This document discusses using an internal carbon price in the construction industry. It notes that 87-98% of carbon emissions in construction come from the supply chain. A tool called "MKI" can help analyze the full lifecycle carbon impact of construction projects. The document recommends that BAM invest in quantifying and optimizing project sustainability impacts. It suggests early partner involvement, including sustainability criteria in tenders, and rewarding low-carbon performance in contract awards.

1. Business case:
rekenen met een interne CO2 prijs in de bouw
Tom Blankendaal – Sustainability manager
Eindhoven, 14 August 2017

2. Koninklijke BAM Groep nv
2

3. Koninklijke BAM Groep nv
3
Latest CO2 reading
403.47
12 September 2017

4. Koninklijke BAM Groep nv
4
Climate change - Is it happening??

5. Koninklijke BAM Groep nv
WE DON’T HAVE AN
ENERGY PROBLEM...

6. Koninklijke BAM Groep nv
WE HAVE ENERGY
DEMAND

7. Koninklijke BAM Groep nv
7
Koninklijke BAM Groep expects
the result before tax,
impairments and restructuring
charges for the full year of about
€20 million. There will be
restructuring charges in the last
quarter of 2015 and in 2015.
Integrated sustainability
“Doing more good not just less bad”

8. Koninklijke BAM Groep nv
8
25% relative emissions
reduction scope 1, 2, 3
zero construction
waste in 2025
50% less waste across
project life cycle
100% sustainable
certified timber and
concrete
enhance one million lives in
local communities
one zero carbon product /
service per home country
one circular product /
service per home country
CDP A List
measure positive impact
at a project level
Doing
things
better
Doing
better
things
Doing
new
things
Climate positive
Enhancing lives
Resource positive
Sustainability strategy

9. Koninklijke BAM Groep nv
9
‘Stroomversnelling’ renovation concept
BAM aims to have a net positive impact on climate
change

10. Koninklijke BAM Groep nv
10
GHG Protocol scopes and emissions across the value
chain

11. Koninklijke BAM Groep nv
11
CO2 emissions in construction supply chain

12. Koninklijke BAM Groep nv
12
CO2 emissions in civil engineering supply chain

13. Koninklijke BAM Groep nv
13
Project phase vs. level of influence

14. Koninklijke BAM Groep nv
14
Project stages in LCA

15. Koninklijke BAM Groep nv
15
Calculation methods for the GHG data of objects or
processes

16. Koninklijke BAM Groep nv
16
Project Lifetime
Allocation, analyze, reporting (simplified version)
project life cycle
D B MO
Bill of
Materials
001 Concrete
002 Steel
003 Shell
parts
004 Asphalt
4 years 100 years
allocate
emissions
20 years 20 years 20 years 20 years 20 years
100 years
100 years
100 years

17. Koninklijke BAM Groep nv
17
Allocation, analyze, reporting (simplified version)
A1 –A3 A4 –A5 B1 –B7 C1 –C7
Scope 1 + 2Upstream Scope 3 Downstream Scope 3 emissions
003 Shell
parts
Based on
financial data
(option 3)
Or LCA
(option 2)
Total € 53,00
€ 37,00 € 9,00 € 4,00 € 3,00
814 CO2e 198 CO2e 88 CO2e 66 CO2e

18. Koninklijke BAM Groep nv
18
Reporting from project to corporate level (bottom up)
A1 –A3 A4 –A5 B1 –B7 C1 –C7
Scope 1 + 2Upstream Scope 3 Downstream Scope 3 emissions

19. Koninklijke BAM Groep nv
19
LCA calculation of construction project
€-
€10,000,000
€20,000,000
€30,000,000
€40,000,000
€50,000,000
€60,000,000
€70,000,000
€80,000,000
MKI BL 1.0
DC
MKI BL 2.0
DC
MKI BL 3.0
DC
MKI BL 3.0
LCA
PROG1 PROG2
Hydraulisch
Menggranulaat 250 mm
Betonmortel C70/85
(CEMI-CEMIII)
Asfalt (SMA, 0/11)
Asfalt (ZOAB+)
Bitumen emulsie kleeflaag
(0,3 kg/m2)
Voorspanstaal
Noordzeegrind
Onderhoudsbaggerwerk
(sleephopper)
Onderhoudsbaggerwerk
(cutterzuiger)
Stalen damwand tijdelijk
Profielstaal (niet verzinkt)
Heipaal (beton)
Menggranulaat 250 mm
Heipaal (staal)
Breuksteen (waterbouw)
Stalen damwand
Landzand (per schip)
Bovengrens 65
mln
Ondergrens 45
mln
Source:
BAM Infraconsult - CES

20. Koninklijke BAM Groep nv
20
Summary
• Innovations, new production techniques and design optimisation
will significantly reduce emissions – first projects show ±50%
reduction potential
• 87-98% of CO2 in construction is emitted through supply chain
• ‘MKI’ helps to analyse full life cycle impact of construction projects
– CO2
– (Shadow)Price

21. Koninklijke BAM Groep nv
21
Recommendations
• Invest in knowledge, resources and tools to quantify and optimise
project impact
• Early involvement of client, contractor and supply chain partners
make construction project more sustainable
• Include criteria to evaluate quality of tenders based on CO2/MKI!
– Benefit for clients
– Benefits for BAM
• Reward sustainable performance in contract awarding

22. Koninklijke BAM Groep nv
22
Questions?