SUSTAINABILITY REPORT 2018 THE SOCIAL FOOTPRINT OF DARS d.d. DARS d.d. IS A COMPANY OF DARS d.d. is well aware of its The Slovenian Government responsibility to people, the introduced toll differentiation based STRATEGIC IMPORTANCE FOR environment and society. Therefore, on EURO emissions classes on 1 THE REPUBLIC OF SLOVENIA it exercises social responsibility in a January 2010 with the Decision AND REPRESENTS THE sustainable manner in all projects determining the toll adjustment LARGEST CAPITAL INVESTMENT and long-term plans at all levels. factors for vehicles whose maximum (UNDER THE BALANCE SHEET Ambitious and clearly defined goals permitted weight exceeds 3,500kg. ensure that the public will continue to Vehicles with lower emissions of BOOK VALUE CRITERION) IN identify DARS d.d. as a responsible and harmful particles (higher EURO TRANSPORT. forward-looking company. emissions classes) are entitled to a reduced tariff. Corporate income tax In EUR 2015: € 12,009,362 2016: € 19,203,477 2017: € 32,981,826 12,009,362 19,203,477 32,981,826 33,075,718 2018: € 33,075,718 2015 2016 2017 2018 VAT In EUR Employees are proud to work for DARS 2015: € 67,837,287 and perform their work in a responsible 2016: € 70,538,253 and committed manner, being the mirror 2017: € 86,370,473 67,837,287 70,538,253 86,370,473 81,890,482 of the Company. That way, employees 2018: € 81,890,482 2015 2016 2017 2018 strengthen their self-respect, self- Payment of interest In EUR confidence and loyalty, thus enhancing 2015: € 50,020,548 the Company’s reputation. 2016: € 41,234,923 2017: € 40,414,027 50,020,548 41,234,923 40,414,027 40,624,860 2018: € 40,624,860 2015 2016 2017 2018 Investments in motorway development and reconstruction In EUR 2015: € 79,649,113 2016: € 104,041,710 2017: € 109,936,034 79,649,113 104,041,710 109,936,034 152,776,606 2018: € 152,776,606 2015 2016 2017 2018 Toll revenue – freight traffic In EUR (and the Karavanke tunnel) 2015: € 188,090,206 2016: € 191,007,178 188,090,206 191,007,178 250,473,614 263,088,934 2017: € 250,473,614 2 2015 2016 2017 2018 2018: € 263,088,934 Number of employees Number 2015: 1242 2016: 1247 2017: 1240 1242 1247 1240 1232 2018: 1232 2015 2016 2017 2018 Sponsorships and donations In EUR 2015: € 135,279 2016: € 121,409 2017: € 165,094 135,279 121,409 165,094 148,934 SUSTAINABILITY REPORT 2018 2018 REPORT SUSTAINABILITY 2018: € 148,934 2015 2016 2017 2018 ENVIRONMENTAL FOOTPRINT OF DARS d.d. THE COMPANY IS COMMIT- The implementation of European projects for traffic management and control - Establishment of interoperability: C-Roads Project TED TO ENVIRONMENTALLY - Traffic control and management systems and the exchange of traffic FRIENDLY ACTIONS IN ALL information: Crocodile 2 Project STAGES OF OPERATIONS AND - Filling stations for electric vehicles throughout the motorway network: CONTINUOUS REDUCTION OF Central European Green Corridors Project ADVERSE ENVIRONMENTAL IMPACTS. The DarsGo – ELECTRONIC TOLLING SYSTEM and Electricity consumption In MWh impacts on reduced fuel consumption by MW and 2015: 25,735 MWh EW users and consequently reduced C02 emissions 2016: 25,181 MWh 25,735 25,181 24,526 23,598 and other air contaminants (NOx and PM2.5) since the 2017: 24,526 MWh deployment of the tolling system on 1 April 2018. 2018: 23,598 MWh 2015 2016 2017 2018 The deployment of the DarsGo system is a significant DARS d.d. ranks among the environmental measure in the Republic of Slovenia. large energy consumers in Slovenia based on its annual Reduced fuel consumption by MW and EW users energy consumption in 2018. 2018: 115,000 MWh or 414 TJ Fuel consumption In MWh Reduced CO emissions by MW and EW users 2 2015: 16,384 MWh 2018: 29,986,000 kg CO2 2016: 17,538 MWh 16,384 17,538 16,369 18,662 Reduced NOX emissions from fuel by MW and EW users 2017: 16,369 MWh 2015 2016 2017 2018 2018: 84,000 kg 2018: 18,662 MWh Reduced PM emissions by MW and EW users 2.5 Grit consumption In tonnes 2018: 1700 kg 2015/2016: 17,700 tonnes 2016/2017: 12,111 tonnes 2017/2018: 44,804 tonnes 17,700 12,111 44,804 15,233 2018/2019: 15,233 tonnes 2015 2016 2017 2018 In kg CO /km Carbon footprint 2 2015: 20,133 kg CO2/km 2016: 20,132 kg CO2/km 20,133 20,132 19,711 19,575 2017: 19,711 kg CO2/km 2015 2016 2017 2018 2018: 19,575 kg CO2/km Index Customer satisfaction 3 index 2015: 77.9 2016: 75.6 77.9 75.6 76.6 81.4 2017: 76.6 2015 2016 2017 2018 2018: 81.4 SAFE MOTORWAYS REQUIRE Length of reconstructed In km RENOVATION. carriageways and junctions 2015: 44.41 km 2016: 37.06 km 44.41 37.06 26.54 50.28 2017: 26.54 km 2015 2016 2017 2018 2018: 50.28 km 2018 REPORT SUSTAINABILITY TABLE OF CONTENT SOCIAL FOOTPRINT OF DARS D.D 2 ENVIRONMENTAL FOOTPRINT OF DARS D.D. 3 I.1 LETTER FROM THE MANAGEMENT 6 I.2 NON-FINANCIAL STATEMENT OF DARS D.D. 8 I.3 PRESENTATION OF DARS D.D. 17 I.3.1 Company profile 17 I.3.2 Company mission, vision, values, strategic policies and integrated management system policy 18 I.3.3 Activities of DARS d.d. 21 I.3.4 Governance structure 23 I.3.5 Motorways and expressways in the Republic of Slovenia 24 I.3.6 Investments in motorway development and reconstruction 25 I.3.7 Self-assessment under the EFQM excellence model 31 I.3.8 Integrated management system 31 I.4 ABOUT THE REPORT 33 I.4.1 Sustainability reporting 33 I.4.2 The realisation of strategic goals of sustainable development at DARS d.d. 33 I.4.3 The Company and its stakeholders 38 I.4.4 Inclusion of stakeholders and materiality matrix 39 I.4.5 Corporate integrity and compliance 42 I.4.6 Risk management 45 I.5 PERFORMANCE REPORT 47 I.5.1 Economic spotlights from operations 47 I.5.2 Marketing and responsible attitude to customers 50 I.5.3 Traffic and safety concerns 61 I.5.4 Projects concerning traffic management and safety concern 67 I.5.5 Sustainable relationships with employees 86 I.5.6 Responsibility towards the environment 98 I.5.7 Inclusion in broader society 130 I.5.8 Responsibility to suppliers/contractors 134 I.5.9 Communications 138 I.5.10 Persons responsible for communications, content and data in the Report 140 I.5.11 Supervisory Board, Management Board, project teams, committees and other Company bodies 142 I.6 STATEMENT ON EXTERNAL ASSURANCE OF THE SUSTAINABILITY REPORT 144 I.7 GRI INDICATORS 145 4 SUSTAINABILITY REPORT 2018 2018 REPORT SUSTAINABILITY ACRONYMS AND ABBREVIATIONS MW Motorway C-ROADS International pilot project to introduce cooperative systems for real-time information transfer DARS d. d. Motorway Company in the Republic of Slovenia DarsGo Electronic tolling system in free traffic flow for heavy vehicles with a maximum permissible weight exceeding 3500 kg (ETS in FTF) DKOM National Review Commission for Reviewing Public Procurement Procedures NSP National spatial plan DRSI Slovenian Infrastructure Agency EBITDA Earnings Before Interest, Taxes, Depreciation and Amortization EFQM European Foundation for Quality Management – Business Excellence model or Slovenian Business Excellence Prize GRI GS Global Reporting Initiative Global Standards EW Expressway ILO ILO Convention ITS Intelligent transport systems Concession Contract Concession contract for motorway management and maintenance in the Republic of Slovenia IBC International border crossing MOP Ministry of the Environment and Spatial Planning MZI Ministry of Infrastructure MAM Maximum authorised mass CC Control centre NMCP National Motorway Construction Programme NPB Noise protection barriers BPD/ED Building Permit Design/Executive Design TIC Traffic Information Centre for national roads AADT Average Annual Daily Traffic FTF Free traffic flow R3 Motor vehicles with two or three axles with a maximum permissible weight exceeding 3,500kg and groups of motor vehicles with two or three axles with a maximum permissible weight exceeding 3,500kg. R4 Motor vehicles with more than three axles with a maximum permissible weight ex- ceeding 3,500kg and groups of motor vehicles with more than three axles with a max- imum permissible weight exceeding 3,500kg. ROE Return on Equity RS Republic of Slovenia SDG Sustainable Development Goals SSH The Slovenian Sovereign Holding TEN-T Trans-European Transport Network ZDARS Motorway Company in the Republic of Slovenia Act (ZDARS) (Official Gazette of the 5 Republic of Slovenia, No. 20/2004 – official consolidated text 1) ZDARS-1 Motorway Company in the Republic of Slovenia Act (ZDARS-1) (Official Gazette of the Republic of Slovenia, No. 97/2010) ZGD-1J Companies Act (Official Gazette of the Republic of Slovenia, No. 15/2017 of 31 March 2017) ZJN Public Procurement Act ZPKROD Act Regulating the Guarantee of the Republic of Slovenia for the Obligations of DARS d.d. for Loans and Debt Securities Raised or Issued for Refinancing the Existing Debts of DARS d.d. ZUJF Fiscal Balance Act (Official Gazette of the Republic of Slovenia, No. 40/2012) SUSTAINABILITY REPORT 2018 2018 REPORT SUSTAINABILITY I.1 LETTER FROM THE MANAGEMENT To whom it may concern, and became a strategic operator; the motorway systems already PLANET EARTH IS OUR built were integrated into the smart transport corridors with a fo- ONLY HOME cus on safety and fluidity. The Company strives for the responsible and effective management, maintenance and construction of the The Sustainability Report for 2018 gives an insight into the efforts motorway networks, thus ensuring the conditions for their safe use.