BAM

Royal BAM Group
Quick Facts
Type	Public
sector	Construction
Headquarters (Benelux Organization)	Bunnik, the Netherlands
Year of Origin	1869
Emissions (All Scopes)	136 Megatons of CO2 (2020)
Total Revenue	EUR 7.3 billion (2021)
Stock Exchange	Euronext (BAMNB)
Key People	Ruud Joosten, Henk Rottinghuis
Number of Employees	15,739
Subsidiaries	Interbuild Kairos Wayss & Freitag Ingenieurbau

Royal BAM Group, stylized as BAM, designs, builds and maintains buildings, homes and infrastructure for public- and private-sector clients. Its history goes back to 1869, although the current name derives from 1927. Headquartered in the Netherlands, BAM has divisions in the Netherlands, the United Kingdom and Ireland, as well as Belgium and Germany. It has about 15,000 employees and annual revenues of approximately €7 billion. Net result was 18,1 million Due to deferred taxes, BAM’s effective tax was 74 percent. Without deferred taxes the effective tax rate would have been 23 percent. Some of BAM’s highlights in 2021 were the completion of Zeesluis IJmuiden en de Zalmhavens (Rotterdam). Balance sheet value in 2021 was a little over 2 billion euro. Shares of BAM Group are listed on Euronext Amsterdam.

Company Structure

BAM is a large European construction firm with operating companies active in two business lines, Construction and Property and Civil engineering, as well as in public-private partnerships. BAM is active in the Netherlands, UK, Ireland, Belgium, Germany and Denmark BAM's leadership structure is a two-tier structure, where the day-to-day management is executed by a executive board and an executive committee and overseen by a supervisory board. In the Netherlands, most of BAM's activities take place in BAM Infra or BAM Bouw en Techniek. Next to those there is the smaller operations in BAM Residential en BAM Specials.

Most shares of BAM group are hold by Dutch shareholders. Currently, no shareholders hold more than 3 percent of all outstanding shares.

Board of Directors

Executive Board 2021

Name	Function	Remuneration x1000 EUR
Ruud Joosten	CEO	1691 EUR
Frans den Houter	CFO	1287 EUR

Executive Committee

The Executive Committee exists of the Executive Board and the following persons. Their remuneration is not disclosed.

Management Board

Name	Function
Joost Nelis	Chief operating officer (NL)
John Wilkinson	Chief operating officer (UK & Ireland)

Supervisory Board

Supervisory Board

Name	Function	Remuneration x1000 EUR
Henk Rottinghuis	Chairman	102 EUR
Gosse Boon	Vice-chair	67 EUR
Bob Elfring	Member	62 EUR
Denise Koopmans	Member	65 EUR
Paul Sheffield	Member	59 EUR
Nina Skorupska	Member	42 EUR

Accountant

The external accountant of BAM Groep is Ernst & Young Accountants LLP

Main Activities

BAM's companies are active in Business lines Construction and Property, Civil Engineering and Public-Private Partnerships (PPP). Construction and Property is all about building. This includes residential, non-residential, technical installations, accomodation and design. Civil Engineering encompasses all larger projects, like infrastructural works, civil architecture and industrial construction. BAM also carries out international civil and marine engineering works.

Public-Private Partnerships are carried out by Invesis. This is a global investor and developer in infrastructural projects. Invesis manages all aspects of an investment from development and financing through to design, construction, maintenance, operations, all the way through to hand back. It is jointly owned by Royal BAM Group and pension fund manager and global investor, PGGM.

Government

BAM has completed numerous projects for the Dutch Government. Notable are the building of the Dutch Hoge Raad, the renovation of the Afsluitdijk, expansion of Maasvlakte 2 and the construction of Zeesluis IJmuiden. However, in the recent decade, the risk to profit ratio has changed drastically, making BAM hesitant to take on new projects of a similar scale. The construction of Zeesluis IJmuiden came with unexpected costs for BAM of nearly 100 million, putting great pressure on profit margins.

BAM received royal status during its 125th anniversary in 1994. BAM has not received NOW-support during corona-times.

Paris Agreement to 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.

BAM states the following CO2 reduction targets in its 2021 Annual Report: Reduce Scope 1 and Scope 2 CO2 intensity by 50 per cent compared to 2015; Reduce Scope 3 CO2 emissions by 20 per cent compared to 2017 (the first year BAM assessed its entire Scope 3 emissions).

Financial Results since 2015

No dividend is proposed over 2021. Also, no dividend has been paid over 2020

Financial situation

Year	Revenue	Profit	Dividend
2015	7,423 billion EUR	10,2 million EUR	0,743 million EUR
2016	6,976 billion EUR	48,6 million EUR	2,518 million EUR
2017	6.604 billion EUR	12.5 million EUR	7.876 million EUR
2018	7.208 billion EUR	23.8 million EUR	1.188 million EUR
2019	7.209 billion EUR	11.8 million EUR	2.015 million EUR
2020	6.809 million EUR	122.2 million EUR (loss)	129 million EUR
2021	7.315 billion EUR	18.1 million EUR	XXX EUR

Current Emissions

Description of the emissions per scope. Critical analysis of (missing) information based on GHG protocol (probably most relevant for scope 3). Describe current climate policies of companies and possible reduction trends.

Total emissions since 2015 ( in megatonnes CO2-eq.)

Year	Scope 1	Scope 2	Scope 3	Total
2015	0,197	0,015	0,018	0,23
2016	0,16	0,0215	0,0215	0,203
2017	0,15	0,018	0,018	0,186
2018	0,155	0,019	0,019	0,193
2019	0,14	0,015	0,015	0,170
2020	0,115	0,0105	0,0105	0,136
2021 (No annual report published yet)	XXX	XXX	XXX	XXX

Climate Policy and Plans

BAM formulated a strategy from 2021-2023, called a sustainable tomorrow. This strategic plan is mainly dedicated to de-risking BAM’s portfolio and building on profitability in market where BAM has competitive strengths. Reducing carbon emissions is not a main point of focus in this strategy.

BAM wants to achieve relative emission reduction in scope 1 and 2 of 50 percent with 2015 as baseyear. According to own reports, BAM achieved 44 percent intensity reduction since 2015. BAM however only very limited reports its scope 3 emissions in its annual report. It does however mention that it discloses its full scope 3 reports tot he Carbon Disclosure Project. BAM wants to reduce scope 3 emissions by 20 percent in comparison to base year 2017. This was the first year BAM fully disclosed its scope 3 emissions. BAM plans to release new sustainability targets in 2022.

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.

According to the environmental targets in its 2021 Annual Report, BAM strives to use 100% sustainable timber. It claims that 99% of its timber was sustainable in 2021, when looking at 89% of its organisation. However, it admits that it struggles to use sustainable timber in Ireland, which it excludes from this figure. In addition, it excludes its activities in Germany and Belgium, which would lower the percentage of coverage to 82%.

Scandals and controversies

Any dirt on the companies can be added here.

In 2020, BAM agreed to a €200-million settlement with the City of Cologne over the ill-fated construction of a new metro line in 2009. Among other things, these construction works caused the collapse of the Historical City Archives, killing two people as well as damaging adjacent buildings.

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 companies targets realistic?