Boskalis CSR report 2017

Business Conduct CSR 2017 – BOSKALIS 60 At Boskalis responsible sourcing stands for our intention to work with suppliers who act responsibly and with integrity. We select suppliers based on various sustainability criteria and require them to sign and adhere to our Supplier Code of Conduct. Boskalis maintains relationships with approximately 1,400 suppliers – of which 73% are based in the Netherlands, 14% in other European countries and 13% outside Europe – for the central procurement of consumables, machinery and hydraulics, electronics and survey equipment, services, subcontractors, wearing and construction parts and facility goods. Just over 200 of these are strategic partners, who together account for 90% of Corporate Procurement purchasing volume. Together with our strategic partners, we seek to avoid risks and seize the opportunities that come from building a sustainable future. The Boskalis Procurement & Logistics general manager is responsible for the procurement policy and the selection of strategic suppliers, and reports to Group Management. Our Corporate Procurement department aims to establish long-term relationships with suppliers in keeping with the NEVI Code of Conduct. This code is based on four core values: business ethics, expertise and objectivity, open competition and sustainability. Boskalis is involved in a number of cross-sector partnerships that enable us to contribute to the circular economy. We have established cradle-to-cradle chains for worn impellers, dredging pumps and pick points in partnership with Van Voorden, Vosta, Allard-Europe and Magotteaux. In 2017, 289,000 kilograms of material was recycled. SUPPLIER CODE OF CONDUCT Boskalis has a Supplier Code of Conduct, which mirrors our own internal General Code of Business Conduct. Besides considering quality, delivery reliability and price, we also select our suppliers based on sustainability criteria. The Supplier Code of Conduct is an integral part of all procurement contracts. By entering into a contract, suppliers commit themselves to the Boskalis Supplier Code of Conduct. This commitment is also applicable to their own suppliers. In 2017, 81% of our strategic suppliers endorsed the Supplier Code of Conduct, compared to 76% in 2016. This percentage can fluctuate from year to year, due to variations in purchase patterns. The procurement of the entire modification of the Bokalift 1 from heavy transport vessel to crane vessel was carried out based on an integrated CSR approach. All suppliers for the Bokalift modification endorsed the Supplier Code of Conduct. Both the Supplier Code of Conduct and our General Purchasing Terms and Conditions can be downloaded from our website. RESPONSIBLE SOURCING

IMPLEMENTATION ASSESSMENT SCAN Each year, we conduct an implementation scan at approximately 10% of our strategic suppliers. This adds up to around 20 companies representing a cross section of our strategic suppliers. The implementation scans, including first- and second-line suppliers, were first performed in 2012. Since then, scans have been conducted at 91 unique suppliers, based in Europe, North Africa, Southeast Asia, China, the United States and the Middle East. An independent external consultant assesses to which extent these suppliers have adopted the Supplier Code of Conduct criteria in their own CSR policy. This is done using the Socially Responsible Procurement monitoring method of the Chartered Institute of Purchasing and Supply. The procedure comprises: ‚ ‚ A fixed questionnaire: compiled in conjunction with the external consultant. Questions are subdivided into the topics covered by the Supplier Code of Conduct. ‚ ‚ An onsite implementation scan: conducted by an external consultant accompanied by one of our senior procurement staff. This is a two-way process: besides evaluating the performance, we are also open to feedback from our suppliers, allowing us to learn from them. The aim is to work together to develop and create a sustainable supply chain. Our suppliers take a positive view of this approach. ‚ ‚ A risk matrix: used to show the level of risk that applies to the various suppliers in terms of CSR and to which extent this might impact Boskalis’ business operations or reputation. Suppliers in the segments indicating ‘significant risk, high risk, significant impact’ and/or ‘high impact’ are given the chance to improve under our supervision. In the absence of sufficient progress, we will eventually terminate our relationship with these suppliers. The dialogue with the other suppliers is structured according to the matrix on the next page. Besides these annual implementation scans, purchase officers continually monitor adherence to the Supplier Code of Conduct during visits to suppliers. ONLINE CSR ASSESSMENT TOOL In collaboration with the Maritime Cluster of CSR Netherlands (MVO Nederland), Boskalis and a number of leading Dutch maritime companies have developed an online assessment tool to gain insight in the CSR practices of our suppliers. The tool, which is named BlueScan, was launched in 2017 and creates uniformity in assessment methods. Participants in this platform include companies from across the maritime sector: shipbuilders, contractors and subcontractor, and shipping companies and yards working for maritime and offshore industries. The tool allows companies like Boskalis to execute assessments of the CSR performance of their suppliers. It is an assessment method comprising an online questionnaire based on the supplier codes of