Taskforce on Nature-related Financial Disclosures (TNFD)

Ferrovial recognizes the key role that biodiversity plays in providing services that support the economy and social well-being. We understand our responsibility to the natural environment and are committed to the protection and conservation of nature.

To this end, Ferrovial has worked to implement the recommendations of the Taskforce on Nature-related Financial Disclosures (TNFD) in 2024, aligning our strategy and integrating natural capital into decision-making processes.

For the application of these recommendations, our methodology is based on different international standards and guidance –Natural Capital Protocol, Science-Based Targets for Nature (SBTN), GRI 101 Biodiversity, ESRS E4 Biodiversity and ecosystems, Common International Classification of Ecosystem Services (CICES) and Global Biodiversity Framework (Kunming-Montreal)-and uses software tools to facilitate environmental management –ENCORE, o WWF Biodiversity Risk Filter-.

The LEAP (Locate, Evaluate, Assess and Prepare) approach is used, having a broad scope and following the following steps: location of priority areas and activities that interact with nature; identification, evaluation and prioritization of impacts and dependencies; identification and evaluation of risks and opportunities; establishment of metrics for the management of these issues and integration of nature into the company’s strategy.

Priority locations

Priority locations are defined by different and recognized standards as those that are located in or near sensitive areas. These sensitive areas are places of importance for biodiversity, ecosystem integrity, areas of water stress, areas important for the provision of ecosystem services (indigenous communities and FAO World Agricultural Heritage systems). Priority locations are those infrastructures where Ferrovial is the concessionaire and long-term owner and interacts with nature in sensitive areas.

Location	Country
Isle of Wight	UK
Milton Keynes	UK
Calatayud – Alfajarín	Spain
San Cugat del Vallés – Manresa	Spain
Beltway – Gainesville	US
Dallas	US
Dalaman	Turkey
Bio Bio – Araucanía	Chile
Coquimbo	Chile
Gerena	Spain
Utebo (Zaragoza)	Spain
Ceuta	Spain
Drachowo	Poland
Kamieńsk	Poland

Dependencies

Ferrovial seeks to manage the ecosystem services on which it depends to carry out its activities. An initial exercise has been carried out to identify and evaluate dependencies based on ecosystem services on which different Ferrovial businesses depend to a greater or lesser degree to carry out their activities.

This is taken into account for decision-making processes and the development of different management and action plans.

The main dependencies of the company’s activities are the provision of natural resources, such as water, and regulating services, mainly climate regulation and proper soil structure (no erosion or landslide problems). These dependencies could potentially lead to physical risks (extreme events) and technological risks related to the adaptation of design or materials to offer greater resilience.

Impacts

The company aims to minimize the impact on the environment and integrate its infrastructures with the landscape.

Ferrovial has identified, evaluated and prioritized its main impacts taking into account their magnitude, extent, irremediability, frequency and probability of occurrence.

The main impacts that the company’s activities could generate are:

• Greenhouse gas emissions
• Use of the terrestrial ecosystem or land occupation, potentially leading to land degradation, an impact on the condition of ecosystems and habitat fragmentation
• Generation of large volumes of waste.

These impacts may potentially generate reputational and legal risks.

Most projects are subject to an environmental impact assessment (EIA) and the corresponding environmental impact statement (EIS), which identifies negative impacts and establishes the minimizing and corrective measures to be applied. In this way, Ferrovial manages its potential impacts by applying the criteria of the impact mitigation hierarchy, as established in its Biodiversity Policy.

Furthermore, in order to ensure responsible management of biodiversity, Ferrovial has developed a methodology and an internal tool for calculating the net debt of natural capital called Integrated Natural Capital Assessment (INCA), based on the automation of the calculation of the impact of infrastructures on biodiversity and ecosystem services.

Risks

The identification of nature-related risks is based on an assessment of dependencies and impacts on nature.

Biodiversity risk assessment follows Ferrovial’s risk identification and assessment process, called Ferrovial Risk Management (FRM), managed by the Compliance and Risk department, promoted by the Management Committee and implemented in all the company’s business units, under the periodic supervision of the Audit and Control Committee of the Board of Directors.

Ferrovial has identified and prioritized the company’s nature-related risks, based on impacts and material dependencies. These risks have been evaluated for three time horizons (short, medium and long term) and different nature scenarios (proposed by TNFD). The main risks of the company’s activities are:

• Technological risks related to the adaptation of design or materials to offer greater resilience
• Reputational risks due to the alteration of habitats of protected species
• Legal risks resulting from the tightening of environmental regulations related to the protection of certain habitats and species or waste management.
• Physical risks, which may affect infrastructure such as extreme events and other external factors: extreme storms, landslides and erosion.

Ferrovial’s risk process makes it possible to identify risk events in advance and evaluate them, carrying out an annual review and establishing mitigation measures.
Furthermore, Ferrovial has developed a methodology & tool to analyze and assess physical climate-related risks (ADAPTARE), which includes nature-related risks.

Opportunities

As for the opportunities, Ferrovial has been positioning itself for years as a company that offers infrastructure and focuses on new business opportunities that enhance nature conservation such as water treatment utilities. We have also developed methodologies and tools, INCA and ADAPTARE, in order to offer better solutions to our clients to boost biodiversity and ecosystem conservation.

Ferrovial invests in these new opportunities and nature-based solutions to fight against the degradation of ecosystems and natural capital that could entail operational, economic and reputational risks for the development of business activities.