Ferrovial : Ferrovial : Climate Strategy Report 2024 (5 cimate stategy report 2024 eng)

SUSTAINABILITY MANAGEMENT Climate strategy 2024 Climate strategy 2024 Index Alignment with the Recommendations from the TCFD (Task Force on Climate-Related Financial Disclosure) and CDSB (Climate Disclosure Standards Board). This report includes information on governance, strategy, risk and opportunity management, targets, metrics, and evolution and how they relate to climate change, thus following the recommendations from the TCFD and the CDSB. Greenhouse Gas Emissions inventory is part of the Non-financial statement of Ferrovial, which has been formulated by the Board of Directors and is subject to an external verification according to the International Standard on Assurance Engagements (ISAE 3410) by an independent third party (PWC). This review is based in the internal procedure titled "Carbon Footprint Calculation and Reporting", and was prepared by Ferrovial Management in accordance with the international standard ISO 14064-1:2018. 2 01 02 EXECUTIVE SUMMARY 03 STRATEGY 06 Transition plan 06 Governance 06 Objectives 08 Tools 09 Risk & opportunities 11 03 04 EMISSIONS PERFORMANCE 14 ANNEXES 17 Carbon footprint 2024 14 Methodogy 17 Metrics & Distribution 14 Emissions breakdown 21 Evolution 16 Verification report 28 Executive summary 01 Our milestones 2009 2011 2012 Start of Scope First Scope Start of Scope 1&2 emission 1&2 reduction 3 emission reporting targets reporting 2020 2019 2017 Implementation 'Ferrovial First company to set of Deep Forest' SBTi targets Scope Decarbonization Project 1&2&3 Plan (DDP) 2023 2024 2025 Deep Revalidation 100% Decarbonization SBTi 1.5 renewable Path (DDP) targets energy review commitment 2050 2030 Net-Zero Scope 1&2&3 Scope reduction targets (in 1&2&3 accordance with SBTi) Climate strategy 2024 Ferrovial has had a firm Climate Strategy in place for years, framed within the company's Strategic Plan and aligned with the Sustainability Strategy and the Sustainable Development Goals. Since 2009, 100% of greenhouse gas emissions from the company's activities worldwide have been measured. To comply with the Paris Agreement and the 2030 Agenda, the strategy includes ambitious emission reduction targets, the roadmap to achieve Net Zero emissions by mid-century and the consumption of renewable energies to the detriment of fossil fuels, while developing new lines of business aimed at achieving the decarbonization of the economy and combating the effects of climate change. Along these lines, this report informs stakeholders of how the company is progressing along the climate roadmap, managing risks and opportunities and meeting its objectives approved by the Science Based Target Initiative (SBTi) . During 2024, Ferrovial has worked on updating its decarbonization plan to align with the 1.5ºC decarbonization path . In addition, it has committed to the SBTi initiative to be Net Zero by 2050 or earlier. During the 2024 fiscal year, it has continued to comply with the roadmap, with a reduction of -35.78% vs 2020 in Scope 1 and Scope 2 emissions in absolute terms and - 48.95% vs 2020 in terms of intensity; in relation to Scope 3 emissions, it has achieved a reduction of -18.03% vs 2020 (SBti Scope) and -22.40% vs 2020 full Scope 3. Summary Strategy Emissions Annexes Since 2022 (FY 2021), the company is committed to the 'Say on Climate' initiative , which involves presenting Ferrovial's Annual Climate Strategy Report at the General Shareholders' Meeting for advisory voting. In this way, it has become the first Spanish-origin company to take on this commitment, and the first in its sector globally. Ferrovial faces numerous challenges in terms of decarbonization , including the following: LACK OF AVAILABILITY OF TECHNOLOGIES FOR DECARBONIZATION. There are no technologies available in the market for the decarbonization of certain processes that are highly relevant to the company's footprint (mainly related to stationary emissions, primarily fixed sources and large construction machinery). Ferrovial prioritizes emissions reduction through the implementation of energy efficiency measures, exploring new alternatives for low carbon heavy machinery. The Deep Decarbonization Path (DDP), which establishes the mitigation lines on which to work in order to achieve the 2030 emission reduction targets, is based on: Electric and more efficient vehicle fleet. Reduce emissions associated with construction machinery through the implementation of energy efficiency measures by 2030. 4 Reduce asphalt plant emissions through energy efficiency by 2030. Explore technology alternatives for low carbon heavy machinery. Use of less polluting fuels: promotion of biofuels. Consumption of 100% of electricity from renewable sources: Self-generation & renewable energy procurement (100% of Electricity coming from renewable sources - target for 2025). RELEVANCE OF EMISSIONS ASSOCIATED WITH SCOPE 3 , which represent more than 84% of the group's total footprint. DETAILED CALCULATION OF SCOPE 3 , including all sources that are not under the company's control. Climate strategy 2024 5 Among the measures that Ferrovial activates to reduce Scope 3 emissions , the following stand out: The Group manages proactively its procurement process with a focus on reducing the embedded carbon across the supply chain . Key initiatives and projects include: Fostering low-carbon products particularly cement and concrete - Ferrovial works in partnership with its most relevant suppliers to integrate progressively low carbon cement at an industrial scale. Ferrovial has launched a Supplier Collaboration Program to work with suppliers to understand their emissions performance. Developing new raw materials with less carbon embedded , using new technologies and innovative approaches (e.g., reducing the carbon in modified asphaltic bitumen by introducing recycled materials). Use of a Green Purchasing Catalog to promote the purchase of sustainable products. Using engineering design to reduce the use of the most carbon-intensive raw materials , which is also good in the construction process. The Group fosters local procurement , when products are available, to minimize emissions from transportation and distribution of goods. Ferrovial's recently established "Circular Economy Plan" aims to increase recycling and reusing opportunities, particularly in construction activities - the Plan includes actions such as the reuse of excavation in civil works (mostly transport infrastructure projects) and onsite recycling of concrete/asphalt from demolition work. Ferrovial will reduce emissions associated with this category by implementing energy efficiency measures , promoting the use of alternative fossil fuels and consuming 100% renewable electricity . Ferrovial continues to make progress in its commitment to 1.5 trajectory. Summary Strategy Emissions Annexes Strategy-Transition plan 02 Governance The Sustainability Committee , chaired by the Sustainability Director, is made up of representatives from the business areas (Airports, Infrastructure, Construction, Digital Infrastructure and Energy) and the corporate areas (Sustainability -Chairman and Secretary-, Health& safety& wellbeing, Compliance and data protection, Innovation, Human Resources, Communication and CSR, General Counsel´s Office, Corporate Strategy, Investor Relations and Procurement direction). Serving as the link between the business and senior management, the committee chair reports regularly to the Board of Directors, the Management Committee, and monthly to the CEO. Climate strategy 2024 In this aspect, the CEO takes on significant relevance by including in their monthly agenda the monitoring and implementation of initiatives related to climate change. The Q&E Steering Committee , chaired by the Sustainability Director (who is also the committee's secretariat), is the body that executes the corporate climate change strategy across the businesses that make up the company. It is where they discuss, make decisions, establish initiatives, and review results related to climate change projects, as well as the implementation of the Quality and Environment policy throughout the company. This committee analyses aspects such as legislation, new legislative challenges in the countries in which the company operates and market trends, as well as recommendations from government agencies and other organizations. The Q&E Steering Committee is composed, in addition to the corporate Sustainability Director , of the most senior representatives of business in this area. Committee meetings are held at least quarterly and may be held more frequently if necessary. This report is submitted for the approval of the Board of Directors and the advisory vote of the General Shareholders' Meeting . 7 General Shareholders Meeting Board of directors Management Committe CEO Sustainability Committee Q&E Steering Committe Construction Cadagua Cintra Digital Infraestructures Energy Airports Budimex Summary Strategy Emissions Annexes Climate strategy 2024 Objectives Ferrovial have a long record of engagement with the Science Based Targets initiative (SBTi) , first achieving SBTi targets validated in 2017. This made them the first company in its sector worldwide to set science-based emissions reduction targets and have them validated by SBTi. The new targets were presented to the Board of Directors. The 2024 Climate Strategy Report, which includes these new targets, will be brought for advisory vote at the Annual General Meeting. In 2024, Ferrovial started up the process of re-validation of the new targets aligned with the 1.5º trajectory, in accordance with SBTi. The final validation was obtained in February 2025. Targets: Net zero 2050 or e arly 100 % renewable electricity by the end 2025 Summary Strategy Emissions Annexes 8 2º trajectory (so far) 1,5 trajectory (from now on) Scope 1&2 emissions Scope 1&2 emissions - 35.3 % - 42 % by 2030 Upgrade by 2030 (base year: 2009) (base year: 2020) Scope 3 emissions Scope 3 emissions - 20 %