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REPORT
Real Estate is much more than just buildings.
At BESIX RED, ESG is not an empty narrative; it is an opportunity to create lasting value for people, the planet, and our business. By embracing sustainable practices, we preserve the environment while ensuring the well-being of our employees, clients and the communities we serve. While protability is essential to our success, a broader vision of value enables us to foster a future where people, planet, and prot thrive together.Chief Executive Ocer BESIX RED
Table of ContentsINTRODUCTION 6 ABOUT THIS REPORT 6 MESSAGE FROM THE CEO AND THE SUSTAINABILITY & ESG ADVISOR 7ABOUT BESIX RED 8 BESIX RED IN A NUTSHELL 8 OUR SUSTAINABLE VALUE CREATION MODEL 12 ESG GOVERNANCE AND STRUCTURE 14OUR ESG STRATEGY 18 A JOURNEY TOWARDS THE CSRD 18 STAKEHOLDER ENGAGEMENT AND MATERIALITY ANALYSIS 20 GENERAL COMMITMENTS AND AMBITIONS 30
SUSTAINABILITY AT BESIX RED 32COMMITMENTS FOR THE PLANET 34 Carbon Emissions (GHG) Energy Consumption Climate Adaptation Water Management Resource, Materials, Waste Management and Recycling Sustainable Building Design Air & Soil Pollution Biodiversity and Ecosystems Restoration Land Use ChangeCOMMITMENTS FOR PEOPLE 62 Employee Well-being and Satisfaction Employee Diversity, Equity and Inclusion Occupants Comfort Local Community Engagement Mobility & InterconnectivityCOMMITMENTS FOR PROSPERITY 74Business EthicsTransparency and ReportingSuppliers and Subcontractors Cybersecurity NEXT ACTIONS TO ELEVATE OUR ESG STRATEGY 82
P 6IntroductionABOUT THIS REPORTThis ESG Report outlines BESIX RED’s performance, metrics, initiatives, and accomplishments from the beginning of 2023 to June 2024. In 2023, BESIX RED conducted a single materiality matrix, followed by a double materiality analysis in 2024 to identify mate-rial impacts, risks, and opportunities within its value chain. Our methodology is based on the latest Euro-pean recommendations, including the Corporate Sus-tainability Reporting Directive (CSRD) and the Europe-an Sustainability Reporting Standards (ESRS). These directives guide our approach, enabling us to measure and communicate our performance consistently and in alignment with emerging international standards. This proactive approach not only ensures compliance with upcoming regulations but also establishes a clear strategy to address queries from external stakehold-ers and voluntary disclosure organisations. This report includes data on 29 out of the 33 proj-ects currently in the development phase. It is avail-able online only but a printed version of our report can be requested from the Sustainability & ESG Advisor, Laurent Sempot, at laurent.sempot@besixred.com. The report is only available in English.© All photos of ICONE by Foster + PartnersP 6ABOUT BESIX REDOUR ESG STRATEGY
MESSAGE FROM THE CEO AND THE SUSTAINABILITY & ESG ADVISORDear Colleagues and Partners, -mental, Social, and Governance (ESG) report.At BESIX RED, we have always prioritised sustainability and ESG criteria as -tion, both sectoral and geographical. These strategic pillars have guided our actions and contributed to our recent achievements and notable ac-quisitions.-ability journey by consolidating information across our portfolio and es-tablishing a materiality matrix aligned to the CSRD recommendations. -ability, aligning with evolving market expectations. but also underscores our dedication to fostering a more sustainable to provide practical solutions to societal and environmental challenges. We extend our gratitude to our dedicated teams and partners for their ongoing support, without which these accomplishments for a better built environment would not be possible. Together, we will continue to make progress towards a more sustainable future. Thank you for your contin-ued partnership. Sustainability & ESG AdvisorP 7SUSTAINABILITY AT BESIX RED NEXT ACTIONS
P 8About BESIX REDBESIX RED IN A NUTSHELLBESIX RED is a Pan-European real estate developer, a subsidiary of BESIX Group, one of the main Belgian construction companies founded more than a century ago and today present in 26 countries on 4 continents.For 36 years, BESIX RED has been committed to creat-ing large-scale projects in Europe, highlighting a mul-tidisciplinary team and a people-centred approach, aiming to enhance cities and promote well-being through harmonious living and working experiences, respectful of the needs of end users and the environ-ment.The pioneering spirit with which we approach each project allows us to always be at the forefront in terms of technicality, architectural concepts, well-being and sustainability.33 projects are currently under development in 19 cities in Belgium, Luxembourg, the Netherlands, France and Portugal, for a total area of 956,000 m².For more information, please visit: www.besixred.com P 8ABOUT BESIX REDOUR ESG STRATEGY
Portfolio NBVExpected sales valueReturn on equity(Average 2018-2023 : 20,7%)19European cities33Projects in development63Team membersTurnover2under development (partnerships included)KEY FIGURES2023P 9SUSTAINABILITY AT BESIX RED NEXT ACTIONS
We are present in 5 countries and 19 citiesGeographical presenceBrusselsLouvain-la-NeuveGemblouxNamurRixensartLiègeGhentHerentHasseltAalstLuxembourg CityWalferdangeBelvalKaylStrassenAmsterdamThe HagueLilleFra nceLisbonP 10ABOUT BESIX REDOUR ESG STRATEGY
We are convinced that real estate has the power and duty to bring people together and connect them to improve everyday life and living together.BESIX RED creates real estate experiences for living and working, prioritiz-ing ESG principles, client needs, and well-being.Team spirit RespectInnovationExcellence VisionMission & purposeValuesSDG Contribution Among the 17 SDGs, we have identied 13 on which BESIX RED can have a positive impact while reducing the negative impacts of its ac-tivities. We are aligning ourselves with these goals to promote sustainable and responsible development. P 11SUSTAINABILITY AT BESIX RED NEXT ACTIONS
OUR SUSTAINABLE VALUE CREATION MODELOur multidisciplinary team supports investors, partners and co-develop-ers to bring value at every stage of development. See below the six steps of our one stop shop solution and our added value, from a general perspective but also from an ESG one. From an ESG perspective, at every stage of the project development process, we strive to provide sustainable solutions to limit the negative impacts of real estate activity and increase the positive environmental and social impacts.GeneralESG• Identify opportunities across the risk spectrum• Determine how and where to add val-ue for our investors• Analysing the project’s environmen-tal, economic and social challenges and its impacts on the ecosystem and communities, via the Acquisition Committee• Assessing how we can add value to the biodiversity, neighbourhood and surrounding community• Real estate and market benchmark• Environmental / geotechnical and site evaluations• Precise budgeting and scheduling• Repositionning analysis of obsolete buildings• Evaluating the environmental, geo-technical, socio-economic impacts of the site • Precise budgeting and scheduling of all ESG assessments (Climate Risks assessments, etc.) • Analysing redevelopment of existing real estate (renovation/reuse)• Design team selection• Governmental approval coordination• Architectural and engineering con-tract negotiation• New technology cost / benet eval-uation• Dialogue with local communities• Integrating sustainability, energy, wa-ter, waste, circular, and technologies management considerations• Introducing key design strategies and procurement processes that help cre-ate an equitable and sustainable built environment and a thriving communi-tyP 12ABOUT BESIX RED OUR ESG STRATEGY
• Cost-ecient construction contract-ing• General contractor negotiation• Creating a resource inow and out-ow management (Promote Circular-ity)• Challenging suppliers on materials (Bio & Geo sourced) and methods that meet environmental standards• Synergy with the dierent entities of BESIX Group (and outside the Group when/where applicable)• Ensuring fair labour practices and safe working conditions• Ensuring cleanliness and proper site management for the neighbourhood residents • Smooth collaboration with contractor to ensure successful delivery on time• Delivery and closeout with minimal re-marks• Ensuring the building meets environmen-tal standards, achieves expected energy performance, and manages construction waste responsibly• Assisting in technical building manage-ment• Ensuring compliance with health and safety standards and fulll commit-ments to the local community• Dedicated Internal Technical Team • Marketing Development Strategy and Public Relations • • Accounting / Control / Reporting• Schedule / Budget Management • Integrating sustainability from conception to completion • Legal SupportP 13SUSTAINABILITY AT BESIX RED NEXT ACTIONS
ESG GOVERNANCE AND STRUCTURE We strongly believe that a leadership commitment is essential for the success of our ESG Policy. Execu-tives must actively support ESG initiatives, promote them towards employees and external stakeholders, implementation. Our ESG Committee relies on various bodies to ensure that our ESG policy is fully consistent with our corpo-rate strategy and BESIX Group’s ambitions.• Approves the ESG strategy, makes recommendations to the Sus-tainability & ESG Advisor, and ensures that projects align with our business strategy and market needs The ESG strategy is on the Executive Committee agen-da min. 6 times a year Executive Committee• Identies and mitigates the ESG risks, enhances asset value, and evaluates stakeholders’ expectations • Presents the project to the Executive Committee for nal deci-sion Depending on acquisition opportunitiesAcquisition CommitteeOperational Team • Implements the best possible sustainable, social, and gover-nance practices throughout the entire lifecycle of the real estate projectP 14ABOUT BESIX REDOUR ESG STRATEGY
Interact• Ensures the ESG commitments, methods and processes, are embedded in all BESIX Group’s entities• Collects data and initiatives of each entity• Ensures compliance and oversees all group initiatives related to dened ESG Objectives Min. 3 times per yearESG Board• Ensures that BESIX RED contributes to BESIX Group’s ESG ambitions and objectives Board Meetings shall be held at least once every quar-ter but may be held at any time in case of urgent circumstances Board of Directors• Ensures our projects align closely with EU Taxonomy recommen-dations and adopt the best market practices • Advises from design to construction, mitigates negative impacts, and amplies positive impacts on all our material issues Min. 2 times per year. External experts are currently being selected ESG Advisory BoardESG Committee• Ensures the implementation of our BESIX RED’s ESG strategy, roadmap and ambitions, both at corporate and project level• Makes decisions that aect sustainability choices and the feasibility of the project• Ensures that our ESG policy is fully consistent with our corporate mission, vision and values • Gabriel Uzgen, Chief Executive Ocer • Laurent Sempot, Sustainability & ESG Advisor• Laurent Maes, Chief Financial Ocer• Caroline Verkest, Chief of Sta• Christian Chartz, MEP Director Chief Operating Ocer, Communication Director, Country Director 2 times per yearP 15SUSTAINABILITY AT BESIX RED NEXT ACTIONS
FranceNeutelings Riedijk ArchitectsFoster + PartnersSaraiva + AssociadosBIG & BarcodeColdefyLille-tively combine operational expertise with local in-sights, ensuring that we maintain high standards and deliver exceptional value in all our projects.Country DirectorBelgiumChief ExecutiveOcerCountry DirectorLuxembourgCountry DirectorFranceCountry DirectorPortugalCountry DirectorNetherlandsESG Matrix organisation Chief FinancialOcerSustainability & ESG AdvisorP 16ABOUT BESIX REDOUR ESG STRATEGY
B2AiPerry WeberNuno Léonidas ArquitectosReichen & RobertURBAN PLATFORMArch. Moreno & M3 ArchSaraiva + AssociadosArquitectosEgmondAxentSteinmetzdemeyerSyntaxe & DDS+ Werner ViguierLilleGhentInvestor AdvisoryDirectorLEGALPan-EU Dev. DirectorLarge scale projectsPan-EU Dev. DirectorResidentialTechnical DirectorPan-EU Dev. DirectorRetail & ServicesChief Operating OcerGeneral SecretaryMarketing & CommunicationManagerP 17SUSTAINABILITY AT BESIX RED NEXT ACTIONS
• the category at the MIPIM Awards 2020• The Cosmopolitan receives special mention from the jury of the International -ings into housing • Casa Ferrero named + at the CBRE Awards 2021 • Sluishuis wins at the 2022 European Residence Awards Our ESGstrategyOUR JOURNEY TOWARDS THE CSRDBESIX RED has always embraced a responsible and sustainable approach in its business operations. The European Green Deal and initiatives like the CSRD, Taxonomy, and Nature Restoration Directive have in-spired us to further innovate in designing sustainable buildings. While our commitment to ESG principles goes back years, 2023 was a pivotal year in which we began to formally structure, collect data, and report focus on environmental, social, and governance con-cerns, embedding these principles at the heart of our operations.20202021 2022P 18ABOUT BESIX REDOUR ESG STRATEGY
• Sluishuis wins at the MIPIM Awards 2023• ICÔNE, Winner at the LuxReal & Paperjam+Delano Business Club Real Estate Awards 2023 • ICÔNE gets a 5-star award as in the 2023-2024 European Property Awards• Adoption of ESG frame-works: SDGs, Paris Agreement, BREEAM, WELL, SmartScore, EPC, GRESB... • Elaboration of our ESG Strategy, Assessment, KPI and Commitments• Creation of our ESG • Anticipate the needs for the • Community-led engagement and communication plans• 1st • Consolidate our Data Collection and integrate AI tool• Evaluate our ESG results and -formance reporting and com-munication• 2nd (reporting on the year 2024)• 1st BESIX Group’s Global ESG Report, compliant with the 2025) 2023202420252026• Corporate Sustainability Reporting Directive (CSRD) - EU Directive 2022/2464• Elaboration of our (IRO Methodology) • 1st • Creation of an ESG • Conduct • (scope 1, 2, 3)• Launch of our ESG • Elaborate our ESG and for suppliers• Employee satisfaction surveyP 19SUSTAINABILITY AT BESIX RED NEXT ACTIONS
STAKEHOLDER ENGAGEMENT AND MATERIALITY ANALYSISa strong ESG strategy for the future, based on ambitious KPIs and goals aligned with the European Taxonomy, Corporate Sustainability Reporting BREEAM, WELL, EPC, etc.) and other key best practices in the industry. to thoroughly understand the challenges facing our company and the real estate industry as a whole. We then adapted our properties’ development model and approach to mitigate risks and enhance positive impacts on the natural environment and the local communities. In 2023, we started with developing a single materiality matrix and prepared the company to adopt the new CSRD reporting directive.In order to consolidate the work done for the single materiality matrix, we decided that the priorities that would come out from that work would be the starting point of the impact, risks and opportunities (IRO) assess-required by the CSRD. Following the EFRAG guidelines, we assessed each topic in the European Sustainability Reporting Standards (ESRS) list. Firstly, we focused on assessing the materiality impact of each topic. Through this process, we wanted to understand the impact of our busi-ness activities on society and the environment (impact materiality). During this phase, we highlighted that some aspects were not yet fully consid-Once we determined the topics that would fall under the impact materi-materiality, i.e. the sustainability issues that are material to the compa--us determined the threshold level for which we would consider a certain materiality assessment enabled us to evolve from 17 topics to 19 material P 20ABOUT BESIX REDOUR ESG STRATEGY
Assessment of the suered and generated impactsPriorities matrix(Single materiality)Prioritising the topics in BESIX RED’s strategyAssessing the inuence of ESG issues and relevance for our stakeholdersStakeholder mapping & engagementIdentifying material issuesSINGLE MATERIALITYDYNAMIC MATERIALITYDOUBLE MATERIALITYP 21SUSTAINABILITY AT BESIX RED NEXT ACTIONS
Phase 1: Identifying material issuesWe conducted thorough analyses of industry reports and current trends in the real estate sector (as Urban Land Institute, RICS, Observatoire de l’Immobilier Durable, etc.), and drew inspiration from recognized frameworks to select our material topics and devel-oped an analytical framework to determine our ESG ambitions. We relied on established standards such as the EU Taxonomy Regulation, CSRD, United Nations Sustain-able Development Goals (SDGs), or the Global Real Estate Sustainability Benchmark (GRESB), and highly and establish our homemade Sustainable Develop-ment Grid. These frameworks provided crucial guid-ance in identifying the most relevant and impactful issues for our stakeholders and business operations. Simultaneously, we established an internal analysis grid to assess the importance and potential impact of -ty ambitions by aligning our strategic objectives with current societal and environmental expectations. ENVIRONMENTSOCIALOccupants Comfort• Health and safety• Providing qualitative lighting, thermal and acoustic comfort• Access to nature and amenities with active designEmployees well-being and satisfaction• Work-Life Balance• Recognition and appreciation• Health and safetyGOVERNANCEBusiness Ethics• Compliance and Legal Standards• Social Responsibility• Whistleblower Protection• Financial IntegritySuppliers and Subcontractors• Supplier Code of Conduct• Ecological Construction Site CharterCarbon Emissions (GHG)• Climate change mitigation• Decarbonization• Fossil Free• Life Cycle AnalysisEnergy Consumption• Renewable energies integration• EPC level A• Nearly Zero Energy Building (NZEB) – 15%• Energy Management systemAir & soil Pollution• Indoor Air Quality Management• Volatile Organic Compounds (VOCs) Emissions• Non-polluting materialsBiodiversity and Ecosystems Restoration• Habitat Preservation and Restoration• Biodiversity Assessment• Wildlife-Friendly Development Practices• Green Roofs, Tree Planting and Urban ForestryP 22ABOUT BESIX REDOUR ESG STRATEGY
Local Communities Engagement• Communities consultation• Community needs Assessment• Ongoing partnershipsEmployee Diversity, Equity and Inclusion• Equal Employment Opportunity• Employee Engagement and BelongingBuildings recognitions• BREEAM for Environmental Assessment• WELL for enhancing occupant health and well-being• Obtain the best energy performance level (EPC)• Smartscore for Smart Monitoring Technologies, for smart buildingsTransparency and reporting• Performance Metrics and Targets• Disclosure of Material Information• Regular updates for dialogues and feedbackCybersecurity• Data Protection and Encryption• Security Awareness Training to employee• Data Backup and Recovery toolsMobility and Connectivity• Transit-Oriented Development (TOD)• Electric vehicle infrastructure• Accessibility for People with DisabilitiesClimate adaptation• Climate risks assessment• Resilient architecture• Adaptative materialsWater Management• Water Quality Monitoring• Greywater RecyclingResource, materials, waste management and recycling• Deconstruction and Reuse• Bio-sourced materials• Geo-sourced materials• Modular and Prefabricated ConstructionSustainable Building Design• Passive Design Strategies (Flexibility, Adaptability, Resilience)• Indoor and Outdoor Environmental Quality• Continuous Improvement and MonitoringLand use change• Mixed-Use Development• Impact Assessments (Economic, Environmental, Social)P 23SUSTAINABILITY AT BESIX RED NEXT ACTIONS
Clients & end-users• Satisfaction and quality of services• Comfort & well-being feeling • Safety• Customized solutions• Transparent communication and after-sales support• Innovation, hybridity, services and amenities• Social Diversity and inclusion • Flexibility• Accessibility• Mobility & ConnectivityBusiness partners (Suppliers, Contractors, Architects, Engineering oces, etc.)• Direct communication• Transparency and open dialogue• Long-term relationships• Site safety• Understanding needs• Quality-oriented mindset• Innovation and solutions minded• Sustainable approach at each development stage• Co-construction and collaborative approachLocal Communities • Direct consultation• Transparent dialogue• Project monitoring through regular communication and info sessions• Contribution to local economic development (ex: job creations)• Responsible management of social and environmental impacts (such as noise, air, soil pollution, biodiversity, social activities, etc.)Investors & Financial partners• Long-term solvency and reliability• Compliance with sustainability standards and social responsibility• Transparency and clear communication • Adherence to timelines and budgets• Transparent and frequent dialogue• Exemplary business ethics to ensure a lasting trust-based relationshipP 24ABOUT BESIX REDOUR ESG STRATEGY
• Direct dialogue• In person and virtual meetings• Newsletters • Communication through brokers• Welcome pack at provisional acceptance (residential)• Social Media communication • Dedicated project websites with dedicated line/emailFrequently• Continuous dialogue between technical teams and suppliers• Digital and in-person meetings• Active participation to fairs, conferences, industry meetings• Social media communication• Supplier Code of Conduct and eco-charter integrating ESG require-mentsFrequently• Direct dialogue • Organisation of co-construction workshops• Information sessions with local associations and neighborhood com-mittees• Proactive organization of public information markets• Social channels• Press conferences and media communicationRegularly, and through-out major steps of every development project • Press releases• Company newsletter• Up to date information on website and LinkedIn• Direct dialogue with regular meetings• Meetings at industry and networking eventsFrequently throughout major steps of the de-velopment projectBy engaging various categories of internal and external stakeholders, we have not only been able to under-stand their needs and expectations but also identify communities-led approach also promotes mutual understanding and proactive issue resolution. Ulti-mately, we are convinced that strong relationships with all our stakeholders are essential for the long-term success of our projects and relationships. Phase 2: Stakeholder Mapping & EngagementBESIX RED and/or its team members are also members, sponsors or contributors to various associ-ations and multi-stakeholder forums primarily aimed at sharing information and best practices.P 25SUSTAINABILITY AT BESIX RED NEXT ACTIONS
Public authorities• Transparent communication and information sharing • Regular project updates• Trustworthy, honest, and enduring relationship• Collaborative project development process to meet the needs of the local communityBESIX RED’s team members• Safe and healthy working conditions• Fair and equitable compensation• Professional development and career opportunities• Recognition and appreciation of their work• Open and transparent communication• Inclusive and collaborative corporate culture• that suits both sidesBESIX RED’s Board of Directors• Integration of ESG criteria into corporate strategy• Monitoring and management of ESG-related risks• Transparency and regular communication on ESG performances• Commitment to environmental and social sustainability• Adherence to strong ethical and governance standards• Accountability for ESG impacts and outcomes• Leadership in promoting diversity equity, and inclusion• Alignment of business operations with global sustainability goals• Innovation in sustainable practices and technologiesBESIX Group & subsidiaries• Adherence to the Group ESG policies and standards• Integration of ESG considerations into operational decisions• Reporting on ESG performance and impacts• Collaboration on sustainability initiatives and innovation• Sharing knowledge and best practicesIndustry players including Associations and NGOs• Adoption of sustainable and responsible business practices• Reduction of environmental impacts• Improvement of working conditions and respect for workers’ rights• Transparency in ESG reporting• Positive contribution to local communities• Sharing best practices and information• Support industryP 26ABOUT BESIX REDOUR ESG STRATEGY
• Direct dialogue (digital, in person)Regularly, and through-out major steps of every development project• Direct and open-minded dialogue • Regular team meetings (info session & site visits)• Employee Intranet• Internal newsletter• Team events• Employee ESG Education programme sessions (Digital or in person with experts)2 or 3 team events are organized per year• Regular in person meetings• Direct emailing• Creation of ESG Executive Committee with the CEO• Creation of an ESG Advisory Board Once every quarter but may be held at any time in case of urgent circumstances• BESIX RED’s CEO sits on BESIX Group Executive Committee• Participation in cross-departmental committees within the Group• Regular in person dialogue between ESG Managers• Group ESG Board participation • Contribution to the BESIX Foundation activities Frequently• Participation in guest lectures at academics• Financial support to the industry initiatives such as “Lunch with an Architect”, ULI,...• Participation and representation in various regional industry associations: UPSI-BVS, ULI, PropTech Lab, LuxReal, LuxPropTech...• Active member of GRI PortugalFrequentlyP 27SUSTAINABILITY AT BESIX RED NEXT ACTIONS
interviews with key stakeholders to understand their perspectives on each issue. Addition-ally, we use questionnaires and surveys to gather a diverse range of viewpoints. By analysing the results from these engagements, we identify and prioritise the most critical issues that matter most to our stakeholders. This process ensures that our strategies and actions are aligned with their expectations and concerns.We place issues on a Matrix that considers two main factors: their importance to stakehold-ers and their impact on the company. This (single materiality) matrix is validated through discussions with internal stakeholders to ensure it aligns with our strategic vision. Feedback received is carefully reviewed to revise and adjust the matrix as needed, ensuring our pri-and stakeholders. By collecting both quantitative and qualitative data, we analyse the poten-tial impact of each issue using specialized tools. This enables us to evaluate associated risks potential impact, ensuring that our strategies and decisions are informed by comprehensive insights into their implications for all stakeholders involved.Phase 3: Assessing the influence of ESG issues and relevance for our stakeholdersPhase 5: Priorities Matrix (single materiality) Phase 4: Prioritising the topics in BESIX RED’s strategyP 28ABOUT BESIX REDOUR ESG STRATEGY
We conduct a double materiality assessment, evaluating both the impact - Phase 6: Double materiality: Assessment of the suffered and generated impactsLikelihood and SeverityLikelihood and nancial eectsCriticalSignificant ImportantInformativeMinimalMinimal Informative Important Significant CriticalBusiness EthicsTransparencyand ReportingOccupantsComfortCarbon Emissions (GHG)Energy ConsumptionClimat AdaptationAir and Soil PollutionLand use changeWater ManagementSustainable BuildingDesignBiodiversity andecosystem restorationResource, materials, waste management and recyclingLocal Community EngagementEmployee Di-versity, Equity and InclusionEmployee well-beingand satisfactionMobility & InterconnectivitySuppliers andSubcontractorsCybersecurityBuildings certificationsEnvironemental GovernanceSocialP 29SUSTAINABILITY AT BESIX RED NEXT ACTIONS
GENERAL COMMITMENTS & AMBITIONSThe double materiality approach has reinforced the relevance of our ESG commitments while uncover-ing new opportunities for action. This methodology key issues are aligned with industry standards, al-lowing us to establish a robust ESG strategy in line with our beliefs. Furthermore, it has led to the cre-ation of an , containing clear and ambitious KPIs and objectives particularly in the 3 areas where we have the greatest impact: Planet - People – Prosperity.PLANET• Contributing to climate change mitigation by reducing our carbon emissions (Scope 1,2,3) • Adapting our projects to climate change predictions• Contributing to the sustainable use and protection of water • Contributing to a circular economy and promoting decarbonized solutions • Contributing to pollution prevention and control • Contributing to the protection and restoration of biodiversity and ecosystems • • Creating innovative and sustainable design • Reducing the environmental impact of our team• Reduce carbon emissions by 42% for Scope 1 and 2 by 2030• • Aim to be fossil free and use renewable energy technologies • • • Receive a Life Cycle Analysis (LCA), a Physical Risks Assessment and Climate Change Resilience Measures • Perform a water cycle analysis from construction to building use • Maximise the Reuse and Geo & Bio-sourced materials • Adopt measures to improve quality of air, noise, and light and decrease dust and pollutant emissions during construction works • Reintegrate the living into the city and renaturalise the built environment• Embrace sustainable design, which reduces the environmental impact from conception to useP 30ABOUT BESIX REDOUR ESG STRATEGY
PEOPLE PROSPERITY• Focusing on the well-being and comfort of occupants• Engaging with communities and stakeholders to positively impact the neighbourhood• Measuring the social and economic value of our development projects • Promoting proximity and soft mobility • Focusing on employee satisfaction, health and security• Annually evaluate employee satisfaction and achieve 80% satisfaction starting from 2024• Participating annually in the social activities of BESIX Foundation• • A community consultation process is systematically conducted to adapt our projects to the neighbourhood’s needs• Our mixed-use projects are subject to a social and economic impact analysis • Our projects promote soft mobility with the installation of electric charging points for bikes and cars• Abiding by all applicable laws, regulations, and industry standards in real estate• Aligning our objectives and projects with the EU Taxonomy• Providing Non-Financial Annual report aligned with the CSRD, with clear and comprehensive information about projects, risks, opportunities and impacts• Making business ethics a pillar of sustainability in our activity • Promoting sustainable behaviour throughout the value chain in the sector, and responsible purchasing policy integrated into all supplier contracts• All employees will train in business ethics and corruption in 2025• All stakeholders should sign the ethics charter • a ESG report• All our projects will be based on the Taxonomy criteria and meet KPI’s of our own ESG development ambitions, in 2026• Our major service providers and suppliers will have signed the sustain-able performance charters in 2025• We are aiming for GRESB’s 5-star rating in 2026P 31SUSTAINABILITY AT BESIX RED NEXT ACTIONS
Sustainability at BESIX REDThe next chapter will examine the relevance of each ESG issue included in BESIX RED’s double materiality matrix, provide a brief overview of the current situa-tion, and outline the planned actions to be incorporat-ed into BESIX RED’s long-term roadmap.-sulting from the consolidation of data from projects in development, available at the time of writing. This ex-ercise was carried out with the collaboration of exter-nal sustainability experts. Additionally, since the proj-them have a uniform methodology for data collection. Consequently, these data may not be fully compara-ble. The selection of a data collection and analysis tool, planned for 2025, will be a major challenge for BESIX RED’s ESG strategy.PLANETPEOPLEPROSPERITYPLANET PEOPLE PROSPERITYP 32ABOUT BESIX RED OUR ESG STRATEGY
Carbon emissions (GHG)Employee well- being and satisfactionBusiness ethicsEnergy consumptionEmployee diversity, equity and inclusionTransparency and reportingClimate adaptationOccupants comfortSuppliers and subcontractorsAir and soil pollutionLocal community engagementCybersecurityWater management Mobility & interconnectivityBuildings certicationsLand use changeBiodiversity and ecosystems restorationResource, materials, waste management and recylcingSustainable building designP 33NEXT ACTIONSSUSTAINABILITY AT BESIX RED
COMMITMENTS FOR THE PLANETEU Taxonomy environmental objectivesThis section highlights the ongoing key actions and planned environmental objectives aimed at directly enhancing the environmental performance of BESIX RED’s activities, thereby supporting the company’s overall value creation. All our material issues are linked, in one way or another, to the environmental objectives of the European Taxonomy. To provide a harmonized framework and facilitate the analysis and compari-son of ESG performances, we have categorized our material challenges according to the European Sus-tainable Reporting Standards (ESRS). This enables the provision of comparable and coherent information, enhancing readability and facilitating the comparison sectors.Sustainable use and protection of water and marine resourcesPollution prevention and controlClimate change adaptationClimate change mitigationTransition to a circular economyProtection and restoration of biodiversity and ecosystemsP 34ABOUT BESIX RED OUR ESG STRATEGY
(ESRS)Promote positive environmental impacts and prevent significant harm to the environmentESRS E3 Water and marine resourcesESRS E2 PollutionESRS E1 Climate changeESRS E5 Resource use and circular economyESRS E4 Biodiversity and ecosystemsCarbon emission (GHG)Energy consumption Climate adaptation Air and soil pollutionWater managementLand use changeBiodiversity and ecosystems restorationResource, materials, waste management and recyclingSustainable building designP 35NEXT ACTIONSSUSTAINABILITY AT BESIX RED
AMBITIONSNEXT ACTIONSIN 2023by 2030by 20501Elaboration of BESIX RED standard LCA methodology2 In addition to the LCA, perform material guidance in developments to lower the Embodied GHG Emissions3 Elaboration of decarbonisation plan4Fleet: fully electric by 2030 and alternative mobility package favouring slow mobility. Strengthen business travel policy for airline travels reduction scope 1 & 2reduction scope 3 reduction scope 1 & 2 reduction scope 3 67%of projects underwent an LCA100%of the developments will do an LCA by 2026255tCO2 emissionsCARBON EMISSIONS - GHG (ESRS E1)P 36ABOUT BESIX RED OUR ESG STRATEGY
Driven by European climate ambitions and regulations, BESIX RED has reporting obligations on carbon accounting performance. Each year, the number of targets to be monitored will increase or new targets will be added. The table below gives a brief overview of the with which we wish to align ourselves. With the help of external experts, we produced an initial CO2 account-2 accounting by 2025. In addition, this carbon accounting report has already provided interesting information on CO2 emissions within the company and has been used to set concrete targets and roadmaps for reducing CO2 emissions.The calculations focused on the ‘corporate’ part of the company, i.e. all daily activities related to the operations of the company and therefore emissions were considered and were categorized according to scope 1, scope 2, scope 3 activities. For the reporting year 2023, total CO2 emissions amount up to 255 tCO2e, or 4 tCO2e per full-time equivalent employee (FTE).Expressed by scope, this is:• Scope 1: 122 tCO2e (48%)• Scope 2: 21 tCO2e (8%)• Scope 3: 112 tCO2e (44%)It is very important to mention that all the emissions related to the devel-opment activities were not included. This is mainly explained by the lack of consistent and reliable data for development projects, especially the ones delivered in 2023 for which emissions such as embodied carbon of the building, including its construction as well as end-of-life, should have been reported in this GHG accounting. In 2023, BESIX RED conducted an LCA for more than 50% of its development projects. Again, special atten-tion to consistent and reliable data should be paid for more extensive and precise accounting in the next years.The share of emissions is summarised in the graph above with main emissions being:• 43% mobile combustion• 21% business travel Approach and year performanceBusiness travelElectricityMobile combustionEnergy SupplyStationary CombustionCommutingFugitive EmissionsGoods & Services21%5%2%8%14%7%43% 2030 2050• EPBD (energy performance of buildings directive)• Green Deal• CSRD as of 2026 (BESIX RED)• LCA regulations and reporting• MEPS (Minimum Energy Perfor-mance Standards)• 55% reduction in building-re-lated CO2 emissions• All buildings carbon neutralP 37NEXT ACTIONSSUSTAINABILITY AT BESIX RED
As previously explained, the emissions related to the development activities of BESIX RED were not includ-ed. This is mainly due to the lack of consistent data on -tency is to elaborate a standard BESIX RED LCA meth-odology, based on well-known frameworks and clear ambitions. This is all the more relevant for compar-ing the evolution of embodied and operational carbon of development projects over time, and for setting targets.Before implementing measures, it is important to consider choosing the right objectives, or targets. To do this, we will follow the targets established by the SBTi (Science Based Targets Initiative), which proposes carbon reduction pathways to achieve climate neu-trality in 2050. Science Based Targets (SBTs) provide low-carbon organization. This methodology for setting reduction targets is in line with what the latest climate studies indicate is necessary to keep global warming well below 2°C. The methodology is based on atmo-spheric temperature changes projected over the next few years.Using the Carbon+Alt+Delete software, an approx-imate CO² emissions reduction pathway was estab-lished by our consultant, according to the SBTi targets. Although this is an estimate, it does not constitute thus not entirely reliable and serves more as a gross indication of the order of magnitude. Based on the current CO² emissions calculated, the following targets are set:• By 2030• Scope 1 & 2: 42% reduction• Scope 3: 25% reduction• By 2050• Scope 1 & 2: 90% reduction• Scope 3: 90% reductionAmbitions and future actionsCARBON EMISSIONS - GHG (ESRS E1)P 38ABOUT BESIX RED OUR ESG STRATEGY
Our journey to renovation is an ongoing progress for us. The redevelop-the legacy of The Cosmopolitan in Brussels.tower and a smaller building into into 156 residential units at the heart of the city.80s into a premium residential project.Lighthouse transforms an obsolete historic building into a workspace meeting the highest standards of environmental sustainability and em-ployee well-being.Case studies The CosmopolitanAnthea LighthouseP 39NEXT ACTIONSSUSTAINABILITY AT BESIX RED
AMBITIONSNEXT ACTIONSIN 2023Fuel installation will be forbidden as of 2025.Only renewable energy technologies85%of projects are fossil-freeby 2026100%of the projects should be fossil-free by 2026100%of projects should reach EPC score A by 2027100%of projects should be 15% better than NZEBby 2026100%of projects will use renewable energy technologies69%of residential projects have an EPC score AENERGY CONSUMPTION (ESRS E1)P 40ABOUT BESIX RED OUR ESG STRATEGY
To achieve our carbon objectives, we must prioritise energy performance. This involves closely monitoring the energy performance of our projects and prioritizing the use of renewable energy as the main resource for the future operation of our buildings.In 2023, • 85% of the projects under development are fossil-free • 69% Residential projects have an EPC score A• (Nearly Zero Energy Building)Approach and year performanceBESIX RED will align primary energy demand and EPC with European tax-onomy requirements for all new developments from 2025 onwards. As a real estate developer, our ambition is to create Nearly Zero Energy Build-We achieve this goal by integrating renewable energy sources such as solar and geothermal, and adopting advanced technological innova-tions (such as energy management system), while excluding the use of fossil fuels. Some projects use intelligent energy management systems (as Squaresense technology), high-performance building materials, and smart grid solutions to optimise energy consumption. The ultimate goal is with European taxonomy requirements, thereby contributing to a more sustainable and environmentally friendly future.Ambitions and future actionsP 41NEXT ACTIONSSUSTAINABILITY AT BESIX RED
Sluishuis is one of the most sustainable residential buildings we have recently completed. It has an energy energy neutral, thanks to multiple solar panels installed on the building as well as on one of the four islands. WellBe in Lisbon will be equipped with 128 photovoltaic panels. Compared -lations show that energy consumption will be reduced by almost 30%.Case studies SluishuisENERGY CONSUMPTION (ESRS E1)P 42ABOUT BESIX RED OUR ESG STRATEGY
WellBeP 43NEXT ACTIONSSUSTAINABILITY AT BESIX RED
AMBITIONSNEXT ACTIONSIN 20231.Adopting a Physical risk assessment methodology which includes every risk 2.Gradual yearly increase in the share of measures implemented45%of projects under-went a climate risk assessment by 2026100%of new projects will conduct climate risk vulnerability assessment by 2026100%implementation of climate risk assess-ment measures for all new projects25%of projects imple-mented the mea-sures from the climate risk assess-ment CLIMATE ADAPTATION (ESRS E1)P 44ABOUT BESIX RED OUR ESG STRATEGY
and the implementation of adaptation measures are critical to enhancing the sustainability and value of our buildings. By proactively addressing these challenges, we ensure that our developments are resilient and fu-ture-proof, aligning with our commitment to sustainability and long-term value creation. Consequently, we must make our projects more resilient to these extreme weather events. This involves using construction techniques and materials designed to minimise potential damage, ensuring the safety and comfort of occu-pants, while reducing our overall carbon footprint. Climate risk analysis begins during site selection and continues throughout design and devel-opment phases. A resilient and sustainable building positively impacts renovations. In 2023, 45% of our new projects conducted a climate risk assessment aligned with EU Taxonomy standards. Adaptive measures were fully im-plemented across all these projects, ensuring our proactive approach to addressing climate risks and enhancing sustainability across our opera-tions.Approach and year performanceIn 2026, our goal is to conduct comprehensive climate risk assessments for all new projects, ensuring that all recommendations for adaptive mea-sures are consistently reviewed and implemented at project level.Ambitions and future actionsP 45NEXT ACTIONSSUSTAINABILITY AT BESIX RED
AMBITIONSNEXT ACTIONSIN 20231.Water demand estimation & dimensioning of rainwater tank2.Water concept study82%of projects imple-mented rainwater harvesting systemsby 2026100%of projects will implement rainwater harvesting systemsby 2026100%of projects will be resilient to a T100 rainfall event by 2026100%with Taxonomy recommendations 25%of projects were resilient to a T100 rainfall event WATER MANAGEMENT (ESRS E3)P 46ABOUT BESIX RED OUR ESG STRATEGY
We consider the integration of water recycling and reuse systems in build-ings as a crucial solution to preserve water resources in the long term and alleviate water stress. Installing water harvesting systems, such as rain-water tanks, and investing in greywater recycling methods aim to ensure sustainable water management throughout the building’s lifecycle. Simultaneously, we assess the resilience of stormwater management in In 2023, we successfully implemented rainwater harvesting systems in over 80% of our projects, providing future building occupants the ability to operate without depleting water resources.Approach and year performancethe EU Taxonomy as guiding frameworks. These tools help us uphold high standards in our developments while adhering to regulatory requirements and market standards.In addition to exploring water circularity for all our projects, which re-quires an accurate estimation of water demand and an appropriate di-mensioning rainwater tank, our goal is also to integrate climate adaptation measures for water hazards. By 2026, our aim is for all our projects to be able to cope with climate need to carry out water design studies to properly assess the feasibility Ambitions and future actionsP 47NEXT ACTIONSSUSTAINABILITY AT BESIX RED
All our most recent and upcoming mixed-use and resi-dential projects feature solutions for rainwater manage-ment and water harvesting and reuse, to name a few : Les Promenades d’Uccle, Anthea (Brussels), O’Vert (Ghent), Green Station (Gembloux), Sluishuis (Amster-dam).Case studiesGreen Station WATER MANAGEMENT (ESRS E3)P 48ABOUT BESIX RED OUR ESG STRATEGY
Les Promenades d’UccleSluishuisO’VertAntheaP 49NEXT ACTIONSSUSTAINABILITY AT BESIX RED
AMBITIONSNEXT ACTIONSIN 202378%of projects for which a material optimisa-tion study was per-formed to optimise by 2025100%of projects will receive a material optimisation study to optimise materi-- -cantly reduce our carbon footprint and minimise our overall environmen-tal impact. Our circular economy strategy aims to optimise embedded carbon in our materials by promoting systematic reuse and recycling of resources. We also prioritise the use of renewable biosourced and geo-sourced materials, while advocating for local delivery circuits to further reduce our ecological footprint.These circular and local initiatives are not only critical from an environ-mental perspective but also economically advantageous, providing a competitive edge in response to the increasing demands for Life Cycle Assessments (LCAs) and recycling practices in the construction sector.In 2023, almost 80% of the newly developed projects were subject to a Approach and year performanceinformative tool for us to prioritise the best material in terms of resource include a material optimisation study by 2025. Ambitions and future actionsRESOURCE, MATERIALS, WASTE MANAGEMENT AND RECYCLING (ESRS E5)NEXT ACTIONSInclude requirements for material reuse for contractors and architectsP 50ABOUT BESIX RED OUR ESG STRATEGY
Preserving architectural elements is at the core of Lighthouse’s renovation. A pre-demoli-tion audit is underway, proposing recycling measures in accordance with the project’s pro-staircase, despite challenges, is partially reused, focusing on preserving its architectural sig- been conserved and meticulously restored, preserving the historical fabric of Lighthouse. Engaging with circular experts for second-hand construction materials is also a strategic initiative under analysis. Case studyLighthouseP 51NEXT ACTIONSSUSTAINABILITY AT BESIX RED
AMBITIONSNEXT ACTIONSIN 202350%of projects have -ity and adaptability study to optimise by 2026100%of projects for which adaptability study is performed in design stageOur sustainable design strategies aim to minimise the ecological foot-print of buildings while reducing construction and operating costs, and enhancing the well-being of occupants. Our approach is based on eco-re--ibility, adaptability, longevity, sobriety, and connectivity among occupants, without compromising architectural aesthetics. This allows us to limit energy, water, and heating consumption, while cre-ating spaces that inspire and support active and healthy community life.Among our sustainable design initiatives:• We integrate natural materials and green spaces such as green roofs, shared gardens, community islands, and gardens, as well as green walls. These initiatives naturally cool urban areas while providing oc-cupants with direct contact with nature. Engaging an ecologist will • We prioritise natural light and energies for reducing energy consump-tion and optimizing operating costs• We anticipate potential building conversions by adapting our tech-niques (prefabrication) and dimensions to accommodate various func- meet diverse occupancy needs• We create safe, comfortable, and inclusive meeting spaces and ser-vices that strengthen bonds among occupants, fostering a sense of belonging to the communityBy integrating these principles into our projects, we aim to make a pos-itive impact on the environment and society, contributing to sustainable development and fostering community well-being.to enhance asset convertibility. Adaptability measures were then incor-porated into the buildings.Approach and year performanceNEXT ACTIONS-during the design phase. Apply nudging principles to enhance our design approach SUSTAINABLE BUILDING DESIGN (ESRS E5)P 52ABOUT BESIX RED OUR ESG STRATEGY
For us, “smart buildings” should encompass not only advanced tech-nologies but also thoughtful architecture and design. Our vision aims to uses, and reduce costs from construction to operations. -ity analysis from the initial design stage. We also aim to integrate nudging principles into our sustainable design approach, encouraging occupants -portive behaviours.Ambitions and future actionsDesigned by the internationally renowned architect Foster + Partners and their local peer BFF, the internal social spaces at ICÔNE (Luxembourg)feature carefully incorporated greenery, including trees and plants within atria, creating a refreshing atmosphere that maximises natural daylight. Additionally, windows are intentionally designed to be opened, allowing further control over the indoor environment and fostering a connection with the outdoors. At Anthea (Brussels), the terraces have been designed to help prevent overheating, thereby reducing or even eliminating the need for air condi-tioning in the apartments in the summer.Case studiesICÔNEAntheaP 53NEXT ACTIONSSUSTAINABILITY AT BESIX RED
AMBITIONSNEXT ACTIONSIN 202382%of projects received an environmental impact assessmentby 2025100%of the projects will carry out an envi-ronmental impact assessmentConstruction works negatively impact the air and soil, and the choice of materials to be used for the building impacts the end user’s future health. -nation of the environment and failing to comply with the regulations. To address these issues, we emphasise the prevention of soil contamina-tion through careful planning and management practices. We also focus lands that may be contaminated but have potential for reuse. Thorough studies are conducted on our development projects to assess and miti-gate any environmental risks. Additionally, we prioritise the selection of materials that have a minimal impact on human health, such as safe paints and adhesives, and mate-rials that are environmentally friendly, which ensures they can be reused or safely returned to the environment. In 2023, 82% of our projects underwent an environmental impact assess-ment, by expert sustainability partners.Approach and year performance-vironmental impact, our objective also includes enhancing pollution pre-an “Eco-Friendly Construction Charter,” which will help us monitor com-pliance with standards for noise and dust pollution, emissions, and water usage. We are working to apply this charter across our entire project port-folio.Ambitions and future actionsNEXT ACTIONSCreating an Eco-Friendly Construction Charter AIR & SOIL POLLUTION (ESRS E2)P 54ABOUT BESIX RED OUR ESG STRATEGY
To establish our future O’Vert (Ghent) project, the former Meyvaert glass factory site at Dok Noord in Ghent will be decontaminated in ordrer to create a public park and residential buildings.The current site of PURE (Lille) has a parking lot which will be decontam-inated and re-used as an extension of the existing building as well as the creation of a 1,000 m² garden.The site on which ICÔNE (Luxembourg) is built was an industrial waste-land before development.Case studiesICÔNE O’VertPUREP 55NEXT ACTIONSSUSTAINABILITY AT BESIX RED
AMBITIONSNEXT ACTIONSIN 2023by 2026min20%of green (permeable, per projectWe recognise the critical importance of respecting biodiversity and re-storing ecosystems in our projects. Integrating these principles not only meets regulatory requirements but also positively contributes to the en-vironment and long-term sustainability. This commitment is manifest-ed through adopting sustainable design practices such as creating green spaces and ecological corridors, using sustainable and local materials, implementing rainwater management systems, and protecting sensitive habitats.By restoring ecosystems, we improve the quality of life for surround-ing communities and strengthen the climate resilience of our projects. our projects. It can lead to habitat degradation, loss of biodiversity, and increased negative environmental impacts such as urban heat islands in obtaining construction permits, additional costs related to managing environmental impacts, and a negative reputation for our company.For those reasons, actively integrating biodiversity and ecosystems into our projects is not only an environmental responsibility but also a critical in the market.Approach and year performance BIODIVERSITY AND ECOSYSTEMS RESTORATION (ESRS E4)NEXT ACTIONSData collectionP 56ABOUT BESIX RED OUR ESG STRATEGY
We aim to ensure a minimum level of greenery in all our projects, target-ing between 20% and 30% greenery by 2026. This greenery will support the restoration of biodiversity and ecosystems, eventually resulting in a net positive impact on biodiversity at project level. By boosting perme- improve water management facing climate hazards such as heavy rain-fall and storms. In the future, if the situation allows it, the BiodiverCity label could inspire our actions and guide our sustainability initiatives to better integrate nature preservation and restoration solutions within our projects.Ambitions and future actionsP 57NEXT ACTIONSSUSTAINABILITY AT BESIX RED
At O’Vert (Ghent), two green oases, a collective park that is surrounded by one of the buildings and a public park, will form the green heart of the site and its sur-roundings.PURE (Lille) will feature extensive planting, with con-rest areas. The landscaping will be carried out using environmentally friendly methods to preserve biodi-versity.Case studiesO’Vert BIODIVERSITY AND ECOSYSTEMS RESTORATION (ESRS E4)P 58ABOUT BESIX RED OUR ESG STRATEGY
PUREP 59NEXT ACTIONSSUSTAINABILITY AT BESIX RED
AMBITIONSNEXT ACTIONSIN 202363%of new development projects are NOT built ecological value (i.e. crop land, forest, near a biodiversity-rich area)by 2030100%projects NOT built on high ecological value As an urban developer, BESIX RED’s acquisition strategy naturally focuses on projects within cities, particularly near train stations or multimod-al hubs (tram, underground, bus), promoting proximity and decarbonized transportation. However, BESIX RED remains open to selecting suburban sites, but only in close collaboration with local authorities seeking to re- impact on biodiversity and ecosystem services due to soil sealing or permit applications, resulting in delays in the marketing phase and in-creased costs for our company. -tise site selection to avoid ecologically sensitive areas. Conversely, re-biodiversity but can also revitalise neighbourhoods and regenerate the surrounding ecosystem, thereby enhancing the local economy and, at the end, quality of life for residents.In 2023, as part of our ESG and business strategy, BESIX RED decided not to develop new projects on ecologically valuable lands for 63% of its total developments. The projects developed on sites with certain ecological value were accepted in response to municipal tender. This includes inte-grating robust environmental features such as creating green spaces, eco-logical corridors, green roofs or gardens, rainwater management systems, and preserving sensitive areas to restore biodiversity and ecosystems.Approach and year performanceNEXT ACTIONSConsider the issue in the acquisition committee LAND USE CHANGE (ESRS E4)P 60ABOUT BESIX RED OUR ESG STRATEGY
Looking ahead, our goal is to ensure that by 2030, 100% of our projects are not built on land with ecological value. To achieve this, we will imple-guide will help us assess a site’s potential for construction, evaluate ESG aspects such as the presence of contaminants, and estimate the costs required for decontamination. Regarding projects related to municipal tenders, we ensure that our proj-ects will adopt a net gain environmental approach. This means that we impacts by incorporating sustainable design practices, mitigation mea-sures, and potential compensations to ensure an overall positive environ-mental outcome.Case study The site on which ICÔNE (Luxembourg) is built was an industrial waste-land before development. The mixed-use project, Le Côté Verre at Square Léopold in Namur, located near the multimodal station, will transform an outdated parking lot and revitalise the neighbourhood and key commercial areas, enhancing both the city’s economy and urban landscape.Ambitions and future actionsICÔNEP 61NEXT ACTIONSSUSTAINABILITY AT BESIX RED
COMMITMENTS FOR PEOPLEThis section outlines BESIX RED’s key social objec-tives and ongoing initiatives aimed at enhancing social performance and creating value within both internal and external communities. We have selected spe- well-being, comfort, and inclusion.P 62ABOUT BESIX RED OUR ESG STRATEGY
Employee well-being and satisfactionEmployee diversity, equity and inclusion (DEI) Occupants comfort Local community engagementMobility and interconnectivity(ESRS)Promote positive impacts on health, well-being, comfort and inclusion of people and communityESRS S4 Consumers and end-usersESRS S1 Own workersESRS S3 Aected communitiesESRS S1 Own workers & S4 Consumers and end-usersP 63NEXT ACTIONSSUSTAINABILITY AT BESIX RED
We consider our employees to be our greatest strength and driving force. - team-building activities. These initiatives boost morale, motivation, and loyalty while increasing job satisfaction. We promote regular feedback opportunities between employees and line managers, and we provide op-portunities to improve well-being, motivation, and retention. This strategy increases satisfaction and productivity, reduces employee turnover, and facilitates the capitalization of existing skills within the company.BESIX Group started the year 2024 on a high note by being awarded -through internal recruitment campaigns and presentations in university campuses.In 2023, each of our employees had access to over 150 informational ses-sions, equivalent to hours of online training provided by the BESIX eAcad-emy. Additionally, some of our BESIX RED employees participated in the “BESIX Potential Academies” programme, created in partnership with the Solvay Brussels School and the Vlerick Business School. The “BESIX Po-tential Academies” aim to empower our employess through various busi-ness training courses. Candidates are carefully selected based on their comprehensive business education and a practical, interactive curriculum topics (such as Taxonomy, CSRD, etc.) and the implementation of our own ESG strategy have been provided to all our employees. In addition to investing in the development of hard activities to enhance team cohesion and long-term commitment to common objectives. Each year, our Executive Committee and departmen-tal leaders gather for the “Top & Flop” day to discuss about:• market trends, topics in 2023: technical implemen-tation of the European Taxonomy recommenda- company• Work environment: assess workplace atmosphere and interpersonal relations• Transparency and collaboration: foster an open culture for discussing successes and areas for im-provement • A healthy work environment: promote mental and physical well-being• An inclusive culture: encourage a positive and inclu-sive working climate• Employee satisfaction and retention: enhance job satisfaction and reduce turnoverBy integrating these practices into our ESG strategy, we aim to create a workplace where every employ-ee feels valued, heard, and motivated to contribute to our company’s success.Approach and year performanceEMPLOYEE WELL-BEING AND SATISFACTION (ESRS S1)P 64ABOUT BESIX RED OUR ESG STRATEGY
Starting in 2024, we will conduct annual employee satisfaction surveys, replacing the previous biennial schedule. This change enables us to swiftly address employee needs and align well-being initiatives with satisfaction survey will promote: • Proactive Listening: quickly identify employee needs and expectations• Responsiveness: implement corrective actions more rapidly• Cultural Alignment: adapt well-being and develop-ment initiatives to our evolving company cultureIn addition to the BESIX Academy online training courses, we will launch in September 2024 an annual education programme on ESG subjects, which are mandatory for our Project Managers (developers and These sessions aim to enhance their understanding and implementation of sustainable practices in our projects, aligning with our commitment to environ-mental, social, and governance principles. Addition-ally, other training sessions on broader themes such as Strategy, Proactivity, and Risk Analysis (Vlerick) will also be on the agenda for 2024.Part of the collective bonus will be awarded if 90% of employees attend 100% of the information sessions.Ambitions and future actionseSports activitiesImmorunFamily days - Pairi DaizaTeam buildingsP 65NEXT ACTIONSSUSTAINABILITY AT BESIX RED
Diversity, equity, and inclusion (DEI) are the pillars of a sustainable and thriving company. These principles are deeply embedded in all subsidiar-ies of BESIX Group.We think that a diverse workforce, through equal gender representation, cultural, and social backgrounds, inspires creativity and innovation in our projects and way of working. By prioritizing equity, diversity, and inclusive-ness, we unleash our team’s full potential, driving positive impacts and groundbreaking solutions.BESIX RED therefore asks each employee to adhere to the principles in-cluded in the internal Diversity & Inclusion Policy and the General Code Of Conduct.Approach and year performanceEMPLOYEE DIVERSITY, EQUITY AND INCLUSION (ESRS S1)P 66ABOUT BESIX RED OUR ESG STRATEGY
We will ensure diverse representation at all levels of the organization, implement equitable policies, and promote an inclusive culture. In the coming months, BESIX RED aims to establish its own DEI policy and Employee code of conduct tailored to its activities while adhering to the Group’s recommendations.Ambitions and future actionsBelgiumWomen24-35BelgiumLuxembourgPortugalNetherlandsNetherlandsFranceMen35-4545-65FrancePortugalSwedenMorocco36%30%28%42%64%GEOGRAPHIC REPRESENTATIONNATIONALITIESGENDERAGE DISTRIBUTION11114649Bulgaria452925Total number of colleagues: 63P 67NEXT ACTIONSSUSTAINABILITY AT BESIX RED
We consider our communities to be among our most important stake-holders, as our goal is to develop projects that have a positive and lasting impact on people. By engaging with communities at the early stages of the concept design, we can promptly integrate their perspectives and anticipate the expectations of our neighbours. This proactive approach allows us to ensure that our projects align with local needs and contrib-ute positively to the community.We recognise that a lack of active and timely communication and engage-ment with neighbourhood can negatively impact building development, leading to delays in the project evolution, development, and execution. Such delays compromise the completion and delivery of the project, re-sulting in increased operational setbacks. Conversely, maintaining open lines of communication and fostering close collaboration with local stakeholders can minimise these risks and facilitate smoother project progress.By incorporating community feedback early on, we can identify and address local concerns, adapt our projects to deliver tangible and sus-transparent and inclusive approach ensures that our developments not only respect but also enrich the environments they inhabit. stakeholders took part in a consultation process or were engaged in a feedback process. The collected feedback was internally processed at BESIX RED and implemented in the project design and development.Approach and year performanceLOCAL COMMUNITY ENGAGEMENT (ESRS S3)GELATINES P 68ABOUT BESIX RED OUR ESG STRATEGY
Our commitment to engaging with communities underscores our dedica-tion to social and environmental responsibility, helping us create projects By 2026, we expect to have a consultation process for all our projects, in We will adhere to all requirements for community engagement by orga-nizing formal exchanges such as meetings, public consultations and site in line with GRESB standards. Additionally, we will measure the potential long-term socio-economic impact of our development projects on the community from the planning and pre-construction phases onwards.Our community engagement process will include several essential crite-ria:1. Collecting and monitoring data for socio-economic impacts2. communication 3. Tracking project progress and issues4. Proactively minimizing nuisances and disruptions for residents and usersat least 2 amenities within 500 meters or 4 amenities within 1 kilometer, in accordance with BREEAM standards. This approach aligns with the evolv-ing concept of urban living, which promotes mixed-use development and the “15-minute city” model, where daily needs are within a short walk or bike ride from home. Ambitions and future actionsBESIX RED FOR MOROCCOBESIX FOUNDATION ACTIVITIESDelivering food and supplies to the local population in Septem-ber 2023 following the devastat-ing earthquake.Our BESIX RED team members take part in the following activities.BESIX Foundation – Togeth-er let’s build a better worldRiver Clean upOperation Thermos20 km Run for charityP 69NEXT ACTIONSSUSTAINABILITY AT BESIX RED
We embrace a human-centric approach, prioritizing occupants health, comfort, well-being and great experiences that increase occupants’ sat-isfaction and client retention. All our projects integrate essential elements like high indoor air quality, surroundings access to natural light and materials. As requested by the emit less than 0.06 mg/m³ of formaldehyde and less than 0.001 mg/m³ of volatile organic compounds (VOC) category 1a and 1b.We also take particular care to cover the following points that improve comfort:• Strategic location near public transport nodes to facilitate commuting • Creation of convivial common areas and services such as meeting rooms, coworking spaces, and relaxation zones, and additional services like gyms, delivery box, and nearby retail stores• Robust security measures to protect occupants, accessibility for people Approach and year performanceOCCUPANTS COMFORT (ESRS S4)Casa Ferrero P 70ABOUT BESIX RED OUR ESG STRATEGY
We are dedicated to enhancing the health and well-being of our occu-pants through rigorous standards. Our ambition is to ensure that from -cation. This commitment underscores our dedication to creating environ-ments that promote health, wellness, and productivity, aligning with our broader ESG objectives and contributing to the overall quality of life for our occupants. Ambitions and future actionsP 71NEXT ACTIONSSUSTAINABILITY AT BESIX RED
At BESIX RED, we recognise that mobility and the connection between spaces are essential for physical and mental well-being. BESIX RED inte-grates the challenges of mobility and urban interconnectivity as a major aspects of its ESG strategy. We apply Carlos Moreno’s theory of the “15-minute city,” demonstrating that bringing social, urban, and territorial functions within a “15-minute” radius of active mobility enhances urban well-being. This approach reduces carbon emissions, improves quality of life, and creates sustainable urban environments.To maximise our positive urban impact, we incorporate soft mobility in-frastructure such as cycle racks and electric vehicules (EV) charging sta-tions into our projects from the early design stages. Accessibility to a public transport station as always been one of our key criteria in project aquisition. In 2023, the majority of our projects are stra-tegically located near at least two public transport nodes, ensuring easy access and promoting sustainable commuting.Internally, we are committed to promoting public transport and electrify-- -sibility, encouraging sustainable transportation and contributing to the ecological transition. In 2023, 88% of our employees have a car and 16 % have an electric car. Approach and year performanceMOBILITY AND INTERCONNECTIVITY (ESRS S4)EMPLOYEE MOBILITYGazolineElectricHybridDieselCommuters55%3%16%12%14%P 72ABOUT BESIX RED OUR ESG STRATEGY
We commit to developing projects and services that support and inspire active travel for residents and help cities decarbonise by encouraging the use of cleaner modes of transport. As from 2026 onwards, our ambition is to prioritise sustainable and ac-cessible transportation options. We aim to ensure that each building is located within one kilometer of a public transport node via a safe pedes-trian route, with a service frequency of 15 minutes during peak times, in accordance with BREEAM standards. Additionally, we will install bicycle racks with a capacity of at least 40% relative to the number of units and dedicate at least 5% of parking spaces to carpooling. Furthermore, between 40% and 70% of parking spaces will be equipped enhancing mobility, reducing carbon emissions, and promoting sustain-able urban living in line with our ESG objectives. Currently, no real estate project has - -atically considered for every develop-ment. The criteria related to sustainable mobility and connectivity have become crucial for both investors and future oc-ActiveScore not only meets the growing expectations for sustainability and pro-vides an optimal experience for circula-tion and mobility within the building, but it also ensures that our projects align with best practices for managing carbon footprints and adapting to future transportation needs.Ambitions and future actionsLe Côté VerreP 73NEXT ACTIONSSUSTAINABILITY AT BESIX RED
COMMITMENTS FOR PROSPERITY The governance section of this report covers themes and objectives that enhance both the company’s pro-ductivity and strengthen its resilience in the face of economic and environmental challenges. At BESIX RED, we are committed to upholding the highest standards of corporate governance. By fo-cusing on transparent, ethical, and responsible gover-nance, the company is committed not only to optimis-ing its operational performance but also to ensuring sustainable and balanced growth. This includes pro-moting inclusive management practices, safeguarding stakeholder rights, and encouraging decision-making based on robust sustainability principles. By integrat-ing these elements, we think we are better equipped to anticipate and meet regulatory requirements, inves-tor expectations, and societal needs, while improving our reputation and long-term competitiveness.P 74ABOUT BESIX RED OUR ESG STRATEGY
Building certications(ESRS)Ensuring responsible, sustainable company’s growth, and maintaining a respectful working environment ESRS G1 Business conductBusiness ethicsTransparency and reporting Suppliers and subcontractorsCybersecurityP 75NEXT ACTIONSSUSTAINABILITY AT BESIX RED
One of the primary objectives of the Group’s structure is to maintain exemplary internal ethical standards by implementing the necessary measures to prevent, detect, and address unethical behaviours. Ethical conduct is an integral part of the corporate culture, which emphasises honesty, integrity, professionalism, and adherence to high ethical standards in all busi-ness activities.BESIX RED leverages the policies and tools established within the BESIX Group to strengthen its governance and foster positive actions with its partners.A robust Code of Conduct supports all our activi-ties, guaranteeing ethical and sustainable practices. Like the BESIX Group, BESIX RED requires its part-ners to sign a code of conduct that obliges them to adhere to the company’s standards and ambitions, and allows audits to be conducted at their facilities. -tractors, various actions permitted by local laws are -tion of the contract.By 2023, 100% of the BESIX RED team have completed the mandatory online course and signed the general Code of Conduct.Approach and year performanceBUSINESS ETHICS (ESRS G1) P 76ABOUT BESIX RED OUR ESG STRATEGY
In 2025, we will introduce our own BESIX RED Ethics Charter, designed for both internal and external use. This charter will formalise our commit-ment to ethical standards and guide our actions and decisions. To support this initiative, we will incorporate mandatory corporate ethics training into the BESIX RED education programme for all employees. This training will ensure that every team member understands and adheres to our ethical principles, reinforcing our dedication to integrity and responsible business practices as part of our comprehensive ESG strategy.Ambitions and future actionsP 77NEXT ACTIONSSUSTAINABILITY AT BESIX RED
performance transparently and regularly to our stake-holders, we aim to build long-term relationships and foster trust. This approach not only strengthens con--semination of valuable knowledge to our audience and potential clients. Additionally, it enhances our market opportunities by demonstrating our commitment to ESG report demonstrates our commitment to trans-parency, providing clear insights into our performance and reinforcing our ESG objectives.Our goal for the future is to strengthen our commit-ment to transparency by publishing an annual ESG Report. We will clearly report on our progress towards targets using relevant KPIs, adhering to ESRS stan-dards and the mandatory CSRD framework. We also aim to align our reporting with the SBTi standards within the next two years. Additionally, we will in-crease the frequency of our communications, sharing updates and best practices related to our projects through BESIX RED’s social media channels. This com-prehensive approach will ensure that our stakeholders achievements. Approach and year performanceAmbitions and future actionsTRANSPARENCY AND REPORTING (ESRS G1)P 78ABOUT BESIX RED OUR ESG STRATEGY
We are committed to working with suppliers and sub-contractors who share our values and commit to high standards of ESG criteria. This includes making sure that our partners use sustainable materials, apply fair labour practices, and minimise their environmental footprint as a whole (transportation, or “low-emission machinery”, etc.). By rigorously and continuously eval-uating our suppliers, we can ensure that our projects are both high-quality and resilient, and that they con-tribute positively to the broader community and envi-ronment. BESIX Group’s Code of Conduct for responsible and sustainable procurement guides us in monitoring and collaborating with external partners. It also encour-ages us to listen to NGOs when they provide us with information and feedback on practices that contradict our commitments. By 2026, we aim to develop our own Supplier code of conduct to be signed by 100% of our suppliers. This Code of Conduct will support an under construction Eco-Friendly Construction Charter.Approach and year performanceAmbitions and future actionsSUPPLIERS AND SUBCONTRACTORS (ESRS G1)P 79NEXT ACTIONSSUSTAINABILITY AT BESIX RED
-es, including streamlining processes, boosting productivity, and facilitat-ing the commercialization of our projects. However, these advancements also introduce challenges, particularly in the realm of cybersecurity. Like any organization, BESIX RED is exposed to cyber threats such as data breaches, hacking, and ransomware attacks. To mitigate these risks, the training, re-inforced infrastructure, and enhanced access controls to in-formation systems. This proactive stance on cybersecurity helps mini--sions stemming from cybercrime.BESIX RED has wholeheartedly embraced digitalisation, integrating smart Building Information Modelling (BIM) has become a standard requirement design, construction, and maintenance processes.Furthermore, BESIX leverages data collection across multiple tools through interfaces to create comprehensive dashboards, supporting better decision-making and reducing errors. We are also exploring the potential of Generative AI to optimise several business processes, aiming Through these initiatives, BESIX RED demonstrates its commitment to innovation and sustainability, ensuring that digital transformation not only drives business success but also aligns with our broader ESG objectives.Regarding our annual objectives, we aim to inform our employees about cybersecurity risks, implement robust digital security processes, and introduce them our workforce on these critical areas, we strengthen our overall security posture and ensure that our team is well-equipped to leverage cutting-edge technolo- with our commitment to fostering a secure and in-novative working environment, supporting our broader ESG goals. Approach and year performance Ambitions and future actionsCYBERSECURITY (ESRS G1)P 80ABOUT BESIX RED OUR ESG STRATEGY
as BREEAM, WELL, SmartScore, and EPC, while striving for high ratings, development processes by integrating rigorous criteria. They also ensure alignment across stakeholders, promoting transparency and enabling meaningful dialogue about the impact of our projects. Embracing these for industry excellence, reinforcing our commitment to responsible de-velopment practices.--cation. For all projects in the development phase where the permit application has not yet been submitted, we aim to introduce projects to the market that are:• Aligned with the European Taxonomy criteria and meet the KPIs of our own ESG development ambitions• environmental, social, and governance practices• permit submission)• -cation level of EPC AApproach and year performanceAmbitions and future actionsBUILDING CERTIFICATIONS (ESRS G1)P 81NEXT ACTIONSSUSTAINABILITY AT BESIX RED
our data collection & consolidation Creating a methodology to calculate our , based on SBTi and LCBI methodology and establishing our Establishing an through our 2nd Sustainability & ESG report, our website and via our social media channels Elaborating a to better engage with local stakholders and adaptations for major developement projects Creating our ownand to share with our partners Carrying out European benchmarking analysis via the 1Establishing an personnalized and info session for employeesDuring the second half of 2024 and early 2025, we will undertake several actions to implement our commitments. By integrating these practic-es into our operations, we hope to inspire positive change within our company and with all our stakeholders.Next actions to elevate our ESG StrategyP 82ABOUT BESIX RED OUR ESG STRATEGY
Sustainability & ESG Advisorlaurent.sempot@besixred.comAv. des Communautés 100, B-1200 Brussels LinkedIn www.besixred.com Info@besixred.comThank you to all BESIX RED team members, partners and key stakeholders for their daily contributions to our sustainability goals.CONTACT PERSONNV BESIX RED SA P 83NEXT ACTIONSSUSTAINABILITY AT BESIX RED