Our double materiality assessment identified material impacts, risks, and opportunities (IROs) at Group level and across our entire business activities. Some of the IROs identified cover all stages of the value chain, from upstream procurement of construction materials to the company’s own operations and downstream activities. The material IROs confirm and reinforce HOCHTIEF’s strategic priorities. Even before carrying out the double materiality assessment, our strategy was already geared to promoting sustainable construction and infrastructure projects wherever possible, integrating high environmental and social standards ever more closely into our daily work, and developing innovative solutions to construction challenges.

The results of the materiality assessment underscore the urgency and relevance of these issues to our business model, value chain, and decision-making processes and have prompted us to redouble our existing efforts—for example, by integrating ESG criteria more closely into our procurement strategies. Furthermore, by regularly adapting our strategy to the material IROs, we are able to operate successfully in an increasingly sustainability-oriented market environment. Particularly given the growing importance of climate-friendly construction practices, resource-efficient technologies, and digital innovations, we will work systematically to maximize these opportunities and proactively address potential sustainability risks such as impacts of climate change.

Positive impacts: HOCHTIEF contributes to reducing environmental impacts largely by implementing sustainable construction practices, promoting energy-efficient technologies, and using environmentally friendly materials. Initiatives to promote the circular economy and sustainable resource use also help protect biodiversity and reduce waste. Negative impacts: Negative environmental impacts include environmental pollution such as GHG emissions, consumption of natural resources along the value chain, and potential adverse effects of our business activities on water resources and habitats. Potential impacts: Potential future impacts could result from unexpected environmental incidents, changes in climatic conditions, or new regulatory requirements that require adjustments to established construction practices. In the social dimension, various thematic priorities have been identified with positive and negative impacts on the company’s workforce, value chain workers, affected communities as well as consumers and end-users. These include both actual and potential impacts. One material opportunity was also identified for the company’s workforce. We regard becoming an even more attractive employer for skilled workers as a material opportunity. By this we mean in particular people on the labor market who have the skills and qualifications required for our business activities.

The impacts described in the following are directly linked to the business strategy and HOCHTIEF’s business model. Sustainability is an integral part of the strategy, as is reflected in the incorporation of environmentally friendly technologies and practices as well as in the promotion of innovation to minimize negative and advance positive impacts.

Time horizons of the impacts: Short-term impacts include environmental and social impacts that can be expected within one year. Medium- and long-term impacts include environmental and social impacts that can be expected within the next five years or beyond.

The company’s share of the material impacts: Through its construction and infrastructure projects, HOCHTIEF directly contributes to the impacts identified. As working with business partners and supply chains can amplify these impacts, sustainable sourcing practices and close stakeholder engagement are essential to advancing positive and minimizing negative impacts.