Sustainability Report 2019

REPORT 2019 SUSTAINABILITY

SUSTAINABILITY REPORT 2019

TABLE OF CONTENTS

SETTING WELCOME SUSTAINABLE DEME'S KEY GOVERNANCE TO DEME'S GOALS AND SUSTAINABILITY AND SUSTAINABILITY MAKING THEM THEMES REPORTING REPORT HAPPEN PRACTICES 4 16 24 50

7 Company Profile 20 Sustainable Value Creation 26 Climate and Energy 52 Good Governance Every Step OfThe Way 8 Message From The Board of Directors 22 Our Tools For Putting Sustainability Into 28 Natural Capital 54 Reporting Practices 9 Facts & Figures Practice 32 Sustainable Innovation 10 Financial Highlights 36 Waste and Resource Management 13 DEME’s Core Values 38 Health, Safety and Well-being 15 Collaboration With Our Stakeholders 42 Diversity and Opportunity 46 Ethical Business 48 Local Communities WELCOME TO DEME'S SUSTAINABILITY 5 REPORT COMPANY PROFILE

A global DEME is a world leader in the highly specialised fields of solutions dredging, solutions for the offshore energy market, infra marine provider and environmental works. We can build on more than 140 years of know-how and experience and have fostered a pioneering approach throughout our history, being a front runner in innovation and new technologies.

While our company roots are in Belgium, we have built up a strong presence in all of the world’s seas and continents, operating in more than 90 countries worldwide. We can rely on 5,200 highly skilled professionals across the globe. With a versatile fleet of over 100 vessels, backed by a broad range of auxiliary equipment, we can provide solutions for even the most complex projects.

Solutions Our vision is to work towards a sustainable future by offering for global solutions for global, worldwide challenges: rising sea levels, challenges a growing population, reduction of emissions, polluted rivers, seas and soils and the scarcity of natural resources.

Although our activities originated with our core dredging business, our portfolio has diversified substantially over the decades. Our offering includes dredging and land reclamation, solutions for the offshore energy market, infra marine solutions and environmental solutions. Our multidisciplinary capabilities, the synergies in many projects and our integrated corporate structure have made us into a global solutions provider.

Exploring We also strongly believe in turning challenges into opportuni- new ties. That’s why we are continuously looking for ways to deploy horizons our knowledge and expertise in other activities, exploring new horizons and expanding our solutions portfolio.

We are developing technologies for the sustainable deep-sea harvesting of minerals on the ocean floor. As a leader in environmental remediation, we are looking into solutions for tackling marine litter in our rivers and oceans. We are building on our experience in coastal protection to develop nature-based solutions to counter the rising sea level. Our continued investments in new technologies and activities underline just how important innovation is to our company.

Share- DEME’s shareholder is the Brussels-based civil engineering holder contractor CFE, which is controlled by the Belgian investment structure group Ackermans & van Haaren – both publicly listed companies on Euronext Brussels.

SUSTAINABILITY REPORT — 7 MESSAGE FROM FACTS & FIGURES THE BOARD (actuals December 2019) TOTAL MALE FEMALE OF DIRECTORS BREAKDOWN MALE/FEMALE TOTAL COMPANY “WE WANT TO 4,400 734 5 ,13 4 CONTINUOUSLY CHALLENGE R ATIO OF FULL-TIME PART-TIME OURSELVES TO FULL-TIME AND PART-TIME DEVELOP MORE EMPLOYEES SUSTAINABLE SOLUTIONS 4,351 614 49 120

AGE PROFILE % of total employee base BY GENDER 18

12 Luc Vandenbulcke Luc Bertrand ” 9 Chief Executive Officer DEME Chairman DEME 6

0 age We are pleased to present DEME’s second 20-24 25-29 30-34 35-39 40-44 45-49 50-54 55-59 60-64 > 65 Sustainability Report.

In our report we outline DEME’s approach to sustainability TRAINING HOURS 123,239 18,294 142,233 and the progress we have made in 2019 towards achieving our ambitious goals. This comprehensive Sustainability Report not only highlights our commitment to sustainability, but also how NUMBER OF CREW & WORKMEN STAFF TOTAL COMPANY NATIONALITIES we aim to communicate in a transparent way. 52 71 82

Our sustainability strategy aligns with on minimising the impact of our own Although our over 140 years of history the United Nations 2030 Sustainable operations. We strongly believe that this has enabled us to develop solutions Development Goals. For many years our holistic approach is the only way forward, for tackling some of the world’s most innovative solutions have already been and it is one that differentiates us in the pressing issues, we realise our job making a significant contribution to market. We want to continuously challenge is never finished. Our sustainability GREENHOUSE GAS EMISSIONS achieving these goals, but we continue to ourselves to develop more sustainable aspirations mean that we continually step up our efforts. We have identified key solutions within our portfolio and excel in strive to explore new possibilities, new GREENHOUSE GAS (GHG) CO2 EMISSIONS ACCORDING areas where we can play a major role and our operations. solutions and new technologies. We EMISSIONS WORLDWIDE TO CO2 PERFORMANCE LADDER leverage our strengths to contribute to a are dedicated to meeting and exceeding (in kton CO₂ eq.) (in kton CO₂) sustainable world. We identified eight key sustainability expectations as a sustainable company, themes that will support us to create and in many domains we go even further DEME develops solutions and initiatives and deliver sustainable value: Climate than the market and regulations demand. to address global challenges and & Energy, Natural Capital, Sustainable 693 156 TOTAL GHG EMISSIONS TOTAL BELGIUM & THE NETHERLANDS megatrends - a rising sea level, growing Innovation, Waste & Resource Management, Just like our attitude to safety – our SCOPE 1 AND 2 population, reduction of CO2 emissions, Health, Safety & Well-being, Diversity & efforts won’t stop – it is an ongoing process, polluted rivers, seas and soils and the Opportunity, Ethical Business and Local never a ‘done deal’. 5 12 scarcity of natural resources. Alongside Communities. The report outlines our 676 SCOPE 2 SCOPE 3 this, we want to do our work in a responsible efforts and initiatives related to each SCOPE 1 ELECTRICITY OTHER DIRECT INDIRECT INDIRECT way, therefore we have a continual focus theme. EMISSIONS EMISSIONS EMISSIONS *More information on reporting practices can be found on p. 54

8 SUSTAINABILITY REPORT — 9 FINANCIAL HIGHLIGHTS

DEME GROUP EVOLUTION OF NET RESULT, EBIT AND EBITDA As of December 31 (in millions of EUR) DEME GROUP KEY FIGURES 600 As of December 31 EBITDA (in millions of EUR) EBIT 489 500 456 459 437 2019 2018 DE LTA Net result 447

Turnover 2,622.0 2,645.8 -23.8 400 EBITDA 437.0 458.9 -21.9 EBIT 141.1 196.0 -54.9 300 269 227 231 Net result share of the Group 125.0 155.6 -30.6 199 196 Order book 3,750.0 4,010.0 -260.0 200 155 155 156 125 141 Average # personnel (in FTE) 5,089 4,937 152 100 Shareholders' equity (excl. minority interests) 1,435.5 1,401.4 34.1 Net financial debt -708.5 -555.8 -152.7 0 Balance sheet total 3,944.8 3,820.7 124.1 2015 2016 2017 2018 2019 Total investments 446.1 410.2 35.9 Dividend of the year * 55.0 -55.0

(*) Due to the COVID-19 crisis and out of caution, the Board of Directors will ask the shareholders at the General Meeting to fully reserve the profit of the financial year 2019. The Board of Directors will evaluate the possibility to distribute an interim dividend by the fourth quarter of 2020 at the latest. DEME GROUP TURNOVER BY REGION AND ACTIVITY LINE As of December 31 DEME GROUP EVOLUTION OF CONSOLIDATED TURNOVER AND EBITDA BY REGION 2019 2018 As of December 31 Europe - EU 69% 67% (in millions of EUR) Asia & Oceania 9% 13% Africa 9% 10% 3,000 Europe - non EU 4% 2% 2019 2018 2,646 2,622 2,532 Indian subcontinent 3% 2% 2,420 2,356 2,500 2,286 Middle East 3% 2% 1,915 1,978 America 3% 4% 2,000 1,801 1,766

1,500

1,000 BY ACTIVITY LINE 2019 2018 DEME Offshore 44% 51% 500 Dredging** 41% 37% 17.3% 18.3% 21.4% 22.6% 19.3% 17.3% 16.7% 18.3% 17.0% 18.3% Infra 7% 5% 2019 2018 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Environmental 6% 5% Others*** 2% 2%

Definitions: EBITDA is the sum of operating result (EBIT), depreciation, amortisation expenses and impairment of goodwill. EBIT is the operating result or earnings before financial result and taxes and before our share in the result of joint ventures and associates. Order book is the contract value of assignments that are acquired as of December 31 but that is not yet accounted for as turnover because of non-completion. Net financial debt is the sum of current and non-current interest-bearing debt decreased with cash and cash equivalents. (**) Of which maintenance dredging 10% in 2019 and 11% in 2018, of total turnover. Total investments is the amount paid for the acquisition of intangible, tangible and financial fixed assets, which equals the total investment amount of the consolidated cash flow (***) Salvage works, marine aggregates, concession and deep-sea harvesting activities are represented in Activity Line Others. from investing activities. For more information on our activities and financial highlights, we refer to the DEME Activity Report 2019 and the DEME Financial Report 2019.

10 SUSTAINABILITY REPORT — 11 DEME’S CORE VALUES

Our core values can be summarised in the word ‘STRIVE’. Forming the basis of our commitment to consistently deliver excellence to our customers and value to our company, our STRIVE values are reflected in everything we do. We also share these standards with our suppliers, subcontractors and partners.

TECHNICAL RESPECT SAFETY LEADERSHIP & INTEGRITY

The personal safety and health of With an open mind and the right team Our employees are trained and motivated employees and stakeholders is our spirit, we continue to improve all aspects to meet the challenges ahead. Individuality greatest responsibility. Everyone has of our work process and develop trail- and diversity are valued and performance the right to work in a safe and risk-free blazing solutions to the needs and is recognised. Our relationships with environment at all times. challenges of our customers. suppliers, subcontractors and partners reflect respect, understanding and sound business practice. We observe all applicable laws and regulations of the countries in which we are active. We respect human rights and prohibit discrimination.

VALUE INNOVATION CREATION ENVIRONMENT

Innovation is the cornerstone of our We make result- and sustainability- We protect the environment and achievements. We continuously push driven decisions in order to ensure avoid any negative impact on the our boundaries by developing new, long-term growth for the benefit communities in which we do business. value-adding services and solutions. of employees, customers and shareholders, including financial discipline to keep our company healthy.

12 SUSTAINABILITY REPORT — 13 COLLABORATION WITH OUR STAKEHOLDERS

As a global company operating in many different markets and locations, it is essential to maintain good working relationships with all our stakeholders. To achieve this, as well as to enhance awareness and foster multi-stakeholder collaborations, we emphasise:

Growing awareness about 1 sustainability within our value chains, including our employees, shareholders, suppliers, subcontractors, customers and partners.

Building partnerships and 2 exchanging knowledge with research and knowledge centres, technology providers, policy institutions and Non- Governmental Organisations (NGOs) for sustainable economic development.

Creating a sustainable mindset 3 within the organisation.

Communicating transparently 4 about the progress made towards our sustainability goals.

Strengthening the capacity 5 of local communities to maintain and sustain the projects we complete.

14 SUSTAINABILITY REPORT — 15 DEME's vision SETTING SUSTAINABLE GOALS AND 17 MAKING THEM HAPPEN DRIVING At DEME, it is our ambition to fun- OUR It is undeniable that the world is To understand the key Sustainable SUSTAINABLE damentally contribute to sustainable COMMITMENT facing multiple global challenges that Development Goals and related DEVELOPMENT solutions for the global environmental, TO THE could have a serious impact on society sustainability themes where we can have societal and economic challenges facing and environment, unless we take action the most impact, extensive stakeholder THROUGH our world today. SUSTAINABLE now. With its 17 Sustainable Development consultations were conducted in 2017 and OUR DAILY DEVELOPMENT Goals, the UN has identified its priorities 2018, including ACTIVITIES Every day we are involved in a wide GOALS for creating a better world by 2030. range of large, complex projects world- - Consultations with the executive com- wide, ranging from dredging and land While these goals address different mittee, business managers of the dif- reclamation to infra marine infrastructure, themes and aspects of sustainability, they ferent activity lines and leaders of both environmental and offshore energy works. are all interconnected. Together, they will operational and supporting services. All All these projects have a potential impact help us to overcome global poverty, stop interviewees were asked to assess the – positive or negative, minor or substantial – climate change and fight inequality so that relevance and impact of the different on communities, local economies and the we all live in a better world. Sustainable Development Goals for overall climate. us and our external stakeholders. We At DEME, we are fully committed to also discussed the opportunities and helping achieve the SDGs. These goals challenges that our business will face in have helped us to understand the economic, the future, to frame the importance of OUR STRATEGY We always strive to improve the Extensive stakeholder environmental and social impact of our the SDGs within our business context. sustainability of our own operations. consultations operations as we move towards a project FOR An intense internal cooperation process portfolio with a strong sustainable focus. - A sustainability poll, online survey and SUSTAINABLE took place across our activities, leading resulted in eight key multiple workshops during the 2018 PERFORMANCE to a two-dimensional strategy for sus- sustainability themes To push sustainable value creation DEMEx innovation conference. More than tainable performance: which are the drivers forward, we have established a clear vision 200 young DEME professionals explored and developed a sustainable performance the challenges of the Sustainable Devel- - Explore sustainable business solutions for our sustainable strategy. opment Goals and their impact on our by providing solutions and building part- performance. business success. nerships that drive change towards a low carbon, circular and resilient society. - Research on key sustainability themes for and from our external stakeholders - Excel in our operations by reducing the (publicly available information). carbon and environmental footprint of our operations and by being a top These in-depth stakeholder consulta-

employer. Positive Planet Futureproofed Economy Happy & healthy people tions and additional research resulted in a materiality matrix reflecting key priorities,

This vision will help us to create sus- based on business impact and importance tainable value for our customers, DEME to our stakeholders. The materiality and society. assessment helped us to further define our sustainability strategy, resulting in

Safety eight key sustainability themes which are Partnerships Business ethics the drivers for our sustainable performance. Health & Innovation EXPLORE SUSTAINABLE Well-being BUSINESS SOLUTIONS Land restoration GHG Climate These eight sustainability themes help us Emissions adaptation Renewable to focus our sustainability strategy on those Human rights Water quality Energy energy sources in supply chain Bribery efﬁciency AELDE and corruption Biodiversity impact areas that are most relevant for our T Transparency and ecosystems Tax and economic Talent attraction business and for our external stakeholders. Local Community contribution SUSTAINABLE and retention VALUE Engagement Resource efﬁciency and waste Setting these priorities will help us to align CREATION Gender Equality Resilient infrastructure our business decisions with the Sustainable Workplace diversity AE T and inclusion Development Goals where DEME can create T the most impact. EXCEL IN OUR OPERATIONS As nexus we identified both strategic and operational objectives for each of the eight key sustainability themes. These objectives will enable us to drive our business towards sustainable value creation.

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18 SUSTAINABILITY REPORT — 19 To push sustainable value creation forward, We identified eight key sustainability themes that will support SUSTAINABLE we have established a clear vision, including us in creating sustainable value. Integrating these ambitious strategic objectives and targets. We want objectives into our day-to-day operations will leverage sus- VALUE to continuously challenge ourselves to tainable growth for DEME and society. develop more sustainable solutions within The table below gives an overview of how our two-dimensional CREATION our portfolio and excel in our operations. strategy interacts with our key sustainability themes.

WASTE & HE ALTH , CLIMATE & NATUR AL SUSTAINABLE RESOURCE SAFETY & DIVERSITY & ETHICAL LOCAL ENERGY CAPITAL INNOVATION MANAGEMENT WELL-BEING OPPORTUNITY BUSINESS COMMUNITIES

Drive the energy transition Protect, revive and build Stimulate the development Drive the resource transition Develop future-proof Create decent job opportu- Conduct business with Increase the resilience of by expanding our offshore natural capital to address of holistic solutions through by increasing the sustainable infrastructure to enhance nities to stimulate economic integrity, to actively communities to cope with energy solutions and by key environmental and multi-stakeholder partner- supply of materials. prosperity, well-being and development and reduce and proactively prevent economic, environmental exploring new marine-based societal challenges. ships to drive the transition a safe environment. inequality. corruption or bribery in and social challenges. solutions for renewable towards a sustainable future. Accelerate the shift towards a any form. energy production, connec- circular economy by providing tion and storage. solutions for waste, soil, water and sediments. Improve adaptation against climate-related hazards by building resilient infrastruc- EXPLORE SUSTAINABLE ture and providing dedicated BUSINESS SOLUTIONS flood protection solutions. "What business do we want to be in and how can we create sustainable growth?"

SUSTAINABLE VALUE CREATION

EXCEL IN OUR OPERATIONS "How can we perform in the most sustainable way to leverage business solutions?"

WASTE & HE ALTH , CLIMATE & NATUR AL SUSTAINABLE RESOURCE SAFETY & DIVERSITY & ETHICAL LOCAL ENERGY CAPITAL INNOVATION MANAGEMENT WELL-BEING OPPORTUNITY BUSINESS COMMUNITIES

Improve energy efficiency in Minimise the environmental Enhance scientific research, Maximise efficient and Provide a safe, secure and Ensure an inclusive workplace Respect and protect labour Build collaborative relation- our operations. impact of our operations upgrade the technological circular use of materials healthy working environment where all workers are treated rights in our operations. ships with local communities and strive for a net positive capabilities and encourage throughout our projects. for all people involved. equally, with dignity and through consultation, en- Strive for a climate-neutral impact on biodiversity and sustainable innovation within respect. Embed an ethical business gagement and participation. organisation by 2050 and ecosystems. our projects. mindset within the organi reduce GHG emissions in Strengthen employee sation and transparently the project value chain. competencies by facilitating communicate about our talent development and ethical performance. promoting sustainable entrepreneurship.

20 SUSTAINABILITY REPORT — 21 As part of the proactive and pioneer- followed by 23 additional projects in future-proof infrastructure to enhance ing role we want to play in achieving the 2019. All of these projects combined security, prosperity and well-being. SDGs, we are focusing on moving towards represent almost half of our business a project portfolio with a strong sustain- revenue and cover all of our activities. - Almost half of the assessed projects able focus. Therefore we have created an help to combat climate change. With SDG Assessment Tool in collaboration - Certain projects, such as resource-based our offshore wind projects, covering a OUR TOOLS with an external sustainability expert. dredging projects and integrated brown- substantial part of our revenues, we help This tool helps us to gain further insight field developments, have a very broad drive the energy transition. into the impact of the overall project on impact on almost all SDGs, while other FOR PUTTING the SDG targets. projects, such as renewable energy, infra- - We continuously strive to strengthen the structure and site rehabilitation projects, economic and environmental resilience The in-depth results from the tool are significantly contribute to specific SDGs. of local communities without impacting SUSTAINABILITY based on interviews with key project and the climate and depleting our planet’s tender managers, as well as internal and - Almost all of the projects in which we resources. Moreover, we are aware of the INTO PRACTICE publicly-disclosed information. Each project participate are a strong enabler of eco- impact we sometimes have on marine assessment includes a climate profile, an nomic development in both developed and freshwater ecosystems, given the innovation profile and an overview of the and developing regions, creating local very nature of our activities, therefore project’s connection to one or more of the job opportunities and building local ca- we continually focus on minimising our In order to assess and monitor our project portfolio, we have developed dedicated SDGs. Insights to highlight: pacity. More than 80% of the assessed environmental footprint and protecting instruments and dashboards. Together, these tools strategically steer our decision- projects contribute to local economic these ecosystems. - In 2018, 10 medium to large projects growth. Additionally, 75% of the projects making process towards more sustainable solutions that integrate the SDGs. were comprehensively assessed, contributed to the development of

PORTFOLIO ASSESSMENT 2018-2019

PROJECTS

PROJECTS ASSESSED 41% PROJECTS NOT ASSESSED 59%

22 SUSTAINABILITY REPORT — 23 DEME'S KEY SUSTAINABILITY 25 THEMES CLIMATE AND ENERGY

CONNECTED DEME Excel in our operations that made the decision to switch to dual SUSTAINABLE CHALLENGE fuel engines and around 10% of our fleet DEVELOPMENT GOALS By their very nature, DEME’s activities can already operate on LNG. This includes Climate change is one of the greatest are energy intensive. We therefore im- two of the latest new giants: ‘Spartacus’, threats to our planet and society. In- plemented our Energy & Greenhouse Gas the world’s most powerful cutter suction creasing global temperatures fuelled by Emissions Policy with the aim to become dredger, and the next-generation offshore greenhouse gas (GHG) emissions lead to climate neutral by 2050, with a shift towards installation vessel ‘Orion’. Also, an additional rising sea levels, ocean acidification and climate-neutral vessels and programmes to programme kicked-off aimed at further extreme weather events. At the same reduce GHG emissions in the project value reducing fleet emissions. time, there is a growing need for access to chain. By scaling up our current actions, affordable, reliable and sustainable energy. introducing new programmes and optimis- DEME provides solutions to increase the ing our energy efficiency, we aim to have the resilience to climate change and the much most energy-efficient fleet in the industry. TOTAL WORLDWIDE GHG EMISSIONS 2019 needed energy transition. And indeed, we also want to continuously optimise our own operations to improve our energy efficiency. OUR 2030 693 We further need to assess and reduce the TARGETS (in kton CO₂ eq.) GHG emissions coming from our operations and in the project value chain. By 2030 we anticipate integrating climate-neutral fuels and renewable energy into all our solutions, including our DEME VISION vessels, floating equipment, car fleet and BREAKDOWN AND APPROACH offices - a prerequisite in our striving to OF GHG become a climate-neutral organisation by EMISSIONS Explore sustainable 2050. In concrete terms, we plan to reduce business solutions our GHG emissions by 40% relative to 2008 by 2030. Our Explore approach to achieving our climate and energy vision focuses on FUEL VESSELS 94% infrastructure that is better adapted to CLIMATE AND ENERGY & FLOATING EQUIPMENT climate-related hazards, including flood IN ACTION FUEL OFF-ROAD EQUIPMENT 2% protection solutions. Furthermore, we AIR TRAVEL 2% are driving the energy transition forward Fleet of the future CAR FLEET 1% by expanding our offshore renewable OFFICES 1% energy solutions. We continue to explore We embarked on a multi-year, multi-

new marine-based solutions for renewable million efficiency and sustainability Note: only limited indirect GHG emissions energy production (including tidal and wave, action plan and one that will see our are included here (e.g. electricity and air travel). While these indirect emissions are a geothermal, solar and hydrogen energy), fleet switch to lower emission fuels. consequence of DEME’s activities, they are connection and storage. Together, these Although we have taken the Interna- managed by sources not owned or controlled by DEME. projects improve access to affordable tional Maritime Organization’s green- energy and increase the share of renewable house gas regulations into account, energy. our own measures to cut emissions are going above and beyond the IMO’s requirements. To work towards these goals, recent new vessels are able to run on both marine diesel oil and LNG and they are ready to run on climate-neutral fuels like biodiesel and liquified green methane. We are driving the energy transition forward by expanding our offshore renewable energy solutions DEME is the first company in the sector

SUSTAINABILITY REPORT — 27 NATUR AL CAPITAL

CONNECTED DEME DEME VISION OUR 2030 SUSTAINABLE CHALLENGE AND APPROACH TARGETS DEVELOPMENT GOALS Our oceans, seas, rivers and coastlines Explore sustainable Looking to the future, we plan to assess, are vital for a healthy planet and economy. business solutions reduce and restore the environmental It is undeniable that marine contracting impact of our operations and create aware- (seabed dredging, harbour extensions, Our Explore approach aims to protect, ness about preservation and restoration offshore wind turbine installation, under- revive and build natural capital. Our focus of ecosystems. Part of this will involve water cable laying, deep-sea harvesting, here is to prevent and reduce marine integrating nature-inspired design into etc.) alters the environment. For this reason, pollution and to sustainably revive and our project engineering. it is important to find solutions that safe- rebuild marine, coastal, inland waterway guard and improve marine and terrestrial and terrestrial ecosystems. We work with ecosystems by de-polluting, restoring and our customers during the project design enhancing our oceans, rivers, coastal areas, and engineering stages to integrate a ho- ports and land. There are two key elements listic approach to engaging with natural We use an integrated risk management system covering all relevant environmental aspects of our sites and operations to this sustainability theme: protecting ecosystems. Our activities include brown- biodiversity and avoiding (marine) habitat field redevelopment, soil decontamination, disturbance during our operations. treatment of polluted soil and dredged sediments, solutions for (marine) litter as well as the high-tech cleaning of water, with a focus on design, build and operation using innovative techniques.

Excel in our operations

Being aware that marine contracting has an impact on the environment, our Excel approach focuses on minimising the environmental impact of our operations by protecting biodiversity and avoiding habitat disturbance (e.g. by means of noise mitigation). Where possible, we strive for a net positive impact on biodiversity and ecosystems.

This includes ecosystem service as- sessments and novel nature-inspired designs. We use an integrated QHSE-S risk management system for managing of all the relevant environmental aspects of our sites and operations.

SUSTAINABILITY REPORT — 29 NATURAL CAPITAL We revitalise former industrial sites with our soil IN ACTION and water decontamination expertise

Green initiatives Environmental campaign

While striving for continuous improve- In 2019, the Green Initiatives Campaign ments to reduce the environmental impact was taken to the next level with the launch of our operations, we introduced ‘green of the DEME Environmental Campaign. initiatives’, which are employees' actions to Our Environmental Campaign focused on make changes or modifications to a process, energy consumption, air and soil emissions equipment or setup to minimise the and waste management. Posters, videos environmental impact of the project. and a quiz about the different topics were We are aiming to launch at least one green organised. Compared with 2018, we saw the initiative for every project with a duration number of green initiatives double. In 2020 longer than three months. The objective of a we plan to continue the campaign focusing green initiative is to increase environmental on other topics. awareness and to encourage projects to review processes and decrease the environmental impact. Examples include: (re) using recycled materials on our projects, installing solar panels on a project to provide green energy and organising local beach clean-ups.

105 green initiatives in 2019

22 minimising air emissions

4 preventing emissions in water

40 avoiding and reusing waste

5 preventing soil emissions

16 protecting fauna and flora

15 raising energy efficiency

3 "smart" use of natural resources

30 SUSTAINABILITY REPORT — 31 SUSTAINABLE INNOVATION

CONNECTED DEME DEME VISION OUR 2030 SUSTAINABLE CHALLENGE AND APPROACH TARGETS DEVELOPMENT GOALS Investments in infrastructure (transport, Explore sustainable We will continue to promote sustainable energy, water, ICT, housing, etc.) are crucial business solutions entrepreneurship within the organisation for achieving sustainable development, by building multi-stakeholder partnerships empowering communities worldwide Our Explore approach is to participate in that support sustainable R&D and embrace and facilitating sustainable growth. Our multi-stakeholder partnerships and inter- projects that promote the global energy challenge is to enable the concurrent use and intra-industry collaborations to drive transition, the circular economy and re- of oceans and seas for traditional mari- the transition towards holistic sustainable silient infrastructure for the future. time activities (shipping, fisheries, oil & solutions. gas, tourism, etc.) and for new, large-scale activities (offshore renewable energy, Excel in our operations aquaculture, nautical leisure, nature con- servation, etc.). Our Excel approach is to enhance scien- We embrace projects that promote the global energy transition, the circular economy and resilient infrastructure for the future tific research, upgrade technological capabilities and encourage sustainable innovation within our projects.

11 sustainable innovation initiatives will be implemented

SUSTAINABILITY REPORT — 33 SUSTAINABLE INNOVATION IN ACTION

DEMEx and DEME Combining hydrogen Innovation Diver expertise

In 2019, 11 innovation initiatives were In November 2019 DEME, Engie, Exmar, approved by the DEME Innovation Board. Fluxys, Port of Antwerp, Port of Zeebrugge These initiatives are a result of the DEMEx and WaterstofNet signed a cooperation innovation programme, aimed at enhancing agreement to bring their expertise our technological solutions and capabilities together in a coordinated way to take steps in line with a low-carbon, circular and sus- towards a Belgian hydrogen economy. The tainable world. All of the initial ideas were partners will make a joint analysis of the guided through a stage gate process of entire hydrogen import and transport discovery, ideation and final selection based chain to map out the financial, technical on a set of criteria. Every ‘idea owner’ had and regulatory aspects of the various to convincingly explain the contribution components in the logistics chain. As a the initiative makes to the SDGs. pioneer in the development, construction and financing of offshore wind farms, we In 2020 the DEME Innovation Diver pro- want to make full use of our expertise for gramme, targeting all our employees, will the production, transport and storage of focus on finding innovative solutions for a green hydrogen from renewable energy number of global challenges. sources.

Blauwe Cluster

We are taking a leading role in the Blauwe Cluster (Blue Cluster). This is an industry cluster that uses the “blue economy” as an engine of sustainable growth. In 2019, together with five business partners and Ghent University, we kicked off the BlueMarine³.com project. This project focuses on the biological, technical and economic feasibility of the local cultivation of seaweed, molluscs and shrimp. This is expected to lead to the creation of a multispecies cultivation pilot installation in Flanders that will in time accelerate large- scale production initiatives and aquaculture industry development.

In another research project launched in 2019 by a consortium including DEME, new concepts for commercial marine floating photovoltaics (MFPV) are being studied, monitored and evaluated. The MPVAqua project is aiming to be the first to set up offshore solar energy parks in the North Sea, possibly in combination with wind farms or aquaculture.

Both projects are being supported by the Flanders Innovation & Entrepreneurship Agency (VLAIO).

Investments in infrastructure, including transport, energy, water, ICT, housing, etc., are crucial for achieving sustainable development

34 SUSTAINABILITY REPORT — 35 WASTE AND RESOURCE MANAGEMENT

CONNECTED DEME OUR 2030 we can avoid it ending up in our seas SUSTAINABLE CHALLENGE TARGETS and oceans, where it is more difficult to DEVELOPMENT GOALS deal with the problem. Being a leader in Resource demand is increasing as a result We will continue to reduce waste in our environmental solutions, specialising in of the growing human population, making operations and maximise the reuse of soil, sludge and water remediation, it is SDG 12 essential for our future. Achieving waste streams to minimise our impact on a logical step to use our expertise to this goal requires the establishment of a the environment. cooperate actively on solutions for the circular economy to successfully manage global waste problem. soil, sediment, water and land to ensure the efficient use of natural resources. WASTE AND RESOURCE Tackle Ocean Plastics Reducing waste generation through MANAGEMENT travelling exhibition resource reduction, reuse and recycling is IN ACTION also an important element. While we investigate and develop Marine litter hunter technological solutions for the global Our challenge is to ensure efficient use of plastic soup challenge, we also want to resources and circular business processes To tackle the increasing problem of river raise awareness on the threat of plastic Our technology repurposes waste materials after treatment to maximise their efficient and circular use throughout our projects wherever possible. The materials that we pollution, we are starting a test phase with a pollution. A touring Tackle Ocean Plastics are mainly focused on are minerals (sand, ‘marine litter hunter’ on the River Scheldt in exhibition shows the impact plastic pol- gravel, concrete, etc.), metals (steel, Belgium. The test set-up consists of a fixed lution has on our ecosystem. In 2019 the etc.) and waste. Unfortunately, we often installation that passively collects floating exhibition travelled to various locations have limited influence on the materials and suspended litter from the water and a in Belgium, including a summer tour along we can use when building infrastructure mobile system that actively collects bigger the coast. due to local regulations that frequently pieces of litter. By collecting plastic in rivers prefer unused materials to sustainable alternatives.

DEME VISION Our touring Tackle Ocean Plastics Exhibition shows AND APPROACH the impact plastic pollution has on our ecosystem

Explore sustainable business solutions

Our Explore approach is to drive the resource transition by increasing the sustainable supply of resources. As we provide technical solutions for waste, soil, water and sediments, the shift towards a circular economy will be accelerated.

Excel in our operations

Our Excel approach to waste and resource management is to provide sustainable substitutes for building materials and minerals. Our technology repurposes dredged sediments and waste materials after treatment to maximise their efficient and circular use throughout our projects.

SUSTAINABILITY REPORT — 37 H E A LT H , SAFETY AND WELL-BEING

CONNECTED DEME DEME VISION OUR 2030 SUSTAINABLE CHALLENGE AND APPROACH TARGETS DEVELOPMENT GOALS Everyone has the right to work in a safe, Explore sustainable We are striving for zero accidents. We secure and healthy working environment. business solutions will continue our efforts by improving the Due to the nature of our work, many health, safety and well-being of everyone on projects take place in challenging and Our Explore approach to health, safety our vessels or at our sites. We have a safety sometimes even dangerous environments. and well-being is to develop future-proof and health action plan in response to global Workplace health, well-being and safety infrastructure that enhances prosperity, trends. This is translated into annual plans – for our own people, as well as subcon- well-being and a safe environment. Addi- specific to each activity line, and is updated tractors, suppliers, partners and other tionally, we set high safety and well-being and evaluated at least once every year after stakeholders – are therefore an ongoing standards for all the partners we work comprehensive reviews. priority. We take this responsibility seriously with, to make sure these standards and and seek to ensure that everyone on site safe practices are adopted and adhered QHSE-S KPIs are in place at all levels has a safe and secure workplace. to everywhere in the world. of the DEME organisation: activity lines, business units, projects, sites and vessels. Excel in our operations The QHSE-S KPIs include both leading (observations, inspections, timely closed Our Excel approach is to provide a safe, actions, toolbox participations) and lagging secure and healthy working environment indicators (timely reported incidents, for all the people involved in our opera- incident investigations, safety thermo- tions. In order to achieve this, we analyse meter) concerning safety and health. and manage every potentially dangerous situation related to our working activities and workplaces, so risks remain at an acceptable level.

We set the highest safety and well-being standards

SUSTAINABILITY REPORT — 39 HEALTH, SAFETY Further improving the health, safety and AND WELL-BEING IN ACTION well-being of everyone on our vessels and at our sites is our highest priority

QHSE-S Dashboard During 2019 we noted that our KPIs on timely reported incidents and incident The status of the DEME QHSE-S KPIs investigations were not being met. We will is published in a QHSE-S dashboard and therefore launch a DEME-wide, customised communicated to all employees on a incident investigation course in 2020. quarterly basis. The KPI performance is also discussed on a regular basis during As part of our (high potential) incident meetings of the relevant management trend analysis, we conduct an extensive teams, where, if necessary, specific actions Lost Time Incidents (LTI) analysis. Based and initiatives are identified. The overall on the findings, we set up specific action QHSE-S performance evaluation, including plans and campaigns. the KPI results, is managed by yearly management reviews. More detailed information is available in our DEME QHSE-S Performance Report.

QHSE-S WORLDWIDE PERFORMANCE DASHBOARD

HIPO 103 Maritime Operations SAFETY STICKY THERMOMETER MAN 89 Lifting Operations 2.00 16 Eyes 16 Head 25 Transport Operations 1,691 1.60 # INCIDENTS Working with Dry Earth 23 Moving Equipment 5 Chest 6 Shoulder 1.20 Getting safely to Given the growing popularity of electric Use of Machinery 11 Back 16 Arm 22 and Equipment your workplace bicycles, special attention was also given to

406 DEME 0.80 7 Internal employees who have switched to cycling to # HIPO 20 Working at Height reference target 44 Hand 1 Pelvis 0.40 Based on our High Potential Incidents work as they run a greater risk of falling and 18 Hot Works 0.20 (HIPO) trend analysis, the yearly Safety sustaining more severe injuries than those 12 Electrical Works 0.00 27 Leg 0 Knee Week of 2019 was focused on the theme with traditional bicycles. 0.24 ‘Getting safely to your workplace’, 10 Site and Traffic Management 20 Foot highlighting the specific risks of each type Employees could learn from five different 8 Pressurised Works of workplace. Stepping on board a crew scenarios through video presentations, #APPROVED transfer vessel from the quayside requires all covering different HIPO incidents GREEN ACTIVE 447,137 INITIATIVES 105 PROJECTS different work preparation than driving that actually occurred in the company. through an environmental remediation Additionally, posters were distributed to site, for example. use in toolbox meetings and to promote 14,605 the campaign.

23,191

381 1,174 1,218

Target 146,156 1,307 1,305 11,777 6,043 392

Toolbox Timely Reported Timely Closed Observations Inspections Incident Participations Incidents Actions Investigations

40 SUSTAINABILITY REPORT — 41 DIVERSITY AND OPPORTUNITY

CONNECTED DEME DEME VISION OUR 2030 SUSTAINABLE CHALLENGE AND APPROACH TARGETS DEVELOPMENT GOALS This theme promotes inclusive working Explore sustainable We aim to increase gender diversity and environments where everyone has the business solutions internationalisation across management same opportunities for promotion and positions, while improving employee under- training regardless of their gender, age, Our Explore approach to diversity standing of career opportunities, training religion, sexual orientation, nationality, and opportunity is to create decent job options and working conditions. Addition- culture, political conviction, mental or opportunities to enable employees to ally, we provide training opportunities physical ability. Given our planned growth, pursue a fulfilling and rewarding career and follow up personal career development a significant number of job openings need within the group. This policy will stimulate plans for all employees. to be filled based on competencies, skill economic development and reduce and development potential. Furthermore, inequality. we need to mitigate employee turnover as much as possible to reduce the possible loss Excel in our operations An inclusive workplace is key to engaging and retaining diverse talent of expertise across the company. Our Excel approach focuses on ensuring an inclusive workplace where all people are treated equally, with dignity and respect. Furthermore, we strengthen employee competencies by facilitating talent development and promoting sustainable entrepreneurship.

GENDER RATIO TOTAL MALE FEMALE

PERMANENT PERMANENT STAFF CREW & WORKERS

2,873 2 ,193 680 2,261 2,207 54

PERFORMANCE & CAREER DEVELOPMENT

Participation rate of the Participation rate of the PERMANENT PERMANENT STAFF 85% CREW 70% participating in the participating in the TimetoStaff programme. TimetoCrew programme.

42 SUSTAINABILITY REPORT — 43 A training module for supervisors on board our vessels was organised in 2019

DIVERSITY AND OPPORTUNITY IN ACTION

Performance and Onboarder career management The innovative Onboarder tool provides In 2019, a new indicator about intensive guidance for new employees in performance and career development order to strengthen their engagement. was introduced which reflects the The interactive digital tool helps the new participation rate in the performance employee achieve a smoothly phased measurement programme ‘Time To', introduction to the organisation. This tool our large-scale, competency-based per- is part of a larger onboarding programme formance tool. Managers use this tool with an induction and various more specific to monitor and evaluate all objectives training programmes. related to performance and the development of technical and management People management skills. In addition to the existing Time To training for senior crew for all staff, we rolled out Time To for crew in 2019. Participation rates in 2019 were We have set up a specific training module 85% for all staff and already 70% for our for supervisors on board our vessels. This crew. training course aims to provide better individual support for crew members and Top Employer Award to further improve teamwork. Also, our captains and chief engineers participated In 2019 DEME was awarded the Top in a series of workshops. Employer certification in Belgium. The certification process demonstrated that Work and stress prevention DEME provides exceptional employee conditions, nurtures and develops talent In 2019 we organised several sessions throughout all levels of the organisation about well-being at work. Specific modules and has demonstrated its leadership status focused on stress and burnout, detecting in the HR environment, always striving to and dealing with stress and the role of the optimise its employment practices and to supervisor in helping create stress-resilient develop its employees. teams within the company.

44 SUSTAINABILITY REPORT — 45 ETHICAL BUSINESS

CONNECTED DEME Excel in our operations ETHICAL BUSINESS SUSTAINABLE CHALLENGE IN ACTION DEVELOPMENT GOALS In order to comply with our Code, we have Ethical business practices include good introduced a due diligence procedure which Mandatory ethical governance of processes, strengthening ensures a thorough sanction screening of awareness training transparency and incorporating anti- third parties before we enter into a business corruption measures, among others. Con- relationship. We also have a clear policy of We reached 88% of our employees ducting business in an ethical way confirms carrying out all activities with integrity with the mandatory ethical awareness and strengthens our solid and sustainable and not tolerating any form of corruption. training, with figures remaining stable reputation. In our daily business we work Therefore, the second step in our due for 2019. However, we noticed that it together closely with both public officials diligence procedure is an anti-corruption is much harder to reach our crew and and third parties, such as (joint venture) screening of all third parties that we would to encourage them to take e-learning partners, subcontractors and recruitment like to do business with. This screening courses. Therefore, as from 2020 we agencies. We often operate in countries detects and prevents fraud and corruption will focus our mandatory e-learning on with a higher risk profile for non-ethical risks at a very early stage. all of our personnel, including our crew, practices (e.g. ranking low in the Corruption with the ultimate goal of reaching all Perceptions Index by Transparency Inter- of our employees onboard and ashore. national). The specificity of our activities OUR 2030 In addition, we will organise classroom requires us to be highly vigilant so that our TARGETS toolboxes, broadcasting the same ethical standards, as set out in our Code of content on ethical business awareness Ethics and Business Integrity, are adhered To raise ethical business and integrity to our crew as well. This will enable us to to at all times. awareness across the organisation, we positively influence their participation. will ensure that every employee has followed frequent training courses on Policy on raising and DEME VISION ethical awareness. We further ensure reporting integrity issues AND APPROACH decent working conditions for all involved and encourage social dialogue. For every Our policy on raising and reporting Explore sustainable project, we aim to guarantee that we only integrity issues, which is the equivalent business solutions work with stakeholders that abide by the of a whistleblowing policy, enables any same ethical standards. individual, employee or third party to Our Explore approach is to conduct report any misconduct or wrongdoing business with integrity and actively and involving DEME or its stakeholders in proactively prevent corruption or bribery in good faith, without fear of retaliation. The any form. Our commitment to ethical busi- Compliance Department reports to the ness is part of our STRIVE values. We see DEME Board of Directors and annually it as our obligation to notify third parties presents its action plan. we work with about DEME’s Code of Ethics and Business Integrity. 88% 0 Ratio of DEME staff that have received Number of idle days because Conducting business in an ethical way confirms and strengthens our solid and sustainable reputation our Compliance Awareness training of a strike or lock-out

46 SUSTAINABILITY REPORT — 47 LOCAL COMMUNITIES

CONNECTED DEME OUR 2030 surgeons, nurses, kitchen staff and clean- SUSTAINABLE CHALLENGE TARGETS ers. Mercy Ships is always looking for skilled DEVELOPMENT GOALS mariners and we promote this volunteering DEME operates in all of the world’s seas Giving back to the community is em- opportunity within our own organisation. and continents. Building collaborative bedded in our company culture through With the support of DEME4Life, maritime and sustainable partnerships in different our DEME4Life programme. In the next training can be funded, a new X-ray instal- locations around the world is essential decade leading up to 2030, our ambition lation can be purchased and contributions to the success of our operations. We en- is to continue to support a wide variety of are also made to medical programmes and deavour to give back to local communities social projects across the globe. infrastructure, among other things. and are involved in many social projects worldwide which are aligned with both World Clean Up our own core values and the Sustainable LOCAL COMMUNITIES Development Goals. IN ACTION On DEME projects worldwide, we are confronted with litter on a daily basis. For Mercy Ships World Clean Up, the global initiative for DEME VISION a cleaner planet, we launched a call to action AND APPROACH DEME has already been active on the to clean up litter from beaches, rivers, African continent for more than 50 years, forests and streets. Hundreds of employees Explore sustainable from Angola to Nigeria. Our strong presence volunteered to participate in the World business solutions on the continent is an ideal opportunity for Clean Up. In Nigeria, for example, a group of DEME4Life to support Mercy Ships. employees organised a litter hunt on the river Our Explore approach is to help banks at the Bonny and Onne project sites, increase the resilience and infra- This unique floating hospital is the world’s while in the Netherlands litter was cleaned structure of the communities where largest civilian hospital ship providing up from the beach in Vlissingen. we work to cope with economic, state-of-the-art care totally free of charge. environmental and social challenges. Because over 50% of the population in Africa Many of our employees come from local lives within 100 miles of the coast, Mercy communities we operate in or spend Ships’ modern hospital ship can put into a years working in them, so they have a nearby port and people can receive first- good insigh into the challenges these rate medical care. The 400-strong crew communities face. We leverage this of volunteers includes captains, sailors, experience to make a positive impact.

Excel in our operations

Our Excel approach is to build collaborative relationships with local communities through consultation, engagement and participation. By starting these relationships when preparing for a new project or investment, we can better understand local needs and concerns, which we can then address in our decision-making process.

Mercy Ships’ modern hospital ship can put into a nearby port We build collaborative relationships with local communities in Africa and people can receive through consultation, engagement and participation first-rate medical care

48 SUSTAINABILITY REPORT — 49 GOVERNANCE AND REPORTING 51 PRACTICES GOOD GOVERNANCE EXPLORE SUSTAINABLE EXCEL EVERY STEP OF BUSINESS IN OUR SOLUTIONS OPERATIONS TH E WAY Provide solutions and build partnerships EXECUTIVE Reduce the carbon and environmental to drive the change towards a low-carbon, footprint of our operations circular and resilient society. COMMITTEE and be a top employer.

Our sustainability governance model is discussed at the Board of Directors The members of the Sustainability Board focuses on two dimensions: meetings. are: Luc Vandenbulcke, Alain Bernard, Philip 1 Explore sustainable business solutions. Hermans, Hugo Bouvy, Els Verbraecken, STRATEGIC OPERATIONAL OBJECTIVES, OBJECTIVES, 2 Excel in our operations. The Sustainability Board provides Eric Tancré, Theo Van De Kerckhove and TARGETS TARGETS guidance on both strategic and operational several senior managers, including the Chief AND KPIs AND KPIs There are four main layers within our sustainability topics to ensure that all stra- Human Resources Officer, the Head of the governance structure: the Executive tegic and operational decisions are aligned Technical Department and the Manager of SUSTAINABILITY BOARD Committee, Sustainability Board, with our values, sustainability strategy and the Environmental activity line. BUSINESS Sustainability Team and Process objectives. DEVELOPMENT EXTERNAL ACTION EMPLOYEE DECISIONS STAKEHOLDERS PROGRAMME Owners of the different activity lines The Sustainability Team is responsible ENGAGEMENT CONSULTATIONS DEVELOPMENT and supporting services. In 2019, the Sustainability Board met for embedding sustainability into our “Conduct business with every two months to evaluate the sustain- business operations. Together, the integrity and invest in Every year, the Executive Committee ability performance of our project portfolio Sustainability Team: impact solutions” reviews and approves our sustainability and the progress made towards our objec- action programmes, along with the related tives from both a strategic and operational - translates the sustainability strategy objectives and targets. The programme perspective. into clear objectives, targets and KPIs; SUSTAINABILITY BUSINESS - drives and facilitates the development GROWTH PLAN TEAM IMPLEMENTATION OF of the sustainability action Innovations ACTION PROGRAMMES programmes; Investments Tactics and execution - creates awareness across the Partnerships Budget & Resources organisation; Tender selections - engages with external stakeholders; - organises the monitoring of key LEARNING & FEEDBACK LEARNING & FEEDBACK LEARNING & FEEDBACK LEARNING & FEEDBACK results; - reports on performance and progress. SDG PROJECT PORTFOLIO ACTIVITY ANALYSIS & EVOLUTION The activity lines and supporting LINES Sustainability Impact services implement the strategic and PROCESS MONITORING operational sustainability objectives, Business risks & Opportunities SUPPORTING Key Results targets and measures. Innovation Level SERVICES Reporting

FROM LEFT TO RIGHT

Eric Tancré | Managing Director Activity Line Infra, Hugo Bouvy | General Manager DEME Offshore Managing Director Activity Line Dredging Els Verbraecken | Chief Financial Officer Alain Bernard | Executive Chairman Board of Directors Philip Hermans | Managing Director Activity Line Dredging Theo Van De Kerckhove | Chief Operating Officer Luc Vandenbulcke | Chief Executive Officer SUSTAINABILITY GROWTH MODEL Bart Verboomen | Managing Director Technical Department, Dirk Poppe | Area Director Eastern Europe and Russia, General Manager Baggerwerken Decloedt & Zoon Managing Director Activity Line Environmental Hans Casier | Chief Human Resources Officer Filip Vandeputte | Sustainability Manager Jiska Verhulst | Sustainability Director

52 SUSTAINABILITY REPORT — 53 REPORTING PRACTICES

SCOPE OF INFORMATION There are no significant changes in the DEME includes carbon dioxide (CO2),

sustainability themes compared to our nitrous oxide (N2O) and methane (CH4) The information in the Sustainability last report. However, in 2019, we took large emissions in its carbon footprint. Report 2019 covers DEME and its sub- steps to improve and increase the amount sidiaries. For a complete overview of our of quantitative, non-financial information In the selection of emission factors or subsidiaries, we refer to our Financial for every sustainability theme. We have the conversion factors (linking fuel consumption

Report 2019. Unless stated otherwise, ambition to have this information externally to CO2eq emissions), sector-specific references to DEME should be read as verified in the future. emissions factors from the IMO are used references to the entire DEME Group. for vessels. For all other equipment, the

For questions related to the content of worldwide (direct CO2) emission factors of the report, please contact Defra (the UK Department for Environment, REPORTING PERIOD [email protected] Food and Rural Affairs) will be used. For the Netherlands and Belgium, dedicated The Sustainability Report 2019 was emission factors are used in accordance

published on 30 March 2020 and covers the SCOPING AND with the CO2 Performance Ladder period from January 1 to December 31, 2019. CALCULATION (https://www.co2emissiefactoren.nl/). We are aiming to publish the Sustainability METHODOLOGIES OF THE SUSTAINABILITY Report on an annual basis. FIGURES PROVIDED Headcount GHG emissions REPORT CONTENT Here we report the total number of DEME follows the Greenhouse Gas permanent employees on DEME’s payroll This report has been prepared using the Protocol (ISO14064) and reports its GHG on December 31st, 2019. Temporary GRI principles. In line with these principles, emissions according to the operational employees and subcontractors are not we have provided a GRI Content Index, which approach for three scopes: included. The list of statutory companies is available on demand. The report covers which are considered is limited to con- eight sustainability themes on which DEME - Scope 1 solidated companies in accordance with Group has an economic, environmental or includes all direct GHG emissions. Direct IFRS accounting rules (joint ventures and social impact: GHG emissions occur from sources that associates are excluded). are owned or controlled by DEME (e.g. - Climate and energy combustion of fuel and natural gas). - Natural capital - Sustainable innovation - Scope 2 - Waste and resource management accounts for GHG emissions from the - Health, safety and well-being generation of electricity purchased by - Diversity and opportunity DEME. Scope 2 emissions physically - Ethical business occur at the facility where electricity is - Local communities generated.

- Scope 3 is a reporting category for all other indirect emissions. These emissions are a consequence of DEME’s activities, but occur through sources not owned or controlled by DEME. Here we only report the emissions which result from business air miles.

54 SUSTAINABILITY REPORT — 55 Forward-looking Statements This sustainability report may contain forward-looking statements. Such statements refer to future expectations and other forward-looking perceptions that are based on the management’s current views, estimates and assumptions concerning future events. Such forward-looking statements, by their nature, are subject to known and unknown risks, uncertainties and other factors, which may cause the actual results to be materially different from those contemplated, projected, forecasted, estimated or budgeted whether expressed or implied, by these forward-looking statements contained in this sustainability report.

DEME neither undertakes to update any forward-looking statements to reflect the actual results, nor assumes any obligation to correct inaccurate data, information, conclusions or opinions published by third parties in relation to this or any other report or press release issued by DEME.

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