- FERROVIAL IN 2014
- ENVIRONMENTAL MANAGEMENT AND NATURAL CAPITAL
ENVIRONMENTAL MANAGEMENT AND NATURAL CAPITAL
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 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).
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.
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.
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:
|Business Area||Company||2014||2013||2012||2009 (base)|
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:
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:
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.
|tCO2eq/M €||2014||2013||2012||2009 (base)|
|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.
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)||2014||2013||2012||2009 (base)|
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:
|Fuel and energy related activities||7,584,244||8,842,849||9,434,307|
|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|
|Use of sold products||732,877||669,249||641,031|
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.
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.
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)).
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:
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.
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.
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”.
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.