Arcadis

Arcadis sets out the governance structure and processes for sustainability matters, focusing primarily on the Executive Board and the Supervisory Board, and notes that the composition of these bodies is disclosed elsewhere in the annual report. Four roles are defined for CSRD governance. The Supervisory Board Sustainability Committee assists and advises the Supervisory Board and prepares plenary discussion and decision making on sustainability items. The Executive Leadership Team, which includes Executive Board members, is responsible for final review and approval of progress and direction, with further implementation and performance monitoring assigned to Global Business Areas and respective departments. The Non-Financial Reporting Steering Committee delivers strategic guidance and approves methodologies, and consists of the Chief Financial Officer, Chief Growth Officer, Global General Counsel, Global Accounting Officer, one of the two Global Sustainability Directors, the ESG Relations and Public Affairs Director and the Global Managing Director of Sustainability Advisory. An NFR team coordinates the work streams. Global Sustainability Directors report to the ELT member accountable for sustainability. All ELT and Supervisory Board members are expected to have sufficient sustainability knowledge, and ESG knowledge is weighed when assessing candidates.

Arcadis describes how sustainability information reaches its governance bodies. The Executive Leadership Team, including Executive Board members, receives consolidated inputs on a quarterly basis to evaluate and gives final approval on the design effectiveness of solutions. The Non-Financial Reporting Steering Committee discusses the progress overview monthly, delivers strategic guidance, approves methodologies and creates alignment with Arcadis goals, and it also discussed the identification of relevant metrics and guided target setting. The NFR team creates and shares monthly reports on implementation of all CSRD requirements and aligns with contributing and oversight departments. The Supervisory Board Sustainability Committee prepares plenary discussion and decision making for the Supervisory Board on items within the sustainability remit. Throughout the year the Executive Board and Supervisory Board are regularly updated with insights from the client experience program, employee engagement initiatives and investor feedback. Outcomes of the double materiality analysis were reviewed and approved by the Executive Leadership Team and Executive Board and were shared with the Supervisory Board. Deviations from plans to address material IROs are reported through the monthly Steering Committee sessions.

Arcadis reports that goals related to ESG aspects are included in the long-term incentive performance targets for the Executive Board and the Executive Leadership Team, and that these goals are also cascaded down to senior leadership levels. A detailed breakdown of the targets, including 2024 performance, is incorporated by reference to Arcadis remuneration reporting, which covers short-term variable remuneration and long-term variable remuneration in the form of performance shares. Arcadis states that the remuneration of Supervisory Board members is not dependent on results. Sustainability-related performance in incentive schemes is one of the items Arcadis lists as incorporated by reference rather than repeated within the sustainability statement itself. No further quantified incentive metrics are disclosed in the general disclosures.

Arcadis reports that in 2024 it established the design of its due diligence processes by integrating human rights and environmental due diligence into both its overarching Sustainability Policy and its Third-Party Due Diligence Policy. Arcadis frames this as part of a continuous improvement process and states that its near-term objective is to develop procedures that further operationalize these policies. A table with all required references to due diligence accompanies the sustainability statement. Arcadis also notes that it has been a member of the United Nations Global Compact since 2009 and supports the Ten Principles covering human rights, labor standards, environmental stewardship and anti-corruption, and that its Communication of Progress is available on its website. The disclosure is brief, and Arcadis presents its due diligence as reaching design stage rather than being fully operational.

Arcadis reports that it has implemented a system of risk management and internal control to mitigate and manage risks around sustainability reporting. Two main risks are identified: the risk of material misstatement due to omissions, errors or incomplete data in sustainability reporting, and the risk of non-compliance with regulatory requirements and standards. The system is aligned to the principles of the Committee of Sponsoring Organizations Integrated Framework. Arcadis values, strategy, the Arcadis General Business Principles and sustainability policies form the control environment, with oversight by the Supervisory Board Sustainability Committee, the Executive Board, the Executive Leadership Team and the Non-Financial Reporting Steering Committee. Risk assessment draws on the double materiality and IRO assessments, with sustainability embedded in the risk categories of the ARC framework. Most reporting data is prepared by Global Business Areas and by Finance, Workplace, Health and Safety, Procurement, Global Sustainability and People teams, consolidated centrally by the NFR function and reviewed by Finance. Risk Management provides second line assurance through the annual Risk Assurance Program, and in 2024 Internal Audit also provided assurance over CSRD compliance.

Arcadis describes its mission of improving quality of life and its 2024 to 2026 strategy, Accelerating a Planet Positive Future, which integrates sustainability into its own operations and into client projects and is built on the values People First, Client success, Integrity, Collaboration and Sustainability. Arcadis commits to net zero across global operations by 2035 and to supporting Paris Agreement ambitions, and states it will sharpen pursuit and business selection criteria. In 2024 it became a Skills Powered Organization, aiming to expand towards over 2,500 skilled energy transition professionals. Five sustainability lenses, Energy and Carbon, Circularity, Nature and Biodiversity, Water Stewardship and Societal Impact, are mapped to UN Sustainable Development Goals and to ESRS topical chapters. The statement covers Arcadis N.V. and its controlled entities within the consolidation scope. Upstream actors provide products and services used in Arcadis delivery, while downstream actors are clients and project outcomes. Arcadis applies one global business model with global standards, policies and targets, and omits certain information on intellectual property, know-how and innovation results.

Arcadis reports that, in line with the Dutch Corporate Governance Code 2022, it has published an Arcadis Stakeholder Engagement Policy on Sustainable Topics. Under that policy Arcadis engages with a broad range of stakeholders, including employees, shareholders and potential investors, clients, suppliers and subcontractors, business partners and non-governmental organizations, and where necessary with people impacted by the projects Arcadis undertakes for clients. The stated aims are to build trust, foster collaboration and integrate stakeholder perspectives into decision making and strategy. Throughout the year the Executive Board and Supervisory Board are regularly updated with insights from the client experience program, employee engagement initiatives and investor feedback. As part of the double materiality analysis Arcadis consulted representatives from these key stakeholder groups to assess the materiality of sustainability topics, and the outcomes were reviewed and approved by the Executive Leadership Team and Executive Board and shared with the Supervisory Board. A table of key stakeholders, engagement methods and considerations is provided. Employee feedback on ESG matters is gathered through Communities of Practice, webcasts, training sessions, manager dialogues and Your Voice surveys.

Arcadis reports that, as part of its double materiality analysis, it assessed the impacts, risks and opportunities related to ESG issues and how they align with its strategy and business model, engaging internal and external stakeholders to assess both impact and financial materiality. The outcome is an outline of material potential and actual IROs across own operations and the value chain. Arcadis states that the most material impacts are found in its value chain, specifically in its projects and with its clients, and that these impacts are more positive than negative. Arcadis says the 2024 to 2026 strategy was designed with sustainability at its core and that its underlying financial framework is resilient to the identified sustainability related financial risks and opportunities. It acknowledges that it is still progressively building the ability to evaluate current and expected financial effects, and that it has not yet established a comprehensive view and process to monitor material risks and opportunities with financial effects. Material IROs were included in the 2025 planning process, roadmaps are being defined for own operations, and value chain impacts follow a phased approach.

Arcadis describes a two-phase double materiality analysis, with phase one identifying the materiality of topics and phase two identifying material IROs against defined thresholds. Phase one used background research drawing on ESG rating agency insights, peer sustainability reports, earlier impact materiality assessments and the sustainability matters listed in ESRS, followed by internal and external stakeholder engagement sessions. Internal participants came from Growth, People, Compliance, Sustainable Procurement, Global Sustainability, Risk and the client-facing Sustainability Advisory group, with a random selection of employees; external input came from clients, NGOs, experts, investors and suppliers. In phase two, workshops with internal subject matter experts evaluated potential and actual IROs on severity, covering scale, scope and irreversibility, and on likelihood, segmented by upstream, own operations and downstream. Financial materiality scaling was set with senior financial management and considered dependencies on human and natural resources. Items were scored on five-point scales from 1 to 5, with only very high scores classified as material. The shortlist was validated by the NFR Steering Committee, internal audit and expert management teams, and endorsed by the Executive Leadership Team. Annual review starts in 2025, with a more extensive review every three years.

Arcadis reports the results of its double materiality analysis and identifies which ESRS topical standards and sub-topics its statement covers. Material sub-topics are climate adaptation, climate mitigation and energy under E1; pollution of soil under E2; water withdrawal, water consumption and discharges in water under E3; climate change, land use change, pollution, biodiversity loss, land degradation and desertification under E4; waste under E5; health and safety, work life balance and training and skills development under S1 and S2; and management of relationships with suppliers and payment practices under G1. A table presents the materiality of each material sub-topic and sub-sub-topic together with the number of material IROs, split between own operations and the value chain. Arcadis states the statement was prepared in accordance with ESRS as adopted by the European Commission and includes EU Taxonomy disclosures under Article 8 of Regulation 2020/852 as a separately identifiable chapter. Arcadis applies phase-in provisions where available, including a three-year phase-in for value chain reporting, and lists information incorporated by reference from other chapters of its annual report.

Arcadis reports a Climate Transition Plan setting out its route to net zero greenhouse gas emissions across the value chain by 2035. The plan was reviewed and approved by the Executive Leadership Team member responsible for Sustainability and by the Chief Executive Officer, and Arcadis states no further approval by administrative, management or supervisory bodies is required under its policy approval process. Arcadis says it published the plan in response to market demand, stakeholder interest and regulation including the CSRD, and developed it using a maturity assessment based on CDP technical guidance and the Assessing low-Carbon Transition guidance. It notes the EFRAG transition plan guidance published in November 2024 will be considered in future iterations. Decarbonization levers described include renewable energy procurement, fleet electrification, purposeful business travel policies and employee commuting initiatives. Arcadis reports a Capital Markets Day target of a 70% reduction in scope 1 and 2 emissions by 2026 against 2019, alongside its SBTi approved 71% reduction by 2029. Scenario analysis used the NGFS Net Zero 2050 and Current Policies scenarios.

Arcadis reports a dedicated Climate Change Mitigation and Adaptation Policy that sets out its approach to climate change and establishes design effectiveness across the value chain. Its double materiality assessment found all three ESRS E1 sub-topics material, namely climate change adaptation, climate change mitigation and energy, and all three are addressed in the policy. Stated policy goals are to identify how Arcadis affects climate change through material actual and potential impacts, to describe current and future mitigation efforts in line with the Paris Agreement and a 1.5 degrees Celsius pathway, to outline plans and capacity to adapt the strategy and business model, to describe other actions taken and their results, to explain the nature and extent of material risks and opportunities, and to give stakeholders insight into short, medium and long term financial effects. The policy covers office-based activities globally, including leased space in multi-tenant buildings, plus project-related and supplier activities upstream and downstream. The Chief Growth Officer is accountable for implementation.

Arcadis describes emission reduction levers for each scope. For scope 1 and 2 these are transitioning the fleet to electric vehicles, expected to cut roughly 6,400 tCO2e or about 71% of combined scope 1 and market-based scope 2 emissions; shifting from natural gas to electricity or biogas for heating, estimated at roughly 2,200 tCO2e or about 25%; and continued purchase of Renewable Energy Certificates covering 100% of office and electric fleet electricity, which Arcadis says already delivers about 9,000 tCO2e of reduction in its 2024 market-based scope 2 emissions and keeps market-based scope 1 and 2 emissions 97% below the location-based figure. Leasing decisions consider energy sources and charging infrastructure, with preference for third party rated buildings such as LEED or BREEAM. For scope 3, Arcadis has deployed travel carbon budgets, waste reduction and recycling measures, a third-party supply chain platform for supplier emissions data, and a virtual first travel policy introduced in May 2021. Arcadis states these activities sit within business-as-usual operations and do not require significant CapEx or OpEx.

Arcadis reports near-term and long-term targets developed under the Science Based Targets initiative Net-Zero Framework and validated by SBTi in August 2024. The near-term targets are to reduce absolute scope 1 and 2 GHG emissions by 71% by 2029 from a 2019 base year, and to reduce absolute scope 3 GHG emissions by 45% over the same period. The long-term targets are a 90% reduction in absolute scope 1 and 2 emissions by 2035 from the 2019 base year and a 90% reduction in absolute scope 3 emissions by 2035. Absolute targets cover combined scope 1 and market-based scope 2 emissions, with scope 3 addressed separately. Arcadis kept 2019 as the baseline year to avoid distortion from pandemic travel restrictions, and reports extrapolated 2030 values of a 74% reduction for scope 1 and 2 and a 52% reduction for scope 3, both against 2019. Target values in the table are 7,600 tCO2eq for scope 1 and 2 in 2029 and 2,600 tCO2eq in 2035. Between 2035 and 2050 the goal is to maintain the 2035 emissions level.

Arcadis reports total energy consumption related to own operations of 69,400 MWh in 2024. Of this, 40,919 MWh came from fossil sources, 28,481 MWh from renewable sources and zero from nuclear sources. Within renewables, fuel consumption from renewable sources including bioethanol and biogas was 889 MWh, purchased or acquired electricity, heat, steam and cooling from renewable sources was 27,203 MWh, and self-generated non-fuel renewable energy from solar was 389 MWh. Renewable sources made up 41% of total energy consumption and fossil sources 59%. Non-renewable energy production was zero and renewable energy production was 389 MWh. The share of energy from contractual instruments such as renewable electricity certificates and guarantees of origin was 83% of total energy consumption. Arcadis states it does not have operations in high climate impact sectors. The energy mix was built from primary data collected from all offices covering electricity consumption and production, natural gas and district heating, together with fuel consumption of fleet vehicles, recorded in its non-financial reporting platform.

For 2024 Arcadis reports gross scope 1 emissions of 8,690 tCO2eq, down 14% on 2023 and against 13,290 tCO2eq in the 2019 base year, with 0% from regulated emission trading schemes and biogenic scope 1 CO2 from biofuel combustion of 1.19 tCO2eq. Gross location-based scope 2 emissions were 9,370 tCO2eq, 3% lower than 2023, and gross market-based scope 2 emissions were 280 tCO2eq, 61% lower. Combined scope 1 and market-based scope 2 emissions were 8,970 tCO2eq, 17% below 2023 and 66% below 2019. Total gross scope 3 emissions were 275,800 tCO2eq, 8% above 2023 and around 6% below the 2019 figure of 292,000 tCO2eq. Category detail: purchased goods and services 223,400; capital goods 3,900; fuel and energy-related activities 3,500; upstream transportation and distribution 1,100; waste generated in operations 200; business travel 32,300; employee commuting 11,400. Total GHG emissions were 293,860 tCO2eq location-based and 284,770 tCO2eq market-based. Working from home emissions of 15,900 tCO2eq are reported separately. Categories 8 to 15 are treated as not relevant or not material.

Arcadis reports that beyond its value chain it purchases carbon offsetting credits covering scope 1, scope 2 and selected scope 3 categories 2 to 7. It states these credits are not used to claim lower emissions, so the reductions are not subtracted from the published gross GHG figures. The majority of credits purchased and retired in 2024 came from the Nii Kaniti project in Peru, a REDD forest conservation project across seven Shipibo Conibo and Cacataibo communities covering 127,004 hectares of forest, verified under the Verra VCS and CCB standards by AENOR. Credits cancelled during 2024 for 2023 emissions totalled 75,077 tCO2e, and approximately 62,000 tCO2e are planned for cancellation within 2025 for 2024 emissions, under an existing contract with Fair Climate Fund. For both years 100% of credits came from reduction projects and 100% were under Verra standards, with 0% issued in the EU and 0% qualifying as a corresponding adjustment under Article 6 of the Paris Agreement. Arcadis also reports investing since early 2023 in an Indian reforestation project with Fair Climate Fund and Prasari that will generate removal credits verified under PLAN VIVO, to neutralize residual emissions after an approximately 90 to 95% reduction.

Arcadis reports a specific Pollution Policy that sets out its commitment and approach to minimizing pollution to soil and potential environmental harms resulting from its activities. The policy commits Arcadis to identify how it affects soil pollution through actual and potential positive and negative impacts; to report annually on actions taken and their results; to describe its plans and capacity to adapt its strategy and business model in line with preventing, controlling and eliminating pollution, including support for the EU action plan towards zero pollution for air, water and soil; to outline the nature, type, extent and management of material risks, dependencies and opportunities; and to provide insight into short, medium and long term financial effects. The scope covers office based activities globally, including space leased in multi-tenant buildings, client projects, and supplier activities upstream and downstream. Roles and responsibilities are set out and backed by an implementation plan for embedding the policy globally. The Chief Growth Officer is the Executive Leadership Team member accountable for implementation. Effectiveness is tracked through growth in soil remediation activities, measured via revenue recognition, although revenue targets are not published at that level of granularity because they are competitively sensitive.

Arcadis states that the expected outcome of the steps in its Pollution Policy is better visibility of its soil pollution impacts and potential risks, allowing it to develop mitigation measures. In its own operations Arcadis does not anticipate taking further action, as there is no significant risk of soil pollution occurring at its office locations; effectiveness is tracked semi-annually through the Environmental Management System, which indicated that further mitigation measures were not necessary. Upstream, Arcadis assesses its main suppliers on environment related issues using a digital tool that continuously scans for sustainability and human rights risks and generates alerts, covering environmental issues, chemical leakage, pollution, persistent organic pollutant pollution and toxic release. Where material, Arcadis follows up with the supplier, though these cases are covered by non-disclosure agreements. The scans currently apply to a selection of suppliers and will be expanded to most suppliers by the end of the phase-in period. Downstream, Arcadis draws on more than 35 years of experience in remediation of soil and groundwater and continually innovates, for example Thermal In Situ Remediation, a closed loop heating system using renewable energy that raises subsurface temperatures to degrade and remove contaminants.

Arcadis reports that it has not set a quantified target related to pollution. It states that it seeks to develop a methodology to measure the magnitude of its contribution to the reduction of soil pollution in cubic meters of soil during the value chain phase-in period, and that in the years to come it hopes to be able to quantify its actual contribution. Associated metrics for this contribution are in development, as is a measurement system. Once the measuring system is in place, and once Arcadis has assessed whether the captured metrics are accurate and informative, it may consider setting a voluntary target for its contribution to the reduction of soil pollution. Arcadis also states that its ambition is to grow its soil remediation activities but that revenue targets are not published at that level of granularity because this can be competitively sensitive, and that it intends ultimately to measure progress in cubic meters of soil cleaned. Material risks and opportunities were not identified and are therefore not tracked, and no ambition or measurement for these is expected to be developed.

Pollution of soil is the only sub-topic Arcadis considers material under this standard, and Arcadis discloses no quantitative pollutant figures. It states that through its mostly office based design and consultancy activities it does not contribute to soil pollution in its own operations, and that in its own operations it does not emit to soil any of the 91 substances listed in the European Pollutant Release and Transfer Register. Pollutants emitted to air and to water are considered immaterial for Arcadis. Instead Arcadis describes a positive contribution through the soil remediation work it performs for clients. Pollutants remediated on behalf of clients may include some of the 91 substances in that register, as well as hydrocarbons, substances subject to the European Union REACH regulation, per- and polyfluoroalkyl substances and other pollutants. Arcadis uses analytical testing of soil to detect pollutants before treatment, and after treatment where appropriate, that is where contaminated material was not removed and transported to a disposal facility. Arcadis states these projects restore contaminated sites, improve environmental quality, reduce health risks to humans and wildlife and increase property values.

Arcadis reports a specific Water Reduction Policy, introduced in 2024, which outlines its approach to reducing water consumption within its operations and encourages sustainable water practices among clients. The stated goals are to identify how Arcadis affects water and marine resources through actual and potential positive and negative impacts; to report annually to stakeholders on actions taken and their results; to assess whether, how and to what extent Arcadis contributes to the European Green Deal ambitions for fresh air, clean water, healthy soil and biodiversity and to the sustainability of the blue economy and fisheries, taking account of the EU Water Framework Directive, the Marine Strategy Framework Directive, the Maritime Spatial Planning Directive, the Sustainable Development Goals, in particular SDG 6 and SDG 14, and global environmental limits; to describe plans to adapt strategy and business model to promote sustainable water use; and to outline material risks and opportunities and their short, medium and long term financial effects. The scope covers global office based activities, including space leased in multi-tenant buildings, client project activities and upstream and downstream supplier activities. The policy also requires periodic review and updating. The Chief Growth Officer is accountable for implementation.

Arcadis describes actions that are global in nature, with employees as key internal stakeholders and clients, suppliers and people affected by client projects as key external stakeholders. In its own operations Arcadis evaluates and reports water use across its office network annually and takes action to prioritize water efficiency when selecting new leased office facilities where feasible, to minimize water use by raising water use awareness and installing efficient fixtures and technologies, to regularly monitor and review water consumption data, and to report annually on water consumption and savings. Effectiveness is tracked through the Environmental Management System standard, whose processes include action plans listing the actions, resources, responsible party, timeline, progress measurement and reporting, with indicators of water used and saved annually in cubic meters. Arcadis states the expected outcome is a reduction in water use, but that the lack of base year information makes a progress assessment impossible in this reporting year. For the value chain, Arcadis will conduct water risk assessments across its suite of solutions during the phase-in period, work with clients and suppliers on water saving, treatment and reuse measures, and monitor and report value chain water data where possible, supported by its Project Water initiative.

Arcadis reports that it has not yet set targets related to water and marine resources. It states that in the years to come it intends to monitor the effectiveness of the actions described in its Water Reduction Policy, which was introduced in 2024, and that the Environmental Management System is the primary process it will use to track the quantitative effectiveness of its policies and actions. Because it has not yet begun tracking the effectiveness of those actions, Arcadis has not yet specified the defined level of ambition to be achieved. Arcadis adds that ambitions will be formulated if base year information is assessed to be of sufficient granularity and quality, that the indicators will be the amount of water used and saved on an annual basis measured in cubic meters, and that a similar step by step action plan will be developed for value chain related activities during the phase-in period.

Arcadis reports estimated total water consumption at its offices of 610,000 cubic meters in 2024. Because of data collection complexities a mixture of data sources was used. For 21 percent of offices the data are actual consumption recorded monthly. For 8 percent the data are estimated monthly from whole building consumption scaled to the Arcadis floor area share. For 43 percent the data are estimates that will be updated when final utility invoices become available. For 28 percent the data are estimated from average consumption in public sources, scaled by office employee FTEs excluding contingent workers and by Arcadis specific average office attendance per country, which is derived from an annual global commuting and working from home survey answered by 23 percent of employees. Arcadis is working to increase the share of actual data for 2025. It reports that 17 cubic meters of water are stored or recycled and reused at its offices, with no change in storage volume in 2024, that no water is consumed in areas at water risk including areas of high water stress, and that water intensity is 157 cubic meters per million EUR net revenue.

Arcadis reports that within E4 the sub-topic direct impact drivers of biodiversity loss is material, covering climate change, land-use change, fresh water-use change and sea-use change, pollution, and biodiversity loss. Arcadis states it does not directly depend on biodiversity and ecosystem developments in its consulting and engineering activities, so these pose no risks to its resilience, while it anticipates opportunities from supporting clients on biodiversity challenges in projects. Impacts of own operations were assessed in 2022 using the Science Based Targets Network sector materiality tool, which identified land use from the building portfolio, greenhouse gas emissions and water use as important potential drivers of biodiversity loss. Greenhouse gas emissions are addressed through the Arcadis Climate Transition Plan. Arcadis applies the mitigation hierarchy of avoid, reduce and restore, offset in its internal guidance on biodiversity footprint calculation, on site-based target setting, and on managing land use impacts for existing and new buildings in its portfolio.

Arcadis has a specific Biodiversity and Ecosystems Policy setting out its approach to preserving and enhancing biodiversity and minimizing environmental impact across its operations, projects and upstream and downstream value chain. The stated goals are to identify positive and negative material impacts, to report annually through the Sustainability Statement on actions taken and their results, to describe plans and capacity to adapt the strategy and business model in line with internationally accepted frameworks, to outline how material risks, dependencies and opportunities are managed, and to provide insight into financial effects over the short, medium and long term. Referenced frameworks include planetary boundaries for biosphere integrity and land system change, the Kunming-Montreal Global Biodiversity Framework, the EU Biodiversity Strategy for 2030, the EU Birds and Habitats Directives and the Marine Strategy Framework Directive. Scope covers office-based activities globally, including leased space in multi-tenant buildings, plus client projects and suppliers. Arcadis states it has no specific dependencies on biodiversity in its own operations and has not adopted sustainable land or agriculture practices or policies. The Chief Growth Officer is accountable for implementation.

Arcadis calculates static and dynamic biodiversity footprints for its own operations, meaning its leased office portfolio, annually using in-house subject matter experts. Arcadis states this allows it to determine the extent to which it contributes to the drivers of biodiversity and ecosystem loss and to reduce those impacts. In 2024 the focus was on improving the underlying data quality for the footprint calculations in collaboration with the Arcadis Workplace function. In 2025 Arcadis will begin developing a more detailed understanding of biodiversity at office locations with more than 20% green space, to determine what location-specific improvement actions are feasible and could contribute to biodiversity net gain. For the value chain, Arcadis will conduct biodiversity and ecosystem risk assessments across its project portfolio, prioritize which projects receive assessments by qualified professionals, and seek to implement measures preventing pollution, habitat destruction and degradation while assisting clients in restoring and rehabilitating affected areas in consultation with relevant stakeholders and experts. Internal guidance for credible restoration has also been developed.

Arcadis reports three biodiversity targets for its own operations, aligned with the Global Goal for Nature and the Kunming-Montreal Global Biodiversity Framework, whose objective is to halt and reverse nature loss by 2030. The targets are biodiversity no net loss for all sites by 2030 on a dynamic impact basis, 10% biodiversity net gain by 2030 for sites with more than 20% green space on site, also on a dynamic basis, and a commitment that by 2050 Arcadis compensates for the biodiversity impact related to the cumulative land use of its buildings, which is the static footprint. Targets are compared to a 2022 baseline of 65.0 MSA.ha and encompass the full mitigation hierarchy of avoid, minimize, restore and offset, with priority given to avoidance, minimization and restoration over offsetting. The key assumption in setting the targets was that Arcadis could influence the biodiversity of its office locations even though it leases the spaces. Internal stakeholders, including employees and senior leadership, were consulted during development.

Arcadis measures biodiversity impact using a Mean Species Abundance based footprint expressed in MSA.ha. The 2024 dynamic biodiversity footprint, calculated for sites in both the 2024 and 2023 building portfolios and based on data for 318 sites, totals 30.10 MSA.ha. Compared with the 2023 static footprint of 44.4 MSA.ha this is a difference of 14.34 MSA.ha, a 32% reduction, which Arcadis presents as a decrease in the impact of its own operations on biodiversity. A new static footprint covering the entire 2024 portfolio of 337 sites, including sites not in the 2023 dataset, was calculated at 30.90 MSA.ha and will serve as the baseline for next year. Relative to the 2022 baseline of 65.0 MSA.ha, Arcadis states it has demonstrated no net biodiversity loss at its leased office locations. Arcadis also assessed its 337 leased sites, all urban or suburban, with the WWF Biodiversity Risk Filter, finding none material for biodiversity and no overlap with protected areas, Key Biodiversity Areas, Ramsar sites or Natura 2000 sites.

Arcadis has a dedicated Resource Use and Circular Economy Policy, introduced in 2024, which focuses entirely on the material topic of waste. Its stated goals are to identify how Arcadis affects resource use, including resource efficiency, avoiding depletion of resources and sustainable sourcing and use of renewable resources; to report annually through the Sustainability Statement on actions taken to prevent or mitigate material negative impacts, including measures to help decouple economic growth from the use of materials; to describe plans and capacity to adapt the strategy and business model in line with circular economy principles such as minimizing waste and maintaining the value of products and materials at their highest value; to outline how material risks and opportunities are managed; and to provide insight into financial effects over the short, medium and long term. The policy specifically addresses secondary recycled resources and sustainable sourcing by promoting procurement of consumables, cleaning materials, office supplies, furniture and IT equipment from circular sources. Scope covers office-based activities globally, including leased multi-tenant space, client projects and suppliers. The Chief Growth Officer is accountable for implementation.

In its own operations Arcadis applies key principles for responsible resource use and the circular economy. Resource efficiency actions include conducting regular assessments to identify opportunities for reducing resource consumption and waste generation, implementing measures to optimize the use of energy, water and materials, and encouraging employee awareness. To promote a circular economy, Arcadis commits to procuring consumables, cleaning materials, office supplies, office furniture, IT equipment and other office materials, to the extent possible, from sources that honor circular economy principles. Waste management actions include implementing waste reduction measures such as segregation and recycling wherever feasible, encouraging responsible disposal of hazardous and non-recyclable waste, and collaborating with waste management service providers on proper treatment and disposal. Arcadis began assessing waste from its own operations globally by waste type and disposal method in 2024, and expects to continue measuring annually and to increase the amount of measured data. The expected future outcome is further improvement of resource efficiency, an increase in procurement of circular consumables and other materials, and more effective waste management.

Arcadis reports that it has not yet set quantitative resource use or waste reduction targets. Its first objective for 2025 is to develop a robust baseline assessment of the waste generated in its own operations, broken down by waste stream. Once that assessment is complete, Arcadis may consider setting reduction targets. Arcadis intends to monitor the effectiveness of the actions described in its Resource Use and Circular Economy Policy, introduced in 2024, using its Environmental Management System as the primary process for tracking quantitative effectiveness. Because tracking has not yet begun, Arcadis states it has not specified a defined level of ambition. Environmental Management System processes include action plans for material topics including waste, listing the actions to undertake, resources required, the responsible party, the timeline, progress measurement tools and reporting. Ambitions will be formulated if base year information is assessed to be of sufficient granularity and quality. Indicators will be the amount of waste produced and its annual reduction, measured in metric tons. For value chain activities Arcadis will use the phase-in period to develop a similar step-by-step action plan.

Arcadis describes waste as arising mainly from its predominantly office-based activities, where a limited amount of waste is generated and collected separately for off-site recycling, re-use or disposal. Reported waste fractions include paper and cardboard, organic waste, plastic food containers and bottles, packaging waste, construction waste from office refurbishments, batteries, e-waste such as phones, computers and monitors, office furniture and fixtures, and residual waste. Waste data collection for a growing number of locations is performed by Arcadis Environmental Management System managers. Arcadis began assessing waste globally by waste type and disposal method in 2024, with measured data available from 73 offices. For offices not yet collecting data, average waste intensity per FTE by waste type from 40 offices was prorated using the FTE of the missing offices and average country office attendance, drawn from a global commuting and working from home survey answered by 23% of employees. In client projects Arcadis may play a role in waste minimization, for example a project in Chile separating organic waste streams to reduce landfill methane and supply renewable energy production.

Arcadis reports total waste generated of 2,254.8 tonnes in 2024. Total hazardous waste was 23.0 tonnes and non-hazardous waste 2,231.9 tonnes. Hazardous waste diverted from disposal was 15.1 tonnes, comprising 0.0 tonnes prepared for reuse, 5.8 tonnes recycling and 9.3 tonnes other recovery operations. Non-hazardous waste diverted from disposal was 1,371.3 tonnes, comprising 0.5 tonnes prepared for reuse, 1,291.8 tonnes recycling, 14.9 tonnes other recovery operations and 64.2 tonnes composting. Hazardous waste directed to disposal was 7.9 tonnes, of which 0.1 tonnes by incineration, 0.2 tonnes by landfilling and 7.6 tonnes by other disposal operations. Non-hazardous waste directed to disposal was 860.5 tonnes, of which 489.3 tonnes by incineration, 37.4 tonnes by landfilling and 333.0 tonnes by other disposal operations. Non-recycled waste was 868.4 tonnes, or 39%. By waste type, the largest streams were mixed recycling at 1,194.1 tonnes, general office waste at 825.2 tonnes, catering and food waste at 85.6 tonnes, confidential waste at 42.6 tonnes, cardboard at 34.7 tonnes and paper at 21.2 tonnes.

Arcadis reports that its general policies are available on its intranet and apply to its own workforce. A table maps six policies to the three material sub-topics: the Arcadis General Business Principles (AGBP), covering training and skills development and health and safety; the Seek Advice and Speak Up Policy, covering health and safety; the Respect at Work Policy, covering work-life balance; the Human Rights Policy, covering health and safety; the Health and Safety Vision and Policy, covering both; and the Workstyle Promise, covering work-life balance. The AGBP forms the code of conduct, with ultimate responsibility resting with the Arcadis Executive Board. The Human Rights Policy follows the UN Guiding Principles and references the International Bill of Human Rights, the ILO Declaration on Fundamental Principles and Rights at Work, ILO Convention C169 and UNDRIP; Arcadis states it meets the five UNGP requirements. The Respect at Work Policy was released and adopted in 2024 and is led by the Chief People Officer. The Global Director of Health, Safety and Environment owns the health and safety policy, and the Global Workplace Director owns the Workstyle Promise, launched in 2021.

Arcadis describes two-way dialogue between employees and line management, with formalized processes in some countries through works councils and collective labor agreements. A table sets out the engagement channels. Your Voice is the global quarterly employee dialogue survey, in which 85% of employees shared their thoughts in 2024; results are released shortly after the survey closes and managers with five or more participating team members receive team results. The Chief People Officer has ultimate responsibility and reports to the Executive Leadership Team and Supervisory Board. The annual Your Voice Wellbeing Survey covers work-life balance and the ability to take time off when unwell, with results used by the Global Wellbeing Director. The annual Workstyle and Workplace Survey informs workplace design and policies, and the annual Diversity Representation Survey informs diversity, equity, inclusion and belonging action plans and five affinity groups. A European Works Council meets quarterly and in 2024 was consulted on business strategy, the Skills Powered Organization journey, structural changes and new technology. Country works councils operate in the Netherlands, Belgium, Germany, France, Italy, Romania, Poland and Brazil, meeting monthly to quarterly.

Arcadis states that its human rights policy commits to remedy where Arcadis causes or contributes to adverse human rights impacts, and that it reacts to potential or actual impacts when they are reported through the Seek Advice and Speak Up Policy. Employees and external stakeholders who wish to remain anonymous can use the Integrity Line, accessible 24 hours a day, seven days a week, in their own language by web or phone. The Integrity Lines are hosted by an independent third party, which Arcadis says ensures protection against retaliation, and reports are received by the Global Compliance Office for initial assessment before confidential handling as set out in the Compliance Charter. A separate external Integrity Line is available to suppliers, clients and other third parties, supporting compliance with the EU Whistleblower Directive and the UN Guiding Principles. In 2024, 208 alleged breaches of the AGBP were reported through the various channels, compared with 109 in 2023. Inappropriate workplace behavior was the category with the most reported issues, and there were 11 dismissals company-wide on grounds related to AGBP breaches. Arcadis regularly monitors the effectiveness of its Speak Up program and non-retaliation procedures.

For training and skills development, Arcadis reports its Skills Powered Organization program, designed from 2023, with the first rollout phase in May 2024 giving an initial 24,000 employees access to an AI-powered platform offering personalized development, role and career pathway recommendations. A Gigs pilot connecting employees to short-term opportunities was launched, with full deployment planned for 2025. The Learning Experience Platform provides access to over 11,000 digital learning resources. By the end of 2024 Arcadis had conducted five specialized energy transition programs covering hydrogen, urban energy solutions, offshore wind, industrial decarbonization and nuclear power, and completed a suite of 13 Sustain Abilities modules. Two Growth Accelerator programs ran in 2024, and Management Essentials and Advanced Management programs continued under the Line Management Experience initiative. For health and safety, the Global Health, Safety and Wellbeing Management System Standard is built alongside ISO45001 and ISO45003 guidelines, is used as a minimum standard in every country, and is supported by eight health and safety principles. Stewardship training for senior leaders and mandatory refresher training were rolled out in 2024. Work-life balance actions include flexible working arrangements and family-related leave options.

Arcadis reports employee engagement as its central target for managing the material impacts, risks and opportunities relating to own workforce, covering all three material sub-topics. Engagement is measured by the employee Net Promoter Score through the quarterly Your Voice survey, administered by a third party whose platform allows benchmarking against professional services peers; Arcadis notes that 146 companies in the Professional and Business Services sector use the platform. The target is to remain in the top 25% of the professional services sector by 2026. Arcadis states the target was set by reviewing yearly trends and comparing the baseline using platform insights and benchmarks, with proposed levels discussed with senior leadership, focusing on realistic ambition rather than scenario analysis. No interim targets were defined, as the goal is to maintain a position within the top 25% across years. In 2024 the eNPS was measured at +46, with 85% of employees responding, and engagement remained consistent and within the top 25% of the sector, although no more granular ranking was provided. Arcadis states no other formal targets were set for the three material sub-topics.

As of 31 December 2024 Arcadis reports 33,433 employees by headcount, comprising 13,138 female, 20,154 male and 141 not disclosed. Of these, 32,059 are permanent employees (12,594 female, 19,329 male, 136 not disclosed) and 1,374 are temporary employees (544 female, 825 male, 5 not disclosed). Total workforce including non-employees is 35,246. Arcadis notes that the most representative number in the financial statements is in Note 9, which reflects an average, while this table reports the year-end value, resulting in a difference. Employees by region are Asia 7,071, Australia 1,150, Europe 12,636, North America 10,119, South America 2,223 and Middle East 234. Only the United Kingdom and the United States have an employee headcount above 10% of the employee population, with 7,330 employees in the United States and 5,131 in the United Kingdom. Arcadis reports 6,261 leavers among permanent and temporary employees in 2024 and total turnover of 18.8%, revised to align with the ESRS definition; turnover based on permanent employees alone is 16.3%, of which 11.3% is voluntary.

Arcadis reports 1,813 non-employees in its own workforce as of 31 December 2024, made up of 1,396 self-employed workers and 417 agency workers, included within a total workforce of 35,246. Arcadis states that the workforce population consists of 91% permanent employees, 4% temporary employees, 4% self-employed workers and 1% third party agency workers. No breakdown of non-employees by gender or region is given. Arcadis reports that its health and safety metrics cover both employees and non-employees because its health and safety policies, systems and processes are applied consistently across the entire workforce, with 100% of non-employees covered by the health and safety management system in 2024. Training actions apply primarily to Arcadis employees as the main affected stakeholder group, while training of managers who also oversee non-employees is said to contribute to a more equipped workforce. Work-life balance programs are also described as assisting line managers to manage work-life issues across the total workforce, including non-employees.

For the 2024 reporting year Arcadis reports that 70% of employees participated in at least one regular performance and career development review, split as 71% of female employees, 70% of male employees and 50% of those recorded as other or not disclosed. Arcadis states employees are expected to have such a review with their manager once a year. The average number of training hours per employee in 2024 was 65, comprising 63 hours for female employees, 65 hours for male employees and 106 hours for those recorded as other or not disclosed. Arcadis states that apart from the employee engagement target measured by eNPS it has no other formal targets for this topic, but it measures and monitors participation in regular performance and career development reviews and in training and skills development. Learning is delivered through the Learning Experience Platform, which provides access to over 11,000 digital learning resources, and through the Skills Powered Organization platform, which suggests learning resources based on skills gaps, career progression and individual interests.

For 2024 Arcadis reports that 100% of employees and 100% of non-employees are covered by its health and safety management system, noting the metric was recorded without differentiation across the entire workforce. There were zero fatalities as a result of work-related injuries and work-related ill health, a figure that includes value chain workers. Recordable work-related accidents totalled 42 cases, made up of 17 work-related ill-health cases and 25 work-related injuries. The rate of recordable work-related accidents was 0.14 per 200,000 hours worked on the OSHA basis and 0.7 per 1,000,000 hours worked on the ESRS basis. There were 18 lost time cases, giving a lost time case frequency of 0.06 on the OSHA basis and 0.3 on the ESRS basis. Days lost to work-related injuries, ill health and fatalities were 260 on the OSHA basis and 278 on the ESRS basis. Arcadis states that local privacy regulations restricted access to case identities, so employees and non-employees were not distinguished during data collection, and all recorded incidents were confirmed to involve only its own employees.

For 2024 Arcadis reports that 100% of employees are entitled to take family-related leave. Of entitled employees, the share that took family-related leave was 7% of female employees, 5% of male employees, 1% of those recorded as other or not disclosed, and 6% overall. Arcadis states that the formal target for this topic is employee engagement measured through the eNPS score, and that continuous listening through the Your Voice engagement survey and the Workstyle and Workplace survey helps it understand concerns raised about balancing work and life. Arcadis also monitors attrition levels and reasons for leaving to analyse whether work-life balance issues could be causing employees to leave, reporting 6,261 leavers among permanent and temporary employees in 2024 and total turnover of 18.8%, or 16.3% for permanent employees alone with 11.3% voluntary turnover. Reported actions include flexible working arrangements available to employees as of 2024, and family-related leave options such as parental leave for either parent, flexible work schedules, dependent care leave and adoption assistance.

Arcadis reports that its Human Rights Policy underpins its commitment to respect internationally recognized human rights, including rights related to health and safety, with reference to the Universal Declaration of Human Rights, the International Labor Organization's Declaration on Fundamental Principles and Rights at Work, the United Nations Global Compact and the United Nations Guiding Principles on Business and Human Rights. Human rights due diligence for the value chain is formalized in the Human Rights Policy and the Global Sustainability Policy. The Supplier Code of Conduct sets out human rights requirements for the supply chain, including health and safety expectations, and is aligned with the Human Rights Policy. That policy covers the geographies in which Arcadis operates and in which its value chains operate. The commitment to health and safety is embedded in the Global Health and Safety Policy, with due diligence practice detailed in the Global Health, Safety and Wellbeing Management System Standard, which aims to cover all value chain workers. The Chief Growth Officer is accountable for implementing the relevant value chain policies and the Chief Delivery Officer holds primary responsibility for health and safety.

Arcadis reports that it does not yet have a common global approach to proactively engage with value chain workers, including at which stages engagement occurs and at what frequency. To develop accessible communication channels, Arcadis conducted a pilot project in Chile in 2024, working with a third party to reach value chain workers on a project site through an automated survey solution that collected data at scale directly and anonymously. Insights and lessons learned from the pilot will inform further operationalization of the Stakeholder Engagement Policy on Sustainable Topics across the value chain. Under that policy Arcadis states it will engage with stakeholders about material actual and potential positive and negative environmental and human rights impacts, including upstream and downstream value chain workers and their legitimate representatives or credible proxies, capturing the perspectives of workers who may be particularly vulnerable or marginalized through risk and impact assessments, research, surveys, dialogue and collaboration. The Chief Growth Officer is accountable for stakeholder engagement on sustainability topics and for incorporating feedback into strategy, the Global Sustainability team shapes and executes engagement activities, and the Procurement team and Global Business Areas implement engagement in their areas.

Arcadis reports mechanisms that allow value chain workers to raise concerns anonymously through its Integrity Line, to seek advice, communicate or report issues related to Arcadis business activities, including suspected or actual breaches of Arcadis policies and issues related to human rights and health and safety, with safeguards in place to prevent retaliation. The external Integrity Line is hosted by a third party and is available to suppliers, clients and other third parties 24 hours a day, 7 days a week, accessible through local telephone numbers or the internet and in native languages. Where individuals do not have access to the digital reporting tools, Arcadis relies on grievances reported from within the business, with arrangements made at project level to address health and safety concerns and provide remedy. The Supplier Code of Conduct includes the Seek Advice and Speak Up Policy Statement, which sets out the grievance mechanism and non-retaliation approach, and this is also covered in the online training for suppliers. In 2024 a total of 208 alleged breaches of the Arcadis General Business Principles were reported through the various channels, against 109 in 2023. Arcadis monitors and reports on the effectiveness of its Speak Up program.

Arcadis describes upstream and downstream actions. An estimated 20 to 25% of gross revenues is spent on third parties and subcontractors, and in 2024 project-related suppliers accounted for about two thirds of procurement spend. Relevant suppliers in high-risk areas undergo due diligence before a business relationship starts, increasingly centralized through a prequalification questionnaire and screening tools, with commitment to the Supplier Code of Conduct required in the questionnaire, the general terms and conditions and purchase orders. A Sustainability Risk Matrix designed with external human rights experts, combined with internal expertise, an ESG screening and monitoring tool and public sources, identifies high-risk purchasing categories and countries. Higher-risk regions include Latin America, the Middle East and Asia, and higher-risk categories include construction, IT hardware and materials. In 2024 screening identified a few working conditions issues among suppliers, including health and safety, freedom of association and forced labor, with follow-up actions covering supplier engagement, contractual clauses and improvement plans, subject to continuous monitoring. Downstream, Arcadis applies client acceptance checks on client health and safety management systems and track records, tender board review, project level health and safety impact assessments approved by the line manager and the client, and continuous monitoring and reporting.

Arcadis reports that at present there are no quantitative health and safety targets for value chain workers. Arcadis states that it is making use of the optional phase-in period specified by the ESRS so that it can work towards setting specific key performance indicators and targets for S2. As part of its implementation plan for human rights due diligence in the value chain, Arcadis lists developing key performance indicators and targets for human rights due diligence as a planned action, alongside modifying its reporting structure so that health and safety metrics can be tracked and reported separately for different groups of value chain workers. No measurable outcome-oriented targets, baselines or target years are disclosed for this topic for 2024, and no process for involving value chain workers in target setting is described.

Arcadis reports that the material business conduct sub-topic is management of relationships with suppliers and payment practices, given the role of third-party suppliers and non-employees in project delivery. The risk identified is potential strained relationships with small and medium enterprise suppliers due to a lack of adherence to contractual payment terms, which could disrupt the supply chain and lead to legal disputes affecting project delivery. The Global Procurement Policy applies to all purchases of goods and services, whether on behalf of a client as direct spend or for Arcadis as indirect spend, and covers sustainable supply chains and strategic procurement. It is guided by the Arcadis General Business Principles, the Sustainability Policy, the Third Party Due Diligence Policy and the Human Rights Policy. The Global Procurement function is still maturing and Arcadis follows an implementation roadmap. The Chief Delivery Officer is primarily responsible for the procurement approach, with ultimate accountability resting with the Chief Executive Officer and the Executive Board. The Third Party Due Diligence Policy sets the global approach for risk based due diligence in selecting, evaluating and monitoring third parties. The Supplier Code of Conduct sets expectations on responsible operations, with training material available for employees and suppliers.

Arcadis reports that the percentage of payments aligned with set payment terms was 79 to 83, and that the average number of days taken to pay an invoice, from the date when the contractual or statutory term of payment starts to be calculated, was 46 to 48. Standard payment terms are agreed individually per engagement with the relevant supplier, and terms in place range between 1 day and 120 days. No external target has been set on the measurement of payment terms, although internal dashboards and service level agreements have been created for progress tracking. There were no outstanding legal proceedings related to late payments during 2024. Arcadis states that for 2024 vendor master data and administration were not yet sufficiently developed to fully carve out SME suppliers, so an internal analysis applied the EU recommendation 2003/361 definition, which sets a revenue classification of up to EUR 50M. Suppliers with total Arcadis spend below 500k were assumed to be SMEs, covering 98% of the supplier base, and with a 2% uncertainty boundary applied Arcadis reports over the total amount of suppliers in its Oracle ledger, which covers around 70% of total Arcadis spend.