was larger
than anticipated.
150 16.7
- Construction and office
waste intensity
reduction
(in %)
11.1 The reduction exceeded excellent level and was well in line with the
long-term ambition to reduce with 75% in 2030 versus 2015.
150 16.7
Overall achievement 91.7
1
BAM’s relative position within a peer group of 11 companies. TSR is defined as the share price increase, including dividends, based on the three-month average share price before the start and the end of the three-year performance period.
2
The adjusted EBITDA used for LTI excludes the direct and indirect effect of divestment (possible book gains, losses, transaction costs and the remaining operational EBITDA within the year).
Threshold
ExcellentTarget
Achievement
23 Performance on 2022-2024 LTI objectives
4 5 6 7
5 5.5 64.7
B A-A
-A A
20 25 30 35 40 45
20-25 25-30 ≥ 30
44
9 12 15 18
9-12 12-15 ≥ 15
16
CEO Message
55
Value creation Business performance Risk management and governance
Supervisory Board
Sustainability statement Financial statements Other information Appendices
Opening balance During the year Closing balance
LTI plan Award date Vesting date
End of
lock-up
period
Status of
shares
No. of
shares
1
Shares
awarded
1
Dividend
shares
1
Shares
forfeited
2
Adjustment
based on
actual vesting
Withhold
to cover
Status of
shares
No. of
shares
1
R.J.M. Joosten 1-1-2024 - 31-12-2026 18-04-2024 18-04-2027 18-04-2029 - - 218,900 conditional 218,900
1-1-2023 - 31-12-2025 20-04-2023 20-04-2026 20-04-2028 conditional 347,201 17,607 conditional 364,808
1-1-2022 - 31-12-2024 25-04-2022 25-04-2025 25-04-2027 conditional 272,354 13,811 conditional 286,165
1-1-2021 - 31-12-2023 22-04-2021 22-04-2024 22-04-2026 conditional 237,681 12,053 77,668 (145,397) unconditional 182,004
1-1-2020 - 31-12-2022 01-09-2020 24-04-2023 23-04-2025 unconditional 170,091 8,781 unconditional 178,872
L.F. den Houter 1-1-2024 - 31-12-2026 18-04-2024 18-04-2027 18-04-2029 - 140,654 (85,955) conditional 54,699
1-1-2023 - 31-12-2025 20-04-2023 20-04-2026 20-04-2028 conditional 220,445 11,179 (64,340) conditional 167,284
1-1-2022 - 31-12-2024 25-04-2022 25-04-2025 25-04-2027 conditional 172,900 8,768 conditional 181,668
1-1-2021 - 31-12-2023 22-04-2021 22-04-2024 22-04-2026 conditional 145,518 7,379 47,551 (96,654) unconditional 103,795
1-1-2020 - 31-12-2022 23-04-2020 24-04-2023 23-04-2025 unconditional 217,089 11,207 unconditional 228,296
1-1-2019 - 31-12-2021 29-04-2019 29-04-2022 29-04-2024 unconditional 20,436 1,055 unconditional 21,491
1
For the conditional shares, this is the ‘at-target’ number of conditionally awarded performance shares including dividend shares. The number of performance shares that vest may vary between 0 (in the event of ‘below threshold’ performance) and
150% (in the event of ‘excellent’ or ‘above excellent’ performance) of the ‘at-target’ number of performance shares. For Mr Joosten, the shares awarded in 2020 have been decreased pro rata according to the number of months in which he provided
management services during the relevant performance period. Since Mr Den Houter served as CEO on an interim basis until the appointment of Mr Joosten, the LTI award value for the 2020-2022 plan was based on an award value of 70% (CEO level
instead of CFO level) of fixed remuneration including the CEO allowance.
2
The prorated forfeiture of conditional performance shares in the LTI plans 2023-2025 and 2024-2026 for Mr Den Houter, since it was announced on 25 October 2024 that he would be leaving the Company per 1 March 2025.
24 TSR peer group ranking LTI plan 2022-2024
Balfour Beatty
Porr
Vinci
STRABAG
Kier Group
Heijmans
Hochtief
NCC
Skanska
BAM
Eiffage
0
50
100
150
200
1 2 3 4 5 6 7 8 9 10 11
25 LTI plan
56
CEO Message Value creation Business performance Risk management and governance
Supervisory Board
Sustainability statement Financial statements Other information Appendices
Share ownership of the Executive Board members
The Company has rules relating to possessing and trading in BAM securities. These rules are
published on the Company’s website. The table below shows the shares held by Executive Board
members on 31 December 2024.
26 Share ownership Executive Board members
1
(
x €1,000
)
R.J.M. Joosten (share ownership requirement 200% of fixed remuneration)
L.F. den Houter (share ownership requirement 150% of fixed remuneration)
239% (€1,484)
17%
(€105)
174% (€1,515) 48% (€420)
0
250% 300%200%150%100%50%
Vested shares from LTI plan
Privately acquired BAM shares
1
Ratios based on the number of unconditional shares on 31 December 2024, multiplied by the closing share price of
BAM at year-end 2024 (€4.20) divided by the fixed remuneration at year-end 2024.
Internal pay ratio and five-year analysis
BAM’s internal pay ratio in 2024 was 30 (2023: 25), meaning that its CEO’s pay was 30 times the
average pay within the organisation. The increase in the ratio is primarily caused by an increase of the
CEO remuneration.
The internal pay ratio is calculated as the total annual CEO remuneration divided by the average
employee remuneration (employee benefit expenses excluding restructuring costs and termination
benefits divided by the average number of FTE).
Both the annual CEO remuneration and the average employee remuneration are derived from the
financial statements (IFRS). External employees are not included in the calculation since BAM does
not have sufficient information available.
A five-year analysis of Executive Board remuneration versus internal pay ratio, average employee
remuneration and company performance can be found in table 27. It contains the performance
measure adjusted EBITDA, which is believed to be a crucial reflection of the success of the Company.
27 Five-year analysis Executive Board remuneration and company performance
(x €1,000)
CEO actual
CFO actual
Other benefits
4
Post-employment benefits
0
1,000
2,000
3,000
100,000
200,000
300,000
400,000
60
70
80
90
100
12
18
24
30
2020 2021 2022 2023 2024
2020 2021 2022 2023 2024
2020 2021 2022 2023 2024
2020 2021 2022 2023 2024
Executive Board remuneration
1
Company performance adjusted EBITDA
2
Average employee remuneration
Internal pay ratio
200,800
809
1,287
1,457
1,020
14
21
26
25
30
73
81 81
85
92
278,405
350,200
304,300
333,300
1,691
2,098
1,938
2,744
1,636
2,107
1
The actual remuneration for the CEO in 2020 is based on the annualised remuneration of Mr Joosten, who was
appointed per September 2020. The actual remuneration for the CFO in 2020 is exclusive of the CEO allowance and
the retrospective payment in 2020 of pension contributions to the CFO from 1 August 2018 onwards has been
allocated to the relevant years.
2
The adjusted EBITDA used for STI payout and LTI vesting over this period can deviate from these numbers, due to
a different calculation methodology. More information can be found in the relevant sections of the remuneration
reports.
CEO Message
57
Value creation Business performance Risk management and governance
Supervisory Board
Sustainability statement Financial statements Other information Appendices
Remuneration of the Executive Board in 2025
Based on advice from the Remuneration Committee, Audit Committee and Health, Safety and
Sustainability Committee, the Supervisory Board determined the performance objectives and their
weighting for the 2025 short-term incentive and the 2025-2027 long-term incentive.
For the short-term incentive, the existing objectives will remain unchanged. The definition of the
safety objective will however change from incident frequency (IF Total) to the number of field/project
safety visits by Executive Committee members under a strict definition to ensure that these visits
truly support and drive an improved safety culture in the company, with the added condition that any
payout on the safety objective will be nullified in case of loss of life. For the long-term incentive,
the existing objectives will also remain unchanged albeit some optimisations in the sustainability
scorecard.
The Relative TSR peer group remains unchanged for the 2025-2027 LTI award (BAM Group, Balfour
Beatty, CFE, Galliford Try Holdings, Heijmans, Hochtief, Kier Group, Morgan Sindall Group, NCC, Peab,
Skanska, STRABAG).
28 Performance objectives and weighting
(in %)
STI
2025
Adjusted EBITDA (€)
Employee engagement (action taking)
2
Total cash flow (€)
1
Scope 1 and 2 CO
2
intensity reduction (%)
Safety
3
25
45
10
10
10
1
Average end-month IFRS cash position (excluding joint ventures) for October-December 2025 minus average for
October-December 2024.
2
Measured with the standardised, external (Glint) survey. Average % employees positive over 2025 on Glint survey
statement: ‘I believe meaningful action will be taken as a result of this survey’.
3
Total number of field/project safety visits by Executive Committee members (either jointly or individually) of
high-risk projects, together with a safety expert including preparation, on-site discussion of incidents with the
project director and report out of agreed actions in Executive Committee meeting. Safety performance nullified
in case of loss of life.
LTI
2025-2027
Relative TSR
Sustainability scorecard
2
Adjusted EBITDA (%)
1
Scope 1 and 2 CO
2
intensity reduction (%)
16.7
33.3
33.3
16.7
1
Expressed as a percentage of revenue.
2
Number from 6 scorecard targets achieved by the end of 2027 on circularity, climate adaptation, biodiversity,
safety, health & inclusion, social value and decarbonisation.
Sustainability insight
HS2’s main works civils contractor, EKFB (a joint
venture including BAM Nuttall), has been awarded
‘Platinum’ status by the Supply Chain Sustainability
School (SCSS), in recognition of EKFB’s commitment
to sustainable practices, which include the use of the
Digital Earthworks programme and improvements
to supply chain management.
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CEO Message Value creation Business performance Risk management and governance
Supervisory Board
Sustainability statement Financial statements Other information Appendices
Remuneration Supervisory Board
in 2024 at a glance (
x €1,000
)
H.Th.E.M.
Rottinghuis
chairman
G. Boon
vice-chairman
B. Elfring
D. KoopmansJ. Hanson M.P. Sheffield
N.M. Skorupska
0
20
40
60
80
100
120
105
70
4.5
60
9.1
60 60
Fixed remuneration Committee fee Attendance fee
14.7
9
17.9
9
14.7
7.5
60
22.1
6
21
4.5
10.5
2.2
1.5
Labour market reference group (remaining unchanged for 2025)
Aalberts, Arcadis, Balfour Beatty, Corbion, Fugro, Heijmans, Keller Group, Kier Group,
Koninklijke KPN, Morgan Sindall Group, PostNL, Renew Holdings, SBM Offshore, Signify
Purpose and 2024 policy
Fixed
remuneration
Purpose: Provide compensation to attract and retain Supervisory Board
members who contribute to the desired board composition
regarding expertise, experience, diversity and independence.
Policy: Chairman €105,000 per annum
Vice-chairman €70,000 per annum
Member €60,000 per annum
Committee fee Purpose: Provide compensation for the support and advice that the
Committee provides to the Supervisory Board on matters
under its responsibility.
Policy: Chairman €10,500 per annum
|
Member €7,350 per annum
Other
arrangements
Purpose: Enable the Supervisory Board members to undertake their
role.
Policy: Attendance fee of €1,500 per meeting outside country of
residence. Reimbursement of actual incurred costs.
Remuneration of the Supervisory Board in 2024
The members of the Supervisory Board received remuneration in the past financial year in line with
the remuneration policy as adopted by the Annual General Meeting on 10 April 2024.
The remuneration policy for the Supervisory Board is available on BAM’s website
( see www.bam.com/en/about-bam/corporate-governance/articles-of-association-rules-and-codes).
The remuneration of the individual members of the Supervisory Board over the last five years can be
found in the table below. No options or shares were awarded to members of the Supervisory Board,
and no loans were issued to them.
29
Five-year overview of total Supervisory Board remuneration
1
(x €1,000)
2024 2023 2022 2021 2020
H.Th.E.M. Rottinghuis, chairman 131 108 103 102 48
G. Boon, vice-chairman 85 71 70 67
59
B. Elfring 84 69 68 62 20
J. Hanson 13 - - - -
D. Koopmans 87 74 68 65 23
M.P. Sheffield 82 67 65 59 164
N.M. Skorupska 88 66 65 42 -
H. Valentin, former member - - - 16 59
H.L.J. Noy, former chairman - - - - 46
C.M.C. Mahieu, former member - - - -
54
Total 570 455 439 413 473
1
Amounts for 2020 include the 20% Covid-19 reduction and the additional remuneration for Mr Sheffield as
delegated Supervisory Board member.
Share ownership of the Supervisory Board members
The table below shows the shares held by Supervisory Board members on 31 December 2024.
30
Share ownership Supervisory Board members
Type of shares Number of shares
H.Th.E.M. Rottinghuis, chairman Privately acquired BAM shares
100,000
G. Boon, vice-chairman Privately acquired BAM shares
100,000
D. Koopmans
Privately acquired BAM shares
15,000
CEO Message
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Value creation Business performance Risk management and governance
Supervisory Board
Sustainability statement Financial statements Other information Appendices
Dunfermline
Dunfermline Learning Campus brought two high schools and Fife
College together on one site, accommodating up to 2,700 students,
sharing state-of-the-art facilities. The new high school is built to
Passivhaus standards.
60
Sustainability
statement
These homes are designed with
flexibility as a key principle. With a
living area ranging from
approximately 130 m² to 135 m²,
they offer space and comfort for
families of all sizes. These
sustainable and comfortable
2.5-story flat-roof houses will be
assembled on-site—and
all within a single day!
Cruquius
(Amsterdam),
BAM Wonen
CEO Message
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Sustainability statement
Financial statements Other information Appendices
BAM considers sustainability as a prime driver for BAM’s future business and its ability to create
long-term value. BAM aims to be a leader in the sector to create a socially and environmentally
sustainable environment. Progress is measured continuously, through which BAM is encouraged to
deliver sustainable solutions and actively engage with stakeholders to accelerate the sustainability
goals.
BAM consistently fosters communication and dialogue with both internal and external stakeholders
to learn about the perspectives and concerns of those parties impacted by BAM’s activities and how
they can impact BAM. Such interactions not only expand BAM’s knowledge base but also enhance its
capacity for sound decision-making and the effective prioritisation of actions.
BAM determined which sustainability-related matters are material to stakeholders and BAM. The
matters identified through the double materiality assessment are used for strategic direction and
control on material sustainability matters. The response to material sustainability matters is fully
integrated in BAM’s organisational processes. The material sustainability matters are subsequently
used to determine the scope of BAM’s sustainability reporting. The implementation of the double
materiality approach and related sustainability reporting is not intended as a compliance exercise but
to drive strategic embedding of sustainability in BAM’s core activities, aiming to achieve sustainable
change and a resilient company.
Double Materiality Assessment
BAM conducted a double materiality assessment in accordance with the European Sustainability
Reporting Standards (ESRS). An extensive assessment performed in 2023 has been reviewed and
updated in 2024. ESRS 2 defines the frequency of sustainability reporting under the ESRS as annual,
given that the sustainability statement is part of the BAM’s management report. Accordingly, BAM’s
continuous risk processes are aimed to monitor and update its material impacts, risks and
opportunities and material information to be included in the sustainability statement.
BAM concluded in 2024 that the outcome of the prior reporting period’s materiality assessment is
still relevant at the reporting date. There have been no significant changes in BAM’ s organisational
and operational structure and that there have been no material changes in the external factors that
could generate new or modify existing impacts, risks and opportunities (IROs) or that could impact
the relevance of a specific disclosure. The Executive Committee and Supervisory Board evaluated the
advice provided by the supporting committees on the approach to and outcomes of the assessment.
The tables on
page 65 until 70 show BAM’s material sustainability matters and the related impacts,
risks and opportunities. The methodology and underlying assumptions of the double materiality
assessment are included in the grey box on the next page.
6.1 Approach to sustainability reporting
Sustainability in BAM
Strategy
Sustainability is a key driver in BAM’s business model and strategic decision making. In executing the strategy
and driving the sustainability targets, BAM continues to support and encourage clients and the supply chain
to accelerate their sustainability goals. In the coming years BAM will work with value chain partners and
other stakeholders to fully leverage BAM’s contribution to the integrated planet and people themes and
continue the journey towards a positive impact on people and planet. This makes the information in
chapter 2 essential to understand BAM’s reporting on sustainability performance.
Sustainability reporting
The disclosure requirements BAM deems material for 2024 under the European Sustainability Reporting
Standards (ESRS) are all included in BAM’s sustainability statement. General information is included in
chapter 6.1 and
6.2, environmental information is included in
chapter 6.3 and
chapter 6.6 (EU
Taxonomy), social information in
chapter 6.4 and business conduct disclosures in
chapter 6.5. Some
disclosure requirements are incorporated by reference to other parts of the management report.
The general disclosure addresses the basis for preparation of the sustainability statement.
Topical sustainability disclosures address:
• Governance disclosures (GOV);
• Strategic and business model-related disclosures (SBM), including a transition plan for climate change and
biodiversity respectively;
• Material impacts, risks and opportunities (IRO), including disclosures on policies, actions and resources;
• Metrics and targets that BAM reports to monitor and manage those impacts, risks and opportunities.
BAM’s material sustainability matters relate to E1 Climate change, E2 Pollution, E4 Biodiversity, E5
Resource use and circular economy, S1 Own workforce, S3 Affected communities and G1 Business conduct.
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Sustainability statement
Financial statements Other information Appendices
Scope
The double materiality assessment encompasses the entire Royal BAM Group, including all activities, divisions, and
businesses. This extends to BAM’s upstream activities, own operations, and downstream activities, covering all
associated geographical regions.
Impact Materiality
A sustainability matter is material from an impact perspective when it pertains to BAM’s material actual or potential,
positive or negative impact on people or the environment over short-, medium- and long-term time horizons.
BAM determined a quantitative threshold that was also made qualitative for the purpose of the survey and dialogue
sessions. The materiality of an impact is based on the scale and scope of the impact, the irremediable character (in
case of negative impacts) and likelihood of impact to occur. An impact is material if it is scored ‘critical’ or ‘high’. The
impact is not material it is scored ‘medium’, ‘low’, or ‘negligible’.
Financial Materiality
A sustainability matter is material from a financial perspective if it triggers or may trigger material financial risks or
opportunities for BAM. This is the case when it generates or may generate risks or opportunities that have a material
influence (or are likely to have a material influence) on BAM’s cash flows, performance, position, cost of capital or
access to finance in short-, medium- and long-term time horizons.
The materiality of a financial risk or opportunity is based on the magnitude of the effect and likelihood of the risk or
opportunity to occur. BAM determined a quantitative threshold that was also made qualitative for the purpose of the
Reporting principles and assumptions
survey and dialogue sessions. A financial risk or opportunity is material if it is scored ‘critical’ or ‘high’. The
financial risk or opportunity is not material it is scored ‘medium’, ‘low’, or ‘negligible’.
Thresholds positive and negative impact materiality
BAM has set a lower threshold for negative sustainability impacts. BAM aims to protect the company from risks,
align with stakeholder expectations, and ensure long-term success. While positive impacts are valuable, the
costs and consequences of negative sustainability outcomes can be far more severe and harder to reverse,
warranting stricter thresholds.
Gross (inherent) or residual risks and opportunities
BAM identifies material impacts excluding the consideration of any mitigating measures. Compliant with ESRS,
BAM discloses gross impacts and the (potential) actions taken to mitigate the (negative) impacts.
BAM identifies gross material financial risks and opportunities. In specific circumstances BAM considers
mitigating activities in determining the financial effects for BAM. Risk mitigating activities could change the
expectation of the effect of the risk on BAM or change the extent to which BAM’s financial positions is affected.
Therefore, risk mitigation activities could affect the expectation of whether and how a sustainability-related risk
might affect BAM’s financial position. A description of the mitigating measures considered in BAM’s risk
assessment is described below:
- Clients will be paying a premium for certain services or covering higher costs levels in the industry, for
example due to carbon pricing consequences in BAM’s supply chain.
- As common industry practice, BAM insures its construction projects for the material damage caused by
extreme weather, which is in line with its peers.
Double materiality has two dimensions, namely: impact materiality and financial materiality.
Thus, the methodology used for this assessment is based on two processes. The first process involves the
identification, assessment, and prioritisation of actual and potential impact made by BAM on people and
the environment. The second process focuses on identification, assessment, and prioritisation of financial
risks and opportunities for BAM associated with Environment, Social, and Governance (ESG) matters.
Following the methodology of double materiality assessment, BAM actively solicited input and feedback
from internal and external stakeholders to gain a comprehensive understanding of the most pressing
concerns to stakeholders. This approach helps to establish evidence of actual or potential impact on both
people and the environment associated with BAM’s activities, particularly from the perspective of
stakeholders who may be directly impacted.
Impact Materiality (inside-out)
Impacts of BAM on people
and environment
Financial Materiality (outside-in)
Financial risks and opportunities for the
companyresulting from sustainability matters
financial risks and opportunities related to the impacts and dependencies were identified.
Stakeholders were also invited to identify any supplementary risks and opportunities for BAM in the
survey.
Finance directors and experts were invited to participate in the financial materiality survey.
Participants were requested to assess the size and likelihood for each identified financial risk or
opportunity. Whether a risk or opportunity is classified as material in the outcome of the assessment
is determined based on pre-defined thresholds in line with BAM’s risk management process.
Analysis of results and prioritisation
The data derived from the survey results was collected and analysed, with particular attention to
outliers, unexpected findings, and alignment with BAM’s sustainability strategy. Regarding impact
materiality, dialogue sessions on the outcomes were held with the experts involved in the
‘identification of matters’. For financial materiality, a dialogue session was conducted involving BAM’s
financial leadership, including the CFO.
In validation sessions, the completeness of the financial material risks and opportunities was
evaluated, leading to the addition of two material financial matters (Financial risk of climate change
on BAM’s land bank valuation and Opportunities related to energy efficiency). This addition was
prompted by the anticipation that these potential financial risks and opportunities may evolve in the
near future, for example due to changes in legislation or change in client demand.
BAM maintains an ongoing dialogue with external stakeholders, including those in BAM’s value chain,
to remain informed about their perspectives and expectations with respect to sustainability matters.
The level of engagement with external stakeholders was increased during the development of the
sustainability strategy. BAM’s sustainability strategy, launched in the first quarter of 2023, includes the
material matters discovered during that process. Throughout 2024, BAM continued to engage with
external stakeholders through numerous discussions centred around various ESG topics, as
summarised in figure 31.
These qualitative insights and context-specific perspectives helped shape the views of internal
stakeholders on the identification and classification of material impacts, risks and opportunities. In
the validation process, the stakeholder feedback helps to validate the prioritisation of matters as well.
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Interactions with stakeholders
In 2024 the double materiality assessment update has been reviewed by the Risk and Control
committee, Executive Committee and Supervisory Committees (Audit committee and Health, Safety
and Sustainability committee). The input in this update was derived from the assessment performed
in 2023:
Identification of matters
BAM performed a desktop review to gather a wide range of potential matters relevant to BAM. The
desktop review included a media search related to the industry, review of internal documents, review
of the previous materiality assessment, peer reviews, and a global standards review, including the list
of topic, sub-topics and sub-sub-topics from ESRS 1 AR16. In this process BAM focused on for example
specific activities, geographies that possibly gave rise to heightened risks or adverse impacts. BAM
also explicitly identified impacts through its own operations or as a result of business relationships.
BAM held several dialogue sessions with internal stakeholders to identify actual and potential impact
and financial risks and opportunities based on the list of potential matters relevant to BAM.
Stakeholders were invited to the dialogue sessions that fit their areas of expertise (within
Environment, Social or Governance). These sessions were attended by employees across BAM’s
divisions and underlying businesses.
Assessment of impact materiality
A wider group of internal stakeholders, including the people involved in the identification of impacts,
risks and opportunities, was invited to participate in a survey regarding impact. BAM requested the
participants to assess the scale, scope, irremediable character (for negative impact) and likelihood
(for potential impact) per impact, risk or opportunity.
Impacts, risks and opportunities are classified as material when the assessment outcome exceeds the
pre-defined thresholds. The defined criteria, i.e., quantification of the assessment, are in line with
BAM’s Enterprise Risk Management (ERM) process. BAM facilitated pre-read material, Q&A sessions,
and one-on-one meetings to ensure the participants were well-informed throughout the process.
Assessment of financial materiality
BAM aimed to harmonise this process as much as possible with the existing risk management
process. Consequently, BAM’s risk management experts played a role in consolidating the extensive
list of potential financial risks and opportunities into a more manageable list of nineteen matters.
BAM has considered the connections of the BAM’s impacts and dependencies with risk and
opportunities that may arise from those impacts and dependencies during the identification and
assessment phase of the process on financial materiality. During dialogue sessions with stakeholders,
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Sustainability statement
Financial statements Other information Appendices
External stakeholder Processes and communication Matters discussed
Clients Joint project and business development, strategic partnership,
workshop, (social) media, in-person meeting, podcast recording
Collaboration on sustainability, circularity
Knowledge institutions In-person meeting, workshop, online meeting Circularity, water scarcity, decarbonisation
Local communities
In-person meeting, workshop, information market,
guest lecture, open office hours, BouwApp, voluntary work community
Safety during construction works, noise pollution and other disturbances due to construction works
Suppliers and subcontractors In-person meeting, online meeting, virtual event Timber certification, circularity, sustainability strategy, supply chain, hydro-treated vegetable oil
(HVO), petrol engine alternative products, hydrogen and innovation
Industry bodies Virtual event, conference, workshop, round-the-table event,
in-person meeting, online meeting
Decarbonisation, sustainability nature-based solutions, climate adaptation, biodiversity, nature
positive initiatives, sustainability strategy, innovation, social value
Regulators In-person meeting, online meeting Sustainable mobility, regeneration, climate resilience, HVO adoption by the industry, combatting
climate change, sustainability strategy, carbon reduction, biodiversity
Investors and analysts In-person meeting, online meeting, round-the-table event
Biodiversity, working conditions in the value chain, natural capital, human rights, biodiversity, sustainability
NGOs and trade unions In-person meeting, online meeting, (social) media Decarbonisation, safety
Media Conference, media content Decarbonisation, energy transition
31 External stakeholder overview
Impacts are actual impacts, risks or opportunities unless stated that they are potential impacts.
Brief descriptions of the material impacts, risks or opportunities are included in the tables.
More information on how BAM responds to the effects of the impacts, risks and opportunities is
included in the topical sections under ‘Environment’, ‘Social’, and ‘Governance’.
Material sustainability matters in 2024
The following tables list the sustainability-related impacts, risks and opportunities BAM has identified
and assessed as material as a result of the double materiality assessment process. Each material ESRS
topic is presented in the following tables, including sub-(sub)topics related to BAM’s material impacts
and risks, e.g. climate change mitigation and climate change adaptation.
In addition, BAM indicates in the tables whether the impacts, risks and opportunities are in BAM’s
own operations (OO) or value chain (VC). For the social material impacts BAM indicates whether it
affects BAM’s own employees (OE), own workforce (OW) or communities (COM).
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Financial statements Other information Appendices
Material impact, risk or opportunity Description Time horizon
Climate change mitigation
Negative impact
(OO)
GHG emissions: Scope 1 and 2 BAM has a negative impact on GHG emissions due to the use of (fossil) fuel in BAM’s vehicle
fleet, construction equipment and to operate construction sites and offices. GHG emissions
have a significant impact on the environment, as it leads to global warming and climate
change, extreme weather, rising sea levels.
Actual S, M, L
Negative impact
(VC upstream and downstream)
GHG emissions: Scope 3 The negative impact of GHG emissions in BAM’s value chain are driven by, amongst others,
the use of GHG emission intensive materials, transport and the use of sold products by
clients and end users. The impact on the environment is considered significant, as it leads
to global warming and climate change, extreme weather, rising sea levels.
Actual S, M, L
Opportunity
(VC downstream)
Energy efficiency opportunities
Prioritizing building energy efficient buildings results in a financial opportunity for BAM in
terms of market share and premium prices for those energy efficient buildings.
Potential S, M, L
Climate change adaptation
Positive impact
(OO)
Climate adaptive solutions BAM’s tender and project design activities have a positive impact on enhancing the climate
adaptive design of development and construction projects helping adjusting the build
environment to climate change.
Actual S, M, L
Risk
(OO)
Climate risk on land bank Risk of impairment of land and building rights in BAM’s portfolio, mainly in the Netherlands,
due to future consequences of climate change (drought, heat, storm, floods), which has an
adverse impact on costs of development.
Potential L
E1 - Climate change
(OO) Own operations
(VC) Value chain
(OE) Own employees
(OW) Own workforce
(COM) Communities
S, M, L Short, medium and/or Long term
Positive impact
Opportunity
Negative impact
Risk
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Material impact, risk or opportunity Description Time horizon
Pollution - entity-specific
Negative impact
(VC upstream)
Pollution of air and soil Air and soil pollution in BAM’s supply chain for the key materials has severe impacts
on both human health and the environment. It leads to diseases, and even premature
death, as well as harm to crops, forests and bodies of water.
Actual S, M, L
E2 - Pollution
Material impact, risk or opportunity Description Time horizon
Biodiversity and ecosystem services
Negative impact
(OO)
Biodiversity loss through land use
change
Land use change is negatively impacted by BAM’s activities, such as infrastructure
development. This type of land-use change can lead to the destruction of natural habitats,
fragmentation of ecosystems, and displacement of native species, which can negatively
impact biodiversity.
Actual S, M, L
Positive impact
(OO)
Ecosystem services
In dialogues with municipalities and value chain partners, BAM has a positive impact on
ecosystem services by influencing the area design in BAM's property development business
(both in residential development, as well as mixed-use)
Actual S, M, L
E4 - Biodiversity
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Financial statements Other information Appendices
Material impact, risk or opportunity Description Time horizon
Resource use
Negative impact
(VC upstream)
Depletion of raw materials BAM has a negative impact on the environment by direct resource use (i.e., overuse of raw
materials, natural resources, deforestation and habitat destruction); depending on how and
where the resources are sourced, as well as how a company uses them.
Actual S, M, L
Negative impact
(OO)
Waste (hazardous and non-hazardous
waste)
BAM’s waste has negative impacts on the environment and human health, including
pollution of air and water, greenhouse gas emissions, and the spread of disease. Improper
disposal of hazardous waste can also lead to soil and water contamination and harm to
wildlife.
Actual S, M, L
Negative impact
(OO)
Waste reuse and recycling
BAM’s negative impact caused by waste can be reduced by recycling and reuse. It can
reduce landfill waste and air/water pollution and helps to conserve natural resources
needed for the production of BAM’s key materials, like concrete, steel, timber and asphalt.
Actual S, M, L
Circular economy
Positive impact
(OO)
Circular design The positive impact BAM has on resource use by designing for disassembly at the products
end-of-life. This contributes to a circular economy.
Actual S, M, L
E5 - Resource use and Circular economy
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S1 - Own workforce
Material impact, risk or opportunity Description Time horizon
Equal treatment and opportunities
Positive impact
(OE)
Diversity Promoting gender diversity positively impacts the representation of female workers in the
sector. It positively impacts employees by promoting fairness and reducing discrimination,
leading to more motivated and satisfied workers. Non-discrimination practice in BAM has a
positive impact on people, as it can ensure fair treatment and opportunities for all
employees, regardless of their gender, race, age, or other characteristics.
Actual S, M, L
Positive impact
(OE)
Return on inclusion BAM aims to have a positive impact on people working at BAM through its inclusive
company culture. This positively impacts the individuals by providing them with
employment opportunities and the ability to be independent and self-sufficient. This can
also positively impact the community by promoting a more diverse and inclusive society.
Actual S, M, L
Positive impact
(OE)
Training and skills development
BAM positively impacts its own employees and contributes to a safe, equitable and just
society by offering training and skills development opportunities for own employees. This
can positively impact individuals by increasing their job satisfaction, earning potential, and
employability. It can also have a positive impact on the natural environment by enabling
employees to implement more sustainable practices in the workplace.
Actual S, M, L
Occupational heath and safety
Negative impact
(OW)
Occupational health and safety Working in the construction sector in general has a negative impact on occupational
health and safety; evidenced by the existence of incidents, work-related injuries and lost
lives for those working for BAM and work on locations managed by BAM (such as building
sites).
Actual S, M, L
Negative impact
(OE)
Work related ill health long term
effect
Working in the construction industry exposes workers to a variety of hazards that can cause
long-term health effects.
Actual L
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Financial statements Other information Appendices
Material impact, risk or opportunity Description Time horizon
Social value - entity-specific
Positive impact
(COM)
Social value BAM’s incorporation of social value in the business has a positive impact on social mobility,
improves local (foundational) economy and social inclusion (in NL also referred to as Social
Return on Investment). The social value activities positively impact the quality of life of
areas where BAM operates
Actual S, M, L
S3 - Affected communities
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Financial statements Other information Appendices
G1 - Business conduct
Material impact, risk or opportunity Description Time horizon
Business conduct
Positive impact
(OE)
Corporate culture The positive impact BAM’s corporate culture has included commitment to ethical and
sustainable business practices, improves employee morale, and enhanced reputation.
Actual S, M, L
Negative impact
(OO)
Prevention and detection of
corruption and bribery
Potential corruption and bribery incidents can have negative impacts on society,
including damaging public trust, undermining fair competition and hindering economic
growth. Bribes or kickbacks may lead to substandard materials or practices being used,
which could result in risks for BAM’s workforce, harm to the environment and human health
in general.
Potential S, M, L
Negative impact
(OO)
Protection of data and respecting
privacy
Potential data and privacy breaches could result in loss of trust from various stakeholders
such as employees and suppliers. Data and privacy breaches possibly could escalate to
negative financial implications resulting from phishing and identity theft, among others.
Potential S, M, L
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Sustainability statement
Financial statements Other information Appendices
BAM recognises that the on-going due diligence and double materiality assessment process will be
refined over time and possibly impacted by the sector-specific standards to be adopted; specifically
noting that the sustainability statement may not include every impact, risk and opportunity or
additional entity-specific disclosure that each individual stakeholder (group) may consider important
in its own particular assessment. BAM also expects more robust outcomes through increased data
insights and more clarity on the practical implementation of the guidelines and comparability across
the industry in the coming years.
The assessment results identified a limited number of value chain-related topics and a number of
topics close to the threshold. Anticipating greater insight and data accessibility, BAM expects
additional value chain-related themes to emerge as material outcomes. For instance, the impact on
biodiversity in the supply chain is identified as an area BAM is monitoring closely.
Also, specific impacts, risks and opportunities related to water consumption, withdrawals and
discharges have been close to the threshold. The impacts, risks and opportunities are periodically
examined by experts and discussed with Executive Board and in various committees.
Disclosure requirements
The outcomes of the double materiality assessment are fully integrated in BAM’s risk management
process. BAM derives forward looking guidance from this outcome and includes the relevant insights
in strategy iteration and priority setting in business programmes, targets and reporting.
The relevant disclosures on material sustainability impacts, risks and opportunities are included in
this report provided that the data and information are available and meet the necessary quality
standards. The sustainability statement not only highlights BAM’s commitment to transparency
about sustainability performance to inform stakeholders, but also serves as a cornerstone for
nurturing a responsible and resilient business approach. BAM is committed to transparency both in
its knowledge and in areas where information may be lacking, striving to maintain openness in its
reporting.
All disclosure requirements complied with following the outcome of this double materiality
assessment are included in
chapter 6.7.
Sustainability insight
BAM Infra Nederland introduced the on-site
cold recycling technology of asphalt pavement,
which is friendly to the environment and offers
economic benefits. BAM first experimented
with the technology on its own yard and has
since delivered a project for the municipality of
Moerdijk.
BAM’s aim to continuously improve reporting transparency on sustainability performance and
progress with respect to the strategy, resulted in this sustainability statement as part of the
management information provided in this report.
Basis of preparation
Reporting framework and specific regulation (BP-1)
The sustainability statement disclosed in this annual report has been prepared on a consolidated
basis in accordance with the European Sustainability Reporting standards (ESRS) as adopted by the
European Commission and compliant with the double materiality assessment process carried out to
identify the information reported pursuant to the ESRS. The sustainability statement also complies
with Article 8 of Regulation (EU) 2020/852 (Taxonomy Regulation), referred to in chapter 6.6
specifically.
The scope of the consolidation in the sustainability statement is the same as for the financial
statements, including BAM’s subsidiaries (refer to page 198 of the financial statements). The
subsidiaries are exempted from individual or consolidated reporting pursuant to Articles 19a(9) or
29a(8) of Directive 2013/34/EU. In addition, BAM applies the ESRS to define the organisational
boundary for reporting sustainability information.
• Own operations refers to the full range of activities and processes directly controlled by BAM. This
includes all operational aspects where BAM has direct managerial control and decision-making
authority. BAM defines own operations as parent plus subsidiaries. Acquisitions and divestments
are disclosed in line with the inclusion in the financial statements.
• BAM additionally assesses the level of operational control for its joint arrangements. Operational
control (over an entity, site, operation or asset) is defined as the situation where BAM has the ability
to direct the operational activities and relationships of the entity, site, operation or asset. The
reported GHG emissions should reflect the terms and conditions of the relevant agreements. In
construction projects, control is typically reflected in the share of the involved parties according to
their agreed-upon contributions and risk-sharing arrangements. Despite joint decision-making
protocols in most of these arrangements, operational contribution is prearranged and assigned
explicitely to the different parties (i.e., expertise), reflecting in for example appointing key
personnel, and controlling day-to-day operations on specific phases of the project. Based on this
practice, BAM’s operational control is assumed equal to the equity share of BAM in the joint
operation.
• Quantities of materials used in the production of BAM’s products and services relate to own
operations, but are based on materials procured in BAM’s value chain. This part of sustainability
information on BAM’s own operation does not explicitly relate to value chain impact, however the
impacts that arise from the upstream value chain are indirectly linked to this.
• The topic-specific definitions, methodology, reporting principles and assumptions are explained in
the notes to the topical disclosures.
Further information on BAM’s value chain is included in chapter 2.1 About BAM.
As this is the first year of application of ESRS, no specific comparison can be made with previous years
in terms of scope and reporting boundaries. Comparative figures have been disclosed in line with
current year reporting principles and assumptions, and any topic specific deviations are disclosed.
BAM anticipates that comparatives become progressively available after the first year of reporting
which will make the sustainability information presented in the sustainability statement more useful.
Disclosures in relation to specific circumstances (BP-2)
Time horizons
In general, BAM assesses material impacts, risks and opportunities over the short, medium and long
term. The short term refers to the reporting period of the financial statements. Since sustainability-
related matters often materialise over time, the nature of these topics warrants more forward-
looking reporting. In line with the strategic period (2024-2026) BAM defines:
• 2025 as short term;
• between 2026 and 2030 as medium term; and
• beyond 2030 as long term.
In the construction sector, project lifecycles can vary significantly. In general medium-term planning
focuses on projects or goals within the span of current pipelines and contracted projects. However, in
the initial effort to implement the double materiality process, BAM has opted to define a narrower
timeline. This approach is intended to focus on short-term initiatives that can drive immediate
improvements in sustainability performance.
BAM also recognises that the external pressures (e.g., customer expectations, regulations) prioritise a
shorter time horizon for achieving certain medium term sustainability objectives. BAM aims to refine
these terms going forward to demonstrate further alignment between sustainability planning,
business strategy, and sector realities.
Estimations, sources of estimation, and outcome uncertainty
Making judgements, assumptions and estimates is a fundamental part of preparing sustainability-
related disclosures. Useful contextual assumptions and those that can significantly impact
measurements are explicitly disclosed in the sustainability statement to aid in the interpretation of
sustainability information.
6.2 General information and sustainability reporting principles (ESRS 2)
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Sustainability statement
Financial statements Other information Appendices
statement, including both qualitative and quantitative factors. If considered material,
the prior-period reported data will be restated or adjusted, unless it is impracticable to do so.
The reason why information is revised will be disclosed alongside the topical disclosures.
No material restatements have been included in the sustainability statement. In BAM’s sustainability
statement 2024 one adjustment has been made compared to previously disclosed information.
IF BAM (incident frequency for own employees), included in chapter 6.4 as a entity-specific metric
related to S1-14, has been adjusted including office personnel, in order to align with the definition of
own employees that is consistently used in S1.
32
Incident frequency (safety) recalculation
2024
reported
2023
recalculated
2023
original
IF BAM
2.9 2.8 3.4
Structure of the report
BAM has chosen to incorporate some of the strategy and corporate governance disclosures from the
cross-cutting standard ESRS 2 in the other parts of the management report as this information is best
read in close connection with the overview of BAM’s activities. In the ‘incorporated by reference’
tables under each topical disclosure the relevant page numbers are linked to the disclosure
requirements.
This information is an integral part of the sustainability statement and included in the assurance
scope. Any other references included in the narrative consider further details or explanations in other
parts of the management report, but are not part of the disclosure requirements in ESRS and hence
not included in the assurance scope.
The Supervisory Board has appointed EY Accountants bv to provide independent assurance of the
report to provide BAM’s stakeholders with assurance about BAM’s sustainability statement. BAM has
obtained limited assurance for the sustainability statement reported in chapters 6 and the
information incorporated by reference in chapter 2, chapter 4 and chapter 5.
Use of phase-in provisions in accordance with Appendix C of ESRS 1
BAM has disclosed in table 33 how it applied the transitional provisions and included specific
references to material disclosure requirements that may or may not be omitted or that are not
required in the first year(s) of preparation of the sustainability statement under the ESRS.
For specific metrics, BAM uses information from the value chain partners, i.e. Scope 1, 2 and 3
reporting, incident frequency (including hired workers, subcontractors), and waste (intensity). In
these cases accounting principles disclosed clarify for which part of the data BAM relies on third party
input, if applicable. Reporting based on third party data deals with measurement uncertainty, for
example due to the quality or availability of data from value chain partners. BAM also used indirect
sources such as industry-average emission factors, spend based approach and extrapolations,
predominantly in the calculation of GHG emissions (Scope 3) associated with BAM’s suppliers and
customers and, also related to the Scope 3 GHG emission baseline for 2019 and the reporting of key
materials (resource inflows). These metrics are subject to a high level of measurement uncertainty.
See Scope 3 GHG emissions (E1-6) and Resource inflows (E5-4) for further details.
BAM acknowledges that data sources and estimates may be refined in future reporting periods when
more relevant information becomes available. Also, information to assess industry benchmarks (for
example used for estimated data with regard to resource inflows) may emerge as the number of
reporters increases and reporting practices become more established.
Notwithstanding any uncertainties highlighted, the sustainability statement is prepared and
presented in accordance with the requirements of the ESRS and applicable legislation.
Forward looking information
By nature, forward looking information, like plans and targets, involve risk and uncertainty because
they relate to future events and circumstances. There are many factors that could cause actual
results and developments to never occur or to differ materially from those expressed or implied.
Changes in preparation or presentation of sustainability information and reporting errors in prior periods
Changes in previously reported information can result from adjustments or restatements in the
sustainability information for one or more periods.
• Restatements are as a result of errors. These errors may arise from misuse or failure to use reliable
information that was available and BAM reasonably could have obtained and considered.
Continuous strengthening of internal control practices related to sustainability reporting aims to
mitigate the risk for errors in reported information.
• Adjustments are as a result of changes in estimates and differ from (corrections of) prior-period
errors. A change in estimate results from new information or new developments.
BAM has a sustainability reporting restatement policy that describes the principles used in case of
restatements and adjustments (including both errors and changes in estimates). BAM assesses on a
case-by-case basis whether the restatement or adjustment is material for the sustainability
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Financial statements Other information Appendices
33 Transitional provisions
Disclosure requirement Comment on phase-in
SBM-3 Material impacts, risks and
opportunities and their interaction
with strategy and business model
BAM omits the information prescribed by paragpraph 48(e) (anticipated
financial effects) for the first year of preparation.
E1-9 Anticipated financial effects from
material physical and transition risks
and potential climate-related
opportunities
Datapoints omitted for the first year of preparation of the sustainability
statement, refer for short overview to paragraph below.
S1-13 Training and skils development
Datapoints omitted for the first year of preparation of the sustainability
statement. Refer for short overview to paragraph below.
S1-14 Health and safety
Work-related ill-health: All datapoints omitted for the first year of preparation of
the sustainability statement. Refer for short overview to paragraph below.
Number of days lost to injuries, accidents, fatalities: Datapoints from the
disclosure requirement have been disclosed in chapter 6.4 Social information.
For the impacts, risks and opportunities that are material, and are phased-in according to table 33,
BAM briefly explains below how these topics relate to the business model, strategy and if and how
BAM determined targets, has policies in relation to the matters and discloses any relevant actions
and metrics applicable for 2024.
- Financial effects from material climate-related physical and transition risks (E1-9)
BAM intends to further define and report financial effects related to climate-related physical and
transition risks in the coming years. For further disclosures on financial effects of climate-related
risks, also refer to the financial statement on page 136. The financial effect of sustainability
developments and business roadmaps is expected to be limited, because this is largely part of the
generic replacement plans of for example equipment and cars. The most substantial decisions that
were recently taken, related to direct investments and/or decisions that have direct impact on
financial resources and planning, are the investment in electrification of equipment, launching the
BAM Flow concept (timber-based prefab housing concept) and electrifying company vehicle fleet.
- Training and skills development (S1-13)
By offering training, BAM enhances the employability of workers, contributing to the socio-economic
well-being of communities. Training also equips workers with the knowledge to implement safe and
sustainable practices on-site (e.g., waste reduction, energy efficiency, carbon-neutral techniques).
BAM also believes training and (skills) development positively impacts employee retention, accident
rates, and project quality. BAM aligns training programmes with safety and sustainability goals,
technological advancements, and regulatory requirements. BAM has no specific targets yet on
training, but is aiming to report the number of training hours in 2025.
BAM also values transparency
around the performance of its workforce. A total of 90% of staff members had undergone a full
performance review over 2024 per year-end. Non-employees are not part of the perform and develop
cycle in BAM, with the exception of specific (safety) training on site.
- Work-related ill-health (S1-14)
Working in the construction industry exposes workers to a variety of hazards that can cause
long-term health effects. BAM has not yet targets, policies or specific actions in this respect, except
that it has the intention to include health and well-being from a more holistic perspective in the BAM
safety programmes. Data capturing to measure the impact focuses around sickness absence
reporting, acknowledging recording and reporting of certain data is limited by privacy restrictions or
legal provisions preventing the disclosure.
Governance
Incorporated by reference:
Disclosure requirement Reference to other chapters in the 2024 annual report
ESRS Standards: General disclosure (ESRS 2)
GOV-1
Composition and diversity of the Executive Board and Supervisory Board
on page 38
until 41. Roles and responsibilities of the Executive Board in exercising oversight of the
process to manage material impacts, risks and opportunities in section Sustainability
on page 36 in chapter 4.2 Corporate Governance. Roles and responsibilities of the
Supervisory Board in exercising oversight of the process to manage material impacts,
risks, and opportunities on page 44 in chapter 5.1 Report of the Supervisory Board.
GOV-2 Description of how the Executive Board and Supervisory Board are informed about
sustainability matters on page 36 in chapter 4.2 Corporate Governance and page
48 in chapter 5.1 Report of the Supervisory Board.
Integration of sustainability-related performance in incentive schemes (GOV-3)
BAM has integrated sustainability -related performance in its incentives schemes already for a
number of years. Sustainability targets on social as well as environmental performance are part of the
Executive Board’s and Executive Committee’s long and short term schemes. A description of the key
elements of the remuneration policy, the integration of sustainability-related performance therein,
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Financial statements Other information Appendices
and the proportion of the variable remuneration dependent on sustainability-related targets is
included on page 51, 53 and 54 in chapter 5.2 Remuneration report. Similar short term incentives
are part of the senior leadership group schemes, also including sustainability-related performance
targets. Long term incentive plans are only applicable for a part of the senior leadership group and
are the same to those of the Executive Committee.
Statement on due diligence (GOV-4)
BAM’s due diligence process with regard to business and sustainability matters is guided by the main
aspects and steps of the UN Guiding principles on Business and Human Rights and the OECD
Guidelines. The core elements of BAM’s due diligence process are closely related to a number of
topical disclosure requirements, refer to table 34 for an overview.
34
Core elements of due diligence
Due diligence process
Reference to paragraphs in the sustainability statement
a. Embedding due diligence in
governance, strategy and business
model
chapter 6.1 and chapter 6.5 section The role of the administrative,
supervisory and management bodies (GOV-1).
b. Engaging with affected stakeholders
in all key steps of the due diligence
chapter 6.1 section Interactions with stakeholders.
c. Identifying and assessing adverse
impacts
chapter 6.1 section Material sustainability matters in 2024 and
chapter 6.5 section Business conduct policies and corporate culture
(G1-1).
d. Taking actions to address those
adverse impacts
chapter 6.4 section Policies related to own workforce (S1-1) and
Action taking on material impacts on own workforce, approaches to
managing material risks and effectiveness of those actions (S1-4) and
chapter 6.5 section Business conduct policies and corporate culture
(G1-1).
e. Tracking the effectiveness of these
efforts and communicating
chapter 6.4 section Action taking on material impacts on own
workforce, approaches to managing material risks and effectiveness of
those actions (S1-4) and chapter 6.6 section Reporting principles and
assumptions confirming compliance with EU Taxonomy minimum
safeguards.
Risk management and internal controls over sustainability reporting (GOV-5)
Sustainability and sustainability reporting are embedded in BAM’s overall risk management and
internal control processes and systems. Throughout 2024 BAM started operationalising the
sustainability reporting-related controls as defined within an integrated Internal Control Framework
for material data points, following the initial double materiality assessment.
The applied reporting processes and definitions are formalised in BAM’s Sustainability Reporting
manual, which provides guidance on how to collect, consolidate and report data. For further
information on these processes and systems, on how findings of risk assessment and internal controls
are integrated into relevant functions and processes, and on the periodic reporting of findings to the
Executive Board and Supervisory Board, see chapter 4.1 Risk management.
Strategy
BAM’s disclosures on strategy, business model and value chain are incorporated by reference:
Disclosure requirement Reference to other chapters in the 2024 annual report
ESRS Standards: General disclosure (ESRS 2)
SBM-1
Description of the key elements of BAM’s strategy that relate to or impact sustainability
matters, as well as a description of the key elements of BAM’s business model and value
chain on
page 7 in chapter 2.1 About BAM and in
chapter 2.2 Strategy.
SBM-2 Stakeholder engagement included o
n
page 9 in chapter 2.1 About BAM,
SBM-3
Description of the key elements of BAM’s strategy that relate to or impact sustainability
matters, as well as a description of the key elements of BAM’s business model and value
chain
on page 10 in chapter 2.1 About BAM.
Resilience of BAM’s strategy and business model regarding its capacity to address its
impacts, risks and opportunities
on page 11 in chapter 2.2 Strategy.
Material impacts, risks and opportunities as identified through BAM’s double materiality assessment
process are included in chapter 6.1.
All material impacts, risks and opportunities are closely
connected to BAM’s strategy and business model. The defined strategy, policies and underlying
actions and measures are designed to manage and inform management on the progress and results
and are taken into account when adapting the business model.
Impact, risk and opportunity management
Description of the process to identify and assess material impacts, risks and opportunities (IRO-1)
Disclosures related to IRO-1 Description of the process to identify and assess material impacts, risks and
opportunities, referred to as BAM’s double materiality assessment process, are included in chapter 6.1.
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reporting requirements as set out in the BAM sustainability reporting manual.
The scope of the policies is BAM’s own operations and projects where BAM is responsible for the
administration. In all other activities, for example related to joint arrangements, BAM encourages
partners to demonstrate the commitments reflected in the policies. Divisions may produce
instructions to meet local needs and expectations. Such instructions are consistent with, and not in
conflict with, the BAM policy framework. The policies apply to all companies, employees, and any
other representatives of BAM. The policies are available to all BAM employees via the intranet. Input
from stakeholders on the policies is obtained during ongoing discussions with employees (directly or
via the relevant works council), interactions with shareholders (directly or via shareholder
representative organisations) and interactions with other relevant stakeholders. With regard to the
works council, their input is not part of formal (statutory) advice or consent rights in accordance with
the Dutch Works Council Act (Wet op de Ondernemingsraden).
Actions and resources in relation to material sustainability matters (MDR-A)
Actions and resources in relation to material sustainability matters are integrated in the topical sections of
the sustainability statement, including further details related to BAM’s transition plans on decarbonisation
and biodiversity. If progress is in line with targets, no specific further actions have been disclosed, since BAM
considers the current policies to be effective to mitigate the impacts, risks and opportunities.
Metrics in relation to material sustainability matters (MDR-M)
Disclosure of methodologies and significant assumptions behind the metrics defined by ESRS and BAM’s
entity-specific metrics, are included in the grey boxes in every sub chapter of the topical disclosures. No
metrics have been validated by an external body, other than by the assurance provider.
Tracking effectiveness of policies and actions through targets (MDR-T)
BAM has integrated its sustainability targets in the strategy ‘Building a sustainable tomorrow’.
Targets in
relation to the sustainability information included the sustainability statement have been derived from a
thorough strategic process run during 2022 and published in 2023. Ongoing due diligence with internal
and external stakeholders, as described in chapter 6.1 and chapter 2.1 has been part of the process to
identify these targets. BAM’s targets have not been based on scientific evidence, with the exceptions of
the SBTi validated targets on decarbonisation. The targets are time-bound and outcome-oriented to
monitor delivery of the strategy in line with these targets.
The specific targets are included in the topical
disclosures. Strategic targets are disclosed on page 13 in chapter 2.2 Strategy. In case there is no
target related to a metric, BAM tracks the effectiveness of its policies and actions in relation to the
material sustainability-related impact, risk and opportunity by quarterly reporting to Executive
Committee about the performance of sustainability metrics. Appropriate follow-up actions are
undertaken as necessary to address any identified issues or opportunities for improvement.
BAM
reports the progress towards these targets and discloses that progress in the related topical disclosures.
Disclosure requirements covered by the sustainability statement (IRO-2)
The material disclosure requirements are all included in BAM’s sustainability statement in chapter 6,
in the same sequence as described in ESRS, with the exception the disclosure for IRO-1, which is
disclosed in chapter 6.1. For the reference table of all disclosure requirements, refer to chapter 6.7.
For a list of all data points that derive from other EU legislation, see the List of data points that derive
from other EU legislation to chapter 6.7.
The entity-specific metrics are associated with the following material impacts, risks and opportunities:
• Pollution (upstream); pollution impact has been calculated based on the relative Environmental
Cost Indicator (ECI) of impact categories and also related to the metric on resource inflows (E5-4).
• Circular economy; Circularity assessments and material passports offered by BAM in tenders are
measured to track BAM’s actions in offering products that contribute to a circular economy.
• Occupational health and safety; IF BAM and IF Total are measured in line with industry practice
based on accidents with lost time in addition to the measurement required by ESRS (S1-14).
• Return on inclusion; BAM’s performance with regard to inclusion is audited and scored.
• Social value; BAM’s social value activities are measured by the sum of social mobility, improve local
economy and social inclusion value (SLEV) delivered as a percentage of revenue.
• Protection of data and respecting privacy; BAM is aiming to minimize the impact from potential
data and privacy breaches by educating colleagues through e-learnings.
• In enhancing general business conduct BAM makes use of e-learnings, for example with regard to
BAM’s code of conduct. The coverage of mandatory e-learnings executed by employees is
measured as an entity-specific metric.
Refer to chapter 6.3, 6.4 and 6.5 for methodology, assumptions and further details on those entity
specific metrics.
Policies adopted to manage material sustainability matters (MDR-P)
An overview of the policies relating to BAM’s material impacts, risks or opportunities is provided on
the next page. All policies are part of the BAM policy framework. The BAM policy framework
comprises a comprehensive set of policies, procedures, and guidelines that outline how BAM achieves
its strategy to build a sustainable future. The framework establishes the governance structure,
addresses key risk areas BAM, and ensures compliance with relevant laws and regulations. Specific
BAM policies have been summarised into concise, one-page statements, available for download on
BAM’s website (BAM Policy Framework | Koninklijke BAM Groep / Royal BAM Group). The Executive
Committee is ultimately responsible and accountable for sustainability at BAM. Focus areas are BAM’s
strategy, sustainability reporting and the sustainable business initiatives. Management of the
divisions is accountable for implementation of the strategy, reporting, policies and business
initiatives in the division. BAM requires management of the divisions to monitor sustainability
requirements against pre-determined plans, standards and objectives and report in line with the
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Financial statements Other information Appendices
Group policyDivision policy
Topic
Diversity and
Inclusion
Return on inclusion
Training and skills development**
Diversity
Occupational
health and safety
Social value
Social value
Biodiversity Biodiversity land use change
Ecosystem services
Climate
Adaptation
Climate risk assessment
Financial effect: climate risk on land bank**
Climate adaptive measures
Circularity
Circularity assessment and material passports
Depletion of raw materials (virgin materials)
Waste reduction, recycling and reuse
Decarbonisation
Energy and emissions
Pollution of air and soil upstream
Financial effect: energy efficiency opportunities**
CO
2
emissions
Environment
Social
Governance
Work-related ill health**
Occupational health and safety
Related policies
Business conduct
and corporate
culture
Protection of data and respecting privacy
Corporate culture
Prevention and detection of corruption and bribery
Privacy policy*
Data retention
policy
Information security
governance policy*
Sustainability policy*
Sustainability policy*
Sustainability policy*
Sustainability policy*
Tender assurance policy
Tender assurance policy
Social value policy
Health and safety policy*
Diversity and
inclusion policy*
HR perform and
develop policy
Human rights guidance*
Code of conduct
Anti-bribery and
corruption policy
Conflict of
Interest Policy
Sustainability policy
BAM commits to the United Nations
Sustainable Development Goals
framework.
The policy applies to
BAM’s own operations and sets
relevant criteria for the selection of
suppliers. BAM encourages that
subcontractors and suppliers have
relevant sustainability policies in place
and adhere to any prescriptive
(project) sustainability requirements
to meet compliance with BAM’s policy
or any client sustainability
requirements and compliance with
relevant environmental protection
laws and regulations.
HR policies
BAM puts its employees at the
forefront of the strategy, ensuring
that everybody in BAM lives its values,
that leadership drives BAM forward,
that BAM fosters diversity and
inclusion, that BAM’s employees
thrive and grow, and that BAM builds
communities with a focus on safety
and innovation.
Policies related to business conduct
BAM’s code of conduct sets
expectations and commitments to
uphold BAM’s values and
responsibilities to do things right. The
policy framework establishes the
governance structure, addresses key
risk areas, and ensures compliance
with relevant laws and regulations.
* Policy statement is published on the website ** Topics/sub-topics are phased-in and not (yet) part of the policies
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Climate change (ESRS E1)
Climate change mitigation relates to BAM’s impact and actions related to the general process of
limiting the increase in the global average temperature to 1.5 degrees Celsius above pre-industrial
levels in line with the Paris Agreement. This chapter covers disclosures related to Greenhouse gases
(GHG), disclosure requirements on how BAM addresses its GHG emissions as well as the associated
transition risks. The disclosure requirements related to energy cover the types of energy
consumption that are relevant for BAM.
Climate change adaptation relates to BAM’s processes of adjustment to actual and expected climate
change and covers disclosure requirements regarding climate-related hazards that can lead to
physical climate risks for BAM and the assets BAM builds, including the adaptation solutions to
reduce these risks. It also covers physical and transition risks arising from the needed adaptation to
climate-related hazards.
Disclosures are related to the following material impacts, risks and opportunities as identified
through BAM’s double materiality assessment process, refer to full details in chapter 6.1.
35
E1 Climate change
Material impact, risk or opportunity
Climate change mitigation
GHG emissions: Scope 1 and 2 (OO)
Negative impact
GHG emissions: Scope 3 (VC) Negative impact
Energy efficiency opportunities (VC) Opportunity
Climate change adaptation
Climate adaptive solutions (OO) Positive impact
Climate risk on land bank (OO) Risk
The disclosures in this section should be read in conjunction with the disclosures in chapter 6.2 on
Governance, Strategy and Impact, risk and opportunity management. Further disclosure
requirements incorporated by reference are:
Disclosure requirement Reference to other chapters in the 2024 Annual report
ESRS Standards: General disclosure (ESRS 2)
GOV-3
Integration of sustainability-related performance incentive schemes of Supervisory
board and Executive board on page 51, 53 and 54 in chapter 5.2 Remuneration report
Transition plan for climate change mitigation (E1-1)
BAM has committed to reduce the
GHG emission
intensity of its operations. BAM has a 1.5 °C Science-
Based Target, verified by SBTi, in place to ensure BAM is in line with what the latest climate science
deems necessary to meet the goals of the Paris Agreement.
In accordance with ESRS 2, Appendix B,
and pursuant to the disclosure requirements under Regulation (EU) 2020/1818, which amends Regulation
(EU) 2016/1011 (the Benchmark Regulation), BAM confirms that it is not subject to exclusion from an EU
Paris-Aligned Benchmark (PAB).
BAM’s climate change mitigation transition plan is compatible with the
transition to a sustainable economy and with the objective of achieving net-zero by 2050.
BAM’s decarbonisation (Scope 1, 2 and 3) targets have been validated and approved by the SBTi. The most
recent update of this approval is received in January 2025. These target approval has been renewed and
improved compared to BAM’s previous SBTi submissions and approvals in 2019 and 2021. BAM has included
targets to measure the relevant climate change impacts on medium term (2026) and long term (2030 and
2050). Internally BAM has translated these targets into internal milestones in order to align the targets with
BAM’s strategic approach. The sustainability targets are fully supported by BAM’s strategy ‘Building a
sustainable tomorrow’.
Climate change mitigation actions, decarbonisation levers and relevant changes to BAM’s portfolio to
support actions are the key driver to BAM’s strategy ‘Building a sustainable tomorrow.’ The details of
the transition plan are described in this section. Also BAM’s progress on EU Taxonomy aligned-revenue,
aligned capex and aligned opex is an important proof point for an increase of more sustainable
business activities (refer to
chapter 6.6 for BAM’s disclosures in accordance with the Commission’s
Delegated Regulation (EU) 2021/2178 on the EU Taxonomy).
BAM’s Scope 1 and 2 GHG emissions are
largely dependent on the project portfolio in execution and driven by the fact BAM ambition for
emission free construction sites. Portfolio decisions in the tender phase are key to in the long run
improve Scope 3 GHG emission. The most relevant locked-in GHG emissions mainly consists of Scope
1, 2 and 3 GHG emission in BAM’s order book. In general the order book has only a few years of
forward looking GHG emission impact, however there are a few exceptions of projects that are under
construction until 2030 or beyond. These locked-in emissions could potentially jeopardise BAM’s
ability to meet its GHG reduction targets. BAM is mitigating this risk by continuously strengthening its
tender process to enhance the assessment of environmental impact to reduce future GHG emissions.
BAM’s transition plan is embedded in and aligned with the overall business strategy and financial planning.
It has been part of BAM’s yearly planning and quarterly reporting cycle already for a couple of years. Both
performance measurement on the targets, as well as forward steering on business initiatives are part of
this cycle. BAM has explicit roadmaps for Scope 1, 2 and 3 reduction. These roadmaps are developed
continuously from a more qualitative approach towards more quantitative planning.
6.3 Environmental information (ESRS E1-2-4-5)
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36 Reduction roadmap Scope 1 and 2
(in kilotonnes)
24
25
27
28
29
26
30
Construction sites Vehicle fleet Electricity use
0
10
20
30
40
50
49
BAM’s main focus areas for 2024 to further reduce direct GHG emissions are:
• Reducing diesel use on construction sites by establishing early-stage grid connections, electrify
equipment and using alternative fuels (sustainably produced biofuels) where possible. The most
important measure is the use of certified sustainable HVO on BAM’s own projects which will carry
on in 2025.
• Electrifying BAM’s company car fleet and ensuring the used electricity is renewable. Due to existing
lease arrangements it will take a few years before the company cars will be 100% electrified. For the
company vans it will be a longer transition due to the market not having the appropriate EV’s to
replace the current fleet. In the meantime alternative fuels will be deployed further.
• Working towards the procurement of 100% renewable electricity in all offices and project sites.
The roadmap towards BAM’s 2026 target and further reduction in 2030 ( figure 36) shows that the
majority of the GHG
reduction is anticipated at the BAM construction sites, as a result of further
electrification of equipment and deployment of HVO. The electrification of BAM’s vehicle fleet is also
expected to continue to substantially contribute to BAM’s GHG emissions reduction in the coming
years.
Significant operational expenditures (opex) and capital expenditures (capex) in 2024 required for
implementation of action plan have been included in the financial statements. A total of € 55 million
has been invested in electric equipment in 2024 (2023: € 38 million). This information is linked to
note 14 and 15 on page 152 and 154 of the financial statements.
In general Scope 3 GHG emissions are the largest attributor to BAM’s GHG inventory and are an
important driver for BAM’s transition risks and opportunities. For further disclosures on Scope 3,
refer to
page 84.
An important initiative to improve BAM’s capability to reduce Scope 3 emissions is the improvement
of quality of measurement of Scope 3 emissions, particularly the upstream emissions associated with
purchased materials. Current measurement of upstream emissions is still 100% based on spend data,
which does not support effective steering. BAM ambition is to replace a significant portion of spend
data by activity data within the next years, focussing on key materials such as steel and concrete.
This would allow to better assess the impact of BAM’s reduction initiatives going forward.
In the meantime, BAM is also steering the following Scope 3 reduction drivers:
• Procuring (more) sustainable materials, such as concrete (GROENR) and recycled steel
• Proactively discuss the use of circular and/or biobased materials with clients and increase the
amount of projects where alternative materials are applied.
• Provide low carbon solutions to clients to reduce the (downstream) energy use of assets delivered
by BAM.
The Scope 3 reduction initiatives will help to bring BAM closer to its Scope 3 reduction targets, but
there are also two substantial drivers to reduce BAM’s Scope 3 footprint outside of BAM’s control:
• Decarbonisation of industry: the lowering of the GHG emissions of construction materials by
production process improvements. Lower GHG emissions of construction materials directly reduce
the upstream Scope 3 emissions of BAM.
• Decarbonisation of energy grid: the grid in BAM’s home markets is gradually decarbonising and
expected to further decarbonise towards 2030. A lower grid GHG emission intensity directly
reduces the GHG emissions associated with electricity use of assets delivered by BAM.
BAM closely monitors these trends and actively collaborates with its partners to steer these trends in
a sustainable direction where possible.
Material impacts, risks, and opportunities and their interaction with strategy and business model (SBM-3)
BAM has identified one material climate-related risk as described below:
Climate-related risk Type of risk
Climate risk on land bank (i.e. valuation of
land- and building rights)
(OO) Physical/transition risk
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BAM holds a land bank comprising land and associated building rights (for valuation details as per
31 December 2024 refer to
note 19 on
page 159 of the financial statements). This portfolio is
primarily utilised for residential development and commercial use, located across BAM’s home
markets, mainly in the Netherlands.
Long-term climate changes, including rising sea levels, soil degradation, and increasing average
temperatures, might impact the land value. BAM has not yet identified which part of the land is
identified as high-risk based on specific scenarios. Also increased policy and regulations, i.e. the
introduction of stricter building codes and zoning requirements, particularly related to carbon
reduction goals, could affect the developability of the land bank.
From a market perspective increasing demand for sustainable infrastructure may also enhance the
valuation of land with potential for low-carbon developments while diminishing the value of non-
compliant plots. Diversification of the portfolio to include land with lower physical and transition risk
profiles is necessary going forward.
As part of the phased-in disclosure (refer to
table 33 on page 74), BAM intends to disclose more
information in future reporting periods on the anticipated financial effects of the climate-related
physical and transition risk. For 2024 BAM did not consider specific climate scenario analysis in
identifying the climate-related transition events.
Currently, BAM is actively implementing measures to further enhance climate resilience. In addition to
implementing the science-based validated transition plan related to climate mitigation, BAM adopted
climate-resilient infrastructure standards and actively organizes engagement with stakeholders to
enhance adaptive capacity in vulnerable regions. BAM did not identify activities in its business model
not compatible with a transition to a climate-neutral economy that
could potentially jeopardise BAM’s
ability to execute its transition plan. Given the nature of the business, BAM is well able
to adjust or
adapt the strategy in the short-, medium- or long term based on change in context or progress. BAM’s
resilience analysis is not based on any critical assumptions or material areas of uncertainty.
Description of processes to identify and assess material climate-related impacts, risks and opportunities
(IRO -1)
BAM’s strategy is also designed to address the climate resilience of the (downstream) projects and
assets, through BAM’s climate adaptation strategy. In that respect, BAM specifically assesses
climate-related physical risks for each of its construction projects. BAM has developed a climate scan
that is applied to key projects where physical climate related risks are relevant to either the
construction process or the asset itself. This climate scan makes use of the ‘klimaateffecten atlas’
Decarbonisation initiatives
as part of BAM’s transition plan
Own operations
Construction sites
- Electrification of (heavy) equipment
- Use of certified HVO
Electricity
- Increase the level of renewable
electricity procured towards 100%
Vehicle fleet
- Electrifying BAM’s company car fleet
(commercial vehicles and lease cars)
- Use of alternative fuel for company
vans
Value Chain
Upstream embodied carbon initiatives
- Sustainable procurement; application of low
carbon emitting concrete (GROENR beton)
and steel
- Biobased or circular material use
Downstream sustainable solutions
- Construction of low energy assets, passive
house construction
Decarbonisation drivers outside BAM’s
control
- Decarbonisation of electricity grid
(downstream impact)
- Decarbonisation of (construction materials)
industry depending on larger European
trends
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Actions and resources in relation to climate change policies (E1-3)
BAM has executed several initiatives in 2024 that reduce carbon emissions to limit global warming,
both related to direct emission (Scope 1 and 2), as well as indirect emissions (Scope 3). Actions and
initiatives in 2024 have resulted in progress towards BAM’s short-, mid- and long-term targets to
reduce emissions. An overview of the most relevant elements of BAM’s action plan is provided in
the visual on page 80.
In 2024, BAM has proven to further reduce the Scope 1 and 2 impact in absolute terms and for
intensity as well. BAM’s Scope 1 and 2 GHG emissions in 2024 are 48.7 (2023: 68.6 kilotonnes),
resulting in an GHG emission intensity of 7.5, compared to 10.9 in 2023. BAM has reduced its Scope 1
and 2 GHG emissions with 70% compared to the baseline of 2015.
The use of HVO has increased to 54% of total fuel consumption on construction sites (27% at year-end
2023) and 69% of the company cars was electric at the end of 2024 (47% at year-end 2023). Direct
emissions on a handful of large joint operation projects are currently a large contributor to the
remaining emissions, around approximately 30% of the total Scope 1 and 2. Changes in project
schedules impact the timing of carbon emission ‘rich’ activities, and hence could skew BAM’s year on
year performance. In total BAM aims for a Scope 1 and 2 reduction of 90% in 2030 versus 2015.
Share of EV in BAM’s car fleet (commercial fleet and lease cars) has increased to 66% (40% at year-end
2023), resulting in a further reduction of Scope 1 and 2 emissions. Further details on BAM’s energy
use are disclosed in the section below.
In organisational terms, investments and changes have occurred in the governance of the
sustainability function throughout the business. In 2024 investments in IT systems for sustainability
reporting, internal training, and additional resources in the field of sustainability (reporting) have
been made to reiterate BAM’s focus on the topic and commitment to develop the right capabilities
for this transformation.
Targets related to climate change mitigation and adaptation (E1-4)
BAM has committed to reduce the GHG emission
intensity of its operations. BAM has further
increased the ambition level and included a net-zero target in the most recent SBTi update, ensuring
that BAM’s targets are aligned with limiting global warming to 1.5° C in line with the Paris Agreement.
These accelerated targets are an important driver of BAM’s strategy and have already been
communicated in 2023.
(climate effects register) which is based on the fourteen climate scenarios of KNMI (Royal Netherlands
Meteorological Institute) which are based on the climate scenarios of IPCC (Intergovernmental Panel
on Climate Change). The most severe climate scenario used by KNMI and in BAM’s climate scan is
based on RCP 6.0 (Representative Concentration Pathway, global temperature rise of 3-4 °C by 2100).
These assessments take into account the likelihood, magnitude and duration of the hazards as well as
the geospatial coordinates.
This climate scan is applied in the early phase of a project (or tender) and based on the outcome,
climate change adaptation measures are discussed with clients and in most cases implemented.
BAM’s 2026 target is to have this type of climate risk scans effectively introduced to all the large
(A, B and C category) tenders. BAM uses a classification system based on the size and risk profile of its
projects, ranging from A (highest classification) to E. A, B, and C projects typically represent medium
to large projects. BAM’s progress towards this target in 2024 is shown in
table 37.
The climate scans that BAM is executing for projects in division Netherlands are performed based on
the classification of climate-related hazards included in the EU Regulation (EU) 2021/2139 (EU
Taxonomy). Refer to more details on EU Taxonomy in
chapter 6.6. The climate scans in the division
United Kingdom and Ireland are covering the chronic and acute risks as well, however have not been
checked to align with EU Taxonomy as such.
BAM also aims to reduce the damaging effect of climate change on its construction projects by
delivering climate-adaptive solutions. BAM plans to offer climate-adaptive measures, enabling its
clients to choose options that make their assets more climate-resilient.
37
Climate adaptation in tenders
2023 2024 Target 2026
% A and B tenders with climate risk scans
* 100 100
% A and B tenders with climate adaptive measures
65 96 100
% A, B and C tenders with climate adaptive measures
* * 100
* Data on C tenders not yet available for the 2024 and 2023 actual numbers.
Policies related to climate change mitigation and adaptation (E1-2)
A reference to the sustainability policy is made on page 77 in chapter 6.2 covering the sustainability
practices in BAM. Further information is also available in the policy statement on the BAM website.
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The target includes specific Scope 1 and 2 targets, which are derived using market-based GHG
conversion factors. BAM’s GHG reduction targets are:
•
reduction of 80% Scope 1 and 2 GHG emission intensity by 2026 compared to 2015
•
reduction of 90% Scope 1 and 2 absolute GHG emissions and reduction of 90% Scope 1 and 2 GHG
emission intensity in 2030 compared to 2015 (SBTi validated)
•
reduction of 50% Scope 3 absolute GHG emissions by 2030 compared to 2019 (SBTi validated)
•
Net-zero Scope 1,2 and 3 (minimum 90% reduction compared to 2019) by 2050 (SBTi validated)
In achieving targets for 2026 and 2030, BAM does not include the offsetting of any carbon emissions
nor does BAM allow any offsetting as part of meeting the Scope 1 and 2 GHG emissions reduction
targets towards 2030. BAM also has an underlying Scope 1 and 2 target to purchase 100% certified
green electricity by 2030. BAM has a SBTi-validated net zero target for 2050 on total GHG emissions
(absolute Scope 1, 2 and 3). BAM continuously tracks the effectiveness of the BAM’s actions by internal
reporting on the targets and related metrics. BAM also has set a decarbonisation-related target to
maintain a CDP Climate A List position. This performance is assessed on a yearly basis.
BAM’s energy consumption and greenhouse gas inventory are based on the ESRS. When referring to emissions,
it is important to distinguish between CO
2
(carbon dioxide) and CO
2
eq (carbon dioxide equivalent). CO
2
refers
specifically to emissions of carbon dioxide, a major greenhouse gas produced primarily from burning fossil
fuels. However, many other greenhouse gases, such as methane (CH
4
) and nitrous oxide (N
2
O), also contribute
to climate change. To simplify reporting and analysis, these other gases are converted into CO
2
equivalents
(CO
2
eq) based on their global warming potential (GWP). CO
2
eq allows to express the impact of all greenhouse
gases in a single, comparable metric. BAM applies CO
2
equivalent conversion factors. Throughout this
document, when CO
2
emissions are mentioned, BAM reports its greenhouse gas emissions (GHG) as CO
2
equivalent, and refers to the total of GHG emissions, unless otherwise specified.
As BAM is operating in a high climate impact sector (as listed in NACE sections A to H and Sections L,
as defined in Commission Delegated Regulation (EU) 2022/1288), BAM further disaggregates the total energy
consumption from fossil sources in table 38. BAM has included the net revenue as presented in the
financial statements on page 132 as a full to calculate energy intensity and GHG emission intensity.
The proportion of total electricity consumption that is generated from renewable energy sources, such as solar,
wind, hydro, and geothermal indicates the extent to which electricity used is derived from environmentally
sustainable and non-polluting sources. Electricity used is recorded in kWh. Fuel use of leased and company cars can
be entered in liters or kilometers and is converted to MWh. Activity data is mostly based on meter readings,
invoices and supplier data. In instances where complete and accurate data are unavailable, BAM employs
calculations or estimations utilising reliable methods and input data by the judgement call of the division’s experts.
Reporting principles and assumptions GHG emissions Scope 1 and 2 and energy consumption
The energy consumption (reported in MWh) and GHG emissions associated with BAM’s energy
consumption, are calculated using conversion factors from reputable and authoritative sources, i.e.
government supplied factors. The applied conversion factors differ based on the calculation:
• Country-specific conversion factors are used for all resources, e.g. https://www.co2emissiefactoren.nl
lijst-emissiefactoren/ for the Netherlands or https://www.gov.uk/government/publications/greenhouse-
gas-reporting-conversion-factors-2023 for the United Kingdom.
• Tank-to-wheel emission factors are applied for Scope 1 emissions (well-to-tank is part of BAM’s Scope 3
footprint)
BAM reports GHG emissions based on market-based conversion factors as well as location-based
conversion factors. All conversion factors are reviewed annually and updated accordingly. To achieve
consistent measurement throughout the year, BAM is updating the conversion factors in the first quarter
of the year. This means that if the release date of specific conversion factors is later in the year, BAM is
using prior year factors (i.e. 2023 factors). Fuel and electricity provided by BAM to subcontractors is
currently included in Scope 1 and 2. If fuel and electricity is used by third parties on a BAM project that
BAM has not procured, then it is part of Scope 3 to avoid double counting.
For specific information regarding BAM’s operational control and BAM’s value chain, refer to chapter 6.2
No changes in the reporting Scope have been triggered by aligning the Scope 1, 2 and 3 reporting
definitions with those in ESRS. BAM’s Scope 1 and 2 GHG emissions are all originating from the
consolidated accounting group.
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38 Energy consumption and mix
2023
Share of total energy
consumption
(in %)
2024
Share of total energy
consumption
(in %)
Fuel consumption from coal and coal products (MWh) - - - -
Fuel consumption from crude oil and petroleum products (MWh) 232,331 67.9 147,263 43.5
Fuel consumption from natural gas (MWh) 13,197 3.9 18,010 5.3
Fuel consumption from other fossil sources (MWh) 3 0 2 0
Consumption of purchased or acquired electricity, heat, steam and cooling from fossil sources (MWh)
17,323 5.2 23,827 7.0
Total fossil energy consumption (MWh) 262,854 77.0 189,102 55.8
Total consumption from nuclear sources (MWh) - - - -
Fuel consumption for renewable sources (e.g. biomass, hydrogen) 54,524 16.1 106,975 31.6
Consumption of purchased or acquired electricity, heat, steam and cooling from renewable sources (MWh) 37,687 11.3 41,833 12.4
Consumption of self-generated non-fuel renewable energy (MWh)
699 0.2 765 0.2
Total renewable energy consumption (MWh) 92,909 27.6 149,573 44.2
Total energy consumption (MWh) 355,762 100 338,675 100
Energy intensity (total energy consumption per net revenue, kWh/
€
) 0.06 0.05
Energy consumption and mix (E1-5)
As energy consumption is closely related to the impact BAM has on climate change, this disclosure
requirement provides more insights into the total energy consumption in absolute value, and BAM’s
share of renewable energy in its overall energy mix. The current level of green electricity is at 64%
(2023: 69%) of the total electricity use.
The use of purchased green energy and cleaner fuels contribute to a decrease in GHG emissions but
does not tell anything about the energy efficiency of BAM. Using the absolute energy consumption, in
combination with the GHG emissions, allows better insight in the development of BAM’s energy use
and efficiency.
All electricity in the Netherlands is purchased from the supplier ‘Eneco’, with bundled energy attribute
certificates (EAC) for 100% Dutch wind power. BAM intends to further increase the percentage of
green electricity in the Netherlands related to public and home EV charging through the purchase of
unbundled EAC’s for the coming years. Currently the percentage of green electricity related to these
activities is based on grid average. The green electricity in Ireland is purchased from the supplier
‘Energia’, with bundled EAC’s for 100% wind or solar energy. In the United Kingdom and Belgium the
green electricity purchased varies from region to region and sometimes even from project to project.
Green (low carbon) electricity is coming from different electricity suppliers and supported by
renewable energy guarantees of origin in bundled or unbundled procurement. BAM currently does not
procure green electricity backed by purchase power agreements.
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In 2025 BAM has reconfirmed accelerated Scope 1 and 2 GHG emission targets with SBTi and has not
amended the baseline comparison in this renewal. BAM has added absolute targets for Scope 1 and 2
GHG emission which are based on the same baseline.
BAM relies on the use of (certified) sustainable hydrogenated vegetable oils (HVO) to reduce the GHG
emissions from its energy intensive construction processes, such as groundworks. At the moment,
the additional costs of HVO are limited and most clients of BAM are willing to pay the premium.
The demand for sustainable HVO is growing, while the supply is not expected to rapidly grow as it
depends on the availability of by products. If other sectors, such as the aviation industry, also start to
use HVO as a main measure to reduce fossil fuel use, this will have the potential to substantially
increase the price of HVO. For BAM, this will either mean that short term CO
2
reduction targets will
not be met or that additional costs will be made to cover for the price increase.
40
CO
2
emissions from biogenic carbon
(in kilotonnes)
2023 2024
Biogenic carbon emissions
13,981 27,401
Fuel type
HVO 100%
13,966 27,401
HVO 50%
2 -
HVO 20%
12 -
Gross Scope 3 and total GHG emissions (E1-6 continued)
Scope 3 GHG emissions (gross) are the main component of BAM’s GHG inventory and are an important
driver of BAM’s transition risk. Total Scope 3 emissions in 2024 are estimated at 2,093 kilotonnes, a
factor 43 larger than BAM’s Scope 1 and 2 emissions. Most of BAM’s Scope 3 emissions fall in
categories (1) Purchased goods and services and in category (11) Use of sold products. By closely
monitoring BAM’s GHG emission targets, BAM continuously measures progress towards reducing GHG
emissions in accordance with EU policy goals.
Despite BAM’s efforts to improve Scope 3 measurement methodology, s
ignificant uncertainties still
exist in relation to the reported Scope 3 GHG emissions (including the baseline number based on the
2019 year). Details on BAM’s Scope 3 GHG emissions reporting principles and assumptions are
included on pages 86 and 87.
Gross Scope 1 and 2 GHG emissions (E1-6)
BAM achieved a Scope 1 and 2 GHG emission reduction in 2024 compared to 2023. BAM has a reached
a cumulative reduction of 70% compared to the baseline 2015. BAM’s ongoing GHG emission
reduction measures such as the use of sustainable biofuels and electrification of lease fleet, and
transformation to renewable electricity and electric/hybrid equipment contributed to this reduction.
39
Absolute Scope 1 and 2 GHG emissions per division
(in kilotonnes)
2015
baseline
2023 2024
Division Netherlands
42.8 29.6 21.7
Division United Kingdom and Ireland
49.5 38.3 26.5
Other*
92.7 0.7 0.5
Total Scope 1 and 2 GHG emissions
185.0 68.6 48.7
* Baseline for Scope 1 and 2 GHG emissions includes GHG emissions related to the divested businesses in Germany
and Belgium.
The negative impact of GHG emissions of BAM on the environment is significant, as it leads to global
warming and climate change, extreme weather, rising sea levels and changes in precipitation patterns,
affecting agriculture, water resources, biodiversity, and infrastructure. BAM’s reporting includes both
direct GHG emissions (Scope 1 emissions originating from BAM’s own sources and leased vehicles) and
indirect GHG emissions resulting from the generation of purchased electricity used by BAM, calculated
with market-based conversion factors (Scope 2 emissions), and Scope 3 emissions.
Location-based method quantifies Scope 2 GHG emissions based on average energy generation
emission factors for defined locations (e.g. Netherlands, UK, Ireland). Market based method quantifies
Scope 2 GHG emissions based on GHG emissions emitted by the generators from which BAM
contractually purchases electricity bundled with instruments, or unbundled instruments on their own.
BAM’s electricity is sourced through retail supply contracts with an electricity supplier (retail green
electricity).
With regard to Scope 1 and 2, BAM tracks its progress compared to base year 2015. In the baseline
2015 BAM has included the comparative figures based on the financial consolidation in the reporting
year 2015. This does include the business activities of BAM that have been divested in the year’s after
2015. The targets are based on intensity, hence the relative impact of divestments is limited.
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2015**
baseline
2019**
baseline 2023 2024
Delta
2024-2023
Target
2026
Target
2030
Target
2050
Annual %
target / base
year
Scope 1 GHG emissions (kt CO
2
eq)
Scope 1 GHG emissions 170 117 62 41 -34% n.a n.a n.a n.a
Scope 2 GHG emissions (kt CO
2
eq)
Gross location based Scope 2 GHG emissions 33 25 16 19 13% n.a n.a n.a n.a
Gross market based Scope 2 GHG emissions 15 14 6 8 25% n.a n.a n.a n.a
Scope 1 and 2 GHG emissions (kt CO
2
eq)
Scope 1 and 2 location based 203 142 79 59 -25% n.a n.a n.a n.a
Scope 1 and 2 market based 185 131 69 49 -29% n.a 18.5 n.a -6%
Scope 1 and 2 emission intensity (in tonnes CO
2
eq per
€
million revenue)
Market based Scope 1 and 2 intensity 24.9 18.2 10.9 7.5 -31% 5.0 2.5 n.a -6%
Significant Scope 3 GHG emissions (kt CO
2
eq)
Total gross indirect (Scope 3) GHG emissions*** * 3,154 2,552 2,093 -18% n.a 1,577 n.a -5%
1. Purchased goods and services * 1,466 1,416 1,363 -4% n.a n.a n.a n.a
2. Capital goods * 117 119 108 -9% n.a n.a n.a n.a
3. Fuel and energy-related activities * 33 19 18 -5% n.a n.a n.a n.a
5. Waste generated in operations * 21 13 15 15% n.a n.a n.a n.a
6. Business travel * 9 5 6 20% n.a n.a n.a n.a
7. Employee commuting
* 4 2 2 0% n.a n.a n.a n.a
11. Use of sold products * 1,484 924 535 -42% n.a n.a n.a n.a
12. End-of-life treatment of sold products * 19 54 45 -17% n.a n.a n.a n.a
15. Investments * - - 1 - n.a n.a n.a n.a
Total GHG emissions (kt CO
2
eq)
Total GHG emissions location based * 3,296 2,631 2,152 -18% n.a n.a n.a n.a
Total GHG emissions market based * 3,285 2,621 2,142 -18% n.a n.a 329 -3%
Total GHG emissions intensity location based (in tonnes CO
2
eq per
€
million revenue) * 457 420 333 -21% n.a n.a n.a n.a
Total GHG emissions intensity market based (in tonnes CO
2
eq per
€
million revenue) * 456 418 332 -21% n.a n.a n.a n.a
* Scope 3 GHG emission data unavailable for 2015 ** Baseline 2015 is applicable for Scope 1 and 2 intensity reduction; baseline 2019 is applicable for Scope 3 reduction and Net zero target on Scope 1, 2 and 3. For Scope 1 and 2 2019 is
considered a comparative figure. *** Baselines for Scope 1 and 2 differ from Scope 3 GHG emission. See for more details on baselines section E1-6.
41 GHG emissions
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BAM’s Scope 3 inventory is based on ESRS. BAM reports its greenhouse gas emissions as CO
2
equivalent. BAM’s
Scope 3 estimation is based on several different data sources, methods, and assumptions. Five out of the fifteen
categories are considered not applicable and/or not material for BAM, for the following reasons:
8. Upstream leased assets: BAM’s leased assets consist of leased buildings (offices) and the lease fleet.
Related emissions are already included in BAM’s Scope 1 and 2 emissions.
9. Downstream transport: As a construction-services business, no product undergoes downstream
transportation and distribution.
10. Processing of sold products: All products are sold in final form, with no further processing required.
13.
Downstream leased assets: The assets that are leased to other entities are constructed by BAM itself. This means
the downstream emissions are already included in category (11) Use of sold products. In some occasions, a
business unit owns assets that are temporarily under BAM’s management and leased to other entities. The
related GHG emissions are considered not material and therefore not included in BAM’s Scope 3 inventory.
14. Franchises: BAM does not operate a franchising business model.
The methodology, data sources and key assumption and limitations of the ten categories for which the Scope 3
emissions are estimated are listed below:
1. Purchased goods and services
This category is calculated using a spend-based method, meaning that the embodied impact of BAM’s activities is
calculated by collecting data on the economic value of goods and services purchased and multiplying these by
relevant secondary emission factors (e.g., industry average emissions per monetary value of goods or service).
Vendors are classified into BAM’s procurement categories by the procurement team. BAM acknowledges a high
uncertainty in this classification as a result of reliance on individual judgement and the limitation that vendors can
only be classified as one procurement category. For the conversion from spend to GHG emissions, BAM uses
Exiobase v3.8.2. The mapping of BAM’s procurement categories to the corresponding categories in the Exiobase
database has been carried out manually based on expert judgement. Any uncategorised spend is assigned to the
Exiobase category ‘construction works’. A dedicated tool has been developed by BAM to process the procurement
data, apply the Exiobase conversion factors, and calculate the associated GHG emissions.
The category purchased goods and services includes all emissions from BAM’s projects and a proxy for emissions
from joint arrangements (joint operations and joint ventures). BAM reports the GHG emissions from joint
operations on the basis of operational control (for more details on this approach in chapter 6.2).
Reporting principles and assumptions GHG emissions Scope 3
Due to limited availability of joint operation data, BAM includes the full spend of joint operations where BAM
is responsible for project administration and zero spend of joint operations where BAM is not responsible for
project administration. BAM has evidence that this approach does not materially deviate from the actual
spend share of BAM joint arrangements. The GHG emissions associated with the asphalt procured by BAM
from the joint venture AsfaltNu are seen as relevant part of the value chain, hence included in category 1.
The GHG emissions related to third party deliveries of AsfaltNU are reported under category 15 based on the
BAM-share in the joint venture.
2. Capital goods
GHG emissions from capital goods are derived from the GHG emissions from purchased goods and services.
After processing in BAM’s tool, the total spend based GHG emissions includes both purchased goods and
services and capital goods. The following Exiobase categories are considered to comprise capital goods:
• Sale, maintenance, repair of motor vehicles and parts, motorcycles, motor cycles parts and accessories
• Motor vehicles, trailers and semi-trailers
• Machinery and equipment n.e.c. (not elsewhere classified)
• Office machinery and computers
The GHG emissions from these categories are deducted from the category purchased goods and services
and reported under capital goods.
3. Fuels- and energy related activities
This category contains the following subthemes: Upstream emissions of purchased fuels, upstream
emissions of purchased electricity, transmission and distribution (T&D) losses and generation of purchased
electricity that is sold to end users.
The first three of these sub themes are relevant for BAM, as BAM does not sell energy to end-users.
The upstream GHG emission of fuels- and energy related activities for the first two sub themes are derived
from the same fuel and energy use which form the basis for BAM’s Scope 1 and 2 emissions. The fuel and
energy quantities are multiplied by country specific ‘well to tank’ emission factors to cover the upstream
emissions that are not included in the Scope 1 and 2 calculation. For the third sub theme, the country specific
loss rate is multiplied with Scope 2 impact data.
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4. Upstream transport and distribution
GHG emissions associated with upstream transport and distribution are included in category (1) Purchased goods
and services. It is not feasible for BAM to distinguish transport related emissions in the used Exiobase conversion
factors.
5. Waste
GHG emissions associated with the disposal and treatment of waste are based on the waste figures that BAM
also reports separately. Waste quantities are categorised by BAM’s waste processors into different waste
streams and conversion factors from the ‘Emissions Factors Hub’ are used to estimate associated GHG
emissions. Excavation waste is not included in this estimation as excavation waste is most often reused on
site or on a different site.
6. Business travel
GHG emissions related to business travel are captured following the same process as BAM’s Scope 1 and 2
emissions. BAM captures data related to privately owned cars (refunded kilometres), air and train travel.
7. Employee commuting
GHG emissions associated with commuting by car are captured following the same process as BAM’s Scope 1
and 2 GHG emissions. Using country specific statistics, HR data and conversion factors the emissions related
to the other modes of transport are calculated. These emissions are added up to determine total employee
commuting emissions.
11. Use of sold products
GHG emissions from the use of sold products are estimated by multiplying the energy use of BAM-delivered
assets in 2024 by the asset’s lifetime and country-specific carbon intensity of the energy grid. BAM
acknowledges that emissions can fluctuate significantly year-to-year depending on the projects delivered.
Different approaches are used per asset type:
• Residential buildings: the BENG2 value, average energy use per energy label or reference project
combined with the actual or national average floor area for dwellings is used to estimate the expected
energy use.GHG emissions are then calculated by multiplying the asset’s lifetime by the annual energy
intensity and the country-specific carbon intensity. A 75-year lifespan is assumed for new homes, and 25
years for renovations. As a conservative assumption BAM uses the GHG factor of electricity from an
‘unknown source’ or national average, as BAM currently cannot determine the energy carriers of estimated
energy use.
• Offices: A project list of all delivered assets in 2024 is compiled. In the Netherlands, the BENG2 value and a
conversion factor estimate energy use. In the UK and Ireland, the BER value and floor areas of delivered
projects determine expected energy use. A lifetime of 50 years is assumed for new builds and 40 years for
renovations.
• Civil engineering assets: for assets like roads, railways, and foundations, energy consumption during use is
minimal. These typically include low-energy components, such as LED lighting and electronic traffic signs.
Given the low impact, BAM estimates emissions for civil assets in 2024 based on the same share as in 2023,
which is 5%.
• Fugitive emissions: Fugitive emissions are not included in BAM’s Scope 3 emissions. BAM has made an initial
estimation based on average European leakage rates and common refrigerants in the UK and the
Netherlands. These emissions are excluded from total Scope 3 calculations due to uncertainty around the
Scope of projects for which these estimations are applicable
12. End of life treatment of sold products
The GHG emissions associated with this category are calculated based on the properties and assets used to
calculate Scope 3 category 11. First, the total floor area of the assets developed under category 11 is
determined. This floor area, measured in square meters, is then multiplied by a BAM-specific average amount of
demolition waste per square meter for each asset type.
The resulting waste mass is allocated to different end-of-life scenarios, with the distribution based on BAM’s
waste treatment activities in 2024. Finally, the mass in each end-of-life scenario is multiplied by the appropriate
emission factors from the ‘Emission Factors Hub’, the same source used in category 5.
15. Investments
BAM has one relevant investment in AsfaltNu. Emissions associated with the asphalt from AsfaltNu procured
by BAM are already reported under category 1 in line with the approach of BAM’s joint venture partner. BAM
has accounted for the BAM-share of GHG emissions of asphalt delivered by AsfaltNu to third parties, other than
the joint venture partner, under category 15.
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Pollution (ESRS E2 – entity-specific)
BAM’s negative impact caused by air and soil pollution is associated with the upstream value chain,
including emissions and hazardous substances generated by BAM’s suppliers and upstream joint
venture partners.
Disclosures are related to the following material impacts, risks and opportunities as identified through
BAM’s double materiality assessment process, refer to full details in
chapter 6.1.
42
E2 – Entity-specific Pollution
Material impact, risk or opportunity
Pollution
Pollution of air and soil (VC upstream)
Negative impact
The disclosures in this section should be read in conjunction with the disclosures in chapter 6.2 on
Impact, risk and opportunity management. The topic of pollution is closely connected to the other
environmental sub-topics such as climate change and biodiversity. The seven greenhouse gases
connected to air pollution are included in section Climate change (ESRS E1), pollution as a direct
impact of biodiversity loss is addressed in section Biodiversity (ESRS E4). Upstream pollution in
BAM’s value chain is identified as a material impact in BAM’s double materiality assessment.
The related disclosure requirements in ESRS E2-4 until ESRS E2-6 are specific to own operations,
which is not considered material to BAM. Refer to BAM’s double materiality assessment process
in chapter 6.1.
Description of the processes to identify and assess material pollution-related impacts, risks and
opportunities (IRO-1)
In 2024, BAM has screened its upstream business activities in order to identify its actual and potential
impact. Based on internal consultations with subject matter experts, and consultations with key
parties in BAM’s supply chain, the relevant upstream activities have been identified. BAM further
discloses the assumptions and tools used in the impact assessment. The most impactful categories in
relation to upstream pollution for BAM are global warming, human toxicity, ecotoxicity, acidification
and eutrophication. The estimated relative impact of upstream pollution is enclosed in
figure 43.
A significant part of the total BAM upstream pollution is human toxicity. Human toxicity refers to the
adverse effects that pollutions have on human health. These impacts can arise from various sources
of pollution and is the most impactful pollution for BAM. BAM’s upstream pollution also has a
significant impact on acidification, eutrophication, and ecotoxicity (terrestic), and as described
earlier on global warming.
For 2024, the same methodology and assumptions were used as for 2023. Primary data was used to
calculate 13.6% of the 2024 Scope 3 GHG emissions. BAM applied one reclassification related to the
share of emissions of asphalt delivered by AsfaltNu to third parties under category 15 Investments
instead of under category 1 Purchased goods and services.
In 2024, BAM recalculated its 2019 Scope 3 baseline based on the methodology in line with 2024.
BAM reports this baseline in the sustainability statement for the first time in 2024 . The baseline was
recalculated on a ‘like for like’ basis. Only the business activities that are part of BAM in 2024 are
included, i.e., the parts of Belgium and all the Germany business activities divested between 2019
and 2023, are excluded from this baseline. BAM International is only included in the 2019 baseline for
upstream activities. Emission data on projects delivered by BAM International in 2019 is not available.
The Scope 3 baseline was calculated by applying as much as possible the same methodology that was
used for 2023 and 2024. Only for category 11. Use of sold products, the methodology significantly
differs, due to the fact that a larger part was extrapolated in 2019 due to the unavailability of data for
some business activities. As a result, 27% of the 2019 total Scope 3 footprint is estimated based on
extrapolation, compared to 5% in 2024.
The largest category of BAM’s scope GHG emissions is category 1. Purchased goods and services.
The observed differences between 2019, 2023 and 2024 are minimal, because the same applied
spend-based methodology with the same conversion factors has been used for all reported years,
and BAM’s total spend has remained relatively constant in this time period. BAM believes that in
reality BAM’s impact in this category most likely went down, due to industry energy improvements
and a reduction in BAM’s spend figures when corrected for inflation.
BAM decided to use consistent factors for all years because BAM acknowledges that spend based
method is accompanied by large uncertainties in general, and adding assumptions does not do
justice to the maturity of the measurement. BAM continues to work towards using activity data to
replace spend based calculations.
The largest differences between the reported years can be observed for category 11. Use of sold
products. The GHG emissions in these category can highly fluctuate on an annual basis, as they
included the whole lifetime energy use of assets delivered in the reporting year.
The decrease in 2024 compared to 2023 is mainly the result of a different portfolio of delivered assets
and a decreasing average energy use per metre squared. While these are probably also the main
reasons for the difference with 2019, 2019 baseline is also based on significantly larger portion of
extrapolation (27% versus 5% in 2024).
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BAM further investigated its upstream activities and the impact in pollution category ‘Human
toxicity’, for specific information see text box on the next page. As a result of this analysis BAM was
able to drill down on to activity type to check which activities are the most impactful. BAM
determined that upstream pollution from the primary materials, asphalt, steel and concrete, but also
from installation works have a significant negative impact in relation to upstream pollution and
specifically with regards to human toxicity.
BAM’s activity ‘installation works’ consists mainly of mechanical and electrical installations. In addition
to installation works, category ‘exterior and interior work’ is significantly impacting human toxicity.
This is attributable to its material use and related activities, such as aluminum and curtain walling,
ceiling and partition wall systems, facade cladding metal (zinc, aluminum, copper, steel) and the use
of stone product and brickwork. BAM recognises the need to address this negative impact on human
toxicity in its upstream operations.
Policies related to pollution (
E2-1)
While BAM’s sustainability policy does not explicitly address pollution, the policy does provide
guidance on material use. With the efficient use of materials and use of sustainable alternatives BAM
intends to minimise the upstream pollution. BAM is doing research on how this should influence the
procurement processes for the purchase of materials.
Actions and resources related to pollution (E2-2)
BAM intends to provide more detailed reports on upstream pollution in the coming years. The
availability of more qualitative data from ongoing analysis, data improvements and the increasing
knowledge regarding emissions will enhance the quality of these reports.
BAM considers the specific mitigation hierarchy to allocate actions and resources:
• Avoid pollution, including any phase out of materials or suppliers that have a significant impact
• Reduce pollution, for example meeting the Do No Significant Harm criteria for pollution prevention and
control according to the EU Taxonomy Regulation and its Delegated Acts (minimisation of pollution)
43 Relative estimated impact of pollution in BAM’s upstream value chain*
(in %)
Global warming
Eutrophication
Acidification
Human toxicity
Ecotoxicity, terrestric
3
2
16
9
70
* Pollution emission figures are calculated with estimations assumptions
With the impact on human toxicity in BAM’s upstream operations, BAM will further investigate on the
awareness about human toxicity impact and intents to reduce that impact going forward. In depth
information about the global warming emissions in relation to the climate impact of BAM can be
found in BAM’s Scope 3 disclosures in section Scope 3 and total GHG emissions (E1-6) on
page 84.
Acidification, eutrophication and ecotoxicity have comparable percentages in relation to the total
pollution, and a limited impact compared to the other two categories.
Reporting principles and assumptions pollution
BAM has used procurement data to gain insights in upstream pollution. Upstream pollution emissions
from purchased goods and services are based on BAM’s spend data. The spend data is converted into
pollution emissions using public available conversion factors. BAM has selected Exiobase v3.8.2. as
the emission factor database to convert spend data into pollution data and impact categories. The
BAM procurement categories have been manually mapped against the categories in the Exiobase
database based on expert judgement. BAM used the Environmental Cost Indicator (ECI) to compare
impact categories with each other. BAM considers this calculation as the most effective method
currently available for assessing upstream pollution. This approach highlights the category where
BAM has the highest environmental impact. There is an expectation that over time, the methodology
for measuring upstream pollution will improve, potentially involving updates of weighting factors
and measurement methods. BAM does not yet disclose the absolute emissions related to the
different pollution categories, because of estimation uncertainties of this level of detail.
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Target related to pollution (E2-3)
Pollution is not included as a specific element in BAM’s strategy. In BAM’s research and discussion with
experts, BAM has concluded that a separate target for upstream pollution is not suitable, and
recognises the strong dependency on material use. Therefore, upstream pollution is incorporated in
the (indirect) targets set for the reduction of non-biobased virgin materials: BAM aims to achieve a
50% reduction by 2030 compared to 2019. The focus is on reducing the consumption of primary
materials such as concrete, steel and asphalt. Those materials have substantial environmental impact
and result in air and/or soil pollution that occurs during the extraction and processing of the materials.
Also, BAM tries to substitute these high-impact materials for a more sustainable materials and/or
recycled materials. For further details on (targets related to) material use, refer to section Resource
use and circular economy (ESRS E5) on
page 97.
BAM does not disclose the amount of pollutants that are emitted through BAM’s purchased materials
in 2024. When the traceability of purchased materials improves, BAM will be able to report in the
future on the amount of pollutants. If material to BAM, BAM includes the operating expenditures
incurred in the reporting period in conjunction with major incidents, including any provisions for the
environmental protection and remediation costs, e.g., for rehabilitating contaminated sites, removal
of environmental contamination at sites and similar measures. No such material remedial (financial)
actions have come to BAM’s attention in 2024.
Asphalt production
Asphalt production is a critical component in BAM’s construction operations, yet it is essential to
acknowledge its environmental impact, particularly concerning upstream pollution. The production process
involves a substantial impact on human toxicity due to the extraction and refinement of raw materials. The
most impactful emissions are benzene and Polycyclic Aromatic Hydrocarbons (PAHs), which releases during
the production of new asphalt mixtures with the use of recycled asphalt. BAM is committed to implement
sustainable practices and explore innovative technologies to minimise these environmental impacts. BAM’s
asphalt supplier in the Netherlands is the joint venture AsfaltNu. In 2022 and in 2023, operational carbon
filters were installed in various asphalt plants from AsfaltNu which ensure a significant reduction in
emissions. In the meantime, the plants are working on smarter and more sustainable techniques for the
longer term. AsfaltNu also will start building a new asphalt plant in 2025, where innovative techniques take
care for a production that has a low pollution in emissions, fragrance free and is almost noise free.
Steel production
Steel production is from origin a fundamental material for construction work and is also associated with
significant upstream pollution. The production of steel leads to high nitrogen emissions, which have a
negative impact on the environment. The production of steel also leads to the emission of particulate
matter, which has a negative impact on the human toxicity. The traceability of steel in the construction
sector is complex due to the multifaceted nature of the supply chain. BAM will further investigate in their
traceability to reduce the impact in pollution. BAM focuses on the reduction of the consumption of steel
related to BAM’s targets for the use of primary materials. BAM will use as much as possible recycled steel,
currently at a level of 67% recycled steel use relative to the total steel consumption, refer to section Resource
use and circular economy (ESRS E5) for further details.
Concrete production
Concrete production is also associated with considerable upstream pollution. This has severe impact on
climate change and also affects human toxicity. BAM is not yet able to measure and report in detail about the
exact emissions of concrete, due to various variables, such as regional production and the lack of activity
data. Quantification of the specific amounts of concrete is considered a valuable insight, as the specific
substance and the level of sustainable production per supplier varies. BAM aims to reduce the consumption
of concrete and/or replace it by more sustainable concrete or other materials. For example, BAM’s initiative
‘GROENR BETON’ allows BAM to use more sustainable concrete which reduces the pollution of the concrete
production. Additionally, BAM aims to collaborate as much as possible with suppliers that have climate and
sustainability-related certifications, such as ISO 14001 and CSC Certification.
Sustainability insight
Net Zero schools: BAM’s green future is here and
now. Southam College is a ‘Pathfinder’ facility
which allows BAM Design to use its in-house
multi-disciplinary teams: Architecture, Structures,
MEPH (Mechanical, Electrical, and Public Health),
Sustainability and Interior Design.
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positive biodiversity impact. Here, ‘biodiversity’ can be used interchangeably with ‘nature’.
In the wider industry ‘nature-positive’ as a term did not receive an official definition. This is not
preventing BAM from producing a robust biodiversity approach, but it does make it necessary to be
transparent about the limitations.
The resilience of a BAM’s business model with regards to biodiversity depends on the ability to adapt
operations to minimise environmental impacts and align with biodiversity conservation goals. BAM’s
business model integrates sustainable practices, such as responsible sourcing, habitat restoration,
and eco-friendly design, educing dependency on finite natural resources and mitigating regulatory
and reputational risks.
BAM’s strategic plan contributes directly to the KMGBF relevant goals and targets by:
•
Reducing threats to biodiversity: minimizing construction-related impacts and restoring degraded
ecosystems.
•
Sustainable resource use: embedding sustainable material sourcing into the value chain.
•
Engaging stakeholders: partnering with, clients, communities and experts to build capabilities.
BAM has used the 2019 Intergovernmental Science-Policy Platform on Biodiversity and Ecosystem
Services (IPBES) report: ‘The Global Assessment Report on Biodiversity and Ecosystem Services’ to
further concretise the goals from KMGBF for the context of BAM. This report was very significant and
comprehensive. It attributed biodiversity loss to five primary drivers:
• Change of land use
• Direct exploitation of natural resources
• Climate change
• Pollution
• Invasive alien species
Addressing the themes highlighted in the IPBES report is highly relevant to the construction industry
and in the built environment. Moreover, construction is in the world’s top three sectors with
dependency on natural resources for raw materials. Hence BAM is adhering to these five drivers when
developing and monitoring the business transition towards minimizing the construction-related
impacts and risks on biodiversity. To make these themes actionable BAM has developed their own
Biodiversity approach: BAM Biodiversity+ (see
page 27).
Biodiversity and ecosystems (ESRS E4)
Biodiversity refers to the variety and variability of life forms on Earth, including the diversity of
species, ecosystems, and genetic variations within those species. It encompasses everything from
plants and animals to microorganisms, as well as the ecosystems they form, like forests, oceans, and
grasslands. Essentially, biodiversity represents the richness of life in all its forms, and it’s crucial for
maintaining ecological balance, supporting human life, and providing ecosystem services like clean air,
water, and food.
The construction sector is a major driver in the decline of biodiversity. BAM aims to help reduce the
loss of biodiversity (specifically in its own operations) and protect ecosystem services, working
towards a world where nature and human activities are in balance. BAM’s strategic approach is
focused on gaining insights in the biodiversity impacts on its project and propose and deliver
biodiversity enhancing where possible.
Disclosures are related to the following material impacts, risks and opportunities as identified through
BAM’s double materiality assessment process, refer to full details in
chapter 6.1.
44
E4 –Biodiversity
Material impact, risk or opportunity
Biodiversity and ecosystem services
Biodiversity loss through land use change (OO)
Negative impact
Ecosystem services (OO)
Positive impact
The disclosures in this section should be read in conjunction with the disclosures in
chapter 6.2 on
Governance, Strategy and Impact, risk and opportunity management. The topic of biodiversity is
closely connected to the other environmental sub-topics such as climate change and pollution.
Transition plan for biodiversity (E4-1)
BAM has integrated biodiversity considerations into the broader strategy, to contribute towards a
nature positive economy and align with global biodiversity goals, for example those of the Kunming-
Montreal Global Biodiversity Framework (KMGBF). The KMGBF was adopted during COP 15 following
a four year consultation and negotiation process. This framework, which supports the achievement of
the Sustainable Development Goals and builds on the Convention’s previous Strategic Plans, sets out
an ambitious pathway to reach the global vision of a world living in harmony with nature by 2050.
BAM aims to have an aggregated positive impact on biodiversity by 2030 with focus on measuring
BAM’s impacts on biodiversity, offering biodiversity-enhancing solutions in tenders and, achieving a
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Reporting principles and assumptions biodiversity
BAM has defined what distance is considered ‘near’ biodiversity sensitive areas in the context of
BAM’s own operations. The relevant distance depends on local aspects, such as type of habitat and
presence of species, and can substantially vary case by case. Although standardised buffer zones
may not fully capture specific ecological sensitivities or species-specific impact ranges, which
could either under- or overestimate the actual zone of influence for some biodiversity impacts,
a practical approach was implemented.
BAM has considered the following thresholds for identifying the number of potential material sites:
5 km for International designated sites; 2 km for nationally designated sites. These thresholds are
based on internal expert judgement related to the zone of Influence - the area over which a given
ecological feature might be affected - for each designated site. To assess the potential impact of
each operational site onto designated sites, BAM considered aspects such as likely presence of
mobile species (eg. bats and birds); habitat fragmentation effects due to the size, location and
nature of the operational site; hydrological impacts; light and noise impacts or increased
recreational pressure. These aspects can generally be influenced from a distance up to several
kilometres. BAM applied a larger threshold for international designated sites as there are more
likely endangered species in these sites.
While all sites that fall within the thresholds above might have material biodiversity impacts,
BAM has decided that sites within 500 metres of biodiversity sensitive areas pose the highest risk to
negatively affect biodiversity. A distance of several hundred metres is recognised in environmental
and planning practices as an appropriate buffer zone for assessing localised impacts, such as noise,
dust, and light pollution, which tend to be most significant at this scale. Various regulatory
frameworks, urban planning policies, and environmental impact studies have applied similar
thresholds, demonstrating that 500 metres could effectively capture potential material impacts
from localised activities while allowing for efficient screening across numerous sites.
ESRS prescribes to discloses impact of all sites owned, leased or managed. Managed sites are
considered not relevant for BAM. BAM did not assess all of its leased assets, but BAM assumes that
the potential negative biodiversity impact in leased assets is not material. The main reason is that
material biodiversity impacts are mainly on sites that are actively being developed by BAM and
BAM does not actively develop leased sites.
This is a combination between different industry best practices, including:
•
ESRS E4 Biodiversity and Ecosystems
•
The British Standard BS 8583 Biodiversity
•
The Building Research Establishment Environmental Assessment Method (BREEAM) for Infrastructure
•
The Chartered Institute of Ecology and Environmental Management (CIEEM) Biodiversity Net Gain:
Good practice principles for development
•
The Expedition Engineering’s Embodied Biodiversity Impacts of Construction Materials research report
•
GRI 101: Biodiversity 2024
There is an overlap with between biodiversity and other environmental topics such as climate change
and pollution. BAM addresses further disclosures on climate change and pollution in the sustainability
statement on
page 78 and
page 88 respectively.
Material impacts, risks and opportunities and their interaction with strategy and business model (SBM-3)
The activities of BAM potentially affect biodiversity on all sites that BAM owns or where BAM operates.
BAM distinguishes between direct impact on sites where it has full operational control (BAM owns the land)
and indirect impact on (construction) sites where BAM operates on behalf of its clients. BAM considers
direct impact on biodiversity when a new construction footprint is causing land use change and loss of
habitats as part of the property development activities of BAM. Indirect impacts, more focused on the
construction design and build BAM is performing. For instance, shipping and transporting materials can
introduce invasive species, which can damage ecosystems over time. In many cases, a single action can
cause multiple types of impact; for example, developing a new road to a remote location causes impact
through construction and often increases habitat degradation to adjacent areas due to improved access.
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Ten sites are owned sites near biodiversity sensitive areas that were actively developed in 2024.
On these sites BAM has a material impact on biodiversity. The impact is mainly caused by land use
change on the sites where new buildings are being developed and by pollution, lighting and noise
from (construction) activities on these sites. BAM has not performed an individual biodiversity impact
assessment for these sites.
Biodiversity in BAM’s value chain is not directly identified as a material impact in BAM’s double
materiality assessment (see
chapter 6.1). However, assessing the full scope of biodiversity impact is
seen by BAM as best practice, and to work towards a biodiversity positive impact BAM needs to also
account for the impacts in BAM’s value chain. Downstream impact of sites and projects is included in
the Biodiversity+ assessment. BAM has started to analyse the potential biodiversity impact of
upstream activities (supply chain). In 2024, BAM carried out a value chain risk assessment in close
collaboration with the experts Biodiversify. The key results of this assessment show that BAM’s top
scoring upstream biodiversity impacts are in the processes infrastructure builds and mining.
The key drivers for impact are greenhouse gas emissions, water use, terrestrial ecosystems use and
sold waste. Key dependencies include forestry and water-related ecosystem services. The dependency
on forestry is already evident in the sourcing of certified sustainable timber, which is an important
building material in BAM’s transition plan for climate change.
The recommendations of the value chain risk assessment are to focus on reducing primary material
use, increase traceability and use certified materials where possible. Materials are prioritised as
follows:
• Tier 1: Aggregates, asphalt and concrete
• Tier 2: Aluminium, food and steel
• Tier 3: Fuel, lithium and timber.
BAM is already targeting the reduction of primary asphalt, concrete and steel within the target of -50%
non-biobased primary material use in 2030 vs. 2019 (see
section Resource use and circular economy
(ESRS 5)). The use of certified sustainable HVO is part of BAM’s climate transition plan and the use of only
certified sustainable timber is mandatory and monitored within BAM.
Description of the processes to identify and assess material biodiversity and ecosystem--related impacts,
risks and opportunities (IRO-1)
As disclosed in
chapter 6.1 (BAM’s Double Materiality Assessment) and in the ESRS E4 SBM-3 analysis
above, BAM has screened its business activities in order to identify its actual and potential impact.
Based on internal consultations with subject matter experts, and consultations with key parties in
BAM’s supply chain, the relevant activities have been identified.
BAM has assessed owned sites to determine whether direct impacts are material, by mapping the
location of its sites against the biodiversity sensitive areas as presented in table 46.
BAM distinguishes
between sites within or adjacent to biodiversity sensitive areas and sites near biodiversity sensitive
areas. BAM assessed how many owned sites are within 5 kilometres of international statutory
designations, within 2 kilometres of national statutory designations and within 500 metres of either
international or national sites (see
table
45
). There can be overlap as some sites can be located both
near a international and near a national site. BAM was not able to verify completeness of the assessed
sites for all parts of the business, because the list of owned assets was partially manually compiled.
45
Number of sites near biodiversity sensitive areas
Country Number of sites
within 500 metres of
international or
national statutory
designated sites
Number of sites
between 500 m and
5 km of international
statutory designated
sites
Number of sites
between 500m and
2 km of national
statutory designated
sites
Netherlands 13 20 22
Belgium 0 4 0
United Kingdom 2 4 5
Ireland 1 0 0
BAM has used a threshold of 500 meters to select the sites that are most material, and has disclosed
further details of these sites in
table 47. Out of these sites, BAM classifies the sites where
developments are happening as material. The following reasoning has been applied:
•
Sites with no activities. These are land positions, mostly farm land, owned by BAM (most often by
the developer). Active development of these sites might be considered for the future but current
impact of biodiversity is considered negligible.
•
Offices/depots. BAM acknowledges that the activities on these sights, such as noise, lightning and
pollution might have an impact on biodiversity, especially if the site is within or directly adjacent to
a biodiversity sensitive area. However, the risk of this potential impact is considered much lower
than the risk of the (potential) impact of sites that are actively being developed.
•
Active development. Activities on these sights might include construction activities, which can
directly lead to land use change. Combining this with the other (potential) impacts from
construction works, such as pollution, noise and water use, BAM sees a much higher risk of
substantial impact on biodiversity and ecosystems for these sites. The level of (potential) impact
can strongly vary between sites as it depends on various local aspects, such as the type of nature
sensitive area, the type of development and the method of construction.
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Targets related to biodiversity and ecosystems (E4-4)
BAM has included biodiversity in its strategy and has set the following biodiversity targets:
•
2026: Biodiversity enhancing alternatives offered in all A,B,C tenders and developments with design
in their scope
• 2026: Evidenced biodiversity balanced on all projects in the United Kingdom and Ireland
•
2030: Aggregated biodiversity positive
BAM has set these targets in line with KMGBF and hopes that by contributing to these targets BAM
provide support for the transition towards a nature inclusive and biodiverse sector. BAM did not apply
ecological thresholds when setting these targets. The targets were intended to be aligned with the
UK biodiversity net gain regulation, but based on the recent iteration, Biodiversity+ is now assessing
a wider scope of biodiversity. The target for 2026 to offer biodiversity enhancing alternatives is a
concrete target, focused on reducing negative impacts of BAM’s construction processes and look for
opportunities to provide a positive biodiversity impact where possible. The target is allocated to
avoidance and minimisation of negative biodiversity impacts.
The 2026 target on evidenced biodiversity balanced and the 2030 target are not yet very tangible
and need further refinement. BAM anticipated to use the United Kingdom Biodiversity Net Gain
(BNG) approach developed by the British Government to use as the metric report biodiversity impact
and work towards a positive impact by 2030. However, in 2024 BAM concluded that this approach is
not feasible as the methodology is only applicable to the United Kingdom and is very difficult to
translate to BAM’s other markets, and because BNG focuses on habitats and land use, but does not
cover other important drivers for biodiversity, such as pollution and invasive species. Therefore, BAM
is planning to update these biodiversity targets in 2025.
Impact metrics related to biodiversity and ecosystems (E4-5)
BAM has identified 16 material sites with potential negative impact on biodiversity (see table 47),
out of which 9 sites are sites that are actively developed in 2024. On these 9 sites, BAM might directly
contribute to land-use change. As BAM did not perform a biodiversity impact assessment on the
individual sites, BAM can not provide an exact figure on its facilitated land use conversion.
The total area, and therefore maximum land use conversion, of these 9 sites is 200 hectares. BAM
assumes that the real figure would be substantially lower, as on most of the larger projects BAM only
develops part of the land. BAM has also included the offering of biodiversity enhancing alternatives as
part of BAM’s sustainability baseline, BAM is not yet able to report its performance across all tenders.
The main reason is that validation on whether alternatives are demonstrably biodiversity enhancing
is still ongoing.
Policies related to biodiversity and ecosystems (E4-2)
While BAM’s sustainability policy mentions biodiversity, it does not explicitly address the identification,
assessment, management and/or remediation of the material biodiversity and ecosystems impacts,
risks or dependencies. The policy does provide guidance on the traceability of timber, but not (yet) any
other products. The policy does not explicitly address production sourcing or consumption from
ecosystems (except for timber) or social consequences of biodiversity and ecosystems-related impacts.
BAM will be subject to the EU Deforestation Regulation (EUDR) from 31 December 2025 onwards
specifically for the division Netherlands, and has started to embed this in the procurement (due
diligence) processes. This will address deforestation impact in BAM’s supply chain directly.
Actions and resources in relation to biodiversity and ecosystems (E4-3)
BAM’s actions to work towards a biodiversity positive future consist of gaining insight in BAM’s
biodiversity impact, applying mitigation measures on BAM’s sites and projects and work towards a
consistent and comprehensive approach to measure and report progress on biodiversity impacts.
BAM implemented two specific measures in 2024 as part of this transition plan:
1. The addition of biodiversity criteria in BAM’s tender baseline process. BAM added two criteria for
large tenders, namely that “biodiversity enhancing alternatives need to be proposed to clients” and
that “projects do not have a negative lasting impact on biodiversity”.
2. Development and roll out of the Biodiversity+ approach, BAM’s biodiversity assessment on projects.
BAM finished the development of Biodiversity+, a qualitative biodiversity assessment addressing
five key biodiversity impacts: land use change, overexploitation, climate change, pollution and
invasive species. BAM sees opportunities to improve its impact on projects, namely by creating
habitats that promote biodiversity, conserving natural resources, establishing biological carbon
sinks, avoiding pollution, implementing biosecurity, promoting wellbeing, collaborating with
communities and strengthening governance. BAM Biodiversity+ includes a library of biodiversity
solutions, based on recognised national and international standards as well as a comprehensive tool
to evaluate BAM’s efforts against each of these opportunities. BAM started to assess its projects in
the United Kingdom and Ireland and run a pilot on twelve projects in the Netherlands.
BAM’s action plans are focused in improving insight in the its biodiversity impact, mitigating negative
impacts and positively impact biodiversity on projects where that is possible. BAM is currently not
considering to make use of biodiversity offsets.
BAM acknowledges there is not a one size fits all solution for biodiversity impact mitigation. To make
sure BAM’s efforts actually generate a positive result BAM heavily relies on local knowledge in the
implementation of nature-based solutions for biodiversity related actions. This concretely means that
through BAM’s Biodiversity+ Assessment BAM collaborates with local NGOs, educational institutions,
local inhabitants and local ecologists to propose nature inclusive solutions for BAM’s projects.
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46 Summary of Biodiversity sensitive areas by zone of influence
International Statutory Designations
Search areas from each BAM operational site Designated Sites Zone of Influence
(excluding construction sites) UNESCO World Heritage Sites International importance
Up to 5 km UNESCO Man and the Biosphere Reserves Includes core and transition zones
Ramsar Sites Protects internationally important wetlands
Special Protection Areas (SPAs) EU (and UK) - designated bird protection areas
Special Areas of Conservation (SACs) EU (and UK) - designated for habitat and species protection
Natura 2000
EU – designated for birds and habitat protection
National Statutory Designations
Search areas from each BAM operational site Designated Sites Zone of Influence
(excluding construction sites) Great Britain - Sites of Special Scientific Interest (SSSIs)
Northern Ireland - Areas of Special Scientific Interest (ASSIs) Republic of
Ireland - Natural Heritage Areas (NHAs)
Nationally important scientific areas
Up to 2 km UK - National Nature Reserves (NNRs)
Republic of Ireland - Nature Reserves
Critical wildlife habitats and geological sites
UK - Marine Conservation Zones (MCZs)
Republic of Ireland - Refuges for Fauna and Flora
Nationally important marine sites or species habitats
UK - Areas of Outstanding Natural Beauty (AONBs)
Republic of Ireland - High Amenity Zones (specific to some counties)
Scenic or ecologically valuable landscapes
Natuur Netwerk Nederland
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47 Overview of sites owned by BAM within, adjacent to and near biodiversity-sensitive areas
International designations National designations Identified activities
Site Location/Country Size (m
2
) Within/adjacent Near < 500m Within/adjacent Near < 500m Identified activities
Ritchies Clevedon Depot only Clevedon, England 3,500 Tickenham, Nailsea
and Kenn Moors SSSI
Office/depot
Allbrook Eastleigh, England 6,200 River Itchen SSSI Office/depot
Cork Office Cork, Ireland 2,000 Cork Harbour SPA Office/depot
Vinkeveld 4 Rosmalen, the Netherlands 350 Natuurnetwerk
Nederland
Office/depot
De Serpeling 120 Lelystad, the Netherlands 3,201 Natuurnetwerk
Nederland
Office/depot
Stadionweg 23 Rotterdam, the Netherlands 2,190 Natuurnetwerk
Nederland
Office/depot
Randweg 9 Roermond, the Netherlands 500 Natuurnetwerk
Nederland
Office/depot
Amstelveen - Westwijk ZO Amstelveen,
the Netherlands
140 Natuurnetwerk
Nederland
Active development
Haarlemmermeer - Wickevoort Haarlemmermeer,
the Netherlands
462,251 Natuurnetwerk
Nederland
Active development
Helmond - BAC Helmond, the Netherlands 31,697 Natuurnetwerk
Nederland
Active development
Middelharnis - Hernesseroord Middelharnis, the Netherlands 63,623 Natuurnetwerk
Nederland
Active development
Purmerend - Kwadijkerpark Purmerend, the Netherlands 148,785 Natuurnetwerk
Nederland
Active development
Terneuzen - Othene-Zuid Terneuzen, the Netherlands 269,055 Natuurnetwerk
Nederland
Active development
Weesp - Bloemendalerpolder Weesp, the Netherlands 759,643 Natuurnetwerk
Nederland
Active development
Zaandam - Saendelft Zaandam, the Netherlands 129,341 Polder Westzaan Natuurnetwerk
Nederland
Active development
Zierikzee - Noorderpolder CV Zierikzee, the Netherlands 138,782 Natuurnetwerk
Nederland
Active development
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Resource use and circular economy (ESRS E5)
Circular economy means an economic system in which the value of products, materials and other
resources in the economy is maintained for as long as possible, enhancing their efficient use in
production and consumption, thereby reducing the environmental impact of their use, minimising
waste and the release of hazardous substances at all stages of their lifecycle, including thought the
application of the waste hierarchy. The goal is to maximise and maintain the value of the technical and
biological resources, products and materials by creating a system that allows for durability, optimal
use or re-use, refurbishment, and recycling.
BAM focuses on the reduction of non-biobased virgin materials. Specifically, the focus is on reducing
the consumption of primary materials such as concrete, steel, and asphalt, known for their substantial
environmental impact. BAM aims to minimise the reliance on primary non-biobased materials by
substituting them with bio-based or secondary (reused and recycled) materials.
Reporting on the waste generation and waste management within BAM has been undertaken for
many years. BAM categorises waste into four different categories: construction, office, excavation and
demolition waste. BAM has direct influence on the construction and office waste. This waste arises
from the materials BAM brings to its construction sites and products BAM brings into its offices.
Currently, this is the focus of BAM’s waste reduction target.
BAM also contributes to the circular economy by designing buildings and infrastructure in line with
circular economy principles.
Disclosures are related to the following material impacts, risks and opportunities as identified through
BAM’s double materiality assessment process, refer to full details in
chapter 6.1.
48
E5 Resource use and circular economy
Material impact, risk or opportunity
Resource use
Depletion of raw materials (VC upstream)
Negative impact
Waste reduction (hazardous and non-
hazardous waste)
(OO)
Negative impact
Waste re-use and recycling (OO)
Positive impact
Resource use
Circular design (OO)
Positive impact
The disclosures in this section should be read in conjunction with the disclosures in
chapter 6.2 on
Impact, risk and opportunity management.
Description of the processes to identify and assess material resource use and circular economy--related
impacts, risks and opportunities (IRO-1)
In 2024, BAM has screened its business activities in order to identify its actual and potential impact.
Based on internal consultations with subject matter experts, and consultations with key parties in
BAM’s supply chain, the relevant activities have been identified. BAM further discloses the
assumptions and tools used in the impact assessment.
Policies related to resource use and circular economy (E5-1)
BAM’s ability to meet its sustainability ambition related to resource use and circular economy is driven
by the organisation responsibilities described in the sustainability policy:
• Make efficient use of resources (such as energy and water).
• Optimize design to minimise the amount of materials used.
• Consider the use of sustainable alternatives to conventional building materials, such as biobased
(timber) and recycled materials. And only procure 100% certified sustainable timber.
• Avoid waste of materials and separate remaining waste streams.
• Support the use of materials passports and circularity assessment on projects.
The policy addresses both the standards for BAM’s own operations as well as relevant criteria for the
selection of suppliers. It includes that BAM insist that subcontractors / suppliers have relevant
sustainability policies in place and adhere to any prescriptive (project) sustainability requirements to
meet compliance with this policy or any client sustainability requirements and ensures subcontractor
and supplier compliance with relevant environmental protection laws and regulations.
Actions and resources related to resource use and circular economy (E5-2)
Application of circular business practices are evidenced by the development of BAM’s wooden housing
concept Flow. The BAM Wood concepts factory was opened in September 2024. Flow also showcases
higher levels of resource efficiency in use of industrialisation and biological materials (timber). Another
example that evidences BAM’s contribution a circular economy is the development of cold-use asphalt
in BAM’s Dutch infrastructure business activities.
Initiatives in 2024 also focused on the improvement of insights in waste numbers, different recycling
levels with waste partners and the improvement of waste reports in division United Kingdom and
Ireland. For example, division Netherlands piloted a digital waste analysis platform providing insights
to support waste reduction measures and increase of re-use/ recycling. However the pilot was finalised
with unsatisfactory results, hence has been terminated.
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Furthermore regarding material use BAM’s aim was to establish a baseline and reduction path for the
largest material categories in 2024. This initiative got delayed and will extend into 2025 due to
resourcing challenges. In the Netherlands BAM developed a circular mechanical and electrical (M&E)
services roadmap, focussed on reduction of M&E and passive construction. Also, minimum
requirements have been defined for material passports and circularity assessments.
Targets related to resource use and circular economy (E5-3)
As part of BAM’s long term strategy, the following targets are set linked to the increase of circular
project design:
2030: A, B, C and industrialised projects with design in their scope to use the material passport
2030: A, B, C and industrialised projects with design in their scope to use the circularity assessment
In relation to the waste hierarchy, BAM’s targets to the minimise primary raw materials and use
renewable resources are:
49
Waste hierarchy
Redesign
Waste prevention
Waste treatment
2030: Reduce use of non-biobased
primary (virgin) material with 50% (vs. 2019)
2030: Reduce construction and
office waste intensity by 75% (vs. 2015)
Re-use
Prepare for re-use
Recycle
Recovery
Disposal
With regard to construction and office waste, BAM tracks its progress compared to base year 2015. In
the baseline 2015 BAM has included the comparative figures based on the financial consolidation in
the reporting year 2015. This does include the business activities of BAM that have been divested in
the year’s after 2015. The targets are based on intensity, hence the relative impact of divestments is
limited. The targets presented are voluntary and not required by legislation. The reduced use of
non-biobased primary material prompts the use of more biobased materials, for example timber and
straw (insulation). BAM has considered how this may impact biodiversity loss, also in light of
Biodiversity (ESRS E4) on
page 91. Sustainable sourcing is an important element in BAM’s strategic
approach to (biobased) material use. In the paragraph below and in
Biodiversity (ESRS E4) on
page 91 BAM discloses the assessment and potential negative impacts of (biobased) material use.
Reporting principles and assumptions primary materials (resource inflows)
BAM uses multiple methods of collecting data for the usage of materials:
• measured data – based on suppliers’ reports, specifications from invoices or any other method
where the quantities of materials are being physically measured;
• calculated data – based on the cost of the materials and average price per unit of the material;
• estimated data – if measuring or calculation is not possible due to limited information, it is
possible to estimate the quantities of materials by applying a specific ratio.
Material consumption is determined using supplier reports when available. This data is extrapolated to
cover all suppliers. For the remainder of the material use a spend based approach is used, which results in
high estimation uncertainty for this specific information. The results are verified against BAM’s
procurement data, and with BAM’s internal and external experts. The recycled content was determined
based on information provided by suppliers and industry averages.
50
Estimation uncertainty primary materials
Asphalt
Low
uncertainty
High
uncertainty
Supplier
data
BAM
spend
Industry
averages
ConcreteTimber Steel
Asphalt: High reliability: dashboarding with integration to supplier data (cumulative).
Timber: Medium reliability: supplier reports available, extrapolated based on spend.
Concrete: Limited reliability: partial supplier reports available, largely extrapolated based on spend.
Steel: Limited reliability: supplier reports currently unavailable, entirely based on spend and
industry averages.
The basic reporting unit for timber and concrete is set to cubic meters. For asphalt and steel BAM
reports in tonnes. Sustainable timber has been classified in several categories: FSC 100%, FSC mix,
PEFC mix, other certificates and not certified.
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Timber plays a crucial role in minimising the use of non-biobased materials. BAM has committed to
using only certified sustainable timber for its projects, as part of its agreement with FSC Netherlands.
BAM achieved a certified sustainable timber use of 99.2% in 2024 (95.8% in 2023) for its projects in
division Netherlands and United Kingdom.
The change in percentage sustainable timber caused by a one-off for division Netherlands in 2023 (93%)
and was caused by a single purchase unintentionally done with a supplier that was not FSC-certified.
This deviation from the BAM Sustainability Policy was further investigated and BAM concluded that
although the chain of custody was formally broken, the timber in question was sourced sustainably by
the supplier. The organisational coverage is 93%, as timber use in Ireland is not included. Market
conditions continue to make it very challenging to procure sustainable certified timber in Ireland.
Resource outflows (E5-5)
BAM has identified two specific impacts from BAM’s activities related to resource outflows: a positive
impact on circular economy through BAM’s design process, and negative impacts due to waste
generation in BAM’s activities.
BAM sees a material positive short term impact to make use of circular design principles which
involves designing products, services, and systems that are sustainable throughout their life cycle,
maximizing the use of renewable resources, and creating closed-loop systems for the continuous
cycling of materials and resources, e.g., design for disassembly.
52
Circularity in tenders (in %)
2023 2024 Target
2030
A and B tenders with circularity assessments
41 71 100
A, B and C tenders with circularity assessments
- - 100
A and B tenders with material passports
30 63 100
A, B and C tenders with material passports
- - 100
To design according to circular principles, BAM includes a circularity assessment (for example Building
Circularity Index (BCI) in the Netherlands) and makes material passports in most of the project offers
(e.g. tenders), also if those elements are not explicitly requested by the client. The circularity
assessment can support decision-making about which circular design principles to implement in the
design phase of a project and provides insight into the extent to which a building uses recycled
Resource inflows (E5-4)
Resource depletion is the exhaustion of raw materials within a region. Resources are commonly
divided between renewable resources and non-renewable resources. Use of either of these forms of
resources beyond their rate of replacement is considered to be resource depletion. BAM has a negative
impact by direct resource use on the environment and people; depending on how and where the
resources are sourced, as well as how BAM uses them. For example, if BAM sources its materials
unsustainably or in a way that causes pollution or habitat destruction, it can have a negative impact on
the environment and local communities.
Assessing BAM’s resource inflows, it concerns mainly materials used in BAM’s own operations and
along its upstream value chain. Key raw materials for BAM are (ready-mix) concrete, timber, asphalt
and steel.
In
table 51 BAM reports the amount of materials used and the recycled content of these materials
used. Specifically for timber (biological material), the percentage of sustainable sourcing is disclosed.
51
Material consumption
2023 2024
Ready mix concrete (in m³) * 322,808
of which: recycled content * 10,281
of which: % recycled content * 3.2
Timber (in m³) 22,540 27,171
Certified sustainable timber
Sustainable timber (in % of total timber) 95.8 99.2
Organisational coverage (in %) 93 93
Asphalt (in tonnes) * 653,978
of which: recycled content * 195,374
of which: % recycled content * 29.9
Steel (in tonnes) * 167,176
of which: recycled content * 112,531
of which: % recycled content
* 67.3
* Comparative data for 2023 is unavailable on a like-for-like basis, as last year’s reported
data covered only part of the business.
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with circularity assessments and material passports in 2024 for division Netherlands, and 50% of A and
B tenders with circularity assessments and material passports in 2026 for division United Kingdom and
Ireland. In 2024 BAM is already ahead of those targets in both divisions, refer to table 52, and
continues to increase the level of circularity assessments in the project offering in the coming years.
BAM’s waste has negative impacts on the environment and human health, including pollution of air
and water, greenhouse gas emissions, and the spread of disease. Improper disposal of hazardous
waste can also lead to soil and water contamination and harm to wildlife.
Waste reduction (hazardous and non-hazardous waste) is aiming at eliminating waste over the
life-cycle of BAM’s developments. Waste reduction refers to practices that minimise waste
generation, decrease environmental impact, and conserve resources by reducing the amount of raw
materials needed to produce goods and services (see resource inflow), and by reusing or recycling
waste materials.
In the approach for waste reduction and waste reuse and recycling BAM makes a split between
hazardous waste and non-hazardous waste. Specifically because actions like increasing recycling
rates, reducing packaging waste, or promoting reuse initiatives are only applicable for non-hazardous
waste. Hazardous waste according to ESRS is defined in line with the EU Directive on waste (Annex III
of Directive 2008/98/EC).
In 2024 BAM generated a total amount of waste of 940 kilotonnes (908 kilotonnes in 2023). For a
further breakdown between hazardous was and non-hazardous waste and a breakdown by recovery
operation types and waste treatment types, see table 53. Total amount of hazardous waste in 2024
is 47.3 kilotonnes. For examples on materials present in the hazardous waste, refer to table 53.
BAM’s construction and office waste intensity in 2024 was 8.1 tonnes per € million revenue (8.7 in
2023), 52.3 kilotonnes in absolute numbers (54.6 in 2023). Progress is in line with the long term
trajectory to reduce 75% of construction and office waste by 2030 (63% reduction in 2024 versus
2015). Waste re-use repurposes discarded materials or products to reduce waste generation, while
recycling converts waste materials into new products or materials, minimizing the environmental
impact of waste disposal. BAM’s positive impact caused by waste recycling can reduce landfill waste.
Re-use is not included as part of BAM’s waste (construction and office waste intensity).
The total percentage of non-recycled waste was 41% in 2024. Specific for construction and office
waste the percentage was 22% in 2024. This information also supports the information needs with
regard to the EU Taxonomy as reported in
chapter 6.6. BAM’s waste diverted from landfill in 2024
was 22%.
materials and into the reusability and detachability of materials used. In the material passport the
materials used in the end product are documented, enhancing repairability, disassembly, and
planning for re-use and recycling at the end of the product lifecycle.
BAM identified a entity-specific metric for the offering of those circularity measures in new projects. In
order to achieve BAM’s 2030 target, progress is steered towards 50% of A and B tenders
Reporting principles and assumptions waste
The reporting scope of waste includes all waste leaving BAM’s sites and offices. Reported waste is mainly
based on waste tickets and data provided by suppliers. Reported waste is either measured, calculated or
estimated using methods and input data based on BAM’s experience in comparable works. Excavation
waste and demolition waste have a total direct measurement of 97% and construction and office waste
of 94%.
Construction and office waste consists of temporary and permanent construction and other materials
and packaging brought on to sites which are to be discarded and subsequently leave offices,
construction sites and/or BAM sites such as depots or premises. Waste is retrieved and processed by
third-party waste processors. BAM relies on these processors to adhere to (local) legislations stating that
the waste needs to be disposed of in a responsible way.
Data is retrieved from waste recycling reports from the waste facility, certificate of destruction, paper
confidential shredding or waste transfer notes, type of waste permit / licence location sent states
recycling facility (when removed off site) or demolition reports. Limited data is available for the category
prepared for re-use, hence BAM uses a conservative approach in classification, i.e., if evidence is missing
waste will be reported as recycled in stead of prepared for re-use. Waste will only be reported in a single
category, to avoid double counting.
BAM also reports on the ‘reuse’ amount. This is not included as waste.
Waste reporting does not include subcontractors in ‘own operations’, with the exception of waste
numbers for division United Kingdom and Ireland, as this is recognised legally (this implies specific legal
rights and obligations).
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2019
base year 2023 2024 Composition of waste (examples)
2019
base year 2023 2024 Composition of waste (examples)
Office waste 4.9 3.3 2.6 Excavation waste 2,664.9 747.9 785.5
of which: hazardous waste - - - of which: hazardous waste - - 44.1
- prepared for reuse - - - - prepared for reuse - - 0.4 Contaminated soil
- recycled - - - - recycled - - 19.4
- incineration - - - - incineration - - 1.2 Contaminated invasive plants
- landfill - - - - landfill - - 23.1 Contaminated soils, bitumen with coal tar
of which: non-hazardous waste - - 2.6 of which: non-hazardous waste - - 741.4
- prepared for reuse - - - - prepared for reuse - - 153.2 Soil; excavation
- recycled - - 0.9 Paper, cardboard, metal, coffee grounds - recycled - - 412.4 Concrete foundations and pipework
- incineration - - 1.7 Food garbage, plastics, municipal waste - incineration - - 1.5
- landfill - - - - landfill - - 174.3 Soils sent to landfill for capping
of which: reuse - - - of which: reuse - -
Construction waste 122.6 51.3 49.7 Demolition waste 526.1 105.8 101.8
of which: hazardous waste - - 0.2 of which: hazardous waste - - 3.0
- prepared for reuse - - - - prepared for reuse - - 0.3 Impregnated window frame
- recycled - - 0.1 Dead batteries, empty spray cans - recycled - - 0.4 Bitumen with coal tar, TL lighting
- incineration - - - - incineration - - 0.1 Impregnated timber
- landfill - - 0.1 - landfill - - 0.6 Asbestos
- other disposal operations - - - - other disposal operations - - 1.6
of which: non-hazardous waste - - 49.5 of which: non-hazardous waste - - 98.8 Doors, stored on depot or sold to broker
- prepared for reuse - - 1.4 Glass wool insulation - prepared for reuse - - 6.0 Window glazing, concrete debris, timber
- recycled - - 39.7 Concrete surplus, metals packaging skips - recycled - - 83.5
- incineration - - 6.1 - incineration - - 0.9
- landfill - - 2.2 - landfill - - 8.4 Doors, furniture, carpet, flooring materials
of which: reuse - - - Pallet, fence, construction materials of which: reuse - - -
2019
base year 2023 2024
Target
2030
Total construction and office waste 127.5 54.6 52.3 -
Total construction and office waste intensity (in tonnes per € million) 17.7 8.7 8.1 4.4
Total excavation and demolition waste 3,191.0 853.7 887.3 -
Total waste 3,318.5 908.3 939.6 -
53 Waste
(in kilotonnes)
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Own workforce (ESRS S1)
The launch of the BAM Experience (see
chapter 2.2 Strategy) in 2024 placed renewed focus on
putting employees at the forefront of BAM’s mission to build a sustainable tomorrow. BAM aims to
have a positive impact on all employees working at BAM through building an inclusive environment
where everyone feels safe, welcome and respected, and ensuring equal opportunities for employees
regardless of their sex and gender identity, age, ethnicity, disability or other characteristics.
This positively impacts employees by promoting fairness and reducing discrimination, leading to
more engaged employees. Non-discrimination practice in BAM has a positive impact on employees,
as it can ensure fair treatment and opportunities for every individual, regardless of identity. It also
positively impacts the communities in which BAM operates by ensuring BAM’s projects reflect the
diverse needs and values of society. Focus on gender diversity positively impacts the representation
of female leaders in the sector.
BAM positively impacts its own employees and contributes to a safe, sustainable and just society by
offering every employee the opportunity to grow their skills with unparalleled learning opportunities.
This positively impacts every individual by ensuring they can build sustainable careers through
constructive performance evaluations and development opportunities. By levelling-up its employees,
BAM stays at the forefront of innovation, sustainability and safety. This can have a positive impact on
the natural environment by enabling employees to implement more sustainable practices where they
live and work.
BAM’s values (sustainable, inclusive, collaborative, reliable and ownership) form the basis of its
corporate culture. The positive impact of BAM’s corporate culture includes commitment to living
these values in its daily practice, to ethical and sustainable business practices, and enhanced
reputation.
Working in the construction sector in general has a negative impact on occupational health and
safety; evidenced by the existence of work-related injuries resulting in death, days away from work,
transfer to another job for those working for BAM and work on locations managed by BAM (such as
building sites). Working in the construction industry can expose workers to a variety of hazards that
can cause long-term health effects.
Disclosures are related to the following material impacts, risks and opportunities as identified through
BAM’s double materiality assessment process, refer to full details in chapter 6.1.
54 S1 Own workforce
Material impact, risk or opportunity
Equal treatment and opportunities
Diversity (OE)
Positive impact
Return on inclusion (OE)
Positive impact
Training and skills development (OE)
Positive impact
Occupational health and safety
Occupational health and safety (OW) Negative impact
Work related ill health long term effect (OE) Negative impact
The disclosures in this section should be read in conjunction with the disclosures in
chapter 6.2 on
Governance, Strategy and Impact, risk and opportunity management. Further disclosures
incorporated by reference are:
Disclosure requirement Reference to other chapters in the 2024 Annual report
ESRS Standards: General disclosure (ESRS 2)
SBM-3
Description of the key elements of the strategy that relate to or impact sustainability
matters, as well as a description of the key elements of the business model and value
chain: BAM strategy on page 10 in chapter 2.1 About BAM.
Resilience of BAM’s strategy and business model regarding its capacity to address its
impacts, risks and opportunities: BAM strategy on page 11 in chapter 2.2 Strategy.
Interests and views of stakeholders (SBM-2)
BAM’s own workforce is a key group of affected stakeholders. BAM integrates the interests, views,
and rights of its employees into its strategy and business model by maintaining structured employee
engagement channels, regular surveys, and feedback sessions.
BAM actively involves its own employees in strategy setting and for example risks assessment
processes. Through BAM’s Works Councils, having representatives across the business, BAM involves
its own employees in discussions about organisational changes and other employee-related matters.
6.4 Social information
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Material impacts, risks and opportunities and the interaction with the strategy and business model (SBM-3)
All material impacts with regard to the own workforce (refer to
table 58 and
chapter 6.1) are
closely connected to BAM’s strategy and business model, for example the impacts related to
occupational health and safety and training and skills development. The defined strategy, policies
and underlying actions and measures are designed to manage and inform management on the
progress and results are taken into account when adapting the business model.
Any impacts on BAM own workforce that arise from transition plans for reducing negative impacts on
the environment and achieving greener and climate-neutral operations are not considered material,
although there are opportunities arising from job creation and reskilling and upskilling, for example
in further developing BAM’s timber housing concept.
Policies related to own workforce (S1-1)
BAM’s policies to manage its material impacts on BAM’s own workforce are aiming to identify, assess,
manage and/or remediate the negative impacts and contribute to increase the positive impacts.
BAM’s diversity and inclusion policy states that it will create a truly inclusive culture which is mirrored
throughout all aspects of its business, infrastructure, supply chain and technology. Inclusion refers to
the organisation’s ability to create a culture in which every employee feels valued and respected,
ensuring equal opportunities for employees regardless of their identity and diversity traits. Diversity
concerns all aspects and personal characteristics in which people may differ, including sex and
gender identity, age, ethnicity, disability, and sexual orientation.
BAM is committed to putting its employees’ health (including mental health) and wellbeing at the
heart of its approach and creating a psychologically safe environment for its employees to do their
best work. BAM measures the pay gap and removes any bias from its compensation and reward
strategies. BAM will not tolerate discrimination, bullying and/or harassment and encourage
employees to speak-up where this is witnessed, experienced or reported.
BAM’s health and safety policy states that it regards the health, safety and welfare of its own
workforce to be of the utmost importance, and essential to successful running of the company. BAM
will do everything in its power to comply with all relevant legislation and provide adequate finances
and time to develop the culture. Safety is also an important element in BAM’s sustainability policy,
where it is stated that unsafe behaviour needs to be addressed and unsafe working conditions to be
reported to the compliance manager or (anonymously) via the speak-up process. All safety incidents
shall be reported in line with instructions. Safety instructions are applicable for all BAM employees
and all non-employees working on a site managed by BAM.
BAM is committed to ensure that its employees have the knowledge and skills to do their best work,
and that its training provision is inclusive and accessible to all. BAM’s HR Perform & Develop policy
clarifies the process by which managers of BAM work together with employees to plan and review
their performance and development and their overall contribution to BAM’s success. The policy helps
to identify individual talents and strengths and helps employees reach their full potential. BAM wants
to ensure a fair and consistent approach to how employees are recognised and rewarded for their
team and individual contribution. BAM recognises and develops the talents of all employees in the
organisation. BAM wants to create a learning culture and growth mind set and provide opportunities
for all employees to fully develop and apply their talents.
Human rights is treated as an overarching theme, covering all topics mentioned above. The policy
specifically addresses safety, health and inclusion, and social value, outlining clear requirements. The
code of conduct describes the way BAM respects human rights and what it expects from employees
in that respect. In the diversity & inclusion policy BAM further outlines the norms and values on
diversity and inclusion.
Supported by these policies, BAM is protecting and upholding human rights to
build strong and inclusive communities. BAM has strengthened the approach on this topic with a group
wide human rights guidance.
In strengthening human rights’ policies and procedures, BAM is guided by the standards established in
the Universal Declaration of Human Rights; the Corporate Responsibility to Respect Human Rights under
the UN Guiding Principles on Business and Human Rights and the OECD Guidelines for Multinational
Enterprises. BAM also recognises and respects the ILO Declaration on Fundamental Principles and Rights
at Work, the ILO Conventions in force and the ILO Tripartite Declaration of Principles concerning
multinational enterprises and social policy (MNE declaration). BAM complies with the Minimum
Safeguards from the EU Taxonomy. BAM aligns with these standards and demonstrates it in its Code of
Conduct, Vendor Code of Conduct, human rights guideline and other underlying policies, such as its
sustainability policy and procurement policy. For Human Rights Due Diligence, BAM performed a deep
dive risk analysis on potential Human Rights Risks to understand and mitigate the human rights risks
within BAM’s own workforce and vendors (suppliers and subcontractors).
In the approach BAM focuses on efforts and actions to mitigate human rights risks in the following areas:
• Continuous assessment of human rights risks;
• Performing third party risks due diligence;
• Training and engaging BAM employees and vendors;
• Industry engagement;
• Monitoring and incidents and complaints handling.
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manager, or compliance officer, or via the speak-up process. Workers are protected against reprisals
because reports can be made to the compliance officer outside the project team or anonymously (if
desired) via the speak-up process. Following the code of conduct, retaliation – whether direct or
indirect – against employees who raise a concern may result in disciplinary action up to and including
dismissal.
Action taking on material impacts on own workforce, approaches to managing material risks and effectiveness
of those actions (S1-4)
In 2024, BAM launched the BAM Experience (see chapter 2.2), aimed at offering all its employees an
attractive employee experience that is tailored to their needs. Dedicated centers of excellence are working
on a daily basis on delivering the BAM Experience. These centers of excellence cover the areas of talent
acquisition, talent management and learning, diversity and inclusion and compensation and benefits.
Progress and actions taken in these areas in 2024 include, but are not limited to, implementation of
strategic workforce planning, continued focus on inclusive recruitment, performance of pay gap
analysis, reshape of BAM’s Perform & Develop process and refinement of the engagement suvey set-up.
The initiatives that will be focused on next year include, but are not limited to, continuing
implementation of strategic workforce planning, stimulating internal mobility, managing attrition,
driving conscious leadership and enhancing the embedding of values in the organisation.
The effectiveness of these initiatives is assessed and tracked via the quarterly employee engagement
survey (see S1-2) and the strategic people metrics (see S1-5).
Targets related to managing material negative impacts and advancing positive impacts (S1-5)
BAM has defined strategic people metrics to manage its material impacts on BAM’s own workforce.
Several metrics, such as turnover, absenteeism and action taking, are tracked internally with no specific
targets. These metrics are forecasted based on trends, to gain insight in the effectiveness of actions
taken, and to ensure BAM remains within expected parameters and can identify when it goes out of the
normal. These metrics are reported to the Executive Committee on a quarterly basis in the
management report. The targeted metric is female representation in senior leadership (see also
chapter 3.2). This target is adjusted on a yearly basis, based on the performance in the previous year.
While BAM acknowledges the absence of a specific health and safety target, BAM’s ambition remains to
prevent all incidents and to further reduce the incident frequency rate. BAM also lacks a target on
gender pay gap, as the 2024 focus was to establish a baseline value for this metric first.
Characteristics of the BAM’s employees (S1-6)
Insights in the general characteristics of the employees in BAM’s own workforce provides contextual
information that aids an understanding of the information reporting in other disclosures in this
Human rights risk is part of the regulatory compliance area of BAM’s risk management process. A risk
assessment was conducted and further defined in the divisions with the aim to understand the human
rights risks within BAM’s own workforce and vendors (consisting of subcontractors and suppliers) and to
determine necessary mitigating measures. The risk assessment confirmed existing insights and no new
risks were identified. In 2024, human rights risk approach concentrated on identifying specific risks and
implement corresponding controls. All controls have been deemed effective. This initiative marks the next
step towards embedding human rights considerations into BAM’s risk management process.
Processes for engaging with own workforce and workers’ representatives about impacts (S1-2)
Under the responsibility of the CHRO, BAM conducts a quarterly engagement survey amongst its own
employees. Managers have access to the anonymised scores and feedback from their team, and are
encouraged to discuss the results and take action with their team to address the concerns or
opportunities that are raised. The results of the survey are reported to the Executive Committee on a
quarterly basis. Scores are compared to previous surveys and to external benchmarks to measure
effectiveness of the actions being taken. Informal interactions do take place between non-employees and
project managers at sites, for example about occupational health and safety impacts.
Processes to remediate negative impacts and channels for own workforce to raise concerns (S1-3)
The Speak Up procedure of BAM describes how the workforce and other stakeholders can raise their
concerns, and describes the process of how reports will be addressed. There is also and external
Speak Up service, at
www.speakupfeedback.eu/web/bam. This is available 24 hours a day, seven
days a week. BAM has an official investigation procedure in place that describes if and how reported
incidents will be investigated and followed up. Although BAM does not systematically assesses
awareness and trust in these mechanisms, awareness about BAM’s SpeakUp process is raised and
people are invited to voice concerns.
The same procedure applies for specific negative impacts on for safety, in addition to the official
safety incident registration procedure. BAM has standards across the business for reporting of
incidents, investigation procedures and instructions, depending on the nature of the incident. For
example, memberships of investigation teams are dependent on the severity of the incident, but
consist of at the minimum a health and safety professional. Depending on the nature of the incident
specialist assistance can be sought by the investigating team. This can be internal or external.
Communication, corrective actions and prevention of recurrence of significant incidents are the
responsibility of BAM’s directors of Occupational Health and Safety.
BAM’s code of conduct calls for BAM’s workforce to never put health and safety aside to get the job
done and to stop an activity that is unsafe or can result in an unsafe situation. Employees, non-
employees and other (external) parties can report environmental, health, and safety issues to the line
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chapter. It assists in providing insight into BAM’s approach to employment, including the scope
and nature of impacts arising from BAM’s employment practices. BAM recognises the importance
of extending its strategy to its workforce and knows that data optimisation is required to do so
effectively. The data presented in this chapter is used to further steer on the social performance
of BAM.
The total number of employees is 13,771 as per 31 December 2024. The geographic distribution of
employees is included in table 55. Breakdown by genders is provided as part of BAM’s diversity
disclosures in table 59. The breakdown by contract type (i.e., permanent versus temporary
employees is provided in table 57. The information reported in tables 55, 56 and 57 are
correlated to the personnel expenses as reported in note 7 the financial statements on page 146.
BAM’s own workforce is including both people who are in an employment relationship with the undertaking
(‘employees’) and non-employees who are either people with contracts with BAM to supply labour and people
provided by subcontractors primarily engaged in employment activities. The last category also includes all
workers on BAM-led construction sites. The information disclosed with regard to non-employees is not affecting
their status pursuant to applicable labour law. The disclosures do not cover other workers in the value chain.
Own employees are active BAM employees with an employment relationship. A BAM employment contract is
defined as an employment agreement with a BAM subsidiary , for example:
• Regular employees (operative hourly, operative salaried, staff salaried, staff hourly)
• Trainees (including apprentices, graduates)
• Persons on Global Assignment to other BAM entities (home record)
Non-employees are personnel working for a BAM subsidiary or joint arrangement and directly supervised by
BAM but not under a BAM employment contract , for example:
• Student (Internship)
• Contingent Workers, such as individuals leased from agencies (agency workers) , self-employed persons
(independent contractors)
• Subcontractors supervised by BAM
BAM has scoped its reporting boundaries related to the own workforce to the extent the subcontractors are
working on a BAM managed site (directly supervised by BAM), subcontractors working for BAM’s joint operation
or joint venture partners are not taken into account for the reporting in own workforce.
Reporting principles and assumptions - own workforce
Tier-N vendors and non-contracted individuals (i.e., site inspectors) are not part of BAM’s own workforce.
Members of the public, e.g. visitors, bystanders and other road users, are thirds and not included in the
reported numbers, unless explicitely mentioned.
BAM uses a single cross-divisional core HR system that supports most HR processes and reports using
standardised data. In addition, BAM has implemented a reporting solution that offers internationally used
standard metrics and allows multiple data sources to be integrated for strategic HR reporting and people
analytics. Concerning the information provided in this chapter, percentages are calculated based on
headcount, and the absolute numbers given represent headcount unless explicitly stated otherwise.
Numbers for employee-related disclosure requirements are derived from this system.
In BAM’s definition of senior leadership group, non-employees in a management role in Belgium are
included, despite the fact that these people are not having a employment contract as described above.
The senior leadership group is defined as all employees in senior job grades, referred to as grade F, G and H
in BAM’s salary framework.
Numbers reported for non-employees are derived from the calculations used for reporting hours worked
in relation to safety performance. This includes assumptions and estimates, refer to the accounting
principles for safety worked hours on
page 108 for further details.
55 Own employees (in headcount, as per 31 December 2024)
2023 2024
Division Netherlands 6,848 6,819
Division United Kingdom and Ireland 6,742 6,654
Other
307 298
Total 13,897 13,771
56 Employee turnover
2023 2024
Number of leavers 2,132 2,123
Turnover rate (%) 15.7 15.5
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57 Contract types by gender
(in %)
2024
Division
Netherlands
Division United
Kingdom and
Ireland
Other*
Total
Permanent 95 94 93 95
Female 16 25 26 20
Non-female 79 69 67 74
Temporary 5 1 7 3
Female 1 0 4 1
Non-female 3 1 3 2
Non-guaranteed hours 0 2 0 1
Female 0 1 0 0
Non-female 0 1 0 0
Other 1 3 0 2
Female 0 1 0 0
Non-female
1 2 0 1
Totals 100 100 100 100
2023
Permanent 94 94 93 94
Female 15 24 26 20
Non-female 79 70 67 74
Temporary 4 1 7 3
Female 1 1 3 1
Non-female 3 1 5 2
Non-guaranteed hours 0 2 0 1
Female 0 1 0 0
Non-female 0 1 0 1
Other 2 3 0 2
Female 0 1 0 0
Non-female
2 2 0 2
Totals 100 100 100 100
Any column where the percentages seem not to add up to 100% is due to rounding of numbers.
Characteristics of BAM’s non-employees (S1-7)
BAM relies for a large part of its construction activities on non-employees as part of the workforce.
Subcontracted work (including material purchase) represents around 70% of BAM’s cost base. Also
refer to details in the financial statements on page 132.
As per 31 December 2024 BAM’s own workforce consisted of 67% non-employees, being a total of
27,919.
58
Own workforce including non-employees
(in headcount, as per 31 December 2024)
Employees Non-employees Own workforce
Division Netherlands 6,819 11,446 18,265
Division United Kingdom and Ireland 6,654 16,164 22,818
Other 298 309 607
Total 13,771 27,919 41,.690
Diversity metrics (S1-9)
BAM strongly believes that different backgrounds, cultures and experiences enhance the business,
drive innovation and lead to sustainable growth. Gender diversity at all levels is one driver of this.
In 2024, female representation grew to 22% across the Group. In the division Netherlands female
representation was 17%, in the division United Kingdom and Ireland representation was 27%.
59
Distribution of employees
(in %)
2023 2024
Female Non-female Female Non-female
Division Netherlands 16 84 17 83
Division United Kingdom and Ireland 26 74 27 73
Other
28 72 30 70
Total 21 79 22 78
Gender categories were chosen as female and non-female, in line with BAM’s ambitions for female representation in the
workforce and to avoid the risk of singling out employees who are non-binary or do not have their gender recorded.
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61 Incident reporting
2023 2024
Company specific metrics - Incident Frequency (IF)
IF BAM (own employees)
(x 1 million worked hours)
2.8* 2.9
IF Total (own workforce, including non-employees)
(x 1 million worked hours)
2.6 2.9
ESRS S1-14 metrics
Number of lost lives as a result of work-related injuries (own workforce) 1 2
Number of recordable work-related accidents (own workforce) - with lost time 191 215
Number of recordable work-related accidents (own workforce) - without lost time 13 11
Rate of recordable work-related accidents (own workforce) - with and without lost time
(x 1 million worked hours)
2.8 3.1
Number of days lost to work-related injuries and lost lives from work-related accidents
(own employees)
2.366 2.117
Coverage health and safety management system
(in %)
100 100
*
2023 information on IF BAM has been adjusted to include office employees in the definition in line with ESRS S1-14.
Working in the construction industry can also expose workers to a variety of hazards that can cause
long-term health effects. BAM characterises ill-health as mental and physical health issues that do not
stem from an acute event, such as a work-related accident leading to injury. These health complaints
typically manifest after a prolonged exposure to an agent or emerge over an extended period, as
seen in diseases that may surface years after exposure.
The representation of women on the Supervisory Board stands at 43%, the Executive Committee
at 40% and the Senior Leadership Group at 16% (representing 23 female senior leaders). For the
definition of the Senior Leadership Group, reference is made to page 20 in
chapter 3.2.
60
Representation in management
(in %)
2023 2024
Female Non-female Female Non-female
Supervisory Board 33 67 43 57
Executive Committee 20 80 40 60
Senior Leadership Group 15 85 16 84
Initiatives taken to drive gender diversity at all levels include a continued focus on inclusive recruitment
resulting in 3% more females joining BAM since 2021 and inclusive development resulting in 4% more
females in manager positions. For gender representation to increase in senior leadership levels, BAM also
continues to focus on initiatives to retain all talent – this is achieved through the BAM Experience and
increasing BAM’s inclusive culture. Now, and in the future, BAM anticipates this development to increase
the number of women in succession planning and senior roles.
Occupational health and safety metrics (S1-14)
BAM is measuring safety performance by a combination of lagging and leading indicators, with
increasing emphasis on monitoring, preventative actions and behaviours.
Skills, training, leadership
awareness and a proactive safety culture are key in ensuring greater engagement and safer worksites.
BAM measures and monitors safety performance through the incident frequency and the number of
incidents with the intent of continuous improvement. Incident frequency denotes the number of
occupational accidents resulting in lost time (absence from work ≥1 day) per million hours worked.
BAM measures incident frequency for its own employees (IF BAM) and for its own workforce, i.e. own
employees plus subcontractors (IF Total). These metrics are company specific and are based on
industry practice to not included no lost time incidents in the calculation of IF. In addition BAM
discloses the safety information as required by ESRS S1-14, refer to table 61.
BAM seeks to secure the highest standards of health and safety, irrespective of the standards
imposed by any legal framework. All subsidiaries of BAM comply with the ISO 45001:2018 standard
for occupational health and safety management systems. All employees and non-employees in BAM’s
own workforce are covered by the BAM’s safety management system.
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Reporting principles and assumptions - safety
Safety performance at BAM is measured using the company specific incident frequency (IF)
indicator. The IF indicator denotes the number of work-related injuries resulting in lost time (absence
from work ≥ 1 day) per million hours worked, independent of the severity of the injury.
The overall incident frequency (IF) indicator comprises two categories:
• IF BAM: Incident frequency for BAM employees on BAM sites;
• IF Total: Incident frequency including non-employees, i.e. all people working on sites managed by
BAM (BAM employees, self-employed people and subcontractors’ employees).
In addition BAM is reporting on the S1-14 required metrics, which are metrics related to the number
of recordable work-related accidents with lost time and without lost time. The latter is not part of
the company specific calculations BAM uses for IF BAM and IF Total. The definitions in ESRS S1-14
result in the calculation of the rate of recordable work-related accidents (own workforce) including
incidents with and without lost time. BAM also reports the number of days lost to work-related
injuries and lost lives from work-related accidents for its own employees.
Reportable injuries are based on actual occurrences and are never extrapolated or estimated. Despite
all measures and an open safety culture, there is an inherent risk of incomplete incident reporting. BAM
is in this respect also dependent on information provided by subcontractors and the person involved in
the incident. Work-related incidents and hazardous situations are reported via the incident reporting
processes in the business, including high-potential near-misses and dangerous occurrences.
The worked hours used in the IF calculation are measured, calculated or estimated. Division United
Kingdom and Ireland collects the hours of non-BAM employees in three ways: (1) data collected from
pass used to enter and exit construction site, (2) hours indicated by the subcontractor, (3) headcount by
e.g. project lead on project site. Where necessary, the assumption is made that a workday is 8 or 9
exposure hours. In division Netherlands own employees and hired individuals write their worked hours
in BAM’s systems. Some of the hours can be calculated based on spend, where a set fee is paid for e.g.
machine with operator. Hours of other non-BAM employees working for division Netherlands are
determined based on the amount that is transfered to the ‘G-rekening’ per estimated hour worked.
Worked hours relate to the calendar year 2024, with the exception that a part of the business uses
the timeframe from 25 December 2023 until 24 December 2024.
This topic emerged as a potential material negative impact under the sustainability matter of
occupational health and safety through BAM’s materiality analysis. Information related to this metric
is currently still unavailable. Present challenges in the reporting involve distinguishing between
work-related injuries and ill-health, as well as differentiating between work-related and non-work-
related ill health. Hence, the number of recordable work-related ill health cases are not reported on in
2024, with reference to the transitional provision under ESRS 1 Appendix C: List of phased-in
Disclosure Requirements.
BAM omits the data points related to cases of work-related ill-health and on number of days lost due
to ill-health for the first year of preparation of the sustainability statement. BAM intents to report
these numbers in next year's report, subject to legal restriction on the collection of specific data.
Remuneration metrics (pay gap and total remuneration) (S1-16)
Driving diversity and inclusion is at the core of BAM’s reward practices. BAM aims to enhance
transparency of terms and conditions and address any pay gap that may exist for equal work type and
level. BAM has calculated the adjusted pay gap between female and non-female employees for the
first time in 2024. This pay gap is defined as the difference of average and median pay levels between
female and non-female employees, expressed as percentage of the average pay level of non-female
employees. G
ender categories are female and non-female, in line with BAM’s ambitions for female
representation in the workforce and to avoid the risk of singling out employees who are non-binary or do
not have their gender recorded.
62
Gender pay gap
(in %)
2024
Based on average pay levels 19
Based on median pay levels 17
The average pay of female employees is 19% less than the average pay of non-female employees.
Calculations using a median instead of average show a pay gap of 17%. Initial insights show that this
gap is largely attributable to the distribution of female and non-female employees across the
organisation. This is mainly due to the under representation of female employees in higher paid roles,
as also reflected in the female representation in senior leadership (
chapter 3.2).
BAM is working on a harmonised job grading framework to gain further insights. It is a key priority for
BAM’s talent management and acquisition to remedy any pay gap towards the future. In the
meantime BAM is developing reward policies and practices to prepare for the requirements of the EU
pay transparency directive that will be implemented in local law by the mid of 2026.
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Reporting principles and assumptions - gender pay gap
BAM reports on the unadjusted average and median gender pay gap between female and non-female
own employees. Own employees are active BAM employees with an employment agreement at a
majority owned BAM entity on 5 April 2024.
For this calculation, pay is operationalised as the base salary and value of the company car benefit on
5 April 2024, plus any bonus (eg. STI, LTI, profit sharing, one-off bonus) received between June 2023 and
May 2024, all recalculated to an hourly rate.
BAM has chosen this operationalisation of pay because it contains the main components of the
remuneration received by employees. Other benefits that BAM offers, whether in cash or kind, are laid
down in gender-neutral CLA or company policies. Such benefits are essentially equal for employee
categories and adding them would have no material impact.
For base salary and the value of the company car benefit, BAM makes use of a reference date instead of
using data for the full financial year. This enables timely reporting and has no material impact on the
outcome. All data has been extracted from BAM’s HR and payroll systems and the data of 98.5% of
BAM employees is included in the calculation.
Return on inclusion (entity-specific)
BAM measures the impact of its diversity and inclusion initiatives by means of the Return on Inclusion
audit related to 20 key focus areas, performed by an external independent party. BAM has set a target
score of 71 (Gold) or higher by 2030 and is performing interim assessments to measure its progress
towards achieving the target.
Return on Investment with diversity and inclusion is expressed in an
audit score and/or a current return in euro per euro invested in diversity and inclusion. The scores of
the ROI audit can be categorised as follows: 1. Diamond (90+) - exemplar; 2. Platinum (81-90) - leader;
3. Gold (71-80) - champion; 4. Silver (51-70) - aspiring; 5. Bronze (0-50) - starting out.
The next assessment is taking place in 2026 and hence BAM has focused in 2024 on embedding the
recommendations from the previous assessment in 2023 (score: 55). The recommendations that were
adopted over the reporting period include further embedding diversity and inclusion in the organisation,
spanning HR activities in recruitment, leadership development and training, and procurement and IT.
BAM is further developing its inclusion networks and building a group-wide diversity and inclusion
dashboard to better understand the trends in data which inform the diversity and inclusion strategy.
Social value (ESRS S3 - entity-specific)
Social value in the construction sector refers to the positive impact projects have on communities, the
environment, and the economy beyond just the physical build. It includes job creation, skills development,
sustainability, and community well-being. By prioritising local employment, fair labour practices, and
eco-friendly construction, companies can enhance social equity and long-term societal benefits.
Disclosures are related to the following material impacts, risks and opportunities as identified through
BAM’s double materiality assessment process, refer to full details in
chapter 6.1.
63
S3 Affected communities
Material impact, risk or opportunity
Social value
Social value (VC)
Positive impact
The disclosures in this section should be read in conjunction with the disclosures in
chapter 6.2
on Governance, Strategy and Impact, risk and opportunity management.
Interests and views of stakeholders (SBM-2)
Affected communities are a key group of affected stakeholders. BAM addresses the interest and views of
affected communities by its local community engagement on projects. Social value relates to the overall
positive impacts BAM can have on affected communities. BAM’s strategy setting on social value is informed
by the perspectives of BAM’s clients, in which interests and views of local communities are often
incorporated.
Material impact, risks and opportunities and the interaction with the strategy and business model (SBM-3)
The material impact regarding social value is closely connected to BAM’s strategy and business model.
BAM’s strategy encompasses the theme social value. The policies and underlying actions and
measures are designed to manage and inform management on the progress and results are taken into
account when adapting the business model.
Policies related to social value (S3-1)
Social value is one of the topics in BAM’s sustainability strategy and is explicitly mentioned in BAM’s
Group Sustainability Policy. The following responsibilities are described:
•
Commit to making a positive social contribution and acknowledge BAM’s responsibility to engage
with the communities in which it works (for example using local agencies, labour and workforce).
•
Tackle social issues identified by clients, employees and local communities.
These responsibilities are in more detail described in BAM’s social value policies for the UK and for NL,
including more specific commitments to local aspects.
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Processes for engaging with affected communities about impacts (S3-2)
BAM engages with affected communities on a project level through its general project approach that
includes local community engagement. In most cases, the project manager or a dedicated social
value manager is responsible for ensuring this engagement happens. Engagement with affected
communities also often occurs by or in collaboration with the client. Social value addresses the
positive impact BAM can have on affected communities and BAM’s approach is informed by local
obligations (see S3-5).
Taking action on material impacts on affected communities regarding social value (S3-4)
BAM takes various actions to positively impact the communities where it operates. These actions are
carried out directly by BAM and in collaboration with supply chain partners, both ahead of and during
the construction phase and in the legacy left by the completed projects. To achieve this, each division
follows a social value approach, which is detailed under Metrics and Targets (S3-5). The specific
approach is usually guided by a type of Local Needs Analysis and/or client requirements, identifying
particular priorities of the affected community. Additionally, BAM is part of the Considerate
Constructors Scheme (CCS) in the United Kingdom and its Dutch equivalent Bewuste Bouwers. In this
scheme, construction sites implement the Code of Considerate Practice, which includes behaviours
for respecting the community, caring for the environment and valuing the workforce. In the United
Kingdom, 53 CCS projects were registered in 2024 (2023: 58) with an average audit score of 43.7
(2023: 43.7), above the industry average of 40.7. Under the scheme in the Netherlands 69 sites were
registered (2023: 66) and the average audit score in 2024 was 7.4 (2023: 7.3), right at the industry
average.
Targets related to advancing positive impacts (S3-5)
Social value has a strong legislative basis in public contracts with significant differences in
methodology. Hence separate metrics and targets were set in BAM’s strategy for division Netherlands
and division United Kingdom and Ireland. Social value contributions through BAM’s projects and
other activities are currently not defined for the Belgium part of the business.
Division Netherlands
Dutch projects for public sector clients often contain an SROI (Social Return on Investment)
obligation, with an emphasis on supporting people with a distance to the labour market to jobs. The
exact obligations vary, but are commonly 2-5% of the contract sum to be invested on activities that
contribute to this theme. Activities include jobs, education and training, procurement from social
businesses, school visits, donations and volunteering. The attributed value for each activity varies as
this is determined by the policies of the client. The aim for the division Netherlands is to deliver 5%
social value on top of contractual obligations in 2026. In 2024 a divisional framework for social value
(reporting) is being developed. Activities known to generate social value are currently all used to fulfil
contractual SROI obligations in public sector contracts. BAM reports no additional social value on top
of these contractual obligations in 2024 yet.
Division United Kingdom and Ireland
In the UK, social value is firmly embedded in legislation through the social value Act, PPN 06/20, the
Procurement Reform Act (Scotland), and the Future Generation Act (Wales). Governments are
actively encouraging public sector investments to maximise social impact by mandating social value
reporting. The division United Kingdom and Ireland does this through reporting on Social and Local
Economic Value (SLEV), calculated through the BAM TOMs, a framework based on the national TOMs
(Themes, Outcomes, Measures) framework.
Social value is how BAM measures social sustainability activities, and is underpinned by three key
strategic themes:
• Social Mobility: empowering individuals by providing inclusive and accessible pathways in
education, employment, and training programmes.
• Foundational Economy: building community wealth through maximising opportunity for local
procurement, invest in local charities and social businesses (VCSEs), and volunteering time, skills
and expertise.
•
Social Inclusion: fostering diversity, equity, and inclusion (EDI), actively engaging with the community,
and creating lasting legacies that benefit the community long after construction is complete.
For each of these themes,
a set of TOMs (Themes, Outcomes and Measures) further defines the
activities delivered.
Activities within this framework are logged at project level in the Social
Sustainability Reporting Tool, accumulating to the total divisional SLEV performance.
BAM defined a social value target for division United Kingdom and Ireland based on the national
TOMs framework. The target for 2026 is to deliver 35% social value (expressed as SLEV - Social and
Local Economic Value) as a percentage of the reported revenue. A target value of 35% was selected as
it was considered the right balance between ambition and feasibility by internal experts.
In 2024, the SLEV reported in division United Kingdom and Ireland was 15.6% and supported by data
in 11 out of 13 BAM TOMs. For 2025 and onwards, BAM aims to report on all BAM TOMs for all
projects. The 15.6% is well below the value of the 2026 target. By including the last two BAM TOMs
BAM expects to move closer towards the target, but BAM also acknowledges that it has to step up its
social value efforts to make sure the 2026 target will be met.
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Reporting principles and assumptions social value
Division United Kingdom and Ireland
BAM has selected 13 core measures (NTs – National TOMs) from the national TOMs framework that best
reflect BAM’s social value delivery across the project portfolio. Underneath NT1 (local employment), there
are 9 sub-measures covering additional characteristics of vulnerable employees (e.g. ex-offenders, long
term unemployed, disabled, etc.).
These core measures and sub-measures were selected from the full list of national TOMs, to bring focus
to BAM’s social value delivery and reporting. These are the measures that are most commonly valued by
clients and/or where BAM has specific skills and capacity. The proxy value attributed to each TOM is a
national proxy value that is used across the division.
Theme NT Description Proxy Value (€) Units
Social Mobility
Employment
NT01
Local employees hired or retained on contract – FTE (Full Time Equivalent)
36,975 No. people FTE
NT11
Hours of ‘support into work’ assistance provided to unemployed people through
career mentoring, including mock interviews, CV advice and careers guidance
125 No. hours * No. attendees
Education NT08
Staff hours spent on local school & college visits
20 No. staff hours
Training
NT09
Weeks of training opportunities on the contract
376 No. weeks
NT10
Weeks of apprenticeships or T-levels on the contract
298
No. weeks
NT12 Weeks of meaningful work placements / pre-employment courses (1-6 weeks, unpaid) 230 No. weeks
NT13 Weeks of meaningful work placements (6+ weeks, paid real living wage) 410 No. weeks
Theme NT Description Proxy Value (€) Units
Foundational
Economy
Investment in VCSEs NT14
Total amount spent with Voluntary, Community & Social Enterprises (VCSEs)
within supply chain
0.14 Spend (euro)
Progressive procurement NT18
Total amount spent in the local supply chain through the contract
0.89 Spend (euro)
Volunteering
NT15
Provision of expert business advice to VCSEs & MSMEs
(e.g. financial advice / legal advice / HR advice / HSE)
119 No. staff expert hours
NT29
Hours of volunteering time provided to support local community projects
20 No. of staff volunteering hours
Theme NT Description Proxy Value (€) Units
Social Inclusion
Community Engagement NT28 Donations or in-kind contributions to local community projects 1 Spend (euro)
Diversity & inclusion NT21 Equality, diversity & inclusion training for staff & supply chain 119 No. hours (total session
duration) * No. attendees
Business conduct policies and corporate culture (G1-1)
The BAM Code of Conduct and underlying procedures describe the expected behaviours and it deals
with varying subjects such as the BAM values, safety, human rights, preventing bribery & corruption,
protection of data and respecting privacy. It applies to all BAM employees, including contract and
temporary workers. Living the Code of Conduct contributes to a safe, ethical and sustainable culture and
protects the future of BAM.
The Code emphasises acting with integrity and honesty, complying with legislation, regulations, and
generally accepted social standards. The BAM Code of Conduct subjects are part of the risk management
process (including a compliance risk assessment), training and awareness, monitoring and reporting. New
employees must sign a statement in which they acknowledge to comply with this code as part of their
employment contract. Further information on how BAM interacts with its employees is disclosed in
table 34.
In BAM’s anti-bribery and corruption policy is stated that BAM does not tolerate bribery and corruption in
line with law, regulation and the BAM Code of Conduct. It includes the key anti-bribery and corruption
principles that all employees and any other representatives of BAM need to adhere to, and that business
must be conducted honestly. Engaging in bribery or corruption, even indirectly or through third parties,
may lead to dismissal, end of a business relationship, and, in addition to substantial fines and even
imprisonment.
BAM’s key principles in the privacy policy, the information security governance policy and the data
retention policy are related to the processing of personal data and the duty for employees and any other
representatives to report any (suspected) personal data breaches, the proper protection and
management of information to ensure confidentiality, integrity and availability of information.
BAM believes that communication and training are fundamental to making and keeping the Code of
Conduct alive and to encourage open conversations. BAM adopted a targeted approach for the different
working groups to achieve optimum understanding and adaptation. Therefore, an e-learning tool is used
to train selected employees on all the topics in the code. The training, available in country-specific
languages (e.g. Dutch and English), is mandatory for BAM employees, excluding the BAM site employees
without access to online learning platforms. The mandatory group covers roughly 70% of the total
number of employees.
Progress is closely monitored and reported to management. BAM targets a 95% completion score for its
training, to allow for fluctuations due to new starters. BAM’s site employees without access to online
learning platforms, are trained through so-called toolbox meetings. Additionally, compliance officers
provide target group specific training sessions to educate on specific compliance themes.
Business conduct (ESRS G1)
Business conduct and business conduct matters relate to BAM’s business ethics and the relationships
BAM has with its stakeholders, especially own workforce (including subcontractors) and vendors
(subcontractors and suppliers).
Disclosures are related to the following material impacts, risks and opportunities as identified through
BAM’s double materiality assessment process, refer to full details in chapter 6.1.
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G1 Governance
Material impact, risk or opportunity
Governance – business conduct
Corporate culture (OE)
Positive impact
Protection of data and respecting privacy (OO)
Negative impact
Prevention and detection of corruption and bribery (OO)
Negative impact
The disclosures on this sections should be read in conjunction with the disclosures in chapter 6.2 on
Governance, Strategy and Impact, risk and opportunity management.
Description of the processes to identify and assess material impacts, risks and opportunities (IRO-1)
BAM identifies material impacts, risks, and opportunities related to business conduct matters by
evaluating criteria such as location, activity, sector, and the structure of transactions, with particular
attention to local laws and regulations in the division Netherlands and the United Kingdom and
Ireland. By considering these criteria, including compliance with local laws, BAM effectively manages
risks and capitalizes on opportunities aligned with its strategic objectives.
The role of the administrative, supervisory and management bodies (GOV-1)
The Ethics and Compliance Committee supports the Executive Committee and the divisions with the
compliance programme, actual compliance matters and remedial actions. It ensures consistency
across the Group. Reported suspicions of misconduct are discussed on a quarterly basis with the
Executive Committee and every six months with the Audit Committee of the Supervisory Board. On a
yearly basis, the effectiveness of the management approach is assessed and improvement activities
are captured in the operating plan. The procedures described in this paragraph apply to all of the
themes relevant for the business conduct matters discussed in this chapter.
The administrative, management, and supervisory bodies are engaged with BAM for several years
and possess expertise in business conduct matters, drawing from diverse backgrounds in human
resources, operations, finance, and engineering.
6.5 Governance information
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Vendors are subject to BAM’s general purchasing terms and conditions and BAM’s Vendor Code of
Conduct, which cover commitments to safety, human rights, sanctions and trade restrictions and
the environment.
Procurement secures continuous alignment on selected categories, systems, reporting and
knowledge exchange. In 2024 the divisions improved their vendor onboarding processes and are
further enhancing safety and sustainability in their vendor onboarding and selection processes.
Sustainable sourcing and safety in the supply chain remain key topics in the coming years to
contribute to the BAM strategy.
BAM focuses on key and preferred vendors to strengthen and monitor quality and compliance in the
chain of subcontractors and suppliers. BAM uses onboarding for vendors. They are assessed on their
compliance with BAM requirements. Depending on the specific nature of provided services by potential
higher risk vendors, additional risk mitigating measures have been taken, such as specific certifications,
which are audited by external parties. Additionally in 2024, there were two potential new vendors
located in a higher-risk area for which a site review was conducted with regard to human rights.
Prevention and detection of corruption and bribery (G1-3)
Undetected corruption and bribery can cause serious damage to society, including damaging public
trust and causing injustice through advantaging some at the expense of others. Compliance risk
assessments are conducted as part of BAM’s risk management process. Overarching, BAM obtains its
main revenue in countries with a low or very low risk of corruption based on the Corruption Perception
Index (CPI) from Transparency International. This index focuses on the strict application of the United
Nations Convention Against Corruption (UNCAC). Furthermore, there are quarterly risk assessments
on compliance risk developments and the assessment of its measures to ensure a match with the very
low risk appetite for corruption and bribery risks. The results are reported to the Executive Committee
and other stakeholders on a quarterly basis. In case of an investigation the investigators or
investigating committee is separate from the chain of management involved in the matter.
Certain functions are more vulnerable to corruption and bribery risks, such as (commercial)
management, project management, finance and procurement related functions and includes the
members of the Executive Committee. This specific targeted group for the corruption and bribery
e-learning covers around 40% of the total number of employees. BAM adopted a specific, in-depth
e-learning on prevention of corruption and bribery for all these functions. This training includes
components like legal frameworks, risk management, ethical decision-making, third-party
management, reporting and whistleblowing. BAM has a formal learning platform where these
mandatory trainings are pushed through, linked to BAM’s HR data platform.
65 Training
(in %)
Target 2024 2023
Coverage - Code of conduct e-learning 95 97 94
Coverage - Corruption and bribery e-learning* 95 96 *
Coverage - Data privacy and protection e-learning 95 98 96
* Data for 2023 is not reported because the training is only available in the current format from 2024 onwards.
In 2024, there were 148 suspicions of misconduct reported. The reported suspicions of misconduct
have been assessed and, where needed, sanctions have been taken, up to and including dismissal.
Reported cases dealt with issues such as inappropriate use of company assets, safe working
environment and privacy breaches of which a limited number needed to be reported to the external
local privacy authorities. There have not been any fines, penalties or compensation for damages
regarding the suspicions of misconduct reported in 2024.
Fostering a speak up culture, in which employees feel empowered to talk about any issue without
fear of negative consequences, is essential for BAM. The Speak Up procedure, which is also
summarised in the Code of Conduct, encourages the reporting of possible breaches which can be
done in independent and protected systems for employees and offers protection for those who speak
up. These systems ensure confidentiality and impartial handling of complaints.
Furthermore, the procedure also includes the requirements of the (EU) Whistleblower Directive. The
periodic employee pulse survey showed that the majority of employees feels free to express concerns
without fear of negative consequences.
Work to promote awareness of the Speak Up option is a key theme in the compliance programme.
Those who wish to report a concern or incident can report directly to a line manager, confidential
advisor or compliance officer. People wishing to remain anonymous can use the Speak Up Line,
which is operated by a third party and open to employees and external stakeholders alike 24/7.
Cases that are identified as higher risk are reported to the Ethics and Compliance Committee.
BAM is involved in many stages of the construction value chain, from development, engineering and
construction to maintenance and operation. Vendors are essential in all this, as their knowledge,
people and other resources provide more than 70% of BAM’s revenue.
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employees up-to-date on new developments and required behaviour.
The training is mandatory for
BAM employees, including the members of the Executive Committee, excluding the BAM site employees
without access to online learning platforms. The mandatory group covers roughly 70% of the total
number of employees.
The objective is to reach around 95% completeness on an ongoing basis.
Performance for 2024 has been in line with the target, refer to
table 65. In addition, there are
specified privacy, information security and cyber security controls included in the BAM Requirements
Framework, which are being assessed on the effectiveness of its risk mitigation. A limited number of
privacy breaches needed to be reported to the external local privacy authorities. There have not been
any fines, penalties or compensation for damages during the reporting period.
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Incidents related to data protection and privacy
2024 2023
Number of convictions
0 0
Amount of fines for data breaches 0 0
BAM’s percentage of targeted employees that completed training regarding corruption and bribery
has been in line with the target, refer to
table 65. The topic corruption and bribery is also part of the
Code of Conduct and underlying policies and it is being monitored by BAM’s compliance officers.
Incidents of corruption or bribery (G1-4)
In December 2024, the Dutch Public Prosecutions Office (DPPO, Openbaar Ministerie) closed its
pending investigation into BAM International from 2022 and dismissed their suspicions. BAM
conducted its own internal review in connection with the DPPO’s investigation and identified certain
potentially irregular payments in connection with an unrelated completed project in Africa.
BAM self-reported these potentially irregular payments to the DPPO. The DPPO concluded that not all
of these payments were properly recorded in BAM International’s administration and imposed a fine
of €30,000 on BAM International through a penalty order. BAM will not appeal the penalty order.
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Incidents related to corruption or bribery
2024 2023
Number of convictions
0* 0
Amount of fines for violation of anti-corruption and anti-bribery laws € 30.000 0
* BAM asessed whether the penalty order qualifies as a conviction and concluded that a penalty order does not
constitute a conviction as there was no court decision
There have not been any other fines, penalties or compensation for damages related to corruption
and bribery in 2024. This includes the incidents involving actors in BAM’s value chain, where BAM or
its employees are directly involved.
Protection of data and respecting privacy (entity-specific)
Implementing robust data protection measures safeguards the personal data of employees and
clients. Protection of data and respecting privacy is a core element of the BAM Code of Conduct and
is part of underlying, specific policies on data privacy, information and cyber security.
BAM has dedicated Privacy and Security functions who collaboratively work together with
management to implement ‘privacy and security by design’ within the organisation, at selected
projects and in contracts with new third parties.
BAM has relevant certifications in place, such as ISO 27001 Information Security and Cyber Essentials.
Furthermore, there is a coordinated training and awareness programme to keep management and
Sustainability insight
Schiphol and BAM have started a large-scale
replacement of the climate control systems at
Pier E on the way towards a gas-free airport.
BAM will install new climate control systems in
order to sustainably heat and cool the pier
using an advanced air system.
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BAM’s housing concepts Flow
‘With advanced digital techniques and modular components,
Flow makes sustainable, fast, and affordable customisation possible
on any plot, with any desired appearance.’
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The EU taxonomy for sustainable activities, i.e. ‘green taxonomy’, is a classification system to clarify
which economic activities are environmentally sustainable, in the context of the European Green
Deal, a set of policy initiatives by the European Commission supporting the ambition of the EU to be
climate-neutral by 2050. The EU taxonomy was adopted by the European Union with Regulation
2020/852, and requires BAM to assess and disclose the percentage of environmentally sustainable
economic activities for the proportion of revenue, capital expenditures and operational expenditures.
The EU taxonomy comprises six environmental objectives to identify sustainable economic activities:
climate change mitigation (CCM), climate change adaptation (CCA), the sustainable use and protection
of water and marine resources (WTR), the transition to a circular economy (CE), pollution prevention
and control (PPC), and the protection and restoration of biodiversity and ecosystems (BIO). An
economic activity is defined as environmentally sustainable if it meets the technical screening criteria.
BAM has completed an eligibility assessment of its activities and for the eligible activities BAM
assessed alignment with the EU taxonomy.
6.6 EU taxonomy
The assessment process has been executed under the supervision of the Executive Committee, and
led by the Sustainability Reporting team with the support of the relevant functions, such as
sustainability and finance.
The assessment covers all countries in which BAM operates, and is executed using
the five steps described in figure 68.
BAM has classified all the economic activities across its portfolio in the following three categories:
eligible-aligned, eligible-not aligned, and not-eligible ( figure 69).
The current EU taxonomy assessment is based on BAM’s interpretation of EU taxonomy guidelines,
including the latest published Environmental Delegated Act. BAM recognized that the regulation is
continuously being developed, hence some elements are open to interpretation by the industry and
other parties. This will potentially affect BAM’s interpretation of the criteria going forward, and
therefore the outcomes of taxonomy eligibility and alignment.
68
Five steps of the EU taxonomy assessment
1 - Identification of eligible economic activities
2 - Analysis of substantial contribution
3 -
4 - Verification of minimum safeguards
5 - Calculation of financial metrics
Sustainability insight
BAM delivered De HER, formerly known as
Upcycle Mall, to the municipality of Rotterdam.
De HER is a unique project, realised with reused
materials and focused on reuse, upcycling,
refurbishment and repair. It marks a milestone in
delivering the circular and sustainable ambitions
of both BAM and the municipality of Rotterdam.
Assessment of Do No Significant Harm (DNSH)
to other environmental objectives
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Reporting principles and assumptions - EU taxonomy
The EU taxonomy requires companies to examine whether an economic activity is included in the Delegated
Regulation 2020/852 by the European Commission (eligibility) and whether or not these eligible economic
activities are environmentally sustainable (alignment).
BAM classifies its activities in the following three categories: eligible-aligned, eligible-not aligned, and
not-eligible.
Eligible-aligned: this refers to an economic activity that simultaneously meets the following three
conditions:
• it is explicitly included in the EU taxonomy regulation for its substantial contribution to one of the six
objectives of the EU taxonomy;
• it meets the substantial contribution criteria in the EU taxonomy regulation for this specific environmental
objective;
• it meets all DNSH criteria;
• BAM complies with the minimum safeguards.
Eligible-not aligned: this refers to an economic activity that:
• is explicitly included in the EU taxonomy regulations for its substantial contribution to one of the six
objectives of the EU taxonomy; but
• it does not meet the specific criteria in the EU taxonomy regulation for these specific environmental
objectives; or
• at least one of the DNSH conditions is not met; and/or
• BAM does not comply with the minimum safeguards.
Not eligible: this refers to an economic activity that has not (yet) been identified by the EU taxonomy as a
substantial contributor to one of the six objectives of the EU taxonomy.
Definition of KPIs
The basis for the calculation of the EU taxonomy eligibility and alignment metrics for respectively revenue,
capital expenditure and operational expenditure are based on the following definitions:
Revenue: revenues accounted for in the consolidated financial statement as further defined in note 6 of the
financial statements. Intercompany revenue is eliminated and is not taken into account for the assessment of
eligibility. Full reconciliation of the project list used for the eligibility and alignment calculation is performed to
ensure accuracy and completeness of the numbers included and prevent the risk of double counting.
Capital expenditure (capex): additions to tangible and intangible assets accounted for in the consolidated financial
statements under IFRS during the financial year, considered before depreciation, amortisation and any
re-measurements, excluding goodwill (included in note 14 and 15 in the Financial Statements). The capex cover the
costs accounted for in accordance with IAS 16 (Property, Plant and Equipment, IAS 38 (Intangible assets) and IFRS
16 (Leases). Any leases that do not result in the recognition of a right of use asset are not accounted for as capex.
Operational expenditure (opex): direct non-capitalised costs recorded in the consolidated income statement under
IFRS that relate to research and development, building renovation measures, short-term lease, maintenance and
repair (excluding expenses reported as raw materials and consumables used), and any other direct expenditure
relating to the day-to-day servicing of assets or Property, Plant and Equipment (PP&E). Because the definition
under the Delegated Act is taken into account to calculated total opex, the numbers differ from the figures
presented under the heading ‘operating expenses’ in the financial statements.
The calculation of the financial metrics associated with each economic activity was performed relying on a
centralised process, where sustainability information is mapped to financial information in a single database. The
financial information was collected from the Group’ reporting system. Sustainability information is obtained from
the CRM system and enriched with management information on the environmental performance of the economic
activities. Procedures and assumptions were documented, including details, examples and substantive evidence of
the assessment, in order to complete a reliable estimate of the eligibility and alignment assessment.
In order to arrive at the EU taxonomy KPIs, BAM mapped its financial performance to the relevant EU taxonomy
eligible and aligned economic activities.
Minimum social safeguard requirements
BAM has verified that the eligible economic activities are carried out in compliance with the minimum social
safeguards, including the human right due diligence process and risk assessment.
Revenue - eligibility methodology
The revenue KPI is calculated based on the proportion of net revenue generated from projects. Revenue of joint
ventures (as reported in note 17 of the Financial statements) is not included in the scope of the assessment.
The analysis with regard to taxonomy eligibility was carried out on data per project. The EU taxonomy provides
descriptions of eligible economic activities that belong to one of the six objectives of the EU taxonomy.
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The activities of BAM that are eligible under the EU taxonomy are all eligible under activities within the objectives
climate change mitigation, climate change adaptation, and/or the transition to a circular economy.
Revenue - alignment methodology
For the purpose of the taxonomy-alignment assessment, BAM clustered projects based on the nature of the
activity and similarity in operational and technical criteria to assess compliance with the technical screening
criteria in the EU taxonomy. Based on the BAM’s strategic focus, preliminary screening and internal identification
of potential ‘green’ revenue with different stakeholder groups, BAM selected multiple clusters for which the
alignment assessment was performed. Dependent on the granularity of the criteria, the assessments were
performed on a country, business or project level.
BAM’s alignment assessment includes the analysis of all substantial contribution criteria and DNSH criteria for the
relevant objectives. In the assessment BAM:
1. Describes the context and application in BAM’s context;
2. Substantiates and provides available documentation to support the claim on whether an activity meets the
criteria, either on a project, or on an activity level, dependent on the nature of the criteria;
3. Reaches a conclusion on the alignment based on the available substantiation;
4. Evidences adherence to the minimum safeguards on a Group-wide level.
Capex - eligibility and alignment methodology
The eligibility scan for capital expenditures in 2024 (capex additions) was performed in line with the eligibility scan
for revenue. For all expenditures, BAM determined if there was a specific allocation possible to an economic
activity. Most capex, such as (electric) equipment or cars, tower cranes, surveying equipment or cabins is
associated with multiple economic activities. Eligibility for these additions is determined based on the proportion
of the capital expenditure associated with taxonomy-eligible activities on a business level. Capital expenditure by
joint ventures (as reported in note 17 of the Financial statements) is not included in the scope of the assessment.
The capex alignment assessment is based on three possible alignment scenarios:
• Capex is related to assets or processes that are associated with taxonomy-aligned economic activities;
• Capex is part of a Capex-plan as defined in the regulation to expand taxonomy-eligible economic activities
to become taxonomy-aligned (subject to conditions);
• Capex is related to the purchase of output of aligned activities.
The aligned capex related to the first scenario has been calculated based on a pro-rata basis related to the
revenue of the aligned economic activities per business. For the assessment and disclosures in 2024, BAM has
allocated the capex to the economic activities mapped to the revenue KPI. Hence, alignment criteria applied to
capex are equal to the criteria applied for the related economic activity. For example, with respect to
investments in electric cars, BAM has assessed the alignment of capex in the context of the revenue generating
activity it was allocated to. BAM has not included specific capex plans for the capex alignment assessment of
2024, because the plans for improvements do not (yet) constitute a plan to reach alignment fully.
Part of the aligned capex is based on the third category where BAM proved alignment on the capex investment
itself and reported the invested amount as aligned capex.
Opex - eligibility and alignment methodology
The expense accounts identified to determine operational expenditures according to the EU taxonomy
definition are the following:
• Repairs and maintenance;
• Short-term leases (< 12 months);
• R&D expenses.
For repairs and maintenance, eligibility is determined on the basis of the activity description in the general
ledgers. For the annual rent expenses related to short-term leases and R&D expenses, eligibility is calculated
on a pro-rata basis related to the revenue eligibility of the activities per business.
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Conclusion of the assessment
Aligned revenue in 2024
(27%)
has increased compared to last year (2023: 21%). Mainly caused by
shifts in portfolio and improved availability of evidence. Key insights from the assessment of the
technical screening criteria have been shared within the business to further enhance BAM’s
knowledge on building sustainably.
69
Revenue, capital expenditure (capex) and operational expenditure (opex)
(in %)
(%)
€ 6,455m € 175m € 63m
Revenue Operational expenditure
(opex)
Capital expenditure
(capex)
Eligible-aligned Eligible-not aligned Not-eligible
4946
5
55
20
25
58
27
15
Revenue - eligibility outcome
In 2024, 85% of BAM’s revenue is eligible under the EU taxonomy, compared to 86% in 2023.
There are no big differences compared to last year. Details per activity are disclosed in table 72.
Project revenues reported as not-eligible include economic activities related to electrical installations
(including fibre cables for homes), data networks, airport infrastructure, earthworks, drill and blast
projects, and oil- and gas-related projects, including energy plants and gas grid transmission and
distribution networks. In line with last year, BAM reported activities such as the ground investigation
works for planned wind farms and the construction of cement bases of wind farms as not-eligible.
In 2024, BAM took further steps to improve the accuracy of data on EU taxonomy eligibility. This
didn’t lead to big shifts in eligible revenue per EU taxonomy activity.
Revenue - alignment outcome
In its alignment assessment, BAM obtained substantial evidence for meeting the relevant criteria. In
2024, BAM has aligned revenue, related to specific projects or businesses, in the following activity
categories:
• Infrastructure for rail transport (Netherlands and United Kingdom) - CCM 6.14;
• Infrastructure enabling low carbon water transport (Netherlands) - CCM 6.16;
• Infrastructure for water transport (United Kingdom) - CCA 6.16;
• Construction of new buildings (Netherlands), including both residential and non-residential
buildings - CCM 7.1;
• Renovation of existing residential buildings (Netherlands) - CCM 7.2;
• Installation, maintenance and repair of charging stations for electric vehicles in buildings
(Netherlands) - CCM 7.4;
• Installation, maintenance and repair of instruments and devices for measuring, regulation and
controlling energy performance of buildings (Netherlands) - CCM 7.5.
The largest part of BAM’s aligned revenue in 2024 is coming from the projects related to the
infrastructure for rail transport (EU taxonomy CCM 6.14) in the Netherlands and United Kingdom. This
outcome is similar to last year.
In EU taxonomy activities CCM 7.1 and CCM 7.2 BAM concluded that there are more aligned projects
in BAM Residential with the EU taxonomy compared to previous year, due to an increased number of
projects that has been assessed in 2024. BAM collects evidence of the technical screening criteria
within these categories on a project- by- project level. BAM sees the increase in the number of
assessed projects in 2024 as a positive development in order to report more sustainable revenue,
although BAM cannot yet conclude that projects are structurally more sustainably designed and
executed based on this improvement. However, BAM started to change some procedures to have
more projects aligned on EU taxonomy, which will lead to more aligned projects in the future.
In addition to the residential projects, the assessment also resulted in aligned non-residential revenue
in CCM 7.1 and CCM 7.2. The assessment results show that while many non-residential projects do
meet the requirements of the contribution criteria and most of the DNSH criteria, most do not meet
the requirements of the DNSH criteria for the sustainable use and protection of water and pollution
prevention and control. The assessment clarifies which decisions are needed to be made to meet
these technical screening criteria for these type of projects. This knowledge will be taken into account
for future decision making and therefore will support the construction of more sustainable buildings.
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BAM has aligned revenue on the activity in EU taxonomy article CCM 6.16, these are the projects that
are installing the infrastructure to provide vessels at berth with shore-side electrical power.
BAM has alignment on one project where BAM contributes to the climate objective climate change
adaptation. The project is aligned on activity CCA 6.16. This is a flood defence project in the UK with
a high focus on ecology mitigation.
The aligned revenue in CCM 7.4 and CCM 7.5 is mainly related to activities where BAM installs
charging stations for electric vehicles and smart meters in buildings.
On other activities, for example BAM’s water infrastructure and road transport activities, the
alignment criteria could not be fulfilled for most projects. Revenues in these areas are reported as
eligible-not aligned.
The substantial contribution criteria, as well as the DNSH criteria related to the sustainable use and
protection of water could not be aligned with the requirements. In order to make a substantial
contribution to climate change adaptation, BAM is required to perform a climate risk and vulnerability
assessment and to substantiate the implementation of adaptation solutions in the project that:
• Do not adversely affect the adaptation efforts or the level of resilience to physical climate risks of
other people, of nature, of cultural heritage, of assets or of other economic activities;
• Favour nature-based solutions or rely on blue or green infrastructure to the extent possible;
• Are consistent with local, sectoral, regional or national adaptation plans and strategies;
• Are monitored and measured against pre-defined indicators and whereby remedial action is
considered where those indicators are not met.
Currently BAM does not have the relevant insights and documentation for all relevant projects
regarding the implementation of adaptation solutions. As mentioned earlier, BAM has now one
project that is aligned on the criteria for climate change adaptation, which is a step forward to
contribute to this climate objective.
Capex - eligibility and alignment outcome
The proportion of capital expenditure (capex) in 2024 that is eligible-aligned is 25% (2023:
21%), 55% was eligible for, but not aligned with the EU taxonomy, and 20% of BAM’s capex in 2024 was
determined to be not eligible. Investments in 2024 that classify as aligned under the EU taxonomy
include investments in equipment regarding the construction of BAM’s aligned activities under
climate change mitigation, mainly related to the rail infrastructure activities. BAM used a pro rata
allocation to the economic activities for most capex investments, to determine eligibility and
alignment for the year 2024.
The investments related to the residential houses and the sustainable timber housing are considered
to be fully aligned under the EU taxonomy, on the basis that revenue related to these residences can
be aligned. Also the amount of investments for BAM’s own buildings are not pro rata allocated to the
economic activities, but reported on CCM 7.7 Acquisition and ownerships of buildings.
BAM assessed the investments in their own buildings on alignment. These investments are eligible
under CCM 7.7, and mostly also aligned on this EU taxonomy activity.
Opex - eligibility and alignment outcome
The proportion of operational expenditure (opex) in 2024 that is eligible-aligned is 49% (2023: 40%),
46% was eligible for, but not aligned with the EU taxonomy, and 5% of BAM’s opex in 2024 was
determined to be not eligible.
As the opex definition in the EU taxonomy is very narrow, this KPI is less significant in the light of
BAM’s business model. The percentages are estimated based on a pro-rata basis related to the
revenue of the aligned economic activities in order to determine eligibility and alignment for the
operational expenditures in 2024.
Operational expenditure in 2024 that classifies as eligible-aligned with the EU taxonomy, include for
example the short term lease expenses, pro rata, of BAM’s rail business.
Verification of compliance with minimum social safeguards
BAM has verified that the eligible economic activities are carried out in compliance with the
minimum social safeguards, including the human right due diligence process and risk assessment for
BAM. The following topics have been identified:
• Human right policies;
• Human right impacts;
• Human right communications;
• Grievance mechanisms;
• Consumer interests;
• Bribery and corruption;
• Fair competition;
• Taxation.
120
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Sustainability statement
Financial statements Other information Appendices
BAM assessed the steps of the due diligence process described in the minimum social safeguard
requirements.
• Embed responsible business conduct into policies and management systems;
• Identify and assess adverse impacts in operations, supply chains and business relationships;
• Cease, prevent or mitigate adverse impacts;
• Track implementation and results;
• Communicate how the topics and related measures are addressed.
Further details on human rights due diligence processes are included in chapter 6.4.
Eligible and aligned activities per objective and disclosure of specific activities
In table 70 it shows that most of the aligned revenue of BAM is contributing to the EU taxonomy
objective of climate change mitigation. BAM’s revenue is eligible on the objectives climate change
mitigation, climate change adaptation and the transition to a circular economy. The table also shows
the proportion of capex and opex that is aligned and eligible per objective.
70
Proportion of revenue, capex and opex per objective
(in %)
Proportion of
revenue
Proportion of
capex
Proportion of
opex
Taxonomy-
aligned per
objective
Taxonomy-
eligible per
objective
Taxonomy-
aligned per
objective
Taxonomy-
eligible per
objective
Taxonomy-
aligned per
objective
Taxonomy-
eligible per
objective
CCM
27 68 25 54 49 73
CCA
0 85 0 80 1 95
WTR
0 0 0 0 0 0
CE
0 45 0 27 0 7
PPC
0 0 0 0 0 0
BIO
0 0 0 0 0 0
BAM is also required to disclose specifically on nuclear energy and fossil gas related activities, refer to
table 71. BAM currently carries out one project that is related to nuclear energy activities. No
further details are disclosed as these activities account for less than 0.8% of the total revenue.
71 Nuclear and fossil gas related activities
Nuclear energy related activities
1 The undertaking carries out, funds or has exposures to research, development, demonstration and
deployment of innovative electricity generation facilities that produce energy from nuclear processes with
minimal waste from the fuel cycle.
NO
2 The undertaking carries out, funds or has exposures to construction and safe operation of new nuclear
installations to produce electricity or process heat, including for the purposes of district heating or
industrial processes such as hydrogen production, as well as their safety upgrades, using best available
technologies.
YES
3 The undertaking carries out, funds or has exposures to safe operation of existing nuclear installations that
produce electricity or process heat, including for the purposes of district heating or industrial processes
such as hydrogen production from nuclear energy, as well as their safety upgrades.
NO
Fossil gas related activities
4 The undertaking carries out, funds or has exposures to construction or operation of electricity generation
facilities that produce electricity using fossil gaseous fuels.
NO
5 The undertaking carries out, funds or has exposures to construction, refurbishment, and operation of
combined heat/cool and power generation facilities using fossil gaseous fuels.
NO
6 The undertaking carries out, funds or has exposures to construction, refurbishment and operation of heat
generation facilities that produce heat/cool using fossil gaseous fuels.
NO
CEO Message
121
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Sustainability statement
Financial statements Other information Appendices
Do no significant harm toSubstantial contribution to
Economic activities
Code
Revenue
Proportion of revenue 2024
Climate change mitigation
Climate change adaptation
Water
Pollution
Circular economy
Biodiversity
Climate Change Mitigation
Climate Change Adaptation
Water
Pollution
Circular Economy
Biodiversity
Minimum safeguards
Proportion of Taxonomy
aligned (A.1.) or eligible
(A.2.) revenue, year 2023
Category enabling activity
Category transitional activity
€/mln.
%
Y;
N;
N/EL
Y;
N;
N/EL
Y;
N;
N/EL
Y;
N;
N/EL
Y;
N;
N/EL
Y;
N;
N/EL
Y/N Y/N Y/N Y/N Y/N Y/N Y/N % E T
A. Taxonomy-eligible activities
A.1 - Environmentally sustainable activities (Taxonomy-aligned)
Infrastructure for water transport
CCA 6.16
9 0.1% N Y N/EL N/EL N/EL N/EL Y Y Y Y Y Y Y 0.0%
Infrastructure for rail transport
CCM 6.14
1,091 16.9% Y N N/EL N/EL N/EL N/EL Y Y Y Y Y Y Y 14.7% E
Infrastructure enabling low carbon water transport
CCM 6.16
14 0.2% Y N N/EL N/EL N/EL N/EL Y Y Y Y Y Y Y 0.0% E
Construction of new buildings
CCM 7.1
438 6.8% Y N N/EL N/EL N N/EL Y Y Y Y Y Y Y 4.5%
Renovation of existing buildings
CCM 7.2
149 2.3% Y N N/EL N/EL N N/EL Y Y Y Y Y Y Y 1.0% T
Installation, maintenance and repair of charging stations for electric vehicles in buildings
CCM 7.4
28 0.4% Y N N/EL N/EL N/EL N/EL Y Y Y Y Y Y Y 0.5% E
Installation, maintenance and repair of instruments and devices for measuring, regulation and
controlling energy performance of buildings
CCM 7.5
4 0.1% Y N N/EL N/EL N/EL N/EL Y Y Y Y Y Y Y 0.1% E
Revenue of environmentally sustainable activities (Taxonomy-aligned) (A.1) 1,733 26.8%
26.7% 0.1% 0.0% 0.0% 0.0% 0.0%
Y Y Y Y Y Y Y 20.9%
Of which Enabling
1,137 17.6% 17.6% 0.0% 0.0% 0.0% 0.0% 0.0% Y Y Y Y Y Y Y 15.3% E
Of which Transitional
149 2.3% 2.3% Y Y Y Y Y Y Y 1.0% T
A.2 - Taxonomy-Eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)
EL;
N/EL
EL;
N/EL
EL;
N/EL
EL;
N/EL
EL;
N/EL
EL;
N/EL
Infrastructure enabling road transport and public transport
CCA 6.15/CE3.4
208 3.2% N/EL EL N/EL N/EL EL N/EL Y 0.0%
Infrastructure enabling road transport and public transport
CCA 6.15
590 9.1% N/EL EL N/EL N/EL N/EL N/EL Y 13.7%
Infrastructure for water transport
CCA 6.16
262 4.1% N/EL EL N/EL N/EL N/EL N/EL Y 4.6%
Transmission and distribution of electricity
CCM 4.9/CCA 4.9
255 3.9% EL EL N/EL N/EL N/EL N/EL Y 3.0%
Construction and safe operation of new nuclear power plants, for the generation of
electricity or heat, including for hydrogen production, using best-available technologies
CCM 4.27/CCA4.27
52 0.8% EL EL N/EL N/EL N/EL N/EL Y 0.5%
Renewal of waste water collection and treatment
CCM 5.4/CCA 5.4
48 0.7% EL EL N/EL N/EL N/EL N/EL Y 0.3%
Infrastructure for rail transport
CCM 6.14/CCA 6.14
67 1.0% EL EL N/EL N/EL N/EL N/EL Y 1.0%
Construction of new buildings
CCM 7.1/CCA 7.1/CE3.1
1,616 25.0% EL EL N/EL N/EL EL N/EL Y 29.9%
Renovation of existing buildings
CCM 7.2/CCA 7.2/CE3.2
465 7.2% EL EL N/EL N/EL EL N/EL Y 9.4%
Installation, maintenance and repair of energy efficiency equipment
CCM 7.3/CCA 7.3
135 2.1% EL EL N/EL N/EL N/EL N/EL Y 1.6%
Installation, maintenance and repair of renewable energy technologies
CCM 7.6/CCA 7.6
13 0.2% EL EL N/EL N/EL N/EL N/EL Y 0.4%
Others (<10 mln)* 25 0.4% EL EL N/EL N/EL N/EL N/EL Y 0.3%
Revenue of Taxonomy-eligible but not environmentally sustainable activities
(not Taxonomy-aligned activities) (A.2)
3,737 57.9%
41.5% 57.9% 0.0% 0.0% 35.5% 0.0%
Y 65.0%
A. Revenue of Taxonomy eligible activities (A.1+A.2)
5,470
84.7%
68.2% 58.0% 0.0% 0.0% 35.5% 0.0%
Y
85.8%
B. Taxonomy-non-eligible activities
Revenue of taxonomy not-eligible activities (B) 985 15.3%
Total 6,455 100.0%
72 Proportion of revenue associated with EU taxonomy-aligned
economic activities – disclosure covering 2024
*The category other contains the activities CCM 4.3, CCM 4.12, CCM 4.15, CCM 5.1, CCM 5.2, CCM 5.3, CCM 6.13, CCM 6.16 and WTR 2.1. On these activities is less then 10 mln euro revenue eligible.
122
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Sustainability statement
Financial statements Other information Appendices
Economic activities
Code
Capex
Proportion of Capex 2024
Climate Change Mitigation
Climate Change Adaptation
Water
Pollution
Circular Economy
Biodiversity
Climate Change Mitigation
Climate Change Adaptation
Water
Pollution
Circular Economy
Biodiversity
Minimum safeguards
Proportion of Taxonomy
aligned (A.1.) or eligible
(A.2.) CapEx, year 2023
Category enabling activity
Category transitional activity
€/mln.
%
Y;
N;
N/EL
Y;
N;
N/EL
Y;
N;
N/EL
Y;
N;
N/EL
Y;
N;
N/EL
Y;
N;
N/EL
Y/N Y/N Y/N Y/N Y/N Y/N Y/N % E T
A. Taxonomy-eligible activities
A.1 - Environmentally sustainable activities (Taxonomy-aligned)
Infrastructure for water transport
CCA 6.16
0 0.1% N Y N/EL N/EL N/EL N/EL Y Y Y Y Y Y Y 0.0%
Infrastructure for rail transport
CCM 6.14
32 18.1% Y N N/EL N/EL N/EL N/EL Y Y Y Y Y Y Y 13.5% E
Infrastructure enabling low carbon water transport
CCM 6.16
1 0.5% Y N N/EL N/EL N/EL N/EL Y Y Y Y Y Y Y 0.0% E
Construction of new buildings
CCM 7.1
4 2.6% Y N N/EL N/EL N N/EL Y Y Y Y Y Y Y 6.7%
Renovation of existing buildings
CCM 7.2
1 0.7% Y N N/EL N/EL N N/EL Y Y Y Y Y Y Y 0.5% T
Installation, maintenance and repair of charging stations for electric vehicles in buildings
CCM 7.4
2 1.1% Y N N/EL N/EL N/EL N/EL Y Y Y Y Y Y Y 0.1% E
Installation, maintenance and repair of instruments and devices for measuring, regulation and
controlling energy performance of buildings
CCM 7.5
0 0.2% Y N N/EL N/EL N/EL N/EL Y Y Y Y Y Y Y 0.0% E
Acquisition and ownership of buildings
CCM 7.7
4 2.3% Y N N/EL N/EL N/EL N/EL Y Y Y Y Y Y Y 0.0%
Capex of environmentally sustainable activities (Taxonomy-aligned) (A.1) 45 25.4%
25.3% 0.1% 0.0% 0.0% 0.0% 0.0%
Y Y Y Y Y Y Y 20.8%
Of which Enabling
38 19.8% 19.8% 0.0% 0.0% 0.0% 0.0% 0.0% Y Y Y Y Y Y Y 13.6% E
Of which Transitional
1 0.7% 0.7% Y Y Y Y Y Y Y 0.5% T
A.2 - Taxonomy-Eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)
EL;
N/EL
EL;
N/EL
EL;
N/EL
EL;
N/EL
EL;
N/EL
EL;
N/EL
Infrastructure enabling road transport and public transport
CCA 6.15/CE3.4
13 7.6% N/EL EL N/EL N/EL EL N/EL Y 0.0%
Infrastructure enabling road transport and public transport
CCA 6.15
24 13.7% N/EL EL N/EL N/EL N/EL N/EL Y 19.8%
Infrastructure for water transport
CCA 6.16
9 5.1% N/EL EL N/EL N/EL N/EL N/EL Y 5.3%
Transmission and distribution of electricity
CCM 4.9/CCA 4.9
9 5.4% EL EL N/EL N/EL N/EL N/EL Y 4.6%
Construction and safe operation of new nuclear power plants, for the generation of
electricity or heat, including for hydrogen production, using best-available technologies
CCM 4.27/CCA4.27
1 0.6% EL EL N/EL N/EL N/EL N/EL Y 0.0%
Renewal of waste water collection and treatment
CCM 5.4/CCA 5.4
1 0.5% EL EL N/EL N/EL N/EL N/EL Y 0.0%
Infrastructure for rail transport
CCM 6.14/CCA 6.14
1 0.8% EL EL N/EL N/EL N/EL N/EL Y 0.6%
Construction of new buildings
CCM 7.1/CCA 7.1/CE 3.1
22 12.7% EL EL N/EL N/EL EL N/EL Y 17.0%
Renovation of existing buildings
CCM 7.2/CCA 7.2/CE3.2
6 3.5% EL EL N/EL N/EL EL N/EL Y 4.2%
Installation, maintenance and repair of energy efficiency equipment
CCM 7.3/CCA 7.3
8 4.3% EL EL N/EL N/EL N/EL N/EL Y 3.1%
Others (<10 mln)* 1 0.7% EL EL N/EL N/EL N/EL N/EL Y 1.9%
Capex of Taxonomy-eligible but not environmentally sustainable activities
(not Taxonomy-aligned activities) (A.2)
96 55.0%
28.6% 55.0% 0.0% 0.0% 23.8% 0.0%
Y 56.5%
A. Capex of Taxonomy eligible activities (A.1+A.2)
141
80.4%
53.9% 55.1% 0.0% 0.0% 23.8% 0.0%
Y
77.3%
B. Taxonomy-non-eligible activities
Capex of taxonomy not-eligible activities (B) 34 19.6%
Total 175 100.0%
73 Proportion of capex associated with EU taxonomy-aligned
economic activities – disclosure covering 2024
*The category other contains the activities where less then 1 million eur capex is eligible.
Do no significant harm toSubstantial contribution to
CEO Message
123
Value creation Business performance Risk management and governance Supervisory Board
Sustainability statement
Financial statements Other information Appendices
Economic activities
Code
Opex
Proportion of Opex 2024
Climate Change Mitigation
Climate Change Adaptation
Water
Pollution
Circular Economy
Biodiversity
Climate Change Mitigation
Climate Change Adaptation
Water
Pollution
Circular Economy
Biodiversity
Minimum safeguards
Proportion of Taxonomy
aligned (A.1.) or eligible
(A.2.) OpEx, year 2023
Category enabling activity
Category transitional activity
€/mln.
%
Y;
N;
N/EL
Y;
N;
N/EL
Y;
N;
N/EL
Y;
N;
N/EL
Y;
N;
N/EL
Y;
N;
N/EL
Y/N Y/N Y/N Y/N Y/N Y/N Y/N % E T
A. Taxonomy-eligible activities
A.1 - Environmentally sustainable activities (Taxonomy-aligned)
Infrastructure for water transport
CCA 6.16
0 0.5% N Y N/EL N/EL N/EL N/EL Y Y Y Y Y Y Y 0.0%
Infrastructure for rail transport
CCM 6.14
30 48.6% Y N N/EL N/EL N/EL N/EL Y Y Y Y Y Y Y 38.6% E
Construction of new buildings
CCM 7.1
0 0.3% Y N N/EL N/EL N N/EL Y Y Y Y Y Y Y 1.2%
Renovation of existing buildings
CCM 7.2
0 0.1% Y N N/EL N/EL N N/EL Y Y Y Y Y Y Y 0.2% T
Opex of environmentally sustainable activities (Taxonomy-aligned) (A.1) 31 49.6%
49.0% 0.5% 0.0% 0.0% 0.0% 0.0%
Y Y Y Y Y Y Y 39.9%
Of which Enabling
30 48.6% 48.6% 0.0% 0.0% 0.0% 0.0% 0.0% Y Y Y Y Y Y Y 38.6% E
Of which Transitional
0 0.1% 0.1% Y Y Y Y Y Y Y 0.2% T
A.2 - Taxonomy-Eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)
EL;
N/EL
EL;
N/EL
EL;
N/EL
EL;
N/EL
EL;
N/EL
EL;
N/EL
Infrastructure enabling road transport and public transport
CCA 6.15
8 12.4% N/EL EL N/EL N/EL N/EL N/EL Y 19.5%
Infrastructure for water transport
CCA 6.16
6 10.2% N/EL EL N/EL N/EL N/EL N/EL Y 10,9%
Transmission and distribution of electricity
CCM 4.9/CCA 4.9
2 3.8% EL EL N/EL N/EL N/EL N/EL Y 3.6%
Construction and safe operation of new nuclear power plants, for the generation of
electricity or heat, including for hydrogen production, using best-available technologies
CCM 4.27/CCA4.27
2 3.0% EL EL N/EL N/EL N/EL N/EL Y 1.7%
Renewal of waste water collection and treatment
CCM 5.4/CCA 5.4
2 2.7% EL EL N/EL N/EL N/EL N/EL Y 0,0%
Infrastructure for rail transport
CCM 6.14/CCA 6.14
2 3.9% EL EL N/EL N/EL N/EL N/EL Y 3.4%
Construction of new buildings
CCM 7.1/CCA 7.1/CE 3.1
4 6.9% EL EL N/EL N/EL EL N/EL Y 11.8%
Installation, maintenance and repair of energy efficiency equipment
CCM 7.3/CCA 7.3
1 2.0% EL EL N/EL N/EL N/EL N/EL Y 0.0%
Others (<10 mln)* 1 0.9% EL EL N/EL N/EL N/EL N/EL Y 0.0%
Opex of Taxonomy-eligible but not environmentally sustainable activities
(not Taxonomy-aligned activities) (A.2)
29 45.7%
23.2% 45.7% 0.0% 0.0% 6.9% 0.0%
Y 53.1%
A. Opex of Taxonomy eligible activities (A.1+A.2)
60
95.3%
72.2% 46.3% 0.0% 0.0% 6.9% 0.0%
Y
92.9%
B. Taxonomy-non-eligible activities
Opex of taxonomy not-eligible activities (B) 3 4.7%
Total 63 100.0%
74 Proportion of opex associated with EU taxonomy-aligned
economic activities – disclosure covering 2024
*The category other contains the activities where less then 1 million euro capex is eligible.
Do no significant harm toSubstantial contribution to
124
CEO Message Value creation Business performance Risk management and governance Supervisory Board
Sustainability statement
Financial statements Other information Appendices
Crossover Amsterdam
Crossover offers a mix of offices, housing, social functions and a restaurant.
With its sustainable character and multifunctional concept, Crossover
contributes to a pleasant working and living environment on the Zuidas, in
close connection with the historic neighbourhoods of Amsterdam Oud-Zuid
and the city centre.
CEO Message
125
Value creation Business performance Risk management and governance Supervisory Board
Sustainability statement
Financial statements Other information Appendices
6.7 Sustainability statement annex
Disclosure number Disclosure requirement Section reference
General disclosures (ESRS 2)
BP-1
General basis for preparation pages 72
BP-2
Disclosures in relation to specific circumstances page 72 - 74
GOV-1
The role of the administrative, management and supervisory bodies page 74
GOV-2
Information provided to and sustainability matters addressed by the undertaking’s administrative,
management and supervisory bodies
page 74
GOV-3
Integration of sustainability-related performance in incentive schemes page 74 - 75
GOV-4
Statement on due diligence
page 75
GOV-5
Risk management and internal controls over sustainability reporting
page 75
SBM-1
Strategy, business model and value chain
page 75
SBM-2
Interests and views of stakeholders
pages 64, 75
SBM-3
Material impacts, risks and opportunities, and their interaction with strategy and business model
pages 64 - 70, 74, 75
IRO-1
Description of the process to identify and assess material impacts, risks and opportunities
pages 61-64, 75
IRO-2
Disclosure requirements covered by the Sustainability statements
pages 75, 126 - 129
MDR-P
Policies adopted to manage material sustainability matters
pages 76 - 77
MDR-A
Actions and resources in relation to material sustainability matters
pages 76, 81, 89, 94, 97
MDR-M
Metrics in relation to material sustainability matters
pages 76, 82, 86, 89, 92,
98, 100, 105, 108, 109, 111,
114
MDR-T
Tracking effectiveness of policies and actions through targets
page 76
Climate change (ESRS E1)
E1-1
Transition plan for climate change mitigation pages 78 - 79
ESRS 2 SBM-3
Material impacts, risks and opportunities, and their interaction with strategy and business model
page 80
ESRS 2 IRO-1
Description of the processes to identify and assess material climate-related impacts, risks and
opportunities
pages 80 - 81
E1-2
Policies related to climate change mitigation and adaptation page 77
E1-3
Actions and resources in relation to climate change policies page 81
E1-4
Targets related to climate change mitigation and adaptation pages 81 - 82
E1-5
Energy consumption and mix page 83
E1-6
Gross GHG emissions page 84 - 85
E1-9
Anticipated financial effects from material physical and transition risks and potential climate-related opportunities page 74
Reference table
The sustainability statement complies with all aspects of ESRS.
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Disclosure number Disclosure requirement Section reference
Pollution (ESRS E2)
ESRS 2 IRO-1
Description of the processes to identify and assess material pollution-related impacts, risks and opportunities pages 88 - 89
E2-1
Policies related to pollution page 89
E2-2
Actions and resources related to pollution page 89
E2-3
Target related to pollution page 90
Biodiversity (ESRS E4)
E4 -1
Transition plan for biodiversity pages 91 - 92
ESRS 2 SBM-3
Material impacts, risks and opportunities, and their interaction with strategy and business model pages 92 - 93
ESRS 2 IRO-1
Description of the processes to identify and assess material biodiversity and ecosystem-related impacts, risks and opportunities
page 93
E4-2
Policies related to biodiversity and ecosystems pages 94
E4-3
Actions and resources in relation to biodiversity and ecosystem page 94
E4-4
Targets related to biodiversity and ecosystems page 94
E4-5
Impact metrics related to biodiversity and ecosystems page 94
Resource use and Circular economy (ESRS E5)
ESRS 2 SBM-3
Material impacts, risks and opportunities, and their interaction with strategy and business model
impacts, risks and opportunities
page 97
ESRS 2 IRO-1
Description of the processes to identify and assess material resource use and circular economy--related
impacts, risks and opportunities
page 97
E5-1
Policies related to resource use and circular economy page 97
E5-2
Actions and resources related to resource use and circular economy pages 97 - 98
E5-3
Targets related to resource use and circular economy page 98
E5-4
Resource inflows page 99
E5-5
Resource outflows pages 99 - 100
Own workforce (ESRS S1)
ESRS 2 SBM-2
Interests and views of stakeholders page 102
ESRS 2 SBM-3
Material impacts, risks and opportunities, and their interaction with strategy and business model page 103
S1-1
Policies related to own workforce pages 103 - 104
S1-2
Processes for engaging with own workforce and workers’ representatives about impacts page 104
S1-3
Processes to remediate negative impacts and channels for own workforce to raise concerns page 104
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Disclosure number Disclosure requirement Section reference
S1-4
Taking action on material impacts on own workforce, and approaches to managing material risks
and pursuing material opportunities related to own workforce, and effectiveness of actions
page 104
S1-5
Targets related to managing material negative impacts, advancing positive impacts and managing
material risks and opportunities
page 104
S1-6
Characteristics of the undertaking’s employees pages 104 to 106
S1-7
Characteristics of non-employee workers in BAM’s own workforce page 106
S1-9
Diversity metrics page 106 - 107
S1-13
Training and skills development metrics page 74
S1-14
Health and safety metrics pages 74, 107 - 108
S1-16
Remuneration metrics (pay gap and total remuneration) page 108
S1- entity-specific
Return on inclusion page 109
Affected communities (ESRS S3)
ESRS 2 SBM-2
Interests and views of stakeholders
page 109
ESRS 2 SBM-3
Material impacts, risks and opportunities, and their interaction with strategy and business model
page 109
S3-1
Policies related to affected communities page 109
S3-2
Processes for engaging with affected communities about impacts pa ge 110
S3-4
Taking action on material impacts on affected communities, and approaches to managing material risks and pursuing material opportunities related to affected
communities, and effectiveness of those actions (Taking action on social value)
page 110
S3-5
Targets related to managing material negative impacts, advancing positive impacts and managing material risks and opportunities page 110
S3- entity-specific
Social value pages 109 - 111
Business conduct (ESRS G1)
ESRS 2 GOV-1
Business conduct policies and corporate culture page 112
ESRS 2 IRO-1
Material impact, risk or opportunity page 112
G1-1
Business conduct policies and corporate culture pages 112 - 113
G1-3
Prevention and detection of corruption and bribery pages 113 - 114
G1-4
incidents of corruption or bribery page 114
G1- entity-specific
Protection of data and respecting privacy page 114
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List of data points that derive from other EU legislation
ESRS standard Data point that derives from other EU legislation Reference to Sustainability statement
General disclosures
General disclosures (ESRS 2)
GOV-1 Board’s gender diversity page 107
GOV-1 Percentage of board members who are independent page 112
GOV-4 Statement of due diligence page 75
Environmental disclosures
Climate change (E1)
E1-1 Transition plan to reach carbon neutrality by 2050 pages 78 - 79
E1-1 Undertakings excluded from Paris-aligned Benchmarks page 78
E1-4 GHG emission reduction targets
pages 81 - 82
E1-5 Energy consumption and mix
page 83
E1-6 Gross scope 1, 2, 3 and total GHG emissions
pages 84 - 85
E1-6 Gross GHG emissions intensity
page 85
Social disclosures
Own workforce (S1)
S1-1 Human rights policy commitments
page 103
S1-1 Due diligence policies on issues addressed by the fundamental International Labor
Organisation Conventions 1 to 8
page 103
S1-14 Number of fatalities and number and rate of work-related accidents pages 107 - 108
S1-14 Number of days lost to injuries, accidents, fatalities or illness paragraph 88 (e) pages 74, 107 - 108
S1-16 Unadjusted gender pay gap page 108
Governance disclosures
Business conduct (G1)
G1-1 United Nations Convention against Corruption page 113
G1-4 Fines for violation of anti-corruption and anti-bribery laws page 114
Other data points listed in ESRS 2 Appendix B, which are not included in the table above, are considered either not material or not relevant.
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Financial statements
CityGate I - Marchandises is an
important milestone in the
transformation of a former industrial
site into a mixed, sustainable new
district. The project comprises 97
subsidised homes, a crèche for 56
children, an underground parking for
130 cars and 276 bicycles, as well
as a multifunctional building of
approximately 4,000 m².
Anderlecht,
Brussels, Kairos
and BAM Interbuild
(in joint venture)
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Consolidated income statement 132
Consolidated statement of comprehensive income 132
Consolidated statement of financial position 133
Consolidated statement of changes in equity 134
Consolidated statement of cash flows 135
Notes to the consolidated financial statements
1. General information 136
2. Accounting policies 136
3. Critical accounting judgements and key sources of estimation uncertainties 139
4. Financial risk management 140
5. Segment information 143
6. Revenue and projects 144
7. Personnel expenses 146
8. Other income 147
9. Impairments 147
10. Finance income and expense 147
11. Income tax 147
12. Discontinued operations 151
13. Earnings per share 152
14. Property, plant and equipment 152
15. Leases 153
16. Intangible assets 155
Contents
17. Investments in joint ventures and associates 156
18. Other financial assets 158
19. Inventories 158
20. Trade and other receivables 159
21. Cash and cash equivalents 160
22. Assets held for sale 160
23. Group equity 161
24. Borrowings 162
25. Employee benefits 164
26. Provisions 169
27. Trade and other payables 170
28. Related parties 170
29. Share-based payments 171
30. Joint operations 172
31. Commitments 173
32. Contingencies 173
33. Investigation 174
34. Audit fees 174
35. Events after the reporting period 174
Company statement of financial position as at 31 December 175
Company income statement 175
Notes to the company financial statements 176
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Notes 2024 | 2023 | ||
| Continued operations | |||
Revenue | 6 | ||
| Materials and third party services | ( | ( | |
Personnel expenses | 7 | ( | ( |
Depreciation and amortisation | ( | ( | |
Impairments | 9 | ( | ( |
Exchange rate differences | ( | ( | |
Other operating expenses | ( | ( | |
Other income | 8 | ||
Share in result of joint ventures and associates | 17 | ( | |
| Operating result | |||
Finance income | 10 | ||
Finance expense | 10 | ( | ( |
| Result before tax | |||
Income tax | 11 | ( | ( |
| Result from continued operations | |||
| Discontinued operations | |||
Result from discontinued operations | 12 | ||
| Net result | |||
| Attributable to: | |||
Shareholders of the Company | |||
Non-controlling interests | ( | ( | |
| Earnings per share (x €1) | |||
Basic earnings per share | 13 | ||
Diluted earnings per share | 13 | ||
| Earnings per share from continued operations (x €1) | |||
Basic earnings per share | 13 | ||
Diluted earnings per share | 13 |
Consolidated income statement
(x €1,000)
Notes 2024 | 2023 | ||
Net result | |||
| Items that may be reclassified to the income statement | |||
Fair value movement of cash flow hedges | ( | ||
| Tax on fair value of cash flow hedges | |||
Cash flow hedge (net) | ( | ||
Fair value movement of cash flow hedge in joint ventures (net) | 17 | ( | |
Reclassification of hedging reserve to income statement | ( | ||
Reclassification of translation reserve to income statement | ( | ||
Exchange rate differences | |||
| Items that will not be reclassified to the income statement | |||
Remeasurements of post-employment benefit obligations | ( | ( | |
| Tax on remeasurements of post-employment benefit obligations | |||
Remeasurements of post-employment benefit obligations (net) | 25 | ( | ( |
Other comprehensive income | ( | ( | |
| Total comprehensive income | |||
| Attributable to: | |||
Shareholders of the Company | |||
Non-controlling interests | ( | ( |
Consolidated statement of comprehensive income
(x €1,000)
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Notes 31 December 2024 | 31 December 2023 | ||
| Non-current assets | |||
| Property, plant and equipment | 14 | ||
| Right-of-use assets | 15 | ||
| Intangible assets | 16 | ||
| PPP receivables | |||
| Investments in joint ventures and associates | 17 | ||
| Other financial assets | 18 | ||
| Employee benefits | 25 | ||
| Deferred tax assets | 11 | ||
| Current assets | |||
| Inventories | 19 | ||
| Trade and other receivables | 20 | ||
| Income tax receivable | |||
| Cash and cash equivalents | 21 | ||
| Assets classified as held for sale | 22 | ||
Total assets |
Consolidated statement of financial position
(x €1,000)
Notes | 31 December 2024 | 31 December 2023 | |
| Equity | |||
| Equity attributable to owners of the Company | |||
Non-controlling interests | |||
| Group equity | 23 | ||
| Non-current liabilities | |||
| Borrowings | 24 | ||
| Lease liabilities | 15 | ||
| Employee benefits | 25 | ||
| Provisions | 26 | ||
| Deferred tax liabilities | 11 | ||
| Current liabilities | |||
| Borrowings | 24 | ||
| Lease liabilities | 15 | ||
| Trade and other payables | 27 | ||
| Provisions | 26 | ||
Income tax payable | |||
Liabilities classified as held for sale | |||
Total equity and liabilities |
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| Attributable to the shareholders of the Company | ||||||||
| Share capital | Non-controlling | |||||||
| Notes | and premium | Translation reserve | Hedging reserve | Retained earnings | Total | interests | Total equity | |
| As at 1 January 2023 | ( | ( | ||||||
| Cash flow hedges | ( | ( | ( | |||||
Cash flow hedges in joint ventures | ( | ( | ( | |||||
| Remeasurements of post-employment benefit obligations | 25 | ( | ( | ( | ||||
Exchange rate differences | ( | |||||||
| Other comprehensive income, net of tax | ( | ( | ( | ( | ( | |||
Net result | ( | |||||||
Total comprehensive income | ( | ( | ||||||
| Repurchase of ordinary shares | 23 | ( | ( | ( | ||||
| Dividend | 23 | ( | ( | ( | ||||
| Change in ownership | ( | ( | ( | |||||
| Share-based payments | 29 | |||||||
| Total transactions with owners | ( | ( | ( | |||||
As at 31 December 2023 | ( | |||||||
Cash flow hedges | ||||||||
Cash flow hedges in joint ventures | ||||||||
Reclassification of reserves to income statement | 22 | ( | ( | ( | ( | |||
| Remeasurements of post-employment benefit obligations | 25 | ( | ( | ( | ||||
Exchange rate differences | ||||||||
| Other comprehensive income, net of tax | ( | ( | ( | ( | ||||
Net result | ( | |||||||
| Total comprehensive income | ( | ( | ||||||
| Repurchase of ordinary shares | 23 | ( | ( | ( | ||||
| Dividend | 23 | ( | ( | ( | ( | |||
| Share-based payments | 29 | |||||||
| Total transactions with owners | ( | ( | ( | ( | ||||
| As at 31 December 2024 | | ( |
Consolidated statement of changes in equity
(x €1,000)
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Notes 2024 | 2023 | ||
Net result from continued operations | |||
| Adjustments for: | |||
• Income tax | 11 | ||
• Depreciation, amortisation and impairments | |||
• Share in result of joint ventures and associates | 17 | ( | |
• Result on sale of property, plant and equipment and intangible fixed assets | 8 | ( | ( |
• Gain on sale of subsidiaries, joint ventures and associates | 8 | ( | |
• Share based payments | 29 | ||
• Finance income | 10 | ( | ( |
• Finance expense | 10 | ||
Net proceeds from PPP receivables | ( | ( | |
Interest received | |||
Interest paid | ( | ( | |
Income tax paid | ( | ( | |
Dividends received from joint ventures and associates | 17 | ||
Cash flow from operations | |||
Changes in provisions and pensions | ( | ( | |
Decrease/(increase) in inventories | |||
Decrease/(increase) in trade and other receivables | ( | ||
| Increase/(decrease) in trade and other payables | ( | ( | |
Net cash flow from operating activities |
Consolidated statement of cash flows
(x €1,000)
Notes 2024 | 2023 | ||
Net cash flow from operating activities (continued) | |||
Investments in property, plant and equipment | 14 | ( | ( |
Investments in intangible fixed assets | 16 | ( | ( |
Investments in non-current receivables and other financial assets | 17/18 | ( | ( |
Repayments of non-current receivables and other financial assets | 17/18 | ||
Proceeds from sale of property, plant and equipment and intangible fixed assets | 8 | ||
Net proceeds from sale of subsidiaries and associates | 8 | ||
| Net cash flow from investing activities | ( | ( | |
Proceeds from borrowings | 24 | ||
Repayments of borrowings | 24 | ( | ( |
Repayments of principal portion of lease liabilities | 15 | ( | ( |
Payment of dividend | 23 | ( | ( |
Repurchase of ordinary shares | 23 | ( | ( |
| Net cash flow from financing activities | ( | ( | |
Total cash flow | ( | ( | |
Cash and cash equivalents on 1 January | 21 | ||
| Exchange rate differences on cash and cash equivalents | |||
Cash and cash equivalents on 31 December | 21 |
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2. Accounting policies
Notes to the consolidated financial statements
On a long term basis, the Group’s ambition is to have a net positive impact on climate and resources by
2050. The following table summarises the financial impact of these targets:
Target
Financial impact
Reduction of Scope 1
and 2
CO
2
intensity
The target is planned to be achieved by amongst others the use of
renewable energy in all offices, the replacement of use of diesel on project
sites by biofuels or establishing early grid-connections in combination with
the use of electrical equipment. Most of these initiatives predominantly
require a change to ways of working rather than significant investments,
but some may also result in higher costs, for example the use of biofuel
instead of diesel. The Group is differentiating from competitors with the
use of biofuel to reduce CO
2
and generally compensated the higher cost
levels by increased revenue and higher margins.
Part of the reduction of CO
2
emissions is expected to be achieved by
increasing the use of electrical equipment and by electrification of the car
fleet. The financial impact of this is assessed as limited, as this is mostly
achieved through generic replacements investments.
Reduction of Scope 3
CO
2
emissions
The vast majority of the Group’s Scope 3
CO
2
emissions are related to
purchased goods and services (mainly concrete, steel and asphalt) and the
energy use of assets that the has constructed. The target is planned to be
achieved by offering alternative products (e.g. based on timber), low carbon
product alternatives (e.g. low carbon asphalt and concrete) and recycled
materials (e.g. steel) and by optimising the energy performance of assets
that the Group has constructed.
The Group is differentiating from
competitors through these initiatives and is generally able to compensate
higher costs, if any, by increased revenue and higher margins.
Reduction of
construction and
office waste
The target is planned to be achieved by supply chain collaboration and
product innovation as part of the Group’s ongoing activities, i.e. it is not
expeced to result in a material increase in costs or investments.
In its double materiality assessment, the Group identified the impact of climate change to the valuation
of land and building rights as a potential financial risk for the long term. In 2024, the Group’s land and
building rights were assessed for their net realisable values and no significant impairments were recorded.
This assessment took into consideration all relevant facts and circumstances with respect to planned
developments, including current and/or expected effects of climate change.
Taking the above into consideration, the Group assessed that climate related matters do not have a
significant adverse financial impact on the Group’s financial statements.
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4.1 Capital management
The Group’s objectives when managing capital are to safeguard the Group’s ability to continue as a
going concern in order to provide returns for shareholders and benefits for other stakeholders and to
maintain an optimal capital structure to reduce the cost of capital. In order to maintain or adjust the
capital structure, the Group may adjust dividends paid to shareholders, return capital to
shareholders, issue new shares or sell assets to reduce debt.
The Group’s aim is for a financing structure that ensures continuing operations and minimises cost of
equity. For this, flexibility and access to the financial markets are important conditions. As usual within
the industry, the Group monitors its financing structure through its liquidity (see note 4.2.3) and
throught is capital ratio. Capital ratio is calculated as the capital base divided by total assets. The
Group’s capital base consists of equity attributable to shareholders of the Company and, up to 2021,
the carrying amount of subordinated convertible bonds. The Group’s target capital ratio is above 20%.
On 31 December 2024, the capital ratio was 23.0% (2023: 23.4%).
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Up to 1 year | 1 to 5 years | Over 5 years | Total | |
| 31 December 2024 | ||||
| Total borrowings | 7,012 | 55,011 | 4,827 | 66,850 |
Fixed interest rates | (3,109) | (7,733) | (139) | (10,981) |
| Variable interest rates | 3,903 | 47,278 | 4,688 | 55,869 |
| 31 December 2023 | ||||
| Total borrowings | 7,061 | 49,080 | 5,433 | 61,574 |
Fixed interest rates | (2,370) | (5,424) | (156) | (7,950) |
| Variable interest rates | 4,691 | 43,656 | 5,277 | 53,624 |
Notes | 2024 | 2023 | |
| Non-current assets | |||
| PPP receivables | 14,272 | 13,675 | |
| Non-current receivables | 18 | 106,126 | 91,647 |
| Current assets | |||
| Trade receivables | 20 | 451,771 | 525,083 |
| Contract assets | 20 | 600,016 | 554,840 |
| Amounts due from related parties | 20 | 21,786 | 18,465 |
| Other receivables | 20 | 91,964 | 86,057 |
| PPP receivables | 690 | 644 | |
| Derivative financial instruments | 20 | 700 | 121 |
| Cash and cash equivalents | 21 | 763,420 | 757,333 |
2,050,745 | 2,047,865 |
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| Carrying | Contractual | ||||
| amount | cash flows | < 1 year | 1 – 5 years | > 5 years | |
| 2024 | |||||
| Syndicated credit facility | - | - | - | - | - |
| Non-recourse PPP loans | 8,069 | 9,170 | 930 | 3,142 | 5,098 |
| Non-recourse property financing | 36,852 | 42,402 | 4,705 | 37,697 | - |
| Other non-recourse financing | 7,550 | 8,150 | 2,575 | 5,575 | - |
| Recourse property financing | 12,160 | 13,548 | 1,210 | 12,160 | 178 |
| Other recourse financing | 2,219 | 2,254 | 833 | 1,421 | - |
| Lease liabilities | 256,363 | 267,868 | 88,881 | 119,001 | 59,986 |
Provisions 1 | 3,000 | 3,000 | 3,000 | - | - |
Trade and other payables | 1,220,923 | 1,220,923 | 1,220,923 | - | - |
1,547,136 | 1,567,315 | 1,323,057 | 178,996 | 65,262 | |
| 2023 | |||||
| Syndicated credit facility | - | - | - | - | - |
| Non-recourse PPP loans | 8,509 | 9,782 | 855 | 3,347 | 5,580 |
| Non-recourse property financing | 32,464 | 39,447 | 5,464 | 33,983 | - |
| Other non-recourse financing | 3,557 | 3,766 | 1,539 | 2,227 | - |
| Recourse property financing | 13,874 | 16,323 | 1,629 | 14,485 | 209 |
| Other recourse financing | 3,170 | 3,240 | 985 | 2,255 | - |
| Lease liabilities | 234,215 | 241,652 | 72,450 | 138,203 | 30,999 |
Provisions 1 | 3,500 | 3,500 | 3,500 | - | - |
Trade and other payables | 1,364,088 | 1,364,088 | 1,364,088 | - | - |
1,663,377 | 1,681,798 | 1,450,510 | 194,500 | 36,788 |
Includes financial instruments at | Estimated | ||||
Amortised cost | Fair value | L 1 | Total | fair value | |
| 2024 | |||||
| PPP receivables | - | 14,272 | 3 | 14,272 | 8,594 |
| Other financial assets | 45,760 | 60,366 | 3 | 106,126 | 99,164 |
| Trade and other receivables | 681,669 | 700 | 2 | 682,369 | 682,369 2 |
| Cash and cash equivalents | 763,420 | - | - | 763,420 | 763,420 |
| Borrowings | 66,850 | - | - | 66,850 | 59,416 |
Provisions 3 | - | 3,000 | 3 | 3,000 | 3,000 |
| Trade and other payables | 1,220,923 | - | - | 1,220,923 | 1,220,923 2 |
| 2023 | |||||
| PPP receivables | - | 13,675 | 3 | 13,675 | 7,909 |
| Other financial assets | 27,106 | 64,541 | 3 | 91,647 | 86,361 |
| Trade and other receivables | 743,164 | 121 | 2 | 743,285 | 743,285 2 |
| Cash and cash equivalents | 757,333 | - | - | 757,333 | 757,333 |
| Borrowings | 61,574 | - | - | 61,574 | 52,724 |
Provisions 3 | - | 3,500 | 3 | 3,500 | 3,500 |
| Trade and other payables | 1,364,088 | 1,318 | 2 | 1,365,406 | 1,356,406 2 |
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| Belgium, | Other | |||||
| Division | Division | Germany and | including | |||
| Revenue and results | NL | UK&I | Invesis 2 | International | eliminations | Total |
| 2024 | ||||||
| Revenue | 3,230,707 | 3,112,407 | - | 112,562 | (725) | 6,454,951 |
Adjusted EBITDA 1 | 160,803 | 114,068 | 29,806 | 6,405 | 2,198 | 313,280 |
| Adjusted items | (5,796) | (6,440) | - | - | - | (12,236) |
| EBITDA | 155,007 | 107,628 | 29,806 | 6,405 | 2,198 | 301,044 |
Depreciation and amortisation | (82,668) | (42,351) | - | (2,027) | (723) | (127,769) |
| Impairments | (4,433) | - | - | - | - | (4,433) |
Impairments in joint | ||||||
| ventures and associates | (3,056) | - | (106,994) | - | - | (110,050) |
| Finance income | ||||||
| and expense | (6,148) | 19,500 | - | 5,264 | (10,078) | 8,538 |
Result before tax | 58,702 | 84,777 | (77 ,188) | 9,642 | (8,603) | 67,330 |
| Balance sheet | ||||||
| Assets | 1,520,741 | 1,797,700 | 80,389 | 241,148 | 74,018 | 3,713,996 |
| Equity-accounted | ||||||
| investees | 134,569 | 32,922 | - | 8,953 | 570 | 177,014 |
Total assets | 1,655,310 | 1,830,622 | 80,389 | 250,101 | 74,588 | 3,891,010 |
| Liabilities | 1,603,748 | 1,373,418 | 112,337 | (94,032) | 2,995,471 | |
| Group equity | 51,562 | 457,204 | 80,389 | 137,764 | 168,620 | 895,539 |
Equity and liabilities | 1,655,310 | 1,830,622 | 80,389 | 250,101 | 74,588 | 3,891,010 |
| Belgium, | Other | |||||
| Division | Division | Germany and | including | |||
| Revenue and results | NL | UK&I | Invesis | International | eliminations | Total |
| 2023 | ||||||
| Revenue | 3,007,334 | 3,138,843 | - | 125,336 | (1,039) | 6,270,474 |
Adjusted EBITDA 1 | 178,999 | 121,463 | 2,594 | 11,434 | (10,174) | 304,316 |
| Adjusted items | (7,458) | (2,815) | - | 620 | - | (9,653) |
| EBITDA | 171,541 | 118,648 | 2,594 | 12,054 | (10,174) | 294,663 |
Depreciation and amortisation | (75,241) | (42,715) | - | (2,264) | (1,073) | (121,293) |
| Impairments | (3,559) | - | - | - | - | (3,559) |
Impairments in joint | ||||||
| ventures and associates | 917 | 917 | ||||
| Finance income | ||||||
| and expense | (520) | 19,898 | - | 3,485 | (10,024) | 12,839 |
Result before tax | 93,138 | 95,831 | 2,594 | 13,275 | (21,271) | 183,567 |
| Balance sheet | ||||||
| Assets | 1,594,614 | 1,774,641 | - | 267,458 | (38,345) | 3,598,368 |
| Equity-accounted | ||||||
| investees | 122,384 | 25,498 | 176,200 | 9,000 | 570 | 333,652 |
Total assets | 1,716,998 | 1,800,139 | 176,200 | 276,458 | (37,775) | 3,932,020 |
| Liabilities | 1,605,576 | 1,364,793 | - | 133,240 | (92,408) | 3,011,201 |
| Group equity | 111,422 | 435,346 | 176,200 | 143,218 | 54,633 | 920,819 |
Equity and liabilities | 1,716,998 | 1,800,139 | 176,200 | 276,458 | (37,775) | 3,932,020 |
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| Belgium, | Other | ||||
| Division | Division | Germany and | including | ||
| Other disclosures | NL | UK&I | International | eliminations | Total |
| 2024 | |||||
Additions to property, plant and equipment, right-of-use assets | |||||
| and intangible assets | 116,132 | 68,210 | 2,525 | 672 | 187,539 |
| Share in result of joint ventures | |||||
| and associates | 20,064 | (680) | 153 | - | 19,537 |
Average number of FTE | 6,606 | 6,254 | 211 | 101 | 13,172 |
| Number of FTE at year-end | 6,560 | 6,229 | 213 | 101 | 13,103 |
| 2023 | |||||
Additions to property, plant and equipment, right-of-use assets | |||||
| and intangible assets | 122,904 | 64,634 | 2,226 | 1,960 | 191,724 |
| Share in result of joint ventures | |||||
| and associates | 27,545 | (229) | 918 | - | 28,234 |
Average number of FTE | 6,655 | 6,368 | 223 | 97 | 13,343 |
| Number of FTE at year-end | 6,681 | 6,273 | 212 | 97 | 13,263 |
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Division NL | Division UK&I | |
| 2024 | ||
| Construction and property | 2,255,096 | 904,531 |
| Ventures | - | 310,173 |
| Civil engineering | 1,005,373 | 1,572,943 |
| BAM Ireland | - | 426,838 |
| Other including eliminations | (29,762) | (102,078) |
3,230,707 | 3,112,407 | |
| 2023 | ||
| Construction and property | 2,072,409 | 1,045,861 |
| Ventures | - | 323,307 |
| Civil engineering | 963,987 | 1,363,364 |
| BAM Ireland | - | 463,027 |
| Other including eliminations | (29,062) | (56,716) |
3,007,334 | 3,138,843 |
| Belgium, | |||||
| Germany and | |||||
Division NL | Division UK&I | International | Eliminations | Total | |
| 2024 | |||||
Construction and maintenance | 2,776,458 | 2,955,432 | 71,527 | (725) | 5,802,692 |
| Property development | 439,586 | - | 19,455 | - | 459,041 |
| Service concessions | |||||
| arrangements and other | 14,663 | 156,975 | 21,580 | - | 193,218 |
3,230,707 | 3,112,407 | 112,562 | (725) | 6,454,951 | |
| 2023 | |||||
Construction and maintenance | 2,535,975 | 2,940,028 | 59,662 | (1,039) | 5,534,626 |
| Property development | 423,108 | 74,565 | 47,644 | - | 545,317 |
| Service concession | |||||
| arrangements and other | 48,251 | 124,250 | 18,030 | - | 190,531 |
3,007,334 | 3,138,843 | 125,336 | (1,039) | 6,270,474 |
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| Construction | Property | ||
| contracts | development | Total | |
| 2024 | |||
Land and building rights | - | 269,143 | 269,143 |
Property development | - | 179,905 | 179,905 |
| Amounts due from customers | 378,220 | 6,923 | 385,143 |
Project assets | 378,220 | 455,971 | 834,191 |
Non-recourse property financing | - | (36,852) | (36,852) |
Recourse property financing | - | (12,160) | (12,160) |
Amounts due to customers | (735,275) | (88,204) | (823,479) |
| Provision for onerous contracts | (125,526) | - | (125,526) |
| Project liabilities | (860,801) | (137,216) | (998,017) |
| 2023 | |||
Land and building rights | - | 236,777 | 236,777 |
Property development | - | 205,689 | 205,689 |
| Amounts due from customers | 314,306 | 16,474 | 330,780 |
Project assets | 314,306 | 458,940 | 773,246 |
Non-recourse property financing | - | (32,464) | (32,464) |
Recourse property financing | - | (13,874) | (13,874) |
Amounts due to customers | (639,111) | (87,300) | (726,411) |
| Provision for onerous contracts | (148,071) | - | (148,071) |
| Project liabilities | (787,182) | (133,638) | (920,820) |
| As at 31 December 2023 | (472,876) | 325,302 | (147,574) |
(x € million) | 2024 | 2023 |
| Up to 1 year | 5,771 | 4,936 |
2 to 5 years | 7,237 | 4,873 |
13,008 | 9,809 | |
Over 5 years | 1,247 | 1,330 |
Total | 14,255 | 11,139 |
Note | 2024 | 2023 | |
Wages and salaries | 976,815 | 942,815 | |
Social security costs | 135,050 | 118,366 | |
Share-based payment expense | 29 | 2,709 | 4,857 |
Pension costs - defined contribution plans | 103,646 | 86,927 | |
Pension costs - defined benefit plans | 25 | 1,548 | (481) |
| Other post-employment benefits | 8,999 | 1,339 | |
1,228,767 | 1,153,823 |
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2024 | 2023 | |
| Gain on sale of associates | - | 1,785 |
| Gain on sale of PP&E and intangible fixed assets | 673 | 1,531 |
Other | - | 2,565 |
673 | 5,881 |
Notes | 2024 | 2023 | |
Property, plant and equipment | 14 | 5,140 | - |
ROU assets | 15 | 1,487 | - |
Inventories | 19 | (2,194) | 3,559 |
Impairments | 4,433 | 3,559 |
2024 | 2023 | |
| Finance income | ||
| Interest income | 23,400 | 23,262 |
| Finance expense | ||
| Interest expense on lease liabilities | 10,043 | 7,988 |
| Interest expense on other financial liabilities | 8,601 | 7,313 |
Less: capitalised interest on property development projects | (3,782) | (4,878) |
14,862 | 10,423 | |
Net finance result | 8,538 | 12,839 |
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2024 | 2023 | |
Current tax | 38,666 | 30,093 |
| Deferred tax | (33,502) | (21,479) |
5,164 | 8,614 |
2024 | 2023 | |
Result before tax (including discontinued operations) | 87,400 | 183,568 |
Tax calculated at Dutch tax rate of 25.8%; | 22,549 | 47,361 |
| Tax effects of: | ||
• Tax rates in other countries | (4,665) | (3,770) |
• Non deductible expenses | 18,576 | 2,270 |
• Adjustments from filing tax returns | (8,566) | (846) |
• Previously unrecognised tax losses | (48,488) | (44,717) |
• Tax losses no(t) (longer) recognised | 5,031 | 14,458 |
• Results of investments and other participations | 18,171 | (4,796) |
• Change in uncertain tax provisions | 2,556 | (804) |
| • Other including expenses not deductible for tax purposes | - | (542) |
| Tax charge/(gain) | 5,164 | 8,614 |
Effective tax rate | 5.9% | 4.7% |
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Pillar Two charge is assessed to be immaterial. The adoption of the Pillar Two Model rules by the
jurisdictions in which the Group operates, is expected to have no material impact.
In all relevant jurisdictions the applicable tax rate is around 25%, well above the minimum rate of 15%.
The only exception is Ireland, where the corporate income tax rate is 12.5% for trading income and 25% for
non-trading income. At the current mix of income, the Group expects an effective tax rate in Ireland of
circa 15% and thus no material additional Pillar Two charge is expected. The Group applies the mandatory
temporary exception to the recognition and disclosure of deferred taxes arising from the jurisdictional
implementation of the Pillar Two model rules.
2024 | 2023 | |
Deferred tax assets | 111,875 | 82,446 |
| Deferred tax liabilities | (6,919) | (14,848) |
| Deferred tax assets (net) | 104,956 | 67,598 |
Deferred tax assets | Deferred tax liabilities | Net deferred tax | ||||
2024 | 2023 | 2024 | 2023 | 2024 | 2023 | |
Intangible and financial assets | 36,975 | 24,680 | - | - | 36,975 | 24,680 |
Tangible assets | 2,300 | 3,881 | 44,420 | 39,617 | (42,120) | (35,736) |
Trade and other receivables | 1,115 | 1,115 | - | - | 1,115 | 1,115 |
Loans and borrowings | 42,349 | 38,517 | 265 | 2,032 | 42,084 | 36,485 |
Derivatives | - | 340 | 181 | 31 | (181) | 309 |
Employee benefits provision | 25 | 18 | 10,954 | 12,880 | (10,929) | (12,862) |
Other provisions | 8,229 | 5,251 | - | - | 8,229 | 5,251 |
Current liabilities | - | - | - | 1,091 | - | (1,091) |
| Tax loss and tax credits | 69,783 | 49,447 | - | - | 69,783 | 49,447 |
Subtotal | 160,776 | 123,249 | 55,820 | 55,651 | 104,956 | 67,598 |
| Netting | (48,901) | (40,803) | (48,901) | (40,803) | - | - |
| Total reported | 111,875 | 82,446 | 6,919 | 14,848 | 104,956 | 67,598 |
Total available | of which | Deferred | ||
income tax | recognised | Tax rate | tax asset | |
Netherlands | 392,913 | 251,500 | 25.8% | 64,887 |
United Kingdom | - | - | 25.0% | - |
Ireland | 19,589 | 2,563 | 12.5% | 328 |
Belgium | 28,905 | 18,270 | 25.0% | 4,568 |
| Germany | 607,509 | - | 30.0% | - |
| Total | 1,048,916 | 272,333 | 69,783 |
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| (Charged)/ | ||||||||
| (Charged)/ | credited to | |||||||
| As at | credited to | other | Changes in | Exchange | As at | |||
| 1 January | the income | comprehensive | enacted | Disposal of | rate | 31 December | ||
| 2024 | statement | income | tax rates | subsidiary | differences | Other | 2024 | |
Intangible and financial assets | 24,680 | 12,295 | - | - | - | - | - | 36,975 |
Tangible assets | (35,735) | (3,171) | - | - | - | (183) | (3,031) | (42,120) |
Trade and other receivables | 1,115 | - | - | - | - | - | - | 1,115 |
Loans and borrowings | 36,485 | 2,573 | - | - | - | - | 3,026 | 42,084 |
Derivatives | 309 | (490) | - | - | - | - | - | (181) |
Employee benefits provision | (12,861) | (2,178) | 4,277 | - | - | (549) | 382 | (10,929) |
Other provisions | 5,249 | 2,695 | - | - | - | 285 | - | 8,229 |
Current liabilities | (1,092) | 1,092 | - | - | - | - | - | - |
| Tax loss and tax credits | 49,447 | 20,686 | - | - | - | - | (350) | 69,783 |
| Total | 67,597 | 33,502 | 4,277 | - | - | (447) | 27 | 104,956 |
| (Charged)/ | ||||||||
| (Charged)/ | credited to | |||||||
| As at | credited to | other | Changes in | Exchange | As at | |||
| 1 January | the income | comprehensive | enacted | Disposal of | rate | 31 December | ||
| 2023 | statement | income | tax rates | subsidiary | differences | Other | 2023 | |
Intangible and financial assets | 3,751 | 20,929 | - | - | - | - | - | 24,680 |
Tangible assets | (28,661) | (8,683) | - | - | 10 | 29 | 1,570 | (35,735) |
Trade and other receivables | 19 | 1,096 | - | - | - | - | - | 1,115 |
Loans and borrowings | 32,137 | 5,850 | - | - | - | - | (1,502) | 36,485 |
Derivatives | (135) | 349 | 95 | - | - | - | - | 309 |
Employee benefits provision | (17,952) | (2,662) | 7,965 | - | - | (293) | 81 | (12,861) |
Other provisions | 3,218 | 1,998 | - | - | (9) | 43 | (1) | 5,249 |
Current liabilities | (1,834) | 804 | - | - | - | - | (62) | (1,092) |
| Tax loss and tax credits | 48,374 | 1,201 | - | - | (128) | - | - | 49,447 |
| Total | 38,917 | 20,882 | 8,060 | - | (127) | (221) | 86 | 67,597 |
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2024 | 2023 | |
| Weighted average number of ordinary shares in issue (x 1,000) | 268,969 | 269,966 |
| Net result attributable to shareholders | 82,248 | 174,991 |
| Basic earnings per share (in €) | 0.31 | 0.65 |
| Net result from continued operations attributable to shareholders | 62,179 | 174,991 |
| Basic earnings per share from continued operations (in €) | 0.23 | 0.65 |
| Net result from discontinued operations attributable to shareholders | 20,069 | - |
| Basic earnings per share from discontinued operations (in €) | 0.07 | - |
Diluted weighted average number of ordinary shares in issue (x 1,000) | 270,597 | 274,336 |
| Diluted earnings per share (in €) | 0.30 | 0.64 |
| Diluted earnings per share from continued operations (in €) | 0.23 | 0.64 |
| Diluted earnings per share from discontinued operations (in €) | 0.07 | - |
| Land and | Plant and | Construction | |||
| buildings | equipment | in progress | Other assets | Total | |
| As at 1 January 2023 | |||||
| Cost | 125,599 | 287,653 | 16,814 | 86,555 | 516,621 |
| Accumulated depreciation | |||||
and impairments | (63,577) | (191,237) | - | (62,262) | (317,076) |
62,022 | 96,416 | 16,814 | 24,293 | 199,545 | |
| Additions | 3,834 | 43,515 | 21,155 | 11,501 | 80,005 |
| Disposals | (204) | (2,970) | (837) | (941) | (4,952) |
| Reclassifications | 205 | 4,561 | (3,000) | (1,294) | 472 |
| Depreciation charges | (6,548) | (22,343) | - | (10,410) | (39,301) |
Exchange rate differences | 54 | 484 | 17 | 87 | 642 |
59,363 | 119,663 | 34,149 | 23,236 | 236,411 | |
| As at 31 December 2023 | |||||
| Cost | 129,669 | 318,723 | 34,149 | 96,710 | 579,251 |
| Accumulated depreciation | |||||
and impairments | (70,306) | (199,060) | - | (73,474) | (342,840) |
59,363 | 119,663 | 34,149 | 23,236 | 236,411 |
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| Land and | Plant and | Construction | Other | ||
| buildings | equipment | in progress | assets | Total | |
| As at 1 January 2024 | 59,363 | 119,663 | 34,149 | 23,236 | 236,411 |
| Additions | 10,997 | 38,077 | 12,720 | 11,205 | 72,999 |
| Disposals | (248) | (927) | (2,774) | (172) | (4,121) |
| Reclassifications | 10,184 | 8,084 | (24,340) | 788 | (5,284) |
| Transfer to assets held for sale | - | (10,155) | - | - | (10,155) |
| Impairment charges | (1,502) | (3,638) | - | - | (5,140) |
| Depreciation charges | (7,031) | (22,936) | - | (11,940) | (41,907) |
Exchange rate differences | 321 | 880 | 278 | 194 | 1,673 |
72,084 | 129,048 | 20,033 | 23,311 | 244,476 | |
| As at 31 December 2024 | |||||
| Cost | 146,913 | 300,907 | 20,033 | 106,816 | 574,669 |
| Accumulated depreciation | |||||
and impairments | (74,829) | (171,859) | - | (83,505) | (330,193) |
72,084 | 129,048 | 20,033 | 23,311 | 244,476 |
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| Equipment | ||||||
| Land and | and | IT | ||||
| buildings | installation | equipment | Cars | Other | Total | |
As at 1 January 2023 | 77,962 | 9,885 | 86 | 82,652 | 152 | 170,737 |
| Additions | 16,968 | 19,920 | 268 | 70,121 | 129 | 107,406 |
| Disposals | (464) | (34) | - | (402) | - | (900) |
| Depreciation charges | (17,810) | (13,974) | (194) | (43,848) | (1,892) | (77,718) |
| Remeasurements | (1,536) | 10,883 | - | 2,179 | 5,779 | 17,305 |
| Reclassifications | (108) | (399) | - | 451 | - | (56) |
Exchange rate differences | 337 | 81 | - | 236 | 5 | 659 |
(2,613) | 16,477 | 74 | 28,737 | 4,021 | 46,696 | |
As at 31 December 2023 | 75,349 | 26,362 | 160 | 111,389 | 4,173 | 217,433 |
| Additions | 4,691 | 29,634 | 52 | 67,721 | 120 | 102,218 |
| Disposals | (109) | - | - | - | - | (109) |
| Depreciation charges | (15,509) | (14,998) | (163) | (50,426) | (874) | (81,970) |
| Impairment | (1,487) | - | - | - | - | (1,487) |
| Remeasurements | 7,178 | (5,400) | - | 300 | (28) | 2,050 |
Exchange rate differences | 658 | 1,207 | 4 | 1,160 | 50 | 3,079 |
(4,578) | 10,443 | (107) | 18,755 | (732) | 23,781 | |
As at 31 December 2024 | 70,771 | 36,805 | 53 | 130,144 | 3,441 | 241,214 |
2024 | 2023 | |
As at 1 January | 234,215 | 174,677 |
| Additions | 103,885 | 119,641 |
| Accretion of interest | 10,043 | 7,611 |
| Payments | (97,036) | (83,673) |
| Remeasurements | 2,103 | 16,384 |
| Reclassifications | - | (1,144) |
Exchange rate difference | 3,153 | 719 |
| As at 31 December | 256,363 | 234,215 |
| Current | 78,263 | 73,313 |
Non-current | 178,100 | 160,902 |
2024 | 2023 | |
| Profit or loss | ||
| Depreciation expense of right-of-use assets | 81,970 | 77,718 |
| Interest expense on lease liabilities | 10,043 | 7,611 |
| Impairment of right-of-use assets | 1,487 | - |
Rent expenses – short term leases | 58,681 | 52,863 |
| Total | 152,181 | 138,192 |
| Statement of cash flows | ||
| Repayments of principal portion of lease liabilities | 86,993 | 76,062 |
| Rent expenses | 58,681 | 52,863 |
Interest | 10,043 | 7,611 |
Total | 155,717 | 136,536 |
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The Group has several
lease contracts that include extension options. As of 31 December 2024, the undiscounted potential
future rental payments relating to extension options, which are not included in the lease liabilities are
€37.8 million (2023: €53.8 million).
Goodwill | Software | Other | Total | |
| As at 1 January 2023 | ||||
| Cost | 684,284 | 42,011 | 11,127 | 737,422 |
Accumulated amortisation and impairments | (367,823) | (35,657) | (8,426) | (411,906) |
316,461 | 6,354 | 2,701 | 325,516 | |
| Additions | - | 4,312 | - | 4,312 |
| Amortisation | - | (3,488) | (786) | (4,274) |
Exchange rate differences | 2,299 | 1 | - | 2,300 |
318,760 | 7,179 | 1,915 | 327,854 | |
| As at 31 December 2023 | ||||
| Cost | 686,757 | 38,088 | 11,232 | 736,077 |
Accumulated amortisation and impairments | (367,997) | (30,909) | (9,317) | (408,223) |
318,760 | 7,179 | 1,915 | 327,854 |
Goodwill | Software | Other | Total | |
As at 1 January 2024 | 318,760 | 7,179 | 1,915 | 327,854 |
| Additions | - | 12,323 | - | 12,323 |
| Amortisation | - | (3,109) | (782) | (3,891) |
| Reclassifications | - | 5,222 | - | 5,222 |
Exchange rate differences | 6,491 | 156 | - | 6,647 |
325,251 | 21,771 | 1,133 | 348,155 | |
| As at 31 December 2024 | ||||
| Cost | 693,743 | 55,970 | 11,228 | 760,941 |
Accumulated amortisation and impairments | (368,492) | (34,199) | (10,095) | (412,786) |
325,251 | 21,771 | 1,133 | 348,155 |
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2024 | 2023 | |
| BAM Nuttall | 69,592 | 66,418 |
BAM Construct UK | 63,708 | 60,802 |
| Other CGUs (with non-significant goodwill balance) | 191,951 | 191,539 |
| As at 31 December | 325,251 | 318,759 |
| Revenue | Revenue | Profit | Profit | |||||||
| Discount | growth | growth beyond | margin | margin | ||||||
| rate | in forecast | forecast | in forecast | after forecast | ||||||
| (pre-tax) | period | period | period | period | ||||||
2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | |
| BAM Construct UK | 8.8% | 10.3% | 3.4% | 1.5% | 2.0% | 3.0% | 3.3% | 3.1% | 3.6% | 3.6% |
| BAM Nuttall | 8.6% | 10.3% | 0.9% | 3.6% | 2.0% | 3.0% | 3.6% | 3.0% | 3.7% | 3.4% |
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2024 | 2023 | |||||
| Joint | Joint | |||||
ventures | Associates | Total | ventures | Associates | Total | |
| Invesis Group bv | - | - | - | 176,200 | - | 176,200 |
| Property development | 130,555 | 7,627 | 138,182 | 116,576 | 5,420 | 121,996 |
| Other | 28,644 | 10,188 | 38,832 | 25,711 | 9,745 | 35,456 |
| As at 31 December | 159,199 | 17,815 | 177,014 | 318,487 | 15,165 | 333,652 |
| Share in result | (63,540) | 5,889 | (57,651) | 24,972 | 5,856 | 30,828 |
| of which impairments | (110,050) | - | (110,050) | 917 | - | 917 |
2024 | 2023 | |||||
| Joint | Joint | |||||
ventures | Associates | Total | ventures | Associates | Total | |
| Current assets | 323,328 | 12,541 | 335,869 | 370,432 | 10,116 | 380,548 |
| Non-current assets | 5,087 | 6,561 | 11,648 | 175 | 6,796 | 6,971 |
| Current liabilities | (153,211) | (4,114) | (157,325) | (202,053) | (4,117) | (206,170) |
| Non-current liabilities | (60,360) | (7,361) | (67,721) | (61,165) | (7,361) | (68,526) |
| Net assets | 114,844 | 7,627 | 122,471 | 107,389 | 5,434 | 112,824 |
| Profit or loss | 6,686 | 3,942 | 10,628 | 14,818 | 3,574 | 18,392 |
Other comprehensive income | 260 | - | 260 | 105 | - | 105 |
Total comprehensive income | 6,946 | 3,942 | 10,888 | 14,923 | 3,574 | 18,497 |
2024 | 2023 | |||||
| Joint | Joint | |||||
ventures | Associates | Total | ventures | Associates | Total | |
| Profit or loss | 6,962 | 1,947 | 8,909 | 7,560 | 2,282 | 9,842 |
Other comprehensive income | - | - | - | - | - | - |
Total comprehensive income | 6,962 | 1,947 | 8,909 | 7,560 | 2,282 | 9,842 |
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| Receivables | Receivables | |||
| at fair | at | |||
| value through | amortised | |||
| profit or loss | cost | Other | Total | |
As at 1 January 2023 | 63,235 | 13,214 | 1,142 | 77,591 |
| Additions | - | - | (30) | (30) |
| Loans granted | 9,394 | 14,785 | - | 24,179 |
| Loan repayments | (7,697) | (1,463) | - | (9,160) |
| Transfer to current | (391) | 364 | (27) | |
Exchange rate differences | - | 206 | - | 206 |
As at 31 December 2023 | 64,541 | 27,106 | 1,112 | 92,759 |
| Investments | - | - | 915 | 915 |
| Loans granted | 18,139 | 20,941 | 474 | 39,554 |
| Loan repayments | (22,314) | (2,956) | (474) | (25,744) |
| Transfer to current | - | - | - | - |
Exchange rate differences | - | 670 | - | 670 |
As at 31 December 2024 | 60,366 | 45,761 | 2,027 | 108,154 |
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2024 | 2023 | |
| Land and building rights | 269,143 | 236,777 |
Property development | 179,905 | 205,689 |
449,048 | 442,466 | |
| Raw materials | 9,650 | 12,340 |
| Work in progress and semi-manufactures | 4,783 | 4,001 |
Finished products | 1,108 | 4,269 |
464,589 | 463,076 |
Land and building rights are presented as current assets in the ordinary course of business, however
by its nature, the realisation of the majority of these assets will be past one year. The main part of the
carrying amount of property development is expected to be sold within one year.
Impairments relating to land and building rights and property developments are as follows:
Note | 2024 | 2023 | |
Impairment charges | 3,212 | 4,444 | |
Reversal of impairment charges | (5,406) | (885) | |
| 9 | (2,194) | 3,559 |
Property development includes the following completed and unsold property:
2024 | 2023 | |||
| Completed and unsold property | Number/m² | Carrying | Number/m² | Carrying |
| amount | amount | |||
| Houses | 8 | 4,148 | - | - |
| Commercial property - rented | 2,073 | 1,918 | 2,073 | 2,810 |
| Commercial property - unrented | 6,002 | 6,894 | 1,938 | 1,793 |
12,960 | 4,603 |
Other inventories were not subject to impairments in 2024 or 2023.
2024 | 2023 | |
| Trade receivables | 454,260 | 531,508 |
Less: Provision for impairment of receivables | (2,489) | (6,425) |
| Trade receivables - net | 451,771 | 525,083 |
| Amounts due from customers | 385,143 | 330,780 |
| Amounts to be invoiced | 113,582 | 111,673 |
Retentions | 101,291 | 112,387 |
| Contract assets | 600,016 | 554,840 |
| Amounts due from related parties | 21,786 | 18,465 |
| PPP receivables | 690 | 644 |
| Other financial assets | 1,875 | 1,242 |
| Derivative financial instruments | 700 | 121 |
| Other receivables | 91,964 | 86,057 |
Prepayments | 92,081 | 139,756 |
1,260,883 | 1,326,208 |
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2024 | 2023 | |||
| Trade | Provision for | Trade | Provision for | |
| receivables | impairment | receivables | impairment | |
| Not past due | 333,443 | (11) | 430,130 | (260) |
| Up to 3 months | 47,285 | (79) | 53,330 | (10) |
| 3 to 6 months | 26,410 | (155) | 8,361 | (104) |
| 6 to 12 months | 17,431 | (907) | 19,821 | (1,794) |
| 1 to 2 years | 21,815 | (643) | 9,480 | (2,803) |
Over 2 years | 7,876 | (694) | 10,386 | (1,454) |
454,260 | (2,489) | 531,508 | (6,425) |
2024 | 2023 | |
| As at 1 January | 6,425 | 9,963 |
| Additions to provision for impairment | 1,641 | 2,428 |
| Release | (285) | (1,327) |
| Receivables written off during the year as uncollectable | (5,332) | (4,577) |
| Reclassifications | - | (81) |
Exchange rate differences | 40 | 19 |
As at 31 December | 2,489 | 6,425 |
2024 | 2023 | |
| Investment in joint venture Invesis | 80,389 | - |
Other | 10,155 | 5,634 |
90,544 | 5,634 |
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| 2024 | |
Fair value of consideration | 104,389 |
Settlement contingent consideration related to sale in 2020 and other items | (23,000) |
| 81,389 | |
| Cost to sell | (1,000) |
Carrying amount of joint venture | (187,383) |
Impairment | (106,994) |
| 2024 | |
Share in result joint venture before transfer to held for sale | (1,484) |
Reclassification of reserves | 31,290 |
Impairment | (106,994) |
Share in result of joint venture | (77,188) |
| Number of | Number of | Number of | |
| ordinary | treasury | ordinary | |
| shares | shares | shares | |
| in issue | |||
| As at 1 January 2023 | 279,407,449 | 11,287,880 | 268,119,569 |
| Shares issued | 4,630,427 | 4,630,427 | - |
| Repurchase of ordinary shares | - | 10,275,655 | (10,275,655) |
| Awarded LTI shares | - | (1,888,153) | 1,888,153 |
Dividends | - | (9,246,187) | 9,246,187 |
As at 31 December 2023 | 284,037,876 | 15,059,622 | 268,978,254 |
| Repurchase of ordinary shares | - | 16,449,195 | (16,449,195) |
| Awarded LTI shares | - | (3,778,374) | 3,778,374 |
Dividends | - | (7,216,389) | 7,216,389 |
As at 31 December 2024 | 284,037,876 | 20,514,054 | 263,523,822 |
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| Changes from | ||||||
| financing | Other | |||||
| cash flows | changes | |||||
| As at | Proceeds | Repayments | Effective | As at | ||
| 1 January | from | of | interest | 31 December | ||
| 2024 | borrowings | borrowings | method | Other | 2024 | |
Non-recourse PPP loans | 8,509 | 287 | (727) | - | - | 8,069 |
Non-recourse property financing | 32,464 | 5,903 | (1,515) | - | - | 36,852 |
Recourse property financing | 13,874 | 500 | (2,214) | - | - | 12,160 |
Other non-recourse financing | 3,557 | 5,859 | (1,866) | - | - | 7,550 |
Other recourse financing | 3,170 | - | (951) | - | - | 2,219 |
| Bank overdrafts | - | - | - | - | - | - |
61,574 | 12,549 | (7,273) | - | - | 66,850 |
| As at | Proceeds | Repayments | Effective | As at | ||
| 1 January | from | of | interest | 31 December | ||
| 2023 | borrowings | borrowings | method | Other | 2023 | |
Non-recourse PPP loans | 8,538 | 615 | (644) | - | - | 8,509 |
Non-recourse property financing | 20,525 | 17,218 | (5,279) | - | - | 32,464 |
Recourse property financing | 15,972 | 5,061 | (7,159) | - | - | 13,874 |
Other non-recourse financing | 3,458 | 2,260 | (1,722) | - | (439) | 3,557 |
Other recourse financing | 4,136 | - | (966) | - | - | 3,170 |
| Bank overdrafts | - | - | - | - | - | - |
52,629 | 25,154 | (15,770) | - | (439) | 61,574 |
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| Calculation | Requirement | 2024 | 2023 | |
Leverage ratio | Net borrowings/EBITDA | ≤ 2.50 1 | (4.3) | (3.9) |
Interest cover ratio | EBITDA/net interest expense | ≥ 4.00 | N/A | N/A |
Solvency ratio | Capital base 2 /total assets | ≥ 15% | 31.6% | 30.9% |
Guarantor covers | EBITDA share of guarantors | ≥ 70% | 103.2% | 110.8% |
| Assets share of guarantors | ≥ 70% | 100.5% | 99.9% |
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2024 | 2023 | |
Defined benefit asset | 46,123 | 51,894 |
| Defined benefit liability | 14,474 | 19,190 |
Other employee benefits obligations | 12,774 | 12,851 |
27,248 | 32,041 |
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| United | ||||
| Netherlands | Kingdom | Ireland | Other | |
| 2024 | ||||
Discount rate | 3.3% | 5.5% - 5.6% | 3.8% | 3.2% - 3.6% |
Salary growth rate | - | - | - | 2.0% - 2.3% |
Pension growth rate | 0% - 3.5% | 2.1% - 3.2% | 0% - 2.1% | 2.0% - 2.3% |
| 2023 | ||||
Discount rate | 3.1% | 4.6% - 4.8% | 3.6% | 3.6% - 3.8% |
Salary growth rate | - | - | - | 2.1% - 2.5% |
Pension growth rate | 0% - 6.1% | 2.7% - 3.2% | 0% - 2.4% | 2.1% - 2.5% |
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| United | |||||
| Netherlands | Kingdom | Ireland | Other | Total | |
| As at 31 December 2024 | |||||
| Defined benefit liability | (5,793) | - | - | (8,681) | (14,474) |
Defined benefit asset | - | 41,530 | 4,593 | - | 46,123 |
(5,793) | 41,530 | 4,593 | (8,681) | 31,649 | |
| Present value of obligation | |||||
| As at 1 January 2024 | 277,423 | 588,648 | 68,838 | 22,256 | 957,165 |
| Service cost | - | 73 | 1,002 | 198 | 1,273 |
| Interest expense | 8,345 | 27,734 | 2,429 | 787 | 39,295 |
| Remeasurements | (8,689) | (54,022) | (494) | (645) | (63,850) |
Plan participants contributions | - | - | 237 | 121 | 358 |
| Benefit payments | (16,433) | (28,468) | (2,979) | (1,350) | (49,230) |
| Settlements | - | - | - | - | - |
| Transfer to held for sale | - | - | - | - | - |
| Disposals | - | - | - | - | - |
Exchange rate differences | - | 26,960 | - | - | 26,960 |
As at 31 December 2024 | 260,646 | 560,925 | 69,033 | 21,367 | 911,971 |
| Fair value of plan assets | |||||
| As at 1 January 2024 | 267,116 | 639,689 | 69,691 | 13,373 | 989,869 |
| Interest income | 8,077 | 30,222 | 2,540 | 483 | 41,322 |
| Remeasurements | (7,267) | (72,488) | (326) | (782) | (80,863) |
| Employer contributions | 3,539 | 6,459 | 4,463 | 850 | 15,311 |
Plan participants contributions | - | - | 237 | 120 | 357 |
| Benefit payments | (16,433) | (28,468) | (2,979) | (1,350) | (49,230) |
| Administration cost | (179) | (2,114) | - | (8) | (2,301) |
| Settlements | - | - | - | - | - |
| Disposals | - | - | - | - | - |
| Transfer to held for sale | - | - | - | - | - |
Exchange rate differences | - | 29,155 | - | - | 29,155 |
As at 31 December 2024 | 254,853 | 602,455 | 73,626 | 12,686 | 943,620 |
| United | |||||
| Netherlands | Kingdom | Ireland | Other | Total | |
| Amounts recognised in the income statement | |||||
| Service cost | - | 73 | 1,002 | 198 | 1,273 |
| Net interest expense | 268 | (2,488) | (111) | 304 | (2,027) |
| Changes and plan | - | - | - | - | - |
| amendments and settlements | |||||
Administration cost | 179 | 2,114 | 8 | 2,301 | |
447 | (301) | 891 | 510 | 1,547 | |
| Amounts recognised in other comprehensive income | |||||
| Remeasurements: | |||||
• Return on plan assets, excluding interest | |||||
| income | 7,267 | 72,488 | 326 | 782 | 80,863 |
• (Gain)/loss from change in demographic | |||||
| assumptions | (731) | 2,475 | 2,146 | - | 3,890 |
• (Gain)/loss from change in financial assumptions | (7,958) | (58,398) | (3,186) | (21) | (69,563) |
• Experience (gains)/losses | - | 1,901 | 546 | (625) | 1,822 |
(1,422) | 18,466 | (168) | 136 | 17,012 | |
Income tax | 366 | (4,615) | 22 | (50) | (4,277) |
Remeasurement net of tax | (1,056) | 13,851 | (146) | 86 | 12,735 |
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| United | |||||
| Netherlands | Kingdom | Ireland | Other | Total | |
| As at 31 December 2023 | |||||
| Defined benefit liability | (10,307) | - | - | (8,883) | (19,190) |
Defined benefit asset | - | 51,041 | 853 | - | 51,894 |
(10,307) | 51,041 | 853 | (8,883) | 32,704 | |
| Present value of obligation | |||||
| As at 1 January 2023 | 265,334 | 552,531 | 61,939 | 22,321 | 902,125 |
| Service cost | - | 47 | 696 | 213 | 956 |
| Interest expense | 9,036 | 27,080 | 2,540 | 788 | 39,444 |
| Remeasurements | 17,433 | 27,074 | 6,601 | 55 | 51,163 |
Plan participants contributions | - | - | 261 | 120 | 381 |
| Benefit payments | (14,380) | (27,609) | (3,199) | (1,241) | (46,429) |
| Settlements | - | - | - | - | - |
| Transfer to held for sale | - | - | - | - | - |
| Disposals | - | - | - | - | - |
Exchange rate differences | - | 9,525 | - | - | 9,525 |
As at 31 December 2023 | 277,423 | 588,648 | 68,838 | 22,256 | 957,165 |
| Fair value of plan assets | |||||
| As at 1 January 2023 | 242,192 | 623,355 | 63,567 | 12,978 | 942,092 |
| Interest income | 8,697 | 30,783 | 2,710 | 459 | 42,649 |
| Remeasurements | 8,717 | (2,315) | 1,913 | (885) | 7,430 |
| Employer contributions | 22,069 | 6,360 | 4,439 | 1,950 | 34,818 |
Plan participants contributions | - | - | 261 | 120 | 381 |
| Benefit payments | (14,380) | (27,609) | (3,199) | (1,241) | (46,429) |
| Administration cost | (179) | (1,582) | - | (8) | (1,769) |
| Settlements | - | - | - | - | - |
| Disposals | - | - | - | - | - |
| Transfer to held for sale | - | - | - | - | - |
Exchange rate differences | - | 10,697 | - | - | 10,697 |
As at 31 December 2023 | 267,116 | 639,689 | 69,691 | 13,373 | 989,869 |
| United | |||||
| Netherlands | Kingdom | Ireland | Other | Total | |
| Amounts recognised in the income statement | |||||
| Service cost | - | 47 | 696 | 213 | 956 |
| Net interest expense | 339 | (3,704) | (170) | 329 | (3,206) |
| Changes and plan | |||||
| amendments and settlements | - | - | - | - | - |
Administration cost | 179 | 1,582 | - | 8 | 1,769 |
518 | (2,075) | 526 | 550 | (481) | |
| Amounts recognised in other comprehensive income | |||||
| Remeasurements: | |||||
• Return on plan assets, excluding interest | |||||
| income | (8,717) | 2,315 | (1,913) | 885 | (7,430) |
• (Gain)/loss from change in demographic | |||||
| assumptions | - | (2,826) | - | 570 | (2,256) |
• (Gain)/loss from change in financial assumptions | 14,381 | 26,066 | 5,770 | (582) | 45,635 |
• Experience (gains)/losses | 3,052 | 3,834 | 831 | 67 | 7,784 |
8,716 | 29,389 | 4,688 | 940 | 43,733 | |
Income tax | - | (7,344) | (585) | (36) | (7,965) |
Remeasurement net of tax | 8,716 | 22,045 | 4,103 | 904 | 35,768 |
| United | ||||
| Netherlands | Kingdom | Ireland | Other | |
| Average duration (in years) - 2024 | 11 | 13 | 17 | 10 |
| Average duration (in years) - 2023 | 11 | 14 | 17 | 10 |
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| United | |||||
| Netherlands | Kingdom | Ireland | Other | Total | |
| 2024 | |||||
Equity instruments | - | 71,288 | 5,291 | - | 76,579 |
Debt instruments | - | 511,159 | 64,009 | - | 575,168 |
Property | - | 3,899 | 3,086 | - | 6,985 |
Qualifying insurance policies | 254,853 | 339 | - | 12,686 | 267,878 |
| Cash and cash equivalents | - | 15,770 | 1,240 | - | 17,010 |
254,853 | 602,455 | 73,626 | 12,686 | 943,620 | |
| 2023 | |||||
Equity instruments | - | 55,739 | 23,183 | - | 78,922 |
Debt instruments | - | 559,616 | 41,260 | - | 600,876 |
Property | - | 9,106 | 3,128 | - | 12,234 |
Qualifying insurance policies | 267,116 | 390 | - | 13,373 | 280,879 |
| Cash and cash equivalents | - | 14,838 | 2,120 | - | 16,958 |
267,116 | 639,689 | 69,691 | 13,373 | 989,869 |
2024 | 2023 | |||
| Increase by | Decrease by | Increase by | Decrease by | |
| 0,5% | 0,5% | 0,5% | 0,5% | |
Discount rate | (€52 million) | €58 million | (€59 million) | €65 million |
Indexation | €29 million | (€27 milion) | €33 million | (€29 million) |
Salary increase | €0 million | (€0 million) | €0 million | (€0 million) |
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2024 | 2023 | |
Non-current | 64,646 | 82,217 |
| Current | 116,155 | 114,677 |
180,801 | 196,894 |
| Claims and legal | Onerous | ||||||
Warranty | Restructuring | obligations | Joint ventures | contracts | Other | Total | |
| As at 1 January 2023 | 30,923 | 5,162 | 500 | 10,578 | 171,677 | 21,288 | 240,128 |
| Charged/(credited) to the income statement: | |||||||
- Additional provisions | 24,797 | 10,273 | - | - | 82,632 | 86 | 117,788 |
- Release | (9,345) | (620) | (500) | - | (10,265) | (1,200) | (21,930) |
Used during the year | (15,418) | (7,698) | - | (8,244) | (96,666) | (11,774) | (139,800) |
| Exchange rate differences | - | - | - | - | 693 | 15 | 708 |
| As at 31 December 2023 | 30,957 | 7,117 | - | 2,334 | 148,071 | 8,415 | 196,894 |
| Charged/(credited) to the income statement: | |||||||
- Additional provisions | 15,960 | 12,236 | 6,796 | 651 | 133,734 | 1,072 | 170,449 |
- Release | (3,307) | - | - | - | (3,880) | (1,499) | (8,686) |
Used during the year | (6,798) | (15,559) | - | (1,584) | (153,471) | (1,691) | (179,103) |
| Exchange rate differences | - | - | 139 | - | 1,073 | 35 | 1,247 |
| As at 31 December 2024 | 36,812 | 3,794 | 6,935 | 1,401 | 125,527 | 6,332 | 180,801 |
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Notes | 2024 | 2023 | |
Trade payables | 499,685 | 507,305 | |
Amounts due to customers (contract liabilities) | 6 | 823,479 | 726,411 |
Amounts due to related parties | 27 | 47,171 | 90,192 |
Social security and other taxes | 181,157 | 167,766 | |
Pension premiums | 8,126 | 8,475 | |
Amounts due for work completed | 86,713 | 90,777 | |
Amounts due for work in progress | 548,114 | 611,014 | |
Derivative financial instruments | - | 1,318 | |
Other liabilities | 39,240 | 64,517 | |
| Accrued expenses and deferred income | 199,918 | 180,006 | |
2,433,603 | 2,447,781 |
(in € thousand) | 2024 | |||||
| Fixed | Short-term | Long-term | Other | Post- | Total | |
| remuneration | incentive | incentive | benefits 1 | employment | ||
| benefits | ||||||
| R.J.M. Joosten | 854 | 706 | 974 | 22 | 188 | 2,744 |
L.F. den Houter | 610 | 504 | 668 | 22 | 134 | 1,938 |
1,464 | 1,210 | 1,642 | 44 | 322 | 4,682 |
| 2023 | ||||||
| Fixed | Short-term | Long-term | Other | Post- | Total | |
| remuneration | incentive | incentive | benefits 1 | employment | ||
| benefits | ||||||
| R.J.M. Joosten | 801 | 554 | 545 | 22 | 176 | 2,098 |
L.F. den Houter | 572 | 395 | 342 | 22 | 126 | 1,457 |
1,373 | 949 | 887 | 44 | 302 | 3,555 |
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(in € thousand) | 2024 | 2023 |
| H.Th.E.M. Rottinghuis, Chairman | 131 | 108 |
| G. Boon, Vice-Chairman | 85 | 71 |
| B. Elfring | 84 | 69 |
| J. Hanson | 13 | - |
| D. Koopmans | 87 | 74 |
| M.P. Sheffield | 82 | 67 |
N.M. Skorupska | 88 | 66 |
570 | 455 |
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In 2021, the Group introduced a Special Incentive Plan (“SIP”), under which the Company awarded
conditional performance shares to a limited group of senior management positions below the
Executive Board to motivate them to deliver on the objectives for the strategic period 2021-2023. SIP
measured performance on adjusted EBITDA for the full company and home countries in 2022 and
2023. The plan vested in 2024.
In 2024, an amount of €2.7 million was charged (2023: €4.9 million) to the income statement arising
from the share plans.
| As at | Awarded | Dividend | Vested | Forfeited | As at | |
| 1 January | rights | (including | 31 December | |||
| 2024 | dividend) | 2024 | ||||
| R.J.M. Joosten | 857,235 | 218,900 | 31,418 | (237,681) | - | 869,872 |
| L.F. den Houter | 538,863 | 140,654 | 16,841 | (145,518) | (147,189) | 403,651 |
| Other participants | 3,810,788 | 948,256 | 56,535 | (2,232,494) | (535,057) | 2,048,028 |
5,206,886 | 1,307,810 | 104,794 | (2,615,693) | (682,246) | 3,321,551 |
The movements per plan for 2024 are as follows:
| As at | Awarded | Dividend | Vested | Forfeited | As at | |
| 1 January | rights | (including | 31 December | |||
| 2024 | dividend) | 2024 | ||||
2021-2023 | 2,615,693 | - | - | (2,615,693) | - | - |
2022-2024 | 1,115,228 | - | 46,369 | - | (200,838) | 960,759 |
2023-2025 | 1,475,965 | - | 58,425 | - | (282,134) | 1,252,256 |
2024-2026 | - | 1,307,810 | - | - | (199,274) | 1,108,536 |
5,206,886 | 1,307,810 | 104,794 | (2,615,693) | (682,246) | 3,321,551 |
In 2024, the Performance Share Plan 2021-2023 and the Special Incentive Plan vested at 131% and
146% respectively. Employees were therefore granted 3.8 million shares.
The fair value per share of the 2024 award in connection with the TSR performance part amounted to
€4.81 per share and is determined using a Monte Carlo simulation model. For the other (non) financial
performance measures, the fair value equals the share price at the grant date. The key assumptions
used in the valuations of the fair values were as follows:
| 2024 | |
| Share price at grant date (in €) | 3.82 |
| Risk-free interest rate (in %) | 2.73 |
| Volatility (in %) | 36.5 |
Expected volatility has been determined based on historical volatilities for a period of five years.
30. Joint operations
A part of the Group’s activities is carried out in joint arrangements and classified as joint operations.
These arrangements remain in place until a project is finished. In practice, the duration of the
majority of the joint operations is generally limited to a period of one to four years, with the
exception of joint operations in connection with land and building rights held for strategic purposes.
Based on an assessment of balance sheet total, revenue and result, none of the joint operations is
individually material to the Group. The Group’s share in revenue of joint operations amounts to
€717 million in 2024 (2023: €713 million), representing 11% of the Group’s revenue (2023: 11%).
The Group’s share in the balance sheets of joint operations is indicated below:
(in € million) | 2024 | |||
| Belgium, | ||||
| Germany and | ||||
Division NL | Division UK&I | International | Total | |
| Assets | ||||
| Non-current assets | 2.1 | 14.0 | - | 16.1 |
Current assets | 79.5 | 201.9 | 25.6 | 307.0 |
| 81.6 | 215.9 | 25.6 | 323.1 | |
| Liabilities | ||||
| Non-current liabilities | 9.1 | 9.1 | - | 18.2 |
| Current liabilities | 50.1 | 177.0 | 25.3 | 252.4 |
| 59.2 | 186.1 | 25.3 | 270.6 | |
Net assets | 22.4 | 29.8 | 0.3 | 52.5 |
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(in € million) | 2023 | |||
| Belgium, | ||||
| Germany and | ||||
Division NL | Division UK&I | International | Total | |
| Assets | ||||
| Non-current assets | 2.8 | - | - | 2.8 |
Current assets | 54.4 | 192.2 | 23.3 | 269.9 |
| 57.2 | 192.2 | 23.3 | 272.7 | |
| Liabilities | ||||
| Non-current liabilities | 9.4 | - | - | 9.4 |
| Current liabilities | 44.7 | 165.7 | 23.0 | 233.4 |
| 54.1 | 165.7 | 23.0 | 242.8 | |
Net assets | 3.1 | 26.5 | 0.3 | 29.9 |
As of 31 December 2024, the Group has capital commitments for joint operations amounting to nil
(2023: nil). Guarantees issued by banks and surety companies amount to nil (2023: €0.2 million).
2024 | 2023 | |
| Property, plant and equipment | 1,647 | 908 |
Land | 134,304 | 129,047 |
135,951 | 129,955 |
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34. Audit fees
The fees stated below for the audit of the financial statements are based on the total fees for the
audit of the financial statements, regardless of whether the procedures were already performed in
the financial year. Expenses for services provided by the Company’s current independent auditor,
EY Accountants BV (‘EY’) and its foreign member firms to the Group are specified as follows:
2024 | 2023 | |||||
€ thousands | EY | EY foreign | Total | EY | EY foreign | Total |
| member | member | |||||
| firms | firms | |||||
| Audit fees | 3,471 | 2,991 | 6,462 | 3,789 | 2,420 | 6,209 |
| Audit-related fees | 803 | 18 | 821 | 415 | 22 | 437 |
| Other non-audit | ||||||
fees | - | - | - | - | - | - |
4,274 | 3,009 | 7,283 | 4,204 | 2,442 | 6,646 |
Audit-related fees include the provision of limited assurance on the Group’s sustainability statement.
35. Events after the reporting period
No material events after the reporting period have occurred.
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Notes
31 December
2024
31 December
2023
Non-current assets
Intangible assets
2 320,792 314,536
Tangible fixed assets
1,395 1,263
Financial assets
3 801,084 936,965
Deferred tax assets
4
80,723 44,897
1,203,994 1,297,661
Current assets
Receivables
5 78,410 57,612
Cash and cash equivalents
6
239,777 247,215
318,187 304,827
Total assets 1,522,181 1,602,488
Equity attributable to shareholders of the Company
Issued and paid capital
7 28,404 28,404
Share premium
7 810,907 810,907
Legal reserves
7 (19,886) 79,488
Retained earnings
7 (6,160) (173,295)
Net result
7
82,248 174,991
895,513 920,495
Provisions
8 6,013 10,470
Non-current liabilities
Lease liabilities 968 825
968 825
Current liabilities
Lease liabilities
481 476
Other liabilities
9
619,206 670,222
619,687 670,698
Total equity and liabilities 1,522,181 1,602,488
Company statement of financial position
(before appropriation of result, x €1,000)
Notes
2024 2023
Internal charges
10 39,753 33,534
Other income
11 20,069 -
External charges
- (2,385)
Personnel expenses
12 (22,665) (19,890)
Depreciation and amortisation charges
(722) (1,073)
Impairment charges
- -
Other operating expenses (14,890) (21,433)
Operating result
21,545 (11,247)
Finance income
20,402 19,817
Finance expense (30,480) (29,841)
(10,078) (10,024)
Result before tax
11,467 (21,271)
Income tax
13 57,505 25,938
Share in result of subsidiaries, joint ventures and associates 13,276 170,324
Net result 82,248 174,991
Company income statement
(x €1,000)
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1. Summary of the accounting policies
1.1 Basis of preparation
The company financial statements of Royal BAM Group nv (‘the Company’ or ‘BAM’) have been
prepared in accordance with Part 9, Book 2 of the Dutch Civil Code. In accordance with subsection 8
of section 362, Book 2 of the Dutch Civil Code, the recognition and measurement principles applied
in these company financial statements are the same as those applied in the consolidated financial
statements.
The expected credit losses on receivables from subsidiaries have not been included in the company
financial statements, since these have been eliminated within the book value of the receivables.
1.2 Investments in subsidiaries
Investments in subsidiaries are measured at net asset value. The net asset value is determined using
the accounting policies, as described in the consolidated financial statements. The net asset value of
subsidiaries comprises the cost, excluding goodwill, of BAM’s share in the net assets of the subsidiary
plus BAM’s share in income or losses since acquisition, less dividends received.
1.3 Income tax
Corporate income tax is charged and/or allocated to the subsidiaries forming part of the fiscal unity,
as if they were independent taxable entities. Tax receivables and payables to the respective
subsidiaries are included in current receivables and current other liabilities.
Notes to the company financial statements
2. Intangible assets
Goodwill
Non-
integrated
software Other Total
As at 1 January 2023
Cost
515,158 3,565 883 519,606
Accumulated amortisation
and impairments (203,488) (3,058) (596) (207,142)
311,670 507 287 312,464
Additions
- 290 - 290
Amortisation
- (426) (88) (514)
Exchange rate differences 2,296 - - 2,296
2,296 (136) (88) 2,072
As at 31 December 2023
Cost
517,454 3,855 883 522,192
Accumulated amortisation
and impairments (203,488) (3,484) (684) (207,656)
313,966 371 199 314,536
Additions
- - - -
Amortisation
- (148) (89) (237)
Exchange rate differences 6,493 - - 6,493
6,493 (148) (89) 6,256
As at 31 December 2024
Cost
524,441 3,855 883 529,179
Accumulated amortisation
and impairments (203,982) (3,632) (773) (208,387)
320,459 223 110 320,792
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3. Financial assets
Shares in
subsidiaries
Receivables
from
subsidiaries
Other
participating
interests Total
As at 1 January 2023 573,725 164,958 186,906 925,589
Net result for the year
167,730 - 2,594 170,324
Dividends
(93,816) - (4,975) (98,791)
Changes to legal structure
(2,287) - - (2,287)
Loan repayments
- (38,784) (90) (38,874)
Hedging reserve
(271) - (7,865) (8,136)
Remeasurements of post-
employment benefit obligations
(27,049) - - (27,049)
Exchange rate differences 15,940 - 249 16,189
As at 31 December 2023 633,972 126,174 176,819 936,965
Net result for the year
90,464 - (77,188) 13,276
Dividends
(135,748) - - (135,748)
Investments
135 4,014 8,405 12,554
Movements in hedge reserves
- - (26,345) (26,345)
Remeasurements of post-
employment benefit obligations
(13,791) - - (13,791)
Exchange rate differences 14,856 - (683) 14,173
As at 31 December 2024 589,888 130,188 81,008 801,084
Changes to legal structure in 2023 are related to the acquisition of a non-controlling interest of a
subsidiary in Ireland.
Net result for the year in 2024 for other participating interests is related to Invesis. Note 22 of the
consolidated financial statements includes a further breakdown of the components of Invesis’ result.
A list of principal subsidiaries is disclosed in chapter 8.4 of this annual report.
4. Deferred tax assets
2024 2023
Deferred tax assets 80,723 44,897
80,723 44,897
The Company carries the full balance of deferred tax assets on carry forward losses of the fiscal unity.
5. Receivables
2024 2023
Amounts due from subsidiaries
37,196 40,412
Other receivables
28,086 7,872
Prepaid expenses 13,128 9,328
78,410 57,612
Receivables are due within one year. Other receivables includes the contingent consideration due
from PGGM related to the divestment of
50% of the shares of BAM PPP to PGGM Infrastructure Fund
(“PGGM”) in December 2020, as disclosed in note 12 to the consolidated financial statements.
6. Cash and cash equivalents
2024 2023
Cash at bank and in hand 239,777 247,215
239,777 247,215
Cash and cash equivalents are at the free disposal of the Company.
7. Equity attributable to shareholders of the Company
At year-end 2024, the authorised capital of the Group was 400 million ordinary shares (2023: 400
million) and 600 million preference shares (2023: 600 million), all with a nominal value of €0.10 per
share (2023: €0.10 per share). All issued shares have been paid in full.
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Movements in shareholders’ equity are as follows:
Attributable to the shareholders of the Company
Issued and
paid capital
Share
premium
Legal
reserves
Retained
earnings Net result Total
As at 1 January 2023
27,941 811,370 62,382 (270,747) 179,644 810,590
Net result for the year - - - - 174,991 174,991
Appropriation of result - - - 179,644 (179,644) -
Issue of share capital 463 (463) - - - -
Dividend payment - - (21,998) - (21,998)
Remeasurements of post-employment benefit obligations - - - (35,768) - (35,768)
Cash flow hedges - - (8,136) - - (8,136)
Repurchase of ordinary shares - - - (19,835) - (19,835)
Share-based payments - - - 4,857 - 4,857
Exchange rate differences - - 18,444 - - 18,444
Acquisition non-controlling interest - - - (2,650) - (2,650)
Transfers
- - 6,798 (6,798) - -
As at 31 December 2023
28,404 810,907 79,488 (173,295) 174,991 920,495
Net result for the year - - - - 82,248 82,248
Appropriation of result - - - 174,991 (174,991) -
Dividend payment - - (25,840) - (25,840)
Remeasurements of post-employment benefit obligations - - - (12,735) - (12,735)
Movements in cash flow hedges - - (26,345) - - (26,345)
Repurchase of ordinary shares - - - (65,525) - (65,525)
Share-based payments - - - 2,709 - 2,709
Exchange rate differences - - 20,506 - - 20,506
Transfers
- - (93,535) 93,535
As at 31 December 2024
28,404 810,907 (19,886) (6,160) 82,248 895,513
On 10 April 2024, the annual general meeting approved a cash dividend of €0.20 per ordinary
share with a scrip alternative (2023: €0.15 per ordinary share). On 8 May 2024, the Group paid
€25.8 million in cash and distributed 7.2 million shares to shareholders that opted for stock
dividend (2023: €22.0 million in cash and distributed 9.2 million shares to shareholders that
opted for stock dividend)
During 2024, the Group repurchased 16.4 million own shares for a total consideration of €65.5 million
(2023: €19.8 million). This comprises the repurchase programme to offset the dilution effect of stock
dividend and the €30 million share buyback (14.6 million shares) and the repurchase from employees
(1.8 million shares) of a part of the shares that vested under the performance share plan and special
incentive plan to settle their wage tax and social security premiums.
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7.1 Share premium, legal reserves, retained earnings and net result
Legal reserves comprise the reserves for (cash flow) hedging, translation differences and the Group’s
non-distributable reserve relating to undistributed profits accumulated in joint ventures and
associates. These legal reserves are required by Dutch law and are not distributable.
The hedging reserve amounts to nil (2023: €26.4 million) and the translation reserve amounts to
€66 million negative (2023: €87 million negative). The Group’s non-distributable reserve relating
to undistributed profits accumulated in joint ventures and associates amounts to €46.3 million
(2023: €140 million). The sum of share premium, retained earnings and net result are in principle
distributable except for an amount of €66 million, which is to cover the negative translation reserve.
7.2 Dividends per share
The net result for 2024 amounting to €82 million has been attributed to shareholders’ equity. The
Company proposes to declare a cash dividend over 2024 of €0.25 per ordinary share.
8. Provisions
2024 2023
Employee benefits 6,013 10,470
6,013 10,470
Employee benefits provision mainly relates to the defined benefit liability of the Dutch pension plan
as disclosed in note 25 of the consolidated financial statements.
9. Other liabilities
2024 2023
Amounts due to subsidiaries
598,785 641,417
Income tax payable
10,375 10,824
Other liabilities 10,046 17,981
619,206 670,222
Amounts due to subsidiaries is related to intercompany financing and the Group’s cash pool
structure. The amounts are payable on demand and are subject to an interest rate equal to one
month EURIBOR or SONIA. Other liabilities mainly consist of trade and other payables.
10. Internal charges
Internal charges represent revenue from services that have been charged to subsidiaries in respect of
management activities and responsibilities. The company charges these to its subsidiaries on a
cost-plus basis.
11. Other income
Other income includes the gain on the contingent consideration related to the divestment of
50% of
the shares of BAM PPP to PGGM Infrastructure Fund (“PGGM”) in December 2020, as disclosed in note
12 to the consolidated financial statements.
12. Employee benefit expenses
2024 2023
Wages and salaries
18,244 15,347
Social security costs
1,514 1,192
Share-based payment expense
1,303 1,884
Pension costs - defined contribution plans
1,589 1,442
Pension costs - defined benefit plans 15 25
22,665 19,890
At year-end 2024, the Company employed 101 FTE (2023: 97). The average number of FTE in 2024
was 101 (2023: 97). There are no employees in other countries than the Netherlands.
13. Income tax expense
The Company’s effective tax rate is -501% (2023: 122%) and differs from the applicable nominal tax
rate of 25.8%. The difference in both 2024 and 2023 is mainly attributable to the recognition of
additional deferred tax assets relating to tax losses. This is based on the Group’s forecast of taxable
profits for the next five years.
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14. Related parties
The Company has entered into arrangements with a number of its subsidiaries and affiliated
companies in the course of its business. These arrangements relate to service transactions and
financing agreements and were conducted at market prices.
15. Commitments and contingencies
14.1 Guarantees
At 31 December 2024, the Company has issued parent company guarantees amounting to
€
111
million (2023: €109 million).
14.2 Third-party liability
The Company is jointly and severally liable for the debts of the subsidiaries based in the Netherlands
pursuant to section 403, Book 2 of the Dutch Civil Code.
The Company, together with other participants, has a joint and several liability for deficits in the
Group’s cash pool as a whole.
The Company forms a fiscal unity with BAM’s major Dutch and certain other subsidiaries for income
tax and VAT purposes and, for that reason, it is jointly and severally liable for the Dutch income tax
and Dutch VAT liabilities of the whole fiscal unity.
Bunnik, the Netherlands, 19 February 2025
Supervisory Board: Executive Board:
H.Th.E.M. Rottinghuis R.J.M. Joosten
G. Boon L.F. den Houter
B. Elfring
J. Hanson
D. Koopmans
N.M. Skorupska
M.P. Sheffield
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181
Annual report 2024 Royal BAM Group nv
Berghaus Plaza
Sustainable redevelopment of the former Berghaus Plaza office building in
Amsterdam for real estate developer Boelens de Gruyter, including two
residential towers (288 new homes) and office tower (21,600 m
2
).
182
Other information
Mid-2024, BAM has opened a
new office in Kilsyth, creating a
hub in Scotland for the
company’s work decarbonising
the UK’s energy network as
well as delivering major public
buildings and infrastructure
projects.
Kilsyth, North
Lanarkshire, division
United Kingdom and
Ireland
Materiality € 45 million (2023: € 30 million)
Benchmark
applied
0.75% of revenue from continued
operations for 2024
(2023: 0.50% of revenue)
Explanation
Based on our analyses of the
common information needs of
users of the financial statements,
we presume result before tax
would be an appropriate
benchmark to determine
materiality. However, result before
tax has been volatile and
consequently we considered
revenues to be a more appropriate
benchmark to determine
materiality. 2024 is the first year of
Royal BAM Group nv’s 2024-2026
strategy that focuses inter alia on
protecting profitability to remain
predictable, profitable and
sustainable. As a result, we
determined that 0.75% is an
appropriate percentage of revenue
to use for 2024.
We have also taken into account misstatements
and/or possible misstatements that in our opinion
are material for the users of the financial
statements for qualitative reasons.
We agreed with the Supervisory Board that
misstatements in excess of € 2.25 million,
which are identified during the audit, would
be reported to them, as well as smaller
misstatements that in our view must be reported
on qualitative grounds.
Information in support of our opinion
We designed our audit procedures in the context
of our audit of the financial statements as a whole
and in forming our opinion thereon. The following
information in support of our opinion and any
findings were addressed in this context, and we
do not provide a separate opinion or conclusion
on these matters.
Our understanding of the business
Royal BAM Group nv, through its operating
companies, offers its clients products and services
in the sectors Construction and Property, Civil
Engineering and Public Private Partnerships.
Revenues from construction contracts, is
considered an area requiring significant judgments
and a key source of estimation uncertainty. Land
and building rights involved in property
development, at the company’s own risks and
rewards, requires recoverability testing based on
the net realizable value. The Company is structured
in divisions and is mainly active in the Netherlands,
the United Kingdom, Ireland and Belgium, and we
tailored our group audit approach accordingly.
Royal BAM Group nv decided in 2020 to cease all
operations of BAM International in other countries.
We paid specific attention in our audit to a number
of areas driven by the operations of the Company
and our risk assessment.
Materiality
We determined materiality and identified and
assessed the risks of material misstatement of the
financial statements, whether due to fraud or
error in order to design audit procedures
responsive to those risks and to obtain audit
evidence that is sufficient and appropriate to
provide a basis for our opinion.
Independent auditor’s report
To: the shareholders and Supervisory Board of
Koninklijke BAM Groep N.V.
Report on the audit of the financial
statements 2024 included in the
annual report
Our opinion
We have audited the accompanying financial
statements 2024 of Koninklijke BAM Groep N.V.
(hereinafter: the Company or Royal BAM Group nv)
based in Bunnik, the Netherlands. The financial
statements comprise the consolidated financial
statements and the company financial statements.
In our opinion:
• The consolidated financial statements give a true
and fair view of the financial position of Royal
BAM Group nv as at 31 December 2024 and of its
result and its cash flows for 2024 in accordance
with International Financial Reporting Standards
as adopted in the European Union (EU-IFRSs) and
with Part 9 of Book 2 of the Dutch Civil Code
• The company financial statements give a true and
fair view of the financial position of Royal BAM
Group nv as at 31 December 2024 and of its result
for 2024 in accordance with Part 9 of Book 2 of
the Dutch Civil Code
The consolidated financial statements comprise:
• The consolidated statement of financial
position as at 31 December 2024
• The following statements for 2024: the
consolidated income statement, the
consolidated statements of comprehensive
income, changes in equity and cash flows
•
The notes comprising material accounting policy
information and other explanatory information.
The company financial statements comprise:
• The company statement of financial position
as at 31 December 2024
• The company income statement for 2024
• The notes comprising a summary of the
accounting policies and other explanatory
information.
Basis for our opinion
We conducted our audit in accordance with
Dutch law, including the Dutch Standards on
Auditing. Our responsibilities under those
standards are further described in the Our
responsibilities for the audit of the financial
statements section of our report.
We are independent of Royal BAM Group nv in
accordance with the EU Regulation on specific
requirements regarding statutory audit of
public-interest entities, the Wet toezicht
accountantsorganisaties (Wta, Audit firms
supervision act), the Verordening inzake de
onafhankelijkheid van accountants bij
assurance-opdrachten (ViO, Code of Ethics for
Professional Accountants, a regulation with
respect to independence) and other relevant
independence regulations in the Netherlands.
Furthermore we have complied with the
Verordening gedrags- en beroepsregels
accountants (VGBA, Dutch Code of Ethics for
professional accountants).
We believe the audit evidence we have obtained
is sufficient and appropriate to provide a basis
for our opinion.
8.1
Independent auditor’s report and limited assurance report on sustainability information
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Other information
Appendices
related risks and the effects of the energy
transition and the Company’s commitments and
(constructive) obligations, are taken into
account in estimates and significant
assumptions, especially in the area of the
valuation of land and building rights as well as in
the design of relevant internal control measures.
Furthermore, we read the annual report and
considered whether there is any material
inconsistency between the sustainability
information in Section 2.2 “Strategy” and 3.3
“Environmental performance” and the financial
statements, including note 2.1.1 Climate-related
matters.
We describe the audit procedures responsive to
the potential impact of climate change on the
valuation of land and building rights in the
description of our audit approach for the key
audit matter ‘Valuation of land and building
rights’.
Our focus on fraud and non-
compliance with laws and regulations
Our responsibility
Although we are not responsible for preventing
fraud or non-compliance and we cannot be
expected to detect non-compliance with all laws
and regulations, it is our responsibility to obtain
reasonable assurance that the financial
statements, taken as a whole, are free from
material misstatement, whether caused by fraud
or error. The risk of not detecting a material
misstatement resulting from fraud is higher than
for one resulting from error, as fraud may
involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal
control.
level, we have been able to obtain sufficient and
appropriate audit evidence about the group’s
financial information to provide an opinion on
the financial statements.
Teaming and use of specialists
We ensured that the audit teams both at group and
at component levels included the appropriate skills
and competences which are needed for the audit of
a listed client in the real estate and construction
industry. We included specialists in the areas of IT
audit, corporate finance, income tax, pensions,
construction projects, land and building rights,
share based payments, legal and forensics.
Our focus on climate-related risks and
the energy transition
Climate change and the energy transition are
high on the public agenda. Issues such as CO
2
reduction impact financial reporting, as these
issues entail risks for the business operation, the
valuation of assets and provisions or the
sustainability of the business model and access
to financial markets of companies with a larger
CO
2
footprint.
The Executive Board summarised the Royal BAM
Group nv’s commitments and obligations, and
reported in sections 2.2 “Strategy” and 3.3
“Environmental performance” of the annual
report and note 2.1.1 “Climate-related matters”
in the financial statements how the Company is
addressing climate-related and environmental
risks also taking into account related regulatory
and supervisory guidance and ecommendations.
As part of our audit of the financial statements,
we evaluated the extent to which climate-
This resulted in a coverage of 71% of revenue and
87% of total assets.
For other components, we
performed analytical procedures to corroborate
that our risk assessment and scoping remained
appropriate throughout the audit.
For the foreign components of Royal BAM Group
nv, we involved EY component auditors, who are
familiar with local laws and regulations. We
involved non-EY component as well as EY
component auditors for projects with external
partners in which Royal BAM Group nv does not
have a majority share. In order to bear the
responsibility as Group auditor we performed site
visits to meet with local management and
component teams, observe the component
operations, we have had several (virtual)
meetings during each phase of the audit to
discuss the group risk assessment and the risks of
material misstatements and ultimately we
discussed the outcome of audit procedures with
all component auditors and attended closing
meetings with local management.
In addition we visited our component auditors in
the United Kingdom, Ireland and Denmark and
reviewed and evaluated the adequacy of the
deliverables and their electronic audit files to
address the risks of material misstatement. We
have performed audit procedures ourselves for
entities within the Group located in the
Netherlands, thereby focusing on the key risk
areas. We also have performed several audit
procedures centrally.
By performing the audit work mentioned above
at the entities or business units within the
group, together with additional work at group
Scope of the group audit
Royal BAM Group nv is at the head of a group of
entities. The financial information of this group is
included in the financial statements.
We are responsible for planning and performing the
group audit to obtain sufficient appropriate audit
evidence regarding the financial information of the
entities or business units within the group as a basis
for forming an opinion on the financial statements.
We are also responsible for the direction,
supervision, review and evaluation of the audit work
performed for purposes of the group audit. We bear
the full responsibility for the auditor’s report.
Based on our understanding of the group and its
environment, the applicable financial framework
and the group’s system of internal control, we
identified and assessed risks of material
misstatement of the financial statements and the
significant accounts and disclosures. Based on this
risk assessment, we determined the nature, timing
and extent of audit work performed, including the
entities or business units within the group
(components) at which to perform audit work.
For this determination we considered the nature of
the relevant events and conditions underlying the
identified risks of material misstatements for the
financial statements, the association of these risks
to components and the materiality or financial size
of the components relative to the group. We
communicated the audit work to be performed and
identified risks through instructions for component
auditors as well as requesting component auditors
to communicate matters related to the financial
information of the component that is relevant to
identifying and assessing risks.
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may represent a risk of material misstatement due
to fraud, in particular relating to important
judgment areas and significant accounting
estimates as disclosed in note 3 to the
consolidated financial statements.
We have also used data analysis to identify and
address high-risk journal entries and evaluated the
business rationale (or the lack thereof) of
significant extraordinary transactions, including
those with related parties.
We identified the following specific fraud risks
during our audit.
specialists. We evaluated whether these factors
indicate that a risk of material misstatement due
to fraud is present.
We incorporated elements of unpredictability in
our audit. We also considered the outcome of our
other audit procedures and evaluated whether any
findings were indicative of fraud or non-compliance.
We addressed the risks related to management
override of controls, as this risk is present in all
organisations. For these risks we have performed
procedures among other things to evaluate key
accounting estimates for management bias that
We evaluated the design and relevant aspects of
the system of internal control and in particular the
fraud risk assessment, as well as the code of
conduct, whistle blower procedures and incident
registration. We evaluated the design and the
implementation and, where considered
appropriate, tested the operating effectiveness, of
internal controls designed to mitigate fraud risks.
As part of our process of identifying fraud risks, we
evaluated fraud risk factors with respect to
financial reporting fraud, misappropriation of
assets and bribery and corruption in close
co-operation with our forensic and legal
Our audit response related to fraud risks
We identified and assessed the risks of material
misstatements of the financial statements due to
fraud. During our audit we obtained an
understanding of the Company and its
environment and the components of the system of
internal control, including the risk assessment
process and the Executive Board’s process for
responding to the risks of fraud and monitoring the
system of internal control and how the Supervisory
Board exercises oversight, as well as the outcomes.
We refer to chapter 4 of the annual report for the
Executive Board’s (fraud) risk assessment after
consideration of potential fraud risks.
Presumed risks of fraud in revenue recognition
Fraud risk
We presumed that there are risks of fraud in revenue recognition. We evaluated that revenues
from construction contracts and property development give rise to these risks, including the
related valuation of work in progress, due to an intentional over-estimation and/or under-
estimation of the project results and required contract provisions. The risk relates to projects
that are considered key (“key projects”) due to, amongst others, their relative size and
complexity and may take the form of:
• Incorrect valuation of variable considerations (i.e. variation orders, claims, penalties and
bonuses); and
• Incorrect estimation of costs to complete (including an increased estimation uncertainty due
to supply chain pressure and inflationary aspects).
Our audit
approach
We describe the audit procedures responsive to this fraud risk in the description of our audit
approach for the key audit matter Valuation of key projects and revenue recognition.
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Risk related to non-compliance with anti-fraud laws and regulations, including bribery and corruption
Fraud risk
We identified the risk that the Company does not comply with anti-fraud and bribery laws
and regulations, both as a result of active transactions and/or passive transactions in which
it is involved. As a result, the Company may be subject to administrative, civil or criminal
liabilities including fines and penalties, as well as suspension or debarment from
government or non-government contracts for some period of time.
The risk with regard to active transactions concerns the risk that the Company makes
illegal payments (bribery) to induce the recipient to act or refrain from acting. The risk
particularly relates to the tender process for (larger) projects.
Due to the size of the company, Royal BAM Group nv is a large customer for its suppliers
and subcontractors. Therefore, suppliers and subcontractors have an incentive to become
a preferred supplier or subcontractor for work on specific projects or in general. This leads
to the risk that the Company or its employees accept(s) payments (bribery) from suppliers
or subcontractors (passive transactions).
We also refer to chapter 4.1 Risk Management of the annual report.
Our audit
approach
We obtained an understanding of the entity level controls and the legal and regulatory
framework of the Company and executed procedures to confirm that they have been
properly implemented.
On a periodic basis, we enquired with the Executive Board, internal audit department, risk
and compliance department and legal department to understand and assess existing and
potentially non-compliance matters and new constructive and legal obligations. We
inspected legal and compliance management reports. We read the minutes of meetings of
the Executive Board and Supervisory Board.
For the specific risks identified, we involved forensic specialists to design a tailored work
programme to address these risks and we performed among others the following
procedures:
• inquiry with the Executive Board, compliance officer and tender desk manager;
• review of minutes of meetings of local management;
• performing analytical procedures, including data analytics;
• performing substantive test of details regarding the tender costs and costs related to
agents incurred in 2024;
• performing substantive test of details regarding significant contracts with suppliers in
2024;
• review of correspondence with relevant authorities (e.g. relating to compliance with
anti-bribery and anti-competition laws and regulations in jurisdictions where the Company
does business);
• evaluation of (potential) lawsuits identified or suspected by the Company.
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We considered available information and made
enquiries of relevant executives, directors,
internal audit, legal, compliance, tender desk,
local management and the Supervisory Board.
The fraud risks we identified, enquiries and
other available information did not lead to
specific indications for fraud or suspected fraud
potentially materially impacting the view of the
financial statements.
Our audit response related to risks of
non-compliance with laws and regulations
We performed appropriate audit procedures
regarding compliance with the provisions of
those laws and regulations that have a direct
effect on the determination of material amounts
and disclosures in the financial statements.
Furthermore, we assessed factors related to the
risks of non-compliance with laws and
regulations that could reasonably be expected
to have a material effect on the financial
statements from our general industry
experience, through discussions with the
management board, reading minutes,
inspection of internal audit and compliance
reports and performing substantive tests of
details of classes of transactions, account
balances or disclosures.
We also inspected lawyers’ letters and
correspondence with regulatory authorities and
remained alert to any indication of (suspected)
non-compliance throughout the audit. Finally
we obtained written representations that all
known instances of non-compliance with laws
and regulations have been disclosed to us.
Our audit response related to going concern
As disclosed in section Basis of preparation in
Note 2 to the financial statements, the financial
statements have been prepared on a going
concern basis. When preparing the financial
statements, the Executive Board made a specific
assessment of the Company’s ability to continue
as a going concern and to continue its
operations for the foreseeable future.
We discussed and evaluated the specific
assessment with the Executive Board exercising
professional judgment and maintaining
professional skepticism. We considered whether
the Executive Board’s going concern
assessment, based on our knowledge and
understanding obtained through our audit of
the financial statements or otherwise, contains
all relevant events or conditions that may cast
significant doubt on the Company’s ability to
continue as a going concern. If we conclude that
a material uncertainty exists, we are required to
draw attention in our auditor’s report to the
related disclosures in the financial statements
or, if such disclosures are inadequate, to modify
our opinion.
Based on our procedures performed, we did not
identify material uncertainties about going
concern. Our conclusions are based on the audit
evidence obtained up to the date of our
auditor’s report. However, future events or
conditions may cause a company to cease to
continue as a going concern.
Our key audit matters
Key audit matters are those matters that, in our
professional judgment, were of most
significance in our audit of the financial
statements. We have communicated the key
audit matters to the Supervisory Board. The key
audit matters are not a comprehensive
reflection of all matters discussed.
Valuation of goodwill is not considered a key
audit matter for 2024 as the performance of the
related cash generating units reduced the risks
of material misstatement. In comparison with
previous year, there were no relevant changes to
our other key audit matters.
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Valuation of projects and revenue recognition
Risk Our audit approach Key observations
Royal BAM Group nv is involved in large and complex construction projects on
which the Company recognises revenue based on the cost-to-cost method. The
valuation of key projects and revenue recognition are significant to the financial
statements based on the quantitative materiality and the degree of
management judgment required to apply the cost-to-cost method for complex
construction projects. As disclosed in notes 3.1 and 6 to the consolidated
financial statements, under the cost-to-cost method, costs are recognised as
incurred and revenue is recognised on the basis of the proportion of total costs
at the reporting date to the estimated total costs of the contract.
The amount of project revenue, profit recognised as well as provisions for
onerous contracts in a year is dependent, inter alia, on the actual costs
incurred, the assessment of the measure of progress of (long-term) contracts
and the forecasted contract revenue and costs to complete of each project.
Furthermore, the amount of revenue and result are influenced by the valuation
of variation orders and claims. This often involves a high degree of judgment
due to the complexity of projects, uncertainty about costs to complete and
uncertainty about the outcome of discussions with clients on variation orders
and claims.
We presumed that there are risks of fraud in revenue recognition, in particular
related to revenues from construction contracts and property development.
We therefore considered this to be a key audit matter. The risk relates to
projects that are considered key (“key projects”) due to, amongst others, their
relative size and complexity.
Our audit procedures included obtaining an understanding of the internal control
environment of Royal BAM Group nv, evaluating implementation of relevant
controls, performing physical and digital site visits (using webcams), vouching
project valuations and challenging the Executive Board’s position for key projects
based on supporting documentation and Royal BAM Group nv’s accounting policy.
In connection with our component teams and based on our understanding of Royal
BAM Group, inquiries with management and other procedures, we have selected
projects which we deem “key projects” for our audit procedures.
For long-term contracts, we also compared the position that Royal BAM Group nv is
currently taking to the positions taken in previous year, to ensure consistency in
the valuation and to perform back testing on this estimate. During our procedures
we had an increased focus on the impact of challenging market conditions from
economic volatility, global political uncertainties due to international conflicts,
inflationary aspects and supply chain pressure. In cases where a high amount of
judgment is involved, we gained additional comfort by comparing the Executive
Board’s positions to opinions from external parties such as lawyers or surveyors.
For specifically complex projects we involved our own construction experts to
determine the reasonableness of the Executive Board’s estimations of variable
considerations and costs to complete.
Overall, in our view revenues are recognised
and projects have been valued in accordance
with EU-IFRSs.
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Investigation by the Dutch authorities
Risk Our audit approach Key observations
As disclosed under ‘Key risk areas’ in section Risk management and governance of
the annual report and in Note 33 to the consolidated financial statements, BAM
International was previously subject to an investigation by the Dutch Public
Prosecution Office (Openbaar Ministerie) into potential fraud and corruption at
some completed projects of BAM International. The Dutch Public Prosecution
Office closed the investigation and dismissed these suspicions in December 2024.
BAM had conducted its own internal review and BAM self-reported potentially
irregular payments. The Dutch Public Prosecution Office imposed a fine of €30.000
for these not properly recorded payments.
We tailored our risk analysis and designed our audit approach taking into
account expert advice from our in-house forensic specialists as well as our
external counsel. During 2024 we performed the following audit procedures:
• During the investigation, we evaluated steps taken by the Executive Board
which included amongst others an internal review
• During the investigation, we have inquired with the Company’s internal and
external counsel regarding the status of the ongoing investigation
• To corroborate the result of our inquiries we vouched information received
with objective evidence, our external counsel and we reviewed related
documentation
• We obtained information regarding the suspicions, including the official
reports of findings of the Dutch Public Prosecution Office and discussed
these suspicions with the Executive Board, Audit Committee and the
chairman of the Supervisory Board
• We furthermore tested manual journal entries and other transactions with
unusual characteristics using amongst other data-analytics tools
• Subsequent to the closing of the investigation and dismissal of the
suspicions, we inspected the communication by the Dutch Public
Prosecutions Office related to the dismissal of the suspicions
• We obtained the penalty order imposed by the Dutch Public Prosecution
Office in relation to payments which were not properly recorded in BAM
International’s administration
• We have evaluated the disclosures in the annual report related to the
investigation.
We concluded that the disclosures in the
financial statements appropriately reflects the
outcome and (financial) impact of the closed
investigation.
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Valuation of land and building rights
Risk Our audit approach Key observations
As per 31 December 2024, Royal BAM Group nv recognised land and building rights
(€ 269 million). Land and building rights are generally acquired at a premium on their
value in current condition.
As disclosed in Note 3.4 to the consolidated financial statements, the estimates
supporting the value of land and building rights relate to the future development of
prices of residential housing for terms that vary from one year to more than thirty
years, inherently creating significant estimation uncertainty. External parties,
appraisers and institutions are involved to support the positions of the Executive
Board.
Additionally, in Note 2.1.1 to the consolidated financial statements, Royal BAM Group
nv identified the impact on climate change to the valuation of land and building risks
as a potential financial risk for the long term.
We therefore considered this to be a key audit matter.
Our audit procedures included obtaining an understanding of the methods and
models used by Royal BAM Group nv in determining the net realizable value of land
and building rights, including the identification of relevant controls.
We involved our own valuation specialists to determine the reasonableness of the
assumptions and models used by Royal BAM Group nv to support the value of land
and building rights. We have assessed the calculations of the net realizable values
of the land and building rights and challenged the reasonableness and consistency
of the assumptions used by the Executive Board. We also determined consistency
with prior years and external appraisals and public information, such as plans and
decisions of government bodies.
We also evaluated the Executive Board’s assumptions concerning the future
development of prices of residential housing with independent expectations of
external parties, appraisers and institutions.
In our view the valuation applied by Royal BAM
Group nv is in accordance with EU-IFRSs.
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Report on other information included
in the annual report
The annual report contains other information in
addition to the financial statements and our
auditor’s report thereon.
Based on the following procedures performed,
we conclude that the other information:
• Is consistent with the financial statements and
does not contain material misstatements
• Contains the information as required by Part 9
of Book 2 of the Dutch Civil Code for the
management report (excluding the
sustainability statement) and the other
information as required by Part 9 of Book 2 of
the Dutch Civil Code and as required by
Sections 2:135b and 2:145 sub section 2 of the
Dutch Civil Code for the remuneration report.
We have read the other information. Based on
our knowledge and understanding obtained
through our audit of the financial statements or
otherwise, we have considered whether the other
information contains material misstatements. By
performing these procedures, we comply with
the requirements of Part 9 of Book 2 and Section
2:135b sub-Section 7 of the Dutch Civil Code and
the Dutch Standard 720. The scope of the
procedures performed is substantially less than
the scope of those performed in our audit of the
financial statements.
The Executive Board is responsible for the
preparation of the other information, including
the management report in accordance with Part
9 of Book 2 of the Dutch Civil Code and other
information required by Part 9 of Book 2 of the
Dutch Civil Code. The Executive Board and the
Supervisory Board are responsible for ensuring
that the remuneration report is drawn up and
published in accordance with Sections 2:135b and
2:145 sub section 2 of the Dutch Civil Code.
Report on other legal and regulatory
requirements and ESEF
Engagement
We were engaged by the shareholders meeting as
auditor of Royal BAM Group nv on 22 April 2015,
as of the audit for the year 2016 and have
operated as statutory auditor ever since that date.
No prohibited non-audit services
We have not provided prohibited non-audit
services as referred to in Article 5(1) of the EU
Regulation on specific requirements regarding
statutory audit of public-interest entities.
European Single Electronic Reporting Format (ESEF)
Royal BAM Group nv has prepared the annual
report in ESEF. The requirements for this are set
out in the Delegated Regulation (EU) 2019/815
with regard to regulatory technical standards on
the specification of a single electronic reporting
format (hereinafter: the RTS on ESEF).
In our opinion the annual report prepared in the
XHTML format, including the (partially)
marked-up consolidated financial statements as
included in the reporting package by Royal BAM
Group nv, complies in all material respects with
the RTS on ESEF.
The Executive Board is responsible for preparing
the annual report, including the financial
statements, in accordance with the RTS on ESEF,
whereby the Executive Board combines the
various components into a single reporting
package.
Our responsibility is to obtain reasonable
assurance for our opinion whether the annual
report in this reporting package complies with
the RTS on ESEF.
We performed our examination in accordance
with Dutch law, including Dutch Standard 3950N,
”Assurance-opdrachten inzake het voldoen aan
de criteria voor het opstellen van een digitaal
verantwoordingsdocument” (assurance
engagements relating to compliance with criteria
for digital reporting). Our examination included
amongst others:
• Obtaining an understanding of the Company’s
financial reporting process, including the
preparation of the reporting package
• Identifying and assessing the risks that the
annual report does not comply in all material
respects with the RTS on ESEF and designing
and performing further assurance procedures
responsive to those risks to provide a basis for
our opinion, including:
• Obtaining the reporting package and
performing validations to determine
whether the reporting package containing
the Inline XBRL instance document and the
XBRL extension taxonomy files, has been
prepared in accordance with the technical
specifications as included in the RTS on ESEF
• Examining the information related to the
consolidated financial statements in the
reporting package to determine whether all
required mark-ups have been applied and
whether these are in accordance with the
RTS on ESEF.
Description of responsibilities
regarding the financial statements
Responsibilities of the Executive Board and the
Supervisory Board for the financial statements
The Executive Board is responsible for the
preparation and fair presentation of the financial
statements in accordance with EU-IFRSs and Part
9 of Book 2 of the Dutch Civil Code. Furthermore,
the Executive Board is responsible for such
internal control as the Executive Board
determines is necessary to enable the
preparation of the financial statements that are
free from material misstatement, whether due to
fraud or error.
As part of the preparation of the financial
statements, the Executive Board is responsible
for assessing the Company’s ability to continue as
a going concern. Based on the financial reporting
framework mentioned, the Executive Board
should prepare the financial statements using the
going concern basis of accounting unless the
Executive Board either intends to liquidate the
Company or to cease operations, or has no
realistic alternative but to do so. The Executive
Board should disclose events and circumstances
that may cast significant doubt on the Company’s
ability to continue as a going concern in the
financial statements.
The Supervisory Board is responsible for
overseeing the Company’s financial reporting
process.
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Our responsibilities for the audit of
the financial statements
Our objective is to plan and perform the audit
engagement in a manner that allows us to obtain
sufficient and appropriate audit evidence for our
opinion.
Our audit has been performed with a high, but
not absolute, level of assurance, which means we
may not detect all material misstatements,
whether due to fraud or error during our audit.
Misstatements can arise from fraud or error and
are considered material if, individually or in the
aggregate, they could reasonably be expected to
influence the economic decisions of users taken
on the basis of these financial statements. The
materiality affects the nature, timing and extent
of our audit procedures and the evaluation of the
effect of identified misstatements on our
opinion.
We have exercised professional judgment and
have maintained professional skepticism
throughout the audit, in accordance with Dutch
Standards on Auditing, ethical requirements and
independence requirements. The Information in
support of our opinion section above includes an
informative summary of our responsibilities and
the work performed as the basis for our opinion.
Our audit further included among others:
• Performing audit procedures responsive to the
risks identified, and obtaining audit evidence
that is sufficient and appropriate to provide a
basis for our opinion
• Obtaining an understanding of internal control
relevant to the audit in order to design audit
procedures that are appropriate in the
circumstances, but not for the purpose of
expressing an opinion on the effectiveness of
the Company’s internal control
• Evaluating the appropriateness of accounting
policies used and the reasonableness of
accounting estimates and related disclosures
made by the Executive Board
• Evaluating the overall presentation, structure
and content of the financial statements,
including the disclosures
• Evaluating whether the financial statements
represent the underlying transactions and
events in a manner that achieves fair
presentation.
Communication
We communicate with the Supervisory Board
regarding, among other matters, the planned
scope and timing of the audit and significant
audit findings, including any significant findings
in internal control that we identify during our
audit. In this respect we also submit an additional
report to the Audit Committee of the Supervisory
Board in accordance with Article 11 of the EU
Regulation on specific requirements regarding
statutory audit of public-interest entities. The
information included in this additional report is
consistent with our audit opinion in this auditor’s
report.
We provide the Supervisory Board with a
statement that we have complied with relevant
ethical requirements regarding independence,
and to communicate with them all relationships
and other matters that may reasonably be
thought to bear on our independence, and where
applicable, related safeguards.
From the matters communicated with the
Supervisory Board, we determine the key audit
matters: those matters that were of most
significance in the audit of the financial
statements. We describe these matters in our
auditor’s report unless law or regulation
precludes public disclosure about the matter or
when, in extremely rare circumstances, not
communicating the matter is in the public
interest.
Utrecht, 19 February 2025
EY Accountants B.V.
Signed by
J.H.A. de Jong
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Our conclusion
We have performed a limited assurance
engagement on the consolidated sustainability
statement for 2024 of Koninklijke BAM Groep N.V.
based in Bunnik, the Netherlands (hereinafter:
the company or Royal BAM Group nv) in chapter 6
Sustainability statement of the accompanying
management report including the information
incorporated in the sustainability statement by
reference (hereinafter: the sustainability
statement).
Based on our procedures performed and the
evidence obtained, nothing has come to our
attention that causes us to believe that the
sustainability statement is not, in all material
respects:
• prepared in accordance with the European
Sustainability Reporting Standards (ESRS) as
adopted by the European Commission and
compliant with the double materiality
assessment process carried out by the
company to identify the information reported
pursuant to the ESRS; and
• compliant with the reporting requirements
provided for in Article 8 of Regulation (EU)
2020/852 (Taxonomy Regulation).
Our conclusion has been formed on the basis of
the matters outlined in this limited assurance
report.
Basis for our conclusion
We have performed our limited assurance
engagement on the sustainability statement in
accordance with Dutch law, including Dutch
Standard 3810N, “Assurance-opdrachten inzake
duurzaamheidsverslaggeving” (Assurance
engagements relating to sustainability
reporting), which is a specified Dutch standard
that is based on the International Standard on
Assurance Engagements (ISAE) 3000 (Revised),
“Assurance engagements other than audits or
reviews of historical financial information”.
Our assurance engagement was aimed to obtain
a limited level of assurance that the sustainability
statement is free from material misstatements.
The procedures vary in nature and timing from,
and are less in extent than for, a reasonable
assurance engagement. Consequently, the level
of assurance obtained in a limited assurance
engagement is substantially lower than the
assurance that would have been obtained had a
reasonable assurance engagement been
performed.
Our responsibilities in this regard are further
described in the section ‘Our responsibilities for
the limited assurance engagement on the
sustainability statement’ of our report.
We are independent of Royal BAM Group nv in
accordance with the Verordening inzake de
onafhankelijkheid van accountants bij assurance-
opdrachten (ViO, Code of Ethics for Professional
Accountants, a regulation with respect to
independence) and other relevant independence
regulations in the Netherlands. This includes that
we do not perform any activities that could result
in a conflict of interest with our independent
assurance engagement and we are not involved
in the preparation of the sustainability statement,
as doing so may compromise our independence.
Furthermore, we have complied with the
Verordening gedrags- en beroepsregels
accountants (VGBA, Dutch Code of Ethics for
Professional Accountants). The ViO and VGBA are
at least as demanding as the International code of
ethics for professional accountants (including
International independence standards) of the
International Ethics Standards Board for
Accountants (the IESBA Code) as relevant to
limited assurance engagements on sustainability
statements of public interest entities in the
European Union.
We believe that the assurance evidence we have
obtained is sufficient and appropriate to provide
a basis for our conclusion.
Emphasis of matter
The sustainability statement has been prepared in
a context of new sustainability reporting
standards, requiring entity-specific interpretations
and addressing inherent measurement or
evaluation uncertainties. In this context, we want
to emphasise the following matters:
Emphasis on the most significant uncertainties
affecting the quantitative metrics and monetary
amounts
We draw attention to paragraph “Estimations,
sources of estimation, and outcome uncertainty”
in chapter 6.2 General information and
sustainability reporting principles of the
sustainability statement that identifies the
quantitative metrics and monetary amounts that
are subject to a high level of measurement
uncertainty and discloses information about the
sources of measurement uncertainty and the
assumptions, approximations and judgements the
company has made in measuring these in
compliance with the ESRS. The significant
uncertainties relate to reliance on third party data,
resource inflows and scope 3 GHG emissions
(including the baseline number based on the 2019
year). The comparability of sustainability
information between entities and over time may
be affected by the lack of historical sustainability
information in accordance with the ESRS and by
the absence of a uniform practice on which to
draw, to evaluate and measure this information.
This allows for the application of different, but
acceptable, measurement techniques, especially
in the initial years.
Emphasis on the double materiality assessment
process
We draw attention to chapter 6.1 Approach to
sustainability reporting in the sustainability
statement. This disclosure explains future
improvements in the ongoing due diligence and
double materiality assessment process, including
robust engagement with affected stakeholders.
Due diligence is an on-going practice that
responds to and may trigger changes in the
company’s strategy, business model, activities,
business relationships, operating, sourcing and
selling contexts. The double materiality
assessment process requires the company to
make key judgments and use thresholds and may
also be impacted in time by sector-specific
standards to be adopted. Therefore, the
sustainability statement may not include every
impact, risk and opportunity or additional
entity-specific disclosure that each individual
stakeholder (group) may consider important in
its own particular assessment.
Our conclusion is not modified in respect of
these matters.
Limited assurance report of the independent auditor on the sustainability statement
To: the shareholders and supervisory board of Koninklijke BAM Groep N.V.
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Limitation to the scope of our
assurance engagement
In reporting forward-looking information in
accordance with the ESRS, the executive board
describes the underlying assumptions and
methods of producing the information, as well as
other factors that provide evidence that it
reflects the actual plans or decisions made by
the company (actions). Forward-looking
information relates to events and actions that
have not yet occurred and may never occur. The
actual outcome is likely to be different since
anticipated events frequently do not occur as
expected. We do not provide assurance on the
achievability of forward-looking information.
Our conclusion is not modified in respect of this
matter.
Responsibilities of the executive
board the supervisory board for the
sustainability statement
The executive board is responsible for the
preparation of the sustainability statement in
accordance with the ESRS, including the double
materiality assessment process carried out by the
company as the basis for the sustainability
statement and disclosure of material impacts, risks
and opportunities in accordance with the ESRS.
As part of the preparation of the sustainability
statement, the executive board is responsible for
compliance with the reporting requirements
provided for in Article 8 of Regulation (EU)
2020/852 (Taxonomy Regulation).The executive
board is also responsible for selecting and applying
additional entity-specific disclosures to enable
users to understand the company’s sustainability-
related impacts, risks or opportunities and for
determining that these additional entity-specific
disclosures are suitable in the circumstances and
in accordance with the ESRS.
Furthermore, the executive board is responsible
for such internal control as it determines is
necessary to enable the preparation of the
sustainability statement that is free from material
misstatement, whether due to fraud or error.
The supervisory board is responsible for
overseeing the sustainability reporting process
including the double materiality assessment
process carried out by the company.
Our responsibilities for the limited
assurance engagement on the
sustainability statement
Our responsibility is to plan and perform the
limited assurance engagement in a manner that
allows us to obtain sufficient and appropriate
assurance evidence for our conclusion.
We apply the applicable quality management
requirements pursuant to the Nadere
voorschriften kwaliteitsmanagement (NVKM,
regulations for quality management) and the
International Standard on Quality Management
(ISQM) 1, and accordingly maintain a
comprehensive system of quality management
including documented policies and procedures
regarding compliance with ethical requirements,
professional standards and other relevant legal
and regulatory requirements.
Our limited assurance engagement included
amongst others:
• Performing inquiries and an analysis of the
external environment and obtaining an
understanding of relevant sustainability themes
and issues, the characteristics of the company,
its activities and the value chain and its key
intangible resources in order to assess the
double materiality assessment process carried
out by the company as the basis for the
sustainability statement and disclosure of all
material sustainability-related impacts, risks and
opportunities in accordance with the ESRS
• Obtaining through inquiries a general
understanding of the internal control
environment, the company’s processes for
gathering and reporting entity-related and value
chain information, the information systems and
the company’s risk assessment process relevant
to the preparation of the sustainability
statement and for identifying the company’s
activities, determining eligible and aligned
economic activities and prepare the disclosures
provided for in Article 8 of Regulation (EU)
2020/852 (Taxonomy Regulation), without
obtaining assurance information about the
implementation or testing the operating
effectiveness of controls
• Assessing the double materiality assessment
process carried out by the company and
identifying and assessing areas of the
sustainability statement, including the
disclosures provided for in Article 8 of
Regulation (EU) 2020/852 (Taxonomy
Regulation), where misleading or unbalanced
information or material misstatements, whether
due to fraud or error, are likely to arise (‘selected
disclosures’). Designing and performing further
assurance procedures aimed at assessing that
the sustainability statement is free from material
misstatements responsive to this risk analysis.
• Considering whether the description of the
double materiality assessment process in the
sustainability statement made by the executive
board appears consistent with the process carried
out by the company
• Determining the nature and extent of the
procedures to be performed for the group
components and locations. For this, the nature,
extent and/or risk profile of these components
are decisive
• Performing analytical review procedures on
quantitative information in the sustainability
statement, including consideration of data and
trends
• Assessing whether the company’s methods for
developing estimates are appropriate and have
been consistently applied for selected disclosures.
We considered data and trends, however our
procedures did not include testing the data on
which the estimates are based or separately
developing our own estimates against which to
evaluate the executive board’s estimates
• Analyzing, on a limited sample basis, relevant
internal and external documentation available to
the company (including publicly available
information or information from actors
throughout its value chain) for selected
disclosures
• Reading the other information in the annual
report to identify material inconsistencies, if any,
with the sustainability statement
• Considering whether the disclosures provided to
address the reporting requirements provided for
in Article 8 of Regulation (EU) 2020/852
(Taxonomy Regulation) for each of the
environmental objectives, reconcile with the
underlying records of the company and are
consistent or coherent with the sustainability
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statement, appear reasonable, in particular
whether the eligible economic activities meet
the cumulative conditions to qualify as aligned
and whether the technical screening criteria are
met, and whether the key performance
indicators disclosures have been defined and
calculated in accordance with the Taxonomy
reference framework, and comply with the
reporting requirements provided for in Article 8
of Regulation (EU) 2020/852 (Taxonomy
Regulation), including the format in which the
activities are presented
• Considering the overall presentation, structure
and fundamental qualitative characteristics of
information (relevance and faithful
representation: complete, neutral and accurate)
reported in the sustainability statement,
including the reporting requirements provided
for in Article 8 of Regulation (EU) 2020/852
(Taxonomy Regulation)
• Considering, based on our limited assurance
procedures and evaluation of the evidence
obtained, whether the sustainability statement
as a whole, is free from material misstatements
and prepared in accordance with the ESRS.
Communication
We communicate with the supervisory board
regarding, among other matters, the planned
scope and timing of the assurance engagement
and significant findings that we identify during
our assurance engagement.
Utrecht, 19 February 2025
EY Accountants B.V.
Signed by J.H.A. de Jong
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(Summary of Article 31 of the Articles of Association)
From the profit achieved in any financial year, an
amount will first be distributed, where possible,
on the class B cumulative preference shares,
calculated by applying the percentage stated
below to the mandatory amount paid up on
those shares as at the start of the financial year
for which the distribution is made. The
percentage referred to above will be equal to
the average of the Euribor rates for money
market loans with a maturity of twelve months
– weighted according to the number of days for
which these rates prevailed – during the
financial year for which the distribution is made,
plus one percentage point. Euribor refers to the
Euro Interbank Offered Rate as determined and
published by the European Central Bank.
Subsequently, if possible, a dividend will be
distributed on each financing preference share
of a certain series, with due consideration of the
provisions of this article, equal to an amount
calculated by applying a percentage to the
nominal amount of the financing preference
share concerned at the start of that financial
year, plus the amount of share premium paid in
on the financing preference share issued in the
series concerned at the time of initial issue of
the financing preference shares of that series,
less the amount paid out on each financing
preference share concerned and charged to the
share premium reserve formed at the time of
issue of the financing preference shares of that
series prior to that financial year.
If and to the extent that a distribution has been
made on the financing preference shares
concerned in the course of the year and charged
to the share premium reserve formed at the
time of issue of the financing preference shares
of the series concerned, or partial repayment
has been made on such shares, the amount of
the distribution will be reduced pro rata over the
period concerned according to the amount of
the distribution charged to the share premium
reserve and/or the repayment with regard to the
amount referred to in the preceding sentence.
The calculation of the dividend percentage for
the financing preference shares of a certain
series will be made for each of the series of
financing preference shares referred to below, in
the manner set forth for the series concerned.
Series FP1 to FP4
The dividend percentage will be calculated by
taking the arithmetic mean of the yield to
maturity on euro government loans issued by
the Kingdom of the Netherlands with a
remaining term matching as closely as possible
the term of the series concerned, as published in
the Euronext Prices Lists, plus two percentage
points.
Series FP5 to FP8
The dividend percentage will be equal to the
average of the Euribor rates for money market
loans with a maturity of twelve months –
weighted according to the number of days for
which these rates prevailed – during the
financial year for which the distribution is made,
plus two percentage points.
The above percentages may be increased or
reduced by an amount of no more than 300
basis points.
The above percentages apply for the following
periods: series FP1 and FP5: five years; series FP2
and FP6: six years; series FP3 and FP7: seven
years and series FP4 and FP8: eight years. After a
period expires, the percentage will be modified
in accordance with the rules laid down in Article
31 paragraph 6(c) of the Articles of Association.
The Supervisory Board shall determine, based
on a proposal by the Executive Board, what part
of the profit remaining after application of the
above provisions will be added to the reserves.
The part of the profit that remains thereafter is
at the disposal of the General Meeting, subject
to the provision that no further dividends will be
distributed on the preference shares and with
due consideration of the other provisions of
Article 31 of the Articles of Association.
8.2
Articles of Association provisions governing the distribution of profit
Sustainability insight
BAM Bouw en Techniek has signed a letter of
intent with other construction and real estate
companies to build exclusively with low-carbon
concrete in the future.
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P. (Paul) van Riel (1956)
Mr Van Riel has been a member of the
Foundation’s board since 2019. He is a Dutch
national. He is a former CEO and chairman of the
Board of Management of Fugro N.V. He is
chairman of the Supervisory Board of NV HVC
and chairman of the Board of Stichting
Preferente Aandelen Arcadis N.V.
Royal BAM Group nv has taken the following
measures to protect itself against any undesired
developments that might have an impact on the
independence, continuity and/or identity of the
Company and the group of companies
associated with the Company.
Pursuant to a resolution passed by the General
Meeting held on 12 June 1972, the Articles of
Association include the possibility of issuing
preference shares. Stichting Aandelenbeheer
BAM Groep (hereafter referred to as ‘the
Foundation’) was founded with a view to this
possibility in 1978. The objective of the
Foundation is to look after the interests of the
Group. Specifically, the Foundation seeks to
ensure that the interests of the Company,
the Group and all their stakeholders are
safeguarded as much as possible, and that
influences which could undermine the
independence and/or continuity and/or identity
of the Group and which conflict with those
interests are averted to the best of the
Foundation’s ability. The Foundation attempts
to achieve this objective by acquiring and
holding class B cumulative preference shares in
the Company’s capital, by exercising the rights
connected with those shares, and/ or by using
its right of enquiry.
As announced at the General Meeting held on 4
June 1992 and considered at the General
Meeting on 8 June 1993, the Company granted
the Foundation an option to acquire class B
cumulative preference shares in the Company’s
capital on 17 May 1993. This option was granted
up to such an amount as the Foundation might
require, subject to a maximum of a nominal
amount that would result in the total nominal
amount of class B cumulative preference shares
in issue and not held by the Company equalling
no more than ninety-nine point nine per cent
(99.9%) of the nominal amount of the issued
share capital in the form of shares other than
class B cumulative preference shares and not
held by the Company at the time of exercising
the right referred to above. The board of the
Foundation has the exclusive right to determine
whether or not to exercise this right to acquire
class B cumulative preference shares. No class B
cumulative preference shares have been issued
at this time. On 6 October 2008, the Company
granted the Foundation the right, under Article
2:346(c) of the Dutch Civil Code, to submit a
petition as referred to in Article 2:345 of the
Dutch Civil Code (right of enquiry).
The Supervisory Board and the Executive Board
reserve the right, in the interests of the
Company and its associated companies, to
resolve to take alternative measures in order to
protect the Group against influences that might
be regarded by the Supervisory Board and the
Executive Board, after balancing the interests of
the Company and all of the stakeholders in the
Group, as being potentially damaging to the
independence, continuity and/or identity of the
Group.
The Foundation’s board consists of three
members who are appointed by the
Foundation’s board, after notification to the
Executive Board. The Foundation is supported
by its own legal and communication advisors.
The composition of the board at the end
of 2024 was:
J.J. Nooitgedagt, chairman;
F.K. Buijn;
P. van Riel.
The chairman of the Foundation’s board receives
an annual fee of
€12,000 from the Foundation. The Foundation
pays an annual fee of €10,000 to each of the
other members of its board.
The particulars of the board members at the end
of 2023 were as follows:
J.J. (Jan) Nooitgedagt (1953)
Mr Nooitgedagt has served on the Foundation’s
board since 2017 and was appointed chairman in
that same year. He is a Dutch national. A former
member of the Executive Board and chief
financial officer of Aegon, Mr Nooitgedagt is
chairman of the Supervisory Board of PostNL
N.V., chairman of the Supervisory Board of
Invest-NL and chairman of the Board of Stichting
Beschermingspreferente aandelen Fugro.
F.K. (Frederik) Buijn (1950)
Mr Buijn has been a member of the Foundation’s
board since 2012. He is a Dutch national. Due to
his long-term experience as a qualified civil-law
notary Mr Buijn is well versed in corporate law.
Mr Buijn is a member of the Board of Stichting
Preferente Aandelen Arcadis N.V. He is involved
in various family companies as chairman or as a
member of foundation trust offices.
8.3
Anti-takeover measures
Subsidiaries %
BAM Groep Nederland bv*, Bunnik (Netherlands) 100
BAM Nederland bv*, Bunnik (Netherlands) 100
BAM Bouw en Techniek bv*, Bunnik (Netherlands) 100
BAM Residential bv*, Bunnik (Netherlands) 100
uniting the activities of:
BAM Wonen bv*, Bunnik 100
Homestudios bv*, Bunnik 100
AM bv*, Utrecht 100
BAM Specials bv*, Bunnik (Netherlands) 100
uniting the activities of:
BAM Energie & Water bv*, Nieuwleusen 100
BAM Telecom bv*, Zwammerdam 100
BAM Infra Nederland bv*, Gouda (Netherlands) 100
uniting the activities of:
BAM Infra bv*, Gouda 100
BAM Infra Rail bv*, Bunnik 100
BAM Infraconsult bv*, Bunnik 100
BAM Belgium bv, Berchem, Antwerp (Belgium) 100
uniting the activities of:
BAM Interbuild bv, Berchem, Antwerp 100
Kairos nv, Antwerp 100
BAM Construct & Ventures UK Ltd, Hemel Hempstead (United Kingdom) 100
Uniting the activities of:
BAM Construction Ltd, Hemel Hempstead 100
BAM FM Ltd, Glasgow, Strathclyde 10
BAM Nuttall Ltd, Camberley, Surrey (United Kingdom) 100
8.4 List of principal subsidiaries, joint arrangements and associates
Joint arrangements %
Invesis bv, Bunnik (Netherlands) 50.0
A list of associates as referred to in Sections 379 and 414, Book 2, of the Netherlands Civil Code
has been deposited at the Office of the Trade Register in Utrecht.
* In respect of these subsidiaries, Royal BAM Group nv has deposited a declaration
of joint and several liability pursuant to Section 403, Part 9, Book 2 of the Netherlands Civil Code.
Sustainability insight
As partner of AmplifyHER, BAM was
represented by CEO Ruud Joosten, CHRO
Sabine van Hooijdonk, and thirty colleagues
during the 2024 AmplifyHER event in
Amsterdam, focusing on creating inclusive
workplaces and inspiring future (female)
leaders.
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Cockett Wick seawall
As a key part of the Essex and South Suffolk shoreline management plan,
the Cockett Wick seawall provides long-term flood resilience, supporting
aspirations for further growth and regeneration of seaside towns.
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200
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Construction of a new 6 storey
Hampton by Hilton Hotel,
including associated MEP and
external works, as part of.
Nuneaton town centre’s
Abbey Street development.
Nuneaton,
Warwickshire,
BAM Construct UK
200
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9.1 Royal BAM Group nv shares
75 Ordinary share price movement
(in €)
2024
20232021 20222020
BAM AEX AScX
0
1
2
3
4
5
76
Geographical distribution of shareholders on 31 December 2024
11% 47% 10% 19% 13%
0
100%90%80%70%60%50%40%30%20%10%
Netherlands
United Kingdom
Retail, primarily Netherlands
Other
United States
BAM has been listed on Euronext Amsterdam
since 1959 (symbol: BAMNB; ISIN code:
NL0000337319). The share is included in the
AScX index, and options are traded by Liffe, the
Euronext derivatives exchange. The market
capitalisation at year-end 2024 was €1.1 billion
(year-end 2023: €651 million).
Share price and trading in 2024
BAM’s share price at year-end 2024 was €4.20,
which was 74% above the closing price at
year-end 2023 (€2.42). The AScX index ended
the year up 7%. BAM’s share price has increased
by 56% over the last five years. By way of
comparison, the AEX and the AScX indexes rose
by 44% and 20% respectively in the same period.
Graph 75 shows the history of the BAM
ordinary share price over the past five years.
The average daily trade in BAM shares was 829
thousand shares (2023: 1.8 million). In 2024, the
average daily trade in BAM shares amounted to
€3.2 million million (2023: €3.9 million).
Dividend policy
BAM has a dividend policy to distribute a
dividend reflecting between 30 and 50% of the
net result for the year. When deciding upon the
dividend, the Company considers the balance
sheet structure supporting the strategic agenda.
The proposal is to distribute a dividend of €0.25
over 2024 (dividend 2023: €0.20).
Shareholders
BAM closely monitors developments in its
shareholder base through market information
and a yearly shareholder identification report.
Under the Dutch Financial Supervision Act,
shareholders must disclose to the Dutch
Authority for the Financial Markets (AFM) when
they hold 3% or more of shares and when they
transfer to a different threshold level.
At year-end 2024, the aggregate holdings of
funds controlled by Acadian Asset Management,
Ahlström Invest bv, Dimensional Fund Advisors,
Moneta Asset Management and The Vanguard
Group each surpassed 3% in BAM’s share capital.
BAM holds 20.5 million treasury shares, of
which 3.9 million shares are allocated for the
long-term incentive plan.
Investor relations policy
The purpose of the Group’s investor relations
policy is to provide accurate, transparent and
consistent information in a timely manner to
stakeholders, which includes existing and
potential shareholders, financial institutions,
brokers and the media. BAM intends to ensure
there is a clear understanding of its strategy,
performance and decisions to create awareness
and confidence. Information is made available
through the annual report, quarterly financial and
other information, press releases and
presentations to investors, which are all available
on the Company’s website. BAM discloses
price-sensitive information without delay through
a press release and on its website.
BAM has embedded a closed period in its
reporting calender. In this period, the Company
does not engage with investors, analysts or the
press about general business matters. This closed
period starts six weeks prior to the publication of
each annual report and half-year report and three
weeks prior to the publication of the first and
third quarter trading updates.
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77 Information per share (in € per share, unless otherwise indicated)
2024 2023 2022 2021 2020
Number of ordinary shares ranking for dividend 263,523,822 268,978,254 268,119,569 273,296,017 273,296,017
Average number of ordinary shares 268,969,034 269,966,098 271,783,810 273,296,017 273,296,017
Net result ranking for dividend 0.31 0.65 0.67 0.07 (0.45)
Equity attributable to shareholders 3.40 3.42 3.02 2.39 2.13
Dividend
1
0.25 0.20 0.15 - -
Pay-out (in %) 81 30.7 22.3 - -
Dividend yield (in %)
2
6.0 8.3 6.9 - -
Highest closing price 4.71 2.68 3.44 3.03 2.68
Lowest closing price 2.41 1.76 1.97 1.61 1.03
Price on 31 December 4.20 2.42 2.17 2.69 1.71
Average daily trade (in number of shares) 829,000 1,785,000 2,151,000 2,021,000 3,331,000
Market capitalisation at year-end (x €1,000)
3
1,106,800 650,927 581,819 735,166 465,970
Number of outstanding ordinary shares
BAM has a policy of buying back shares to meet
its obligations under various long-term incentive
plans and to avoid dilution. During 2024, the
number of shares qualifying for dividends
decreased by 5.5 million as a result of buy backs.
1
Dividend proposal 2024.
2
Based on share price at year-end.
3
Based on total number of ordinary shares in issue.
Key financial dates
2025 2026
8 May Annual general meeting of shareholders 19 February Publication of annual results 2025
8 May Trading update first quarter 2025 7 May Annual general meeting of shareholders
24 July Publication of half-year results 2025 7 May Trading update first quarter 2026
6 November Trading update first nine months 2025 30 July Publication of half-year results 2026
5 November Trading update first nine months 2026
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9.2 Ten-year overview
1
(x € million, unless otherwise stated) 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015
Revenue 6,455.7 6,270.5 6,618.2 7,315.3 6,768.2 7,209.1 7,207.8 6,603.7 6,976.1 7,422.9
Adjusted EBITDA
2
333.3 304.3 350.2 278.4 200.8 235.4 213.7 113.1 159.8 137.1
Adjusted EBITDA margin (in %)
2
5.2 4.9 5.3 3.8 2.9 3.3 3.0 1.7 2.3 1.8
Operating result 58.8 170.7 213.4 78.1 (221.3) 52.3 105.2 28.6 32.9 (10.7)
Result before tax 67.3 183.6 215.7 65.8 (236.9) 50.6 114.5 58.3 60.1 13.3
Net result 82.2 175.0 177.7 17.0 (122.4) 12.0 24.4 13.4 49.2 11.0
• from continuing operations 62.2 175.0 177.7 17.0 (272.0) 12.0 24.4 13.4 49.2 11.0
• from discontinued operations 20.0 - - - 149.7 - - - - -
• attributable to the shareholders of the Company 82.2 175.0 179.6 18.1 (122.2) 11.8 23.8 12.5 46.8 10.2
Basic earnings per share (in €1) 0.31 0.65 0.66 0.07 (0.45) 0.04 0.09 0.05 0.17 0.04
Diluted earnings per share (in €1) 0.30 0.64 0.65 0.07 (0.45) 0.04 0.09 0.05 0.17 0.04
Dividend per ordinary share (in €1)
3
0.25 0.20 0.15 - - - 0.14 0.10 0.09 0.02
Equity attributable to the shareholders of the Company 895.5 920.5 810.6 653.6 583.4 628.4 729.0 852.2 834.3 902.1
Subordinated convertible bonds
- - - - 118.7 120.5 117.6 115.0 112.5 124.3
Capital base 895.5 920.5 810.6 653.6 702.1 748.9 846.7 967.2 946.7 1,026.5
Total assets 3,891.0 3,932.0 3,819.4 4,495.9 5,244.5 4,540.2 4,578.0 4,571.2 4,812.0 4,852.2
Capital ratio (in %) 23.0 23.4 21.2 14.5 13.4 16.5 18.5 21.2 19.7 21.2
Capital employed 1,317.6 1,345.7 1,194.3 1,272.6 1,957.3 1,536.1 1,388.7 1,520.1 1,657.3 1,804.7
Return on capital employed (in %) 5.8 13.7 16.8 5.6 (4.2) 3.4 7.5 2.8 2.9 0.2
Additions to property, plant and equipment 72.9 80.0 92.9 64.9 58.7 82.3 83.1 82.4 61.9 64.6
Additions to right-of-use assets 102.2 107.4 43.7 51.3 78.4 118.1 - - - -
Depreciation property, plant and equipment 41.9 39.3 39.6 51.4 54.0 54.0 63.8 55.0 60.3 66.5
Depreciation right-of-use assets 82.0 77.7 68.5 85.6 99.2 99.7 - - -
Amortisation intangible assets 3.9 4.3 8.6 8.4 6.0 5.9 6.0 4.1 4.1 4.1
Impairments (including from joint ventures and associates) 114.5 2.6 15.0 48.5 74.7 18.5 23.8 4.8 50.7 39.1
Order book 13,008 9,809 10,038 13,243 13,760 12,659 12,692 11,609 10,193 11,480
Average number of employees (in FTE) 13,172 13,344 14,608 17,001 18,731 19,433 20,194 19,720 20,370 21,916
1
All amounts are as reported in the respective year.
2
From continued and discontinued operations.
3
For 2023 dividend proposal.
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Capital employed Non-current assets plus net working capital plus cash and cash equivalents.
Capital employed is determined as follows:
2024 2023
Non-current assets
1,291,283 1,356,124
Plus: net working capital
(737,241) (767,741)
Plus: cash and cash equivalents 763,421 757,333
Capital employed 1,317,463 1,345,716
Capital ratio Capital base divided by total assets. Capital ratio is determined as follows:
2024 2023
Capital base
895,513 920,495
Total assets 3,891,008 3,932,020
Capital ratio 23.0% 23.4%
Cash flow from
working capital
The sum of decrease/(increase) in inventories, decrease/(increase) in trade and
other receivables and increase/(decrease) in trade and other payables as
presented in the consolidated statement of cash flows. Cash flow from working
capital is determined as follows:
2024 2023
Decrease/(increase) in inventories
15,612 20,269
Decrease/(increase) in trade and other
receivables
26,314 (97,004)
Increase/(decrease) in trade and other
payables (39,032) (22,726)
Cash flow from working capital 2,921 (99,461)
EBIT Earnings before interest and tax. The amount is the equivalent of operating result
as specified in the reconciliation of adjusted EBITDA.
General Meeting Annual general meeting of shareholders.
Liquidity position The amount of cash and cash equivalents.
9.3 Glossary
Adjusted EBITDA Result before tax, impairment charges, interest, depreciation and amortisation
and excluding restructuring costs and pension one-off results. Adjusted EBITDA is
determined as follows:
2024 2023
Result before tax
67,330 183,567
Result from discontinued operations
20,069 -
Finance result (8,538) (12,839)
Operating result (“EBIT”)
78,861 170,728
Impairments
4,433 3,559
Share in impairment charges of associates
and joint ventures
110,050 (917)
Depreciation and amortisation 127,769 121,293
EBITDA
321,113 294,663
Restructuring costs
12,236 9,653
Pension one-off - -
Adjusted EBITDA 333,349 304,316
Some measures included in this annual report are not IFRS measures and are generally referred to as
non-IFRS measures. The Group uses these as internal measures of performance to compare against
budget, prior year and/or latest internal forecasts. The non-IFRS measures are reported in this annual
report, as the Group believes they will support stakeholders to understand the Group’s financial position
and results of operations. Included below are reconciliations of the respective non-IFRS measure to the
closest financial measure under IFRS for stakeholders to appropriately understand their nature. Amounts
are in thousands of euro, unless stated otherwise.
Capital base Equity attributable to the shareholders of the Company plus subordinated
convertible bond. Capital base is determined as follows:
2024 2023
Equity attributable to the
shareholders of the Company
895,513 920,495
Subordinated convertible bond - -
Capital base 895,513 920,495
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Return on capital
employed (ROCE)
EBIT (on a rolling year basis) divided by the average four-quarter capital
employed. Return on capital employed is determined as follows:
2024 2023
EBIT
78,861 170,728
Average four-quarter capital employed 1,357,384 1,244,433
ROCE 5.8% 13.7%
Solvency Equity attributable to shareholders of the Company, divided by total assets:
2024 2023
Equity attributable to the
shareholders of the Company
895,513 920,495
Total assets 3,891,010 3,932,020
Solvency 23.0% 23.4%
Trade working
capital
Net working capital minus land and building rights, property development,
non-trade receivables and payables (PPP receivables, other financial assets, other
receivables, taxes, derivative financial instruments, provisions, other liabilities and
assets and liabilities held for sale). Trade working capital is determined as follows:
2024 2023
Net working capital
(737,137) (767,743)
Minus: land and building rights
(269,143) (236,777)
Minus: property development
(179,905) (205,689)
Minus: non-trade receivables
(227,847) (135,810)
Plus: non-trade payables 476,175 524,169
Trade working capital (937,857) (821,846)
Trade working
capital efficiency
The average four-quarters’ trade working capital divided by revenue (on a rolling
year basis). TWC efficiency is determined as follows:
2024 2023
Average four-quarters’ trade working capital (753,070) (824,778)
Revenue 6,454,951 6,270,474
TWC efficiency (11.7%) (13.2%)
Net (debt) / cash
Cash and cash equivalents minus (non-current and current) borrowings minus
(non-current and current) lease liabilities. Net (debt) / cash is determined as follows:
2024 2023
Cash and cash equivalents
763,421 757,333
Minus: non-current borrowings
(59,838) (54,513)
Minus: current borrowings
(7,012) (7,061)
Minus: non-current lease liabilities
(178,100) (160,902)
Minus: current lease liabilities (78,263) (73,313)
Net (debt) / cash 440,208 461,544
Net (debt) / cash
before lease
liabilities
Net (debt) / cash plus (non-current and current) lease liabilities. Net (debt) / cash
before lease liabilities is determined as follows:
2024 2023
Net (debt) / cash
440,208 461,544
Plus: current lease liabilities
78,263 73,313
Plus: non-current lease liabilities 178,100 160,902
Net (debt) / cash before lease liabilities 696,571 695,759
Net working
capital
Current assets (excluding cash and cash equivalents) minus current liabilities
(excluding current borrowings and current lease liabilities). Net working capital is
determined as follows:
2024 2023
Current assets
2,599,725 2,575,896
Minus: cash and cash equivalents
(763,421) (757,333)
Minus: current liabilities
(2,658,716) (2,666,680)
Plus: current borrowings
7,012 7,061
Plus: current lease liabilities 78,263 73,313
Net working capital (737,137) (767,743)
Order book The amount of expected revenue from contracts with customers, for the next
five years, that has been secured but has not yet been recognised as revenue as
the respective performance obligation has not yet been satisfied. Order book is
further specified in note 6.3 of the consolidated financial statements.
Royal BAM Group nv
Runnenburg 9, 3981 AZ Bunnik
P.O. Box 20, 3980 CA Bunnik, the Netherlands
+31 (0)30 659 89 88, info@bam.com, www.bam.com
Statutory office in Bunnik, the Netherlands
Trade register number 30058019
Layout and printing
Boulogne Jonkers Design, Zoetermeer, the Netherlands
Illustrations
Boulogne Jonkers Design - Michael Boulogne (cover image),
Broadwing Media, Fife Council - Andrew Beveridge,
Rijkswaterstaat, Sander Koning, Tomasz Kozak
