How To Understand And Understand The Culture Of Imtech

Transcription

1 Royal Imtech N.V. Sustainability Report

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3 Royal Imtech N.V. Sustainability Report Sustainability Report

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5 Content Preface from the CEO Imtech at a glance 07 Imtech profile 07 How we create value 08 The context of Corporate Social Responsibility 11 Introduction Corporate Social Responsibility at Imtech Summary of the CSR data Domains and topics Market 21 GreenTech 23 Supply Chain 24 Environment 27 Carbon footprint (CO 2 ) 28 Employees 31 Business Ethics 33 Health & Safety 37 Society 39 Corporate Citizenship About this report 43 Independent Auditor s Assurance Report 46 Attachments 49 GRI G4 table 50 Glossary 58 Sustainability Report

6 Key figures 55% of our most material projects (in size and risks) have a GreenTech label. (50% in 2013) The percentage of the cross-divisional framework contracts with the Code of Sustainable Supply rose from to 66% 61% Our total CO 2 footprint in 2014 is 78.7kton (85.5 kton in 2013) in % derives from mobility and 18% is from our locations worldwide. 75% of our employees participated in an integrity training programme. In 2014 we had 429 Lost Time Injuries (2013: 471) and 1 fatal injury (2013:0). In the Transparency Benchmark of the Dutch Ministry of Economic Affairs Imtech rose from 88th the place Top 50 to the The average sick leave percentage of Imtech employees is 3.5% (2013: 3.4%) 04 Sustainability Report 2014

7 Preface from the CEO Dear Reader, The year 2014 has been an important one for Imtech in its on-going journey to recovery. Thanks to the confidence and support of our stakeholders and the continuous efforts of our people, we have stabilised our financial position and strengthened the sustainability of our business. The sale of our ICT division and rights issue, along with the implementation of new agreements with our lenders, have normalised our financial situation. Having turned this important corner, we are now focused entirely on making a difference for our customers, by providing the highest quality solutions and services. Despite these advances, our year was also tragically marked by the loss of one of our colleagues at Imtech VS Teknik in Sweden. Our safety culture is one of our top priorities, so we are determined to learn from this incident and reinforce our practices to better protect the safety and wellbeing of our people and contractors. To this end, we held Safety Stop discussions at all our project sites worldwide and accelerated the implementation of new procedures and trainings. These efforts are described in more detail in chapter 4 of this report. The subject of ethics also continued to receive our close attention, as we dealt with legacy issues from the past. We are pleased to report that the steps taken since 2013 to improve our approach to governance, risk and compliance, and to promote a culture of transparency and personal responsibility are already yielding results. We are seeing the steady transformation of our culture, into one that is fully aligned with our company values. At the same time, our markets also continued to respond to long-term global challenges, such as changing demographics, climate change and environmental degradation. As a leading technical services provider, we are convinced that we have an important role to play in helping our customers address these issues. Our use of innovative and more sustainable technology is central in this regard, as are our internal measures to increase energy efficiency. Our GreenTech projects are good examples of this trend, which you can also read more about in this report. This is our second stand-alone Sustainability Report. It contains an overview of our performance against key social and environmental targets and describes our plans for improving on them in the years ahead. Although we recognise that Imtech still has much to accomplish in recovering its operational performance, we remain committed to our sustainability goals. With our strong fundamentals in place, we look forward to continue to make a positive contribution for the benefit of our stakeholders. We are seeing the steady transformation of our culture into one that is fully aligned with our company values. Throughout the year, many of our markets continued to experience high levels of uncertainty. This required us to continue adapting our organisation to meet these conditions in the best possible way. This regrettably resulted in job losses, which have been necessary to secure our competitiveness in the market and the future of our company. Gouda, 17 March 2015 Gerard van de Aast, CEO Sustainability Report

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9 Imtech At a glance Imtech profile Royal Imtech N.V. is a European technical services provider in the fields of electrical, automation and mechanical solutions. With approximately 22,000 employees, Imtech holds attractive positions in the buildings and industry markets in the Netherlands, Belgium, Luxembourg, Germany, Eastern Europe, Sweden, Norway, Finland, the UK, Ireland and Spain, the European market of Traffic as well as in the global marine market. Imtech offers integrated and multidisciplinary total solutions that lead to better business processes and more efficiency for customers and the customers they, in their turn, serve. Imtech also offers solutions that contribute towards a sustainable society - for example, in the areas of energy, the environment, water and traffic. Imtech shares are listed on Euronext Amsterdam. Our core value proposition: Electrical Automation Mechanical Design Engineering System Integration Installation Testing & Commissioning Operate & Maintain Buildings Industrial Traffic & Infra Marine Energy Water Sustainability Report

10 How we create value We create economic, social and environmental value through delivering integrated technical solutions. The expertise of our employees assist our customers in reducing the total cost of ownership of their facilities and help them achieve their sustainability goals. We aim to create an environment in which our people feel passionate about taking ownership and delivering results for the communities in which we operate. input Human capital Intellectual capital (expertise of our employees) 22,193 (FTEs) Energy + mobility CO2 footprint: 78.7 kton CO2 through assets / locations: 14.2 kton CO2 through our fleet: 64.5 kton Procurement 18% 82% Spend on raw materials & goods: 1,173 mln + 1,088 mln third parties Projects Prioritising margin over volume: 3.9 billion euro Customer intimacy and partnerships (joint ventures, (preferred) supplier(s) 08 Sustainability Report ,193 FTE 78.7 kton 1,173 mln billion es tri un co

11 our organisation output Financial key figures Employee skills Operational EBITDA margin: (0.8%) Operational EBITDA: (31.9) mln euro Cash flow: (213) mln euro ar M Customer value & retention Competences 55% Recurring business 100+ Incompany programs on operational excellence GRC Programme In du str ial 100+ Employee well-being Employee retention: 90% Sickness rate: 3.5% 75% GreenTech Almost 55% of total revenue of our most material projects (in size and risks) 55% 8x En 8 R&D / Test labs & Competence centres 3.5% er gy Innovation value Tr affi c& In fra 1 e-learning programme on integrity, critical thinking and loyalty: 75% covered 55% W at er Electrical + Mechanical + Automation, and integrated solutions Training human capital (213) mln in e Project management and execution (design, engineering, supply, assembly & construction, installation, commissioning, asset & site management, service & maintenance, training) 450 ld in gs Locations: approx. 450 in 35 countries Community value 83 initiatives in local-for-local corporate citizenship Bu i Assets Sustainability Report

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13 The context of Corporate Social Responsibility We operate in a worldwide business context that gives us the opportunity to work in a responsible way. The worldwide context determines the topics on which we focus. Context Imtech s Response CSR Topics at Imtech All over the world major challenges are being faced - how to protect dwindling natural resources and how to reduce greenhouse gases that harm the environment. As a technical services provider we can make a positive contribution by offering our customers innovative solutions. GreenTech We offer sustainable solutions for customers combating climate change and preserving biodiversity. We are convinced that new, innovative technology can play a key role in finding solutions. The driving forces in the GreenTech industry are five megatrends that will shape society and politics worldwide over the coming decades: demographic change, urbanisation, globalisation, scarcity of resources and climate change. As we work in a chain of partners we can influence and contribute towards achieving a responsible and sustainable supply chain. CO 2 emissions impact our climate. By identifying the source of our carbon emissions we can focus on reducing our negative impact. Supply Chain We have introduced our Code of Sustainable Supply and examine its effectiveness. CO 2 We have measured Imtech s global carbon footprint with the aim of reducing our emissions in various ways. The Governance, Risk and Compliance (GRC) rulings and legislation around the world are placing renewed emphasis on good governance and ethical behaviour. We strengthen our GRC framework in order to give employees guidance on handling ethical issues that might arise in the course of doing business. Business Ethics We have designed a programme that will lead to greater ethical awareness, underpin consistency in application and deal properly with ethical issues and dilemmas. Technical operations in the fields of energy, industry, infrastructure and buildings are subject to a variety of safety risks for those who do the work. We want to ensure that all our employees and any involved third parties are properly protected so that the risks of job-related accidents are limited. Health & Safety Safety is a top priority at Imtech. We have reinforced our Health & Safety plan, including corporate goals so as to continue building a proactive safety culture. The global rise of social media - which gives stakeholders more power, has resulted in a constant 24/7 real-time news flow that puts the spotlight on companies at all times. We communicate with stakeholders thus allowing them to address potential issues before they intensify and minimising the risk of blow-ups. Ultimately, a stakeholder engagement strategy helps us maintain our social license to operate. Corporate Citizenship We aim to communicate with our stakeholders transparently and frequently so a concern can be addressed before it becomes an issue. Worldwide local authorities are increasingly withdrawing from the concept of the welfare state and seeking to share the responsibility for citizens with local companies. We want to accept our responsibility by sharing our resources to help solve social challenges. We aim to support the local communities of which we are a part through investment in projects and knowledge exchange. Sustainability Report

14 Introduction At Imtech, Corporate Social Responsibility (CSR) means helping to meet the world s growing economic, environmental and social needs in responsible ways. We do that by focusing on business related topics where we can make a difference and create win-win situations. This is our second sustainability report that measures the performance of the entire organisation. This report has been written for our stakeholders customers, colleagues, shareholders, students, non-governmental organisations (NGOs), suppliers, partners and anyone who is interested in Imtech. In 2014 we focused on operational excellence and continued to improve the quality of our reporting process in order to build a solid basis for the further development of the topics that we address. We asked KPMG to provide limited assurance on selected indicators on our 2014 sustainability report. We continuously focus on further strengthening of our global approach on all CSR topics mentioned in this report. As we aim to add value to our customers by offering sustainable solutions, we asked their feedback on our services. In this report, we include quotes of customers about our service on various projects within our organisation. It highlights the economic, environmental and social value that we add in many different ways. During the year, our sustainability approach was discussed with various stakeholders in order to analyse the materiality of our topics. Based on those discussions we have set a number of new, more ambitious goals for the future. We would like to thank all the stakeholders who critically and constructively contributed towards this process. Together we are improving Imtech s performance. We would like to continue our dialogue and invite you to give us your feedback on our performance, either in meetings or via [email protected]. Dorien Wietsma Director Corporate Communication & CSR Royal Imtech N.V. 12 Sustainability Report 2014

15 Corporate Social Responsibility at Imtech At Imtech, Corporate Social Responsibility (CSR) means helping to meet the world s growing economic, environmental and social needs in responsible ways. We do that by focusing on business related topics where we can make a difference. Mission Our CSR mission is derived from Imtech s overall mission of developing technology that improves business and society. We aim to be the preferred technology partner of our customers through delivering technical solutions that help reduce the total cost of ownership of their facilities. Strategy In line with Imtech s overall strategy in which operational excellence is one of the cornerstones, the CSR strategy is designed to ensure that we obtain complete and reliable data on the non-financial topics we consider most critical for Imtech. In 2014 we further improved our reporting process. The CSR strategy is developed at a corporate level in close cooperation with our divisions. Our divisions are responsible for implementation in their specific situation at a local level. The strategy defines four domains in which we want to make a difference: market, environment, employees and society. In these domains we focus on 6 topics, each with key performance indicators that will enable us to measure our performance accurately and report the results. Chapter 4 of this report gives more information on the domains and topics, including our performance, targets and actions. Ambition We aim to create win-win situations for the market, the environment, our employees and society by introducing solutions that help customers achieve their sustainability goals; preserve the environment and scarce resources; enhance our employees well-being; and engage stakeholders and support local initiatives that solve social challenges. Governance and responsibilities The Board of Management is responsible for the CSR targets and performance. In 2014 the Supervisory Board has been updated on the topics in every meeting. The CSR director reports to the CEO and works closely with the directors of the divisions (Executive Council) and Imtech s global CSR Team. Each division director has appointed a contact person as a member of the CSR Team. Each CSR Team member has formed a divisional Figure 1: CSR domains and topics Market Environment Employees Society GreenTech Carbon footprint (CO 2 ) Business Ethics Corporate Citizenship Supply Chain Health & Safety Sustainability Report

16 Controllers Expert Group CSR Taskforce. The members of the Taskforces are responsible for collecting the required data. Once the data has been collected the controllers verify and validate the CSR data and results. The division directors are responsible for the results of their own division. In addition to the CSR Team there are various other global teams within Imtech that focus on Health & Safety, Human Resources, Communication, Control, Governance, Risk & Compliance and Procurement. Together with the Investor Relations director they form the Expert group that provides input for the CSR topics. Figure 2: CSR governance at Imtech Board of Management Executive Council Development of CSR policy & Materiality Analysis In 2014 we further built on the CSR approach that has been revised in We continued to address our most material issues which are supported throughout the entire group, based on a materiality analysis including stakeholder dialogues, benchmarking, media analysis and a risks-opportunities analysis. In addition, we further developed the quality of our reporting process, amongst others on the basis of the interim review findings of KPMG. Based on the findings we extended and updated our reporting manual with consistent definitions on key performance indicators and we trained our employees. The CSR approach within Imtech continues to focus on the identification of business-related developments, collecting reliable data based on the identified topics, visualising best-practices, and yearly reporting of our performance and progress. We will repeat this materiality analysis yearly. CSR Team CSR Taskforces Materiality Analysis Materiality Analysis What did we do? Main findings Our response a. Stakeholder dialogue Meetings with in- and external parties. b. Benchmarking Internal benchmark with seven divisons as well as external benchmark with six competitors in our markets and best performing companies. c. Media analysis We measured the tone of voice in the media and analysed their interest. Issues are material and need further development. We all address similar topics, relevant to our sector. Imtech distinguishes from the others in three ways. This analysis underlines the materiality of our topic Business Ethics and our approach to transparent communication. As described in this report, all suggestions were taken seriously and put into practice. Based on these analyses, we have adjusted our approach and ambitions. Chapter 4 of this report describes the measures and adjustments that we made. d. Risks-opportunities analysis We derived this analysis from a broader risk analysis included in our annual report. The risk-opportunities analysis underlines the materiality of all of our CSR topics, and support our aim to be a responsible technology partner. 14 Sustainability Report 2014

17 a. Stakeholder dialogue As part of our materiality analysis, we consulted different stakeholders during the year, to check whether our environmental, social and community approach met their expectations and worked as well in practice as on paper. The CSR director held internal meetings with Board members, the Executive Council, the management teams of our divisions, Young Imtech, the Works Council and the various global Councils at Imtech. Some external stakeholders were also consulted including the Dutch Ministry of Economic Affairs, VBDO, KPMG Sustainability and customers to get their feedback on the importance of sustainability and our 6 topics. Their views are highlighted in chapter 4 of this report. In short, the feedback resulted in various conclusions, such as: The definition of Imtech s GreenTech projects needed some more clarification (see Chapter 4); The reporting on Health & Safety needed to be improved and extended with additional KPIs; Validation processes needed to be improved in various business units; Imtech s materiality analysis needed to be described more in-depth; Consider integrated reporting as to illustrate that the non-financial and financial topics interrelate. As described in this report, all suggestions were taken seriously and put into practice. In 2015 we will start integrating our financial and non-financial report for we recognise the financial impact of the non-financial topics on the business value drivers for our company and we aim to make that more visible in the future. This integrated report will make us more aware of our performance and it will affect the value perception of stakeholders. b. Benchmarking In 2014 we introduced an internal benchmark and presented the results of each of our divisions compared to the overall results of the group in the various management teams. By sharing best-practices we deepened the discussion on the ambitions and goals per division. In a nutshell, we found that each division had made significant progress in its reporting method, for the first time including all business units. This resulted in complete and reliable data for the Imtech Group, which has been our main focus in the previous year. We also found that performance differs between divisions. For example, the Health & Safety performance of our division Imtech UK & Ireland is well developed thus serves as a best-practice for the other divisions. The benchmark made all divisions aware of their performance in comparison with the other divisions and gave clear insight in the various levels of performance on our 6 topics. In addition we analysed the non-financial performance of players in the sectors in which we operate: Vinci Energies, Cofely (GDF Suez), Spie, Caverion, and Bilfinger Berger. Like last year, we found that each company s vision focuses on the long-term and is linked to its corporate strategy. The most relevant topics are related to the business and support customer focus and global challenges. The topics are comparable to the topics that had also been on Imtech s agenda in the previous years. Most topics center around the environment and employees. In all businesses safety is a top priority. Imtech s CSR approach differs from the above mentioned examples in three ways: Imtech appears to be more transparent in disclosing figures on health & safety performance, business ethics and supply chain management; Imtech defined and measured GreenTech as a label for its sustainable projects in order to define smart goals to increase this percentage; Imtech combines a bottom-up with a top-down approach and will further diversify and tailor its approach per division. Each year the Transparency Benchmark of the Ministry of Economic Affairs in the Netherlands scores the level of transparency of the 244 largest companies. In 2013 Imtech ranked 88th and our goal was to significantly improve our score by continuing to increase transparency. In 2014 Imtech rose to the Top-50. The benchmark examines ten categories. We have increased our score for transparency about our company profile and management approach but we had a lower score for reliability of the 2013 figures, mainly due to the fact that we did not have our data independently assured. To increase transparency and reliability of our data, we asked our accountant to assess our 2014 data and as a result we now include an assurance report from our accountant in this report (see pages 46 47). Next year we aim to further improve our score in this benchmark. Sustainability Report

18 By sharing best-practices we deepen the discussion on our ambitions and goals. c. Media analysis We monitored and analysed the articles and perception of the press. Being headquartered in Gouda and stocklisted in Amsterdam, it means that in the Netherlands Imtech receives most media attention. That is why we decided to limit this analysis to the Netherlands. articles are neutral to slightly positive compared to 45% in 2013). In the other countries in which we operate it was totally different in 2014 as the media published hardly anything about Imtech. The media analysis in the Netherlands reflects our firm commitment to transparently communicate about legacy items. It also In 2014, in total 699 articles were published in the main Dutch newspapers about Imtech (508 items in 2013). 47% of the coverage included articles on the rights issue and our debt reduction program and 42% refer to legacy issues in some parts of the group. The articles on the legacy issues negatively impact our reputation and underline the importance of addressing the CSR topics like business ethics and community investment. The tone of voice in 2014 is slightly less negative compared to 2013 as a result of an increased amount of neutral and positive coverage about Imtech s recovery plan and completing its debt reduction program (50% of the HY HY HY Tone of voice 40 Imtech per half year 50 HY (Slightly) positive Neutral (Slightly) negative Pos Neutral Neg Risks-opportunities analysis Risks Opportunities CSR topics Domains Financial and reputational risks of partnerships with third parties or suppliers. Financial and environmental risks of negative impact on the environment as a result of our operations. Financial and reputational risks, and the risk of negative media exposure due to unethical behaviour. Social, financial, and litigation risks of job-related accidents. Reputational damage arising from business disruptions have a negative impact on shareholder value. Reputational and social risks of neglecting our social responsibility are a threat to our license to operate. We contribute towards sustainable relations in the supply chain. We help our customers with mitigating climate change and reduce our own carbon footprint. We raise the awareness of business ethics and create a culture in which people take responsibility. We enhance employee vitality by providing a safe working environment. A successful stakeholder engagement strategy helps to maintain our social license to operate. We help to solve social challenges by offering our expertise and technology to society. Supply Chain GreenTech CO 2 Business Ethics Health & Safety Corporate Citizenship Market Environment Employees Employees Society These and other risks are described in more detail in our Annual Report 2014, which is available on our website: 16 Sustainability Report 2014

19 underlines the importance of the topic business ethics that has been further developed in 2014 (see chapter 4 of this report). d. Risks-opportunities analysis The risk-opportunities analysis (see page 16) is derived from a more extensive risk analysis included in our annual report and underlines the materiality of our CSR topics. These topics strongly support our aim to be a responsible technology partner. Development of CSR programme The internal and external input from the stakeholder dialogue, benchmarking, media analysis and risks-opportunities analysis has substantiated our CSR topics and resulted in the decision to stick to the previously addressed topics (see figure 1 page 13). Transparent Communication In 2014 we developed a CSR communication strategy to report on our performance and goals. We mainly focused on internal communication and organised dialogues with all divisions on our results and ambitions. We updated our corporate website and intranet, distributed a summary of the sustainability report of last year per division and shared best-practices in meetings with our stakeholders. This sustainability report presents our social and environmental performance separately. Our financial performance is reported in Imtech s Annual Report. Both reports can be downloaded from our website: Next steps Adding value to our customers Imtech UK & Ireland Project: Imtech signs contract for 3MW Anaerobic Digestion plant in Hertfordshire. Tony Wilson, Director of Construction and Operations at Tamar Energy: We selected Imtech for their robust EPC delivery solution. Imtech has significant expertise in delivering complex projects in a cost-effective and innovative way. The ex-power station site is exceptionally complex, with numerous challenges, including a flood plain location, ecological considerations, high pressure gas main through the centre of the site, adjacent 400kVa high voltage overhead power lines, in ground power lines and an adjacent historic asbestos landfill. Using its experience of previous schemes, Imtech has already shown us how it will be able to deal with these complex issues and add value to this project and others, going forward. Presentation of the CSR data In 2014 we measured the key performance indicators of 6 topics in 4 domains for the second time. On the following pages you will find a summary of all topics, key performance indicators, results and targets. Since we report on the same indicators, we can now report our progress and the trend compared to the previous year. In order to be able to compare our results with the results of 2014, we have excluded the results of Imtech ICT in our 2013 figures as this division has been divested in Next year we will continue to strengthen our performance on the topics. We will extend our reporting on health & safety with an additional indicator: the number of near misses. We have set one definition and clear key performance indicators and from January 2015 onwards we will measure the number and nature of the near misses. We will also deepen the discussions on our KPIs and targets, as to inspire our people to focus on the desired behavior. In 2015, we will develop an approach to integrate the financial and non-financial results as we aim to integrate our reporting in an integrated annual report In chapter 4 we highlight the four domains, including management statements of our Board on each domain and an indication of the financial impact of the topics on the business value drivers for our organisation based on the input and output of our organisation (see pages 8 9). This indication is by no means exhaustive, but it demonstrates how we make the link between sustainability factors and company costs and revenues. Per domain we present our topics including highlights, targets and actions. In conclusion, chapter 5 comprises background information on our CSR reporting process and definitions of words and concepts used in this report. Sustainability Report

20 Summary of the CSR data 2014 Market GreenTech Supply Chain 55% * 50% 66% * 61% Percentage of total revenue of our most material projects (in size and risks) with a GreenTech label Percentage of cross-divisional framework contracts that include the Code of Sustainable Supply (CoSS) STRATEGIC TARGETS % increase of GreenTech projects. Increase awareness of GreenTech solutions. 51% * Percentage of divisional framework contracts that include the Code of Sustainable Supply (CoSS). Environment Carbon footprint (CO 2 ) STRATEGIC TARGETS Increase the percentage of cross-divisional framework contracts that include the Code of Sustainable Supply (CoSS) to 70%. Increase the percentage of divisonal framework contracts that include the CoSS to 60%. Audit suppliers that signed the CoSS. (3.54 ton per FTE) * * (3.59 ton per FTE) * Part of KPMG assurance. Please see assurance report on pages Total carbon footprint (kton / per FTE) STRATEGIC TARGETS % reduction of the CO 2 footprint per FTE compared to Sustainability Report 2014

21 Employees Business Ethics STRATEGIC TARGETS % participation of employees in Imtech divisions in an integrity training programme. 100% roll out of the GRC programme in Imtech divisions. 91 * Number of reports relating to (alleged) violations of the code of conduct. Percentage of employees that participated in an integrity training programme. 75% * 11 * Number of reports that lead to dismissal(s). Health & Safety Number of fatal injuries. STRATEGIC TARGETS Implement and specify key targets in divisional H&S plans. Gain insight in divisional actions and management systems. 109 * Severity Rate (SR). 429 * Number of Lost Time Injuries (LTI). 1 * 744 Number of injuries not leading to absence. Traffic & Infra 4.3 Spain Nordic Structure the H&S reporting process. Implement safety principles in GRC programme. Marine UK & Ireland Injury Frequency index (IF). * 2.7 The Netherlands Belgium Luxembourg 19.2 Germany & Eastern Europe Assess each division (using our self-assessment tool). Share best-practises and progress on safety performance in 4 cross-divisional groups and meetings. Society Corporate Citizenship 83 Number of community investment initiatives. STRATEGIC TARGETS Defining a stakeholder engagement strategy. Development of a mechanism to share best-practices. Evaluating KPIs and targets on community investment. Sustainability Report

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23 Market Management statement Sustainability is an amazing boost for innovation. Therefore it is our ambition to stimulate innovation as an approach to working. Any employee at Imtech with a good case for smart solutions for our clients is more than welcome to introduce these at Imtech. Innovations become visible in our GreenTech projects. As a technical services provider we offer our customers smart solutions that reduce their CO 2 emissions and help them meet their sustainability goals. In introducing new solutions to the market we cooperate with suppliers. We take responsibility for the supply chain in which we operate. CSR topics and their financial impact Sustainability Topic Impact on business Impact on business value drivers Sustainability Topic Impact on business Impact on business value drivers Business opportunity as preferred supplier Lower reputational risk GreenTech Initial investment Reduced (energy) costs Supply Chain Intensify relationship with reliable suppliers Reputational opportunity Business opportunity as reliable supplier Sustainability Report

24 It is our ambition to offer innovative solutions that help our customers achieve their sustainability goals. Market Imtech recognises that the rapid technology-driven progress the world has undergone in the past 200 years has caused some of the challenges now being faced including climate change, dwindling natural resources and establishing a circulair economy. We are convinced that new, innovative technology can play a key role. As a technical services provider we can make a positive contribution towards this by offering our customers smart solutions. We work in a chain of partners and suppliers and we aim to contribute towards a responsible chain. customers achieve their sustainability goals. One of the ways we do that is through our so-called GreenTech projects the Imtech label for sustainable projects. We define a GreenTech project as a project where the result for the client reduces the environmental impact when compared to the current market standard for conventional technology and conventional implementation. Each year Imtech executes thousands of projects around the world. In order to be able to assess the GreenTech projects we defined the scope and decided to limit the number of projects in order to increase the reliability of the results. We chose to focus on our most material projects (in size and risks), which are subject to the assessment of the Tender Board. The Tender Board not only studies the risks involved in a project, it also considers how we can use a smart approach or innovative concepts to stay ahead of the competition. All projects listed in Imtech s Risk Management System are assessed on GreenTech criteria. New environmental policies, and increasing environmental awareness in many countries of the world lead to an increasing demand for environmentally friendly solutions. The green tech industry will drive growth in traditional industry sectors as an improvement in energy and material efficiency ensures a strategic edge over international competitors. The driving forces in the green tech industry are five megatrends that will shape society and politics worldwide over the coming decades: demographic change, urbanisation, globalisation, scarcity of resources and climate change. We are convinced that these will ensure a transformation toward a green and circulair economy in which the green tech industry and other sectors work together for mutual benefit. The growing number of innovations in traditional industries promotes the development of new, and the refinement of existing, green technology. Imtech would like to play an important part in this development as preferred partner of our clients. Adding value to our customers Imtech Traffic & Infra Project: SolaRoad, the Netherlands SolaRoad is being developed by the Netherlands TNO research institute, North Holland Province, Ooms Civiel and Imtech Traffic & Infra. Minister Kamp: SolaRoad is a world first that will put the Netherlands on the map as a leader in sustainable innovation. GreenTech We see innovation as one of the most important ingredients to strengthen our market position. It is our ambition to offer innovative solutions that help our 22 Sustainability Report 2014

25 GreenTech Highlights in 2014 A total of 194 projects were assessed on GreenTech, 100 of these projects did meet the criteria and were awarded the GreenTech label. In general, GreenTech work-areas of Imtech are the installation of (combined) heat and power plants (waste-to-energy), air handeling units, geothermal cooling and heating and energy-efficiency measures in LEAD and BREEAM buildings. 55% * Percentage of total revenue of our most material projects (in size and risks) with a GreenTech label. (2013: 50%) * Part of KPMG assurance. Strategic targets % increase of GreenTech projects. Increase awareness of GreenTech solutions. Activities that support our targets Sharing best-practices in our divisions. Highlighting innovative solutions in communications. Improve mechanism to assess projects on GreenTech criteria. Collect customers feedback on our GreenTech solutions. An example of a GreenTech project at Imtech Traffic & Infra is the development of the so-called SolaRoad in the Netherlands, the world s first-ever road to convert sunlight into electricity. This sustainable innovation generates solar energy by the road which can be used to power street lighting, traffic lights, electric cars and even households. In 2014, we calculated that 55% of the total revenue of Imtech s most material projects could be defined as GreenTech projects (50% in 2013). As we aim to play an important role on the green tech market, our strategic target was a 10% annual increase of GreenTech projects. The results are slightly lagging behind our ambition, mainly due to difficult economic conditions in the markets in which we operate. Remaining pricing pressures sometimes hinder the use of innovative solutions. It is apparent that the introduction of Another example of GreenTech at Imtech UK is the Minworth Gas to Grid. Minworth is Severn Trent Water s largest wastewater treatment works, treating the majority of the sewage arising from the Birmingham area. We, in joint venture with Laing O Rourke, are providing full EPC delivery of a biogas upgrading facility to process 1,200 m 3 /hr of excess raw biogas. sustainable solutions takes time, so we have compromised on the pace at which this should happen. We have aligned the GreenTech targets with the other CSR targets and made them biannual instead of annual. To raise the awareness of GreenTech solutions, we have shared best-practices and highlighted innovative solutions in our communications, for example in our magazine I mtech and on our websites. In Germany, our Research Centre developed a training on green tech solutions and introduced the programme to a group of managers. The feedback of this training was that there is much more to this than just having certain ambitions, it is also about how they are introduced to customers and put into practice. In 2015, we will continue to share best-practices on GreenTech competences with our divisions, including the lessons learned from the training in Germany. In addition, we will ask customers to share their experiences with our GreenTech solutions as to internally raise the awareness of the importance of innovative solutions for our customers. Sustainability Report

26 Supplier assessment showed satisfactory compliance with our Code of Sustainable Supply Supply Chain It is our ambition to influence the supply chains in which we operate and contribute towards responsible supply chains. In our Code of Sustainable Supply (CoSS) we have formulated our ambitions to positively influence these supply chains. We aim to work on these ambitions together with our suppliers who possess a great deal of specific expertise in the area of sustainability. We do, therefore, expect our suppliers to accept and to comply with the CoSS and we will help them to achieve our ambitions. Adding value to our customers Imtech Netherlands Project: Maintenance at Paleis Het Loo Nationaal Museum, Nederland Openluchtmuseum, Rijksmuseum Twente, Kröller-Müller Museum and Museum Catharijneconvent. Imtech Netherlands won the maintenance contract for several museums in the Netherlands. The contract was awarded through a European tender, based on price and plan. These include securing the updates of all technical systems. Eric van de Ven, tender manager: Imtech has a special relationship with the Kröller-Müller Museum. This museum is named after Helene Kröller-Müller, who once donated her complete art collection to the museum. Helene Kröller-Müller is the daughter of Wilhelm Müller, founder of the company Wm H. Müller & Co, that later on developed into Internatio-Müller NV, and which is Imtech today. During 2014, we continued to focus on getting the CoSS accepted by our suppliers. At the end of 2014, 66% of our cross divisional framework contracts contained the CoSS. This exceeds the objective that was set in 2013 to have the CoSS accepted in at least 60% of all cross-divisional framework contracts in The percentage of our divisional framework contracts that include the CoSS increases a bit slower from 44% in 2013 to 51% in The reason for this slow increase is that we first focussed on the cross divisional framework contracts and later in the year we started to give more attention to the divisional framework contracts. In 2015 we will continue to focus on the importance of our principles in the CoSS including labour conditions, health & safety, environmental issues, management systems and business ethics. We expect a further increase of the divisional framework contracts including the CoSS in the coming year. In order to understand the impact of our CoSS, we assessed the extent to which suppliers that accepted the CoSS, actually complied with the CoSS. Based on a supplier self-assessment amongst 310 suppliers, with a response rate of over 50%, it showed that the general compliance is satisfactory. To be able to evaluate the effectiveness of our CoSS, we also conducted a limited number of audits ourselves and found no critical issues. Based on the first findings of the supplier audits, there did not seem to be a reason to adjust the CoSS at this point in time, however we certainly need more input. In 2015 we will continue to audit our suppliers in order to keep a thorough view on the sustainability of the supply chains in which we operate. The CoSS is published on our website 24 Sustainability Report 2014

27 Supply Chain Highlights in 2014 * In 2014 the percentage of the cross-divisional framework contracts containing the CoSS was 66%. 51% of our divisional framework contracts contain the CoSS. Supplier self-assessments showed that the general compliance with CoSS is satisfactory. Limited number of audits revealed no critical sustainability issues. Part of KPMG assurance. 66% * Percentage of cross-divisional framework contracts that include the Code of Sustainable Supply (CoSS). (2013: 61%) 51% * Percentage of divisional framework contracts that include the Code of Sustainable Supply (CoSS). (2013: 44%) Strategic targets Increase the percentage of cross-divisional framework contracts that include the CoSS to 70%. Increase the percentage of divisional framework contracts that include the CoSS to 60%. Audit suppliers that accepted the CoSS. Activities that support our targets Sharing best-practices across divisions regarding further improving sustainable supply. Executing cross-divisional activities that focus on auditing suppliers with respect to the CoSS. Continue to audit our suppliers to monitor the supply chains in which we operate. Sustainability Report

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29 Environment Management statement All over the world we face major challenges of how to protect our resources and how to reduce greenhouse gas emissions that harm the environment. As a technical services provider we feel responsible for our environmental footprint. By identifying the cause of it, we can focus on reducing our negative impact. It will help protect the environment and it is also a good business driver. We see great potential for Imtech here, but we particularly want to stay away from window dressing ; we take our responsibility for the environment seriously, because it pays off. Sustainability topic and its financial impact Sustainability Topic Impact on business Impact on business value drivers Reduced costs Carbon footprint (CO 2 ) Initial investment of measuring Business opportunity as preferred (responsible) partner Sustainability Report

30 Environment Europe is committed to reducing CO 2 emissions in 2020 by 20% compared to Globally those goals vary, but all over the world the environment is under pressure due to the emissions of greenhouse gases. At Imtech we aim to continue to reduce our carbon footprint and strengthen our competitiveness. Carbon footprint (CO 2 ) We feel responsible for the carbon footprint resulting from our own business activities. 82% of our CO 2 emissions derives from mobility (company vehicles, rental cars 1, air travel) and 18% of energy usage of our own (office) locations. In 2014, Imtech s total carbon footprint amounted to 78.7 kton compared to 85.5 kton in We reduced our total carbon footprint with almost 8%, the carbon emission per employee (FTE) slightly decreased from 3.59 ton in 2013 to 3.54 ton in This is a slightly dissapointing result, the more because we had a 6.7% reduction of employees in 2014 (22,193 FTEs in 2014 compared to 23,788 in 2013). In 2015 we will continue to focus on CO 2 reduction initiatives, such as energy savings at our locations and greening our fleet, in order to reach our strategic target 2015 to reduce our carbon footprint per FTE with 5% (compared to 2013). GHG-scope CO 2 emissions CO 2 emissions 2014* 2013 Scope 1 58,718 tonnes 63,625 tonnes Adding value to our customers Scope 2 8,478 tonnes 9,868 tonnes Scope 3 11,482 tonnes 11,994 tonnes Imtech Netherlands Project: IJsselland Hospital and Imtech Netherlands enter into multi-year contract. Peter Draaisma, chairman of the Board of Management of the IJsselland Hospital: A hospital s core business is caring for patients, not technology. Imtech has proved to be a reliable partner for technical installations and energy management. Working together with an expert partner taking care of all things technological allows us to improve the efficiency and quality of our technical installations while reducing energy costs. The reason we chose Imtech as our partner at the time is that Imtech was already doing this work in hospitals. In addition, Imtech struck us as a company with the same entrepreneurial mind-set we have: solving problems, keeping our eye on the goal and having the drive to get there. We have confidence in this mindset. CO 2 emissions per source * Air travel 4.7 Business travel by privately owned vehicles Company vehicles 14.1 Energy use on locations 1 * Our divisions Germany & Eastern Europe and Nordic did not report on rental cars in Part of KPMG assurance. 28 Sustainability Report 2014

31 Carbon footprint (CO 2 ) Highlights in % of our total electricity consumption derives from green energy sources (2013: 49%). 47.5% of the total gas usage on the locations of Imtech Germany & Eastern Europe is carbon compensated (2013: 42.5%). 82% of our carbon emissions derives from mobility. 18% from our (office) locations * Total carbon footprint in absolute kton (2013: 85,5 kton) 3.54 * ton per FTE (2013: 3.59 ton per FTE) Strategic targets % reduction of the CO 2 footprint per FTE compared to Activities that support our targets Sharing best-practices in our divisions. Gain insight into divisional CO 2 footprints and formulate divisional CO 2 reduction targets for Continuing focus on CO 2 reduction activities. * Part of KPMG assurance. At Imtech we aim to continue to reduce our carbon footprint and strengthen our competitiveness. Sustainability Report

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33 Employees Management statement At Imtech we recognise that people are our most important asset. We aim to create an environment in which they are fully engaged with the business and feel passionate about taking ownership and delivering results. This means ensuring that people have ample opportunities to develop the mind-set, skills and competencies they require for personal and professional growth. We are building an open culture that allows our employees to effectively deal with ethical issues and dilemmas that might arise in the business and we continue to focus on a proactive safety culture by developing a healthy attitude at work, acting responsibly and holding each other accountable for what we say and do. Sustainability topics and their financial impact Sustainability Topic Impact on business Impact on business value drivers Sustainability Topic Impact on business Impact on business value drivers Positive reputation Reduced litigation risk and costs Increased employee safety and satisfaction Increased capacity to be a reliable business partner Business Ethics Increased shareholder satisfaction Increased market value Health & Safety Reduced litigation risk and costs Increased customer satisfaction Increased margin Lower accident and absenteeism Increased productivity Sustainability Report

34 Employees Our employees continued to face challenging conditions in The adjustments of our businesses to economic circumstances have led to job losses, and the irregularities from previous years have impacted our value proposition as an employer. Against this backdrop, we have worked hard to deliver a new framework that enables us to have the best possible environment for our people to deliver operational excellence in the years ahead. In 2014 we launched the Imtech Human Resources Roadmap for the period which empowers us to deliver on our objectives and rebuild trust among our stakeholders. It is a customer-focused approach that prepares us to better serve our clients with multidisciplinary and integrated solutions. The Roadmap is anchored in Imtech s new corporate values, which were also re-defined at the end of 2014 and will be rolled out in early These are the basis for creating a safe and integer organisation. They define who we are and describe our commitment to our customers and to each other (for more information, please refer to our Annual Report, HR chapter, HR key figures Number of FTEs as at 31 December 22,193 23,788 Number of employees aged (%) 37.3% 38.9% Average age of employees (in years) Retention rate 90% 92% Average length of service per employee (in years) Percentage of female employees 10.3% 11.1% Average sick leave per employee 3.5% 3.4% Adding value to our customers Adding value to our customers Imtech Marine Imtech UK & Ireland Project: Imtech Marine USA renews VSAT connectivity contract with Algoma Central Corporation for a third time Peter Winkley, Algoma Central Corporation Vice President, Finance and CFO: Algoma Central Corporation is pleased to partner with Imtech Marine to provide VSAT services to our Canadian fleet of vessels. The contract renewal created a private network with increased bandwidth for the Algoma fleet, allowing Algoma to deploy wireless Internet connectivity to our crew members on board all vessels. Project: Imtech Inviron secures major south west contract with Alder King Adam Davies, Associate and Head of FM at Alder King: We operate a rigorous tender process and Imtech Inviron performed exceptionally well from both a technical and financial perspective during this process. On this basis we were very happy to renew and expand our contract with the team. We are confident that they will continue to provide an excellent service to us, backed up by a big brand with extensive experience, training and resources. 32 Sustainability Report 2014

35 Business Ethics In 2014, we have further developed the awareness of the importance of business ethics. One of the ways we have done this, was by the development of training materials and the introduction of e-learning modules on our Code of Conduct. The feedback that we receive is positive as our employees appreciate the opportunity to refresh their knowledge. In 2015, we will continue to provide our divisions with e-learning modules. The GRC programme that we designed in 2013, was rolled-out in our divisions in 2014 and the various actions were fully completed in 2 divisions. The other 5 divisions are continuing to implement the outstanding actions mainly relating to training and awareness on anti-bribery and corruption, competition compliance and export controls as well as the effectiveness of the third party screening process. In 2014 the number of reports relating to (alleged) violations of the code of conduct increased and amounts to 91 (29 in 2013). This important increase indicates that we are heading towards a culture in which people speak-up and adopt critical thinking as one of the basic principles in business ethics. In 2015 we will continue to measure our performance on the existing KPIs on ethical behaviour and compliance as to be able to report the same indicators over a longer period of time and identify trends. In addition, we will further develop and specify our KPIs as to be able to better manage our progress. Business Ethics Highlights in 2014 Integrity training was rolled out and followed by 75% of the Imtech s employees worldwide. All employees were involved in the GRC programme by the introduction of the revised Code of Conduct. The code has been addressed in several meetings as to explain the content. Quarterly analysis of reported suspected misconducts was done to determine focus areas on further improvement. Quarterly analysis of reported gifts & entertainment was done to determine focus areas for awareness. * Part of KPMG assurance. 91 * Number of reports relating to (alleged) violations of the code of conduct. (2013: 29) Percentage of employees that participated in an integrity training programme. 75% * Number of reports that lead to dismissal(s). (2013: 7)11 * Strategic targets % participation of employees in Imtech divisions in an integrity training programme. 100% roll out of the GRC programme in Imtech divisions. Activities that support our targets We will continue to develop the e-learning modules on ethics and integrity. The GRC department will be restructured and further strengthened to address current as well as legacy issues. Change of culture based on core values with integrity, loyalty and critical thinking as integral elements. Sustainability Report

36 Health & Safety Safety is a top priority at Imtech. Our technical operations in the fields of energy, industry, infrastructure and buildings are subject to a variety of safety risks. We want to ensure that all our employees and any involved third parties are properly protected so that the risks of job-related accidents are limited, which is why we keep emphasising the importance of a proactive safety culture. During the year, our Health & Safety organisation has been reviewed, which gave us more insight in our approach. We upgraded our reporting system that provides us with quarterly insight in our main performance indicators. The Supervisor Board monitors H&S performance closely and on an on-going basis as a standard topic in its meetings, and the same is done in Board of Management and Executive Council meetings. Early in the year, we were shocked by a fatal accident involving a colleague at Imtech VS Teknik in Sweden. This has reminded us of the utmost importance of health & safety in our organisation. Worldwide we held a Safety Stop at all project sites to reflect on this tragic accident and we have implemented further measures to strengthen our practices. Safety is a deeply held value at Imtech and is integral to the way we work. We are determined to improve our performance in the period ahead. One way to raise our safety standard is by introducing Imtech Safety Rules in There is still room for improvement of our H&S data quality management at all divisions. In 2015 especially our divisions Germany & Eastern Europe, Nordic and Traffic & Infra need to step up and improve their H&S reporting across all of their business units. While we are making progress, we are determined to accelerate the improvement of our performance in One way to raise our standard is by introducing our own Imtech Safety Rules. In order to create a safer environment we have started this process with Imtech s Top-80 and in 2015, we will launch our own safety standard, enhancing clarity on the expected behaviour. In addition, we will assess the possibility of including Health & Safety key performance indicators in the remuneration system of the Board of Management and Executive Council of Imtech. Working method The Board of Management is responsible for Health & Safety at Imtech. To strengthen our performance and develop a proactive safety culture we implemented the following working method: BoM Responsible for corporate H&S performance Defines corporate goals and actions in the divisions Monitors progress and discusses performance with divisions EC Responsible for corporate H&S performance Defines corporate goals and actions in the divisions Monitors progress and discusses performance with divisions H&S Team Responsible for corporate H&S performance Defines corporate goals and actions in the divisions Monitors progress and discusses performance with divisions 34 Sustainability Report 2014

37 Corporate H&S Goals 2014 In 2014 we worked on six corporate goals: Corporate Goals Result(s) and highlights Specify key targets per division (IF, SR, etc.) All divisions have set a target on their IF and SR performance in their 2014 action plan. Only four divisions have reached their target on IF and half of the divisions reached their SR target. Targets have only partly been met and next year we will sharpen the objectives as to accelerate our progress. 2. Insight in divisional actions and management systems As a result of an interim-review in the beginning of 2014, we have a clear overview of the maturity of the H&S organisation and systems at divisional level. We collected the top-3 priorities on health & safety per division and we draw up an inventory of the H&S systems. We gained more insight into divisional performance by the quarterly reporting process that has been upgraded. We also discussed divisional actions and management systems in the global Health & Safety Team meetings. 3. Structure the H&S reporting process We have upgraded our reporting organisation, further aligning definitions and strengthening verification processes. In 2014 a quarterly reporting scheme in IRIS has been set-up and definitions were reviewed and renewed. In 2015 an additional indicator will be added: the number of near-misses. 4. Implement safety principles in GRC program The 8 H&S principles are embedded in the GRC programme. This is done through sharing dilemma s on Health & Safety issues in a test in an internal magazine that has been translated in five languages and distributed among all employees of Imtech worldwide. 5. Assess each division (self assessment tool) All divisions are using the Imtech H&S self-assessment tool. The goal is to get insight in the safety culture. It is important that divisions continue to use this tool in 2015 and expand their target group. The results will be shared in the global H&S Team. 6. Share best-practises in cross-divisional meetings During the 3 Global H&S Team meeting and the Global CSR Team meetings in 2014, best-practises were shared. Especially Imtech UK & Ireland is a best-practise for all divisions. We also shared results and best-practices on health & safety in seven divisional management team meetings, in the Executive Council, Works Council and European Works Council, and we have held a Health & Safety stop in all divisions following the fatal accident in Sweden to share the lessons learned. Sustainability Report

38 Our new corporate goals for 2015 are: Corporate Goals IF: target per divison 2. Introduce and implement Imtech safety rules 3. Develop Remuneration Plan Imtech EC Approach Based on divisional goals Specified per division Based on input divisions Supported by communication plan Defining targets per division To be passed on to divisional bonus systems Imtech values Our corporate goals and actions are anchored in Imtech s new corporate values, which were re-defined at the end of 2014 and will be rolled out in early These are the basis for creating the organization we aspire to be. They define who we are and describe our commitment to our customers and to each other. They are as follows: We value our customers We act in partnerships with our customers, working with them to provide quality solutions. We seek to develop a mutually beneficial long term relationship by anticipating their needs and expectations. We are pro-active, respond quickly, deliver quality and deliver on-time. 4. Enhance H&S culture Extending reporting (near misses) Imtech H&S Day one theme Imtech H&S Awards We value our employees We provide a professional and safe work environment and encourage commitment, supportive relationships and successful teamwork, that enspires innovation. We support the development of our staff and treat all our employees with respect and recognition. Adding value to our customers Imtech Marine Project: Imtech Marine s HVAC system design on board HelWin bèta platform enhances significant energy and weight savings Up until the present time Imtech Marine has equipped over 130 oil, gas and wind platforms with HVAC systems. This motivated the Heerema Fabrication Group to involve Imtech Marine in the project s tendering phase. Ronald Wiebes, Yard Director Heerema Zwijndrecht: That experience and knowledge is very welcome, most certainly in a relatively young discipline such as wind energy. In this project, Imtech realised significant energy and weight savings by developing an alternative to the original design. Imtech modified the pre-design. The benefits are evident. Greater efficiency, better budget fit and a more sustainable solution. We act safely and responsibly We do not compromise on safety. We are personally responsible for our own safety and collectively accountable for each other s. We treat our environment with respect. We conduct our business with integrity We are personally accountable for fair and honest behaviour towards all of our stakeholders. We act at all times to the highest ethical standards. We consistently treat customers and company resources with the respect they deserve. We strive for excellence in our performance We strive for quality and continuous improvement in all that we do to meet or exceed the standards of excellence that customers, shareholders and other stakeholders expect from us. The core values defined in 2013 Integrity, loyalty and critical thinking are all covered in the 4 th corporate value. They remain important to achieve our goals. 36 Sustainability Report 2014

39 Health & Safety 109 * Severity Rate (SR). (2013: 116.2) 429 * Number of Lost Time injuries (LTI). (2013: 471) 1 * 2.7 The Netherlands 17.6 Number of fatal injuries. (2013: 0) 744 Number of injuries not leading to absence. (2013: 697) Traffic & Infra 4.3 Spain Nordic Marine UK & Ireland Injury Frequency index (IF). * Belgium 21.0 Luxembourg 19.2 Germany & Eastern Europe * Part of KPMG assurance. Sustainability Report

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41 Society Management statement As a global company our employees are citizens of many communities. With the rise of social media, we are faced with a constant 24/7 real-time news flow that puts us in the public spotlight at all times, with only a small window of time to react. As reputational damage arising from business disruptions has a negative impact on shareholder value, we aim to communicate with our stakeholders transparently and frequently. But it is not only about mitigating risks, it also offers opportunities. Our high-tech competences enable us to help solve social challenges by offering our expertise and technology to society. Ultimately, our social engagement strategy helps us maintain our social license to operate. Sustainability topic and its financial impact Sustainability Topic Impact on business Impact on business value drivers Lower reputational risk Corporate Citizenship Increased stakeholder satisfaction Higher attraction on labor market Increased business opportunities as responsible partner Sustainability Report

42 Society Adding value to our customers The rise of civil society, the speed and availability of information, social media, mobile technologies and the globalisation of local issues drive us to focus on local stakeholder groups, such as customers, communities, associations and Non-Governmental Organisations (NGOs). This helps us build trust and credibility, improve operational efficiency, reduce reputational risk, protect our brand value and strengthen our social license to operate. Corporate Citizenship In 2014 we dealt with legacy issues in some parts of our organisation that had the potential to escalate quickly and impact our reputation. With the rise of social media we have little time to react and mitigate negative consequences of an issue. This underlines the importance of transparent and regular communication with our stakeholders so potential issues can be identified and addressed before they intensify. In 2014 we issued 29 press releases and organised 13 press and analyst meetings to inform the media and analysts. An effective approach to engaging with various stakeholders is not only about mitigating risks; it also offers opportunities. In 2014, we continued to openly explain the issues to our customers, partners and suppliers because we believe that clarity on all issues helps strengthen our relationships and, therefore, helps us retain existing customers and attract new customers. In addition, we had dialogues with our shareholders and NGO s in general meetings. Imtech Netherlands Project: Maintenance contract at the BovenIJ hospital. The BovenIJ Hospital signed a large multi-year maintenance contract with Imtech as the main contractor. Where previously separate assignments were given to several companies, they now have opted for one contractor. This offers the BovenIJ hospital quality benefits. Frans Smits, team leader of Purchasing at the BovenIJ hospital: By combining the fragmented contracts we were able to achieve more consistency. The hospital had a history of several suppliers for building systems, including heating, ventilation and lighting. By clustering all maintenance and management activities at main contractor responsible for all maintenance work on our building installations, we not only have the advantage of a single point of contact at Imtech, we also achieve savings that we can invest in other (care) purposes. Another opportunity for us is to strengthen our relationship with local stakeholders by sharing our resources. We are aware of the fact that local authorities are increasingly withdrawing from the welfare state concept and seeking to share responsibility for citizens with local companies. As a technical solutions provider we feel responsible to offering our resources, such as technical expertise and knowledge, through community investment initiatives and sponsorships. In line with our focus on operational excellence and reducing working capital, we decided to terminate most of our sport sponsoring contracts and adopt a more modest approach, being extremely prudent engaging in new (sponsor)partnerships. We introduced a new policy in which we defined corporate citizenship at Imtech. It means that we recognise our social, educational and environmental responsibilities to the communities in which we seek a license to operate. This new approach provides clarity and focus, so the number of community investment initiatives decreased from 94 in 2013 to 83 in All over the word Imtech is engaged in various community initiatives, such as technical education for young people and partnerships with institutions that support integration of people with intellectual disabilities and, for example, projects on green energy. Our next steps in 2015 are defining a new stakeholder engagement strategy, developing a mechanism to share best-practices and organising different stakeholder dialogues. We will also deepen the discussion on our KPIs and targets as to inspire our people to focus on social, educational and environmental initiatives that support our license to operate, as well as add economic and financial value to our shareholders. 40 Sustainability Report 2014

43 Corporate Citizenship Highlights in 2014 Imtech Germany and Imtech s head office in Gouda introduced a Christmas Wishing Tree: underprivileged children from Hamburg and Gouda were invited by Imtech to celebrate Christmas at Imtech and 83 received some Christmas gifts. Employees bought and gave away the presents. The Dutch Knowledge Institute for Number of community Innovation TNO and Imtech Marine investment initiatives. signed an agreement in January 2015 in (2013: 94) which they expressed their intention to work together on research and development projects. It is a unique pooling of knowledge and experience that will result in innovative and sustainable solutions for the maritime industry. In 2014 we terminated the sport-sponsor contracts with Bayern München and HSV. Strategic targets Defining a new stakeholder engagement strategy. Develop of a mechanism to share best-practices. Evaluating KPIs and targets on community investment. Activities that support our targets Share best-practices on community investment. Organisation of 4 different stakeholder dialogues. Sustainability Report

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45 About this Report This last chapter includes background information on the realisation of this report, including materiality analysis, definitions of the domains and topics, scope, target group, data collection process, CSR standards and assurance. Materiality analysis Definitions domains and topics Recent initiatives such as the Global Reporting Initiative s G4 reporting guidelines, highlight the concept of financial materiality of sustainability. In our update of the materiality of our topics, we analysed the financial impact of the topics on the business value drivers for our company in the discussions with our management. An indication of the link between sustainability topics and company costs and revenues is given in the introduction of the four domains in chapter 4. It demonstrates how we look for win-win situations, linking sustainability factors with value drivers. For example, lowering energy consumption in our operations results in significant cost-saving opportunities and has a direct impact on our bottom line. This focus on the most financially relevant sustainability factors is essential, given our mission to become the preferred technology partner of our customers through delivering integrated technical and sustainable solutions, which assist our customers in reducing the total cost of ownership of their facilities. We consider any intangible factor that can have an impact on core business values, such as growth, profitability and risk exposure, to be financially material. Factors such as our ability to innovate, attract and retain talent matter because they have significant impact on our competitive position and long-term financial performance. I. Market This is the domain of business opportunities where we meet (potential) customers, partners, suppliers and other parties in the supply chain, offering them technical solutions and sustainable alternatives, such as GreenTech solutions. GreenTech: is the Imtech label for projects that reduce the environmental impact. We aim to provide green technology (GreenTech) across all Imtech divisions. A GreenTech project is a project where the result for the client reduces the environmental impact, when compared to the current market standard for conventional technology and conventional implementation. The reduction of environmental impact includes three aspects; Prevention of pollution; Efficiency in the use of water, materials and waste; and Energy efficiency and reduction of greenhouse gas (GHG) emissions (CO 2 ). Supply Chain: We operate in a chain of partners, such as suppliers, manufacturers, and (sub)contractors, cooperating in various projects. The four domains and six topics that matter most to our business, described in chapter 4 are defined as follows: Sustainability Report

46 II. Environment This domain focuses on our own impact on the environment. In order to determine the environmental impact of Imtech, it is important to gain insight in our direct and (in part) indirect greenhouse gas emissions: the carbon footprint. Carbon footprint: The total amount of greenhouse gas emissions in a given period of an organisation, in this case Imtech. CO 2 is a greenhouse gas that is emitted in a variety of processes including the burning of fossil fuels. It is one of the major contributors to the greenhouse effect. Imtech is reporting on GHG-scope 1, 2 and 3. Please see our glossary for the definitions. III. Employees This is the domain of the well-being of Imtech s employees where we focus on business ethics and health & safety. Business Ethics: the accepted set of moral values and corporate standards of conduct in a business organisation. In our newly released code of conduct you can find the fundamental norms, rules, or values that represent what is desirable and positive for the organisation and help it in determining the rightfulness or wrongfulness of its actions. Acquisitions and divestment Acquisitions will be included in the report immediately after control is obtained. In the case of divested entities during the reporting year, these will not be included in the report unless the divestment takes place on 31 December In 2014, we divested Imtech ICT and therefore excluded this division from the CSR reporting process for To be able to compare our 2014 results with the 2013 results, we have adjusted our 2013 data and excluded the results of Imtech ICT in our 2013 results. Joint ventures Only entities where Imtech has financial control will be included in the report. A joint venture of an Imtech operation with joint control will not be included in the report, unless it involves collaboration between two or more Imtech entities. In that case, the prime contractor of this joint venture must include the data (for 100%) in its report. Locations Health & Safety: the aim to reduce absence from work due to illness and prevent any injury. Health & Safety policies and transparent communication contribute towards a proactive (safety) culture and increasing awareness. IV. Society In this domain we engage stakeholders and support local community initiatives that contribute to solve social challenges. With regard to the data collection of the carbon footprint, all carbon emissions of our locations that are listed in IRIS (Imtech Reporting and Information System) Real Estate module are reported. Suppliers and sub-contractors We do not include the figures of our suppliers and/or sub-contractors in our CSR data. Corporate Citizenship: Our responsibility towards communities in which our operations have impact. Our activities in this regard are defined as our community investment. Scope The CSR reporting scope is in compliance with the IFRS (International Finance Reporting System) according to which Royal Imtech N.V. is processing its financial reports. Reporting period The reporting period is from 1 January 2014 to 31 December The reference date is 31 December 2014 for all CSR data. Data collection To collect data of all entities of Imtech worldwide, we published an internal CSR reporting manual with clear definitions of topics, KPIs and an explanation on the CSR reporting processes. This manual sets out the attributes of a well-run and sustainable Imtech. 44 Sustainability Report 2014

47 Its purpose is to guide the priorities of our operating divisions and to create a common language and set of measures as an useful and practical basis for monitoring progress against our goals. A summary of our sustainability performance is published in the annual report and more in detail in this sustainability report. We have provided a training to explain the reporting manual to our CSR team, local taskforces, controllers, and expert-groups. In 2015 we will focus on further improving our data quality management. In general, but specifically for Health & Safety in Germany & Eastern Europe, Nordic and Traffic & Infra, we will strenghten our internal controls for sustainability data at local, divisional and group level to improve reporting and managing sustainability performance. We calculated the carbon footprint of all our entities according to the GHG-protocol and applied the conversion factors of the International Energy Agency (publication of March 2014). GRI We have applied the Sustainability Reporting Guidelines of the Global Reporting Initiative (GRI); the world s most widely used CSR reporting framework. We believe that adhering to these reporting principles will contribute to achieve full transparency on our economic, environmental, and social impacts. The GRI reporting principles are the basis for our choices on CSR reporting and ensure quality of the reported information, including its proper presentation. In this 2014 report we comply with the GRI G4 reporting guidelines, accordance level core (see pages 50 57). External assurance We have asked KPMG Sustainability to provide limited assurance on selected indicators in this sustainability report. The 2014 data that are part of the assurance scope are marked with an *. KPMG s assurance report is included on page Imtech uses IRIS (Imtech Reporting and Information System), our SAP/BPC reporting tool. All reporting entities are using this database to collect and report the data for the CSR topics. Target group The target group of this sustainability report include external stakeholders like customers, governments, local authorities, investors, analysts, journalists, students, NGOs and anyone who is interested in the CSR performance of Imtech, as well as internal stakeholders like our employees, Supervisory Board and Works Council. Sustainability Report

48 Independent Auditor s Assurance Report To the readers of the Sustainability Report 2014 of Royal Imtech N.V. Our conclusion We have reviewed the indicators highlighted with an asterix (*) in the Sustainability Report (hereafter: selected indicators) of Royal Imtech N.V (hereafter: Imtech). Based on our review, nothing has come to our attention to indicate that the selected indicators are not presented, in all material respects, in accordance with the reporting criteria. Basis for our conclusion We conducted our review engagement in accordance with the Dutch Standard 3810N: Assurance engagements relating to sustainability reports. Our responsibilities under Standard 3810N and procedures performed have been further specified in the paragraph titled Our responsibility for the review of the selected indicators. We are independent of Imtech in accordance with the Verordening inzake de onafhankelijkheid van accountants bij assurance-opdrachten (ViO) and other relevant independence requirements in The Netherlands. Furthermore we have complied with the Verordening gedrags- en beroepsregels accountants (VGBA). Responsibilities of the Board of Management for the selected indicators The Board of Management is responsible for the preparation and fair presentation of the Sustainability Report in accordance with the Sustainability Reporting Guidelines G4 of the Global Reporting Initiative supported by internally developed guidelines as described in chapter 5, About this Report. It is important to view the information in the Sustainability Report in the context of these criteria. We believe these criteria are suitable in view of the purpose of our assurance engagement. As part of this, the Board of Management is responsible for such internal control as it determines is necessary to enable the preparation of the selected indicators that are free from material misstatement, whether due to fraud or error. Our responsibility for the review of the selected indicators Our objective is to plan and perform the review assignment in a manner that allows us to obtain sufficient and appropriate assurance evidence for our conclusion. Procedures performed to obtain a limited level of assurance are aimed at determining the plausibility of information and are less extensive than those for a reasonable level of assurance. We believe that the assurance evidence we have obtained is sufficient and appropriate to provide a basis for our conclusion. 46 Sustainability Report 2014

49 The following procedures were performed: Conducting a risk analysis, including a media search, to identify relevant sustainability issues for Imtech in the reporting period; Reviewing the suitability of the internal reporting guidelines including conversion factors used; Evaluating the design and implementation of the systems and processes for the collection, processing and control of the selected indicators in the Sustainability Report, including the consolidation of the data; Interviewing management and relevant staff at corporate and divisional level responsible for sustainability management and reporting; Interviews with relevant staff at corporate and divisional level responsible for providing the selected indicators, carrying out internal control procedures on the data and consolidating the selected indicators; Conducting visits to locations of the company in the Netherlands, United Kingdom, Sweden, Belgium, Luxembourg and Spain to review the source data and the design and implementation of validation procedures; Evaluating internal and external documentation, based on sampling, to determine whether the selected indicators in the Sustainability Report are supported by sufficient evidence; An analytical review of the data and trend explanations submitted by all divisions for consolidation at group level as far related to the selected indicators. During the assurance process we discussed the necessary changes of the selected indicators and reviewed the final version of the Sustainability Report to ensure that it reflects our findings. No assurance on comparative data No assurance procedures were performed regarding the 2013 data included in the Sustainability Report. As a result, we do not provide assurance on previous years data included in the Sustainability Report. Amsterdam, 18 March 2015 KPMG Sustainability, Part of KPMG Advisory N.V. W.J. Bartels RA, Partner Sustainability Report

50 48 Sustainability Report 2014

51 Attachments Sustainability Report

52 GRI G4 table Indicator Description Page / Reference External assurance GENERAL STANDARD DISCLOSURES STRATEGY AND ANALYSIS G4-1 Statement from the most senior decision-maker of the organisation about the relevance of sustainability to the organisation and the organisation s strategy for addressing sustainability. p. 5 ORGANISATIONAL PROFILE G4-3 Name of the organisation. Royal Imtech N.V. G4-4 Primary brands, products and services. p. 7-9 G4-5 Location of the organisation s headquarters. See back cover G4-6 Number of countries where the organisation operates and names of p. 7 countries where either the organisation has significant operations or that are specifically relevent to the sustainability topics covered in the report. G4-7 Nature of ownership and legal form. p. 7 Annual report 2014: p G4-8 Markets served (including geographic breakdown, sectors served and types of customers and beneficiaries). Annual Report 2014: p G4-9 Scale of the organisation, including: a. Total number of employees Annual Report 2014: p b. Total number of operations c. Net sales d. Total capitalisation broken down in terms of debt and equity e. Quantity of products or services provided G4-10 a. Total number of employees by employment contract and gender. b. Total number of permanent employees by employment type and gender. c. Total workforce by employees and supervised workers and by gender. p. 32 The following information is currently unavailable: G4-10 c, e, f. d. Total workforce by region and gender. e. Whether a substantial portion of the organisation s work is performed by workers who are legally recognised as self-employed, or by individuals other than employees or supervised workers, including employees and supervised employees of contractors. f. Any significant variations in employment numbers (such as seasonal variations in employment in the tourism or agricultural industries). G4-11 Percentage of total employees covered by collective bargaining agreements. This information is currently unavailable. G4-12 Description of the supply chain. p. 8-9, Sustainability Report 2014

53 Indicator Description Page / Reference External assurance G4-13 Any significant changes during the reporting period regarding the organisation s size, structure, ownership, or its supply chain, including: a. Changes in the location of, or changes in, operations, including facility openings, closings, and expansions b. Changes in the share capital structure and other capital formation, maintenance, and alteration operations (for private sector organisations) c. Changes in the location of suppliers, the structure of the supply chain, or in relationships with suppliers, including selection and termination G4-14 Whether and how the precautionary approach or principle is addressed by the organisation. G4-15 Externally developed economic, environmental and social charters, principles, or other initiatives to which the organisation subscribes or which it endorses. G4-16 Memberships of associations (such as industry associations) and national or international advocacy organisations in which the organisation: a. Holds a position on the governance body b. Participates in projects or committees c. Provides substantive funding beyond routine membership dues d. Views membership as strategic p. 44 Annual Report 2014: p , Annual Report 2014: p p. 15, 23, 45 A full and complete insight in Imtech s memberships of associations and advocacy organisations worldwide is currently unavailable. IDENTIFIED MATERIAL ASPECTS AND BOUNDARIES G4-17 a. All entities included in the organisation s consolidated financial statements or equivalent documents. b. Whether any entity included in the organisation s consolidated financial statements or equivalent documents is not covered by the report. G4-18 a. The process for defining the report content and the Aspect Boundaries. b. How the organisation has implemented the Reporting Principles for Defining Report Content. G4-19 All the material Aspects identified in the process for defining report content. G4-20 For each material Aspect, report the Aspect Boundary within the organisation. G4-21 For each material Aspect, report the Aspect Boundary outside the organisation. G4-22 The effect of any restatements of information provided in previous reports, and the reasons for such restatements. G4-23 Significant changes from previous reporting periods in the Scope and Aspect Boundaries. p. 28, p , p , p p p. 17, 44 p. 17, 44 Sustainability Report

54 Indicator Description Page / Reference External assurance STAKEHOLDER ENGAGEMENT G4-24 List of stakeholder groups engaged by the organisation. p G4-25 Basis for identification and selection of stakeholders with whom to p engage. G4-26 Approach to stakeholder engagement, including frequency of p engagement by type and by stakeholder group, and an indication of whether any of the engagement was undertaken specifically as part of the report preparation process. G4-27 Key topics and concerns that have been raised through stakeholder engagement, and how the organisation has responded to those key topics and concerns, including through its reporting. Report the stakeholder groups that raised each of the key topics and concerns. p REPORT PROFILE G4-28 Reporting period (e.g.s fiscal or calendar year) for information p. 44 provided. G4-29 Date of most recent previous report (if any). 18 March 2014 (reporting period 1 January 2013 to 31 December 2013) G4-30 Reporting cycle (such as annual, biennial). Annually G4-31 Contact point for questions regarding the report or its contents. p. 12, back cover G4-32 a. in accordance option the organisation has chosen. p , b. GRI Content Index for the chosen option. c. Reference to the External Assurance Report, if the report has been externally assured. G4-33 a. Policy and current practice with regard to seeking external assurance for the report. b. If not included in the assurance report accompanying the sustainability report, report the scope and basis of any external assurance provided. c. Relationship between the organisation and the assurance providers. d. Whether the highest governance body or senior executives are involved in seeking assurance for the organisation s sustainability report. p. 45, 46-47, GOVERNANCE G4-34 Governance structure of the organisation, including committees of the highest governance body. Identify any committees responsible for decision-making on economic, environmental and social impacts. p Annual Report 2014: p. 30, ETHICS AND INTEGRITY G4-56 Values, principles, standards and norms of behavior such as codes of conduct and codes of ethics. p. 33 Annual Report 2014: p , 64-65, Sustainability Report 2014

55 Indicator Description Page / Reference External assurance SPECIFIC STANDARD DISCLOSURES ECONOMIC PERFORMANCE G4 - DMA p. 8-9 Annual Report 2014: p G4-EC1 Direct economic value generated and distributed. p. 8-9 Annual Report 2014: p , G4-EC2 Financial implications and other risks and opportunities for the organisation s activities due to climate change. p. 16, 22, 27 Annual Report 2014: p. 41, G4-EC3 Coverage of the organisation s defined benefit plan obligations. Annual Report 2014: p PROCUREMENT PRACTICES G4 - DMA p. 8-9, 16, 21, Annual Report 2014: p G4-EC9 Proportion of spending on local suppliers at significant locations of operation. p. 8-9 ENERGY G4 - DMA p. 8-9, 11, 16, 22, Annual Report 2014: p , G4-EN3 Energy consumption within the organisation. p Yes G4-EN5 Energy intensity. p Yes G4-EN6 Reduction of energy consumption. p Yes EMISSIONS G4 - DMA p. 8-9, 11, 16, 22, G4-EN15 Direct greenhouse gas (GHG) emissions (scope 1). p. 28 Annual Report 2014: p , Imtech only reports CO 2 emissions. Other greenhouse gas emissions are considered not material. G4-EN16 Direct greenhouse gas (GHG) emissions (scope 2). p. 28 Imtech only reports CO 2 emissions. Other greenhouse gas emissions are considered not material. G4-EN17 Direct greenhouse gas (GHG) emissions (scope 3). p. 28 Yes Yes Yes Imtech only reports CO 2 emissions. Other greenhouse gas emissions are considered not material. Sustainability Report

56 Indicator Description Page / Reference External assurance G4-EN18 Greenhouse gas (GHG) emissions intensity. p. 28 Imtech only reports CO 2 emissions. Other greenhouse gas emissions are considered not material. G4-EN19 Reduction of greenhouse gas (GHG) emissions. p Yes Yes Imtech only reports CO 2 emissions. Other greenhouse gas emissions are considered not material. TRANSPORT G4 - DMA p. 8-9, 11, 16, 22, Annual Report 2014: p , G4-EN30 Significant environmental impacts of transporting products and other goods and materials for the organisation s operations, and transporting members of the workforce. p Yes SUPPLIER ENVIRONMENTAL ASSESSMENT G4 - DMA p. 8-9, 21, Annual Report 2014: p G4-EN32 Percentage of new suppliers that were screened using environmental criteria. p The screening was done on existing suppliers that accepted our Code of Sustainable Supply (CoSS) G4-EN33 Significant actual and potential negative environmental impacts in the supply chain and actions taken. p. 16, Annual Report 2014: p EMPLOYMENT G4 - DMA p. 8-9, 31, 32 Annual Report 2014: p G4-LA1 Total number and rates of new employee hires and employee turnover by age group, gender and region. p. 32 The information on turnover by age group, gender and region is currently not disclosed. LABOUR/MANAGEMENT RELATIONS G4 - DMA p. 8-9, 31 Annual Report 2014: p Sustainability Report 2014

57 Indicator Description Page / Reference External assurance G4-LA4 Minimum notice periods regarding operational changes, including whether these are specified in collective agreements. In case of operational changes Imtech gives our people advance notice within a reasonable notice period depending on the specific circumstances related to the nature of the change. OCCUPATIONAL HEALTH AND SAFETY G4 - DMA p. 5, 8-9, 16, 31, Annual Report 2014: p. 24 G4-LA6 Type of injury and rates of injury, occupational diseases, lost days, and absenteeism, and total number of work-related fatalities, by region and by gender. p. 37 Information by gender is currently not available. Yes TRAINING AND EDUCATION G4 - DMA p. 8-9, 31 Annual Report 2014: p G4-LA10 Programs for skills management and lifelong learning that supports the continued employability of employees and assist them in managing career endings. p Annual Report 2014: p DIVERSITY AND EQUAL OPPORTUNITY G4 - DMA p. 31 Annual Report 2014: p , G4-LA12 Composition of governance bodies and breakdown of employees per employee category according to gender, age group, minority group membership, and other indicators of diversity. p. 32 Annual Report 2014: p The information is currently not available in such detail. SUPPLIER ASSESSMENT FOR LABOUR PRACTICES G4 - DMA p. 8-9, 21, Annual Report 2014: p G4-LA14 Percentage of new suppliers that were screened using labor practices criteria. p The screening was done on existing suppliers that accepted our Code of Sustainable Supply (CoSS). G4-LA15 Significant actual and potential negative impacts for labour practices in the supply chain and actions taken. p. 16, Annual Report 2014: p Sustainability Report

58 Indicator Description Page / Reference External assurance INVESTMENT G4 - DMA p. 8-9, 21, Annual Report 2014: p G4-HR1 Total number and percentage of significant investment agreements and contracts that include human rights clauses or that underwent human rights screening. p SUPPLIER HUMAN RIGHTS ASSESSMENT G4 - DMA p. 8-9, 21, Annual Report 2014: p G4-HR10 Percentage of new suppliers that were screened using human rights criteria. p The screening was done on existing suppliers that accepted our Code of Sustainable Supply (CoSS). LOCAL COMMUNITIES G4 - DMA p. 8-9, 11, 16, G4-SO1 Percentage of operations with implemented local community engagement, impact assessments, and development programs. p The information is currently not available in such detail. ANTI-CORRUPTION G4 - DMA p , Annual Report 2014: p , 35-42, G4-SO4 Communication and training on anti-corruption policies and procedures. p Yes G4-SO5 Confirmed incidents of corruption and actions taken. p. 33 Annual Report 2014: p Yes ANTI-COMPETITIVE BEHAVIOR G4 - DMA p , Annual Report 2014: p , 35-42, G4-SO7 Total number of legal actions for anti-competitive behavior, anti-trust, Annual Report 2014: and monopoly practices and their outcomes. p COMPLIANCE G4 - DMA p , Annual Report 2014: p , 35-42, Sustainability Report 2014

59 Indicator Description Page / Reference External assurance G4-SO8 Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with laws and regulations. Annual Report 2014: p SUPPLIER ASSESSMENT FOR IMPACTS ON SOCIETY G4 - DMA p. 8-9, 21, Annual Report 2014: p G4-SO9 Percentage of new suppliers that were screened using criteria for impacts on society. p The screening was done on existing suppliers that accepted our Code of Sustainable Supply (CoSS). G4-SO10 Significant actual and potential negative impacts on society in the p. 16, supply chain and actions taken. Annual Report 2014: p Yes Please visit our website to download our Annual Report 2014: Sustainability Report

60 Glossary (Alleged) violations The number of violations / complaints / grievances reported to the counsellor / compliance function managers. Business Ethics The accepted set of moral values and corporate standards of conduct in a business organisation. BoM Board of Management. Carbon footprint The total amount of greenhouse gas emissions in a given period of an organisation, in this case Imtech. Cross-divisional framework contracts Are contracts for more than one division (at least two) and that can be used for more than one project or are not project-related at all (these framework contracts can also be bonus agreements). Project-specific contracts are contracts that have been made (and are only valid) for one project. CSR Corporate Social Responsibility. Divisional framework contracts Are contracts of one division and can be used for more than one project (of that specific division) or are not project related at all. CO 2 A greenhouse gas that is emitted in a variety of processes including the burning of fossil fuels. It is one of the major contributors to the greenhouse effect. Code of conduct The fundamental norms, rules, or values that represent what is desirable and positive for the organisation and help it in determining the rightfulness or wrongfulness of its actions. Code of Sustainable Supply (CoSS) The Procurement code of Imtech in which Imtech has formulated its CSR ambitions for the supply chain. It enables Imtech to ensure that sustainability principles are applied throughout the supply chain. Community investment initiatives These include contributions such as donations, sponsor activities, charitable initiatives, voluntary activities, partnerships with charitable organisations, etc. We only include corporate initiatives, not individual activities/ donations, i.e. limited to either Imtech-labelled or Imtech-sponsored initiatives. Conversion factor The conversion factor is different for each energy flow and each type of fuel. It is used to calculate CO 2 emissions. Corporate citizenship Our responsibility towards communities in which our operations have impact. Our activities in this regard are defined as our community investment. EC Executive Council. Fatal injury Death occurring within 30 days of an uninterrupted period of absence following on from the incident if the cause of death was a result of the injury. GHG scope 1 Direct scope 1 sources are fossil fuels (e.g. petrol, oil and coal) used at production facilities and for the vehicles owned and leased by the company. This means the places where the company directly controls its climate impact. GHG scope 2 Indirect scope 2 sources are the company s consumption of electricity and district heating on (office)locations. GHG scope 3 Other indirect sources in scope 3 cover employee business travel (privately owned vehicles and air travel). GRC Governance, Risk and Compliance. Green electricity Energy produced from renewable or non-polluting and non-hazardous technologies such as air turbines (windmills), water power, biomass, landfill gas and solar-cells. 58 Sustainability Report 2014

61 Greenhouse Gas (GHG) Are gases released into the atmosphere that are responsible for the greenhouse effect, i.e. global warming. In addition to CO 2 there are other types of greenhouse gases: water vapour, methane, nitrous oxide, ozone and F-gases. GreenTech The Imtech label for projects that reduce the environmental impact. GreenTech project A project where the result for the client reduces the environmental impact, when compared to the current market standard for conventional technology and conventional implementation. GRI Global Reporting Initiative. Health & Safety The aim to reduce absence due to illness and prevent any injury. HR Human Resources. H&S Health & Safety. Lost Time Injury (LTI) An injury whereby the employee involved cannot resume work on the day that the injury happened and (at least) the next working day. NGO Non Governmental Organisation. An organisation that is independent of the government and pursues social aims. Number of injuries at work not leading to absence An injury whereby the employee involved resumes work on the same or the next day. Other ( grey ) electricity Average grid electricity (commodity). Project (GreenTech) The entire project for the client, not just Imtech s part of the project. This includes all projects, also the maintenance projects/contracts where Imtech does not have an actual influence on the choices made by the client. Reduction of environmental impact The reduction of environmental impact enholds three aspects; 1. Prevention of pollution, 2. Efficiency in the use of water, materials and waste, and 3. Energy efficiency and reduction of greenhouse gas (GHG) emissions (CO 2 ). Injury (at work) Every injury at the workplace, including travel during work time. A separate injury is registered for each person involved. Travel to and from work is excluded. Retention rate The percentage of employees who were employed at the beginning of the reporting period and remain with the company at the end of the reporting period. Injury Frequency index (IF) Number of Lost Time Injuries + fatal injuries x 1 million / Total number of working hours. Integrity training programme A training programme (online and/or offline) for employees, with the purpose to train the attendees on the topic of business ethics (code of conduct). IRIS Imtech Reporting and Information System. SB Supervisory Board. Severity rate (SR) Number of lost working hours / Number of Lost Time Injuries. Sickness rate Total (calendar)days of absence due to illness / Average FTE x the number of calendar days in the period (number of employee days). Sustainability Report

62 Supply Chain We as Imtech operate in a chain of partners, such as suppliers, manufacturers and (sub)contractors. We are cooperating in various projects. Violation A breach of (in this context) the code of conduct. 60 Sustainability Report 2014

63 Design & production Domani B.V., Weesp, The Netherlands Photography Carel Kramer, The Netherlands Van der Kloet, The Netherlands Jeff Cheng, Singapore Hasse Bengtsson, Sweden Royal Imtech N.V. Quinterium Offices I Kampenringweg 45a 2803 PE Gouda P.O. Box AJ Gouda The Netherlands Telephone [email protected] Corporate Social Responsibility Telephone [email protected]

64 Royal Imtech N.V. Quinterium Offices I Kampenringweg 45a 2803 PE Gouda P.O. Box AJ Gouda The Netherlands T [email protected] Corporate Social Responsibility T [email protected]