E4 Biodiversity and ecosystems

Within the standard E4 Biodiversity and ecosystems, under the sub-topic 'direct impact drivers of biodiversity loss’, we have identified the following sub-sub-topics as material: 'climate change’ ‘land-use change, fresh water-use change, sea-use change’ ‘pollution’ and ‘others’ – referring to biodiversity loss.

We do not directly depend on biodiversity and ecosystem developments in the execution of our consulting and engineering activities, which therefore pose no risks to Arcadis’ resilience. We do anticipate opportunities in biodiversity and ecosystem developments as we support our clients in addressing challenges related to these topics in the execution of projects we undertake on their behalf.

For the purposes of the ESRS, the building portfolio we lease is considered part of Arcadis’ own operations. In 2024, this portfolio included 337 sites, all situated in urban or suburban environments. Following the Locate, Evaluate, Assess, and Prepare (LEAP) approach, a selection of physical risk indicators (water scarcity, land use change, tree cover loss, ecosystem condition) and reputational risk indicators (protected areas, key biodiversity areas, other important delineated areas) was assessed in terms of Arcadis' own operations (leased building portfolio). We used the WWF Biodiversity Risk Filter (BRF) to conduct this analysis, and the risk score threshold as prescribed in the WWF BRF guidance was used to identify high risk locations. None of these sites were assessed to be material (either in/near sensitive areas or resulting in likely and/or severe negative impacts) in relation to biodiversity or ecosystems. In addition, the WWF BRF tool was used to evaluate potential overlap with protected areas, Key Biodiversity Areas, and other significant designated regions, such as Ramsar sites. No overlaps were detected. It has also been determined that no Arcadis office locations overlap with Nature 2000 sites.

Applying the mitigation hierarchy is considered common best practice. We apply it in our internal guidance documents related to our biodiversity footprint calculation and in the development of site-based biodiversity targets. The ‘avoid, reduce and restore, offset’ steps are part of the guidance that we have developed on how to manage land use impacts in our portfolio for existing buildings as well as new buildings. Internal guidance for credible restoration has been developed as well.

Impacts, risks and opportunities

We assessed the potential impacts of our own operations on biodiversity and ecosystems in 2022, using the Science Based Targets Network (SBTN) Step 1 assessment (specifically the sector materiality tool). This provided insight into the key drivers of biodiversity loss for Arcadis' direct operations. Land use (by building portfolio), GHG emissions and water use were identified as important potential drivers of biodiversity loss.

In SBTN Step 2 (also performed in 2022) water use and land use (pressures) were assessed using consumption averages in office environments (for water use) or using primary data for land use (surface area of Arcadis office locations). GHG emissions are addressed through Arcadis' Climate Transition Plan.

To evaluate the likelihood and severity (actual) of impacts, in line with SBTN Step 2, the pressures (water and land use) and state of nature were combined to set target boundaries, resulting in selection of sites with high relative pressure and sensitive state of nature. For water use, we applied WWF's Water Risk Filter and Aqueduct to identify water scarce regions. For biodiversity, an MSA-based (Mean Species Abundance) footprint assessment was used to assess the relative importance of land use impact. In 2024, we applied the WWF Biodiversity Risk Filter to further understand potential impact due to land use for protected and valuable nature as described in E3 Water and Marine Resources.

For land use, the actual impact has been evaluated using the MSA-based footprint assessment as described later in this section. Targets have been set and annual monitoring takes place.

In addition to the impacts identified through the SBTN process, Arcadis identified further impacts, risks and opportunities during its double materiality assessment conducted in accordance with the ESRS and stakeholder input.

Policies related to biodiversity and ecosystems

Arcadis has a specific policy related to biodiversity and ecosystems, which outlines our approach to preserving and enhancing biodiversity and minimizing our environmental impact as part of our operations and projects, including our upstream and downstream value chain. We aim to prevent or mitigate negative impacts on biodiversity and ecosystems and contribute to their protection and restoration to support cleaner, healthier and more resilient communities. This policy establishes design effectiveness by addressing material IROs in Arcadis’ value chain. As a professional services firm, Arcadis does not have specific dependencies on biodiversity and ecosystems within its own operations and has not adopted sustainable land / agriculture practices or policies. Arcadis’ goals with its Biodiversity and Ecosystems Policy are to:

• Identify how Arcadis affects biodiversity and ecosystems in terms of positive and negative material impacts, both actual and potential. This includes the extent to which we contribute to the drivers of biodiversity and ecosystem loss and degradation.

• Report annually to our various stakeholders, via our Sustainability Statement, what actions we have taken – and the result of such actions – to prevent or mitigate material actual or potential negative impacts; to protect and restore biodiversity and ecosystems; and to address risks and opportunities.

• Describe our plans and capacity to adapt our strategy and business model aligned with internationally accepted biodiversity frameworks, including:

• • Respecting planetary boundaries related to biosphere integrity and land system change.

  • The vision of the Kunming-Montreal Global Biodiversity Framework (GBF) and its relevant goals and targets.

  • Relevant aspects of the EU Biodiversity Strategy for 2030.

  • Directive 2009/147/EC of the European Parliament and of the Council and Council Directive 92/43/EEC (EU Birds and Habitats Directives).

  • Directive 2008/56/EC of the European Parliament and of the Council (Marine Strategy Framework Directive).

• Outline to stakeholders, via our Sustainability Statement, how we manage our material risks, dependencies and opportunities related to biodiversity and ecosystems, and the nature, type and extent of those risks, dependencies, and opportunities.

• Provide insights to stakeholders into the financial effects on Arcadis over the short-, medium- and long-term of the material risks and opportunities arising from its impacts and dependencies on biodiversity and ecosystems.

• Meet disclosure requirements on biodiversity and ecosystem related impacts in Arcadis’ activities, products, and services, as well as on related actions directed at protecting and restoring biodiversity or ecosystems and to apply that data to assess progress and set targets.

• Work collaboratively with clients and suppliers to identify and implement positive biodiversity and ecosystem impacts in our projects.

The Biodiversity and Ecosystems Policy's scope applies to Arcadis’ office-based activities globally, including the spaces leased by Arcadis in multi-tenant buildings with shared common facilities. It also applies to our project activities for clients, and to our activities with suppliers in our upstream and downstream value chain and addresses our material impacts, risks and opportunities.

The Chief Growth Officer is the member of the Executive Leadership Team who is responsible for sustainability, including accountability for the implementation of the Biodiversity and Ecosystems Policy.

Actions and resources related to biodiversity and ecosystems

Own operations

We calculate our static and dynamic biodiversity footprint for our own operations (leased office portfolio) annually using in-house subject matter experts, demonstrating operational effectiveness for material IROs in our own operations. Calculating our static and dynamic footprint allows us to determine the extent to which we contribute to the drivers of biodiversity and ecosystem loss and degradation and to take action to reduce the impacts of our own operations on biodiversity and ecosystems. In 2024, Arcadis focused on improving the underlying data quality for the biodiversity footprint calculations in collaboration with Arcadis’ Workplace function. In 2025, we will begin to develop a more detailed understanding of biodiversity at our office locations with >20% green space. This more detailed understanding of biodiversity in these locations will enable us to determine what, if any, location-specific biodiversity improvement actions are potentially feasible and will contribute to a biodiversity net gain at these locations.

Value chain

As described in our Biodiversity and Ecosystems Policy, Arcadis will conduct biodiversity and ecosystem risk assessments across its portfolio of projects to identify where actual or potential material negative or positive impacts occur or may occur over the short, medium, and long-term. Based on these solution-level risk assessments:

• Arcadis will prioritize for which projects it expects to perform biodiversity and ecosystem assessments. These assessments will be conducted by qualified professionals and will help us identify and minimize negative impacts on biodiversity. We will also explore opportunities to enhance biodiversity and ecosystem services, where feasible and appropriate.

• Arcadis will seek to implement measures to prevent pollution, habitat destruction, and degradation in the way we design and assist clients in taking appropriate actions to restore and rehabilitate affected areas, in consultation with relevant stakeholders and experts.

Targets related to biodiversity and ecosystems

Arcadis’ biodiversity targets are aligned with the Global Goal for Nature (and the Kunming-Montreal Global Biodiversity Framework, GBF). The objective of the Global Goal for Nature and the GBF is to halt and reverse nature loss by 2030. As our biodiversity targets are focused on our own operations, our internal stakeholders including employees and senior leadership, were consulted during their development.

Our targets are linked to our Biodiversity and Ecosystems Policy, which describes Arcadis’ commitment to prevent or mitigate negative impacts on biodiversity and ecosystems and contribute to their protection and restoration in its own operations through these three targets:

1. Biodiversity no net loss for all sites by 2030 (dynamic impact)

2. 10% biodiversity net gain for sites >20% green space on site by 2030 (dynamic impact)

3. By 2050, Arcadis engages to compensate for its biodiversity impact related to the cumulative land-use of its buildings (the static footprint).

Targets are compared to the 2022 baseline, which was 65.0 MSA.ha. Our targets encompass the full range of the mitigation hierarchy: avoid, minimize, restore, offset, with priority given to avoidance, minimization, and restoration of impacts over offsetting. Our key assumption in setting these targets was that we could influence the biodiversity of our office locations even though we are leasing the spaces.

A dynamic biodiversity footprint was calculated for sites that are part of Arcadis’ 2024 building portfolio as well as the 2023 building portfolio. The 2024 dynamic biodiversity footprint total is based on data for 318 sites and totals 30.10 MSA.ha. The difference compared to the 2023 static footprint (44.4 MSA.ha) is 14.34 MSA.ha (a 32% reduction), demonstrating a decrease in the impact of our own operations on biodiversity during this timeframe.

For the entire 2024 building portfolio (adding new sites, including any sites that were not part of the 2023 dataset), a new static biodiversity footprint (based on the entire 2024 portfolio of 337 sites) of 30.90 MSA.ha was calculated. This value will serve as the new baseline for next year’s biodiversity footprint calculation.

Relative to the 2022 baseline, we have demonstrated no net biodiversity loss at our leased office locations and have decreased the impact of our own operations on biodiversity.