Royal BAM Group

Carbon per million dollars of revenue. The legacy industry-standard reference (CDP, MSCI). Useful for cross-sector context, but distorted by margin — high-margin firms appear artificially efficient. Read alongside the operational and asset intensities for the full picture.

OpEx (operating expenditure) is the running cost of the business — staff, services, energy, materials. This shows how carbon-intensive operations are per million dollars of spend. Removes the margin distortion that revenue-based ratios introduce.

EVIC (Enterprise Value Including Cash) is the firm's total capital footprint — equity + debt + cash + minority interest. The EU's standard intensity measure (SFDR PAI 3) — answers: how much carbon does each million of capital deployed in this business produce?

PP&E (Property, Plant & Equipment) plus leased real-estate assets is the firm's physical infrastructure on the balance sheet. This shows the carbon intensity of that physical footprint — uses Scope 1+2+3 for consistency with the other headline intensities. Surfaces stranded-asset risk for asset-heavy firms.

Carbon per million dollars of physical infrastructure — PP&E plus leased real-estate, including upstream and downstream leased emissions (Scope 3 categories 8 + 13). The most complete view of physical-asset carbon intensity, relevant for REITs and infrastructure-heavy firms.

BAM procures renewable electricity mainly through retail supply contracts bundled with Energy Attribute Certificates (EACs) rather than PPAs - e.g. 100% Dutch wind power from Eneco in the Netherlands and 100% wind/solar from Energia in Ireland. Overall green electricity share was 64% in 2024 (down from 69% in 2023) due to rapid growth in EV fleet charging where renewable sourcing cannot yet be guaranteed for public/home charging. BAM plans to purchase unbundled EACs to cover this gap and is targeting 100% renewable electricity use by 2030.

BAM explicitly excludes any carbon offsetting from its pathway to meet the 2026 and 2030 Scope 1&2 targets, relying solely on real operational reductions (electrification, biofuels). BAM is also not currently pursuing biodiversity offsets, preferring direct mitigation and enhancement measures via its Biodiversity+ framework. No durable removals (DAC, BECCS, biochar) or nature-based credits are used or disclosed as part of BAM's inventory.

• Low-carbon purchased materials: concrete, steel and timber

  BAM targets a 50% reduction in non-biobased virgin material use by 2030 (vs 2019) via its GROENR BETON low-carbon concrete (15-20% lower CO2), increased recycled steel use (67.3% recycled content in 2024), and its Flow biobased/timber industrialised housing concept (99.2% certified sustainable timber in 2024), addressing Category 1 purchased goods which is 63.6% of BAM's total Scope 1,2&3 footprint.

• Construction site fuel switching: electrification and HVO biofuel

  Construction site fuel use is BAM's largest Scope 1&2 source. BAM reduced site emissions from 36kt to 22kt CO2 in 2024 via electrification of (heavy) equipment and replacing diesel with certified sustainable HVO, which now covers 54% of site fuel use (up from 27% in 2023), saving ~24kt CO2.

• Company vehicle fleet electrification

  BAM is electrifying its company car and van fleet; fully electric lease vehicles reached 66% of the fleet in 2024 (up from 40% in 2023), with vehicle-related electricity consumption rising 85% to 14.1m kWh. Vans face a longer transition due to limited EV availability; alternative fuels are used in the interim.

• Construction site diesel-to-HVO fuel switching

  Fuel use on construction sites is BAM's largest CO2 source. BAM replaced conventional diesel with hydrotreated vegetable oil (HVO), increasing usage to almost 5 million litres in 2023 from over 3 million in 2022, covering 27% of construction site fuel use and delivering an estimated 13 kilotonnes of CO2 reduction. HVO use on BAM's own projects continues in 2024, with an ambition to embed HVO usage contractually in new joint-venture projects.

• Electrification of construction equipment

  BAM continues focusing on electrification of equipment to reduce dependency on fossil fuels on construction sites, including the introduction of the first fully electric drilling rig in the Netherlands (saving up to 500 litres of diesel per day) and acquisition of two hydrogen combustion engine generators as diesel replacements. BAM aims to replace small equipment needing replacement with electric alternatives.

• Electrification of company vehicle fleet

  Emissions from BAM's vehicle fleet account for 40% of total scope 1 and 2 CO2 emissions and decreased 11% in 2023. The number of fully electric lease vehicles more than doubled to 2,295 (47% of the lease fleet); BAM's lease policy now mandates that all newly ordered cars are electric in both divisions, though full fleet electrification and van electrification will take several more years due to lease terms and limited EV availability for vans.

• Company vehicle fleet electrification

  BAM is transitioning its car and light-vehicle fleet to fully electric vehicles; the number of fully electric vehicles increased to 992 in 2022 (19% of the total lease fleet), and since January 2022 all newly ordered cars in the Netherlands lease arrangement are electric.

• Reducing embodied carbon in construction materials

  BAM is reducing the use of virgin, carbon-intensive materials such as cement, steel, asphalt and concrete, for example using ultra-low carbon concrete (Dawlish sea wall) and a low-cement bridge design achieving a 25 per cent CO2 reduction. The Group targets a 50 per cent reduction in non-biobased virgin material use by 2030 versus 2019 and is developing material passports and circularity assessments.

• Fuel switching and equipment electrification on construction sites

  BAM is reducing diesel use on construction sites by establishing early-stage grid connections, electrifying plant and equipment, and substituting diesel with sustainably produced hydrotreated vegetable oil (HVO). HVO use more than doubled in 2022 to over three million litres, saving circa eight kilotonnes of CO2; BAM introduced its first electric asphalt spreader, an electric 'krol' crane, an electric foundation drill rig and electric mobile excavators.

• Waste reduction and circular materials use

  BAM targets 100 per cent recycling/reuse of construction and office waste by 2025 (77 per cent achieved in 2021) and is scaling use of secondary materials, including a pilot asphalt mix with 60 per cent recycled PA-Stone content and steel with 68 per cent recycled content.

• Vehicle fleet electrification

  BAM's vehicle fleet accounts for around 35 per cent of the Group's total CO2 emissions. BAM increased fully electric vehicles in its lease fleet from 269 (Dec 2020) to 354 (Dec 2021), a 7 per cent share of the total lease fleet, and continues optimising travel distances and deploying more energy-efficient vehicles.

• Construction site decarbonisation via biofuels and electrified equipment

  BAM reduces diesel use on project sites by establishing early-stage grid connections, electrifying equipment, and switching to alternative fuels. More than one million litres of Hydrotreated Vegetable Oil (HVO) were used in 2021 versus over 17 million litres of diesel, and BAM Infra Nederland introduced a hybrid CPT truck, hybrid asphalt spreader, and an electric road roller.

• Digitalisation of business operations to reduce energy use

  BAM's CO2 reduction strategy includes reducing energy consumption by digitalising business operations and improving overall operational efficiency, alongside its digital construction agenda.

• Construction site energy efficiency and diesel/generator reduction

  Construction sites are BAM's largest source of carbon emissions. Key reduction measures include improving energy efficiency at project sites and asphalt plants, reducing reliance on diesel and gasoil, and establishing early-stage grid connections on projects to reduce use of diesel generators.

• Vehicle fleet electrification

  BAM's vehicle fleet accounts for approximately 30-31 per cent of the Group's direct CO2 emissions. In line with its science-based target, BAM aims to increase the share of electric vehicles in its lease fleet; the number of fully electric vehicles almost doubled from 143 (December 2019) to 269 (December 2020), representing about 5 per cent of the total lease fleet.

• Low-energy asphalt (LEAB) production

  BAM produces low-energy asphalt concrete (LEAB) at its Dutch asphalt plants, reducing CO2 emissions and environmental cost versus conventional asphalt (certified by CROW in 2020). In 2020, BAM applied 56,706 tonnes of LEAB (5% of total Dutch asphalt production, up from 32,500 tonnes/3% in 2019), with over 680,000 tonnes applied cumulatively; the method is being extended to the UK following a successful trial with Highways England.

• Low-energy building design to reduce use-of-sold-products emissions

  To address Category 11 (use of sold products, 25% of total footprint), BAM constructs low- and net-zero-energy assets (A+++/A++++ labels, passive house standards) such as the Southam College Pathfinder project, reducing lifetime operational energy of delivered buildings even though actual energy use is largely outside BAM's direct control once occupied by clients/tenants.

• Dependency on grid and materials-industry decarbonisation

  BAM's Scope 3 footprint is structurally dependent on two external drivers outside its control: decarbonisation of the electricity grids in its home markets (reducing downstream energy emissions of delivered assets) and decarbonisation of the construction materials industry (reducing upstream embodied carbon). BAM monitors these trends and collaborates with supply chain partners and grid operators to accelerate them.

• Lower-carbon purchased materials (concrete, steel, asphalt)

  BAM launched 'GROENR BETON', a more sustainable concrete offering that reduces CO2 emissions by 15-20% versus traditional mixtures while maintaining comparable properties. BAM also improved the completeness and accuracy of its spend-based scope 3 measurement for purchased goods and services (its largest scope 3 category at 1,416 kt CO2e), aiming to progressively replace spend-based data with activity data.

• Energy-efficient buildings (use of sold products)

  BAM's use-of-sold-products category (924 kt CO2e, 35% of scope 1-3) is driven by the energy performance of delivered buildings. BAM improved insight into the energy use of delivered assets in 2023 using energy labels and design specifics, extending the assessment to non-residential and civil projects previously excluded, and continues delivering energy-efficient and near-zero-energy new homes and renovation projects to reduce downstream emissions.

• Certified sustainable timber sourcing

  BAM has committed to FSC Netherlands to exclusively use certified sustainable timber, achieving 99 per cent certified sustainable timber use across its Netherlands and UK&I divisions in 2022 (89 per cent organisational coverage), supporting forest conservation and reducing embodied carbon in the supply chain.

• Supply chain and client collaboration to cut value-chain (scope 3) emissions

  Because scope 3 emissions far outweigh BAM's scope 1 and 2 footprint, BAM is collaborating with clients and supply-chain partners to reduce carbon in the value chain, for example through 3D-printed concrete components that cut concrete volumes by 50 per cent (Sighthill Bridge) and zero-energy 'NOM' housing (over 2,000 dwellings delivered since 2014). BAM targets a 50 per cent absolute reduction in scope 3 emissions by 2030 versus 2019.

• Client-driven sustainable/green building certification demand

  A growing share of BAM's business depends on client specification of sustainable buildings; in 2021, 25 per cent of revenue (approx. €1.8 billion) came from projects registered with third-party green-building rating schemes such as LEED, BREEAM and Passivhaus, up from €1.3 billion in 2020.

• Supply chain collaboration on purchased goods and use of sold products

  BAM identifies 'purchased goods and services' and 'use of sold products' as the largest contributors to its Scope 3 footprint and engages suppliers to explore reduction measures in these categories; full Scope 3 performance against its SBTi target is disclosed via BAM's annual CDP submission.

• Supply chain / value-chain (Scope 3) emissions collaboration

  BAM discloses Scope 3 value-chain emissions annually via its CDP submission, noting that 'purchased goods and services' and 'use of sold products' contribute most to its Scope 3 footprint. The Group engages with suppliers to explore reduction measures focused on these categories and requires suppliers/subcontractors to comply with general purchasing conditions covering safety, human rights and environmental commitments.