11. Usage of Natural Resources

The company discloses the extent to which natural resources are used for the company’s business activities. Possible options here are materials, the input and output of water, soil, waste, energy, land and biodiversity as well as emissions for the life cycles of products and services.

Environmental protection is a top priority throughout the HOCHTIEF Group. In order to avoid negative effects as far as possible and to design our activities in the best possible way, we introduce comprehensive environmental protection measures in our activities and often exceed the high requirements of legislators and customers.

We set our environmental indicators (more on this under criterion 12, performance indicators 11-12 and the Group Report starting on page 140) in relation to the Group's output volume in the respective fiscal year - EUR 25.45 billion in fiscal year 2018 (2017: 24.52 billion). Factors affecting the indicators include the quantity, type, location, and size of our projects. As a rule, the amount of greenhouse gas emissions vary relative to changes in Group work done. We view and evaluate this connection on an ongoing basis. Our goal is to define a base year for our performance indicators by 2020 in order to set specific reduction targets in the years ahead.

Organizational structure of environmental protection in the HOCHTIEF Group

Responsibility for environmental protection at HOCHTIEF lies with the Center for Occupational Safety, Health and Environmental Protection (OSHEP). The head of the OSHEP Center reports directly to the Group Executive Board. An integral part of the Group directive, our Group-wide environmental policies underpin HOCHTIEF's environmental protection culture and pave the way for our project activities. The management systems implemented for environmental protection comply with the ISO 14001 international standard. In 2018, the proportion of Group units certified on the basis of environmental management systems accounted for 75.3 percent (2017: 77.3 percent).

Early risk identification

To ensure that projects are not only commercially successful but also environment-friendly and accident-free, compliance with the underlying statutory and standards-based requirements is a constant focus for all managers at HOCHTIEF. In close consultation with the project teams, our experts identify and evaluate the environmental risks in each project and take corresponding factors into account from the outset in investment decisions. Preventive measures are already put in place in the planning phase and integrated into the construction process.

Involving employees

It is important to us that our employees are aware of environmental issues and develop their understanding of them. We involve and sensitize the workforce to ensure that everyone understands environmental corrlations. The resulting package of measures includes personal training, on-site instruction, and training lectures. HOCHTIEF's environmental experts also engage in professional development and share their knowledge with the project teams on the implementation of environmental protection measures.

12. Resource Management

The company discloses what qualitative and quantitative goals it has set itself with regard to its resource efficiency, in particular its use of renewables, the increase in raw material productivity and the reduction in the usage of ecosystem services, which measures and strategies it is pursuing to this end, how these are or will be achieved, and where it sees there to be risks.

Environmental protection in the HOCHTIEF Group

Environmental protection is integrated into processes in all projects. For this purpose, management systems are in place in accordance with the ISO 14001 international standard. In 2018, the proportion of Group units certified on the basis of environmental management systems was 75.3% (by number of employees, 2017: 77.3 %).


Water management


Water conservation and the responsible use of this resource are highly important to us, because large quantities of water are often required in construction projects or interventions in the groundwater balance are necessary. To work efficiently and at the same time environmental compatible and responsible, each project team develops tailor-made water conservation concepts. The use of groundwater and drinking water in the course of the project, the discharge of process water and waste water, infiltration, water pollution and treatment are essential aspects. Most projects, certified projects in particular, include responsible water management. A case in point is the WestConnex M4 East project in Sydney, where the consortium led by CPB Contractors captures rainwater specifically in order to spray construction access roads. By this way, the team used 350,000 liters of rainwater between June and September 2018. Also, at Turner, projects are planned to minimize soil erosion and sediment loss as well as surface water and groundwater pollution.

As CIMIC operates in water-scarce regions where effective water management is of immense importance on projects due to severe scarcity, CIMIC actively investigates opportunities for conserving and recycling water in every project. The company's aims are to minimize the use of mains water as well as increase water recycling and recovery. Reused water accounted for approximately 53 percent of total water consumption at CIMIC in 2018, presenting a significant improvement on the prior year (2017: 35 percent). CIMIC regularly participates in the CDP Water Ranking and achieved a B- score in 2018 (2017: B score).


Waste Management

Since construction processes generally generate large quantities of waste, we at HOCHTIEF are very careful to handle materials responsibly, especially the mineral content of construction waste. As a matter of principle, we seek to eliminate avoidable waste and reduce or recycle unavoidable waste with a view to the increasing scarcity of resources. Our aim is a constantly high recycling rate (including recovery) of at least 85 percent each year.


The total volume of waste increased in 2018 compared with the prior year, mainly driven by ongoing tunneling projects at CIMIC producing large quantities of excavated material. In 2018, the Group-wide recycling rate was 87.1 percent (2017: 90.6 percent). Fluctuations in waste volumes are normal due to the pronounced variation in our contracting business, with major infrastructure projects generating large quantities of waste. Usage of all materials is monitored and planned in detail. Our project-specific teams work from an early stage to develop waste disposal plans that optimize economic and environmental performance in material flows. We also aim to minimize material and waste transportation by reusing materials in the same projects when possible.

Critical substances contained within built-in materials are a special challenge in demolition, convesion, and revitalization projects. These need to be identified and removed in a safe and environmentally compatible manner before constructions starts. We provide ongoing training to ensure the necessary level of employee information and awareness. We keep a close watch on refurbishment contracts where installed materials were permitted at the time of construction but nowadays count as a health hazard. We aim to maximize recycling quality in the long term by segregating contstruction waste into high-purity fractions.


Hazardous materials

Where projects involve hazardous materials or products containing hazardous substances, responsible and correct handling of such materials is a major priority for HOCHTIEF as these can endanger people and the environment. Since legal and internal regulations vary from country to country, the requirements of the hazardous substances registers are stored in the HOCHTIEF Europe division via an online program. There, employees can also view workplace-specific operating instructions, precise information on individual hazardous substances and safety data sheets.


Biodiversity conservation

In the context of our activities that can affect the natural environment and biodiversity, we strive to minimize and reduce the negative effects. When this is not possible on a specific project, we develop disturbance avoidance strategies so that project work can continue effectively and safely. To compile environmental assessments before commencing construction and including species conservations in detailed environment plans, we work in consultation with authorities. Measures include biodiversity management strategies, assessments, regular monitoring, and specialist analysis. For example, on the A6 freeway project, an area of approximately 3.6 hectares by the River Neckar that frequently floods, is being set down to a lower level.

As mining activities have considerable environmental impacts, CIMIC uses environmental-friendly mining practices and rehabilitates sites when mining is complete. In 2018, CIMIC companies rehabilitated a total of around 614 hectares of land following mining activities.


Opportunity and risk situation in the HOCHTIEF Group: Natural environment

Along with the risk assessment for extreme weather conditions, the prevention of environmental incidents is also a top priority: Even minor environmental incidents can have a lasting negative impact on the environment, people, and wildlife. Additionally, they can adversely impact project profitability and the company’s reputation. As part of our environmental and risk management, we identify potential hazards and factor them into project planning. Recording and analysis of environmental incidents provides important information about risks and enables us to prevent potential environmental damage by adopting targeted countermeasures.

Key Performance Indicators to criteria 11 to 12

Key Performance Indicator GRI SRS-301-1: Materials used
The reporting organization shall report the following information:

a. Total weight or volume of materials that are used to produce and package the organization’s primary products and services during the reporting period, by:
i. non-renewable materials used;
ii. renewable materials used.

i.
Steel: 1,268,326 tons (coverage 100%)
Concrete: 3,642,989 cubic meters (coverage 100%)
Wood: 3,773,118 cubic meters (coverage 100%)
Asphalt: 1,111,719 tons (coverage 48%)

ii.
The amount of renewable materials is not categorized over the HOCHTIEF Group due to the decentral project management. 

Further information can be found in the HOCHTIEF Group Report 2018.

Key Performance Indicator GRI SRS-302-1: Energy consumption
The reporting organization shall report the following information:

a. Total fuel consumption within the organization from non-renewable sources, in joules or multiples, and including fuel types used.

b. Total fuel consumption within the organization from renewable sources, in joules or multiples, and including fuel types used.

c. In joules, watt-hours or multiples, the total:
i. electricity consumption
ii. heating consumption
iii. cooling consumption
iv. steam consumption

d. In joules, watt-hours or multiples, the total:
i. electricity sold
ii. heating sold
iii. cooling sold
iv. steam sold

e. Total energy consumption within the organization, in joules or multiples.

f. Standards, methodologies, assumptions, and/or calculation tools used.

g. Source of the conversion factors used.

a. Total energy consumption from the non-renewable sources Gasoline, Diesel, and LPG as well as electricity: 11.017.937 MWh

b. Total fuel consumption from renewable sources: Green Energy 14,000 MWh

c.i. Electricity consumption: 337,502 MWh with a Group Coverage of 95%
ii. Heating consumption: 8,570 MWh
iii. Cooling consumption: 412 mwh
iv. Steam consumption: /

d.i. Electricity sold: /
ii. Heating sold: /
iii. Cooling sold: /
iv. Steam sold: /

e. Total energy consumption within the organization: 11,031,937 MWh

f. The indicators specified in this report under the heading of climate protection relate exclusively to materials and services purchased by the HOCHTIEF Group. In the HOCHTIEF Asia Pacific division, the indicators comply with the statutory requirements of the National Greenhouse and Energy Reporting Act 2007. 

We express our environmental indicators listed below in relation to Group work done in the year in question. The volume, type, location, and scope of the projects we have in progress during the year affect these indicators.

g. Sources for carbon conversion factors: GHG Protocol, DEFRA and Germany’s Federal Environmental Agency, NGER
 

Key Performance Indicator GRI SRS-302-4: Reduction of energy consumption
The reporting organization shall report the following information:

a. Amount of reductions in energy consumption achieved as a direct result of conservation and efficiency initiatives, in joules or multiples.

b. Types of energy included in the reductions; whether fuel, electricity, heating, cooling, steam, or all.

c. Basis for calculating reductions in energy consumption, such as base year or baseline, including the rationale for choosing it.

d. Standards, methodologies, assumptions, and/or calculation tools used.

The nature, scope, and location of construction projects ongoing during the year have a direct impact on energy consumption levels and the emissions inferred from them. By their very nature, projects are not mutually comparable. Using a tunneling machine to bore through hard rock, for example, is much more energy-intensive than a building construction site operating on softer soil.

The total volume of energy consumption increased in 2018 compared with the prior year. This was largely driven by ongoing tunneling projects at CIMIC. In addition to that, HOCHTIEF’s order backlog rose during the reporting period to EUR 47.3 billion, corresponding to an increase of 7%. Only single examples can show reductions in energy consumption as a result of conservation and efficiency initiatives.

Key Performance Indicator GRI SRS-303-3: Water withdrawal
The reporting organization shall report the following information:

a. Total water withdrawal from all areas in megaliters, and a breakdown of this total by the following sources, if applicable:
i. Surface water;
ii. Groundwater;
iii. Seawater;
iv. Produced water;
v. Third-party water.

b. Total water withdrawal from all areas with water stress in megaliters, and a breakdown of this total by the following sources, if applicable:
i. Surface water;
ii. Groundwater;
iii. Seawater;
iv. Produced water;
v. Third-party water, and a breakdown of this total by the withdrawal sources listed in i-iv.

c. A breakdown of total water withdrawal from each of the sources listed in Disclosures 303-3-a and 303-3-b in megaliters by the following categories:
i. Freshwater (≤1,000 mg/L Total Dissolved Solids);
ii. Other water (>1,000 mg/L Total Dissolved Solids).

d. Any contextual information necessary to understand how the data have been compiled, such as any standards, methodologies, and assumptions used.

a. Water consumption in 2018 amounted to a total of 21,123,194 m3 with a Group Coverage of 95%.

i. Fresh surface water: 4,596,236 m3

ii. Fresh ground water 1,438,948 m3
iii. Seawater: /
iv. Produced water: /
v. Municipal water supplies: 12,744,000 m3

Water reused: 2,344,010 m3


b. /

c. /

You can find more information on https://reports.hochtief.com/gr18/140.jhtml (table 4).

Key Performance Indicator GRI SRS-306-3: Waste generated
The reporting organization shall report the following information:

a. Total weight of waste generated in metric tons, and a breakdown of this total by composition of the waste.

b. Contextual information necessary to understand the data and how the data has been compiled.

a. Total weight of hazardous waste: 34,507 tons

b. Total weight of non-hazardous waste: 14,503,561 tons
i.+ii. 13,627,330 tons (87.1% of the total amount of non-hazardous waste) were recycled or reused (coverage: 95%). 
vii. Landfilled/disposed waste: 910,738 tons

c
ii. Information provided by the waste disposal contractor

13. Climate-Relevant Emissions

The company discloses the GHG emissions in accordance with the Greenhouse Gas (GHG) Protocol or standards based on it and states the goals it has set itself to reduce emissions, as well as its results thus far.

Energy efficiency and climate protection

HOCHTIEF's core business, construction and mining, is energy and emission intensive. The greatest impacts of our activities are found at the upstream end and the downstream end of the construction value chain. We have committed ourselves to the goal of limiting global warming to not more than 2 degrees Celsius or if possible rather not more than 1.5 degrees Celsius. On the occasion of the 22nd World Climate Conference in 2016, we signed the declaration calling for specific targets to be formulated for individual sectors. HOCHTIEF is an active participant in the dialogue forum "Business Makes Climate Protection", which was initiated in 2017 on behalf of the German Federal Ministry for the Environment, Nature Conservation, Construction and Nuclear Safety, and is involved in a working group on climate friendly supply chains.

In 2018, the non-governmental organization CDP once again honored the HOCHTIEF Group for its contribution to climate protection and the reduction of pollutants. HOCHTIEF achieved a score B (2017: B) in the climate ranking and thus attains management status according to the CDP criteria. Our goals is to improve this rating to an A score.

Climate protection

In order to achieve our climate targets and reduce the production of harmful greenhouse gases, we determine the key figures that include the energy consumption and emissions of the main corporate units. These data are mainly based on substance-specific cost elements and on the calculation of average prices.

The key figures listed in the Group Report on page 140 onwards relate exclusively to materials and services purchased by the HOCHTIEF Group. In the HOCHTIEF Asia Pacific division, the key figures comply with the statutory requirements of the National Greenhouse and Energy Reporting Act 2007.

Our goal in data collection is to achieve a uniform level of detail across divisional companies for enhanced data comparability and verifiability. As of 2019, consumption data will also be collected on a project-related basis.

CO2 reductions from sustainable construction

HOCHTIEF actively promotes sustainable construction. Green buildings make a substantial contribution when it comes to cutting carbon emissions. Certified buildings are made to be resource-efficient, using sustainably produced or recycled materials, contracting out works regionally, and favoring short transportation distances. According to the World Green Building Council, the carbon emissions of green buildings are nearly a third lower. In a U.S. study, certified buildings showed on average engery saving of 36 percent relative to conventional buildings.

To prevent additional ground surface sealing, preserving the urban skyline , and ensuring the reuse of materials, many HOCHTIEF projects involve converting, modernizing, revitalizing, or refurbishing existing structures instead of new builds. The environmental benefits from this are less transportation, smaller waste volumes, and reduced resource use. In addition, the new more energy-efficient design significantly improves energy performance.

We aim to further expand our portfolio of sustainable projects in the long term. Capable employees trained to supervise the certification process enable us to achieve this aim. A total of 1,418 accredited auditors were employed across the HOCHTIEF Group in 2018.

In 2018, HOCHTIEF worked on projects worth around EUR 8.2 billion in the green building and green infrastructure segments (2017: EUR 7.6 billion). This growth illustrates the efforts of the Group and its clients to achieve sustainable construction. HOCHTIEF's American company Turner is the US leader in green building and our company CPB Contractors is also a leading provider of sustainable infrastructure in Australia.

Key Performance Indicators to criteria 13

Key Performance Indicator GRI SRS-305-1: Direct (Scope 1) GHG emissions
The reporting organization shall report the following information:

a. Gross direct (Scope 1) GHG emissions in metric tons of CO2 equivalent.

b. Gases included in the calculation; whether CO2, CH4, N2O, HFCs, PFCs, SF6, NF3 or all.

c. Biogenic CO2 emissions in metric tons of CO2 equivalent.

d. Base year for the calculation, if applicable, including:
i. the rationale for choosing it;
ii. emissions in the base year;
iii. the context for any significant changes in emissions that triggered recalculations of base year emissions.

e. Source of the emission factors and the global warming potential (GWP) rates used, or a reference to the GWP source.

f. Consolidation approach for emissions; whether equity share, financial control, or operational control.

g. Standards, methodologies, assumptions, and/or calculation tools used.

a. Scope 1 Greenhouse gas emissions amounted to a total of 2,891,322 tons CO2 (Coverage 100%).

b. Exclusively CO2

c. Data not available

d. All data usually refer o the previous fiscla year and the related forecast

e. Sources for carbon conversion factors: GHG Protocol, DEFRA and Germany’s Federal Environmental Agency, NGER

f. Financial  control: The coverage indicates the coverage of data in relation to Group work done. 

g. GHG Protocol, DEFRA und Germany’s Federal Environmental Agency, NGER

Key Performance Indicator GRI SRS-305-2: Energy indirect (Scope 2) GHG emissions
The reporting organization shall report the following information:

a. Gross location-based energy indirect (Scope 2) GHG emissions in metric tons of CO2 equivalent.

b. If applicable, gross market-based energy indirect (Scope 2) GHG emissions in metric tons of CO2 equivalent.

c. If available, the gases included in the calculation; whether CO2, CH4, N2O, HFCs, PFCs, SF6, NF3, or all.

d. Base year for the calculation, if applicable, including:
i. the rationale for choosing it;
ii. emissions in the base year;
iii. the context for any significant changes in emissions that triggered recalculations of base year emissions.

e. Source of the emission factors and the global warming potential (GWP) rates used, or a reference to the GWP source.

f. Consolidation approach for emissions; whether equity share, financial control, or operational control.

g. Standards, methodologies, assumptions, and/or calculation tools used.

a. Scope 2 Greenhouse gas emissions amounted to a total of 212,286 tons CO2 (Coverage 95%).

e. Calculated on basis of local emission factors.

Key Performance Indicator GRI SRS-305-3: Other indirect (Scope 3) GHG emissions
The reporting organization shall report the following information:

a. Gross other indirect (Scope 3) GHG emissions in metric tons of CO2 equivalent.

b. If available, the gases included in the calculation; whether CO2, CH4, N2O, HFCs, PFCs, SF6, NF3, or all.

c. Biogenic CO2 emissions in metric tons of CO2 equivalent.

d. Other indirect (Scope 3) GHG emissions categories and activities included in the calculation.

e. Base year for the calculation, if applicable, including:
i. the rationale for choosing it;
ii. emissions in the base year;
iii. the context for any significant changes in emissions that triggered recalculations of base year emissions.

f. Source of the emission factors and the global warming potential (GWP) rates used, or a reference to the GWP source.

g. Standards, methodologies, assumptions, and/or calculation tools used.

Scope 3 Greenhouse gas emissions amounted to a total of 3,126,249 tons CO2 (Coverage 86%).

This view only relates upstream activities. For a detailed breakdown of Scope 3, please see HOCHTIEF website.

Key Performance Indicator GRI SRS-305-5: Reduction of GHG emissions
The reporting organization shall report the following information:

a. GHG emissions reduced as a direct result of reduction initiatives, in metric tons of CO2 equivalent.

b. Gases included in the calculation; whether CO2, CH4, N2O, HFCs, PFCs, SF6, NF3, or all.

c. Base year or baseline, including the rationale for choosing it.

d. Scopes in which reductions took place; whether direct (Scope 1), energy indirect (Scope 2), and/or other indirect (Scope 3).

e. Standards, methodologies, assumptions, and/or calculation tools used.

Scope 1: increased by 639,352 tons CO2 (28.4%)
Scope 2: decreased by 112,712 tons CO2 (34.7%)
Scope 3: increased by 184,857 tons CO2 (6.3%)

The data is a comparison to the previous year.