Boskalis

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Royal Boskalis Westminster N.V.
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Quick Facts
TypePublic
sectorDredging & other maritime services
Headquarters (Benelux Organization)Papendrecht, Netherlands
Year of Origin1910
Emissions (Scope 1&2)1.078 Megatons of CO2 (2021)
Total RevenueEUR 2.957 million (2021)
Stock ExchangeAmsterdam (Euronext)
Key PeoplePeter Berdowski (CEO), Carlo van Noort (CFO)
Number of employees10,250 (2021)
Subsidiaries
  • Among others,
  • Boskalis Dragamex
  • Cofra
  • Boskalis Australia
  • Boskalis Nederland
  • Boskalis Environmental
  • SMIT Salvage
  • Boskalis Hirdes
  • Boskalis Russia
  • Boskalis Rockfall
  • Boskalis Terramare
  • Boskalis Westminster
  • Nigerian Westminster Dredging
  • Irish Dredging
  • Llanelli Sand
  • Boskalis Brazil

Royal Boskalis Westminster N.V., stylized as Boskalis, is one of the biggest dredging companies of the world. Traditionally, Boskalis' core activity is dredging, but today they also offer services such as the construction and maintenance of inland and offshore infrastructure, maritime services and contracting to the offshore energy sector, towage services, emergency response, and salvage services. Boskalis was established in 1910 by a group of families in Sliedrecht, the Netherlands. Its headquarters are located in Papendrecht, the Netherlands.

Company Structure

In 1971 the company went to the stock market and became a public company.[1] Present day, HAL Investments BV is by far Boskalis’ biggest shareholder owning just over 45% of the share.[2] In March 2022, the investment company announced that they want to take over Boskalis.[3] According to HAL, Boskalis is better off as a private company. Boskalis is examining the bid.

Boskalis has a history of expanding to the foreign market and of diversification by providing different services. These strategies did not turn out to be a success. At the beginning of the 80s, the company was almost bankrupt. By focusing again on dredging and selling all the services that did not have anything to do with that, the company could survive.

Since 2000, Boskalis is again looking for ways to grow, although it focuses on maritime services. Present day, Boskalis has over 130 group companies in around 40 countries over the world. Furthermore, Boskalis has over 25 joint operations.

Boskalis uses a two-tier Board model, which means that management and supervision are segregated. The company has a Group Management, consisting of the members of the Board of Management and the Group Directors. The Group Management meets on a regular basis so that the Board of Management can obtain a full overview of the activities in the divisions of the company, to align the day-to-day management across the company and to ensure optimal exchange of information between the divisions.

Board of Management

The Board of Management consists of four members and is chaired by Peter Berdowski. It is responsible for the day-to-day management of the business. Furthermore, it is responsible for the continuity of the company and for setting out and realizing the company’s strategy. The remuneration is reported differently in the Annual report and the Remuneration report. The following numbers are from the Annual report 2021.

Board of Management [2]
Name Function Remuneration x1000 EUR
Peter Berdowski Chairman 2,935 EUR
Theo Baartmans Member 1,865 EUR
Bart Heijermans Member 1,409 EUR
Carlo van Noort Chief Financial Officer 1,362 EUR

Supervisory Board

The Supervisory Board is responsible for supervising the Board of Management on the strategy and on management performance, and for advising the Board of Management. There are three committees that the Supervisory Board works in: the Audit Committee, the Remuneration Committee and the Selection and Appointment Committee.

Supervisory Board[2]
Name Function Remuneration x1000 EUR
Jeroen van der Veer Chairman 73 EUR
Jack de Kreij Deputy Chairman 57 EUR
Daan Sperling Member 58 EUR
Jacqueline Tammenoms Bakker Member 54 EUR
Jaap van Wiechen Member 58 EUR
Renée Jones-Bos Member 52 EUR

Accountant

From the 2022 financial year on, KPMG is Boskalis’ auditor.[4] Before, the external auditor was Ernst & Young Accountants LLP (EY), but the maximum term of appointment has expired. KPMG and Ernst & Young are together with PwC and Deloitte the ‘Big Four’.[5] These multinationals are responsible for 60 percent of the mandatory audits in the Netherlands. Of the market listed companies, they even have nine out of ten as clients. KPMG has a history of flaws.

Main Activity

The company is divided into three segments: Dredging & Inland Infra, Offshore Energy, and Towage & Salvage.[2] Dredging and inland infra account for the biggest part of the revenue, with more than 50%. Close second is the offshore energy segment with around 43%. Last comes towage and salvage with around 5%.

Dredging is traditionally the core activity of Boskalis. Dredging is the activity of removing material from a water environment. This material can be reused elsewhere. According to Boskalis, projects that fall under this segment can consist for example of the construction, maintenance and deepening of ports and waterways; of land reclamation; of coastal defense and riverbank protection; of the extraction of minerals; and of soil improvement. In the Netherlands, Boskalis is also involved in dry infrastructure projects such as the construction of roads and bridges.

The Offshore Energy segment consists of projects involved in oil, gas, and renewable energy companies. Boskalis is for example involved in the engineering, construction, maintenance and decommissioning of oil and gas (LNG) facilities, offshore platforms, pipelines, cables and offshore wind farms.

Towage is the service of pulling a boat along by another boat. The joint ventures Keppel Smit Towage and Smit Lamnalco are the key players in this. They have over 200 vessels to provide assistance to oil and chemical tankers, LNG carriers, container ships and more. Salvage is the service of providing assistance to vessels in distress and of removing shipwrecks and hazardous substances.

Government

Rijkswaterstaat was and still is an important commissioning party for Boskalis.[1] Rijkswaterstaat is part of the Dutch Ministry of Infrastructure and Water Management and in charge of the design, construction, management and maintenance of the main infrastructure facilities in the Netherlands.[6] Boskalis has a long history of becoming less dependent on Rijkswaterstaat. In doing so, it entered the foreign market with varying success.

In 1978, Boskalis received the designation ‘Royal’.[7] This designation is awarded by the king or queen and symbolizes the respect, appreciation and trust towards the recipient.[8] The most important obligation following the designation is that the recipient will refrain from anything that will damage their reputation.[9]

Paris Agreement untill Today

What has company done or refused to do since the Climate Accord of Paris? Per company, where applicable refer to research on the benefits of fossil companies in the form of subisidies etc.

Financial Results since 2015

This table is meant to indicate that the companies have plenty of money to make their company more sustainable. Clearly distinguish between Dutch data and international data.

Financial situation
Year Revenue Profit Dividend
2015[10] 3.240 Billion EUR 3.54 EUR 1.60 EUR
2016[11] 2.596 Billion EUR 2.16 EUR 1 EUR
2017[12] 2.337 Billion EUR 1.15 EUR 1 EUR
2018[13] 2.57 Billion EUR 0.63* EUR 0.50 EUR
2019 [14] 2.645 Billion EUR 0.56 EUR 0.50 EUR
2020[15] 2.525 Billion EUR 0.69* EUR 0.50 EUR
2021 [2] 2.957 Billion EUR 1.16 EUR 0.50 EUR (proposal)

Scandals and controversies

2006 - 2007 Mauritius

In 2006 and 2007, Boskalis made six payments to the former port director of Mauritius, Siddick Chady.[16][17] This was done in order to acquire dredging contracts in Port Louis. A total of nearly 89 thousand euros in bribes were transferred to his bank accounts in Singapore and the UK. In May 2013, Boskalis made a full confession of guilt before a court in Mauritius.2011 - 2017 Poland

2011 - 2017 Poland

In the shipyard of company Stocznia in the Polish city of Police, North Koreans have been employed through human trafficking since the beginning of 2011 until the end of 2017.[18] Different Dutch shipbuilders, including Boskalis, had at least 33 ships made at the yard. The North Koreans who worked at the shipyard were paid little or nothing for their work. The North Koreans were recruited by the regime with the promise of high wages and higher status. They made days of twelve hours or longer and received little leave. Boskalis confirmed that 'four identical hulls' had been taken from the Partner shipyard, which were further finished in the Netherlands into full-sized vessels. According to a spokesperson, Boskalis was not aware that North Korean forced laborers were working there.

2020 - Indonesia

Boskalis was working near the city of Makassar, on the Island of Sulawesi, to expand the port.[19] Dredgers take sand from the sea, and deposit it miles away. Off the coast of the Indonesian island, dozens of fishermen protested against Boskalis' dredging activities for weeks. Because of the dredging activity, the fish population drops and the water is clouded. Locals said they were losing income and feared longer-term damage. Boskalis stated that the fishermen have been informed of the dredging project and are being financially compensated. However, the fishermen did not seem to know anything of this.

2012 - 2020 Kenya

From August 2012 till August 2013, Boskalis International B.V. was a sub-contractor of the Japanese company Toyo Construction in the project of expanding the Port of Mombasa in Kenya.[20] According to Roodenburg and Sonderen,[21] the contractor was a Chinese company. This project was conducted in phases, and from 2012 till 2013 the first phase took place. For the complete project some fifteen million cubic meters of sand was needed. This sand was partly taken from Diani. The coastline of Diani belongs to a nature reserve and removing sand disrupts the ecosystem. According to Boskalis, an Environmental Impact Assessment (EIA) and an Environmental Monitoring Management Plan (EMMP) were prepared and local environmental regulations and restrictions were met throughout the project. However, as Roodenburg and Sonderen write, the EIA had many flaws. Residents of Diani disputed the EIA and then quickly new attachments were brought in. Furthermore, there had hardly been any discussion with residents, tour operators and fishermen. And there was no recent research into the condition of marine life, the coastline and the impact on fishing. The residents' association started a lawsuit against the contractor company. In 2016, when all the sand for the first phase of the harbor project had been removed from Diani, the judge concluded: The dredging company should indeed not have been allowed to extract sand from the nature reserve. The fishermen are compensated with about sixteen thousand dollars. They had to divide that among themselves. The money has not arrived yet.

According to Roodenburg and Sonderen, in March 2019, the second phase starts, this time with the Japanese company. Boskalis again extracts sand off the coast of Diani. There is no mention of this on Boskalis’ website. In order to circumvent a ruling like the one in the previous court case, this time the sand is being taken off the Waa and Tiwi coastal strips, along Diani's outer borders. Both are just short of being nature reserves. During sand extraction, sand that is too finely extracted flows back into the ocean, just off the coast, where it partly ends up on top of the coral. The sand blocks the light, which can cause the coral to suffocate. Without the coral reef, the waves would hit the coast much harder and swallow up the beaches of Diani. After protests from the residents, Boskalis suggests to the port authorities and Toyo that they sail in a large loop instead of parallel to the coast, so that the fine sand no longer lands on the vulnerable corals, but a lot further away. The inhabitants of Diani are fortunate in that they have the power and resources to initiate legal proceedings and carry out scientific research at their own expense. For many vulnerable communities in other places, this is not the case.

Current Emissions

Boskalis

In their sustainability reports, Boskalis does not mention anything about the greenhouse gas emissions of scope 3. Furthermore, they do not show separate numbers for scope 1 and 2. According to Boskalis, their total Scope 1 and 2 CO2 emissions amounted to 1.08 million tonnes in 2021.[22] The largest part of the CO2 footprint is linked to the vessels. Emissions from the fleet amounted to 1.06 million tonnes.

The reported emissions are from the Offshore Energy division, the Dredging and Inland Infra division and from Offices. They do not include the emissions from the Towage and Salvage division, because the Towage business is incorporated in joint ventures and the Salvage operations rely on vessels from the other divisions or third parties.

Scope 1 & 2 Emissions since 2015
Year Scope 1 & 2
2015[23] 1.521 Megatonnes CO2
2016[24] 1.249 Megatonnes CO2
2017[25] 1.223 Megatonnes CO2
2018[26] 1.180 Megatonnes CO2
2019[27] 1.111 Megatonnes CO2
2020[28] .984 Megatonnes CO2
2021 [22] 1.078 Megatonnes CO2

Boskalis Nederland

Boskalis Nederland does not report any emissions regarding Scope 3. They do have objectives for this scope. See more under Climate plans & policy. Scope 1 includes equipment wet, equipment dry, equipment asphalt, since 2020 equipment transport, and until 2021 equipment CTD. Scope 2 includes the electricity use of company sites, asphalt plants and cleaning plants and the electricity or fuel use by passenger transport.

Scope 1 & 2 Emissions since 2017
Year Scope 1 (tonnes CO2) Scope 2 (tonnes CO2) Total 1 & 2
2017[29] 66,620 1,429 68,050
2018[30] 114,536 1,500 116,036
2019[31] 69,300 1,639 70,939
2020[32] 46,828 288 47,116
2021 (Jan - Juni)[33] 12,737 5,025 17,763

Climate Policy and Plans

Boskalis

In the Annual report of 2019, Boskalis presents their new CO2-reduction target: They aim to be climate neutral by 2050 across their global operations. This target only takes into account Scope 1 and 2, and not 3.[27] In order to do this, they have an Emissions Reduction Taskforce, overseen by a member of the Board of Management.[28] The activities of the Taskforce focus on five distinct areas: Fuel efficiency, new energy sources, carbon offset and credits, trends, regulations and collaboration, and commercial offering. Regarding Scope 3, they claim they start initiatives for emissions reduction where feasible on the basis of impact and influences.

Boskalis Nederland

Boskalis has specific climate objectives for Boskalis Nederland.[33] These objectives are set with the CO2 Performance Ladder. The main objective concerns Scope 1: By 2025 CO2 emissions caused by fuel consumption by own equipment and passenger transport must be reduced by at least 10 percent compared to the base year 2020. However, Boskalis counts passenger transport to Scope 2 emissions. Then there is an additional objective concerning Scope 2: The CO2 emissions due to electricity consumption by the company buildings, project sites and production sites (asphalt plants and cleaning sites) will be maintained at 0 percent until 2025. Nevertheless, following the reported emissions, it does not seem like the emissions are at 0 for these sites. In this report also additional objectives for Scope 3 are mentioned. There are three plans: In relation to suppliers: Annual dialogue with (a selected group of) suppliers on CO2 reduction in the chain; In relation to subcontractors: By the end of 2025, they want to work with at least one subcontractor in order to reduce the emissions caused by the subcontractor's equipment on our project by 10 percent; and with regard to chain analyses, they have one objective per chain.

Due Diligence

Keep the broader context in mind. Is the company integer when it comes to deforestation, palm oil, biodiversity, human rights etc etc? Be critical in the sources used here.

Conclusion

Recap of the position and influence of the company. Are the climate plans of the company enough to be in line with goals of the Paris Agreement? Is the company doing enough? Are the company's targets realistic?

References

  1. ↑ 1.0 1.1 Goey, F. de. (2011). B. Bouwens, K. Sluyterman, Verdiept verleden. Een eeuw Koninklijke Boskalis Westminster en de Nederlandse baggerindustrie. BMGN - Low Countries Historical Review, 126(3), 132–133. https://doi.org/10.18352/bmgn-lchr.7414
  2. ↑ 2.0 2.1 2.2 2.3 2.4 Boskalis. (2021). Boskalis annual report 2021. Retrieved from https://boskalis.com/
  3. ↑ Smit, M. (2022, March 10). Investeerder HAL wil baggeraar Boskalis overnemen. RTL Nieuws. Retrieved from https://www.rtlnieuws.nl/economie/bedrijven/artikel/5293783/investeerder-hal-overname-baggeraar-boskalis-42-miljard-euro
  4. ↑ Boskalis. (2021, March 31). AGM 12 May 2021 agenda. Retrieved from https://boskalis.com/ir/corporate-governance/general-meeting-of-shareholders.html
  5. ↑ Awater, F., Kalkman, P., Koopman, E. & Staal, T. (2016, March 9). Het toezichtsprookje. De Groene Amsterdammer. Retrieved on https://www.groene.nl/artikel/het-toezichtsprookje.
  6. ↑ Rijkswaterstaat. (n.d.) About us. Retrieved on 11 April, 2022 from https://www.rijkswaterstaat.nl/en/about-us
  7. ↑ Boskalis (n.d.). History. Retrieved on 11 April, 2022 from https://boskalis.com/about-us/history.html
  8. ↑ Het Koninklijk Huis. (n.d.) Predicaat Koninklijk. Retrieved on April 19, 2022 from https://www.koninklijkhuis.nl/onderwerpen/onderscheidingen/predicaat-koninklijk
  9. ↑ Het Koninklijk Huis. (n.d.) Predicaat Koninklijk aanvragen. Retrieved on April 19, 2022 from https://www.koninklijkhuis.nl/onderwerpen/onderscheidingen/predicaat-koninklijk/aanvragen
  10. ↑ Boskalis. (2015). Boskalis annual report 2015. Retrieved from https://boskalis.com/
  11. ↑ Boskalis. (2016). Boskalis annual report 2016. Retrieved from https://boskalis.com/
  12. ↑ Boskalis. (2017). Boskalis annual report 2017. Retrieved from https://boskalis.com/
  13. ↑ Boskalis. (2018). Boskalis annual report 2018. Retrieved from https://boskalis.com/
  14. ↑ Boskalis. (2019). Boskalis annual report 2019. Retrieved from https://boskalis.com/
  15. ↑ Boskalis. (2020). Boskalis annual report 2020. Retrieved from https://boskalis.com/
  16. ↑ Boskalis maakt vuile handen. (2013, July 25). Follow the Money. Retrieved from https://www.ftm.nl/artikelen/boskalis-maakt-vuile-handen?share=%2FHst07Pz674d1au5muZCOA7JlG0ihVeY%2Bo8k%2Fg%2Fgv93y2VgDlEAN9WQ54Nnfbw%3D%3D
  17. ↑ De Boer, R. (2008, August 22). L’Affaire Boskalis. Fraudezaak op Mauritius. De Groene Amsterdammer. Retrieved from https://www.groene.nl/artikel/deze-week--113
  18. ↑ Van der Veen, C. (2018, February 6). In het kort: wat we weten over Nederlandse scheepsbouwers en Noord-Koreaanse dwangarbeiders. De Correspondent. Retrieved from https://decorrespondent.nl/7906/in-het-kort-wat-we-weten-over-nederlandse-scheepsbouwers-en-noord-koreaanse-dwangarbeiders/208628651088-5d23c7fe
  19. ↑ Indonesische vissers protesteren tegen baggeraar Boskalis. (2020, July 13). NOS. Retrieved from https://nos.nl/artikel/2340610-indonesische-vissers-protesteren-tegen-baggeraar-boskalis
  20. ↑ Boskalis. (2013). Project Sheet. Port of Mombasa, Kenya. Retrieved from https://boskalis.com/about-us/projects/detail/port-development-mombasa.html
  21. ↑ Roodenburg, E. & Sonderen, L. (2020, January 22). Baggeraars op de korrel. De Groene Amsterdammer. Retrieved from https://www.groene.nl/artikel/baggeraars-op-de-korrel
  22. ↑ 22.0 22.1 Boskalis. (2021). Boskalis sustainability report 2021. Retrieved from https://boskalis.com/.
  23. ↑ Boskalis. (2015). Boskalis CSR report 2015. Retrieved from https://boskalis.com/.
  24. ↑ Boskalis. (2016). Boskalis CSR report 2016. Retrieved from https://boskalis.com/.
  25. ↑ Boskalis. (2017). Boskalis CSR report 2017. Retrieved from https://boskalis.com/.
  26. ↑ Boskalis. (2018). Boskalis sustainability report 2018. Retrieved from https://boskalis.com/.
  27. ↑ 27.0 27.1 Boskalis. (2019). Boskalis sustainability report 2019. Retrieved from https://boskalis.com/.
  28. ↑ 28.0 28.1 Boskalis. (2020). Boskalis sustainability report 2020. Retrieved from https://boskalis.com/.
  29. ↑ Boskalis Nederland BV. (2018). CO2-Voortgangsrapportage 2017. Retrieved from https://nederland.boskalis.com/over-ons/verantwoord-ondernemen/co2-prestatieladder.html .
  30. ↑ Boskalis Nederland BV. (2019). CO2-Footprint en voortgangsverslag (heel) 2018. Retrieved from https://nederland.boskalis.com/over-ons/verantwoord-ondernemen/co2-prestatieladder.html.
  31. ↑ Boskalis Nederland BV. (2020). CO2-Footprint en voortgangsverslag (heel) 2019. Retrieved from https://nederland.boskalis.com/over-ons/verantwoord-ondernemen/co2-prestatieladder.html.
  32. ↑ Boskalis Nederland BV. (2021). CO2-Footprint en voortgangsverslag (heel) 2020. Retrieved from https://nederland.boskalis.com/over-ons/verantwoord-ondernemen/co2-prestatieladder.html
  33. ↑ 33.0 33.1 Boskalis Nederland BV. (2022). CO2-Footprint en voortgangsverslag Januari - Juni 2021. Retrieved from https://nederland.boskalis.com/over-ons/verantwoord-ondernemen/co2-prestatieladder.html
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