Fugro

From the Leadership & governance section (page 104-105): Fugro is led by a Board of Management which operates under the supervision of a Supervisory Board. The Board of Management consists of the Chief Executive Officer (CEO) and Chief Financial Officer (CFO). Both are appointed by the Supervisory Board upon nomination by the Board of Management.

The Board of Management is responsible for the management of the company, which includes among other things: ■ Defining and achieving the company's objectives ■ Determining the strategy and the policy for realising the objectives ■ Determining the operational and financial policies ■ Managing the risks inherent to the business activities ■ Ensuring adequate internal risk management and control systems ■ Ensuring reliable and adequate administrative organization and internal control ■ Preparing the annual and interim accounts ■ Ensuring compliance with legislation and regulations ■ Ensuring appropriate relations with shareholders

The Supervisory Board supervises the policies of the Board of Management and the general course of affairs of the company and its business enterprise. The Supervisory Board also assists the Board of Management by providing advice. In performing their duties, the Supervisory Board and the Board of Management are guided by the interests of the company and its business enterprise, taking into consideration the interests of all stakeholders.

The Supervisory Board receives regular updates on sustainability matters from the Board of Management. As stated on page 139: 'The audit committee of the Supervisory Board reviews, at least once a year, the tax strategy including financial impact, management of tax risks, valuation of deferred tax assets, status of compliance and tax implications of any acquisition or divestment.'

The Board of Management addresses sustainability matters as part of their strategic responsibilities, including the implementation of Fugro's Towards Full Potential strategy which explicitly includes sustainability elements such as decarbonization and expanding into climate adaptation solutions.

From page 139: The company has established a remuneration framework that includes sustainability-related performance indicators. The specific details of the integration of sustainability-related performance in incentive schemes are outlined in the Remuneration report 2024 on page 139.

Statement on due diligence

Fugro has embedded due diligence processes across its operations as outlined in the cross-referencing table on page 42:

Core elements of due diligence

Embedding due diligence in governance, strategy and business model

• Own workforce: Policies related to own workforce
• Workers in the value chain and responsible supply chain: Policies related to responsible supply chain and workers in the value chain

Engaging with affected stakeholders in all key steps of the due diligence

• General disclosures: Interests and views of stakeholders
• Own workforce: Processes for engaging with own workers and workers' representatives about impacts
• Business conduct: Speak Up procedure (Process to remediate negative impacts and channels for own workers / workers in the value chain / affected communities / business relationships to raise concerns)

Identifying and assessing adverse impacts

• General disclosures: Materiality assessment process
• Climate change: Greenhouse gas emission profile
• Biodiversity and ecosystems: Biodiversity impact drivers
• Workers in the value chain and responsible supply chain: Potential impacts on workers in the value chain

Risk management over sustainability reporting is integrated into Fugro's overall risk management framework described on pages 106-113. As stated on page 37: 'Fugro's tax governance and management of related risks follows the overall risk management framework, as described in the risk management chapter.'

The sustainability statement has been prepared in accordance with CSRD and ESRS as noted on page 41: 'The sustainability statement is an integral part of the board report and has been prepared in accordance with the Corporate Sustainability Reporting Directive (CSRD) and the European Sustainability Reporting Standards (ESRS) as adopted by the European Commission.'

Strategy, business model and value chain

Our purpose

Together we create a safe and liveable world

Our Vision 2030

In line with our purpose, we are extending our know-how and solutions to the understanding and preservation of ecosystems. By combining real-time insights into ground, water and environmental conditions with predictive digital twin ground models, we look beyond individual projects. In doing so we help our clients, from energy and engineering companies to governments, in their efforts to build safe energy systems, infrastructure and future-proof urban environments, as well as adapt to climate change and preserve natural environments.

Business model

Fugro is the world's leading Geo-data specialist. We provide critical insights from Geo-data into the built and natural environment for our customers in the energy, infrastructure and water markets.

Our activities - Map, Model, Monitor

Map: Conduct technical studies and geographical surveys to map the (sub)surface

Model: Support construction with visualisation services and pinpoint positioning

Monitor: Scan, monitor and analyse structural integrity of assets and environments

Value chain

We have a large supplier base across the large number of countries where Fugro is active. Main client types include international and national energy companies, governments, contractors, large international corporations, design and engineering firms, and (public) service companies.

Markets served

• Energy (75% of revenue): Renewables (38%), Oil & gas (37%)
• Infrastructure: 21% of revenue
• Water: 4% of revenue

Key competitive differentiators

• Highly skilled people with unique Geo-data expertise (>2,600 Geo-data engineers)
• Market-agnostic assets (27 vessels plus 10 long-term charters, 10 USVs, 5 AUVs, etc.)
• Global presence in 52 countries
• Leading technology and innovation

Interests and views of stakeholders

Fugro creates value for its stakeholders and society at large through the services we provide ('what we do') and by being a good employer and responsible company ('how we do it'). We aim to maximise our positive impacts and avoid or minimise negative impacts on people and the planet, both through our own operations, and through our suppliers and our clients' projects.

Key stakeholders and their interests:

Customers

• Insights from Geo-data
• Innovative customer solutions
• Safely built and operated assets
• Sustainable management of natural environment

Employees

• Fair terms and conditions of employment and equal opportunity for all
• Training and life-long learning opportunities
• A healthy and safe working environment

Suppliers

• Long term relationships
• Fair payment terms

Investors

• Attractive return on investment

Society

• Solutions contributing to the energy transition, sustainable infrastructure, climate adaptation and nature conservation
• Reduced carbon footprint
• Protection of ecosystems
• Leading role in ocean science and mapping programmes
• Ethical business conduct
• Responsible tax
• Knowledge development through academic partnerships

Material impacts, risks and opportunities and their interaction with strategy and business model

Fugro's Towards Full Potential strategy is based on three priorities that directly address material impacts, risks and opportunities:

1. Grow and transform current business

Most of our revenues and value creation will come from our existing business in energy, infrastructure and water. Renewable build out plans from governments ensure that the offshore wind market continues to provide opportunities, while oil and gas markets will taper off over time.

2. Expand into developing segments

Fugro is leveraging its expertise by expanding into developing segments with large Geo-data demand:

• Coastal resilience/inland water management: Flood risk management, environmental impact assessments, preservation of coastal ecosystems
• Ocean health: Environmental impact assessments, ocean science and biodiversity monitoring
• Carbon capture, utilisation and storage (CCUS): Site condition assessments and Geo-risk monitoring
• Critical underwater infrastructure: Surveillance of pipelines and cables

3. Build recurring revenue with Geo-data as a service

Targeting more recurring revenues through:

• Geo-data client portals (VirGeo®) for data management and collaboration
• Hardware sales with data subscriptions

Material topics identified:

• Climate change: Both through our solutions enabling energy transition and our own emissions from operations
• Biodiversity and ecosystems: Through environmental impact of our solutions and operations
• Own workforce: Health, safety, diversity, and talent retention
• Business conduct: Ethical practices and responsible operations across global markets

Materiality assessment process

As referenced on page 42, Fugro has conducted a materiality assessment to identify and assess material impacts, risks and opportunities. The process covers:

• Identifying and assessing adverse impacts across environmental, social and governance topics
• Engaging with affected stakeholders in all key steps of the due diligence
• Embedding due diligence in governance, strategy and business model

The materiality assessment has identified the following material topics:

• Climate change (E1)
• Biodiversity and ecosystems (E4)
• Own workforce (S1)
• Workers in the value chain (S2)
• Affected communities (S3)
• Business conduct (G1)

Fugro's greenhouse gas emission profile, biodiversity impact drivers, and potential impacts on workers in the value chain are specifically assessed as part of this process.

ESRS disclosure requirements covered

Fugro's sustainability statement covers the following material ESRS topics and related disclosure requirements:

ESRS 2 - General Disclosures

• GOV-1 to GOV-5: Governance disclosures
• SBM-1 to SBM-3: Strategy and business model
• IRO-1 to IRO-2: Impact, risk and opportunity management

ESRS E1 - Climate Change

Covering climate-related policies, actions, targets, and emissions data

ESRS E4 - Biodiversity and Ecosystems

Covering biodiversity-related impacts, policies and actions

ESRS S1 - Own Workforce

Covering workforce policies, engagement, health and safety, diversity metrics

ESRS S2 - Workers in the Value Chain

Covering responsible supply chain management

ESRS S3 - Affected Communities

Covering community engagement and impact management

ESRS G1 - Business Conduct

Covering business ethics, anti-corruption, and responsible business practices

A detailed ESRS disclosure requirements reference table is provided on page 94 of the annex.

Transition plan for climate change mitigation

Scope of the plan

Fugro's 2035 net-zero roadmap aims to reduce the environmental impact of its own operations (scope 1 and 2). The plan covers all direct and indirect emissions from Fugro's operations globally, including:

• Owned and chartered vessels (86% of combined scope 1 and 2 emissions)
• Other assets: CPT trucks, vehicles, geotechnical drilling rigs, nearshore jack-up platforms
• Offices, laboratories and facilities
• Unconsolidated joint ventures under operational control

The consolidation scope is the same as for the financial statements. Greenhouse gas emissions are reported for both the consolidated accounting group and the unconsolidated subsidiaries and joint ventures under operational control.

For scope 3, Fugro commits that by 2028, 60% of its suppliers by spend (covering purchased goods and services, capital goods, upstream transportation and distribution, waste generated in operations, and business travel) will have science-based methodology aligned emission reduction targets on a best effort approach.

Target years for net zero / carbon neutral

2035 net-zero target on scope 1 & 2: Since 2021, Fugro has been committed to become net-zero by 2035 covering all direct and indirect emissions from its operations (scope 1 and 2). Fugro aims to offset the remaining scope 1 and 2 GHG emissions, to a maximum of 10% of 2022 emissions, by carbon removals to reach net-zero by 2035.

2050 net-zero target on scope 1, 2 & 3: Fugro commits to reducing its absolute scope 1, 2 and 3 GHG emissions at least 90% by 2050 compared to 2022 (base year) using the market-based approach to 45 ktCO2eq. Fugro aims to offset the remaining GHG emissions by carbon removals in accordance with SBTi guidance.

Scope 1, 2, 3 reduction milestones with baseline years

Baseline year: 2022

Science-based targets (SBTi validated):

• Scope 1 & 2: Reducing absolute scope 1 and 2 GHG emissions 54.6% by 2033 compared to 2022 base year to 99 ktCO2eq
• Scope 2 renewable electricity: Increasing annual sourcing of renewable electricity from 47% in 2022 to 80% by 2025 and to 100% by 2030
• Scope 3 fuel & energy: Reducing absolute scope 3 GHG emissions from fuel- and energy related activities by 54.6% by 2033 compared to 2022 (base year) to 25 ktCO2eq
• Scope 3 supplier engagement: 60% of suppliers by spend having science-based methodology aligned emission reduction targets by 2028 (best effort)
• Scope 1, 2 & 3: Reducing absolute scope 1, 2 and 3 GHG emissions at least 90% by 2050 compared to 2022

Intermediate vessel emission intensity targets:

• Vessel CO2 emission intensity reduction of 20% by 2025 (owned and chartered vessels) compared to 2020
• Vessel CO2 emission intensity reduction of 25% by 2027 (owned vessels) compared to 2020

2024 Performance:

• Scope 1 emissions: 210 ktCO2eq (baseline 2022: 209 ktCO2eq)
• Scope 2 market-based emissions: 9 ktCO2eq (baseline 2022: 8 ktCO2eq)
• Scope 3 emissions: 305 ktCO2eq (baseline 2022: 236 ktCO2eq)
• Renewable electricity: 46% (target 2025: 80%; target 2030: 100%)
• Vessel CO2 intensity: 10% reduction vs 2020 (target 2025: 20%; target 2027: 25% for owned vessels)

Alignment with 1.5°C / SBTi validation status

Early 2024, Fugro's near- and long-term science-based emissions reduction targets were validated by the Science Based Targets initiative (SBTi). Science-based targets provide organisations with a clearly defined path to reduce emissions in line with the Paris Agreement goals and are aligned with the latest scientific consensus to limit global warming to 1.5°C above pre-industrial levels.

Fugro intends to conduct a climate change scenario, covering a high emission scenario and a 1.5 degree aligned scenario, and resilience analysis in 2025 to gain further insights in its climate-related risks and opportunities.

Key levers / decarbonization pillars

Fugro's transition plan for reducing scope 1 and 2 emissions comprises the following decarbonisation levers:

1. Uncrewed surface vessels and remote operations

• Fugro operates 9 USVs for medium- to large-scale hydrographic survey and asset inspection applications
• Data-acquisition via USVs, operated from remote operations centres, is approximately 90% less carbon-intensive than traditional vessel operations
• Fugro continues to invest in expansion of its fleet through the development of larger and more capable USVs with longer endurance
• Growth in marine site characterisation and asset integrity revenue will be supported by USVs beyond 2028

2. Propulsion system change and battery hybrid system

• Adaptation of the propulsion system and drive train and installation of a hybrid system of two geotechnical vessels prepared in 2024, scheduled to be finalised in 2025
• Installation of hybrid system expected to improve efficiency by 15%
• Propulsion change expected to improve efficiency by 20%

3. Efficiency measures

• Route optimisation, economic speed modelling, LED lighting, reflective deck paintings
• Detailed ship energy efficiency management plans (SEEMP) for each vessel, reviewed and updated annually
• Future efficiency improvements: enhanced hull performance monitoring and using shore power in port
• Efficiency measures assumed to reduce emissions of non-converted vessels by 10% by 2035

4. Alternative fuels: methanol vessel conversions and biofuel as a transition fuel

• Conversion of vessels to operate on low-carbon fuel green methanol
• In 2024, Fugro Pioneer went into drydock for first phase of engine conversion, with delivery and installation of methanol capable engines expected in Q1 2025
• Planning and engineering for methanol conversion of a second survey vessel in 2026 is ongoing
• A blend of grey and green methanol assumed in the GHG emission forecast, starting with 100% grey methanol, changing gradually to 100% availability of green methanol by 2035
• Green methanol assumed to reduce GHG emissions by 94% compared to marine gas oil (MGO)
• Grey methanol assumed to lead to 10% higher GHG emissions compared to MGO
• Responsibly sourced and certified hydrotreated vegetable oil (HVO, a type of biofuel) available as a transition fuel
• Biofuel assumed to reduce GHG emissions by 80-99% compared to MGO

5. Reducing emissions from third-party chartered vessels

• Active engagement with key vessel suppliers to align their emissions reduction targets and roadmap with Fugro's decarbonisation roadmap
• Gradual decrease in emissions of chartered third-party vessels assumed as third-party vessel owners implement energy efficiency measures and transition to alternate fuels to meet IMO and EU carbon reduction targets
• IMO GHG Strategy: reduction in carbon intensity of international shipping by at least 40% by 2030 compared to 2008; total annual GHG emissions by at least 20% by 2030 compared to 2008
• More stringent third-party vessel vetting for operational efficiency with improved CO2 index

6. Electrification of vehicles & equipment

• Switch to electric vehicles and electrification of land site investigation equipment
• Fully electric Deep Drive© introduced in 2024
• More detailed decarbonisation roadmap for the land business to be developed in 2025
• 50% of Fugro's land assets assumed to be electrified by 2035

7. Sourcing renewable electricity

• Increase in renewable energy sourcing through rooftop solar panels and switching to renewable energy contracts
• In 2024: 34% bundled RECs, 10% unbundled RECs, 2% self-generated from solar panels = 46% total renewable electricity
• Europe-Africa: 91% renewable electricity; Americas: 49% renewable electricity
• Targets: 80% by 2025, 100% by 2030

CapEx / investment commitments

Multi-year fleet transition plan: Implementation of the transition plan requires significant investments. Transforming the vessel fleet to lower-carbon operations requires significant multi-year investments.

Fugro's net-zero marine operations programme is headed by a steering committee which reports directly to the Board of Management, consisting of senior management, fleet management and sustainability.

For information on relevant capital expenditure, refer to paragraph Capex in chapter EU Taxonomy. For information on future capital expenditure, refer to paragraph 2027 guidance and targets in chapter Financial performance.

Related operating expenditure may be affected over time by higher prices for biofuels and green methanol compared to traditional fuel prices.

Methanol vessel conversions: Conversion of vessels to operate on green methanol requires significant investments. Successful transition depends on further development of technology and infrastructure in the entire shipping industry, as well as future worldwide availability of this fuel.

Locked-in emissions and stranded asset analysis

Fugro's locked-in emissions relate to its assets (vessels, geotechnical drilling rigs, CPT trucks) that could have a lifespan beyond the net-zero target date of 2035. The residual emissions from modelling show that Fugro's locked-in emissions are limited. Biofuel is intended to be used for the one vessel with a lifespan beyond 2035 that is not planned to be converted to run on methanol.

Future GHG emissions that are likely to be caused by a company's key assets within their operating lifetime are referred to as locked-in emissions. The projection of the emission reduction by decarbonisation lever reflects current insights and planned measures. Due to uncertainties such as future regulation, market developments including client acceptance, availability and affordability of alternative fuels, the actual reduction path could be different.

Use of carbon credits / removals

2035 net-zero (scope 1 & 2): Fugro aims to offset the remaining scope 1 and 2 GHG emissions, to a maximum of 10% of 2022 emissions, by carbon removals to reach net-zero by 2035.

2050 net-zero (scope 1, 2 & 3): Fugro aims to offset the remaining GHG emissions by carbon removals in accordance with SBTi guidance after achieving at least 90% reduction by 2050 compared to 2022.

Governance and implementation

Fugro's net-zero marine operations programme is headed by a steering committee which reports directly to the Board of Management, consisting of senior management, fleet management and sustainability.

A dedicated multidisciplinary global steering committee reports to the Board of Management on the net-zero roadmap.

The Board of Management, jointly with the ELT, sets appropriate targets to ensure achievability and measurability in accordance with the mid-term targets and ensures these targets remain aligned with longer-term goals such as Fugro's net-zero roadmap and Vision 2030.

Scenario analysis

Fugro intends to conduct a climate change scenario, covering a high emission scenario and a 1.5 degree aligned scenario, and resilience analysis in 2025 to gain further insights in its climate-related risks and opportunities.

Climate change policies

Fugro's climate approach is integrated into its business strategy and operations. The company's purpose 'Together we create a safe and liveable world' directly addresses climate change through:

Strategy integration

• Supporting clients with the energy transition, infrastructure investments, and urgently needed climate change mitigation and adaptation solutions
• Expanding into developing segments including coastal resilience, carbon capture and storage, and ocean health
• Implementing an ambitious decarbonisation roadmap for own operations

Operational policies

• Gradual transition from traditional vessels to remotely operated uncrewed surface vessels (USVs) which have a significantly lower carbon footprint
• Investment in next generation USVs with longer endurance, deep water capability and multiple sensors
• Development of asset-lighter and low carbon solutions
• Implementation of digital workflows and advanced data analytics to reduce operational carbon intensity

Actions and resources for climate change

Technology development and deployment

• Uncrewed Surface Vessels: Celebrated 10 years of remote operations centres and one million hours of remote work completed in 2024. USVs remove personnel from high-risk offshore environments and have a significantly lower carbon footprint (over 90% reduction compared to traditional survey methods)
• Next generation USVs: Targeting launch of USVs with longer endurance and deepwater capability in 2025
• Vessel conversions: Finalised conversion of Fugro Pioneer by equipping her with methanol engines
• Electric vehicles: Launched the first fully electric Electric Deep Drive® for land site characterisation, providing better accuracy data faster and without carbon emissions

Innovation investments

• R&D spending: 2.3% of revenue in 2024 (2023: 2.0%)
• Patent filings: 48 new priority filings in 2024 related to sustainable methodologies and assets
• Blue Dragon®: Field trials started for fully autonomous geotechnical seafloor drill to enhance operational efficiency while reducing safety risks and carbon emissions

Operational transformation

• Cloud-based data processing enabling near real-time data delivery
• Digital workflows and AI analytics for enhanced operational efficiency
• Asset-lighter operating model through remote and autonomous operations

Targets related to climate change mitigation and adaptation

Science-Based Targets (SBTi-validated, 2024)

Net-Zero Target 2035 (Scope 1 & 2)

Vessel Emission Intensity Targets

Revenue Target (Climate Solutions)

Notes

• Science-based targets were validated by the Science Based Targets initiative (SBTi) in early 2024
• Base year 2022 was chosen as first post-COVID year with representative business performance
• Net-zero 2035 target allows carbon removals for maximum 10% of 2022 baseline emissions
• Decarbonisation levers include: USVs/remote operations, hybrid systems, efficiency measures, methanol conversions, biofuels, electrification, and renewable electricity
• Fugro aims to offset remaining scope 1&2 emissions by carbon removals to reach net-zero by 2035

Energy consumption and mix

In 2024, the total energy consumption from Fugro's own operations was 838,047 MWh, of which 98% from fossil sources; the remaining percentage relates to renewable sources and limited consumption from nuclear sources. Approximately 87% of fossil energy consumption is from marine gas oil (MGO) consumed by owned and chartered vessels, jack-up platforms, geotechnical drill rigs and other nearshore assets.

Energy consumption & mix

Scope note: Includes non-consolidated joint ventures, contributing <1% to the total energy consumption.

Breakdown of renewable electricity (2024)

In 2024, Fugro purchased 34% bundled renewable energy certificates (RECs) and 10% unbundled RECs. In combination with 2% electricity from self-generated renewable energy from solar panels on the Mumbai, Singapore and Belgium offices, this resulted in a total of 46% of electricity consumption from renewable energy sources. In the region Europe-Africa, 91% of all electricity consumed was renewable, in the Americas this was 49%.

Gross Scopes 1, 2, 3 and Total GHG emissions

GHG emission profile and science-based targets

Methodology note: Fugro applies the Greenhouse Gas Protocol reporting standard. Scope 1 and 2 emissions cover the consolidated accounting group plus unconsolidated joint ventures under operational control (100% of emissions included irrespective of ownership percentage). Scope 3 emissions relate to upstream emissions and investments; downstream emissions are negligible as Fugro sells data insights rather than physical goods. Spend-based method applied for most scope 3 categories using EPA supply chain emission factors; activity-based calculations used for categories 3, 6, 7 and partly 15. In 2024, 33% of scope 3 emissions used primary data and 67% used spend-based method. Fugitive emissions are not material (estimated at 0.4% of scope 1). Base year 2022 chosen as first normal operation year post-COVID-19 with best quality data representative of normal business performance.

Note on Scope 3 categories: Categories 8-14 not applicable as Fugro sells data insights with negligible downstream physical goods emissions.

Science-based targets validated by SBTi (early 2024):

• Scope 1 & 2: 54.6% absolute reduction by 2033 vs 2022 baseline to 99 ktCO2eq
• Scope 2: 80% renewable electricity by 2025, 100% by 2030
• Scope 3 (category 3 fuel & energy related): 54.6% absolute reduction by 2033 vs 2022 to 25 ktCO2eq
• Scope 1, 2 & 3 combined: 90% absolute reduction by 2050 vs 2022
• Supplier engagement target: 60% of suppliers by spend (categories 1, 2, 4, 5, 6) to have science-based methodology aligned emission reduction targets by 2028 (best effort basis)

GHG emission intensity

Note: Revenue from consolidated statement of comprehensive income used as denominator.

Vessel CO2 emission intensity

Fugro reports an intermediate operational metric for vessels (86% of combined scope 1 & 2 emissions):

Methodology: CO2 emissions from fuel combustion (owned and chartered vessels) divided by operational days. Operational day = vessel used for actual business-related project work including project-related transit, preparation and testing. Fuel consumption multiplied by density factor (from Bunker Delivery Note) and CO2 emission factor (from latest IMO GHG studies).

Note: 2024 intensity increase vs 2023 due to relatively more utilisation of large geotechnical vessels and relatively lower utilisation of smaller geophysical vessels.

EU Emission Trading System (ETS) applicability

From 2024, ships above 5,000 gross tonnage (GT) transporting cargo or passengers in Europe require emission allowances for CO2 emissions under EU ETS. Offshore vessels included from 2027. Currently only one Fugro vessel (Fugro Synergy) falls within this category. In 2026, European Commission expected to review whether smaller general cargo and offshore vessels between 400 GT and 5,000 GT will be included, which would affect other Fugro vessels.

Energy consumption and mix

Note: Includes non-consolidated joint ventures, contributing <1% to total energy consumption. Approximately 87% of fossil energy consumption is from marine gas oil (MGO) consumed by owned and chartered vessels, jack-up platforms, geotechnical drill rigs and other nearshore assets. Energy consumption calculated by multiplying consumption volume by density and net caloric value (from governmental sources). Different fuel types include natural gas, diesel, gasoline, marine gas oil (MGO), jet kerosene, bioethanol and HVO.

Share of renewable electricity

In 2024, 46% of electricity consumption from renewable sources: 34% bundled renewable energy certificates (RECs), 10% unbundled RECs, 2% self-generated renewable energy from solar panels (Mumbai, Singapore, Belgium offices). By region: Europe-Africa 91%, Americas 49%, Asia Pacific and Middle East & India more challenging due to low share of renewable energy in national grid mix and local regulations restricting self-generated renewable energy.

Target: 80% renewable electricity by 2025, 100% by 2030.

Biogenic CO2 emissions

Not separately disclosed in the report.

Scope 2 calculation methodology notes

Location-based method: Activity data of electricity, steam, heat and cooling per entity multiplied by IEA national grid emission factors published in the reporting year.

Market-based method: Applies market-based emission factor hierarchy: energy attribute certificates (Guarantees of Origin, Renewable Energy Certificates), electricity contracts, supplier specific emission factors, regional and national grid-average emission factors. In 2024: 34% bundled RECs, 10% unbundled RECs, 2% self-generated renewable energy.

Scope 3 calculation methodology notes

Activity-based calculations: Category 3 (fuel and energy related activities), category 6 (business travel), category 7 (employee commuting), partly category 15 (investments). Uses activity data with UK BEIS emission factors (published 8 July 2024).

Spend-based calculations: Categories 1, 2, 4, 5, partly 15. Uses supply chain GHG emission factors based on environmentally-extended economic input-output models from US EPA, adjusted for inflation and exchange rate.

Primary data share: 33% of 2024 scope 3 emissions used primary data, 67% used spend-based method.

GHG emissions recalculation policy

Every five years, Fugro reviews and if necessary recalculates GHG reduction targets following most recent criteria, including re-assessing materiality of fugitive emissions. Significance threshold for emissions recalculations set at 5%.

Net-zero target (2035)

Fugro committed to net-zero by 2035 covering scope 1 and 2 emissions. Aims to offset remaining scope 1 & 2 GHG emissions (maximum 10% of 2022 emissions) by carbon removals to reach net-zero by 2035. Ultimate target: 90% reduction of scope 1, 2 and 3 emissions by 2050 (market-based approach) to 45 ktCO2eq, with remaining emissions offset by carbon removals in accordance with SBTi guidance.

Anticipated financial effects from material physical and transition risks and potential climate-related opportunities

Use of phase-in exemption

Fugro uses the phase-in provision in accordance with Appendix C of ESRS 1 for ESRS E1-9: Anticipated financial effects from material physical and transition risks and potential climate-related opportunities.

This disclosure requirement is not reported for 2024.

Omission of sensitive information

Fugro does not disclose the amount of capital expenditure involved in the fleet transition plan as this is considered sensitive information.

Time horizons

Short term is defined as within the year following the reporting period. Medium term is in the next three to five years. Long term is more than five years.

Transition plan and consideration of biodiversity and ecosystems in strategy and business model

Integration of biodiversity in strategy and business model

Fugro's Geo-data collection capabilities and know-how play an important role in understanding biodiversity and the related impacts of clients' projects. The company is investing to support clients in their ambition to create biodiversity net-positive infrastructure, as data acquisition can support the mitigation hierarchy to avoid or minimise potential environmental impacts and to implement biodiversity enhancement measures.

This provides growing and significant opportunities for further diversification and expansion of Fugro's services and solutions, such as remote collection of environmental DNA (eDNA) samples. This is aligned with the second strategic objective of Fugro's Towards Full Potential strategy.

Biodiversity targets and frameworks

Fugro has established targets related to the prevention of transfer of invasive species:

• 93% of owned vessels have a biofouling management plan, against a target of 100% coverage of owned vessels

These targets contribute to 2030 target 6 of the Kunming-Montreal Global Biodiversity Framework (reduce the introduction of invasive alien species by 50% and minimise their impact), as well as the minimalisation, and where possible elimination, of the introduction of alien species, which is part of the EU Biodiversity Strategy for 2030.

Ecological thresholds were not considered when developing these targets and metrics as these have no relation to Fugro's potential impacts.

Geographic and value chain scope

Fugro uses long-term chartered vessels, with the vessel owner responsible for environmental management. Fugro's short-term chartered vessels are typically used for a specific project in one location and therefore do not carry the risk of transfer of invasive species.

Partnerships and initiatives

Fugro continues its support of several partnerships and initiatives dedicated to advancing ocean sciences:

• Ocean Decade Alliance and IOC-UNESCO: The Corporate Data Group was formally established in February 2024, comprising ten private industry members co-chaired by Fugro's CEO Mark Heine, and is supported by a full-time Fugro data expert who has been seconded to the IOC-UNESCO Secretariat in Paris. The group is committed to establishing strategies, equitable frameworks and best practices for industrial and private-sector companies, that provide public access to their privately held ocean data in support of the Ocean Decade.

• The Nippon Foundation-GEBCO Seabed 2030: Fugro continues its in-kind support of this mapping project, targeting a complete map of the world's ocean floor for scientific, environmental, and economic benefits. In 2024, Fugro collected an additional 400,000 km² of in-transit bathymetry data to the initiative, bringing total collected data since the start of this project to over 3 million km².

• UN Global Compact and Ocean Stewardship Coalition: Fugro is a participant of the UN Global Compact and is part of the Ocean Stewardship Coalition, a subgroup focused on ocean issues and comprised of ocean businesses. The Coalition brings leading governments, companies, NGOs, academic institutions, and UN partners together to spearhead action on how the ocean and related industries can contribute to achieving the Paris Agreement and all UN Global Sustainable Development Goals.

• UN Ocean Decade Conference: Fugro's senior management participated in several key events in 2024, such as the UN Ocean Decade Conference in April 2024. The Ocean Stewardship Coalition participated in the Fugro-Ørsted led event "Advancing a biodiversity-positive offshore renewable energy transition" at the UN Ocean Decade Conference. Fugro is widely recognised as a private industry leader in the Ocean Decade.

Biodiversity opportunities

Increasingly, clients, such as offshore wind developers, compile environmental impact assessments, often regulated under national legislation. Many clients are now going a step further, intending to create biodiversity net-positive infrastructure.

Examples of Fugro's services addressing biodiversity:

• Italian government's Marine Ecosystem Restoration Project: Fugro has been selected to map the coastal habitats of the entire Italian coast.

• In 2024, Fugro further expanded its service offerings in ocean health, coastal resilience and carbon capture utilisation and storage, in line with the second strategic objective of its Towards Full Potential strategy. These help clients to address their transition risks and minimise any negative impacts of their projects and activities on the natural environment.

Policies related to biodiversity and ecosystems

Fugro's approach to biodiversity and ecosystems is integrated into its business strategy and client solutions:

Strategic positioning

• Expanding into ocean health solutions including environmental impact assessments, ocean science and biodiversity monitoring
• Mapping and monitoring of marine and freshwater environments through satellite Earth Observation (via EOMAP acquisition)
• Participation in Italy's nationwide seagrass mapping project as part of EU Next Generation-funded initiative

Client solution integration

• Environmental baseline studies to help understand, manage and monitor environmental impacts of clients' marine projects
• Biodiversity assessment technology using state-of-the-art imagery capabilities integrated into autonomous underwater vehicles
• AI and machine learning for habitat species identification and environmental parameter assessment

Partnership and collaboration

• Partnership with UNESCO Oceanographic Commission supporting the UN Decade of Ocean Science for Sustainable Development 2021-2030
• Contribution to Seabed 2030 program targeting complete mapping of world's ocean floor
• EU COASTS project grant focusing on coastal observation and blue carbon ecosystems like mangroves and seagrass

Actions and resources for biodiversity and ecosystems

Technology development

• Advanced imaging capabilities: Developed and integrated state-of-the-art imagery capabilities into the most recent autonomous underwater vehicle for biodiversity assessment
• AI-enabled habitat mapping: Leveraging AI and machine learning to identify habitat species and important environmental parameters, reducing need for dedicated assets and lengthy laboratory tests
• RAMMS system enhancement: Rapid airborne multibeam mapping system enhanced with AI and dual laser technology for faster coastal environment mapping

Project implementation

• Italy seagrass mapping: Participation in nationwide seagrass mapping project funded by EU Next Generation, demonstrating unique ability to assist governments in enhancing coastal resilience and ocean health
• Climate & Nature team: Set up cross-regional expert team focused on climate change adaptation solutions
• EOMAP acquisition: Market leader in mapping and monitoring marine and freshwater environments through satellite Earth Observation

Research and partnerships

• EU COASTS project: Innovation grant for enhancing multi-scale coastal observation capabilities and digital solutions, emphasising blue carbon ecosystems
• Ocean science partnerships: Active support for UN Decade of Ocean Science and Seabed 2030 initiatives
• Academic collaboration: Working with universities on biodiversity-related research and technology development

Targets related to biodiversity and ecosystems

The document references E4-4 in the index and points to "Metrics and targets for the prevention of transfer of species" in the Biodiversity and ecosystems section. However, the actual target disclosure content is not included in the provided excerpts. Only the mapping table showing where E4-4 should be disclosed is present.

Impact metrics related to biodiversity and ecosystems change

Fugro monitors two key metrics related to preventing the transfer of invasive species through marine operations:

Prevention of transfer of species

Methodology notes:

• All owned vessels that use seawater as ballast are monitored for compliance with IMO's D-2 standard, which specifies the maximum amount of viable organisms allowed to be discharged and requires installation of an approved ballast water management system (BWMS).
• Biofouling management plans ensure that biofouling does not accumulate on vessel hulls, including various non-toxic cleaning methods. Fugro is trialling ultrasound transmitters on seven vessels across all geographical regions, with physical inspections planned during dry docking in 2025.
• These metrics contribute to 2030 target 6 of the Kunming-Montreal Global Biodiversity Framework (reduce the introduction of invasive alien species by 50% and minimise their impact).
• Fugro uses long-term and short-term chartered vessels, with vessel owners responsible for environmental management on long-term charters. Short-term chartered vessels are typically used for specific projects in one location and therefore do not carry the risk of transfer of invasive species.

Land use and operations context

Fugro is a Geo-data service company with limited land use restricted to offices and geotechnical laboratories. The company has no specific biodiversity dependencies reported.

Underwater noise pollution

No specific metrics or targets were set for underwater noise pollution due to incompleteness of available data on underwater sound measurements and the potential impacts on marine species. When requested by clients or required by local legislation, marine mammal observers (MMOs) and/or passive acoustic monitoring (PAM) are used to monitor marine life occurrence.

Protected areas and biodiversity-sensitive locations

Fugro's biodiversity policy includes a commitment to avoid degradation of 'protected areas and critical habitats' which include UNESCO World Heritage Sites and IUCN protected areas. In 2024, Fugro initiated the formalisation of biodiversity impact assessment as part of the bid-no bid process, targeting integration into the client and opportunity management system in 2025. No quantified metrics on operations in or near protected areas or Key Biodiversity Areas (KBAs) are disclosed.

Deep sea mining commitment

Fugro has committed to refrain from offering any commercial deep sea mining services until the impact on the environment and ecosystems is thoroughly assessed by independent research organisations and clear regulation is approved by the UN International Seabed Authority (ISA).

Anticipated financial effects from biodiversity and ecosystem-related impacts, risks and opportunities

Phase-in exemption applied

Fugro applies the phase-in option for ESRS E4-6: Anticipated financial effects from biodiversity and ecosystem-related risks and opportunities.

This disclosure requirement is listed among the information omitted for 2024 reporting under the phase-in provisions.

Policies related to own workforce

Fugro's workforce policies are founded on the company's values and commitment to creating a safe and inclusive workplace:

Core values guiding workforce policies:

• We are determined to deliver
• We prepare for tomorrow
• We do what's right
• We build trust

Key workforce policy areas:

Health and Safety

• Health and safety at the core of all activities due to demanding operational environments
• Comprehensive safety culture programs
• Zero tolerance for safety incidents

Talent Development

• Fugro Academy providing training opportunities to all staff with broad-ranging curriculum
• Focus on supporting career development at all levels
• Life-long learning opportunities for professional and personal development

Diversity, Equity and Inclusion

• Diversity, equity, and inclusion roadmap implementation
• Focus on attracting, developing and retaining diverse talent
• Equal opportunity for all employees

Employment Standards

• Fair terms and conditions of employment
• Commitment to respecting human rights throughout operations and business relationships
• Compliance with UN Guiding Principles on Business and Human Rights

Processes for engaging with own workforce and workers' representatives

Fugro maintains various channels for workforce engagement:

Employee engagement measurement

• Employee Net Promoter Score (eNPS): 36 in 2024 (target: >30), improved from 27 in 2023
• Regular employee surveys to gather feedback on workplace experience and satisfaction

Communication channels

• Direct interaction during and at project closure for feedback gathering
• Regular communication from management on company strategy and performance
• Local management structures ensuring cultural understanding and appropriate engagement

Workforce representatives

• Processes for engaging with workers' representatives about impacts, as referenced in the due diligence framework
• Local employment practices aligned with regional labor regulations and cultural practices

Training and development engagement

• Fugro Academy curriculum covering technical skills, project management, commercial excellence, health and safety, interpersonal and leadership skills
• Career development programs supporting professional growth
• Cross-functional collaboration and knowledge sharing initiatives

Process to remediate negative impacts and channels for workforce to raise concerns

Speak Up procedure

Fugro maintains a comprehensive Speak Up (whistleblower) procedure that provides channels for:

• Own workers to raise concerns
• Workers in the value chain to raise concerns
• Affected communities to raise concerns
• Business relationships to raise concerns

The Speak Up procedure is referenced as part of Fugro's due diligence framework and covers various topics including:

• Safety concerns
• Ethical business conduct issues
• Human rights violations
• Environmental concerns
• Any violations of Fugro's Code of Conduct

Remediation processes

Fugro has established processes to investigate and address concerns raised through the Speak Up procedure, ensuring appropriate remediation of negative impacts when identified.

Code of Conduct

Fugro's Code of Conduct provides the foundation for expected behavior and includes guidance on:

• Responsible business practices
• Respect for human rights
• Health and safety standards
• Environmental responsibility
• Anti-corruption and ethical business conduct

Actions on material impacts and effectiveness

Health and Safety Actions

• Safety performance improvement: Lost time injury frequency reduced to 0.20 per million hours in 2024 from 0.57 in 2023
• Comprehensive incident investigation: Following a fatality in India during 2024, conducted thorough investigation and implemented additional preventive measures
• Safety culture initiatives: Ongoing programs to foster safety culture across global operations

Talent Management Actions

• Successful recruitment: Hired nearly 2,000 people in 2024 despite tight labor markets
• Retention improvement: Voluntary employee turnover declined to 9% in 2024
• Employee engagement: Improved employee Net Promoter Score to 36 (2023: 27)

Diversity and Inclusion Actions

• Gender diversity: Female employees maintained at 23% of workforce
• Women in senior management: Achieved 24% women in senior management positions (target: 25-30%)
• Global workforce diversity: Over 100 nationalities represented across 11,000+ employees

Training and Development

• Fugro Academy expansion: Continued development of in-house training programs
• Skills development: Comprehensive curriculum covering technical, leadership, and interpersonal skills
• Career advancement: Focus on supporting career development at all levels

Targets related to own workforce

Target achievement summary:

• ✓ eNPS: Exceeded target with score of 36
• → Women in senior management: Approaching target range at 24%
• ✓ Safety: Significantly exceeded target with major improvement in LTIF
• → Turnover: Slightly above target but showing improvement trend

Long-term workforce targets:

• Continue improving employee engagement and satisfaction
• Advance gender diversity in leadership positions
• Maintain industry-leading safety performance
• Reduce voluntary turnover through enhanced retention programs

Characteristics of the workforce

Specialized workforce composition:

• Geo-data engineers: >2,600 (largest employer of Geo-data specialists globally)
• Technical, operational and project management roles: >5,000 employees
• Innovation department: ~500 employees

Geographic distribution:

• Europe & Africa: 4,618 employees
• Americas: 2,121 employees
• Asia Pacific: 2,587 employees
• Middle East & India: 1,893 employees

Key workforce characteristics:

• Highly skilled and specialized technical workforce
• Global diversity with over 100 nationalities
• Local presence with offices predominantly staffed and managed by local employees
• Strong technical expertise across marine and land Geo-data disciplines

Collective bargaining coverage and social dialogue

Overview

Collective or individual labour relations are ruled by local applicable law, collective agreements, Fugro's Code of Conduct and its underlying policies. Various collective bargaining agreements are in place within several of Fugro's entities. These cover topics such as remuneration, working conditions, health and safety, equal opportunity and training. While not all vessels, and therefore not all seafarers, are officially governed by the International Transport Workers' Federation (ITF) and the International Bargaining Forum (IBF) collective bargaining agreement (CBA), Fugro's employment terms meet or exceed these standards.

In the Netherlands, the UK, Germany, Austria and France, employees are represented by works councils. In Norway and Chile, employees are represented by health and safety committees. The coverage rate of workers' representation is 39% for Fugro groupwide.

Collective bargaining and social dialogue coverage

Coverage rate by region/country:

*The European Economic Area (EEA) consists of 27 EU member states and three European Free Trade Association (EFTA) nations: Iceland, Liechtenstein, and Norway. The UK is not part of the EEA. The Netherlands is the only EEA country representing at least 10% of Fugro's employees.

Engagement processes

Fugro engages with its own workforce through bi-annual company-wide engagement surveys and by regular interaction with the works councils in countries where this is legally required. The results show continued overall improvement compared to previous years. Managers create action plans and hold team sessions to discuss results and initiate conversations with team members about areas for improvement.

Diversity metrics

Gender diversity progress:

• Overall workforce: Slight improvement in female representation from 22% to 23%
• Senior management: Significant improvement from 22% to 24%, approaching target range of 25-30%
• Leadership commitment: Ongoing diversity, equity, and inclusion roadmap implementation

Cultural diversity:

• Global representation: Over 100 nationalities across workforce of 11,000+ employees
• Local management: Offices predominantly staffed and managed by local employees ensuring cultural understanding
• Regional presence: Operations in 52 countries with local expertise and cultural awareness

Diversity initiatives:

• Active programs to attract, develop and retain diverse talent
• Focus on creating inclusive workplace culture
• Equal opportunity employment practices across all regions

Adequate wages

Commitment and benchmark

Fugro is committed to living wages for all its employees and seafarers in the workforce. Fugro adheres to national statutory minimum wage laws and commits to payment of a living wage when it exceeds the statutory minimum.

Living wage is defined as a wage that provides employees with the necessary income to maintain a decent standard of living for themselves and their dependents, based on local cost of living.

Living wage assessment methodology

Fugro's 2024 living wage assessment was conducted in April and November, comparing the data in its global human resource system with benchmark data provided by WageIndicator, a well-known labour market database.

Coverage and findings

In the most recent living wage assessment in November, a few employees were identified as earning less than the living wage threshold. These cases will be corrected.

Employees below living wage by country:

• China: 0.9%
• Singapore: 0.3%

Employment contract types

Per year-end 2024, 91% of female employees and 85% of male employees had a permanent employment contract.

Remuneration ratio

The annual total remuneration ratio of the highest paid individual to the median annual total remuneration for all employees (excluding the highest-paid individual) for 2024 amounts to 58 including all pay elements (base pay, STI, LTI vesting and variable allowances).

Persons with disabilities

Fugro has not disclosed information on persons with disabilities for the 2024 reporting period.

As stated in the company's phase-in disclosures:

This disclosure requirement is listed among the omissions in the sustainability statement, indicating that no data on the percentage of employees with disabilities, methodology, or country exclusions has been reported for this period.

Training and skills development

Fugro Academy

• Comprehensive curriculum: Broad-ranging training opportunities covering:
  • Technical skills
  • Project management
  • Commercial excellence
  • Health and safety
  • Interpersonal skills
  • Leadership development

Career development focus

• All levels: Support for career development across all organizational levels
• Professional and personal development: Programs addressing both professional skills and personal growth
• Life-long learning: Commitment to continuous learning opportunities for all staff

Skills development outcomes

• Successful recruitment: Ability to hire nearly 2,000 people in 2024 despite tight labor markets
• Employee engagement improvement: eNPS increased to 36 from 27, indicating positive response to development programs
• Retention improvement: Voluntary turnover reduced to 9%, partly attributed to enhanced development opportunities

Specialized technical training

• Geo-data expertise: Maintaining and developing skills of >2,600 Geo-data engineers
• Innovation focus: ~500 employees in innovation department receiving specialized training
• Technology advancement: Training on new technologies including AI, remote operations, and digital workflows

Health and safety metrics

Safety performance metrics for employees, contingent workers and contractors combined

Coverage and methodology notes:

100% of Fugro's workforce (employees, contingent workers and contractors) is covered by the company's health and safety management system.

Total recordable cases (TRC), total recordable case frequency (TRCF) and lost time injury frequency (LTIF) reporting is for employees, contingent workers and contractors combined. Fugro has prepared the required split for all safety metrics in the new HSSE monitoring system which is operational since January 2025. Fugro's HSSE policy is directed towards optimal safety of all employees, non-employees in the workforce and contractors alike, and therefore this distinction has not been made in safety performance metrics for management purposes.

Data on work-related illness is limited to self-reported cases due to the protection of personal (medical) data (GDPR). Cases of recordable work-related ill health are not separately disclosed.

The company notes that one employee fatality occurred in 2024 following an incident during a geotechnical site investigation in India.

Compensation metrics

Pay gap

Fugro promotes fair and equal pay for equal jobs and ensures compliance with local pay equity laws. Twice a year, Fugro conducts a fair pay analysis to identify and correct any wage gaps. The gender pay gap is defined as the difference of average pay levels between female and male employees, expressed as percentage of the average pay level of male employees.

The gender pay gap analysis, based on total remuneration (fixed salaries as well as variable allowances such as bonus payment, LTI grant, time related offshore allowances and field allowances), covered countries with more than 250 employees (Australia, Brazil, China including Hong Kong, Germany, India, the Netherlands, Saudi Arabia, Singapore, United Arab Emirates, United Kingdom and USA), representing 79% of Fugro's employees.

Gender pay gap for countries in which Fugro has at least 250 employees (2024)

The gender pay gap based on total salaries for countries with more than 250 employees was 10%, leading to the conclusion that the average hourly total pay of male employees was higher than the average hourly total pay of female employees.

This gap can be partly attributed to:

• The relative underrepresentation of women in middle management and subject matter expert roles (actions are being taken as part of the diversity, equity and inclusion roadmap)
• The relative underrepresentation of women in field or offshore functions, where allowances are paid to compensate the employee for inconveniences around field and offshore work

In addition, a weighted gender pay gap analysis was conducted for countries with more than 250 employees. For this analysis, the pay gap was calculated per employee group by function and compensation grade of the global career framework. The outcomes of the analysis per country are used to instigate further evaluation at local level. This evaluation and the introduction of standardised salary structures for all employees will continue to drive Fugro's fair pay agenda. Recruitment, hiring and salary procedures remain focused on equal pay for equal jobs.

Remuneration ratio

As from 2024 Fugro calculates the remuneration ratio with the following definition: The annual total remuneration ratio of the highest paid individual to the median annual total remuneration for all employees (excluding the highest-paid individual).

The calculated ratio for 2024 amounts to 58 including all pay elements (base pay, STI, LTI vesting and variable allowances). The main factor influencing this ratio is the increased vesting value of the long term incentives for the CEO.

Prior to 2024 the pay ratio was calculated against average personnel cost per employee.

Methodology

Gender pay gap scope:

• Based on total remuneration including fixed salaries and variable allowances (bonus payment, LTI grant, time related offshore allowances and field allowances)
• Covers countries with more than 250 employees: Australia, Brazil, China including Hong Kong, Germany, India, the Netherlands, Saudi Arabia, Singapore, United Arab Emirates, United Kingdom and USA
• Represents 79% of Fugro's employees
• Defined as the difference of average pay levels between female and male employees, expressed as percentage of the average pay level of male employees

Remuneration ratio scope:

• Annual total remuneration ratio of the highest paid individual to the median annual total remuneration for all employees (excluding the highest-paid individual)
• Includes all pay elements: base pay, STI, LTI vesting and variable allowances
• Methodology changed from 2024 onwards (previously calculated against average personnel cost per employee)

Incidents and human rights impacts

Serious incidents in 2024

• Fatality: One colleague lost in 2024 following an incident during a geotechnical site investigation in India
• Investigation response: Conducted thorough investigation to determine root causes
• Preventive measures: Implemented additional measures to prevent similar occurrences
• Support provided: Heartfelt condolences extended to family, friends and colleagues affected

Speak Up procedure

Fugro maintains a comprehensive Speak Up (whistleblower) procedure that provides channels for reporting:

• Human rights concerns
• Safety incidents
• Ethical business conduct issues
• Environmental concerns
• Code of Conduct violations

Human rights approach

• UN Guiding Principles: Commitment to UN Guiding Principles on Business and Human Rights
• Protection and respect: Aim to protect and respect human rights throughout operations and business relationships
• Due diligence: Integration of human rights considerations into due diligence processes
• Global operations: Ensuring human rights standards across 52 countries of operation

Remediation processes

• Established processes to investigate and address concerns raised through Speak Up procedure
• Appropriate remediation of negative impacts when identified
• Code of Conduct provides foundation for expected behavior and human rights respect

Policies related to workers in the value chain

Fugro's approach to workers in the value chain is integrated into its responsible supply chain management:

Due diligence framework

As outlined in the due diligence cross-referencing table, Fugro has embedded policies related to responsible supply chain and workers in the value chain covering:

• Labor practices
• Health and safety standards
• Greenhouse gas emissions
• Anti-bribery and corruption measures

Supplier engagement approach

• Large supplier base: Working with suppliers across the large number of countries where Fugro operates
• ESG criteria: Specific attention to environmental, social and governance factors in supplier selection and engagement
• Human rights respect: Ensuring suppliers align with UN Guiding Principles on Business and Human Rights
• Local presence: Understanding local business procedures, culture and traditions through local management

Subcontractor responsibility

• Operational sites: Responsibility for health, safety and security of sub-contractor workers on operational sites controlled by Fugro
• Standards alignment: Ensuring subcontractors meet Fugro's standards for worker protection
• Supply chain integration: Embedding responsible practices throughout the supply chain

Processes for engaging with workers in the value chain

Supplier collaboration

• Long-term relationships: Focus on building long-term relationships with suppliers
• Regular engagement: Ongoing collaboration and communication with key suppliers
• Local understanding: Local management ensuring appropriate engagement practices aligned with regional cultures and regulations

Due diligence processes

• Supplier assessment: Evaluation of suppliers based on labor practices, health and safety, environmental performance, and business ethics
• Ongoing monitoring: Regular review of supplier performance against ESG criteria
• Collaborative improvement: Working with suppliers to enhance practices and standards

Subcontractor management

• Site-controlled operations: Direct engagement with subcontractor workers on operational sites under Fugro's control
• Safety integration: Ensuring subcontractor workers are included in health and safety protocols
• Standards communication: Clear communication of Fugro's expectations and standards to all value chain workers

Remediation processes and channels for value chain workers

Speak Up procedure extension

Fugro's Speak Up (whistleblower) procedure provides channels for workers in the value chain to raise concerns about:

• Labor practices and working conditions
• Health and safety issues
• Human rights violations
• Environmental concerns
• Ethical business conduct
• Any violations of expected standards

Remediation framework

• Investigation processes: Established procedures to investigate concerns raised by value chain workers
• Corrective actions: Implementation of appropriate remediation measures when negative impacts are identified
• Supplier accountability: Holding suppliers accountable for addressing worker concerns and implementing improvements

Supply chain responsibility

• Direct oversight: For subcontractor workers on Fugro-controlled operational sites
• Supplier requirements: Clear expectations for suppliers regarding worker treatment and remediation processes
• Collaborative resolution: Working with suppliers to resolve issues and prevent recurrence

Actions on value chain worker impacts and effectiveness

Supplier management actions

• ESG integration: Specific attention to labor practices, health and safety, greenhouse gas emissions, anti-bribery and corruption in supplier selection and ongoing collaboration
• Due diligence implementation: Regular assessment and monitoring of supplier practices related to worker treatment
• Long-term partnerships: Building sustained relationships that enable continuous improvement in worker conditions

Subcontractor worker protection

• Direct responsibility: Taking responsibility for health, safety and security of sub-contractor workers on operational sites controlled by Fugro
• Standards implementation: Ensuring Fugro's health and safety standards extend to all workers on controlled sites
• Training and integration: Including subcontractor workers in safety protocols and training programs

Supply chain improvements

• Fair payment terms: Providing fair payment terms to suppliers, supporting their ability to maintain good working conditions
• Capacity building: Working with suppliers to enhance their labor practices and worker protection measures
• Local presence advantage: Utilizing local management to ensure culturally appropriate and effective worker engagement

Effectiveness monitoring

• Regular review: Ongoing assessment of supplier and subcontractor performance regarding worker treatment
• Speak Up utilization: Monitoring use of grievance mechanisms by value chain workers
• Continuous improvement: Adapting approaches based on feedback and emerging best practices

Targets related to value chain workers

Supplier Engagement Target

Target metric: Percentage of suppliers by spend (covering purchased goods and services, capital goods, upstream transportation and distribution, waste generated in operations, and business travel) that will have science-based methodology aligned emission reduction targets

Target value: 60%

Target year: 2028

Baseline year: Not explicitly disclosed

Baseline value: Not explicitly disclosed

Scope: Value chain - suppliers covering purchased goods and services, capital goods, upstream transportation and distribution, waste generated in operations, and business travel

Type: Not specified as absolute or intensity-based

Science-based/validation: Suppliers are expected to have science-based methodology aligned emission reduction targets

Progress to date (2024): Around 7.1% of suppliers by spend have formally committed to or have validated science-based emission reduction targets (initial screening of Fugro's supplier base compared to the SBTi database at the end of 2024)

Context: This target represents a first step for suppliers to reduce their emissions in the near and long term in line with the Paris Agreement, contributing to Fugro's target to reduce absolute scope 3 emissions 90% by 2050 compared to 2022. In 2024, Fugro started a phased implementation of enhanced supplier due diligence and tooling to facilitate active engagement with suppliers on their reduction targets.

Policies related to affected communities

Fugro's approach to affected communities is integrated into its client project management and ESG due diligence processes:

ESG due diligence approach

As referenced in the chapter on Biodiversity and ecosystems and Affected communities, Fugro has established ESG due diligence processes for clients and projects that consider community impacts.

Environmental and social impact assessment

• Environmental baseline studies: Helping understand, manage and monitor environmental impacts of clients' marine projects that may affect local communities
• Biodiversity assessment: Comprehensive evaluation of ecosystem impacts that communities depend on
• Climate adaptation solutions: Providing coastal resilience and flood protection solutions that directly benefit affected communities

Community-focused solutions

• Coastal protection: Supporting communities through coastal erosion studies and barrier structure design
• Flood risk management: Providing assessments and advice for inland waterways to protect communities from flooding
• Ocean health: Mapping and monitoring marine environments that communities rely on for livelihood

Stakeholder consideration

• Government partnerships: Working with national and local stakeholders on community resilience projects
• Cultural sensitivity: Local presence ensuring understanding of community needs and cultural considerations
• Long-term impact: Focus on solutions that provide lasting community benefits through improved environmental and infrastructure resilience

Processes for engaging with affected communities

Project-based engagement

• Environmental impact assessments: Conducting comprehensive assessments that include community impact considerations
• Stakeholder consultation: Engaging with local and national stakeholders on community resilience projects
• Cultural awareness: Utilizing local management and employees who understand community cultures and traditions

Government and institutional partnerships

• National stakeholder collaboration: Supporting national and local stakeholders with coastal erosion studies and flood protection design
• Port and harbour authorities: Working with local authorities on facility adaptations that affect surrounding communities
• Research institutes: Collaborating with (non)governmental organizations and research institutes on ocean health projects

Community benefit projects

• Italy seagrass mapping: Participation in EU Next Generation-funded initiative demonstrating ability to assist governments and local communities in enhancing coastal resilience
• Coastal resilience solutions: Providing mapping, monitoring and consulting services that directly support community protection from climate change impacts
• Ocean conservation: Contributing to ocean health initiatives that benefit coastal communities dependent on marine resources

Local presence advantage

• Cultural understanding: Local employees ensuring appropriate community engagement approaches
• Regional expertise: Understanding local business procedures, culture and traditions
• Long-term relationships: Building sustained partnerships with local stakeholders and community representatives

Remediation processes and channels for affected communities

Speak Up procedure accessibility

Fugro's comprehensive Speak Up (whistleblower) procedure provides channels for affected communities to raise concerns about:

• Environmental impacts from Fugro's operations or client projects
• Community welfare and safety issues
• Cultural or social impacts
• Any negative effects on community resources or livelihood

ESG due diligence integration

• Project screening: ESG due diligence of clients and projects includes assessment of potential community impacts
• Impact mitigation: Processes to identify and address potential negative impacts on communities before they occur
• Ongoing monitoring: Continuous assessment of community impacts throughout project lifecycles

Community-focused remediation

• Environmental restoration: Contributing to projects that enhance coastal resilience and ocean health for community benefit
• Collaborative solutions: Working with governments and local stakeholders to address community concerns
• Long-term commitment: Focus on solutions that provide lasting positive impacts for affected communities

Local responsiveness

• Cultural sensitivity: Local management ensuring remediation approaches are culturally appropriate and effective
• Community partnership: Building relationships that enable direct communication and collaborative problem-solving
• Stakeholder coordination: Working with relevant authorities and organizations to ensure comprehensive community support

Actions on community impacts and effectiveness

Climate adaptation and resilience projects

• Coastal protection initiatives: Providing coastal erosion studies and advice for barrier structure design to protect communities from sea level rise and extreme weather
• Flood risk management: Supporting communities with flood risk assessments and advice for inland waterways design
• Italy seagrass project: Participation in nationwide seagrass mapping initiative demonstrating unique ability to assist governments and local communities in enhancing coastal resilience and ocean health

Ocean and environmental health

• Biodiversity monitoring: Comprehensive habitat mapping and environmental parameter assessment that supports community-dependent marine resources
• Ocean science partnership: Active support for UN Decade of Ocean Science for Sustainable Development and Seabed 2030, contributing to global ocean health that benefits coastal communities
• Blue carbon ecosystems: EU COASTS project focus on mangroves and seagrass ecosystems that provide community benefits through carbon sequestration and coastal protection

Infrastructure and safety solutions

• Community infrastructure: Site characterization and engineering support for infrastructure development that benefits local communities
• Safety enhancement: Providing geo-data insights that improve safety and reliability of community-critical infrastructure
• Climate-resilient development: Supporting design and construction of infrastructure that can withstand climate change impacts

Effectiveness measurement

• Stakeholder feedback: Regular engagement with government and community stakeholders to assess project effectiveness
• Environmental monitoring: Ongoing monitoring of environmental and community impacts from supported projects
• Long-term partnerships: Building sustained relationships that enable continuous improvement and community benefit

Local community integration

• Local employment: Hiring local employees who understand community needs and can facilitate effective engagement
• Cultural respect: Ensuring project approaches align with local cultural values and community priorities
• Capacity building: Supporting local capability development through knowledge transfer and collaboration

Business conduct policies and corporate culture

Core values foundation

Fugro's business conduct is built on four core values:

• We are determined to deliver
• We prepare for tomorrow
• We do what's right
• We build trust

Code of Conduct

Fugro maintains a comprehensive Code of Conduct that covers:

• Responsible business practices
• Ethical business conduct
• Human rights respect
• Environmental responsibility
• Anti-corruption measures
• Responsible tax practices

Corporate culture initiatives

Based on values and code of conduct, Fugro has initiatives in place that drive desired attitude and behavior:

• Safety culture: Programs focused on fostering safety culture across global operations
• Leadership culture: Leadership development and culture enhancement programs
• Diversity, equity, and inclusion roadmap: Systematic approach to building inclusive culture
• Ethical decision-making: Training and guidance on ethical business practices

Global consistency with local adaptation

• Unified standards: Consistent application of business conduct policies across 52 countries
• Local understanding: Offices predominantly staffed and managed by local employees ensuring cultural sensitivity
• Regulatory compliance: Adaptation to local laws while maintaining global ethical standards
• Cultural respect: Understanding and respecting local business procedures, culture and traditions

Management of relationships with suppliers

Supplier relationship approach

• Long-term partnerships: Focus on building sustained, collaborative relationships with suppliers
• Fair payment terms: Providing fair payment terms to support supplier operations and worker conditions
• Large supplier base: Managing relationships across suppliers in the many countries where Fugro operates

ESG integration in supplier management

• Comprehensive ESG criteria: Specific attention to environmental, social and governance factors in supplier selection and ongoing collaboration
• Labor practices: Evaluation and monitoring of supplier labor practices and worker treatment
• Health and safety: Ensuring suppliers meet health and safety standards
• Environmental performance: Assessment of supplier environmental impacts and practices
• Anti-bribery and corruption: Implementation of anti-corruption measures in supplier relationships

Supplier development and monitoring

• Capacity building: Working with suppliers to enhance their practices and capabilities
• Regular assessment: Ongoing monitoring of supplier performance against ESG criteria
• Collaborative improvement: Joint efforts to improve sustainability and ethical practices throughout the supply chain
• Due diligence processes: Comprehensive evaluation of suppliers before engagement and during ongoing relationships

Local supplier engagement

• Cultural understanding: Local management ensuring appropriate supplier engagement practices
• Regional expertise: Understanding local business procedures and supplier ecosystems
• Community impact: Considering local economic impact of supplier selection and relationship management

Prevention and detection of corruption and bribery

Anti-corruption framework

• Code of Conduct: Comprehensive anti-corruption and anti-bribery provisions as part of Fugro's Code of Conduct
• Global application: Consistent anti-corruption standards applied across all 52 countries of operation
• Supply chain integration: Anti-bribery and corruption measures specifically included in supplier relationship management

Detection and reporting mechanisms

• Speak Up procedure: Comprehensive whistleblower procedure providing channels for reporting corruption and bribery concerns
• Multiple reporting channels: Various avenues for employees, suppliers, and other stakeholders to report unethical conduct
• Investigation processes: Established procedures for investigating corruption and bribery allegations

Prevention measures

• Training and awareness: Education on anti-corruption policies and ethical business practices as part of corporate culture initiatives
• Due diligence: ESG due diligence processes include assessment of corruption risks in business relationships
• Values-based culture: Corporate culture initiatives focused on ethical decision-making and building trust

Global compliance

• Local adaptation: Understanding and compliance with local anti-corruption laws while maintaining global standards
• Cross-border operations: Managing corruption risks across diverse political and economic environments
• Professional standards: Commitment to maintaining high standards of responsible business conduct across global operations

Incidents of corruption or bribery

Confirmed incidents

In 2024, there were no confirmed incidents of corruption or bribery.

Convictions and fines

In 2024, there were no convictions or legal cases for violations of anti-corruption and anti-bribery laws, therefore no fines resulted from violations.

Disciplinary actions

No employees were dismissed or disciplined due to corruption or bribery incidents in 2024.

Contracts terminated

There were no incidents or violations of Fugro's anti-corruption policy that resulted in the termination or non-renewal of contracts with business partners. No further actions were necessary due to breaches in procedures and standards related to anti-corruption and anti-bribery.

Investigation and speak-up procedures

Fugro has established a Speak Up procedure, a confidential and secure reporting channel available to all stakeholders, including employees, contingent workers, customers, suppliers, value chain workers, and community members. The Speak Up procedure is accessible through multiple channels, including an independent external reporting line operated by Convercent, which is available 24/7, online and by telephone, in over 50 languages. All reports are handled with confidentiality and fairness, following a clear internal investigation process overseen by the Corporate Integrity Committee.

The Corporate Integrity Committee, consisting of the Group Director of Human Resources, Director of Internal Audit and General Counsel / Chief Compliance Officer, meets every 4-6 weeks to review cases, conduct investigations, and take necessary actions. Investigations by the Corporate Integrity Committee are separate from the chain of management involved in the case.

Fugro enforces a strict non-retaliation policy to protect anyone who raises concerns in good faith, including whistleblowers. Reports are treated with the highest level of confidentiality, and investigations are conducted promptly, fairly, and in alignment with the European Whistleblower Protection Directive.

In 2024, Fugro received 44 reports through its Speak Up procedure regarding potential violations of the Code of Conduct or its underlying policies. All reports were thoroughly investigated by the Corporate Integrity Committee, and where necessary, appropriate organizational and/or disciplinary measures were implemented.

Political influence and lobbying activities

Political engagement approach

Fugro has an active role in several industry associations, professional organisations, groups, and forums related to our industry to support its business goals and strategy on issues such as the energy transition, offshore wind development, ocean health, coastal resilience, sustainable shipping and data sharing solutions. Moreover, Fugro's CEO Mark Heine was present at various high level ministerial meetings on the energy transition, critical raw materials and climate change adaptation, among other topics. Fugro was a partner of the Ocean Pavilion during COP29 in Azerbaijan recognising the importance of the ocean in climate and supporting efforts to expand ocean science and improve ocean health worldwide. Through its partnership in the IOC – UNESCO Ocean Decade programme, Fugro provides ongoing and tangible support to these goals.

In 2024, Fugro became a patron of the UN Global Compact Ocean Stewardship Council. As a patron Fugro joined the Ocean Leaders' Group, a high-level body that shapes the coalition's strategic direction and policy recommendations. The coalition aims to bring the business voice to UN processes, broaden principle-based sustainable ocean business, advance the business community's leadership towards the 2030 Agenda, drive science-based ocean-climate action, and scale up blue finance. In 2024 the coalition called on the International Maritime Organisation (IMO) to support a global regulatory framework that, in a just, inclusive, ambitious and timely manner, accelerates the use of low- and zero-emission fuels.

Ethical standards and guidelines

In accordance with Fugro's Code of Conduct, no financial or in-kind political contributions were made. Fugro's limited lobbying activities are aligned with Fugro's strategy to support the energy transition and climate change adaptation, and are overseen by the CEO and General Counsel.

Political contributions

No financial or in-kind political contributions were made in 2024.

Lobbying expenditure

Only in the US, Fugro hired a professional lobby consultancy firm to support Fugro in monitoring and engaging on federal legislative, regulatory and policy matters related to Fugro's core business activities. In general, these activities are in support of policies and regulations that support the US' energy transition and climate mitigation goals.

Lobbying expenditure:

These efforts in 2024 were primarily focused on legislation and policies related to the acceleration of offshore wind development, funding of coastal infrastructure and resiliency, and development of a regulatory framework to support the use of uncrewed surface vehicles in US waters. These efforts are aligned with Fugro's purpose and support our energy transition, sustainable infrastructure, and climate change adaptation strategies.

Regulatory engagement examples

Fugro engaged with the Dutch Ministry of Infrastructure and Water Management for effective regulation for uncrewed surface vessels (USVs). On a European level, Fugro provided feedback on the EU Monitoring, Reporting and Verification of ships' emissions (MRV) to the European Commission, especially to clarify the applicability of the MRV to different types of offshore vessels. In recognition of Fugro's proactive contributions across various platforms, Fugro has been invited to participate in a European Commission workstream on developing future guidelines for MRV and ETS implementation for offshore vessels. The workstream is part of the European Sustainable Shipping Forum (ESSF), a platform established by the European Commission to facilitate dialogue, exchange technical knowledge, and coordinate efforts among the Commission, Member States' authorities, and maritime transport stakeholders.

Fugro has regular contacts with Dutch embassies in various key markets to provide input and support for trade missions. Fugro also interacts with various embassies in the Netherlands on roundtable sessions and events on policy related topics. We also have frequent contacts with embassies of the United Kingdom, Australia and the US.

Trade association memberships

Fugro is a member of a wide variety of associations on a global, regional and national level supporting its strategy and business goals such as sustainable development, the energy transition, ocean health, coastal resilience, sustainable shipping and data sharing solutions. Fugro has board positions in a number of these associations, including the Association of Dutch Suppliers in the Offshore Energy Industry IRO (Mark Heine, Fugro's CEO, serves as chairman), National Offshore Industries Association USA (NOIA) and International Marine Contractors Association (IMCA).

Fugro engages in a range of activities and interactions with various other associations through its memberships. These memberships of associations include Netherlands Business Council (VNO NCW), Royal Dutch Shipowners Association (KVNR), CIO Platform, Wind Europe, Global Wind Energy Council, Renewable UK, The Netherlands British Chamber of Commerce (NBCC), Energeo, American Society of Civil Engineers (ASCE), Association of International Energy Negotiators (AIPN), Marine Technology Society (MTS), The Royal Institute of Navigation, The Hydrographic Society of America (THSOA), Asia Wind Energy, Australasian Hydrographic Society, Institute for Marine Engineering, Science and Technology (IMAREST), Institute of Navigation (ION), International Cable Protection Committee, SubOptic, and Society of Underwater Technology.

Focus areas

Fugro's lobbying and advocacy focus areas include:

• Energy transition
• Offshore wind development
• Ocean health and ocean science
• Coastal resilience
• Sustainable shipping and low- and zero-emission fuels
• Uncrewed surface vessels regulation
• Data sharing solutions
• Climate change mitigation and adaptation

Payment practices

Supplier payment approach

• Fair payment terms: Providing fair payment terms to suppliers as part of long-term relationship building
• Timely payments: Commitment to timely payment practices supporting supplier operations and their ability to maintain good working conditions
• Supply chain support: Payment practices designed to support supplier financial stability and worker welfare

Working capital management

• Efficient billing: Enhanced billing and collections resulting in significant working capital reduction
• Days revenue outstanding (DRO): Maintained at 74 days in 2024 (2023: 75 days), indicating balanced approach to collections
• Working capital optimization: Strict working capital management while maintaining fair supplier payment terms

Financial transparency

• Regular payments: Consistent payment practices across global operations
• Clear terms: Transparent payment terms and conditions in supplier agreements
• Relationship focus: Payment practices designed to support long-term supplier partnerships rather than short-term cash optimization