Sustainability report 2019

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MANAGING SOCIAL IMPACT

IMPACT ON LOCAL COMMUNITIES SUSTAINABILITY REPORT 2019 – BOSKALIS OUR IMPACT AND MANAGEMENT APPROACH Although much of our work takes place offshore, we are sometimes operating in close proximity to local communities. In many cases the potential social impact is limited, but in some cases the impact can be potentially significant – either positively or negatively. In most cases, our approach towards communities is guided by an Environmental and Social Impact Assessment (ESIA) and, in all cases, is in line with our General Code of Business Conduct, which aligns with the principles of the International Labour Organization and the OECD Guidelines for Multinational Enterprises. To help us apply our Code of Conduct in projects we developed our Social Impact Program. The program increases internal awareness of social issues and provides a structured approach to manage project level social impact: for example, through social risk evaluation early in the project lifecycle. Social risks potentially associated with our activities are often interrelated with environmental impacts and ecosystem services. They can include disturbances for marine traffic – including fishermen and access to fishing grounds – onshore disturbance as a result of logistics and transportation, and supply chain workforce welfare. Where impacts occur we focus on managing impacts in line with a mitigation hierarchy. In some cases our work is a small part of a larger project scope that has wider reaching social impacts. As a contractor this can present a dilemma as we may not have influence over our client or the local social or political context. In these situations we aim to work in line with the principles set out by the OECD Guidelines for Multinational Enterprises, exerting leverage to encourage social impact management practices in the chain. Although our influence on infrastructure investment decisions is limited, we believe responsible social management can be a catalyst for a mutually beneficial collaboration with our clients, local communities and other stakeholders. Social impact is one of our focus areas for the years ahead. This means we will continue to strengthen our social impact program such as further integrating it into our Way of Working quality management system over the coming years. We see a large part of our work will be to continuing to grow the skills and knowledge of our people to help them meet the requirements of new and emerging legislation on local development and social issues, and the needs of our clients around the world. We plan to do this using the model that has worked so successfully in relation to Health and Safety, NINA. Our Social Impact Program is structured around four core areas.

SOCIAL RISK & OPPORTUNITY ASSESSMENT Early identification of social risks and opportunities as part of the standard risk and opportunities approach, to create awareness and to support an effective social management strategy on project level. STAKEHOLDER MANAGEMENT Depending on the project profile and our role, we develop a stakeholder management plan based on the local stakeholder landscape. If necessary, the plan provides for a community liaison officer on site, who can inform and engage with local communities and supports stakeholder consultation processes executed by the client. GRIEVANCE MANAGEMENT Depending on the social risk-profile of the project, a community and/or worker grievance mechanism is put in place. This is used to channel grievances and complaints towards the appropriate entity for response and any necessary management action.

WORKER WELFARE Providing a safe and healthy workplace for our employees and our local workers is essential. In addition to our NINA safety