Reporting principles

INFORMATION PERIMETER

Ferrovial is made up of the parent company, Ferrovial SE, and its subsidiaries. For detailed information on the companies included, please refer to the scope of consolidation in Appendix I and II of the Consolidated Financial Statements.

Following divestments in recent years, in 2023 there have been no significant changes in the scope of consolidation due to the acquisition of companies, the awarding of new contracts or the start-up of new businesses.

For more information, see Business Performance.

CONSOLIDATION PROCESS

The report includes all companies in which Ferrovial has economic control, understood as a shareholding of over 50%. In these cases, 100% of the information is reported. The list of subsidiaries and associates can be consulted in Appendices I and II of the Consolidated Financial Statements. Also, following the indications of the GRI Sustainability Reporting Standards, Ferrovial provides information on indicators and material aspects “outside the organization”, when these data are of sufficient quality, and always separately. Ferrovial considers that the most relevant impacts are those related to the 407 ETR highway in Canada and the airports in the United Kingdom, entities in which its shareholding does not reach 50%. Some indicators of interest associated with these assets are those relating to indirect emissions (scope 3), user satisfaction, or number of passengers transiting through the airports.

Carbon footprint

The carbon footprint data consolidation process is based mainly on the GHG Protocol (WRI&WBCSD), while maintaining compliance with ISO14064-1. This protocol is complemented by other methodologies to take into account specific aspects of the business, such as, for example, the DEFRA and DECC methodology for operations in the United Kingdom, and the EPER methodology for estimating diffuse emissions from landfills. For the calculation, operational control is considered as an organizational boundary. Under this approach a company accounts for emissions from those sources over which it has full authority to introduce and implement its operational policies, irrespective of its shareholding in the company. For the reporting of energy consumption and carbon footprint calculations, the company has a specific corporate reporting tool through which business managers report their data. The scopes for calculating the footprint are described below:

• SCOPE 1: Emissions from sources owned or controlled by the company. They come mainly from fuel combustion in stationary equipment (boilers, furnaces, turbines…) to produce electricity, heat or steam; fuel consumption in fleet vehicles owned or controlled by the company; diffuse emissions, those not associated with a particular source, such as biogas emissions from landfill; and channeled emissions, GHG emissions generated through a source, excluding those from fuel combustion. The source of the emission factors is the GHG Protocol, while DEFRA is being used for UK operations by country requirement and the EPER methodology for diffuse emissions at landfills.
• SCOPE 2: emissions generated as a result of the consumption of electricity purchased from other companies that produce or control it. The GHG Protocol Scope 2 Guidance standard has been followed and the emissions reported are based on the market-based method, which reflects the efforts being made by the company to use and purchase renewable electricity. However, emissions are also calculated on a location-based basis (see more information in the GRI Annex). The source of the emission factors is the electricity supplier. When the supplier’s emission factors are not available, following the recommendations of the GHG Protocol, the country’s energy mix factors according to the International Energy Agency are used.
• SCOPE 3: indirect emissions that occur in the value chain. Ferrovial calculates all Scope 3 emissions following the guidelines set out in the Corporate Value Chain (Scope 3) Accounting and Reporting Standard published by the GHG Protocol Initiative, the WRI and the WBCSD. Categories 9, 10, 13 and 14 of this protocol do not apply to Ferrovial. More information is included in the GRI Indicators Annex. The sources of the emission factors are GHG Protocol, DEFRA, CEDA and the International Energy Agency.

In 2023, due to the inclusion of new companies in the scope of consolidation, the historical emissions have been adjusted for comparability. In the absence of data prior to the inclusion of Ferrovial in the scope of consolidation, the verified 2023 data for these companies have been transferred to the historical data.

Water footprint

To measure the impact of activities on water resources, the company has developed its own methodology (as explained in the environment chapter). This methodology takes into account the source of water collection, assigning different weights depending on its origin, the country’s water stress, and the destination of discharges and their quality depending on the treatment they have received. It is composed of three indices:

• Business Water Index (BWI): measures the negative impact that activities produce as a result of water consumption and discharges generated.
• Water Treatment Index (WTI): measures the positive impact of the water treatment processes carried out at Cadagua’s treatment plants.
• Water Access Index (WAI): determines the positive impact of social action projects aimed at improving access to water and sanitation in vulnerable communities.

Consumption data according to the different sources are obtained directly from the contracts of each of the business lines, using the different existing reporting tools (given the variability of the typology of existing activities). The data are consolidated at corporate level with the water footprint tool used to prepare this report.

For reporting purposes, operational control is considered as an organizational boundary. Under this approach a company accounts for data from those sources over which it has full authority to introduce and implement its operational policies, regardless of its shareholding in the company.

In 2023, due to the inclusion of new companies in the scope of consolidation, the historical values have been adjusted for comparability. In the absence of data prior to the inclusion in the scope of Grupo Ferrovial, the verified 2023 data of these companies have been transferred to the historical data.

Circular economy

The waste produced is reported annually by all business lines, both in terms of generation and type of treatment. For reporting purposes, operational control is considered as an organizational boundary. Under this approach a company accounts for data from those sources over which it has full authority to introduce and implement its operational policies, regardless of its shareholding in the company.

In 2023, due to the inclusion of new companies in the scope of consolidation, the historical values have been adjusted for comparability. In the absence of data prior to the inclusion in the scope of Grupo Ferrovial, the verified 2023 data of these companies have been transferred to the historical data.

Safety, health and welfare

In the case of safety, health and well-being indicators, the company collects information on a monthly basis, which allows reporting to Senior Management with the required periodicity. The data, both for own employees and contractors, are collected at each work center and aggregated by a specific corporate tool (Cority and F-Safety). The hours worked by own employees and contractors, including overtime, are recorded in both applications. In the case of occupational accidents, the site foreman notifies the health and safety technician, who initiates the accident investigation process. In 2022, the Services business was completely divested, which has led to significant variations in some ratios such as the frequency index. In relation to SIF (serious injuries and fatalities), the following are considered serious injuries: fracture, except of fingers or toes; amputation; loss of vision; hospitalization for more than one day; loss of consciousness due to inhalation, ingestion or absorption of hazardous substances or biological agents, if there is hospitalization for more than one day.

Human Resources

Human resources data, and all associated ratios, are collected for a large part of the perimeter through Workday, and then consolidated globally. In some cases, calculations are made that do not cover 100% of the perimeter, in which case this is specifically indicated.

Social action

For the collection of information related to social action, the company applies the LBG methodology. This methodology allows the classification, management and measurement of social activities, facilitates their comparability with other companies, and makes it possible to sort and classify both projects with the third sector and sponsorships or volunteer initiatives.

Ethics and integrity

Ferrovial’s Ethics Channel tool records all communications received during the year. Additionally, the rest of the communication channels available in the Group send the requested information when they receive an email from the Compliance Department requesting updated information on their communication channel. The Compliance Department of FERROVIAL Construction reports on Budimex, FB Serwis and Mostostal Krakow, Ferrovial Construction UK as well as Webber. Once the information is received, the Compliance Department records the information, analyzes the different cases and summarizes the information. The information reported annually is the summary of the information reported to the different meetings of the Audit and Control Committee held during the year in May, July, October, December and February.

The Sustainability Strategy has specific areas of action and objectives for each year and for the environmental, social and governance (ESG) areas. It is also aligned with the Horizon 24 business strategy and covers Ferrovial’s value chain, from customers to suppliers. Its objectives and monitoring are detailed in the strategy chapter. Some of the KPIs have different scope compared to other KPIs explained along the report or are limited to a business area: (i) Serious injuries and Fatals frequency rate. This KPI include employees, subcontractors and all companies independently of its stake (except those airports that do not consolidate); (ii) Road safety and time savings KPIs are specific KPIs of Cintra.

TRACEABILITY

Ferrovial guarantees the traceability of information relating to corporate responsibility thanks to a reporting system, in place since 2007, which allows detailed information to be obtained down to company level, facilitating partial consolidations by geography or business. During 2023, the information requested has been periodically reviewed to adapt the system to the information requirements of the company’s different stakeholders and the recommendations of the external and internal auditors. The software used has made it easier for corporate management to collect quarterly information for management and internal reporting to Senior Management.

In 2023, the reporting system enabled the collection of 626 quantitative and  qualitative indicators, in 104 companies, thanks to the collaboration of more than 200 users.

RESTATEMENT OF INFORMATION

During 2023 there have been several changes in the scope of companies that may affect the comparability of the data contained in the Report, although in general they are not particularly relevant in comparison with the company as a whole. The main event of the year in this regard was the sale of 89.2% of the Euroscut Azores Toll Road. To ensure maximum transparency and comparability of the data, the body of the report itself indicates when any indicator from previous years has been modified or presents significant changes that affect the comparability of the information.

STAKEHOLDERS

Ferrovial is committed to transparency in market information, through continuous improvement of communication channels with all its stakeholders, based on innovative corporate information that, in addition to financial aspects, considers environmental and social variables.

The company considers stakeholders to be those individuals or social groups with a legitimate interest who are affected by present or future actions. This definition includes both stakeholders who are part of the company’s value chain (shareholders, employees, investors, customers and suppliers), considered as partners in the development of the business, and external stakeholders (administrations, governments, the media, analysts, the business sector, trade unions, the third sector and society in general), starting with the local communities in which the company carries out its activities.

This relationship is dynamic as the environment is changing at an increasingly rapid pace. Ferrovial’s business depends largely on relations with the Public Administrations of the countries in which it operates. Ferrovial holds decision-making positions in organizations that promote corporate responsibility at national and international level, such as the SERES Foundation, Forética, the Spanish Global Compact Network, the CEOE CSR Committee and the Spanish Association for Quality (AEC). In 2023, Ferrovial’s CEO was a member of the Executive Committee of SERES Foundation, and the General Secretary of Forética is also a representative of the company. Ferrovial also collaborates with other organizations that promote sustainability in different areas, such as member of the new Construction and Engineering working group created by Global Compact to drive sustainable transformation in the sector, member of the Governing Board of EIT Climate-KIC, a Knowledge and Innovation Community that works to accelerate the transition to a zero-carbon, climate-resilient society supported by the European Institute of Innovation and Technology. Ferrovial also participates in Science Based Targets Initiative (SBTi) working groups and collaborates with the International Organization for Standardization (ISO) and the Spanish Association for Standardization (UNE) in the definition of the ISO 53001 standard on the Management System for the United Nations Sustainable Development Goals. The company also collaborates with the Green Building Council (GBCe), Corporate Leaders Group, EU Green Growth Group, WWF, We Mean Business, European Climate Pact, Spanish Business and Biodiversity Initiative (from Biodiversity Foundation, WAS, CitiES2030. Spanish Green Growth Group and Circular Economy Pact.

Ferrovial is characterized by absolute political neutrality, carrying out its activities for both public administrations and private clients in the countries where it operates. The company does not make financial or in-kind contributions to political parties or electoral candidates. However, Ferrovial is a member of business representation organizations or foundations for commercial exchange between countries linked to the development of its activity or the geographical area in which it operates. Through its presence and collaboration with these organizations, the company aims to contribute to the progress and development of all those fields of action in which it is present. Among these contributions, the contributions made to the Association of Infrastructure Construction and Concession Companies (SEOPAN) and the World Economic Forum stand out.

MATERIALITY ASSESSMENT

For Ferrovial, material issues are all those that may have a substantial influence on stakeholder assessments and decisions, affecting the ability to meet their present needs without compromising future generations.

The materiality analysis allows Ferrovial to identify and prioritize the most  relevant issues for the company and for stakeholders, considering which of them may have a greater potential impact on the company’s financial statements.

This analysis complies with the requirements established by the GRI reporting standard, taking into account the relevant issues for the Construction and Engineering sector according to SASB, reporting only what is material for the companies, avoiding non-relevant information. It also anticipates the European regulatory requirements that will come into force soon.

Ferrovial considers it appropriate to perform the materiality analysis on a biennial basis, as there are no significant variations in material issues over a shorter time horizon. In the latest edition, carried out in 2022, the issues were considered from a financial and non-financial point of view. Ferrovial executives were asked about the potential financial impact on the company’s accounts of the issues identified (financial relevance), while other stakeholders were asked about the importance of these same issues for a company such as Ferrovial (non-financial relevance). In this way, the Report pretends to offer a balanced and objective view of those issues that, by their nature, have significantly affected the company or its stakeholders.

The analysis process was developed in several phases:

• Identification and validation of issues. By consulting various relevant sources of information (GRI, SASB, World Economic Forum Global Risks, media coverage, sectoral reports by KPMG, Deloitte and PWC, rating agencies and ESG investors, as well as the materiality of 2020), the main trends and most relevant issues for the sector in which Ferrovial operates were identified. Once the initial list of issues was obtained, it was agreed with the main corporate and business managers, and a final list of 17 issues was determined.
• Determination of financial relevance. By means of an online survey addressed to the company’s executives, both from corporate areas and business lines, in the main geographies in which Ferrovial operates (USA, Canada, UK, Spain, Poland), they were asked to evaluate and prioritize the material issues identified.
• Determination of non-financial relevance. Prioritization of issues based on a survey of different stakeholders (suppliers, customers, NGOs, foundations, trade unions, etc.) in the main geographical areas in which Ferrovial operates.
• Prioritization. This is the result of graphically crossing financial and non-financial relevance, which is materialized in the materiality matrix.

According to financial relevance, three issues stand out: “Digitalization and Innovation applied to the business”, “Equal opportunities, development, attraction and retention of talent” and “Customer and user satisfaction and safety”. This means that Ferrovial executives consider these to be the three issues with the greatest potential impact on the company’s financial statements, although the impact on the company is moderate or slight in any case.

The priority issues from a non-financial point of view are, in order of importance, “climate change risks and GHG emissions reduction”, “labor rights and conditions” and “engagement with impacted local communities”. These results indicate that stakeholders consider these issues to be the most relevant in the ESG area.