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  1. FERROVIAL IN 2014
  2. ENVIRONMENTAL MANAGEMENT AND NATURAL CAPITAL

ENVIRONMENTAL MANAGEMENT AND NATURAL CAPITAL

Introduction

Ferrovial´s Environmental Sustainability Policy

Greenhouse gas emissions (Scope 1 & 2 & 3 & Biomass) in absolute terms,
by type of source

The calculation method is based chiefly on the GHG Protocol (WRI&WBCSD), the most widely accepted approach internationally, while also adhering to ISO14064-1 standards. However, other methods have been used to factor in aspects specific to each business, such as DEFRA and DECC for operations in the United Kingdom, and EPER to estimate diffuse emissions from landfills. The calculation scope includes areas over which the Company has operational control.

The Scenario

The European Union aims to lead global environmental negotiations. Evidence of this was seen at the recent European Council meeting in October 2014, when it approved the 2030 Climate and Energy targets: a 40% reduction in emissions (against 1990), 27% penetration of renewable energy in the European energy mix and 27% energy efficiency.

There has been growth and consolidation of so-called “biodiversity markets” in regions where Ferrovial operates, following the pioneering format run for several decades in countries such as United States, Germany and Australia. United Kingdom, France and Spain are now developing their own regulations to help such environmental impact offset mechanisms gain a foothold. It is now a question of time before the EU establishes binding regulations for member states. We at Ferrovial are closely monitoring the evolution of such market mechanisms, readying ourselves to respond to the challenges that lay ahead and to capitalize on any opportunities that may emerge as a result in the medium term.

The “circular economy” concept seeks to drive efficiency in the economy and reduce the use of natural resources in productive activities. Aspects such as reuse, recycling and advanced waste management are all at the heart of this concept, with clear implications for a number of Ferrovial’s business areas (e.g. waste management).

Sustainability strategy

During 2014, Ferrovial remained at the forefront of its business sectors in terms of environmental responsibility and sustainability, according to the leading analysts and indices (e.g. Dow Jones Sustainability Index, Carbon Disclosure Project). One of the most highly valued aspects of the company is its ability to uphold strict environmental protection standards across all activities, while harnessing its know-how and technology to achieve its targets and helping to generate fresh ideas and new business models amid an environmental crisis on a global scale.

Aspects such as efficient use of energy and natural resources, as well as cutting emissions and waste, represent a priority in order to reduce the organization’s global impact. However, these are also recognized sources of innovation and for the development of potential new services that Ferrovial might subsequently offer to clients and users. In particular, energy efficiency in buildings, intelligent city management and low-emission mobility are all key areas for advanced societies, while they also have potential to generate sustainable value for Ferrovial. More recently, biodiversity preservation has also been recognized as a priority, supported by growing scientific and technical expertise on the subject. 

Ferrovial’s activities are closely associated with some of the main man-made sources of carbon emissions. Globally, passenger transport generates around 25% of total emissions and has been the fastest growing source of emissions over the last two decades. Meanwhile, cities and buildings generate more than 30% of global greenhouse gas emissions.

As a result, one particularly outstanding aspect of Ferrovial’s sustainability strategy is the manner in which the organization has responded to the medium- and long-term challenges and opportunities presented by climate change. On the one hand, Ferrovial has maintained and comfortably complies with ambitious emission reduction targets (21.3% against 2009 levels). As a developer, operator and administrator of transport and city infrastructure, Ferrovial is well aware of its responsibilities and the importance of its public commitment to climate change. However, Ferrovial is also conscious of the major challenges facing society over the next few decades, which will require innovative and complex solutions. Ferrovial has the capabilities, expertise and technology to implement such solutions, while also opening the door to new business opportunities.

Medium and log-term objetives (2014-2020)

Climate change: Global objectives have already been established for 2020. As a result, Ferrovial set a target for emissions reductions by 2020 of 21.3% against net turnover (tn CO2 eq. / € million), with respect to the base year 2009. A reduction target of 9.6% has been set for 2014, relative to the baseline year. This would mean maintaining Scope 1&2 emissions and energy and electricity consumption at the same level as in 2009, despite turnover being 16.7% higher.

Thus, the 2014 target, in terms comparable to turnover, was to reduce Scope 1&2 emissions in absolute terms by 77,407 tCO2eq against 2009, of which 67,344 tCO2eq and 10,063 tCO2eq would be Scope 1 and 2, respectively.

The 2014 target was achieved, with emissions cut by 228,606 tCO2eq against the baseline year.

There are also initiatives in place to promote purchasing of electricity from renewable sources, with a target this year for 100% of electricity purchased by Amey to come from renewable sources.

Eco-efficiency: Development of a proven method to calculate the company’s water footprint, achieving 100% global coverage by 2016. The water consumption reduction target for 2014 was set at 4.6% against 2013.

As for eco-efficient mobility, the company has decided to implement mobility plans at all Ferrovial head offices and subsidiaries by 2016.

Biodiversity and Natural Capital: By 2016 the aim is for 100% of Construction and Toll Road sales to be subject to a quantitative assessment of their impact on natural capital.

Enviromental management

Since 2009, Ferrovial has measured 100% of greenhouse gas emissions from its global activities. The aim is to reduce its carbon footprint, mainly through more efficient energy use. Targets have been set at a global scale for 2020, with a bottom-up approach that integrates opportunities for emission reductions based on production processes; in other words, based on the productive processes in each business area, where “pockets of opportunity” for reducing emissions are identified and assessed.

To meet this commitment, Ferrovial has developed and implemented emission reduction action plans, both general and specific to each business area:

  • Inclusion of energy efficiency criteria in purchasing and service subcontracting, purchase of electricity from certified renewable sources, use of alternative fuels, and more alternative vehicles.
  • Sustainable Mobility Plan for Ferrovial employees. Action has also been taken to improve vehicle fleets.
  • The development of technology and processes aimed at maximizing levels of emissions avoided.
  • Incorporation of energy efficiency measures in buildings used as corporate offices.

GHG emissions (Scope 1&2)

Business Area Company2014201320122009 (base)
Services Amey 128,927 130,563 123,285 147,608
Ferrovial Servicios 249,633 258,244 266,770 404,274
Toll Roads Cintra 15,045 14,287 13,633 15,684
Construction Budimex 55,749 62,394 68,853 47,665
Cadagua 27,862 48,107 48,062 63,221
Ferrovial Agromán 69,053 50,255 50,283 74,934
Webber 30,820 30,263 45,805 52,194
Corporation Ferrovial 781 638 711 896
Total tCO2eq   577,870 594,752 617,403 806,476

Changes to the perimeter scope against last year are due to the inclusion under the Amey brand of emissions from Amey, Enterprise and Amey-Cespa. Greenhouse gas emissions generated by Ferrovial activities are classified into:

  • Diffuse: emissions not associated with a specific emission point, such as biogas emissions from landfills.
  • Electricity: these indirect emissions are a result of consumption of electricity purchased from other companies that produce or control the same.
  • Stationary equipment: these are emissions from fixed equipment, such as electricity generators, boilers, furnaces, burners, turbines, heaters, incinerators, motors, torches, etc., that use fossil fuel to generate heat, electricity or vapor, or that are used to run a company process. Machinery used on site is included within this group.
  • Fugitive: arising from the consumption of coolants. These emissions are negligible compared with the others.
  • Mobile: arising from fuel combustion in vehicles and motorcycles managed by the company.

In 2014, Ferrovial’s emissions in absolute terms on a global scale were down by 28% with respect to the baseline year 2009 and 3% on the previous year.

In general, the companies continue to reduce emissions in absolute terms. The resulting reduction in emissions was due to curbing measures deployed at business units, such as: 

  • Establishing efficiency criteria for purchasing, renting or leasing vehicles or machinery.
  • Increase in alternative vehicles.
  • Use of alternative fuels.
  • Business mobility plans.
  • Energy efficiency in buildings. Incorporation of active energy efficiency measures in buildings used as corporate offices.
  • Purchasing electricity from renewable sources. This year, 16.7% of electricity used came from renewable sources. Amey stands out, with all electricity consumed being generated from renewable sources.
  • Decrease in thermal sludge drying, which requires high consumption of natural gas.

The exception is Ferrovial Agroman, which saw emissions increase due to the type of works implemented, requiring greater energy consumption. Meanwhile, Cintra emissions were up slightly due to recently incorporated toll roads becoming fully operational.

Greenhouse gas emissions over time (Scope 1&2) in relative terms. (Financial intensity)

tCO2eq/M € 2014 2013 2012 2009 (base)
66.25 73.84 80.57 107.94
Reduction 14 vs. 13 -10.28 
Reduction 14 vs. 09 -38.62 

The indicator in the table measures changes in absolute emissions against the volume of company activity, using net revenues as the best indicator of this. In 2014, Ferrovial reduced its “Financial intensity” carbon intensity indicator by 38.62% against 2009. This provides sufficient margin for compliance with the target reduction of 21.3 % established in the roadmap for emission reduction, not counting any temporary cyclical aspects that may have influenced the indicator (e.g. the serious economic crisis in Spain since the end of 2008).

The result is good; analysis of emissions and revenue show that despite revenue growing, emissions in absolute terms declined.

Biogenic COemissions

According to the IPCC (Intergovernmental Panel on Climate Change) and the “Protocol for the quantification of greenhouse gas emissions from waste management activities”, CO2 from biogas combustion that is captured, channeled and burned in flares or cogeneration should be reported as zero.

This is because such gas is generated via the decomposition of products that contain organic matter of animal or vegetable origin that was previously captured by live organisms, and is therefore part of a carbon neutral cycle.

However, the protocol recommends the quantification and reporting of “biogenic CO2".

Biogenic CO2 (tCO2eq)2014201320122009 (base)
Cadagua 53,339 50,160 16,672 1,191
Amey 6,979 6,564 6,979 7,436
Ferrovial Services 36,693 38,005 34,936 25,672
Total 97,011 94,728 58,587 34,299

GHG emissions (Scope 3)

Ferrovial calculates Scope 3 following the guidelines enshrined in the Corporate Value Chain (Scope 3) Accounting and Reporting Standard published by the Greenhouse Gas Protocol Initiative, the WRI and the WBCSD.

Below are the activities, products and services subject to Scope 3 calculations:

  • Purchased goods and services: Includes emissions related to the lifecycle of materials bought by Ferrovial that have been used in products or services offered by the company. This includes emissions derived from the purchase of paper, wood, water and other significant materials (concrete in the construction division, asphalt in Amey and asphalt aggregate in Budimex).
  • Capital goods: Includes all upstream emissions (i.e. cradle-to-gate) from the production of capital goods bought or acquired by the company in the year, according to information included in 2014 Consolidated Financial Statements.
  • Fuel and energy-related activities: This section includes the energy required for producing the fuel and electricity consumed by the company and electricity lost during transport.
  • Upstream transportation and distribution: Includes emissions from the transport and distribution of the main products acquired over the year.
  • Waste generated in operations: Emissions under this heading are linked to waste generated by the company’s activities reported in 2014.
  • Business travel: Includes emissions associated with business travel: train, plane and taxi, reported by the main travel agency with the which the group works in Spain.
  • Employee commuting: This includes emissions from journeys made by employees commuting from their homes to central offices in Spain.
  • Investments:This calculates emissions linked to investments in British airports. Data for 2014 is not available as of the report release date, so emission figures for 2013 are used.
  • Use of sold products: Ferrovial calculates emissions generated by use of land transport infrastructure managed by Cintra.
  • End-of-life treatment of sold products: This category includes emissions from the elimination of waste generated at the end of the useful lives of products sold by Ferrovial in the reporting year. Only emissions derived from products reported in the “purchased goods and services” category are taken into account.
  • Upstream leased assets: Includes emissions related to the consumption of electricity at client buildings where maintenance and cleaning services, as well as consumption management, are provided by Amey. 
Category201420132012 
Investments 629,635 629,635 805,044 
Fuel and energy related activities  7,584,244 8,842,849 9,434,307 
Capital Goods 655,689 648,426 569,407 
End of life treatment of sold products 171,155 53,617 52,703
Purchased goods and services 750,808 593,438 743,192 
Upstream transportation and distribution 451,358 461,333 461,487 
Waste generated in operations 221,377 306,389 212,976 
Employee commuting 1,379 819 792 
Business travel 11,539 7,015 6,606 
Use of sold products 732,877 669,249 641,031 
Upstream leased 2,009 1,022 1,405 
Total tCO2eq  11,222,071 12,213,793 12,928,949 

Enviromental performance

WASTE MANAGEMENT

Non-hazardous waste

Non-hazardous waste generated in 2014 amounted to 622,588 tn. This figure includes the waste sent to treatment plants, while recycled waste is included in another category.

There was a slight decrease against the previous year under the same reporting scope and including waste generated by the machinery lot under construction. The remaining volume produced in this business unit is included in the construction and demolition waste figure.


201420132012 
Amey 422,154 577,982.14 699.41
Ferrovial Services 20,650.67 6,080.65 68.83
Cintra 1,160.73 680.2 1,045,002.84
Construction  72 0 1,402.4
Cadagua  178,543.60 183,977.52 141.2 
Corporation 7.09 7.02 N.D. 
Total (t) 622,588 768,748 3,356.85

The reduction target for non-hazardous waste production is closely linked with the targeted increase in recycled materials.

This is the fraction of waste over which managerial control is held, as production itself depends on the type and number of contracts.

A 5% increase in recycled material against the 2013 figure represents a reduction of waste generation in 2014 of 4,892 tn, a target that was met comfortably.

Hazardous waste

Most hazardous waste is generated by the Company’s international subsidiaries, mainly the British company, Amey. Hazardous waste generated outside the European Union has been reported for the second year (this waste is included in the “unclassified” category according to the European Waste Catalogue (EWC)).


201420132012
Total (t) 73,245 14,557 3,542

Waste produced from construction and demolition

Management of waste from construction and demolition has always been a relevant environmental aspect for all projects, while improvement objectives usually seek to enhance management of such waste while minimizing its generation. In recent years, Ferrovial Agroman and Amey have been targeting an increase in the percentage of waste reused and recycled. 

Recovering construction waste on site has become the most effective and sustainable approach, achieving rates of construction waste recycling that were impossible under traditional waste processing methods.

The drop in volumes of construction and demolition waste managed is due to the natural development of construction projects. Demolition work takes place at the start of the projects, followed by subsequent management of the waste generated. A decrease is, therefore, normal when no new contracts have been started. The annual performance of construction and demolition waste managed is as follows: 


20142013
Total (m3) 1,182,555 10,882,869

Recycling

The volume of recycled material increased significantly against 2013. Total recycled material amounted to 540,287 tn.

An annual target for increasing waste recycling was set at 5% compared to baseline year 2013.


201420132012 
Total (t) 540,287 97,840 13,953

Water consumption

There was a slight decrease in water consumption in 2014.

During the year, the company began to differentiate water flows by supply source. Over 2015, work will be ongoing to develop a methodology that will lay the foundations for a water footprint calculation system. This will mean improving the available information and supporting the development of compensation work and incorporating social aspects.

Water consumption20142013 2012
Amey 104,617 51,600 85,261
Ferrovial Services 839,460.07 1,048,718 1,165,006
Cintra 53,339 62,092 58,667
Construction 519,056.14 531,008  950,517
Cadagua  232,030 236,877  353,001
Corporation 3,375 3,237  3,364
Total (m3) 1,751,877.91 1,933,592 2,615,816

BIODIVERSITY

Ferrovial is aware of the impact that some of its activities have on the natural environment. In recent years, the company has developed innovative methods to mitigate such effects, capitalizing on the company’s technological and scientific advances in the environmental restoration of infrastructure. Work is also ongoing to compensate damages that cannot be mitigated on site via offset mechanisms in countries that have a well-established programs and sufficient experience (e.g. the United States).

In addition, in 2013 the company committed itself to the Spanish Companies and Biodiversity Initiative (IEEB), promoted by the Spanish Ministry of Agriculture, Food and the Environment (MAGRAMA). Ferrovial was one of the first companies to endorse the agreement. The initiative aims to “integrate natural capital into business policy and management, supporting large and medium-sized companies”.

Activities in protected or ecologically valuable areas

Linear infrastructure, such as highways or railroad, and large public works have a significant impact on local biodiversity, in terms of occupying space and destroying or profoundly altering natural habitats and causing territorial fragmentation.

With the aim of mitigating as far possible the environmental impacts and risks linked to our operations, work is ongoing to introduce ecological restoration, as well as risk management and evaluation procedures designed specifically for such situations. Nonetheless, such activities are subject to demanding environmental legislation, normally via an Environmental Impact Statement.

Regarding temporary sites, under certain conditions the company will be authorized to occupy such sites provided that a series of prevention, mitigation and control measures are implemented with regards to the environmental impacts due to occupation of such sites. With these risks in mind, Ferrovial Agroman has established a specific procedure to identify, evaluate and quantitatively monitor such situations and associated risks, as well as to implement measures in order to offset environmental impacts.

In 2014, work was performed at 26 sites subject to Environmental Impact Statements. Restrictions were imposed due to the presence of protected fauna in 12 of them; 19 were located in Protected Natural Areas and 15 had high-quality watercourses nearby.

Internationally, 5 work sites in protected zones were identified. None was subject to significant impacts and specific action plans were in place, in some cases developed alongside critical stakeholders such as Natural England and Wildlife Trust, Peterborough City Council and Sheffield University. For each of these sites, specific “Environmental risk planning and monitoring measures” were prepared and overseen by the company’s central services.

Furthermore, in order to identify any effects on bodies of water as a result of water catchment created by Ferrovial, a project was launched to determine the water footprint of the company’s operations and identify any impacts in regions suffering high water stress.

As for spills, bodies of water and habitats have in some cases been affected by isolated and accidental discharges to water. These spills were chiefly sludge from building works causing turbidity, as well as leachates from landfills that exceeded their limits. Such isolated incidents have seen disciplinary proceedings opened, with apposite measures taken in all cases to rectify the incidents and mitigate their effects.

Endangered species

  • Anthus pratensis - Red Status (Birds of Conservation Concern in Ireland (BoCCI3))
  • Austropotamobius pallipes - Endangered (UICN red list)
  • Canis lupus - Endangered (Livro vermelho dos vertebrados in Portugal)
  • Caretta caretta - Endangered (UICN red list) Endangered (Livro vermelho dos vertebrados in Portugal)
  • Chersophilus duponti - Endangered (Red Book of Birds of Spain)
  • Chlidonias níger - Endangered (Red Book of Birds of Spain)
  • Coscinia romeii - Endangered (Red Book of Invertebrates of Spain)
  • Fusconaia askewi - Endangered (US Fish and Wildlife Service)
  • Lutra lutra Near threatened (UICN red list) - Protected (UK BAP priority species (JNCC))
  • Numenius arquata - Red Status (Birds of Conservation Concern in Ireland (BoCCI3))
  • Nyctalus azoreum Endangered (UICN red list) - Critical endangered (Livro vermelho dos vertebrados in Portugal)
  • Margaritifera margaritifera - Endangered (UICN red list)
  • Motacilla cinerea - Red Status (Birds of Conservation Concern in Ireland (BoCCI3))
  • Myotis daubentonii - Protected (UK BAP priority species (JNCC))
  • Oxyura leucocephala - Endangered (UICN red list) Endangered (Red Book of Birds of Spain) Endangered (National Catalog of Endangered Species (Sp))
  • Pipistrellus pygmaeus - Protected (UK BAP priority species (JNCC))
  • Pluvialis apricaria - Red Status (Birds of Conservation Concern in Ireland (BoCCI3))
  • Salmo Salar Endangered - Critical endangered (Livro vermelho dos vertebrados in Portugal)