Biodiversity and ecosystems

ESRS 2 SBM-3; ESRS E4-1

The construction industry has a significant impact on biodiversity and ecosystems worldwide, particularly along the upstream value chain. This is especially evident in the extraction of raw materials for the production of building materials. The use and conversion of land in construction projects poses a major challenge to global flora, fauna and funga. At the same time, soil sealing results in the loss of essential soil functions, which in turn can affect natural habitats and put species diversity at risk – especially in biodiversity-sensitive areas.

On the other hand, the construction industry also offers numerous opportunities to make a positive contribution. Sustainable planning and targeted renaturation actions can create new habitats for flora, fauna and funga, and innovative approaches such as sustainable infrastructure, the conscious use of eco-friendly materials and minimising soil sealing help protect natural ecosystems and promote biodiversity in the long term.

STRABAG is exposed to both risks and opportunities arising from the interaction between its business activities and biodiversity conservation. In the face of global environmental change and stricter legal requirements, precise management of these factors is becoming increasingly important to mitigate biodiversity-related risks. The materiality assessment and the site-specific risk analyses serve as a starting point for a future resilience analysis of the business strategy and business model.

In Germany, Austria and Switzerland, 54 of STRABAG’s sites are located in biodiversity-sensitive areas and have a negative impact on the local species diversity. For this purpose, sites are defined as any fixed place of business or construction site with a duration of more than 12 months. The impact assessment included asphalt mixing plants, concrete mixing plants, landfills, emulsion mixing plants, gravel and sand pits, recycling and recovery plants, quarries, ballast pits, workshops and cement plants. A breakdown of the sites based on the identified impacts and dependencies, as well as the ecological condition of the areas they are located in, is not yet available, as the biodiversity-related data foundation is still being developed. As part of the materiality assessment, no significant negative impacts related to land degradation or desertification were identified.

Policies

ESRS E4-2

The environmental and energy policy signed by the STRABAG SE Management Board, which applies to the entire Group, sets out the principle of protecting ecosystems and preserving habitats for humans and animals. The document establishes commitments for several topics identified in the materiality assessment, including the efficient use of land within the company’s sphere of influence and the avoidance of deforestation along supply chains. Other key factors addressing biodiversity loss and ecosystem degradation, as outlined in the environmental and energy policy, include the mitigation of environmental and climate-related risks in our business and along the supply chain as well as the reduction of emissions and resource use through circular economy practices. Responsibility for implementing the environmental and energy policy lies with the CEO. As part of the management review of the environmental and energy management system, the document is regularly assessed for its suitability and effectiveness and adapted as needed.

In 2023, the Management Board of STRABAG SE adopted a Group-wide position paper on biodiversity. The document provides clear, practical guidance and advice on protecting biodiversity and species in construction projects. Serving as a supplementary resource to the environmental and energy policy, it raises employee awareness of biodiversity and establishes guidelines for environmentally responsible planning and construction processes. Together with the environmental and energy policy, the paper could serve as the foundation for deriving specific actions to protect biodiversity. The guidelines include minimising land use, emissions and environmental impacts, along with additional actions to reduce the impact on flora, fauna and funga during construction projects. While the position paper does not address the traceability of products, components or raw materials, it does highlight the procurement of materials from sustainably managed forests as a potential factor in improving biodiversity protection.

The social consequences of biodiversity loss, biodiversity-related transition and physical risks, invasive species and desertification are not currently addressed in either of the two documents. Site-specific actions to promote biodiversity are laid down in the respective approval notices, particularly for extraction sites, for example in the form of compensatory actions. These actions are not yet recorded on a Group-wide basis, however. As we develop our biodiversity management and conduct further risk analyses at STRABAG, we reserve the right to expand the two documents to include other material topics. The Group has no overarching directives or guidelines for operating sites in or near a protected or biodiversity-sensitive area. Similarly, there are no Group-wide policies for land use, agriculture, oceans or seas.

Actions and projects

ESRS E4-3

The following biodiversity actions are already being undertaken at STRABAG:

STRABAG, in coordination with local authorities and stakeholders, implements specific actions at its own extraction sites to minimise its environmental footprint and ensure land restoration and renaturation. Conservation-related requirements are established, tailored to each site individually, including, for example, the creation of compensatory measures such as biotopes, the implementation of regular ecological assessments and other potential actions resulting from these, as well as a land-saving use of the area to avoid unnecessary interference with nature and to prevent landscape fragmentation.

Impacts are evaluated at the outset, and compensatory measures for flora and fauna are documented in the approval plan in coordination with the relevant authorities. Monitoring is conducted at least once a year to assess the impact on biodiversity and make adjustments if necessary.

For certain construction projects, legal and regulatory requirements demand an environmental impact assessment (EIA). An environmental impact assessment ensures that potential environmental impacts are identified and assessed during the planning and design phase, allowing for the development and implementation of appropriate protection and compensatory measures. This approach is also being taken in countries outside the European Union where the Group operates, for example through environmental impact assessments for specific public- and private-sector construction projects, in accordance with the applicable laws in those regions.

In the field of transportation infrastructures in Germany, STRABAG follows a sustainable construction site concept in line with the standards set by the German Sustainable Building Council (DGNB), where biodiversity criteria are taken into consideration for certification of construction sites with a duration of more than three months. This certification takes into account compliance with biodiversity-promoting actions, such as the use of environmentally friendly technologies and processes, the minimisation of soil sealing and the consideration of local flora, fauna and funga.

An assessment of which communities experienced the most material negative impacts due to construction projects has not been conducted. STRABAG does not currently include any compensatory measures in its action plans.

We view these efforts as a key component of our strategic direction and as an opportunity to ensure, through engagement with all relevant stakeholders, both internal and external, that our actions are effective in the long term and aligned with our biodiversity targets.

Targets

ESRS E4-4

STRABAG has not yet defined any quantitative targets for biodiversity and ecosystems but is working to integrate this topic across the Group. Until now, the focus of sustainability management has been primarily on governance, climate and social aspects. A key challenge in this process is measuring biodiversity, especially considering the large number of sites.

Metrics

ESRS E4-5

The procedures for collecting specific impact metrics related to biodiversity, which are currently under development, are based on internationally recognised tools such as the WWF Risk Filter and the Integrated Biodiversity Assessment Tool (IBAT). STRABAG uses these tools to gain an overview of sites that are in or near biodiversity-sensitive areas. These tools allow for the identification of site-specific risks and will enable a systematic investigation of the business model’s resilience to biodiversity risks in the future.

As part of the establishment of a biodiversity management system, work is underway to create an appropriate set of metrics to capture biodiversity performance in a meaningful and practical way in the future.

The internal categorisation of STRABAG sites by impact type was assigned to a WWF Biodiversity Risk Filter (BRF) industry sector classification. For the impact type assessment (low, medium, medium-high, high), the direct impacts of the five specific indicators were analysed and averaged for each WWF BRF industry sector. The classification is based on the WWF Risk Filter methodology, where specific industries are assessed according to their potential impact on biodiversity. These assessments contribute to the overall assessment of the site type. Sites are included in the report if their potential impact is assessed as medium-high or high. Additionally, IBAT data were used to analyse overlaps with protected areas (e.g. Natura 2000, UNESCO World Heritage Sites). Some areas overlap across multiple protected area categories. In these cases, the site was considered multiple times to enable a more precise assessment of potential impacts on biodiversity. The sites were defined by type and geographical overlaps to accurately assess the potential impacts on biodiversity. The process is still in development and will be continuously refined to make the analysis even more accurate and comprehensive.

A potential extension of the analysis is planned for 2025 to include construction sites with a duration of more than 12 months, as well as operations outside Germany, Austria and Switzerland, in order to provide a Group-wide overview in the future.

Sites in biodiversity-sensitive areas