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Letter from the chairman
- In Two minutes
- Value Creation
- Ferrovial in 2023
- Corporate Governance
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Appendix
- Alternative Performance Measures
- Sustainability management
- Reporting principles
- EU Taxonomy
- Task Force on Climate-Related Financial Disclosures (TCFD)
- ESG scoreboard
- Non-financial information and diversity reference table (Dutch Law)
- Contents of non-financial information statement (Spanish Law)
- SASB indicators
- GRI standards Indicators
- Appendix to GRI indicators
- Glosary of terms
- Board of Directors
- Assurance Report of the independent auditor
- Other information
- INDIVIDUAL FINANCIAL STATEMENTS
- AUDIT REPORT
Ferrovial in 2023
Value Chain
EFFICIENCY AND EXCELLENCE
Efficient management of the supply chain is essential to guarantee quality, reduce costs and improve lead times, resulting in greater customer satisfaction. The company has mechanisms in place to understand the expectations of the users of its infrastructures, which, together with the implementation of new technologies, enables a unique experience.
SUPPLY CHAIN
Ferrovial’s supply chain management is regulated through the Global Purchasing Policy and the Purchasing Procedure, fundamental tools to ensure efficient and sustainable purchasing management and to maintain an ethical and responsible relationship with suppliers. These procedures provide global guidelines that are adapted locally. It is therefore guaranteed that the products and services purchased comply with the requirements specified in the contract with the customer and those of the company, acquiring them under the best possible conditions and from suppliers capable of meeting these requirements, Also incorporating responsible and sustainable purchasing criteria in the decision making process.
Ferrovial’s supply chain varies depending on its different business units, although it is mainly concentrated in the Construction activity, which represents more than 93% of suppliers and orders. It is mainly made up of manufacturers, distributors and subcontractors, and is characterized by a high number of suppliers, a significant degree of subcontracting, a high percentage of local suppliers, a very diverse supplier typology and the need to adapt to the requirements of each local market.
The company focuses on maintaining an ethical and responsible relationship with its suppliers, applying a strict Ethical Integrity Due Diligence Procedure and sharing with them the Supplier Code of Ethics, ensuring a relationship with suppliers that share its values and principles. It is essential to build lasting relationships with strategic partners to achieve a comprehensive approach in line with corporate objectives and find synergies in its supply chain. Ferrovial is committed to the continuous improvement of its processes, as well as to achieving environmental, social and ethical objectives through its purchases, which involves considering not only economic aspects but also ESG impacts.
NUMBER OF SUPPLIERS
NUMBER OF SUPPLIERS ASSESSED
PURCHASES FROM LOCAL SUPPLIERS
In this regard, effective risk management is essential and includes the evaluation of suppliers and the implementation of appropriate measures to ensure the quality and safety of supplies. To this end, the main risks and opportunities that could affect the creation of value in the supply chain are monitored, as well as the economic, social and environmental impacts associated with the activity. For example, to mitigate the risk of disruptions in the supply chain, the ecosystem of critical suppliers is monitored, and viable alternatives are identified to guarantee supply continuity and minimize possible negative effects.
Overall, the degree of criticality of all suppliers is analyzed, defining a critical supplier as one whose purchasing volume is significant from an economic perspective, or one whose supplies or services could imply a negative impact on business continuity in the event of an incident, either by manufacturing critical materials or equipment or by being difficult to replace. Based on these criteria, at the end of 2023, there were 216 critical suppliers identified in the Construction division, of which 214 were Tier-1 and 2 Tier-2. Of these suppliers, 130 were evaluated, of which seven were detected with potential negative impacts. Among the latter, three have an improvement plan implemented while one supplier is involved in a corrective action plan.
During 2023, 7,562 suppliers were assessed (12,189 en 2022), of which less than 1% were rejected (similar figure in 2022). Regarding supplier turnover, a total of 31.9% corresponded to critical suppliers (24.27 in 2022), while 96.9% were local suppliers (97.03% in 2022).
COMMITMENT TO INTEGRATE
INTEGRATING ESG PRINCIPLES
Ferrovial has a Suppliers Code of Ethics, integrated into the Suppliers Ethical Integrity Due Diligence Procedure, which all suppliers are required to be aware of and accept before establishing contractual relations with the company. It sets out the basic principles that should govern their behavior in their business relationship with Ferrovial. In addition, model orders and contracts include clauses that address environmental, social and labor, health and safety, compliance with the Global Compact guidelines, along with ethics and anticorruption issues.
ESG affairs are also considered in the analysis of suppliers. In this line, high-risk suppliers are classified as those that supply products with high-risk or belong to sectors identified as high-risk, and/or manufacture the products supplied in high-risk countries.
The assessment and tracking of supplier performance also takes ESG criteria into account. The Construction division uses a computer application for the evaluation and follow-up of suppliers on the basis of the appraisals carried out at each construction site or work center. The valuations make it possible to qualify suppliers on an ongoing basis, and the result can lead to a warning for the supplier, the implementation of an action plan for improvement, or even suspension from working with Ferrovial, depending on the severity of the case.
Finally, the Ethics Channel is available to all stakeholders on Ferrovial’s website, guaranteeing transparency in relations and allowing the notification of any conduct that is not in line with the company’s standards.
SUSTAINABLE PURCHASING
The implementation of new technologies and innovative projects in the supply chain is essential to achieve more efficient, transparent and sustainable management. In this regard, various initiatives continue to be carried out in the company, highlighting:
- Low Carbon Concrete Project: seeks to develop sustainable concretes with low levels of CO2 emissions, facilitating the achievement of environmental objectives, especially related to the reduction of the carbon footprint.
- Guide to Procurement Aligned with the European Union Taxonomy: its objective is to advise those responsible for purchasing on the selection of suppliers that comply with the taxonomic requirements.
- Purchase of electricity from renewable sources: the company promotes the acquisition of electricity with a guarantee of origin and is progressively moving towards the 100% target for 2025 established in the Horizon 24 Strategic Plan. In 2023, 68.5% of the electricity purchased was produced from renewable sources.
- Efficient vehicle fleet: the company has also established in Horizon 24 the decarbonization of its vehicle fleet. The goal is to reduce emissions from the fleet to 33% by 2030.
- Green Purchasing Catalog: it aims to promote the purchase of sustainable products, thus contributing to the reduction of environmental impact in the construction sector. In 2023 it has been updated and expanded, adding new alternatives for the supply of green products that have Environmental Product Declarations and additional information accrediting improvements in sustainability. These products will be available at both the contracting and execution stages, allowing project managers to access detailed information on their environmental impact.
These initiatives reflect the company’s commitment to sustainability and the fight against climate change, promoting a more responsible and conscious management of natural resources.
Reducing emissions in the supply chain
Ferrovial has launched the Supplier Collaboration Program to address the reduction of Scope 3 greenhouse gas emissions.
As part of this initiative, we have begun to work with suppliers to learn about their performance in terms of emissions, product recyclability and other aspects of environmental management. In this way, a communication channel is established that enables deepening the sustainable management of the supply chain, promoting the decarbonization of the business.
In 2023, a survey was conducted with the main suppliers of significant materials (steel, aggregates, cement, concrete, bitumen and agglomerate) with a scope of 84% of the turnover of these suppliers, based on 2022 revenue data. The information requested focused on carbon footprint data, the percentage of recycled material contained in the products sold to Ferrovial, and whether they have Environmental Product Declarations (EPD).
The information obtained is currently being analyzed to identify possible avenues for collaboration with suppliers in order to achieve progress in reducing the carbon footprint for both parties.
Supplier360, a supply chain management support tool
Ferrovial uses Supplier360, an IT tool that monitors suppliers through advanced data analytics techniques, language processing and internet searches. This makes it possible to detect potential risks, whether financial, environmental, legal, labor, human rights or reputational. The platform provides additional information to that already available in the supplier databases, both for the selection, contracting and follow-up phases.
In 2023, 1,130 suppliers of Ferrovial Construction have been monitored, representing more than 60% of supplier turnover in Spain, USA and UK. A total of 588,872 data have been collected through this tool. Likewise, the data sources have been expanded, incorporating mainly those related to compliance and ESG behavior. The information obtained from Supplier360 has also been integrated into the corporate purchasing tool, which has allowed greater visibility of the information throughout the company.
SUPPLIERS BY COUNTRY
SUPPLIERS BY BUSINESS (%)
QUALITY
The Quality and Environment Policy provides a key lever to drive continuous improvement, technical capabilities and process efficiency. In order to achieve these objectives, Ferrovial implements an efficient management based on innovation and the use of new technologies, offering a unique and high-quality experience to its customers and users, managing all the aspects that influence it in an excellent performance.
For this purpose, a unified work method is established, implementing an operating procedure in all contracts to offer products and services that meet quality requirements and consider environmental criteria.
To ensure compliance, the company has implemented an integrated management system in accordance with quality, environmental and energy criteria in all its contracts, which serves as a tool for complying with the principles defined in its policy.
CERTIFIED ACTIVITY
ISO 14001
CERTIFIED ACTIVITY
CUSTOMER SATISFACTION
INTEGRATED MANAGEMENT SYSTEM
In 2023, the certified activity reached 86% according to ISO 9001 standard, 86% according to ISO 14001 and 69% according to ISO 50001. The calculation is based on the number of contracts that have implemented these systems coinciding with the taxonomy perimeter. In some cases, services are also certified under other standards due to local requirements. It should be noted that in 2023 three new subsidiaries in the Construction division in the multisite were included under the scope of ISO 9001 and ISO 14001 certifications in Peru, Colombia and France .
In addition, Dalaman Airport continues to make progress in obtaining certificates since its acquisition in 2022, having implemented several formalized management systems to ensure the standardization and quality of its activities: ISO 9001 for quality, ISO 14001 for environmental management, ISO 50001 for energy efficiency, ISO 45001 for occupational health and safety, ISO 27001 for information security and ISO 10002 for customer complaints and claims.
As part of the system management, internal audits are conducted and complaints are recorded in 100% of the contracts. In 2023, 495 external complaints/communications were received, of which 94% were successfully closed. Dalaman Airport in this field has carried out a process of digitalization of the management and collection of complaints to improve the monitoring and resolution of complaints.
OTHER CERTIFICATIONS
In 2023, the certification that AENOR awarded in 2020 to Ferrovial on sustainability and business contribution to the Sustainable Development Goals was renewed. This certification highlights the value of the company’s Sustainability Strategy and the actions carried out by the company in ESG matters, reinforcing its commitment to the SDGs.
Since 2010, the company has been awarded the Madrid Excelente guarantee mark, which recognizes and certifies quality and excellence in business management, highlighting innovation, environmental and social sustainability and customer satisfaction.
In addition, in 2023 Ferrovial Construction and Cadagua obtained the SGE21 certification from Foretica, a standard that enables the implementation, auditing and certification of an Ethical and Socially Responsible Management System, which provides the company a competitive advantage in the short term with respect to clients and stakeholders.
Ferrovial is also collaborating 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.
There are also other certified systems that comply with regulations related to health and safety, the environment, governance or collaborative business, among them:
| Certification | Name | Certification | Name |
|---|---|---|---|
| UNE 19601 | Criminal compliance management systems | ISO 45001 | Occupational health and safety management systems |
| UNE-ISO 37001 | Anti-bribery management systems | ISO 27001 | Information security management systems |
| UNE 19602 | Tax compliance management system | PAS 2080:2016 | Carbon Management in infrastructures |
| UNE 166002 | R&D&I management system | EMAS III | Voluntary participation of organizations in a community-based management system and environmental auditing |
| BIM ISO 19650 | Managing information throughout the life cycle of a built asset by utilizing BIM |
LEGAL REQUIREMENTS AND TECHNICAL STANDARDS
Ferrovial’s activity requires strict regulatory compliance in relation to legal provisions on quality, environment and energy, both at regional and sector level. Therefore, the company has implemented external (i2i and WorldLex) and internal (DocSite) digital solutions to guarantee and facilitate the monitoring of applicable legislation and technical regulations (among others, those related to air, noise and light pollution). These tools are accessible to any employee. All this contributes to achieving quality assurance, as well as efficient management focused on legislative compliance, mitigation of negative impacts and business risk control.
CUSTOMER AND USER SATISFACTION
Under the premise of continuous improvement, Ferrovial seeks to meet the expectations of customers and users, as well as to increase their degree of satisfaction with the services provided and products offered. To this end, all Ferrovial’s business units implement an annual survey program to identify the strengths and weaknesses of the quality offered and establish improvement actions through associated plans aimed at increasing the quality of the service provided.
- Customers, including public administrations and private developers, value the performance of the business in terms of reliability, trust, operational excellence, responsiveness, innovation and sustainability.
- The users of the infrastructures and services evaluate the quality of the service offered. Users are understood as those individuals who interact directly or indirectly with the services and infrastructures offered by the company, but with whom they are not bound by a contractual agreement.
CUSTOMER SATISFACTION
(OUT OF 5)
QUALITY, ENVIRONMENT AND ENERGY TRAINING
Ferrovial promotes awareness and training in quality, environment and energy among its employees and collaborators, with the aim of improving their performance and capabilities. Training actions have focused on waste management, climate change, water footprint, pollution and biodiversity.
It is worth mentioning the training in Ferrovial Construction, more than 14,000 workers have received specific training on these topics. One of the most significant areas of learning is waste management, so during this year more than 82% of internal employees have received training in this area; likewise, around 745 hours have been dedicated to external personnel.
Ferrovial Construction and Cadagua obtain Foretica’s SGE 21 certification
Ferrovial Construction and Cadagua have obtained the SGE 21 certification after successfully completing the audit performed by the independent certification organization SGS.
SGE21, Foretica’s Ethical and Socially Responsible Management System, is the first European standard that allows the implementation, auditing and certification of an ethical and socially responsible management framework, constituting a key tool for the integration of environmental, social and good governance aspects in the management of companies.
This certification reinforces Ferrovial’s commitment to the sustainability which is one of the foundations on which the company’s strategy is based.
