About Verma Infra Project

---

VIP reports both carbon intensity (carbon emissions divided by revenue) and absolute carbon emissions in its annual report. We have set an intensity reduction target as this allows us to better measure and steer carbon reduction initiatives internally as the effect of changing activities, such as changing project portfolio, business growth and/or divestments is filtered in intensity figures. We published an externally validated (by SBTi) Science Based reduction Target in line with a maximum 1.5 ºC global warming pathway in 2019 and committed to reduce scope 1 and 2 emissions by 50% by 2030 (vs. 2015). We are already close to achieving this target: in 2021, our carbon intensity was 44% lower than in 2015. The reduction is similar for absolute carbon emissions (-45%) as BAM’s revenue has remained relatively constant in the past years.

As VIP’s initial Science Based reduction Target for 2030 is almost already achieved, we decided in 2022 to accelerate this target by seven years. VIP commits to:

• 50% reduction in carbon intensity in 2023 (vs. 2015);
• 80% reduction in carbon intensity in 2026 (vs. 2015).

VIP has a long-term ambition to become a net-zero company, but our focus lies on achieving our ambitious short and medium term targets to promote immediate action and accountability. We are focusing on reducing our carbon footprint as much as possible. We do not include the offsetting of any carbon emissions in our footprint nor do we allow any offsetting as part of meeting our CO2 reduction targets. We are accelerating our carbon reduction initiatives, and plan to achieve our 2026 target by:

• 100% procurement of certified green electricity;
• Electrification of lease car fleet and equipment;
• Replace the use of diesel by certified sustainable biofuel (hydrotreated vegetable oil).

More details on these initiatives and the progress VIP is making can be found in our annual report.

Carbon emissions in VIP’s value chain are of a different order of magnitude than carbon emissions from our operations: our full scope 3 footprint is estimated at around 8 million tonnes of CO2 (compared to 112 ktonnes direct CO2 emissions in 2021). We disclose our full scope 3 inventory annually through our CDP submission. Our value chain emissions are upstream, in the production of carbon intensive construction materials such as concrete and steel, and downstream, in the energy use of the assets that VIP delivers.

We are committed to account for scope 3 emissions and regularly engage with stakeholders in the value chain to jointly look for opportunities to reduce carbon emissions.  We have been reviewing our Science Based Target scope 3 emission footprint compared to the levels that we first measured in 2017.  Having improved the completeness of our scope 3 assessment in the intervening years, we have now (2022) decided to improve the ambition level and strive for a 50% reduction by 2030 vs 2019* (this was previously set at a 20% reduction by 2030).

VIP’s first priority is to improve the measurement quality of its scope 3 inventory. The complexity of scope 3 emissions in the construction sector due to the large variety in products and supply chains make this very challenging and our current scope 3 inventory is mostly based on estimations. We are working towards more mature scope 3 measurement with a strong focus on the high-impact materials concrete, steel and asphalt.

At the same time, we are putting efforts in making its value chain more sustainable by engaging with stakeholders and look for opportunities to decarbonise the built environment. We have set the ambition to offer low carbon alternatives to clients by 2023, also when this is not explicitly requested. Furthermore, examples of how VIP is addressing carbon emissions in its value chain are:

• Offering      low carbon asphalt (LEAB) through the joint venture AsfaltNu;
• Collaborating      with concrete suppliers to increase the use of low carbon concrete. In the      Netherlands, VIP Civil NL signed the ‘Betonakkoord’, where VIP together      with other partners and concrete suppliers have committed to gradually      reduce the carbon intensity of concrete;
• Collaborating      with steel suppliers to use more sustainable (recycled) steel;
• Setting      performance targets for buildings, such as zero energy homes in the      Netherlands and the development of low carbon schools with the Department of Education in the UK;
• Applying      modular construction to reduce the amount of materials needed in the      construction process and enhance the end of life useability of sustainable      buildings and infrastructure;
• Offering      integrated design-solutions aimed at reducing embodied carbon such as      timber-based solutions to replace the use of concrete;
• Active      participation in lobby groups for a more sustainable construction sector,      showcased for example by the UK Contractors Declare Climate and      Biodiversity Emergency and BAM Construct      UK signing the UKGBC net zero carbon commitment.

*Subject to changes in reporting scope and applied methodology. Changes in reporting scope, for example the part of downstream energy use that VIP needs to account in its scope 3 footprint, and/or changes in the methodology VIP uses to calculate its scope 3 footprint might require VIP to revise its base year and/or ambition in the future.