Accelerating
our impact
People and culture | Sustainable solutions | Digital leadership | Focus and scale
Annual Integrated Report 2022
Accelerating our impact
“ The last 12 months have been foundational and pivotal for Arcadis. We are in a strong position, with
healthy organic and profitable growth and record net revenue and backlog. We have made significant
progress in delivering our strategic priorities by fully implementing our Global Business Area structure
and strategically repositioning our business through the acquisition of exciting new companies.
These successes position us for a positive start to 2023, helping to accelerate our impact for clients
and the communities where we operate.”
Peter Oosterveer, CEO
People
and culture
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Introduction
Case | MOBILITY
“ We’re proud to be part of the team pioneering the energy
transition to a more sustainable world. It’s brilliant to see
Shell leading the way with this initiative, providing EV
drivers with an easy and rapid charging system.”
Paul Hamer | Programme Director
How we are different
Environmental planning and removal of existing fuel infrastructure
to transform a fuel station into an EV charging hub.
Impact
The result is Shell’s first ever site to have converted from selling
petrol and diesel to cater solely for electric vehicles, offering a
glimpse into the future of mobility.
9
high-powered, ultra-rapid 175kW charge points
Supporting Shell’s world-first transition
from fuel station to EV charging hub
Shell‘s EV Charging Hub, UK
The
Challenge
The
Solution
The
Impact
Electric vehicle (EV) drivers are looking for a charging experience that is
as fast, convenient and comfortable as possible. So, when it was time to
transform Shell’s Service Station in Fulham in the UK into an EV charging
hub, Arcadis stepped in to support with environmental planning and the
removal of existing fuel infrastructure, helping to pave the way for the
best solutions for EV drivers.
EV and battery technology is advancing rapidly. Today, charging speed
is limited only by the batteries themselves, meaning that a 175 kW
ultra-rapid charger will charge most vehicles up to 80% within 30 minutes,
in ideal conditions. With more drivers now making the switch to electric
vehicles, Arcadis supported Shell with the safe removal of old petrol and
diesel infrastructure at its existing fuel station in Fulham, ahead of the
installation of new charge points. The redeveloped station features a
sustainable design including a timber canopy with built-in solar panels,
as well as roof and shop windows that employ double glazing with high
insulating properties. With the customer experience paramount, the hub
includes a comfortable seating area, free Wi-Fi, a coffee shop and
supermarket, ensuring drivers can enjoy a pleasant environment while
recharging their vehicles.
This is Shell’s first ever site to have converted from selling petrol and
diesel to cater solely for electric vehicles, offering a glimpse into the
future of mobility. Shell Fulham now features nine high-powered,
ultra-rapid 175kW charge points, running on 100% certified renewable
electricity. By increasing the availability of these faster charging points,
drivers are assured of shorter charging times and ultimately can enjoy
a quicker journey and improved customer experience.
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Arcadis Annual Integrated Report 2022
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Quick links to main sections
Accelerating
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Introduction
Table of contents
Introduction
2022 at a glance 2
Message from the Executive Board 5
Message from the Chair 10
Our business and passion 11
The Arcadis journey 17
Executive Board report
Strategic context 19
Global business areas 24
Resilience 24
Places 28
Mobility 32
Intelligence 35
Stakeholder dialogue 38
Sustainable Development Goals 42
Connectivity matrix 45
People and culture 48
Sustainability 69
Digital leadership 99
Focus and scale 108
Governance & Compliance 116
Composition of the Executive Board 116
Composition of the Executive Leadership Team 117
Composition of the Supervisory Board 118
Corporate Governance report 120
Enterprise Risk Management 131
Supervisory Board report
Report by the Supervisory Board 146
Remuneration report 154
Financial statements
Consolidated financial statements 166
Company financial statements 238
Additional information
Other information 253
Independent auditor’s report 254
Limited assurance report of the independent auditor 265
Arcadis TCFD Disclosure 2022 268
Arcadis 2022 TCFD assessment 272
Other financial data 277
Five-year summary 278
Non-Financial Reporting People Metrics 2022 280
Company addresses 284
Glossary non-financial & financial indicators 286
Other 290
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1Introduction
2022 at a glance
People and culture at a glance
For definitions and methods of measure for the indicators included on this spread, please refer to the section Glossary non-financial & financial indicators on page 286. The indicators that fall within the scope of limited assurance of our external auditor
are marked with the
symbol. The Limited assurance report of the independent auditor was given on Arcadis excluding acquisitions. The KPIs with a * are reflecting Arcadis excluding acquisitions. See page 265 for the Assurance report of the
independent auditor, which includes details on scoping and outcomes.
35,617
Total workforce
headcount as at
31 December
2021: 29,236
+39
*
Employee engagement
employee net promoter
score (scale -100 to +100)
2021: +30
0.15
*
Total Recordable Case
Frequency (TRCF)
per 200,000 work hours
2021: 0.14
14.7%
Voluntary turnover rate
of permanent employees
14.9%
*
2021: 14.9%
38%
Women in total workforce
as % of permanent and
temporary employees
2021: 38%
0.05
*
Lost Time Case
Frequency (LTCF) 2022
per 200,000 work hours
2021: 0.05
2022 at a glance
Introduction
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2Introduction
2022 at a glance
Sustainability at a glance
18.9
*
Arcadis Carbon
Footprint
(MT CO
2
per FTE)
2021
1
: 16.4
0
*
Number of identified
environmental
non-compliances
2021: 1
94%
*
Employees passing Code of
Conduct training
as % of total employees
2021: 94%
>80%
*
Revenues that relate
to relevant SDGs
as % of net revenues
2021
2
: >80%
64
*
(100%)
Investigated AGBP
alleged breaches
assessed and, as needed,
investigated
2021: 91 (100%)
23
*
Number of appointed
privacy officers
under the privacy policy
2021: 14
1
2021 restated as of additional measuring of scope 3
2
2021 restated as calculation methodology changed to Solutions based reporting
For definitions and methods of measure for the indicators included on this spread, please refer to the section Glossary non-financial & financial indicators on page 286. The indicators that fall within the scope of limited assurance of our external auditor
are marked with the
symbol. The KPIs with a * are reflecting Arcadis excluding acquisitions. The Limited assurance report of the independent auditor was given on Arcadis excluding acquisitions. See page 265 for the Assurance report of the
independent auditor, which includes details on scoping and outcomes.
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3Introduction
2022 at a glance
Arcadis KPIs
3,019
Net
revenues
in € millions
2021: 2,565
202/2.26
Net Income from
Operations
in € millions /
Per share in €
2021: 175/1.96
0.74
Dividend per share
proposed, in €
9.8%
Operating
EBITA margin
as % of net
revenues
2021: 9.6%
10.7%
Net Working Capital
as % of gross revenues
2021: 10.7%
63
Days Sales
Outstanding
(DSO)
2021: 63
54%
Return on
Net Working Capital
2021: 64.7%
1.6
Net debt to
EBITDA ratio
(average)
2021: 0.8
173
Free cash
flow
in € millions
2021: 234
For definitions and methods of measure for the indicators included on this spread, please refer to the section Glossary non-financial & financial indicators on page 286. The indicators that fall within the scope of limited assurance of our external auditor
are marked with the
symbol. The Limited assurance report of the independent auditor on financial KPI's was given on Arcadis including acquisitions, which is for all KPI's on this page the scope.
2021: €0.70 per ordinary share plus an
additional €0.60 per ordinary share
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4Introduction
Message from the Executive Board
Welcome to our 2022 Annual Integrated Report
The last 12 months have been foundational
and pivotal for Arcadis. We are in a strong
position, with healthy organic and profitable
growth and record net revenue and backlog.
We have made significant progress in delivering
our strategic priorities by fully implementing
our Global Business Area structure and
strategically repositioning our business
through the acquisition of exciting new
companies. These successes position us for
a positive start to 2023.
It would be remiss of me not to mention that 2022 has not been
without challenges. We cannot forget the heart-breaking images
of Ukrainians fleeing their homes following the illegal invasion by
Russian armed forces in February, the extreme weather conditions
across Europe, North America and Australia across the year and the
subsequent impacts on the world economy. These events remind us
of how fragile the world can be at times. At the same time, it was
humbling to see how Arcadians responded to support others affected
by crisis, particularly in Ukraine, where our ‘Ukraine Task Force’ put in
extraordinary efforts to support people displaced and impacted by
the conflict in Eastern Europe.
“ We have made great progress in delivering on our
strategy, fully implemented our new Global Business
Area structure, made exciting new business
acquisitions and are truly becoming a digital leader
across our industry.”
Peter Oosterveer, CEO
Message from the Executive Board
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5Introduction
Message from the Executive Board
“ Our three GBAs – Resilience, Places and
Mobility – have been up and running for
12 months. The new model is enabling
us to share expertise and capabilities to
better serve our clients, win new projects,
and provide exciting opportunities for
our people.”
I am encouraged that despite the geo-political and economic
uncertainty, national governments, public agencies and the private
sector continue to invest. They recognize the need to tackle climate
change and to address biodiversity loss to enable healthier lives,
thriving nature, effortless transport, and more enjoyable places.
The recent US Inflation Reduction Act, US and European CHIPS Acts
and the REPowerEU energy plan in Europe are examples of
investment packages where Arcadians are offering their expertise
to create sustainable and digital solutions for our clients and the
communities in which we operate.
Delivering our targets through focus and scale
With megatrends like urbanization, climate change, digitalization
and growing societal expectations shaping the needs of our clients,
I am pleased to report we continued to make great strides to deliver
our ‘Maximizing Impact’ strategic targets in 2022.
The Global Business Areas (GBAs)
Our three GBAs – Resilience, Places and Mobility – have been up
and running for 12 months. The new model is enabling us to share
expertise and capabilities to better serve our clients, win new
projects, and provide exciting opportunities for our people.
We have also started to see better cross-GBA collaboration.
For example, in our Places and Mobility businesses we have seen
close collaboration to grow our industrial manufacturing expertise,
particularly around the building of gigafactories to support battery
production and the rollout of electric vehicles.
The rapidly changing geopolitical conditions and resulting client
demands have caused my leadership team to even more closely
than before review opportunities and investments to help accelerate
impact for our people, clients, shareholders and crucially future proof
our business.
Strategic acquisitions and divestments
As a result of this review, in July we announced the acquisition of
Canadian headquartered IBI Group, a forward thinking, technology-
driven design firm. This was followed in October by the announced
acquisition of DPS Group, a full-service consultancy in the high
growth and resilient life sciences and semiconductor manufacturing
sectors. Both strategic acquisitions will grow our talent to 35,617
people globally, strengthen Arcadis’ position in North America and
Europe, drive growth of our combined solutions and help to focus
and scale our operating model. This has also led to the creation of
a fourth GBA – Intelligence – and an enhanced architecture and
urbanism offering within the Places GBA in 2023.
We were also pleased to welcome HydroNET, a provider of intelligent
water solutions, and Giftge Consult, a leading player in the German
energy transition market to the Arcadis family in 2022.
In line with our strategic targets to focus on growth markets and
scale our GBA services and solutions, we also took the decision to
divest and withdraw from several smaller countries in Europe and
Southeast Asia in 2022.
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6Introduction
Message from the Executive Board
“ Arcadis has been pioneering solutions to
protect, restore and improve our planet
for as long as we have been in existence.”
Sustainability remains at the core of everything we do
Addressing climate change and biodiversity loss are the greatest
challenges of our generation and we need to play our part. As a member
of the United Nations Global Compact, we consider it a moral obligation
and an opportunity to develop smarter, cleaner, and greener solutions
for our clients and communities. We have committed to being a leader
in our sector; challenging norms, embracing innovation, collaborating
with the best and pushing boundaries to solve this challenge.
This is not new for Arcadis. As a responsible business, we have been
pioneering solutions to protect, restore and improve our planet for
as long as we have been in existence. Whether it is our long-standing
expertise in supporting the transition to renewable energy sources
in the Netherlands and Germany or more recently pioneering nature-
based solutions to protect and ‘green’ the cities of Rotterdam and Paris,
sustainable solutions are in our DNA.
Furthermore, the recent number one position in our industry by ratings
agency Sustainalytics and ‘Platinum’ grading from EcoVadis show that
our commitment and drive around sustainability continue to be world
leading. Yet, like all businesses, we can’t be complacent. We must be
more ambitious and continue to play our leading role in accelerating
the transition to a net zero world for our clients.
This year, we have begun to embed our Sustainability Advisory into
our operations and client solutions. The Sustainability Advisory brings
together experts from around the world and is now operational in
eight countries, helping to develop comprehensive strategies for our
clients. Together with our solutions leaders, we now provide integrated
end-to-end sustainable solutions at scale. Whether devising a plan to
decarbonize buildings in the City of London, designing a coastal flood
management system to stop Battery Park and Lower Manhattan being
deluged by water, or helping to accelerate the rollout of electric bus
fleets in Australia, Arcadians are on hand to help.
In the debate around sustainability, it is crucial we don’t forget about
people and recognize growing inequality and further increased societal
expectations. This year, I was proud to continue to play an active role
on the Business Commission to Tackle Inequality, a coalition of
organizations within the World Business Council for Sustainable
Development (WBCSD), with the mission of mobilizing the private
sector to tackle inequality and generate shared prosperity. This is a
topical issue for our clients and one we also reflected in our 2022
Sustainable Cities Index. The award-winning report ranks 100 global
cities across three sustainability pillars of Planet, People and Profit to
evaluate their overall prosperity and outlines steps that authorities can
take to improve quality of life for inhabitants.
Within Arcadis, we have also made strides to embed diversity, equity,
inclusion and belonging into our operations, a renewed commitment
to hybrid working and the launch of global affinity groups to champion
inclusion and diversity. Our progress has been recognized by Forbes
magazine, which not only ranked Arcadis as one of the best
management consultancy firms, but one of the world’s top female
friendly companies in 2022. Great achievements that we plan to build
on next year.
There is no easy fix to solve urgent issues like growing inequality, the
climate crisis, and biodiversity loss, but through greater leadership,
innovation and collaboration, I believe the sectors in which we operate
can help make a difference.
Driving digital leadership and growth
Reliance on technology and data has continued to grow, and our
clients’ appetite to innovate and digitize their solutions shows no
signs of slowing. At Arcadis, we have been investing in digital skills
and empowering our people to create digital solutions to meet our
clients’ greatest challenges. To support these ambitions, in 2022
we transitioned most of our IT infrastructure to the cloud (both
networking and hosting) which will further increase the scalability
of our client solutions.
This year, I am pleased to see the emergence of new digital products,
including our innovative AI-solution called Transport Strategy Optimizer.
The product will help our mobility clients to identify and prioritize their
investments while allowing a more transparent and collaborative
decision-making process. Meanwhile mature digital solutions like
FieldNow – an onsite data collection tool - continue to grow from
strength to strength, with over 100 new commissions in 2022.
The delivery of digital services and products has been further
enhanced through the creation of the Intelligence GBA. The new
GBA will bring together the best of IBI’s Intelligence business and
Arcadis Gen to provide clients with innovative, technology-enabled
solutions, meeting our ambition to be a digital leader in our industry.
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7Introduction
Message from the Executive Board
Looking to the future
Our healthy organic growth, solid margins and a strong balance sheet
throughout 2022 have enabled us to invest in our future and create
new and exciting solutions for our clients. This is reflected not only by
the growth but by our improved client satisfaction feedback and net
promoter score, which has increased by five points in 2022 to 30.
Investment in our people and solutions combined with increased
funding from both public and private sector clients in growth areas
such as smart mobility, energy transition and climate adaptation will
serve us well in 2023.
With the integration of a new architecture and urbanism division
within our GBA Places and the creation of the fourth GBA intelligence,
we have a unique opportunity to better serve our clients with new
sustainable and digital solutions.
To conclude, I would like to thank my fellow Arcadians. Through the
combined power of 35,617 global colleagues, we can really add value
to our clients, make a positive impact on society and ensure a
promising and sustainable future for Arcadis.
Our Supervisory Board and shareholders have continued to offer
their support and counsel throughout 2022, which I have greatly
appreciated, and I thank our clients for their loyalty and
encouragement to develop new solutions to their problems.
Lastly, this will be my final annual report. I plan to retire at our annual
General Meeting in May to spend more time with my family. Pending
approval by our shareholders, I will hand the baton over to Alan
Brookes, our Chief Operating Officer, who brings significant
international leadership experience, a strong strategic, commercial
and operational background, and a deep understanding of Arcadis.
It has been my honor and privilege to lead Arcadis over the last six
years. It has been challenging at times, but the business is on a strong
and healthy footing, well on its way to delivering its strategic targets
and accelerating its impact in 2023.
On behalf of the Executive Board
Peter Oosterveer, CEO
16 February 2023
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8Introduction
Message from the Executive Board
Virginie Duperat-Vergne
Chief Financial Officer and
Executive Board member
Peter Oosterveer
Chief Executive Officer and
Executive Board member
“ Arcadis is on a strong and healthy
footing, well on its way to delivering its
strategic targets and accelerating its
impact in 2023.”
“We have produced a strong
set of results in 2022 and
through our new acquisitions
been able to strategically
reposition our business into
high growth markets and
future-proof sectors.”
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9Introduction
Message from the Chair
Arcadis continued to deliver healthy organic growth with a robust
operating performance in 2022. The company’s new operating model,
structured around its Global Business Areas (GBAs), is yielding the
expected results as a catalyst for growth. It helps leverage the global
scale of the company’s capabilities through increased global
collaboration and enables Arcadis to better serve the changing
needs of clients around the world.
In 2022, the Supervisory Board was closely involved in and fully
supported the acquisitions of IBI Group, DPS Group, HydroNET and
Giftge Consult which, together with the divestment of certain non-
core operations, have rebalanced the company’s geographic and
business portfolio. These transformational steps repositioned
Arcadis towards high growth and resilient markets in Europe
and North America.
Looking ahead, 2023 is the delivery year for the goals set out in the
‘Maximizing Impact’ strategy and I am confident in the company’s
ability to deliver. The Supervisory Board’s focus areas in 2023 will
include embedding the recent acquisitions and shaping the newly
created fourth GBA – Intelligence. The Supervisory Board is excited
about the opportunities that lie ahead for Arcadis to create
innovative, sustainable and digital solutions for clients and
communities around the world.
The Supervisory Board has accepted the wish of our CEO,
Peter Oosterveer to step back as of the upcoming AGM in May 2023.
We are immensely grateful for his leadership in bringing Arcadis to
the strong and resilient position it is currently in. This is a completely
different reality than the one Peter started from in 2017. We will
miss him as a strong business leader with a keen eye for people and
culture. It has been a great pleasure to work with Peter. We have an
outstanding internal candidate to succeed him as CEO, and are fully
confident that Alan Brookes, our current Chief Operating Officer,
following approval by the AGM, will be able to successfully lead
Arcadis into the coming years. The Supervisory Board will be working
closely with both Peter and Alan to ensure a seamless transition.
At the annual General Meeting in 2023, we will be saying goodbye
to two Supervisory Board members. Niek Hoek joined the board in
2013 and served as its chair from 2015 to 2022. After 10 years of
membership, he is not standing for another two-year term. The board
has benefited greatly from his sage and inclusive leadership style.
Wee Gee Ang joined the board in 2017 and was re-elected for another
four-year term in 2021. He is retiring mid-term to focus on his
interests in Asia. We thank both gentlemen for their contributions
to our Supervisory Board.
The past year has again shown the importance of discipline and focus
in creating long-term, sustainable value for all stakeholders. Thanks
to the remarkable talent, commitment and resilience demonstrated
by Arcadians around the globe, the company can look back on yet
another strong year and look to the future with confidence.
On behalf of the Supervisory Board of Arcadis NV
Michiel Lap
“We have made significant
progress towards achieving
our strategic targets.”
Stellar performance in 2022 and a confident outlook
Priorities for the Supervisory Board in 2022
The Supervisory Board, in coordination with the Executive Board and
the Executive Leadership Team, identified and put special emphasis
on the following Supervisory Board Priorities in 2022:
1. Contain and improve attrition
2. Institutionalize the GBA Operating Model and deliver on 2022 plan
3. Maintain confidence of investor base
4. Further improve performance of CRTKL, for integration of
architectural business into Places GBA
5. Maintain momentum on ESG, including deployment of detailed
net zero roadmap and implementation of non-financial reporting
6. Deploy M&A strategy aligned with GBA strategy and goals
7. Succession planning
Of course, the health and safety of our people and the past year’s
geo-political and economic instability and its impact on Arcadis, its
people and its performance were also a top priority in 2022.
Message from the Chair
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10Introduction
Our business and passion
Our business and passion
Arcadis is the world's leading company delivering sustainable design, engineering, digital and consultancy solutions for
natural and built assets. Our 2021-2023 strategy is centered on maximizing our impact by providing focus, global scale
and a strengthened sustainable and digital offering to our clients and the communities where we operate.
With growing urbanization, climate change, increased digitalization, and greater societal expectations
presenting challenges for our clients, over the last 12 months we continue to see growing demand for
the solutions and services we offer to address these problems. With 35,617 people, in around 70 countries,
we operate from a position of strength with well-established local expertise and global scale to meet
client needs and ultimately improve quality of life for all.
Our segments Our diversified portfolio is based on a global presence, with leading positions across our
Global Business Areas Resilience, Places and Mobility, that were introduced early 2022 and our latest
addition Intelligence. In each of these GBAs, we pair our global market sector knowledge with a strong
understanding of local market conditions.
Our capabilities Combined with our deep market sector insights, our global solutions, and collaborative
teams, we help clients overcome the most complex challenges, wherever they exist. The introduction of
our GBAs early in 2022 further strengthened our ability to collaborate and apply our knowledge
globally. And, following the acquisition of IBI Group, we have established a fourth GBA, Intelligence
to combine our digital expertise and products and provide clients across all our business areas with
innovative, technology-enabled solutions.
Our clients Our clients require trusted partners capable of delivering best-in-class solutions regardless
of where they are sourced. We leverage our global expertise, and create best value-added solutions and
technology to serve our public, regulated, and private sector clients to the highest standard. design
principle in our approach.
All percentages based on FY ’22 net revenue
31
24
38
6
Public
Regulated
Private industrial
Clients in %
Consultancy
Architectural design
Design & Engineering
Program, Project &
Cost Management
Services in %
Resilience
Places
Mobility
Intelligence
Americas
EMEA
APAC
GBAs in % Geographical in %
41
1
34
25
13
44
43
26
40
34
Our services We offer our clients full lifecycle solutions comprising business and sustainability advisory
services; consulting; program, project, cost and commercial management; and design and engineering.
We develop client relationships that span the lifecycle of their assets, from planning and design to
operation and disposal. We integrate digital expertise and products where possible and use sustainable
outcomes as a design principle in our approach.
Our business and passion
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11Introduction
Our business and passion
Our position in the industry value chain
Arcadis is a full-service design, engineering, and consultancy organization. Our work
spans the entire asset lifecycle. We consult for the full length of projects, even
assisting clients with their investment programs, rather than just individual projects.
Digital components are built into our solutions to allow asset performance control
from conception to decommissioning and back into redevelopment.
We know our industry sectors well and share that knowledge globally to provide best-in-class sustainable
solutions to our clients, wherever they are located. We cover the entire lifecycle but can also add value to
clients in each individual phase of projects, working with partners and (sub)contractors to deliver complex
projects on time and within budget.
We approach our clients’ complex challenges with a carefully chosen combination of deep technical
insights, solid business consulting skills, strong management capabilities, digital proficiency, and
sustainable prowess. By bringing digital capabilities to projects we provide our clients more transparency
and efficiency and better user experience insights in the conceptual phase of projects, enhanced control
during a project’s realization, and better insights into an asset’s performance during its economic lifespan.
Increasingly, sustainability is a key to getting projects funded, accepted by society and to win work. It can
bring benefits like pricing power, cost reductions, a stronger labor market position, business opportunities
for new products and services as well as a reduction in risks and better access to capital. Sustainability is
therefore a design principle when we develop our solutions for clients. Through our client solutions we are
committed to contribute to the sustainable development agenda and have a positive impact on society,
the people, and communities we serve.
Planning
and
development
1
Design
Construction
Project
management
Facility
management
Repurposing/
Retrofit
4
5
6
3
2
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lifecycle
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y
Financial
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12Introduction
Our business and passion
>>>
Human and intellectual capital
Our 35,617 talented and professional people provide expertise, competencies and
consulting skills to deliver value for clients throughout the lifecycle of natural and
built assets.
Social and relationship capital
Sustainable results are achieved in close collaboration with clients. Success also
hinges on good relationships with other key stakeholders, including employees,
subcontractors and the communities in which we operate.
Financial capital
Equity and loans help us to invest in the development of our people, and the growth
of our business, enabling us to service our local and global clients equally well.
Natural capital
Natural capital is the stock of renewable and non-renewable resources that combine
to yield a ﬂow of benefits to people. In our operations and through our services
on behalf of clients, we endeavor to reduce the dependence on natural capital by
limiting the consumption of energy, paper, water and other natural resources.
Digital capital
We are going through a digital transformation and as a result we develop digital
assets which can become replicable digital solutions or platforms for our clients to
drive down cost, increase eciencies and make our solutions more end-user centric.
We deliver sustainable solutions through
four categories of services in four project/expertise areas
Underpinned by
41
25
34
1
31
6
X
38
24
Net
revenue
breakdown
by expertise
Net
revenue
breakdown
by service
Value creation How we create and share value
Arcadis’ value creation process aims to optimize the impact of our business processes for all stakeholders.
We achieve this through the efficient use of the capital at our disposal. Our overall focus is on long-term value creation.
Consultancy
Architectural design
Design & Engineering
Program, Project & Cost Management
Resilience
Places
Mobility
Intelligence
Inputs using all resources wisely
Value creation process
Shared values
|
The Arcadis Way
|
Global footprint and expertise
Technological capabilities
|
Digital skills
|
Sustainable thinking
All percentages based on FY 22 net revenue
in % of Net revenue
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13Introduction
Inputs using all resources wisely
Value creation process
Our business and passion
Human and intellectual capital
A growing workforce with improved levels of employee engagement demonstrated by:
• Employee Net Promotor Score at +39 (on a scale from -100 to +100)
• Successfully on-boarding of over 7,000 Arcadians in 2022
• Continued investment in training & development for our employees
• Continuous commitment to Diversity & Inclusion leading to maintaining the percentage of women in total workforce
• Continued investments in Health & Safety, also in the home workplace
Social and relationship capital
• High level of client satisfaction demonstrated by a client satisfaction score of 8.2
• Building on brand awareness in every region through global and local campaigns
• Client experience score of 30 (Net Promoter Score)
Financial capital
We produced an outstanding free cash ﬂow, and healthy backlog growth which combined create a strong financial position
• Operating EBITA margin 9.8% (2021: 9.6%)
• Net debt to EBITDA ratio to 1.6 (2021: 0.8)
Natural capital
Through our projects we assist clients in building a Sustainable future by providing integrated and sustainable solutions.
Launched a global Sustainability Advisory practice to help our clients establish bold sustainability ambitions.
• Advising a growing number of clients on biodiversity improvement strategies
• >80% of revenues related to relevant Sustainable Development Goals (SDGs)
Digital capital
• Establishment of fourth GBA, Intelligence, to bring together our digital experts to oer innovative client solutions across all our
business areas
• Launched the Standardize then Automate program to identify, develop, and reap the benefits from globally aligned
processes, definitions, and ways of working
Output created per capital
Employees
Pride, satisfaction and a best place to work:
• Continued support in health and wellbeing for our people
• Voluntary turnover rate decreased to 14.7% (2021: 14.9%/ 2020: 8.7%)
• Maintained percentage of women in of total workforce at 38% and improved
our understanding of other under-represented groups
• Health & Safety indicators well below public industry benchmarks
Clients
• Net promoter score up to 30 (from 25), overall satisfaction stable at 8.7 (-0.1)
• Organic growth 8.9%
• Digital solutions, exploration of new technologies through co-creation
• Client approach via sector programs, core solutions and Global Cities
• Including sustainability in all of our client solutions
Investors
Competitive and sustainable returns:
• Proposed dividend of €0.74 per share, 33% of the Net income from Operations
• Earnings per share €2.26
• Return on Net Working Capital of 65%
Civil society
• Assisting clients in dealing with the eects of climate change
• Engaging with local communities through Sparks and UN Habitat programs
(since 2010 Arcadians have supported 129 UN Habitat projects in 30+ countries)
• Continued contribution to relevant Sustainable Development Goals (SDGs)
through client solutions
• Financial and other humanitarian support to Ukraine for relief
Outcomes for our stakeholders
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14Introduction
Our business and passion
Our passion Improving Quality of Life
People first
We care for each other and
create a safe and respectful
working environment where
our people can grow, perform,
and succeed, placing people
and their experience at the
center of our solutions.
Client success
We are passionate about our
clients’ success and bring insights,
agility, and innovation to co-create
value working collaboratively to
learn and recognizing our
successes are mutual.
Integrity
We always work to the highest
professional and ethical standards
and establish trust by being open,
honest and responsible. We are
accountable to ourselves, our
clients, the communities we
serve and our commitment to
sustainable outcomes for future
generations.
Sustainability
We base our actions for
clients and communities on
environmental responsibility and
social and economic advancement,
ensuring our solutions enhance
community inclusion for now,
and into the future.
Collaboration
We value the power of diversity
and our global capabilities and
deliver excellence bringing the
very best of our people and
solutions for our clients by
working as One Arcadis.
Our behaviors
• We value each other
• We deliver on our promises
• We always bring our best
• We work as One Team
• We dare to shape the future
At Arcadis, our passion is to improve quality of life through the projects we undertake for our
clients. Our global values guide us in everything we do. Our primary aim is long-term value creation
for all stakeholders, delivering sustainable solutions to clients, and the communities we serve.
Our values
We differentiate ourselves through our talented, engaged and passionate people, our unique combination of capabilities
covering the entire asset lifecycle, our deep market sector insights, our digital proficiency, our sustainable prowess,
and our ability to seamlessly integrate health and safety into the design of our solutions around the globe.
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15Introduction
Leonieke Heldens | Landscape architect
How we are different
Working in partnership on an area-based approach to finding
solutions for present day challenges around water management,
nature and agriculture.
Impact
By restoring water levels and preventing further environmental
degradation, heritage estates can flourish, bringing both
environmental and economic benefits to the region.
5
heritage sites
The
Challenge
The
Solution
The
Impact
The Baakse Beek region is home to a large concentration of listed
monuments and heritage sites, including castles, country houses and
estates, many of which date back to Medieval times. These have an
important role in shaping the cultural identity of the area, supporting the
livelihoods of tenant farmers and bringing economic benefits through
tourism. However, thanks to the impact of climate change, long periods
of drought and occasional heavy rainfall are starting to take their toll.
The built environment needs to adapt, but how can new climate
adaptation measures best be embedded in these historically
valuable landscapes?
To halt weather-related environmental degradation, the Ministry of
Education, Culture and Science has given local authorities and civil society
organizations scope to improve water levels on green heritage sites. As part
of a pilot, the Province of Gelderland is working with the Rijn en IJssel Water
Board, the municipality of Bronckhorst and estate owners to improve water
management. Key is exploring how underground moisture levels can be
managed and retained after heavy rainfall, so that more benefit can be
derived in times of drought. We are contributing project management,
landscape architecture and other specialist technical expertise, conducting
early water system analysis, creating preliminary designs and hydrological
calculations, making environmental management recommendations for
maintaining soil biodiversity, as well as design and technical
implementation of water management solutions.
By restoring water levels, heritage estates can flourish, in turn bringing
both environmental and economic benefits to the region. Further, the
knowledge and experience gained during this pilot program will be used
to benefit similar projects and support the development of government
policy for the restoration of nature on green heritage sites. In the long
term, this will create an integrated solution that takes into account the
interests and expertise of all parties involved and makes an important
contribution to the climate challenge.
Case | RESILIENCE
Water management for green heritage sites
Baakse Beek, Netherlands
“ Climate adaptation measures need to take into account and
reflect the history and heritage of a site, even at the very
earliest stages of conception.”
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16Introduction
The Arcadis journey
Export of water
and infrastructure
services to emerging
economies
Branched out into
urban development
Association (KNHM)
and Company
(Heidemij) separated
Geraghty & Miller brings
U.S. expansion and
NASDAQ listing
Start of
European
expansion
strategy
Arcadis founded
as association
for wasteland
redevelopment
Introduction
Arcadis brand
Ventures
into rural
development
Roots of Hyder
Consulting
Acquisition
RTKL - high-quality
architecture
Acquisition Malcolm
Pirnie - leading
global water
position
Acquisitions of E2
Manage Tech, SEAMS
and EAMS expand
digital capabilities
Establishment
Arcadis Gen
– digital incubator
Acquisition
Over Morgen
Acquisitions
Hyder and Callison
strengthen
engineering
and architecture
Acquisition EC Harris -
stronger UK position,
growth Asia
Acquisition of IBI Group -
expansion in North
America and Digital
Acquisition of DPS
Group - complementing
service offering in
Life Sciences and
Semiconductor markets
Acquisition of Giftge
Consult - strengthening
energy transition
offering
Acquisition of HydroNET
- digital water solution
Acquisition
Langdon & Seah
leading position
in Cost Manage-
ment Asia
Introduction of
one global brand
From its early origins in the Netherlands 135 years
ago, Arcadis grew into a global industry leader
through a series of acquisitions starting in the
nineties. In 2022 we made especially big strides
adding over 6,000 new colleagues through
targeted acquisitions.
2012
2015
2020
2009
1997
1990
1959
1888
1960
1972
1993
2007
2011
2022
2014
2017

2019
1925
1739
The Arcadis journey Centuries of sustainable contributions
The Arcadis journey
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17Introduction
This Executive Board report describes how we delivered on our
strategy in the past year. It shows how we took into consideration
our strategic context and operating environment, how we fared in
our strategic pillars with corresponding targets. It explains our
accomplishments in our operating segments (being the Global
Business Areas since the first of January 2022). The Report also
elaborates on Governance and Compliance, and Risk Management.
Executive
Board report
Connectivity matrix 45
People and culture 48
Sustainable solutions 69
Digital leadership 99
Focus and scale 108
Governance & Compliance 116
Composition of the Executive Board 116
Composition of the Executive Leadership Team 117
Composition of the Supervisory Board 118
Corporate Governance report 120
Enterprise Risk Management 131
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Strategic context
Arcadis is more than design and
engineering – we are also a premier
provider of consulting/advisory and
environmental sustainability services.
Together, our combined market
exceeded $1.5T in 2021 and is expected
to grow at a CAGR of 6% reaching just over
$2T by 2026
1
.
Within this market, the competitive
landscape is characterized by:
• Many small enterprises with the top
20 global design firms holding <10%
of the market.
• Differentiation based on technology and
ecosystems that deliver efficiency, cost
avoidance, and sustainability.
• Competition emerging in adjacent markets
such as management consulting, real
estate services, contracting, and digital
startups.
• Market diversification focused on North
America and Europe, followed
by Asia Pacific and Latin America
2
.
Urbanization
70% of the population will live in cities by 2050. Population shifts are putting
tremendous pressure on resources, ageing infrastructure, and the environment.
Climate change
The physical effects of climate change are intensifying, impacting health,
water, food, and energy; and challenging the resilience of our infrastructure.
Digitalization
Technology is improving productivity and putting data at the center of
business models that can disrupt traditional delivery.
Societal expectations
Stakeholders are demanding that companies and governments act
with integrity to create a resilient, sustainable, and inclusive future.
Our strategic context: the world in which we operate
Global trends in our operating environment, what our stakeholders tell us, the Sustainable Development Goals,
and our competitive landscape are all important contextual inputs for our strategic ambitions.
1
The Business Research Company Global Market Model
reporting & Arcadis analysis 2022
2
ENR Top 150 Global Design Firms 2017 through 2022
Impact
Disruption
Digital
Choices
Value Partnership
Stakeholders Competition
Mega Trends
Sustainability
Focus
Scale
Sust.
Solns
Our people, clients, partners and investors require us to deliver long
term value creation by supporting a healthy inclusive work environment,
delivering competitive and sustainable returns with integrity, and by positively
impacting global societal challenges.
Serving as a positive force in the war against climate change requires
commitment through internal operations as well as the approach to client
solutions and strategies, turning them into action.
Strategic context
Strategic context
Strategic context
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Strategic context
Sustainability
• Embed as an integral part of everything we do
• Accelerating the transition to net zero
Our 2021-2023 Strategy: ‘Maximizing Impact’
People and culture
• Provide greater opportunities for all Arcadians
• Create a safe, respectful and inclusive workplace
Engagement of our people, retention, diversity,
safety, and privacy
Carbon footprint, sustainable development,
environmental and business principal compliance
These strategic themes drive our
organizational commitments:
Focus and scale
• Provide expertise where we have a right to play
• Leverage the global scale of asset knowledge
Organic growth and business performance
Digital leadership
• Transform delivery, operations, and decision making
• Evolve old business models
Process standardization and automation,
digital revenue, data security
People
and culture
Our purpose is simple: improving quality of life, something that has never been more important. To live up to this, our strategy to
maximize our impact on the biggest societal challenges is supported by our people and culture and aligned to three key themes.
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Strategic context
Maximizing Impact: Targets to deliver our ambition
Financial targets
Non-financial targets
Voluntary staff turnover
<10%
Staff
engagement
Improving annually
Brand
Top 3 Brand Strength Index
Diversity
Women in total workforce
>40%
Carbon footprint
• Reduce emissions aligned
with a 1.5
°
C science-based
target before 2035
• In line with our Net Zero journey
investing in high quality,
certified abatement and compensation
programs from 2020
Organic net
revenue growth
Mid-single digit
Margin
Operating EBITA margin >10%
Net Working Capital
& DSO
NWC <15% of gross revenues/
DSO <75 days
Return on Net Working
Capital
Operating EBITA/ Net
Working Capital: 40-50%
Return to shareholders
• Dividend: 30-40% of Net Income from
operations
• No dilution
• Additional returns when appropriate
• Net debt/EBITDA between 1.5 and 2.5
People
and culture
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Strategic context
Making Progress on our ‘Maximizing Impact’ strategy
* Global Excellence Centers Leading
Our strategy amplifies the role of our organization as a positive force in society. Since launching in 2021, we have advanced
our commitments in the following ways.
• Acquisition of IBI Group in part serves as a digital accelerator, shaping the fourth GBA:
“Intelligence”
• Investing in new digital solutions, such HydroNet and the Transportation Strategy
Optimizer
• Driving standardization & automation of solutions to provide greater value to clients
• Strengthening our position in digital advisory, to support clients in their journey to
transform
Digital leadership
• Acquisition of Giftge Consult strengthening further our position in the energy
transition market
• Acquisition of DPS strengthening further our position in sustainable manufacturing –
particularly Life Sciences and Chip Manufacturing
• Expanding our strength in strategic consultancy for sustainability across ESG strategy
& reporting, resource optimization and value chain engagement
Sustainability
• Focus on high growth end markets and geographical core markets and divesting
non-core geographies and businesses
• GBA structure and Global Excellence Centers driving client focus, operational
efficiencies and consistency in data management
• Strengthening of our market position in North America and UK/Europe through
our acquisitions
Focus and scale
GBA model fully operational
Effective from 1 January 2022 our Global Business Areas/ GBAs (Resilience, Places and Mobility) became
the home of our previous regional business lines and solutions. We are already seeing growth in
knowledge exchange around the world, with our clients benefitting from our collective best practices.
Following the successful completion of the IBI Group acquisition in September, we also established our
fourth GBA – Intelligence. The new GBA combines the best of IBI Group’s Intelligence segment and
Arcadis Gen to create an attractive suite of data driven products and solutions to meet the ever-changing
priorities of our clients.
Strategic repositioning achieved
The implementation of our global operating model proved to be successful over 2022 and accelerated
the pace of organic growth in the current market environment. In addition, our strategic acquisitions of
HydroNet (digital water), IBI Group (sustainable & digital/intelligent urbanism), Giftge Consult (energy
transition) and DPS (sustainable manufacturing), strengthen our position in the market. Finally, we have
driven operational efficiencies through the new GBA model and greater use of GECs, and by divesting
operations that did not fit our priorities. The benefits this progress has delivered can be seen in the
growing client demand for our digital products and sustainable solutions, highlighted by strong results
and a record backlog.
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Strategic context
New ‘Intelligence’ GBA to maximize our digital impact
Attractive Suite of Combined Client Solutions
• Digital Client Solutions
• Innovation
• Driving Efficiency & Productivity
• Recurring Revenue
Resilience
Mobility
Places
We have combined the best of the IBI Group Intelligence and Arcadis Gen – to support the other GBAs with digital solution
innovation and efficiency; and build recurring revenue with Software as a Service and Software as a Product.
+
Intelligence
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Global business areas
Resilience
Global business areas
We work to protect our natural environment and water resources, while powering our world for
future generations. With climate change, biodiversity loss, water scarcity and the need for
equitable and just access to energy and resources presenting some of today’s greatest challenges,
our Resilience business area is focused on partnering with our clients for holistic solutions.
Heather Polinsky
Global President Resilience
Global business areas
Resilience Solutions
• Climate resilience: Ensuring our communities continue to thrive in
the face of climate uncertainty by providing services in water
management, flood protection, urban heat and water, ports and
wildfires;
• Energy transition: Reducing global warming by transitioning
towards low-carbon and renewable sources of energy across
utilities, urban areas and future entrants, considering energy
transmission, distribution and storage;
• Water optimization: Supporting public and private clients to
manage water resources in a sustainable way so it’s ‘fit for future’,
offering a full breadth of services throughout the entire water
cycle;
• Environmental restoration: Restoring the environment with
specialized expertise in global portfolio execution and emerging
contaminants (e.g. PFAS), using our cutting-edge science &
technology at all stages – from site characterization and cleanup to
closure and redevelopment;
• Sustainable operations: Ensuring safe, reliable, compliant and
sustainable operations, supported by data driven insights and
digital tools to manage operational risks, enable business
continuity and meet social and environmental needs for future
generations;
• Enviro-socio permitting: Providing a license to operate by
ensuring that capital projects and the use of resources are
protective of the environment, and focus on embedding and
upscaling equity in alignment with societal needs;
• Sustainability advisory: Enabling sustainability ambitions by front
end environmental, social, and governance advisory services for
strategy, operations, products, reporting and supply chain.
10,694
Total headcount
1,239
2021: 1,041
Total net revenue
in millions of euros
41%
2021: 41%
Total revenue
as % of total Arcadis
Geographical in %
Net Revenues 2022
Full Year pro forma* in %
Americas
EMEA
APAC
69
2
29
* Geographical split including full year of acquired companies
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Global business areas
Market Dynamics and client opportunities
• Increased shift towards a low-carbon, green and equitable economy.
The acceleration and unpredictability of weather events and the
latest IPCC reports have signaled a global climate emergency.
• Sharp increase in clients demand for renewables or low carbon
energy, making climate adaptation a priority, and rethinking
infrastructure and global supply chains.
• Key drivers of the Environmental services market remain:
energy transition, sustainability, emerging contaminants,
and climate change.
The impacts of these trends have also put a focus on a just and
equitable transition, as highlighted at COP27. Societal pressure brings
topics of affordability and social equity to the top of the agenda in
many of the markets we are active in. This is a key area of focus for
Arcadis as we strive to improve quality of life in the communities we
operate. With so much change, the use of data to aid credible
decision making and drive actions has also fueled the need for
greater digitalization, signaling the need to act faster.
The Resilience GBA is well placed to address the opportunities we
see. Since our launch in 2021, key actions have been taken including
identifying, launching and growing solutions. We have focused
investments in embedding sustainability, driving innovation and
scaling the best of what we do across our geographies.
• Recruitment and retention have been a key focus to ensure we
are delivering on our growth ambitions and client commitments.
Over 2,300 Arcadians have been hired in Resilience over the
12-month period.
• We continue investing in areas where we have a unique advantage
as ‘proven pioneers’:
– Energy transition in Europe, the United Kingdom and the U.S.
– Leveraging PFAS expertise from 1,000 sites across the globe,
with significant engagement in the U.S. and Europe, and growth
in Brazil, Canada and Australia.
– Focusing on climate adaptation and the growing market for
nature-based solutions and biodiversity in Europe, especially
the United Kingdom, Netherlands, Australia and the U.S.
– Growing our global Sustainability Advisory (over 200 experts)
and Energy Transition (over 360 experts) practices to accelerate
our clients’ ambitions.
– Expanding our technical expertise and asset knowledge to
support clients with strategic front-end advice through our
Advisory, including Digital Advisory, Business Transformation and
Sustainability Advisory, with over 600 experts across the globe.
– Growing our portfolio and capabilities through strategic
acquisitions in water and energy transition. Arcadis acquired a
70% stake in Water Platform Company, parent company for
HydroNET, an intelligent digital platform that provides real time
data to manage water systems through periods of drought, heavy
rainfall and other extreme events. Plus Giftge Consult, a leading
consulting company, strengthening our Energy Transition
position with key German transport infrastructure, hydrogen and
energy transmission system operators.
Resilience financial results (41% of net revenues)
in € millions
Period ended 31 December 2022
2022 Full year 2021 Change
Net revenues 1,239 1,041 19.0%
Organic growth % 10.3%
Operating EBITA 134 113 18.4%
Operating EBITA margin (%) 10.8% 10.9%
Order intake (millions)
1,304
1,087
20.0%
Backlog net revenues (millions) 895 768
16.5%
Backlog organic growth (yoy) 7.6%
1
Underlying growth excluding the impact of currency movements, acquisitions or footprint reductions, such as
the Middle East, winddowns or divestments
Market conditions continue to be strong, especially in North America
and Europe with the energy transition, demand for sustainable
solutions and climate adaptation high on the agenda. Water clients
shift their focus from capital investment to operational efficiencies,
increasing the attractivity of our digital product offering.
Environmental restoration services including PFAS are in high
demand, particularly as the regulatory environment expands to more
sectors.
Various key clients are increasingly looking for strategic sustainability
advisory in combination with engineering solutions, Arcadis
Sustainability Advisory addresses this demand and grew to over 200
FTE since it was founded in 2021. Furthermore, the ageing energy
asset base in Europe and the transition to renewables is generating
opportunities for our teams to demonstrate the full range of
capabilities, from decommissioning to the planning and consent of
new developments.
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Global business areas
We invested in growth areas such as digital water optimization
solutions and energy transition through the acquisitions of
HydroNET, a provider of digital water solutions and Giftge Consulting,
a leading player in the German energy transition market.
Furthermore, Arcadis invested in its nature-based and biodiversity
solutions, expanding its already leading global position in this high
growth market. The operating EBITA margin was strong at 10.8%, in
line with 2021, driven by North America and Europe.
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Case | RESILIENCE
“ Grid modernization and expansion is key in meeting the Netherlands’
future green energy ambitions. But we also need to reduce wastage
and optimize how we use our existing infrastructure to keep up with
current needs.”
Frank Goossensen | Sales Director Resilience
How we are different
We have developed an innovative system using compressed air to
store surplus renewable energy in redundant natural gas plants
and infrastructure.
Impact
Useful, clean energy can be reclaimed when it would otherwise be
wasted, and legacy fossil fuel production sites are finding a new
purpose and becoming a valuable part of the journey to net-zero.
70%
of otherwise wasted renewable energy retained for future use
Redevelopment of natural gas plants and
infrastructure for renewable energy storage
eCATS application, Netherlands
The
Challenge
The
Solution
The
Impact
Natural gas production fields onshore in The Netherlands are in decline
and, over the course of the next decade, will reach the end of their field
life. Instead, more sustainable renewable energy sources like wind and
solar power are fulfilling a growing proportion of the country’s total
energy needs. However, during the day when energy requirements are
often at their highest there can be an imbalance between supply and
demand, causing grid congestion that could result in a loss of supply.
Meanwhile, because the gas fields will soon stop production, their
locations and related infrastructure are becoming redundant. This leaves
us with a question: is there an opportunity to create a more independent
renewable energy system by using the redundant gas infrastructure?
Arcadis has created a Compressed Air Transport and Storage System,
known as eCATS. It uses redundant natural gas infrastructure to store
renewable energy in cases of grid congestion - which occurs when
transmission facilities do not have sufficient capacity to deliver the energy
required - and restore this energy when needed. Compressing surplus
renewable energy into air and storing it in out-of-use natural gas pipelines
not only reduces grid congestion but means that this energy can be
released later via Expanders. This compressed air energy solution has a
wide range of applications. Alongside the main characteristic of eCATS
being to support energy transition and grid stabilization, this solution
can also be used to support district heating or the provision of cold air for
ambient conditioning or cooling. In this way, the degree of utilization can
be increased by up to 95%.
eCATS solves the problem of wasted surplus renewable energy, while
maintaining the value of natural gas infrastructure; benefiting multiple
parties, and solving multiple problems. Useful, clean energy can be
reclaimed when it would otherwise be wasted, and the legacy sites
of fossil fuel production are finding a new purpose and becoming a
valuable part of the journey to reduce our reliance on climate-harming
energy production.
Arcadis and Emmett Green own the eCATS solution and are exploring this
innovative concept with Siemens Energy as the preferred engineer and
supplier of an eCATS-facility in the province of Drenthe. This will have a
60MWh capacity, which would far outstrip The Netherlands’ current
largest of 25MWh. By storing this energy, the country can continue to
increase the proportion of power it uses from renewable sources.
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Global business areas
Places
Our ambition is to create smart, sustainable and safe places for owners, users, communities and
visitors – improving those places in which we live, work, play and learn, and the places that help us
move. We’ll meet this ambition by leveraging our core service expertise and delivering innovative
future-facing solutions and products, designed to consider the whole life of the asset.
Mark Cowlard
Global President Places
Global business areas
Places Solutions
Our Places Global Business Area serves the needs of both public
and private clients, across a multitude of sectors and industries,
supporting those who own, invest in, occupy or use assets. This
includes residential properties, retail and experience centers, offices,
schools, hospitals and justice facilities, as well as industrial assets like
manufacturing facilities, R&D centers, data centers, distribution
depots, and transportation hubs. We offer expertise in design and
engineering, project and program management, technical advisory,
as well as cost and commercial management services, underpinned
by our digital capabilities and global scale.
In addition to our core services, we have far-reaching solutions to help
tackle clients’ most pressing and complex problems. These include:
38
46
16
• Net Zero Facilities & Sustainable Communities: Helping
organizations, asset owners and communities to reach their
net zero goals.
• Industry 4.0 – Facilities of the Future: Unlocking and connecting
the potential of big data, people and skills, sustainability,
services and systems to drive efficiency and support better
and results quicker.
• Future Workplace: Translating how changing work habits,
sustainability objectives and the drive for greater space and
cost efficiencies will affect the needs of your workplace.
• Lifecycle Think: Using data to inform clients how to invest to
achieve the best cost, environmental and social impacts for
the future across the whole asset lifecycle.
• PlaceTech: A suite of digital tools that create and leverage data to
provide greater control and visibility of our buildings and spaces.
Geographical in %
Americas
EMEA
APAC
Net Revenues 2022
Full Year pro forma* in %
* Geographical split including full year of acquired companies
12,232
Total headcount
1,017
2021: 879
Total net revenue
in millions of euros
34%
2021: 34%
Total revenue
as % of total Arcadis
Places
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Market dynamics and client opportunities
• Growth in Industrial Manufacturing as clients look for high-speed
turnaround for project delivery with integrated service offerings.
Increased demand for automotive gigafactories for electric
vehicles, specialist semiconductor manufacturing facilities, life
sciences (pharmaceutical) facilities, and data centres. Government-
backed initiatives such as the CHIPS and Sciences Act in the US
and European Chips Act both signal continued investment in
semiconductor research, development and manufacturing. Meeting
these opportunities in resilient markets has informed Arcadis’ M&A
activity, most notably the acquisition of DPS Group.
• Government and Public Agencies show continued growth, notably
in Healthcare. Initiatives such as the UK’s New Hospitals
Programme, with a commitment to build 40 new hospitals by 2030,
is representative of continued investment to address aging
infrastructure. Investment is echoed in other countries, such as
Australia, where Arcadis is delivering a cost management office
through its digital ‘Cost Clarity’ platform to a major state building
authority. The acquisition of IBI Group – coupled with the expertise
of CRTKL through Arcadis’ Architecture and Urbanism division –
brings new capabilities and scale to support clients in this sector.
• Property and Investment continues to show effects from the
pandemic, with significant changes in how – and how often – people
use residential and corporate real estate. Inflationary pressures,
scarcity of materials and skills in the construction industry (as
illustrated in the Arcadis International Construction Costs report)
continue to impact cost and spending decisions. As investors look
to maximize returns, solutions such as PlaceTech – alongside
Arcadis’ core services such as Cost & Commercial Management and
Project & Program Management – can help inform decision making
and deliver a return on investment.
• Supporting emission-free mobility, we continue to make significant
contributions in the development of gigafactories. A salient
example is our work with a high-end EV manufacturer, developing
their first EV plant by providing design and project assurance. This
brings our GBA model to life with experts coming together in
collaboration from North America, the Netherlands and UK to
provide a seamless experience for the client. This ability and agility,
connecting our people with each other and with clients, wherever
they’re located, is a key strength for us as we move forwards. We’re
seeing growth also in Europe, with our team now fully engaged
with a client in Sweden, and we have recently been successful in
securing an agreement with ACC to deliver a new gigafactory
facility in Kaiserslautern, Germany.
Financial pressures are not the only concern for clients, with
environmental pressures also informing decision making and
investments. The need to better manage embodied and operational
carbon from built assets to meet net zero commitments and ESG
goals has increased demand for sustainability advisory, and design
and engineering solutions. Arcadis’ Net Zero Facilities and
Sustainable Communities solution has been implemented across the
public and private sector to support this trend – through both new
developments and retrofit projects.
Places financial results (34% of net revenues)
in € millions
Period ended 31 December 2022
2022 Full year 2021 Change
Net revenues 1,017 879 15.7%
Organic growth % 4.2%
Operating EBITA 93 74 25.9%
Operating EBITA margin (%) 9.1% 8.4%
Order intake (millions)
1,003
992
1.1%
Backlog net revenues (millions) 1,573 942
67.0 %
Backlog organic growth (yoy) 0.0%
1
Underlying growth excluding the impact of currency movements, acquisitions or footprint reductions, such as
the Middle East, winddowns or divestments
Places has undergone significant strategic repositioning during 2022.
The strategic objective to increase exposure to high growth markets
combined with addressing the strong demand from clients for
integrated offering led to the complementary acquisitions of IBI
Group and DPS Group. Increased focus on core profitable activities
and scalable geographies resulted in the divestment of operations in
mostly Southeast Asia. China was impacted by the property freeze
causing delay in projects, increasing further our selectivity on bids
and new orders. Furthermore, the Architecture & Urbanism Business
Unit was set up into Places, bringing together former IBI Group and
CallisonRTKL architects under the same roof.
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Global business areas
Revenue growth was driven from good demand for sustainable and
intelligent buildings, including the development of datacenters and
gigafactories for electric vehicle battery production. Order intake and
growth from European and US clients, particularly from investments
in industrial manufacturing facilities was strong. This was offset by
delayed investment decisions from several Property & Investment
sector clients in Asia, validating our decision to strategically
reposition the portfolio.
The operating EBITA margin improved to 9.1%, as operating
performance improved year-on-year and as the Places GBA started to
really benefit in Q4 from the geographic repositioning. partly driven
by our decision to exit countries that were performing below Places
GBA level.
The total backlog of the Places increased by 67% year-on-year to
€1,573 million, representing 50% of Arcadis’ total backlog and
inclusive of €308 million backlog from IBI Group and €460 million
backlog from DPS Group. IBI Group and DPS Group showed very
strong order intake over 2022, and the Places organic backlog growth
pro forma of IBI Group and DPS Group grew by 10.9%.
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How we are different
Arcadis utilized global expertise to execute this project
speed-to-market and with sustainability deeply embedded
in the design-build.
Impact
By opening a manufacturing facility in the U.S., Wallbox will be
able to sustainably supply a significant portion of the charging
units needed to support the country’s charging infrastructure.
250,000
EV chargers produced in 2022
The
Challenge
The
Solution
The
Impact
Widespread electric vehicle (EV) adoption in the United States will play a
key role in improving air quality and achieving net zero emissions by 2050.
While EV sales have steadily increased in the past few years, the U.S.
currently lacks the charging infrastructure needed to support the
transition. The country is expected to require 1.7 million EV charging
stations by 2030, though there are just 47,000 available today. Wallbox,
a global electric vehicle charging and energy management provider,
partnered with Arcadis to build its first U.S.-based charger manufacturing
facility in Arlington, Texas to help close this gap.
To meet the needs of the U.S.’s growing EV market, design and
construction for the facility began as quickly as possible, with construction
split into two phases. The Arcadis team worked closely with procurement
experts to plan for equipment and materials with long lead times and with
local authorities to obtain permits without delay. The team utilized Open
Space to make the project more accessible to team members from other
locations, which allowed for quicker decision making, and phase one was
completed ahead of schedule, allowing Wallbox to begin manufacturing
EV charger units earlier than expected. The team also took several
measures to minimize the facility’s carbon footprint where possible,
such as retrofitting an existing facility, using highly recyclable content
and energy efficiency LED lighting, specialized ventilation and filtration
controls for improved indoor air quality, and more.
The completed manufacturing facility is now on track to produce 250,000
charging units by the end of its first few months, with the expectation that
it will create over 500,000 units each year, as well as 250 green jobs in
Arlington, by 2025. Wallbox’s UL chargers are compatible with all electric
vehicles, making them widely available for EV drivers across the U.S.
While the United States’ climate goals can feel abstract, Wallbox is helping
create the charging infrastructure needed to make the electric vehicle
transition a reality.
Case | PLACES
“ EVs will soon be a fixture of everyday life, and creating the
facilities to help accelerate adoption and implementation all
around the world will be crucial when it comes to addressing
concerns around long-term carbon emissions.”
Mark Cowlard | President, Places GBA
Manufacturing the EV charging infrastructure needed
to support the energy transition in the United States
Wallbox, Texas
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Global business areas
Mobility
Climate change, urbanization and digitization trends are requiring today’s mobility projects
and systems to address an evolving set of demands from the world’s growing population.
We design connected, sustainable solutions that integrate existing infrastructure with new
technologies, and optimize the mobility of people and goods.
Greg Steele
Global President Mobility
Global business areas
Mobility Solutions
Our Mobility business area serves the needs of transport owners,
operators and contractors. We offer Design and Engineering, Project
and Program Management, Asset and Mobility Management, Cost
and Commercial Management and Mobility Advisory Services.
In addition to our core services, our mobility solutions help us partner
with our clients to design thriving and connected cities and
communities around the world. These include:
• New Mobility: We partner with our clients across the world to
deliver solutions that help make sustainable, efficient, integrated
and human-centric mobility ecosystems possible.
• Connected Highways: We rethink how infrastructure is built and
future demand is met. Our teams harness digital advances to
create sustainable, data-led and connected highway solutions.
• Intelligent Rail and Transit: Delivering cost-effective, sustainable
and safe mobility and logistics solutions throughout the life cycle
of rail and urban transport assets
• Resilient Ports: Partnering with some of the largest port owner
and operators around the world, our teams provide digitally
enabled, practical solutions in port technology, transport logistics,
energy transition and decarbonization.
• Integrated Airports: We work with the world’s leading airports and
global airport operators to deliver sustainable solutions for
airports, multi-modal hubs, aerotropolis developments, passenger
terminal transformations, and post-pandemic recovery.
60
18 21
Geographical in %
Americas
EMEA
APAC
Net Revenues 2022
Full Year pro forma* in %
* Geographical split including full year of acquired companies
7,582
Total headcount
743
2021: 645
Total net revenue
in millions of euros
25%
2021: 25%
Total revenue
as % of total Arcadis
Mobility
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Global business areas
Market dynamics and client opportunities
Mobility infrastructure remains an essential investment for countries
to help stimulate their economies, progress the sustainability agenda
and drive social equity. This ESG focus has provided growth for
Arcadis, where we’ve seen Governments significantly increase their
investment in public transport, maintenance of infrastructure and
sustainable mobility solutions, such as Electric Vehicles. This has
been most notable in the US, driven by the Biden Administration’s
Infrastructure Law, and Arcadis is working with our US State
Government clients to deliver many large infrastructure projects.
• Asset Management of ageing infrastructure continues to be a
growing agenda for developed countries and design and build
remains a large part of our business.
• Rail, as we’ve seen in previous years is the transport mode of
choice for developed countries, particularly as a solution for clean
and accessible transport.
• For our highways clients around the world, safety and social equity
is a key driver.
• Some Governments struggled to deliver throughout 2022 due to
supply chain issues, as a result they’re looking for new procurement
models to assist with this ongoing challenge.
• The International Maritime Organization (IMO) has made
significant revisions to the GHG strategy for the shipping industry.
With strong expertise in port development, energy transition, and
climate change, Arcadis will be key to supporting the global GHG
ambition for the shipping industry.
• New Mobility is a fast growing and increasingly sought-after
capability as Governments around the world implement vehicle
emissions targets and electric vehicle policies.
Mobility financial results (25% of net revenues)
in € millions
Period ended 31 December 2022
2022 Full year 2021 Change
Net revenues 743 645 15.1%
Organic growth % 12.9%
Operating EBITA 72 65 10.9%
Operating EBITA margin (%) 9.7% 10.1%
Order intake (millions)
751
665
12.9%
Backlog net revenues (millions) 538 493
9.1%
Backlog organic growth (yoy) 5.4%
1
Underlying growth excluding the impact of currency movements, acquisitions or footprint reductions, such as
the Middle East, winddowns or divestments
Market conditions remain strong in the mobility and infrastructure
sector, with ongoing programs and stimulus packages continuing to
drive a solid demand. Decarbonization and climate change remain a
high priority. Committed funding in the US, ageing infrastructure in
Australia and UK investments in rail and road upgrades has led to
significant order intake on large projects.
Integrated Airports expected to fuel a series of opportunities mainly
in North America, but also a number of greenfield opportunities in
Europe.
The operating EBITA margin decrease versus last year was driven by
increased investments in digital solutions and talent attraction and
development.
At the end of the year, the backlog in the Mobility GBA amounted to
€538 million, representing 17% of Arcadis’ total backlog. IBI Group’s
backlog of €41 million was included. We see further rail opportunities
in Canada where we can now take a combined offering to clients,
including station design and program management.
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“ We are so pleased with the results of the Terminal 8 expansion
project. Airports like JFK, which hosts so many global travelers,
will serve as multimodal hubs for urban centers of the future, and
Arcadis is proud to have worked on JFK with this vision in mind.”
How we are different
Arcadis is dedicated to solutions that interconnect the world from
city to city and from airport to downtown, focusing on bringing
airports and other transportation centers into a more optimized
future.
Impact
This world-class airport redevelopment brings economic benefits
to the region and creates ongoing jobs for locals. Once completed
JFK will provide a passenger experience worthy of its location.
62 million
number of passengers accommodated annually
Helping transform the JFK International Airport
into a world-class global transportation hub
John F. Kennedy Terminal 8 expansion
The
Challenge
The
Solution
The
Impact
John F. Kennedy International Airport (JFK) is one of the busiest airports
in the USA. It’s an indispensable part of global travel and the region’s
economy. The airport handles nearly 62 million passengers a year and
supports 280,000 jobs. The completion of the JFK Terminal 8 expansion
marks the beginning of the JFK “Vision Plan” to transform it into a leading
global airport, accommodating dramatic expected growth. The Vision
Plan will be completed through a staged approach and provides a
strategic framework for the Port Authority and its partners to completely
redevelop, modify and expand existing facilities and infrastructure.
During the JFK Terminal 8 project, Arcadis was embedded with the Port
Authority of New York New Jersey’s (PANYNJ) Construction Management
Division, providing program and construction management expertise
across a wide range of disciplines, and project oversight of the
redevelopment and refurbishment work being performed across the
terminal. Operational enhancements included five new widebody gates,
four new widebody parking positions, and an expanded and upgraded
baggage handling system that will support additional transatlantic flights.
The terminal has also been expanded with approximately 130,000 square
feet of additional and refurbished space. The $400 million expansion and
modernization will allow British Airways to move from its long-time home
in Terminal 7 and co-locate with American Airlines in Terminal 8.
The transformed JFK will provide an outstanding world-class passenger
experience in-line with its famous location. The airport will boast
optimized land and airspace use, expanded economic opportunities
for the Borough of Queens and the region, and continued economic
development through job creation, and environmental stewardship of
local wildlife and preservation of recreation.
Case | MOBILITY
Nick Hutchinson | Global Airport Solutions Director
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Global business areas
Intelligence
The Intelligence GBA was created in late 2022 to advance our digital value propositions and signals
a transformational step in the development of new digital services, products, and solutions at
Arcadis. The new GBA combines Arcadis Gen – a unit created in 2020, combining the software and
software as a service (SaaS) businesses of the company – and IBI’s Intelligence business.
Kevin Bebenek
Global President Intelligence
Global business areas
Intelligence solutions
The new GBA, led by Kevin Bebenek, focuses on providing clients,
including Transport for London (TfL), Yorkshire Water in the UK
and Mackinac Bridge Authority in Michigan, US with innovative,
technology-enabled solutions and enhanced SaaS products.
This includes traffic and tolling management systems, enterprise
asset management and asset investment planning, that can then
be deployed across the Arcadis network, allowing for faster adoption
and growth opportunities. In creating the Intelligence GBA, we will
significantly enhance our development capabilities, more than
doubling our number of software developers, and bring proven
products to market faster.
The Intelligence GBA will also act as a growth enabler for the other
GBAs - Resilience, Places and Mobility - and provides meaningful
opportunities for efficiencies and enhanced client delivery. It will
also have the ability to respond to emerging client and market needs
with new products and advisory skills.
80
14
6
Geographical in %
Americas
EMEA
APAC
Net Revenues 2022
Full Year pro forma* in %
* Geographical split including full year of acquired companies
924
Total headcount
21
Total net revenue
in millions of euros
created last quarter 2022
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Market Dynamics and client opportunities
In 2021, society generated 2.5 quintillion bytes of data every day, and the
reliance on technology and data continues to grow exponentially. Our
client’s appetite to innovate and digitalize their solutions to improve the
customer experience shows no signs of slowing. Clients, including TfL and
the City of Toronto, want to respond to operational issues quickly, and
efficiently optimise their assets. Their customers want a meaningful user
experience and real time information at their fingertips, anytime and
anywhere.
Moving to SaaS solutions and products and then promoting and selling
them across Resilience, Places and Mobility GBAs, will allow us to expand
the number of clients we engage with in those markets. In the US alone
there are some 50,000 water companies, we estimate that c.10,000 of
those could benefit from our products and solutions over time.
As market and customer demands for digital solutions, advanced analytics
and SaaS grow, our Intelligence GBA will be a clear differentiator. It will be
the cornerstone of our ability to accelerate growth, expand margins and
increase revenue. With new talent and scalable software solutions,
particularly in water management and mobility, such as tolling, traffic
management and traveller information, we have the ability and expertise
to meet the ever-changing needs of our clients and grow our business.
Intelligence financial results (1% of net revenues)
in € millions
Period ended 31 December 2022
2022
1 quarter
Net revenues 21
Organic growth %
Operating EBITA 2
Operating EBITA margin (%) 9.1%
Order intake (millions)
31
Backlog net revenues (millions) 113
1
Underlying growth excluding the impact of currency movements, acquisitions or footprint reductions, such as
the Middle East, winddowns or divestments
The performance of the Intelligence GBA in the fourth quarter is
slightly dilutive to Arcadis group, reflecting the combined
organisation before cost optimization has been created.
Backlog and order intake were strong with continued good order
intake in tolling solutions and several wins in major cities for our
smart city platform. The Group was also awarded a key contract by a
US transportation client to upgrade their asset management systems.
The total backlog is €113 million as of year-end, representing 4% of
total Arcadis backlog. The strong Q4 order intake at €31 million
reflects the opportunity this newly created GBA provides.
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Case | INTELLIGENCE
“ With the growing need and demand for the modernization of
transportation infrastructure in the US and across the globe,
our toll system offers a turnkey solution to fund construction,
operations and maintenance.”
Kevin Bebenek | President, Intelligence GBA
How we are different
Application of technology to enable the efficient operation of a
critical trade corridor between the United States and Canada.
Impact
Improved traffic flow with fewer delays during international
cross-border travel, along with increased reliability and enhanced
functionality for users.
$6.5 - $7m
projected savings over the next 10 years
Application of technology to modernize
toll infrastructure
International & Blue Water Bridges Toll System, Ontario-Michigan border
The
Challenge
The
Solution
The
Impact
The International and Blue Water bridges connect critical roadways
linking Canada and the United States. Previous toll systems had not been
upgraded for 10 years and, with up to 250,000 crossings every month,
increasing international traffic and ongoing operational and maintenance
needs were starting to have an impact. Residents, businesses travelers,
haulers, and visitors on both sides of the border were often subject to
delays and it was becoming increasingly clear that improvements needed
to be made to help ease traffic flow.
Arcadis IBI Group was contracted by the Michigan Department of
Transportation (MDOT), the International Bridge Administration and
the Federal Bridge Corporation Limited for the modernization of the
existing toll system infrastructure of the two bridges. Working as part
of abi-national project team of US-Canadian stakeholders, Arcadis IBI
acted as lead contractor to deliver its integrated toll system product,
with services including system design, development, installation, testing,
implementation, and project management. Operating on both sides
of the border, Arcadis IBI’s toll system offers an enhanced transaction
management and analytics platform, including trend analysis,
performance monitoring, live monitoring and management of assets,
transaction and revenue reconciliation, and auditing.
Arcadis IBI’s integrated toll system product offers an auditable and
seamless solution for back and front-end operations, and can accommodate
multiple currencies. Automated Radio Frequency Identification (RFID)
tag reading has replaced the old card-based system, with greater
interoperability and standardized web access allowing citizens to create
accounts with multiple bridge agencies. New web portals were designed
for increased reliability and functionality, improving customer experience
by enabling people to manage their accounts more effectively, including
via mobile apps. The toll system is being used successfully on both sides of
the Blue Water Bridge, as well as on the US side of the International Bridge.
Together, the application of this technology at all three locations has
enabled total savings of 36 percent on upfront costs, with projected savings
of $6.5 - $7 million over the next decade.
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Stakeholder dialogue
In 2022, we focused on strengthening our responses to our
prioritized material themes. We engaged with internal and
external stakeholders to maximize our impact. For the first
time we conducted a double materiality assessment in which
we look outward-in, as well as inward-out.
Looking both ways: double impact considered
as a new forward looking input
Stakeholder engagement is a necessary element of a comprehensive strategic approach. Targeted
stakeholder engagement explores perceptions about the materiality of specific environmental,
social and governance (ESG) issues to Arcadis and demonstrates a willingness to incorporate
the viewpoints of external as well as internal stakeholders in Arcadis’ strategic planning.
To embed sustainability in all we do, our nine material themes identified in the comprehensive materiality
assessment in 2020 were an important guide. Arcadis updates its materiality assessment every two years
while keeping in touch with stakeholders continuously to identify trends and market expectations,
acknowledging that materiality is dynamic, rather than static. The continuous interaction includes
programs like ‘Your Voice’ and ‘Grow Perform Succeed’ for our own people and ‘Client Experience’ for
key clients. In addition, we have a dedicated team managing our relationships with shareholders and
investors, who also support our Treasury team in maintaining relations with our lenders. Via specialized
teams, we maintain contact with suppliers, NGOs and with organizations focusing on improving the
sustainable performance of business in general, such as the World Business Council for Sustainable
Development and FIDIC. We monitor developments in European legislation through EFRAG on
the EU sustainability reporting standards, and progress of IFRS Foundation Trustees and revisions
in reporting frameworks such as GRI. In line with new developments from GRI and EFRAG we
performed our first double materiality assessment at the end of 2022 together with our stakeholders.
Sustain & Elevate
1
Employment and Labor Relations
2
Training and Education
3
Human Rights
4
Non-Discrimination
5
Supply Chain Social Impacts
6
Security Practices
7
Diversity and Equal Opportunity
8
Privacy
Prioritize
9
Climate Resilience
10
Sustainable/ Eco-Design and
Services
11
Occupational Health and Safety
12
Local Communities
13
Environmental &
Socio-Economic Compliance
14
Financial Performance
15
Biodiversity/ Health Forests
16
Supply Chain Environmental
Impacts
Control & Improve
17
Waste
18
Political Contributions
19
Freedom of Association &
Collective Bargaining
20
Shareholder Democracy
21
Rights of Indigenous People
22
Anti-corruption
23
Anti-competitive behavior
Maintain & Communicate
24
Water and Effluents
25
Tax Transparency
26
GHG Emissions
27
Energy Consumption
This analysis has led to the selection of a new set of forward-looking material topics for Arcadis as per
the graph below:
-0.4 0.4 0.8 1.20 1.6
Environmental & Social Materiality (Inside-Out)
Financial Materiality (Outside-In)
0
0.5
1
1.5
PrioritizeSustain & Elevate
Control & Improve
Maintain & Communicate
1312
10
3
5
4
1
6
18
17
26
25
21
24
19
16
8
9
14
15
11
20
2322
27
7
2
Stakeholder dialogue
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Stakeholder dialogue
• Topics in the Prioritize quadrant will get additional attention and where appropriate, funding so
we can sufficiently address stakeholder expectations in these areas. Progress will be assessed
in consultation with stakeholders who identified these topics as material to confirm alignment.
• Topics in the Control and Improve quadrant can lead to concerns if unaddressed. We have dedicated
teams already responsible for these areas and the outcome of this analysis provides additional
guidance for their activities, some of which has already been incorporated. Additional incremental
improvements in these areas represent opportunities for Arcadis.
• Topics identified in the other two quadrants will remain part of business-as-usual activities.
Material themes
In this report, we are disclosing on 2022 material topics and list them and the alignment with GRI, and
note that the materiality matrix on page 46 reflects the updated materiality assessment completed in
December 2022 to align with latest GRI standards and CRSD. We aim to update our disclosures on those
material topics in the 2023 report. Based on the materiality assessment, Arcadis has decided to reduce its
number of material themes from nine to four. These four themes are:
Theme Prioritize Sustain & Elevate Control & Improve
Maintain &
Communicate GRI subtopics
Leading through
sustainable
solutions
Climate Resilience;
Sustainable/ Eco-
Design Services;
Financial Performance
n/a n/a n/a General disclosures and
economic performance
Ethics & Integrity Environmental &
Socio-Economic
Compliance
Non-discrimination;
Human Rights;
Employment &
Labor Relations;
Supply Chain Social
Impacts; Security
Practices
Privacy; Rights
of Indigenous
Peoples; Freedom
of Association
& Collective
Bargaining;
Shareholder
Democracy; Political
Contributions;
Anti-corruption;
Anti-competitive
behavior
Tax Transparency Environmental
compliance and socio-
economic compliance
Diversity, Equity,
Inclusiveness,
Belonging
Local communities;
Occupational H&S
Diversity & Equal
Opportunity;
Training & Education
n/a n/a Diversity, equal
opportunity and
non-discrimination
Employment
and training and
development
Occupational health
and safety
Local communities
Energy, Climate &
Biodiversity
Biodiversity/ Healthy
Forests; Supply
Chain Environmental
Impacts
n/a Waste GHG Emissions;
Energy
Consumption;
Water & Effluents
Supplier environmental
assessment and
supplier social
assessment
Strategic stakeholder interactions
For Arcadis stakeholder engagement means participating in conversations with internal and
external stakeholders to deepen our insights into their needs and expectations.
Arcadis’ stakeholders’ views are invaluable because they help us identify global trends, market
expectations and maximize our impact. We seek to engage with them in a variety of methods
including regular surveys on topics such as employee and customer satisfaction.
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Stakeholder dialogue
How we interacted with them Key themes discussed Our Stakeholder Expectations/feedback or themes discussed
Investors
We publish our trading updates
(quarterly, HY and FY figures) and
other press releases
Direct contact with investors and
shareholders (e.g. online meetings and
face to face roadshows and
conferences)
Responding to Rating Agencies
questionnaires
Acquisition of IBI Group and DPS Group
Wage inflation
Growth and margin potential
ESG-performance
Client and climate change related opportunities
Impact public stimulus programs
Diversity & inclusion
Arcadis carbon footprint and our commitments made
Emerging European legislation linked to non-financial reporting
People
Quarterly survey Your Voice to
understand what influences employee
experience and engagement
Virtual global and country Town Hall
meetings to consult our people on
organization’s decisions
5 Affinity groups on Diversity themes
Training and development programs
Resilience webinars
Experience as an Arcadian – Talent engagement,
and personal development, diversity
representation, inclusion and belonging
Business strategy progress and implementation.
What being an Arcadian means, what drives or
prevents people engagement
Health & Safety issues
Wellbeing and approach to Hybrid working
Talent development, performance development,
line management, digital skill building
Open and inspirational environment, sense of ownership and belonging
Actions that demonstrate that the business cares for people’s wellbeing
Contributing to wellbeing to help re-build communities
Specific actions prioritized to become a truly inclusive business
Affinity Groups themes: Access & Neurodiversity, Age Representation, Ethnicity & Heritage, Gender, and PRIDE
NGOs
Online Roundtable
Online meetings
Responding questionnaires
Human rights
Reporting requirements/Sustainability standards
Biodiversity
Engaging with the right suppliers
Progress on our human rights program and human rights due diligence
Updated non- financial disclosures
Clients
Reached out to global key, GBA key and
non-key clients globally through the
annual Global Client Experience Survey
Clients could complete online surveys
and opt in for strategic follow up
telephone interview. We also reached
out to nominated client contacts with
the strategic telephone interviews
Client loyalty and their satisfaction across their
client journey with Arcadis
Client challenges and priorities
Sustainability and ESG themes
Innovation and digitalization themes
We have improved our YoY results (NPS +5 to 30, Satisfaction across journey improved overall). The feedback and
improvements for our clients are centered around 4 key themes. Across all of these themes clients appreciate us being
more proactive and consistent:
1. Expertise & Resource: Clients value Arcadis’ technical expertise and experience, instilling trust & confidence. Arcadis is
seen as having a large & expert global workforce
2. Quality of project & service execution: clients see us as a provider of high quality projects/ services
3. Leveraging sustainable, digital & innovative solutions: Clients want digital tools boosting the quality and efficiency of
projects, and sustainable solutions to meet their targets and add value to projects, society & the environment. Clients
expect proactivity and inspiration here and no provider is seen to be leading the market: an opportunity to differentiate
4. Account management: Our people are our strength, our clients see our teams as committed and reliable, ready to go
the extra mile
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Case | PLACES
How we are different
Arcadis is providing technical expertise for modernizing the entire
building infrastructure required to house the Belgian Defense
Forces’ new fighter jets.
Impact
The new buildings in Kleine-Brogel and Florennes will be some of
the most sustainable military buildings in Belgium.
Largest
geothermal installation in Flanders
The
Challenge
The
Solution
The
Impact
The Belgian Defense Forces are investing heavily in modernization and
expansion. This resulted, among other things, in the purchase of thirty-
four F-35A fighter aircraft to replace the old F-16s. These state-of-the-art
jets will be evenly distributed between two air bases in Florennes and
Kleine-Brogel. However, the current building infrastructure used to house
the aircraft dates from the 1950s and 1960s and is therefore not adapted
to current standards for management, maintenance and security. Nor do
the complexes meet sustainability requirements.
As part of the modernization, a new complex is being built at each air
base. Each will consist of an administrative area including office and
meeting rooms, classrooms, auditoria, changing rooms, and a cafeteria;
a logistics area for maintenance, workshops and warehousing; a high
security building for planning operations and training, and
accommodating four flight simulators; and the 'flightline’ area where the
aircraft are housed. As part of a Design Build and Maintenance contract,
Arcadis is working with a Joint Venture team providing full design and
technical consultancy to ensure the buildings meet international
requirements. Each complex will cover an area of 50,000 square meters,
with maximum use of thermal insulation and renewable energy. Solar
panels and a combination of geothermal and air-water heat pumps will
provide the buildings with energy in a sustainable way.
Innovative new technologies have ensured that the complexes are fully
future-proofed. For example, infra-red technology, which can be controlled
electronically, has been chosen to heat the ovens used during the paint
installation process. These need to meet temperatures as high as 200
degrees Celsius, which had traditionally only been possible through gas
combustion. Reducing reliance on fossil fuels limits harmful emissions,
with similar renewable sources able to absorb up to 20 percent of total
energy consumption in each complex. This will make the new buildings
in Kleine-Brogel and Florennes some of the most sustainable military
buildings in Belgium. The geothermal installation in Kleine-Brogel alone
will be the largest in Flanders.

“ The buildings have to meet a lot of international
requirements. There will be solar panels and a combination
of geothermal and air-water heat pumps to provide energy
in a sustainable way.”
Creating sustainable complexes
for the Belgian Defense Forces
Florennes and Kleine-Brogel Air Bases
Rein Verrelst | Project engineer and sustainability consultant
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Sustainable Development Goals
Arcadis’ specialists provide safe and secure
water technology and innovations to withstand
fast changing demands in a warmer world. We
cover the entire water cycle – from source to
tap and back to nature. Arcadis’ leading
practices in water supply and treatment,
distribution, resource management, and
industrial water & wastewater contribute to
this SDG.
Target 6.1: By 2030, achieve universal and
equitable access to safe and affordable drinking
water for all.
Target 6.3: By 2030, improve water quality by
reducing pollution, eliminating dumping and
minimizing release of hazardous chemicals and
materials, halving the proportion of untreated
wastewater and substantially increasing
recycling and safe reuse globally.
Clean Water and Sanitation
Supporting the Sustainable Development Goals
The United Nations Sustainable Development Goals (SDGs) drive sustainable
development to ensure development meets people’s needs without compromising
the lives of future generations. We contribute to the Goals mostly through project
work on behalf of our clients.
For all the project references spread throughout this Annual Integrated
Report we have indicated which SDGs they touch
Sustainable Development Goals
Out of the 17 SDGs, we focus on those relevant for Arcadis, as
identified by leaders and sustainability specialists in every region we
operate. Arcadians ranked the 169 targets of the seventeen SDGs on
relevance for client work. This yielded ‘focused impact’ SDGs, where
we leverage our skills, expertise, and global scale to contribute to their
achievement through our core business. We also selected three
‘specialized impact’ SDGs, where we contribute through specific
services and solutions.
The new methodology, by only using Oracle, covered less net revenues
than before, but we expect that the net revenue not in scope has
roughly a similar SDG relevance as the net revenue in scope of the new
calculation approach. This led to a >80% net revenue relevant for the
SDGs over 2022. Over 2021 figures we could apply the new approach
as well, resulting in a similar percentage. For 2023 the aim is to have
full net revenue in scope again, including from our recent acquisitions
and from remaining countries not on Oracle. Comparative numbers on
the year to year development and contribution to each SDG are
provided at the end of the chapter.
The Focused Impact SDGs are:
Sustainable Development Goals
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Sustainable Development Goals
With its clients, Arcadis works on eradicating
the causes of climate change. Increasingly we
also assist communities with strategies to
combat its dangerous effects. We share our
experience and leadership to co-create
frameworks and guidance documents that
influence policy makers globally.
Target 13.1: Strengthen resilience and adaptive
capacity to climate-related hazards and natural
disasters in all countries.
Target 13.2: Integrate climate change measures
into national policies, strategies and planning.
Climate Action
In 2030, the global middle class will reach 5.3
billion people, two billion more than today.
Meeting the energy needs of all these people
sustainably is one of the great challenges of our
time. Arcadis experts assist governments and
utilities in updating aging energy infrastructure,
optimizing distribution networks, providing
new sources of renewable energy, and
facilitating the ecosystems that allow society to
operate more efficiently, e.g., the transition to
electric vehicles.
Target 7.2: By 2030, increase substantially the
share of renewable energy in the global energy
mix.
Target 7.3: By 2030, double the global rate of
improvement in energy efficiency.
Affordable and
Clean Energy
The sustainable development of industrial
manufacturing and mobility requires innovative
answers. Arcadis connects communities,
industries, and infrastructure safely, effectively
and in balance with nature. With our industrial
capex & operational efficiency solutions, and
transport & mobility-oriented development
solutions we support this SDG.
Target 9.1: Develop quality, reliable, sustainable
and resilient infrastructure, including regional and
transborder infrastructure, to support economic
development and human well-being, with a focus
on affordable and equitable access for all.
Target 9.4: By 2030, upgrade infrastructure and
retrofit industries to make them sustainable, with
increased resource-use efficiency and greater
adoption of clean and environmentally sound
technologies and industrial processes, with all
countries taking action in accordance with their
respective capabilities.
Industry, Innovation and
Infrastructure
Earth’s rapidly growing population flocks to
urban centers, placing ever-increasing pressure
on resources, space and health & safety. Cities
must respond to these stresses – their livability
and competitiveness depends on it. Arcadis
works with cities to give them a competitive
edge and improving quality of life for their
residents, visitors and businesses by building
programs that expand resiliency, encourage
regeneration, and maximize mobility.
Target 11.6: By 2030, reduce the adverse per
capita environmental impact of cities, including
by paying special attention to air quality and
municipal and other waste management.
Target 11.7: By 2030, provide universal access to
safe, inclusive and accessible, green and public
spaces, in particular for women and children,
older persons and persons with disabilities.
Sustainable Cities and
Communities
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Sustainable Development Goals
2%
13%
25%
21%
16%
7% 7%
9%
>80%
Total
We track our contributions towards these goals by identifying the
portions of our revenue that support sustainable development.
% of net revenues that related to relevant SDGs during 2022, our SDG selection will change in the new strategic period
Healthy people are necessary for stable communities. Our work restoring
land and soil quality by mitigating risks caused by leaked chemical
compounds significantly contribute to this Goal.
Arcadis assists clients with responsible management of assets and with
identifying opportunities to increase the circularity of material and
resource choices.
Land degradation is one of the world’s most pressing environmental
problems, happening at an alarming pace, and it will worsen without
rapid action. While land degradation is largely associated with
unsustainable agriculture and resource extraction practices, past
industrial activity has also rendered natural habitats unusable. Arcadis
assists clients in maximizing opportunities to use nature-based solutions
that results in a biodiversity net gain.
Good Health and Wellbeing
Target 3.9:
By 2030, substantially reduce the
number of deaths and illnesses from hazardous
chemicals and air, water and soil pollution and
contamination.
Responsible Consumption and Production
Target 12.5:
By 2030, substantially reduce waste
generation through prevention, reduction,
recycling and reuse.
Life on Land
Target 15.5:
Take urgent and significant action
to reduce the degradation of natural habitats,
halt the loss of biodiversity and, by 2020, protect
and prevent extinction of threatened species
(unlike other SDGs, most of the targets associated
with SDG 15 have a deadline of 2020. Although
we are past this deadline, Arcadis is committed to
protecting and conserving natural habitats and
biodiversity).
The Specialized Impact SDGs are:
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Connectivity matrix
Connectivity matrix
1
The connectivity matrix looks at connecting 2021-2023 strategic targets to their delivery in the form of key performance indicators for the past year
People and
culture
1
The connectivity matrix looks at connecting 2021-2023 strategic targets to their delivery in the form of key performance indicators for the past year
Focus
and scale
Digital
leadership
Sustainable
solutions
We make careful choices
where to compete, applying
our capabilities and skills
to deliver growth and
margin improvement.
We cultivate a workforce
that is diverse, inclusive,
and empowered to create
a more sustainable world.
Committed to improving quality of
life by accelerating the transition
to net zero
For our clients and in our
operations
Bring digital in the core of
existing business
Target the right
investments through
innovation
Introduce digitally driven
business models through
Arcadis Gen
People first
• Be a best place to work that is based on inclusion, fairness and equality
• Create an environment to grow, perform, and succeed, building on the wealth of expertise
and skills of our people
Living our values
• Foster a balanced culture that is driven by our core values and cultural pillars
• Create business value through sustainable solutions
Attract, develop, and retain the workforce of the future
• Develop our people through clear career paths and recruit capabilities for future needs
• Embrace diversity of capabilities and people to facilitate our success in the future
Advise & deliver sustainable solutions
• Support clients in the transition to net zero
• Forward focus on biodiversity
In our operations
• Reduce carbon emissions and solid and hazardous waste, enhance biodiversity
Standardization then Automation
• Increase efficiency through standardizing then automating core business and professional services
through digital technologies
• Unlock the value of Arcadis data to drive business impact
• Building new capabilities and a value creating Tech function empowering Digital leadership
Digital Solutions
• Create globally scalable digital client solutions, incorporating sustainability
• Expand our position in digital ecosystems
Digital Products
• Leverage technologies for business model innovation and launch new digital products
• Work with start-ups and scale-ups to accelerate digitization pace in our industry
Focus where we can lead
• Build market leadership positions, based on client’s relevance, local strength and global potential
• Leverage our sustainable heritage to expand our differentiation
Client & project excellence
• Bring best of Arcadis to clients everywhere through global teams
• Standardize then automate our existing core services
Competitive delivery models
• Create an Intelligence GBA to strengthen digital delivery across the business
• Increase utilization of Global Excellence Centers
• People & Capacity risk
• Capability & Innovation risk
• Health & Safety risk
• Regulatory & Policy
Compliance risk
• Client & Opportunity risk
• Capability & Innovation risk
• Market risk
• Sustainability risk
• Information security risk
• Client & Opportunity risk
• Capability & Innovation risk
• Market risk
• People & Capacity risk
• Corporate financing risk
• Client & Opportunity risk
• Financial reporting risk
• Liquidity & Working Capital
Management risk
• Project & Contract execution risk
• Third Party Management risk
• Information technology risk
• Information security risk
Strategic messages Strategic pillars Principles Related risks
The strategic context
1
Connectivity matrix
Connectivity matrix
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Mega trends
Urbanization & Mobility
Sustainability & Climate change
Globalization
Digitalization
Stakeholder dialogue
Employees
Clients
Suppliers
Civil society
Investors
SDGs relevant for Arcadis
Competitive landscape
Changing client patterns
Shift to digital
Industry consolidation
Scarcity of qualified people
Connectivity matrix
Material themes Key Performance Indicators (KPIs) Strategic Targets 2021 -2023 Results 2022 Results 2021
Attract, develop, and retain talent
1
Voluntary turnover rate (as % of permanent employees) * Voluntary sta turnover < 10% 14.9% 14.9%
1
Employee engagement (Employee Net Promotor Score) * Employee engagement score improving annually +39 +30
Diversity, equity, inclusion and belonging
7
Women in total workforce (as % of permanent and temporary employees) *
Women in workforce > 40% 38% 38%
Health & Safety
11
Total Recordable Case Frequency (TRCF) per 200,000 work hours *
Zero (no cases) 0.15 0.14
11
Lost Time Case Frequency (LTCF) per 200,000 work hours *
Zero (no cases) 0.05 0.05
Energy & Climate
24
Arcadis carbon footprint for our material Scope 1, 2 and 3 emissions
(MT CO
2
per FTE) *
Reduce emissions aligned with our 1.5°C-aligned science-based target 18.9 16.4
1
Leading through sustainable solutions
10
% of revenues that relate to relevant SDGs * – >80% >80%
Environmental and social compliance
13
Number of identified environmental non-compliances *
– 0 1
Ethics & Integrity
18
18
8
Assessed and, as needed, further investigated AGBP alleged breache
s *
100% 100% 100%
Employees passing Code of Conduct training (as % of total employees)
*
90% 94% 94%
Number of appointed privacy ocers under the privacy policy
*
– 23 14
Standardization then Automation
Arcadis Way implementation progress (as % of net revenues)
– 85% 82%
Risk management framework
Number of internal audits conducted in the year – 19 12
Brand awareness
Brand awareness score Top-five brand awareness in markets we serve (share of voice) 8% 7%
Client experience (CX)
Client experience score Top-quartile performance for client experience 30 25
Organic revenue growth
14
14
14
Organic net revenue growth (in %)
Mid single digit throughout the strategy period 9% 4%
Book-to-bill ratio (net revenues) –
1.03
1.04
Organic revenue growth Global Key Clients (net revenues, in %)
Organic revenue growth for Global Key Clients two times overall growth 13.9% 12%
Direct economic value generated
14
14
Gross revenues (in € millions) 4,029 3,378
Net revenues (in € millions)
3,019 2,565
Direct economic value distributed
14
Net Income from Operations, per share (EPS, in €) – 2.26 1.96
14
Dividend per share (in €)
30 - 40% of Net Income from Operations, no dilution and additional returns when appropiate 0.74 1.30
Profit & loss performance
14
14
Operating EBITA margin (as % of net revenues)
Operating EBITA margin more than 10% of net revenues by 2023 9.8% 9.6%
Net Income from Operations (in € millions) – 202 175
Balance sheet performance
14
14
14
14
Net Working Capital (as % of gross revenues)
Net Working Capital < 15% of gross revenues 10.7% 10.7%
Days Sales Outstanding (DSO)
DSO < 75 days 63 63
Return on Net Working Capital Operating EBITA/ Net Working Capital: 40-50% 54% 64.7%
Net debt to EBITDA ratio (average)
Net debt to EBITDA ratio between approximately 1.0 and 2.0 1.6 0.8
Cash ﬂow performance
14
Free cash ﬂow (in € millions)
– 173 234
People and
culture
Sustainabe
solutiuons
Digital
leadership
Focus and scale
1
Restated figures given increase scope of measurement
For definitions and methods of measure for the indicators included on this spread, please refer to page 286. The indicators that fall within the scope of limited assurance of our external auditor are marked with the
symbol. The limited assurance was given on Arcadis excluding acquisitions.
The KPIs with a * are reflecting Arcadis excluding acquisitions. See page 265 for the Assurance report of the independent auditor, which includes details on scoping and outcomes.
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Case | RESILIENCE AND PLACES
How we are different
Ground remediation, demolition and clearance works to bring a
disused brownfield site back into use, creating a new community
and boosting sustainable urban redevelopment in the city.
Impact
An attractive, future-proof urban neighborhood which – from the
choice of location through to its design and realization - sets new
standards for sustainability, and social and functional diversity.
224
new homes
From hospital site to urban residential area
Olga site, Stuttgart
The
Challenge
The
Solution
The
Impact
Situated in one of the largest historic areas in Germany, the post-war
architecture of the Olga hospital had long looked out of place alongside
the surrounding restored buildings dating back to the end of the 19th
century. When the hospital was incorporated into Stuttgart’s central
hospital, the old buildings could be demolished. For the Stuttgart
authorities, this presented an opportunity to bring the site back to life –
promoting brownfield regeneration and boosting sustainable urban
development in the city. They wanted to create a future-oriented
residential quarter with new homes and facilities for local people. In an
attractive and central location, the development would set new standards
in energy efficiency, sustainability, and social and functional diversity.
Arcadis managed planning, tendering and monitoring processes for
demolition and site clearance. Given the inner-city location - which had
a surface area of 16,000 square meters and 210,000 cubic meters of
buildings up to 40 meters high, all nestled among residential
developments — this was a big challenge. The buildings had to be checked
for hazardous substances and their removal before demolition could
begin. There was also soil contamination to be addressed. During
demolition we conducted extensive emission prevention measures
(including protection against dust and noise). The site was also considered
an unexploded bomb risk, which required extra safety measures. For
structural reasons parts of the old buildings had to be left intact, but
with some of the buildings having up to three levels of basements,
groundwater dewatering was also required throughout.
Through the restoration of the former Olga hospital site, west Stuttgart
has gained an attractive new development location. On four construction
sites, real estate developers and joint building ventures built 224
residential units, 50% of which are publicly subsidized. The kindergarten,
community center, stores, homes and open spaces are now filled with life,
proving that this ambitious approach to urban space recycling has paid off
— not just for those directly involved, but for the entire city.
“ The conversion of a former hospital site into a new
urban quarter is a shining example of successful and
sustainable inner-city development and a great
blueprint for future projects.”
Jana Schulz | City of Stuttgart, Property O ce
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People and culture
35,617 +39
Total workforce headcount
as at 31 December 2022
Employee Net Promoter Score
(scale -100 to +100)
At Arcadis, our People first approach is a key
ingredient in ensuring we have an engaged
workforce that is able to execute the
business strategy. Prioritizing our people
and culture initiatives and investing for
capacity and capability building for both
employees and people managers is allowing
us to maximize impact and live our purpose
of improving the quality of life.
People and culture
People and culturePeople and culture
People and culture
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People and culture
Developing our Culture
Our company values of: People first, Client Success, Integrity, Sustainability and Collaboration, continue to
be the foundation of our culture. These values are supported by five key behaviours (We value each other,
We deliver on our promises, We always bring our best, We dare to shape the future and we work as one
team) along with our cultural pillars Inclusivity, Sustainability, Accountability and Human Centricity.
In 2022 we nurtured our culture by focusing on:
• Employees experiencing a more inclusive culture that supports them as individuals, by listening and
taking action with a dedicated approach to our Global Affinity Groups and measuring our inclusivity
through an Inclusion Index.
• Developing greater accountability by ensuring leaders and managers follow through on their
commitments and action feedback from their team in our regular engagement survey.
• Collaborative and flexible work by ensuring we follow through on our Workstyle promise and give
Arcadians opportunities to share their expertise locally and globally.
• Creating awareness on how sustainability impacts all Arcadians and the work they do, through access
to a global Sustainability module as part our digital learning program.
• Continuing to keep Integrity at the forefront through our integrity training for all Arcadians.
Arcadis will continue to invest in building the global company culture that enables all Arcadians to achieve
their full potential, and deliver on our digital and sustainable solutions for clients.
Arcadis Values and Behaviours
Arcadians as Global Ambassadors
Inclusion
Accountability
Human
centricity
Sustainability
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People and culture
Workstyle Flexibility
In 2021 we launched the Global Workstyle Promise as we recognised that the way we work has changed
over the past years. To support our People first value the Workstyle Promise continues to be implemented
across Arcadis to provide a commitment to Arcadians around flexibility - enabling workstyles that truly
work for individuals and their roles. To help further implement our commitment in this area, a range of
workshops were held at the country level that helped translate our core promises into business unit
guidelines. In 2022, we refreshed several offices to incorporate new Global Design Guidelines that advance
user experience, promote sustainability and encourage workplace inclusion and flexibility. In 2022, 100%
of employees have access to flexible working arrangements.
Employee Listening Approach
Your Voice, our cornerstone employee dialogue program has built great momentum in 2022 and is now
well embedded across the globe. Over 28,000 Arcadians have engaged in our quarterly employee survey,
with an average of 87% participation for the year (not including recent acquisitions).
In 2022 Arcadian feedback through our Your Voice program has influenced multiple areas across the
business to attract new talent, improve retention, build capability and improve the overall employee
experience. The insights generated resulted in some key actions taken in 2022 that include:
• Enhanced communications of our business strategy through a dedicated strategy hub, global business
townhalls and well-defined leadership and manager cascade channel.
• Greater collaboration across the Technology, Workplace, People and Procurement teams to address
system and software access and equipment. This has led to the appointment of a Global End User
Services Director and a new IT Service desk portal.
• Appointment of a Wellbeing and Resilience Manager to activate the strategy in place with regular
wellbeing webinars and an enhanced Employee Assistance Program offering.
• Shape the Arcadis Employee Experience, informing the development and monitoring of the programs
and initiatives to progress towards being a best place to work and an inclusive organizational culture.
We are proud of the proactive approach we are taking and progress over the three years we are making
across our employee experience:
Net promoter scores from Your Voice
(on a scale of -100 to +100)
Your Voice Question Dec 2022 Dec 2021 Dec 2020
I’m satisfied with the amount of flexibility
I have in my work schedule.
+59 +49 +44
I get enough feedback to understand if
I am doing my job well.
+25 +16 +6
I see a path to advance my career at Arcadis.
+13 +1 -6
I see how my work contributes to positive outcomes for
our customers.
+44 +38 +34
At Arcadis we consider sustainability in the way we do
business.
+34 +25 +21
vey: Germany
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“ In 2014, we started the project with nothing.
By the end of 2022, we can count 26 newly
constructed bridges and several more now raised.”
Wim Van Hout | Program manager
How we are different
Overall supervision of the project, with end-to-end support from
conception to the completion of the project.
Impact
Raising the height of the bridges not only boosts inland navigation
capacity and supports economic growth, but also helps to remove
traffic from the roads and reduce harmful carbon emissions.
25%
increase in shipping capacity
Modifying the Albert Canal
Supporting sustainable transport development in Belgium
The
Challenge
The
Solution
The
Impact
As consumer demand for goods increases across Belgium, so too does the
number of journeys that lorries need to make to deliver goods. All of these
trucks add to congestion on roadways and also produce emissions that
are harmful to the environment and people’s health. Transporting these
goods via waterways is a more sustainable alternative to trucks, but the
most important inland waterway in Flanders, the Albert Canal, doesn’t
currently have enough capacity, thanks to the limited height and width
of its bridges. This has been holding back the potential for inland
navigation growth.
To address the problem, Arcadis is supporting Flemish Waterway
(de Vlaamse Waterweg NV) in raising the height of 31 bridges to 9.10 m
above the canal level. This will allow ships to move through the canal
with more shipping containers on board.
Of the 31 bridges along the canal, 15 are being rebuilt under a PPP-DBFM;
a public-private partnership agreement that includes design, construction,
financing and maintenance for 30 years. The other 16 bridges will be put
out to tender on a regular basis. Arcadis is carrying out concept and
stability studies, defining strategy and guiding the client in obtaining the
necessary authorizations. By phasing the work, we are able to reduce any
associated nuisance, for example by creating appropriate detours and
properly organizing traffic during construction.
Raising the bridges over the Albert canal allows ships to transport up to
four levels of containers; an increase in capacity of 25%. This not only
boosts inland navigation capacity and supports economic growth, but
also reduces traffic on the roads. A single 1,200-ton ship can replace as
many as 50 trucks. Over the course of a year, this amounts to more than
two million trucks being removed from the roads, which in turn will have
a significant impact on reducing harmful CO
2
emissions.
Case | MOBILITY
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People and culture
At Arcadis, we continue to strive to be recognised as the best place to work, measured through employee
engagement (KPI – increasing annually), and by acting upon employee feedback. We have also established
a voluntary turnover rate KPI of <10% by 2023 and in 2022, the result was 14.7%. Core programs that are
in place to bridge the gap and improve employee engagement include:
• Employee Listening Program – ‘Your Voice’, we frequently listen and set engagement actions on what
matters most to our employees.
• The performance development framework, ‘Grow Perform Succeed’ (GPS). This provides employees
with regular dialogue with their managers on performance and career development.
• Learning and talent development programs, such as mentoring and digital learning opportunities to
enhance Arcadian's ability to perform in their current roles and prepare for future opportunities.
• Line management development – a dedicated global program to upskill the development for our line
management to ensure our teams are led by capable and inspiring managers.
• A diversity and belonging strategy – with key input from our Global Affinity Groups to ensure we work
on actions that matter most to our underrepresented groups.
Given the changing workplace, understanding the employee experience and expectations is constantly
evolving. Our integrated people analytics platform allows us to combine data and present this to
leadership monthly to help inform data driven decisions around our people proposition. Our monthly
people indicators are also aligned to our company people strategy to ensure there is a regular review on
how we meet our strategic objectives.
Attracting Arcadians
We attracted over 7,000 new Arcadians in 2022. This has been done within a competitive talent market,
hiring for skills to support our digital transformation and increasing the focus on diverse and inclusive
hiring. We increased investment across our core sourcing channels in 2022 to ensure continued growth
of our global LinkedIn recruiter and branding solutions. Through our global partnerships with Indeed
and Glassdoor it opened access to over 200 countries and 300 million candidate visitors per month.
Our business in the UK was again named in the Glassdoor’s Top 50 Best Places to Work.
Our global career site enables candidates – both internally and externally, to find relevant jobs quickly as
well as join our talent community and be notified for relevant roles. We have also been able to implement
a global applicant tracking system - Recruit Cloud. The new system has also resulted in wider visibility of
our roles not only internally but also in the external market where we had over 385,000 candidate
applications.
To ensure we are positioned well to attract a wide range of candidates from under-represented groups we
are incorporating diversity hiring through our talent acquisition approach. Some example programs are:
Early Careers
Attracting and selecting early careers talent has again operated in a hybrid way during 2022 with virtual,
on campus and in office activities supporting the attraction and selection of graduates, interns and
vacation students. In a historically male dominated industry, our focus on attracting women talent into
our early careers opportunities remains critical. We aim to ensure a balance in gender representation
Attracting and engaging a global workforce
The global market for talent in 2022 continued to be competitive and although we saw our engagement
levels increase, with increased demand from our global business areas, attracting, retaining and engaging
Arcadians continued to be a key priority for 2022.
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People and culture
progressing through every stage of the recruitment process. Significant success in these efforts has
resulted in 53% of our new graduates and interns in the United States being women in 2022; in the UK this
was 43% while in Australia we reached 66%.
STEAM (Science, Technology, Engineering, Arts & Mathematics)
In Australia, to develop diverse talent pools, we believe it is vital to foster relationships with mid-education
providers and ignite a passion for STEAM subjects in high-school students. In 2022 we have hosted events
for more than 75 women students in Arcadis Australian offices, with the objective of providing real-world
learning opportunities and guidance on education pathways into our industry and Arcadis.
Our UK team has an ongoing partnership with Career Ready, a social mobility charity focused on
providing opportunities, confidence and skills to young people who potentially face barriers in education
and employment and whose talents often go undiscovered. In 2022, we hosted six paid work experiences,
recruited 25 mentors and hosted a variety of workshops across Arcadis UK offices. In addition, Arcadians
organised a range of local school visits using their charity days to create STEAM awareness in local
communities.
Talent Development: Developing as an Arcadian
Providing all Arcadians with access to quality learning opportunities is critical to enhance their ability to
perform in their current roles, prepare for future opportunities and maximize their impact. To achieve this,
we have extended the ability of our people to access learning through our Learning Management System
– Learn Cloud. Working with the Lovinklaan Foundation, we have developed three new sustainability
modules to help our people connect with our global strategy. As a global organization, we are now able to
offer all our people, wherever they are, the opportunity to become accredited in a variety of project and
program management qualifications – a continuation of our ambition to create a truly equitable
experience for all our people.
Arcadians Grow, Perform and Succeed (GPS)
GPS is our global approach to performance development. It focuses on continuous and meaningful
performance conversations between line manager and their team members. It aims to create a safe
environment focusing on growth and learning, developing a culture of feedback and recognition.
In 2022, we had 75% (2021: 71%) of Arcadians undertake a performance and career discussion with their
line manager. Arcadis employee engagement data over past two years show a continuous increase in
results related to Goal Setting, Growth, Mentoring and Recognition and we see continuously positive
feedback to further embed a feedback culture at Arcadis.
Mentoring for all Arcadians
At Arcadis, we recognize the value of mentoring and through our global mentoring platform Mentor
Connect, which provides equal access to mentoring for all Arcadians across the world, helping them to
make greater connections with leaders across the business and support their development. Arcadians are
embracing different forms of mentoring, being it more traditional mentoring, reverse mentoring or even
reciprocal mentoring, helping to foster inter-generational and inter-cultural and cross-hierarchy
relationships throughout the organization. Engagement with the platform has almost doubled over the
course of 2022 with 2,800 Arcadians now signed up to Mentor Connect (up from 1650 in 2021), resulting
in 1,400 established mentoring relationships (up from 650 in 2021) of which 39% are cross-country
mentoring relationships.
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People and culture
Throughout 2022, the Expedition DNA program has continued to build a critical mass of business
ambassadors for digital, sustainability, and our overall business strategy. Having the workforce understand
and have digital knowledge and skills is central to ensuring our business transformation.
Expedition DNA continues to comprise of two elements: an online, gamified immersive journey to
develop a common language and base level understanding of digital, sustainability, and our business
strategy; and an experiential five-week virtual learning journey known as ‘expeditions’.
Increased engagement
There continues to be an increase in Arcadians both engaging and completing Base Camp. Currently,
21,824 Arcadians are participating in the program, representing 80% of Arcadis’ employees (not
including recent acquisitions). This is a 9% increase in engagement in the program during 2022.
Over the last 12 months, 223 Arcadians have joined and completed a fully virtual expedition.
These selected participants have had the opportunity to deep-dive into six ‘Skill Labs’ focusing on
sustainability, customer experience, data, platforms, ecosystems and business models, and change
management/transformation. On completion of the program, participants are equipped with new digital
and sustainability skills, as well as transformational capabilities that see them eligible to join the
network of organizational ambassadors driving organizational change, engaging clients in new
approaches, and building sustainability into everything we do.
Accessibility improvements
Significant improvements have been made to the accessibility of the program in 2022 to ensure it
engages with even more Arcadians. In collaboration with our platform development partners,
‘Base Camp’ has been redesigned and relaunched with improvements that satisfy the internationally
recognised standards for digital accessibility.
Expedition DNA - developing Arcadians’ digital skills
The Lovinklaan Foundation, and Arcadis, are aligned on ensuring Expedition DNA continues to be the
cornerstone program that enables Arcadians to develop future-focused skills that ensures the realization
of our business strategy.
Participants in Base Camp Program
as a % of total workforce
47
2019 2020 2021 2022
36%
71%
80%
52%
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“ I’m so grateful for the support we’ve received from country leaders.
I’ve spent a lot of time with the Aeta families throughout this project
and have been amazed at their spirit to persevere despite difficult
times. A little help can go a long way.”
Donna Anne Matutina | Associate technical director
How we are different
Social impact movement provides funding to empower Arcadians
to improve quality of life in their neighborhoods though
community projects.
Impact
The provision of clean and accessible drinking water addresses
basic needs and supports better health, sanitation and resources
for livestock, poultry and vegetation.
400 people
now with access to clean, safe and reliable drinking water
Expanding access to safe drinking water
for indigenous Filipinos
Pumps for Life
The
Challenge
The
Solution
The
Impact
When the COVID-19 pandemic hit, governments globally were forced
to impose strict measures to restrict transmission. One such country
affected was the Philippines, with potentially one of the world’s longest
lockdowns. In many provinces, this created a whole new set of socio-
economic challenges for the indigenous Aeta population – most
importantly, inadequate access to a safe, clean and continuous water
supply. On learning of the plight of the Aeta peoples, Arcadian Donna
Anne Matutina worked with colleagues to directly help these
communities, supported by funding through the Arcadis Local Sparks
program. This is a social impact movement funded by Arcadis, the
Lovinklaan Foundation and the KNHM Foundation aimed at empowering
Arcadis employees to improve quality of life in their neighborhoods
though community projects.
The main water source for the Aeta people was the river, but it’s a long
way from where the community resides. As a result, family members spent
hours fetching water. With proper access, this time could be saved and
used on other activities that support local livelihoods or for leisure and
family bonding, improving quality of life for the community. Donna Anne
Matutina got involved in supporting the Aeta community early on during
COVID-19 lockdowns. Initially by providing clothing and other essential
items, as well as ensuring access to education. Then when funding became
available through Arcadis and the Local Sparks program, Donna saw an
opportunity to create a wider, longer-lasting impact.
“Pumps for Life” is the program that Donna created to serve the needs of
a community that has struggled with access to safe, clean drinking water
for too long. Having applied for funding, in little more than three weeks
Donna was able to fast-track and install 23 jetmatic and hand pump
facilities for the Aeta community. These provide reliable, easy access to
water for over 400 people across the region, addressing basic needs and
supporting better health, sanitation and resources for livestock, poultry
and vegetation.
Safe access to clean, chlorine-free water is a basic human right – not just
for a few, but for all. Sustainable Development Goal 6 is about ‘clean
drinking water for all and, through the “Pumps for Life” program, Donna
has been able to ensure that no one in this community is left behind.
Case | CSR
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People and culture
Improving the experience of our managers worldwide through the Line Management
Experience (LMEx)
At Arcadis, we recognize that people managers have a big impact on the transformation of our business
and play a critical role in the performance, engagement, and retention of those they manage. The Line
Management Experience (LMEx) is aimed at supporting our managers to successfully lead with impact.
In 2022, various leadership engagement sessions took place to raise awareness of the critical role of
people managers and to get stakeholders’ support for new interventions to further improve the people
management experience and effectiveness. As a result, a global onboarding journey for newly appointed
managers was launched to bring consistency to the employee experience for newly appointed managers
(hired and promoted) and set them up for success during this important transition. A total of 571 new
people managers - appointed between July and December 2022 - started this journey.
There was continued investment this year in the development of our people managers with many
opportunities to develop their skills in highly interactive, virtual sessions empowering them to lead
their teams with impact. In 2022, 136 sessions as part of the Management Essentials curriculum
were organized for new and emerging people managers, which attracted more than 2,500 attendees.
In addition, 95 sessions as part of the Advanced Management curriculum took place for more
experienced people managers, with over 1,000 attendees. The sessions were well received with
an excellent Net Promoter Score (NPS) of 68 overall.
Outside the LMEx curricula, a total of 5 LMEx Labs were organized to address relevant, business critical
and strategic topics which attracted close to 1,900 Arcadis people managers in total. The topics covered
in the LMEx Labs included:
• “The Future of Work: Standardization and Automation” to raise awareness about how Arcadis is
rethinking how we create value in our business and for our clients through Standardization &
Automation.
• “Cross-Cultural Awareness & Global Collaboration” to support managers in collaborating across
geographical borders and in a culturally diverse environment.
• “Managing Engagement & Retention in your Team” to help managers understand what is motivating
people to stay or leave and the importance of the manager role in engagement and retention.
People Leadership
Arcadis is a people business where it requires strong people leadership. Central to this is the ability
to create strong and psychological safe teams and an environment where everyone can flourish
and bring their whole self to work.
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People and culture
For the third year in a row, there is an improvement in how Arcadis people managers are perceived by
those they manage. Manager specific questions in our internal engagement survey Your Voice show that
Arcadians increasingly feel that their line manager cares about them as a person and their opinions, their
manager communicates openly and honestly with them and supports their performance and
development. The Your Voice scores for these questions are also above the industry benchmark for
professional services.
Net promoter scores from Your Voice
(on a scale of -100 to +100)
Your Voice Question Dec 2022 Dec 2021 Dec 2020
My line manager cares about me as a person.
+56 +47 +38
My line manager communicates openly and honestly
with me.
+54 +47 +40
My line manager cares about my opinions.
+52 +44 +35
My line manager encourages and supports my
performance and development.
+46 +36 +27
I can have well-informed and constructive
conversations with my Line Manager about pay.
+18 +4 -5
Strengthening senior leadership, while also building strong leadership pipelines
and driving progression for future leadership
Ensuring we have strong leadership in place today is key to driving our strategy, sustaining our business,
and engaging our people. Aligned to our Leadership Model, successful leaders at Arcadis possess strong
learning agility, combined with a balanced mix of being curious, driving success and igniting passion.
In 2022 we focused efforts on:
• The Aligned Leadership Program (ALP) was launched in 2021 to develop our senior leaders and help
them to lead and embed the strategy and transformation. In 2022 Impact Circles (small peer-to-peer
sessions) were introduced as part of ALP to create stronger peer connections amongst senior leaders.
A total of 19 Impact Circles of 3 sessions each were organized over the course of 2022, facilitated by
internal facilitators and which attracted close to 110 senior leaders.
• Moreover, 35 senior leaders went through our individual development process, using an assessment to
provide personal insights into their leadership style, preferences, traits, and drivers, followed by
coaching conversations. It gives our leaders an opportunity to reflect on their journey to date, and the
insights that they gain are valuable for development in their current leadership role and further success
in Arcadis.
• For key leadership roles that directly lead our business, talent pools exist with potential candidates. In
2022, we saw an internal successor being nominated as the next CEO and Chair of the Executive Board.
In addition, of the most senior leadership appointments made in 2022, 66% were internal Arcadians or
drawn from our new business acquisitions.
• Emergency replacement plans are in place for the most senior and business-critical roles to mitigate
risk. These are all agreed with the emergency replacements to ensure this person is willing and able to
pursue this when needed and includes ongoing and regular contact moments.
• The launch of the Leadership Discovery journey for leadership potentials, which is a defined program
that facilitates self-reflection and pro-active personal development, connects them with peers and
builds a strong leadership network for the future. This year 28 leadership potentials started their
Leadership Discovery journey, a number that is expected to increase in the years to come.
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People and culture
Our work includes three key focus areas:
1. Human Rights,
2. Wellbeing & Employee Insights and
3. Diversity, Equity, Inclusion and Belonging (DEIB).
Our impact stems across the supply chain, including suppliers, clients and most importantly our people.
We have continued to deliver against our key objectives: dignity, respect & anti-discrimination; diverse
recruitment, retention & progression; diversity awareness & training; and human-centricity and
societal impact.
Dignity, Respect and Anti-Discrimination
Diverse Recruitment,
Development & Retention
Diversity Awareness
& Training
Human
Centricity
& Societal
Impact
Intervention
#3
Advocacy
Adoption
Integration
Respect at Work
By taking a human-centric, inclusive and equitable approach to the design of our
organizational ways of working, processes, spaces, and client solutions, we will foster
equitable social mobility and sustainable societal impact to better meet the needs
of all people in society.
We will create a people first culture of belonging, empathy and respect
fostering a conscious interrupt bias mindset, through learning and
development initiatives; equipping employees and leaders to be global
ambassadors for DEIB.
We will actively leverage talent pools and listen to employees to
attract Arcadians from underrepresented diverse backgrounds/
characteristics; increasing proportion of hires into the business
and retaining diverse talent at all levels by promoting access to
opportunities for all.
We are committed to creating a work environment where
all people are treated with respect, professionalism, and
dignity. This is our foundation with human rights, equity
and anti-discrimination policies, transparent reporting
and mechanisms at the core.
Intervention
#2
Intervention
#1
Golden
Thread
The launch of our strategy ‘Maximizing Impact’ in 2020 marked our intention to future-proof our
commitment to create a culture where the richly diverse experiences of Arcadians would be channeled
strategically and purposefully through all we do. Our approach to human rights, wellbeing and
belonging is fundamental to achieving this impact.
Diversity, Belonging and Human Rights
Creating an inclusive place to work
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Improving quality of life by respecting human rights
We believe that treating people with dignity and respect is foundational to being a responsible business.
Our purpose is to improve quality of life by – fostering an environment that is conducive to respecting
human rights within our business; contributing to solutions that meet the pressing social challenges of
our time (through relationships with our supply chain partners, clients and communities).
We strive to apply the UN Guiding Principles on Business and Human Rights (UNGPs). Our Human Rights
& Labor Policy and associated due diligence process are in place to allow us to understand, avoid and
address harm to people and make a positive impact on society. This includes our own operations and the
entire value chain. We have the ambition to do this by enabling our people to:
• do business with respect for human rights and implementing a human rights due diligence process to
prevent, mitigate, and remediate any negative human rights impacts caused by, contributed to, or
linked to our business, and
• bring their full self to work, promoting a human centred, psychologically healthy and safe environment
underpinned by social justice, diversity, equity, inclusion, and a culture of belonging throughout our
employee lifecycle.
In 2022, we worked with our employees, clients, investors, suppliers and other stakeholders to start
implementing our Human Rights and Labor Policy. This included:
Arcadians
• We focused on training and creating awareness among Arcadians on human rights, what our
responsibility is and how Arcadians can become active ambassadors in implementing our human
rights policy.
• We conducted a human rights impact assessment of our operations in the Philippines. The assessment
included a focus on privacy, discrimination, equal and fair treatment, working hours, access to remedy/
a grievance mechanism. Follow-up recommendations were provided, and with a taskforce team, we have
prioritised and set actions for each of the recommendations. Where applicable, actions apply directly in
the Philippines, surrounding areas and in some cases globally.
Our mission is to improve quality of life by fostering an environment that is conducive to respecting human
rights within our business and in the relationships with supply chain, clients and communities – contributing
to solutions that meet the pressing social challenges of our time.
We do this by enabling people to bring their full self to work, promoting a human centred, psychologically
healthy and safe environment underpinned by social justice, diversity, equity, inclusion and a culture of
belonging throughout our employee lifecycle.
Wellbeing
Equitable
& Inclusive
Culture
Diverse
Workforce
Affinity Groups
& Allies
Belonging
All Arcadians
bring authentic
self to work
Communities
Stakeholders
& vulnerable
groups
Procurement
Responsible
& diverse
Clients
Responsible
& diverse
Our Operations
Respecting
human rights
Sustainable
Business
Social value &
societal Impact
Business
Our operations,
business
relationships &
communities
Arcadians
Treated with
dignity and
respect
Respecting Human Rights
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People and culture
Clients
• Having incorporated human rights criteria in our client go-no-go procedure, we have also developed
guidance for our account managers on how to assess the human rights performance of our clients.
Our new human rights methodology, along with training and support for Arcadians and continued
awareness around these human rights expectations underpins our client approach.
Procurement
• Arcadis’ refreshed Supplier Code of Conduct that reflects alignment with our human rights and labor
policy, is now accompanied by a pre-qualification questionnaire that includes human rights questions to
assess the human rights performance of our suppliers.
Grievance mechanism
• We improved our grievance mechanism by opening our Integrity line to all internal and external
stakeholders, see page 129. A grievance mechanism is a core UNGP requirement, and we have
externally reviewed and assessed our integrity line for consistency against the effectiveness criteria
of the UNGPs. Recommendations are being worked on.
Communication of Rights
Arcadis has continued its employee consultation on relevant matters whereby it respects the rights of
works councils as employee representation bodies and the role of works councils and/or trade unions in
collective bargaining. In particular, we engaged with our European Works Council to discuss and inform
them on transnational matters that significantly affected employees’ interests across Europe. This
consultation occurred across a variety of issues and due to employee representation on the council,
resulted in their feedback contributing to the shape of the overall Arcadis strategic direction.
In addition, Arcadis actively works with various representation and consultation bodies in countries in
which they are present. In 2022, 26% of the workforce is represented by a consultation body (i.e works
council, trade union) and 26% of the Arcadis workforce is covered by a collective labour agreement.
Overall, the local and European consultation bodies are actively engaged, informed and consulted on
the three-year company strategy and connected transformation programs.
2022-2025 TENT Commitment – Refugee Talent Program
Continuing our commitment to TENT in 2022, we pledged to offering employment opportunities to
65 refugees across Europe over the next three years, as part of our commitment to attracting diverse
talent and providing an inclusive working environment. Arcadis offers an internship and/or mentorship
program that provides training, coaching and work experience to support refugees build a new future.
In 2022, during the ‘Second Dutch Business Summit on Refugees’, Arcadis renewed its
commitment to support refugees’ economic integration with (The Tent Partnership for
Refugees) TENT. This commitment builds on our pledge made at the First Dutch Business
Summit on Refugees in 2019. TENT, a non-profit organization mobilizes the global business
community to include refugees.
Dutch Business Summit on Refugees
We have hired a total of 56 program participants in Europe in the three years since we made our
original commitment.
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People and culture
Collaboration
We believe that respect for human rights is fundamental to living in a sustainable society and we are
committed to monitoring and embedding a clear and definable approach to human rights. It is that same
reason we chose to confront systemic challenges that no actor can alone solve, by collaborating with the
World Business Council for Sustainable Development (WBCSD). We have taken an active and frontline
approach in particular, in the Business Commission to Tackle Inequality (BCTI) – where Peter Oosterveer
has taken position as a CEO commissioner in an initiative that seeks to tackle inequality and generate
shared prosperity for all. Our progress is also reflected in the recent assessment of the WBCSD, which
indicated that we are complaint and significantly ambitious on human rights, DEIB and non-discrimination
- proving we are on the right path.
Our mission is to improve quality of life, by promoting an inclusive, diverse, people-centered, accountable,
and sustainable culture and work environment, where everyone can be their authentic selves.
We want every Arcadian to feel that they belong and can succeed in Arcadis, where differences among
Arcadians that make them unique are recognized, valued and celebrated. Our approach is simple, we
believe that by investing in four interventions, we are creating environments that attract, retain, and
develop Arcadians while meeting diverse client needs and expectations.
Recognition of our strategy
We are proud of the impact we’ve made, and the significant industry recognition. In November 2022
both the Financial Times and Forbes ranked Arcadis as Diversity Leaders for 2023.
• Financial Times - Diversity Leaders 2023: based on independent surveys of employees and our
commitment to Diversity, Belonging & Human Rights.
• Forbes - World’s Top Female-Friendly Companies 2023: also independently verified based on
equity such as competitive pay, opportunities for career advancement, flexible working arrangements,
and more.
For the second year in a row, Arcadis has scored a perfect 100 points on the Human Rights Campaign
Foundation’s Corporate Equality Index (CEI). CEI is regarded as the United States foremost benchmarking
survey and report measuring corporate policies and practices related to LGBTQ+ workplace equality.
This year’s index rated 1,271 U.S. based companies. Our score has improved from 95 in 2020.
In 2021 we launched an annual Diversity Representation listening survey, to help us better understand
who Arcadians are and what they need to feel safe and included at work. Our global Diversity
Representation survey offers the optional opportunity for Arcadians to provide anonymous information
about their diverse characteristics and differing perspectives. These valuable insights enable us to better
understand the nuances of what influences experiences at Arcadis to develop and implement the most
impactful programs.
We have established and progressed a number of significant programmes during 2022.
Five CEO sponsored global Affinity Groups
In creating five global affinity groups: Access & Neurodiversity, Age Representation, Ethnicity & Heritage,
Gender, and PRIDE - we have created executive-sponsored forums for employees to represent their needs
and lived experiences. Our intersectional approach embeds areas such as faith and well-being.
Our global affinity groups span several countries and all business areas and represent a wide and diverse
spectrum of people. They are actively curating a renewed workplace culture where we can make
impactful change together. Meaningful results in their first year include:
• Sharing and supporting by creating community safe spaces for Arcadians
• Celebrating and educating by establishing a digital resource hub, inclusive language guide, I Am
Remarkable workshops and schedule of monthly webinars reaching over 20,000 Arcadians
• Advocating for communities by challenging bias in behaviors, processes and existing ways of working,
language used in training materials and in meetings
• Consulting and advising by providing strategic input to leadership on decisions that affect employees,
or spearheading the development of global frameworks such our Social Justice Framework.
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Providing a Voice for our Women of Color (WoC)
Our WoC program, launched in February 2022, aims to understand the intersectional impact that gender
and ethnicity have on the experiences and career progression of Women of Color in Arcadis. We are using
these insights to co-create solutions that will lead to an equitable environment where each Arcadian,
current or future, has access to opportunities to enable them to grow, develop and achieve their full
potential. This is a first for Arcadis. We are following its success by creating forums that help us identify
hidden underrepresented talent – feeding directly into our talent pipelines.
Global Sponsorship Program
Sponsorship is most often cited as a success factor in corporate careers; however, it is not necessarily
something that everyone benefits from or has access to. Our new global sponsorship program is designed
to create the environment for Arcadians from underrepresented groups to access leadership networks
and support to progress their careers. Launched in 2022, it will be fully implemented globally in 2023.
Diversity spotlight – Pay equity
In 2022, we continued with our work towards ensuring equitable pay across our business, including our
transparent reporting on our Gender Pay Gap in line with legal obligations in Australia and the UK. In the
UK our Gender Pay Gap has reduced by 2.2% in year to 19.2% and in Australia our gender pay gap is
24.1% (2021: 24.2%).
We recognize that pay gaps are ultimately affected by representation and are reduced by increased
diversity at all levels across the business, particularly in senior leadership. Our work to increase
representation in this area includes our:
• Global Sponsorship Program for under-represented groups (including women and ethnic minorities).
• Collaboration between the Diversity and the Talent Acquisition teams to remove bias from our
recruitment and progression practices.
• I Am Remarkable global workshops – coaching our people to articulate their value in career discussions
Diversity in Leadership: Supervisory Board, Executive Board and Senior Leaders
It is essential for us to have diverse leaders with a broad range of skills, a variety of backgrounds and
diversity of thought. We set diversity targets for our senior leadership group to reinforce our
understanding that we can only meaningfully support our clients if we ourselves are diverse and reflect
the communities we work in. Our focus is around: gender, nationality/ geographical provenance, and
background (education and/or (work) experience). For our leadership targets in line with the Dutch
Diversity Bill, see the paragraph on specific diversity reporting which is included in the People Metrics
Appendix on page 280 of this Annual Integrated Report.
As a global company we recognize there is underrepresentation of certain minority groups in our
workforce around the world. We believe that a focused commitment to implementing targeted practices
with these groups helps us to create a strong, dynamic company producing the most innovative ideas for
a competitive edge both locally as well as globally. Over the last couple years, our main focus has been on
gender equity at a global level and look to extend this to other under-represented areas.
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People and culture
Cultivating Wellbeing
Fostering purpose and supporting Arcadians to feel physically and psychologically healthy and safe at
work, creates a more resilient workforce and improves our wellbeing. That is why we have taken a data
and insight driven approach in 2022 to amplify our global wellbeing and resilience roadmap. We are
focussed on a preventive approach, amplified in the ongoing promotion of wellbeing initiatives. Our
wellbeing roadmap focuses on primary intervention at an organisational level through the mitigation of
workplace hazards which may have a negative impact on the wellbeing of Arcadians.
Reinforcing our holistic approach across several wellbeing pillars (mental, physical, social, emotional,
financial and workplace wellbeing), we are establishing our Arcadis Five Ways to Health, Safety, and
Wellbeing:
Health
A state of good physical and mental health, energy and resilience is achieved and sustained for all.
Purpose
Improving the quality of workplace wellbeing through engagement, job quality and career
development opportunities.
Security
By prioritizing work design, social factors at work and the working environment we ensure
the health, safety, and wellbeing of all Arcadians.
Relationships
Our global way of working requires the development of trusting, collaborative and
empathic relationships with line managers and colleagues. All Arcadians feel valued,
supported, and connected.
Belonging
Environments where all employees are respected, accepted, and included. Employees
identify with Arcadis values, find meaning in their work and feel empowered to bring their
authentic self to work.
People
First
With a defined Wellbeing Roadmap in place, in 2022, we proactively moved towards improving the
wellbeing of all Arcadians by:
• Globalizing our employee assistance program reaching an additional 1,600 Arcadians and their family
members. We have upgraded our offerings which now include emotional and mental support, Cognitive
Behavioural Therapy, physical support through wellness coaching, practical support including
dependent care, legal and financial advice and manager assistance.
• Hosting Global Wellbeing & Resilience Webinars where over 20,000 Arcadians voluntarily attended
our wellbeing webinars, often featuring guest speakers and additional resources. Engaged colleagues
benefit from supplemented resources to facilitate continued support, discourse and learning amongst
teams and even loved ones.
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“ It has been a rewarding experience to work with a forward-thinking
utility to develop this innovative approach to a sustainable and resilient
water-management solution.”
Chris Waters | Principal Engineer
How we are different
We are leading the conversion of a rock quarry into a water supply
reservoir that will enhance the resilience of the county’s drinking
water system.
Impact
The transformed quarry can store enough water to meet residents’
needs for up to two months, enhancing resilience for the region,
providing system reliability and mitigating supply issues.
1 billion
gallons of water stored
Bolstering drinking water resilience in Loudoun County
Milestone Reservoir, Virginia, US
The
Challenge
The
Solution
The
Impact
Loudoun County has one of the fastest growing populations in the
United States. People living here, and in much of the Washington D.C.
metropolitan area, get their drinking water from the Potomac River.
However, conditions such as drought can jeopardize supply. Conversely,
too much water – such as after heavy rainfall – also leads to complications
by increasing the turbidity of the water, which means it then requires more
effort and more chemicals to make safe for human consumption. Our
client Loudoun Water provides drinking and wastewater services for more
than 80,000 households. We’ve partnered with them on a groundbreaking
project to help safeguard the clean drinking water supply for residents and
enhance the overall water resilience of the region.
We are leading planning and design efforts to convert a retired rock
quarry into a water supply reservoir, including a new 40-million-gallon
per day pumping station to pump water to the local treatment plant.
The system includes a 300-foot-deep pump shaft and, to optimize water
quality, three withdrawal tunnels at varying elevations. A series of vertical
submersible raw water pumps will transfer water from the reservoir for
treatment. Once the quarry reservoir is online, the pumping station will
be used to fill the quarry when there is ample water in the river and
conditions are such that the water is of good quality. During drought
conditions or periods when water quality is suboptimal, raw water can be
pumped from the quarry for treatment, instead of directly from the river.
This innovative water banking approach to managing limited supply is
the first of its kind in the region.
The construction of the reservoir will transform a retired rock quarry into
a new water supply source for the Washington DC Metro region. It will be
large enough to store one billion gallons of water, enough water to meet
residents’ needs for up to two months, enhancing resilience for the region,
providing system reliability and helping to mitigate water supply impacts
during drought periods or as the result of storms or other water supply
emergencies. When these events occur, the treatment plant can use
source water that has already been stored in the quarry reservoir in lieu of
taking it directly from the Potomac River. This approach offers treatment
flexibility and climate resilience for the region’s water supply needs.
Case | RESILIENCE
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People and culture
The Health & Safety Program is the responsibility of a Global team, led by the Global H&S Director, who
directly reports to the Global Operations Projects Services Officer (GOPS) accountable for H&S. The
GOPS Officer reports to the Chief Operating Officer and the Executive Leadership Team (ELT) member
responsible for Project Services. The Executive Board, Senior Leadership, and all Arcadis staff understand,
believe in, demonstrate, and communicate the H&S commitments and engage in continuous
improvement under the auspices of the Global H&S Management System standard, which has been
designed to harmonize H&S processes across the Company. It focuses on proactive hazard recognition,
risk assessment, and risk control to prevent accidents, and allows for the nuances of local culture, client
expectations, and regulations. It includes comprehensive education and training (through internal and
external seminars, amongst others) to provide employees with the knowledge and tools to enable them
to eliminate injuries and illness at work and at home. Best practices and lessons learned from incidents
relating to the workplace and travel are shared via documentation or information systems. In addition,
by teaming up with an external travel safety, security, and health services company, employees have
constant access to information on preventive measures to eliminate or minimize risks.
Effective management (e.g., assessment, mitigation, and prevention) of work-related H&S risks is ensured
through:
• Prioritization and action plans with quantified targets;
• Involvement of leadership and business managers on a regular basis, as well as engagement between
H&S leadership and GBA management on at least a quarterly basis;
• Review of work-related incidents (see step six of the principles as described on the next page);
• Conducting internal inspections and consultations by H&S specialists;
• Independent external verification of health, safety, and wellbeing;
• H&S targets are encouraged to be embedded in performance appraisals;
• Safety culture through behavior-based observations and shared information;
• Celebrating successes through safety competition, recognition, and rewards.
The Global H&S Management System identifies and tracks work-related risks through annual risk
identification and assessment at business level (e.g., tracking incidents). Actual performance is captured in
a consolidation tool and reported monthly. Data is measured using standard definitions and measurement
techniques that typically match those of regulatory bodies that are relevant to Arcadis’ operations and
those of clients. Definitions are explained in the Global H&S Management System standard and the
H&S performance monitoring and reporting guideline. H&S professionals review the data before
submission, including assessing comparisons to other operating companies, historical performance, and
targets and objectives. The aggregate result is presented to the ELT and included in quarterly reporting
to the Executive Board and Supervisory Board.
Performance 2022
Arcadis’ 2022 Total Recordable Case Frequency (TRCF) increased from the prior year (0.15 compared to
0.14 in 2021). Despite this small increase, 2022 represents one of the safest year since Arcadis began
collecting Global H&S data in 2004, when TRCF was 1.13. Overall, Arcadis’ TRCF has decreased by 50%
over the past five years.
Health and Safety
The health, safety, and wellbeing of employees and stakeholders is central to everything we do at
Arcadis. The Health & Safety (H&S) Global Vision and Policy focuses on a culture that strives for zero
incidents using the TRACK process (for an explanation on TRACK, see the box in this section with our
six fundamental Health & Safety principles).
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Comparing 2022 to 2021, the following observations were noted:
• With the impact of the global COVID-19 pandemic decreasing, more Arcadis offices continued to open
and slowly people started returning to their offices. These changing conditions and the switching
between home office and Arcadis’ office complicate operations and distract from H&S resulting in
recordable incidents related to both the home and the Arcadis office environment that have been seen
before the pandemic.
• Arcadis’ core business activities remained substantially the same in 2022 and, as such, the risk of health
and safety incidents occurring did not significantly change. However, 2022 saw an increase in field
hours vs. 2021 as more countries saw a return to full access on site for both field crews and managers.
More time in the field resulted in an increased exposure to higher hazard environments and a small
increase in recordable incidents.
• More recordable incidents have been recorded due to ergonomic complaints and continued strain on
specific types of muscles due to repetitive movement. These have been observed by both field crews,
and people working from home.
• Two recordable incidents have been recorded that were out of Arcadis’ control. On two different
occasions an Arcadis employee was rear-ended while waiting at a red traffic light. Both incidents
resulted in recordable incidents.
Our Lost Time Case Frequency (LTCF) for 2022 (0.05) stayed the same as in 2020 and 2021. Arcadis’ LTCF
has decreased by 61% over the past five years. There were no appreciable differences in the nature or type
of lost-time injuries between 2021 and 2022. There were no work-related fatalities in 2022, nor any over
the preceding five-year period.
Arcadis’ injury rates continue to remain far below the average injury rates of the publicly available US
benchmarks for the architecture and engineering industry, which were 0.50 (TRCF) and 0.20 (LTCF) for
the most recent reporting period (2020).
Near miss reporting, a key process in helping to prevent incidents, continues to increase (74% above
reporting in 2021), which is indicative of a continued improvement in hazard recognition and greater
stewardship for sharing experiences to help prevent future injuries.
Global H&S objectives for 2022 included all Arcadis leaders level 10 and 11 completing at least one H&S
stewardship activity per 6 months, leaders level 12 and higher completing at least 1 H&S stewardship
activity per quarter, and for 90% of all staff performing a documented proactive health and safety action.
These objectives were included to drive greater health & safety engagement by leadership and staff and
to encourage further development of our proactive health and safety culture. Engagement by both
leadership and staff was strong; 90% of leaders were compliant with their H&S Stewardship activities
(a slight increase from 89% in 2021) and 75% of staff performed a documented proactive H&S action in
2021 (a slight decrease from 78% of staff in 2021). An additional objective required all projects that take
place outside of an office environment to have a well-defined H&S Plan (HASP) in place before site
activities begin; due to the change in reporting via Oracle there was a slight backlog in registering HASP
plans into the system, however, auditing shows that HASPs are in place.
We also aligned our People First commitment by focusing on the health and wellbeing of our people
in 2022. ISO 45003, Psychosocial Risk management, was introduced into the revised version of the
Global Health & Safety Management System Standard. The overall purpose of our program is to develop
people-centric solutions that improve quality of life for Arcadians. We endeavor to nurture the physical,
mental, and social wellbeing of Arcadians to create a psychologically safe and heathy workplace where all
can thrive. Improving employee wellbeing & resilience is fundamental to Arcadis to create the following
benefits for our employees:
• Happier, healthier, and more engaged employees;
• which in turn benefits Arcadis and our clients through improved performance, productivity, and
creativity;
• investment in effective health initiatives by directly addressing employees survey feedback;
• being an employer of choice and Great Place to Work, which allows us to attract and retain Arcadians
because of our sustained focus.
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People and culture
Our approach to wellbeing embodies a holistic view by encompassing physical, social, and mental health.
The program itself is harmonized and equitable for all Arcadians, and addresses the following
components:
• Physical wellbeing as it relates to someone’s ability to perform daily activities free of physical
limitations, in addition to having enough energy levels to function optimally.
• Social wellbeing as it relates to social connections, a feeling of purpose and meaning, giving to others
and being grateful.
• Mental or psychological wellbeing to encourage a state of wellbeing in which every individual realizes
their own potential and can cope with the normal stresses of life.
Objectives for 2023 and beyond
Our Global H&S objectives for 2023 have been defined to further raise awareness with all employees
and challenge Arcadis leadership to further increase their stewardship of health and safety. For 2023,
we expect Arcadis management levels 10 and higher to perform at least one H&S stewardship
activity per quarter (four annually). We also expect 100% of all staff to perform a documented proactive
H&S action. We will continue to require that all projects that take place outside of an office environment
have a well-defined H&S Plan in place before site activities begin. These objectives are bolstered by our
continued commitment to the mental health and wellbeing of all Arcadians. To that end, all countries will
be expected to develop implementation plans for the ISO45003 requirements that have been built into
to the updated Global H&S Management System Standard.
The six fundamental Health & Safety principles
1 Demonstrate Health & Safety stewardship daily Make sure that you and every member of your
team goes home safely every day, no matter what your role is in the Company.
2 Use TRACK Apply TRACK every day when planning tasks and before starting any task, and use
TRACK again when conditions change. Our employees use the TRACK process to:
Think through the task
Recognize the hazards
Assess the risks
Control the risks
Keep health & safety first in all things
3 Exercise Stop Work Authority It is your responsibility to stop your own work, the work of other
Arcadis staff, or work under Arcadis control, if you believe it to be unsafe.
4 Practice 'If Not Me, Then Who?' Be accountable for keeping yourself and others around you safe
by acting immediately to prevent harm. If you see something unsafe (or not right), say something!
5 Undertake Health & Safety Planning Prepare and maintain a Health & Safety Plan for all work
activities performed outside of an office environment.
6 Report injuries and incidents immediately Report all incidents, significiant near misses, and unsafe
acts and conditions immediately so that they can be investigated, corrected to prevent reoccurrence,
and the lesson learned shared.
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Case | RESILIENCE AND PLACES
“ With our commitment to ACC in Kaiserslautern,
we are participating in a milestone of the
sustainable mobility transformation in Europe.”
Martijn Karrenbeld | Global Director for Industrial Manufacturing
How we are different
Combining a well- established international client relationship with
longstanding local and regional expertise for a complex, large
scale and disruptive project.
Impact
A sustainable boost for the regional economy and a future-proof
and resilient European mobility infrastructure.
40 GWh capacity
to supply batteries to over 600,000 vehicles per year by 2030
Helping to create facilities for energy cell production
to drive Europe‘s mobility transformation
Battery Gigafactory, Germany
The
Challenge
The
Solution
The
Impact
The production of battery cells for electric vehicles is critical to support
the transition to more sustainable mobility solutions. According to
forecasts, demand from automotive producers in Europe will continue
to increase over the coming years. This calls for more resilience in the
manufacturing market: fragile international supply chains require a
massive increase in regional production capacities across the continent.
ACC Automotive Cells Co. aims to position itself as the market leader with
a network of new XXL production sites. One of these gigafactories is to
be built at the long-established Opel production site in Kaiserslautern,
Germany. It is a complex large-scale project that requires the best
available expertise in terms of preparation, planning, approval, execution
and implementation.
With our unique combination of established local presence and
international expertise, Arcadis is supporting our client ACC in various
lifecycle phases of the project. For the site clearance phase, we have
already provided environmental planning, decontamination,
deconstruction and permit management services. For the new
construction, we are leading the Project Management Office (PMO) and
are responsible for the design and engineering of the entire facility. In
doing so, we combine the successful experience and excellent knowledge
that our UK team has built with major Gigafactories across Europe with
our long-standing knowledge of the regional and national, structural
and legal framework on sites in Germany.
European mobility history will be written in Kaiserslautern from 2025.
In the final stage of expansion, enough state-of-the-art battery cells
will be produced in the new Gigafactory to supply over 600,000 new,
sustainable electric vehicles every year. Thanks to the intelligent
conversion of an area on an existing industrial site, the ecological impact
and the sealing of surfaces will be kept to a minimum. This is a major
project from which everyone will benefit. It is an important driver for
the regional economy and local labor market, and a milestone for the
sustainable mobility revolution, marking a substantial step toward a
more resilient and independent economic system in Europe.
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Sustainability
#1
18.9
Rank in Sustainalytics ESG
performance in our industry
Arcadis’ carbon footprint 2022
MT CO
2
per FTE
At Arcadis, we have a specific sustainability
ambition: improving quality of life by
accelerating the transition to net zero. We can
change the pace and direction of our industry,
through the commitments we make in our own
operations and the end-to-end solutions we
provide our clients, whether that’s developing
comprehensive sustainability strategies, or
turning them into action through practical
solutions we implement on every project.
Sustainability
Sustainability
Sustainable solutions
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Sustainability
2022 has been an important building year for sustainability awareness in our sector: the war in Ukraine
has brought attention to the importance of energy transition, and recent policies, like the Inflation
Reduction Act in the US, are making the business case for this important transition easier. At Arcadis,
we have a specific sustainability ambition: improving quality of life by accelerating the transition to
net zero. This is our crucial decade. It’s time to accelerate to a better world.
Introduction to our pillars
As shown in the prior GBA sections, Arcadis delivers sustainable solutions via its work in four GBAs.
To further deliver on our ambition, strengthen our sustainability strategy and grow our internal
capabilities, Arcadis established a central Global Sustainability team organized into four ‘pillars’ of
focus described below. These four pillars coordinate activities and foster growth across the business
to achieve shared goals as described by each pillar.
• Future Focus. Work in FF is concentrating on building thought leadership, researching trends,
establishing strong industry partnerships, developing delivery approaches within our core services,
and supporting communities of practice around Global Sustainability’s five key themes.
• GBA Partners. GBA Partners activities serve the business as sustainability integrators, helping the
business “embed sustainability in everything we do.” They advise project teams delivering our core
services and help scale leading practice across sectors and geographies.
• Education & Engagement. E&E efforts help Arcadians to understand, apply, and communicate our
sustainability ambition and capabilities to clients and the industry, developing internal capability-
building and external marketing and community programs that engage and empower all Arcadians.
• Impact & Systems. Work in the I&S area focuses on assessing, measuring and reporting Arcadis’
footprint and societal contributions, supporting and maintaining the stakeholder-aligned policies,
tools, targets, partnerships, and risk and opportunity management frameworks.
It’s time. Given our origins and the fact that improving quality of life has been at the heart of what we do,
it is only natural that we would evolve into a company driven by our commitment to maximize our impact
in creating a more sustainable world. Climate change is the biggest challenge we face, and the built
environment is fundamental to this, accounting for about 40% of global emissions, central to mitigating
climate change and to building resilience against climate extremes that are already upon us.
Sustainability Governance
At Arcadis, sustainability is at the heart of all our activities. Sustainability is embedded in our
organizational structure at all levels of the organization. To make sure our strategic direction and
decisions are clear and aligned to the Arcadis strategy, we have several governance bodies that make
these decisions and cascade information across our business.
The Supervisory Board has a separate Sustainability Committee (SusCo) . The SusCo, assists and advises
the Supervisory Board around sustainability. Sustainability is defined as the various Environmental,
Social, and Governance (ESG) topics that demonstrate or measure the Company’s commitment to
improving quality of life. The SusCo prepares the plenary discussion and decision-making by the
Supervisory Board on major items within the Sustainability Committee’s scope of work. The task and
procedures of the committee is outlined in the committee charter, which can be found on our website.
The present composition of the Sustainability Committee is included in the Supervisory Board report of
this Annual Integrated Report.
The Sustainability Program is the responsibility of a Global team led by the Chief Sustainability Officer
who directly reports to the Executive Leadership Team (ELT) member accountable for Sustainability.
The Global Sustainability Team is supported by the SusCo, and by the ELT which reviews progress made
in Arcadis’ sustainability program, drives change management, and provides strategic direction as plans
and objectives are developed.
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Sustainability
Sustainability in Remuneration
Sustainability is further integrated into our business operations through remuneration programs and in
financing structures. For the past several years, one third of the variable long-term incentives (LTI) of the
Executive Board and Executive Leadership Team members has been dependent on a sustainability target
measured by our score on the Sustainalytics ESG (Risk) Rating. In addition, 20% of the variable short-term
remuneration (STI) of the Senior Leadership Group depends also on a Sustainalytics target score.
Sustainalytics is a leading independent global ratings and research firm which provides a robust analytical
framework that addresses a broad range of ESG issues and trends that have a significant and material
impact on industries and companies.
In 2022, Arcadis has not issued any new sustainability-linked (or ESG-linked) loans or credit facilities.
Outstanding throughout 2022 were the ESG-linked EUR 150m Schuldschein (issued in October 2020) and
the ESG-linked EUR 500m Revolving Credit Facility (refinancing done in October 2021). Both are linked to
(improving) the Management risk score of Sustainalytics.
By sharing our progress, we stay accountable to ourselves, our clients, our stakeholders, and the rest of
the world. Arcadis complies with the Non-Financial Reporting Directive (NFRD 2014/95/EU) by disclosing
our business model, and information relating to environmental, social and employee-related matters,
respect for human rights, anti-corruption and bribery matters.
Sustainability Highlights 2022
Q1 Q2 Q3 Q4
Sustainable Cities Index
2022 “Prosperity Beyond
Profit”
Sustainability included in
digital client account plans
Launch of Client
Go-No-Go
Sustainability
Criteria
Enhancements
Arcadis at
COP27 climate
and COP15
biodiversity
conference
Achieved
A- score
in CDP
Achieved platinum level
score in EcoVadis
Launch of
Sustainability
in Standard
Operating
Procedures
for services
Launched
Project
Carbon
initiative
Achieved
industry
leader
score in
Sustainalytics
Embedding Sustainability in
Client Projects –Agreed methodology to build
sustainability roadmaps for each GBA
(to be built Q1 2023)
Ukraine response
and task force
Established global
EMS network
SBTi approval of our near-
term targets aligned with
a 1.5 degree pathway
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About this report
This Annual Integrated Report 2022 has been prepared with reference to the GRI Standards.
Arcadis GRI Content Index and UN Global Compact Communication of Progress (CoP) and associated
COP questionnaire can be found in our non-financial reporting websitenon-financial reporting website. Unless noted otherwise, all
non-financial metrics reported on in this report are global in scope, covering all business units that
Arcadis operates globally, except for the recent acquisitions of IBI Group, and DPS Group.
Arcadis adheres to the Guidelines for Multinational Enterprises as issued by the Organization for
Economic Cooperation and Development (OECD). We report to a variety of rating agencies including
Sustainalytics, MSCI, ISS and EcoVadis. Arcadis EU Taxonomy Disclosure can be found in the Impact &
Systems section of this report on page 81.
Arcadis’ climate-reporting can be found in Arcadis’ Task Force on Climate-related Financial Disclosures
(TCFD) section of this report on pages 268 to 276 and the CDP disclosures in our non- financial
reporting website.
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“ Monitoring vegetation in the Barmah-Millewa Forest has
been an incredible experience. It was amazing to play a small
part in a long-term monitoring project and contribute to a
better understanding of the sensitive wetland ecosystems,
which our team is passionate about.”
Thea Kane | Ecologist
How we are different
Leveraging specialist knowledge, digital leadership,
multidisciplinary collaboration, and stakeholder engagement to
deliver sustainable solutions.
Impact
Gathered crucial data to inform environmental policy and
management for healthier ecosystems and to safeguard this
ecologically, culturally, and economically significant area.
72 sites
benefiting from innovative and data-driven monitoring
Wetland understorey vegetation monitoring
to help protect and restore biodiversity
The Living Murray, Australia
The
Challenge
The
Solution
The
Impact
The Murray River is the backbone of Australia’s largest River Red Gum
forests and major wetlands. These wetlands and forests are home to
35 endangered species and 120 different species of waterbirds.
Unfortunately, extensive human and industrial activities have disrupted
natural flooding patterns, compromising the health of the river and the
surrounding environment. The Living Murray (TLM) program, one of
Australia’s largest river restoration programs, aims to protect and restore
biodiversity in complex wetland systems within the Murray Darling Basin
and deliver cultural outcomes for First Nation peoples.
We collected extensive botanical data across different wetland zones,
monitoring 72 sites in all four seasons over a two-year period. This
included water depth, water quality, threats and their impact on the site.
The project established Arcadis as a digital leader, collecting, processing
and presenting data in a way that had not been done in the 20 years
since the program’s inception. The project integrated specialist knowledge,
digital leadership, and stakeholder engagement with TLM’s requirements.
Undertaking monitoring during COVID-19 lockdown periods
demonstrated the team’s dedication to the work and organizational
ability. The data collected, the information gained, and the
recommendations made have helped decision makers in refining
environmental policy to stimulate healthier ecosystems and safeguard
this significant area from the impacts of climate change.
Tribes of the Yorta Yorta Nation have lived in and around Barmah-Millewa
Forest for up to 30,000 years. The TLM program is helping to restore
balance to the system by delivering cultural priorities, returning water to
the environment, and building water management structures to better
deliver water to the 37,000 hectares of significant forests, wetlands,
and lakes along the Murray River. It is working with tourism, recreation,
forestry and farming industries to improve the river and its floodplains
to sustainably benefit the Australian community for future generations.
Case | RESILIENCE
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Sustainability
In the coming year, we plan to further embed sustainability into our culture and various client project
focused processes and systems. This includes our client and project selection process, client account
planning, project planning and monitoring, standard operating procedures for services to clients,
capturing project knowledge and sharing outcomes and lessons learned.
Helping clients measure impact and decarbonize their projects
The ‘construction ecosystem’ in which we operate (design, material manufacturing, construction, usage,
and demolition of buildings and infrastructure) has improved quality of life and enabled societal and
economic growth across the globe. When considering the global challenges of today, however, how we
have traditionally developed our societies requires drastic revision if beneficial growth is to continue.
Today, the built environment represents a significant share of global final energy use, energy related GHG
emissions, and raw material consumption and is a major contributor to our climate challenges. The
construction of buildings alone is estimated to be directly or indirectly responsible for almost 40 percent
of global CO emissions from fuel combustion and 25 percent of GHG emissions overall.
Transitioning the built environment to a net-zero state that maximizes impact is a priority action for
combatting climate change, and an opportunity for Arcadis to accelerate the transition given our
market involvement.
The ‘Arcadis 5 Sustainability Themes’ (Energy & Carbon, Climate Adaption, Circularity, Nature &
Biodiversity and Societal Impact) serve as the framework through which we align our services and
solutions to turn to the most pressing emerging and future issues for our clients and support them in
accelerating their own sustainability journey. The Future Focus team (formerly Client Solutions) within
Global Sustainability supports Arcadis in articulating the vision for a sustainable future for our business,
and in doing so helps grow our capability to deliver solutions that solve the most pressing emerging and
future issues facing our clients.
• Future Focus provides practical, research-led insights on emerging and future sustainability issues,
which serve as a grounding from which the business can build service/ solutions capability to meet
client needs ahead of the market.
• Using its subject matter expertise and timely insights, Future Focus provides targeted input into
strategic pursuits, to enhance our value propositions and support our clients in delivering on their
own sustainability ambition.
• Future Focus activities provide subject matter input into major business frameworks and processes,
to improve future sustainability governance and activities in line with our sustainability ambition.
This includes, but is not limited to: the Innoverse, the Arcadis Way, the Key and Emerging Clients
Program, Go/No-Go frameworks.
In 2023 the Future Focus team plans to further embed sustainability into our organization, culture and
projects through the following major initiatives:
• Map out the long-term sustainability vision for priority solutions, and support capability enhancement
using these insights.
• Assess project impact across a proportion or all of our 5 Sustainability Themes, in collaboration with
our Impact and Systems team.
Future Focus
Our client businesses are facing multiple global disruptions today, from geopolitical tensions, energy
insecurity, and both physical and transitional risks from climate change impact. These challenges, as
well as having to navigate through a post-pandemic recovery, compel us to look to the future and
best support our client projects by being aware of emerging and future needs.
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Project impact measurement through our ‘Project Carbon’ Initiative
In 2022 Arcadis launched a global initiative ‘Project Carbon’ that aims to embed carbon impact
measurement into Arcadis building and infrastructure projects, to systematically identify and implement
decarbonization opportunities for our client projects. Project Carbon brings together Arcadis experts
from across all GBAs, services and solutions to provide their insights into market and client needs,
innovation opportunities and position Arcadis as a leader in delivering net zero client solutions.
Asset-level decarbonization solutions
Our broad range of expertise around the globe enables us to take integrated, holistic approaches to
decarbonization, from spatial planning to environmental research and green building certifications.
Across our GBAs and solutions, we support clients to decarbonize their assets, programs, and projects.
For example, we design, engineer and advise on net zero and decarbonization for facilities, roads, ports,
buildings, stations, data centers, bridges, tunnels and other assets.
Integrating Arcadis five Sustainability Themes into business operations
We focus on five key themes to embed and standardize sustainability in everything we do. The themes
were developed from the UN Sustainable Development Goals that we prioritize, continuous stakeholder
engagement and alignment to our own global business structure.
In 2022 we have further integrated the five sustainability themes into our business and our way of
working. We developed an ambition level framework to map our clients’ ambition per sustainability theme
in the client opportunities we track and monitor. Pursuit and growth focused Arcadians can view these
insights through dashboards. With associated training and guidance, we aim to equip Arcadians to deliver
sustainable outcomes to clients and better respond and act upon client needs. To reinforce the
conversations around delivering on the client’s ambition, we also enhanced our project handover and
review process for our pursuit leaders and project managers.
Affordable
& Clean
Energy
7
Industry,
Innovation &
Infrastructure
9
Sustainable
Cities &
Communities
11
Climate
Action
13
Good
Health &
Well-
being
3
Responsible
Consumption
& Production
12
Life on
Land
15
Clear
Water &
Sanitation
6
Energy &
Carbon
Arcadis'
Sustainability
Themes
Climate
Adaption
Circularity
Nature &
Biodiversity
Societal
Impact
F
o
c
u
s
e
d
U
N
S
u
st
a
i
n
a
bl
e
D
e
v
e
l
o
p
m
e
n
t
G
o
al
s
S
ec
o
n
d
a
r
y
U
N
S
u
s
t
ai
n
a
bl
e
D
e
ve
l
o
p
m
e
n
t
G
o
al
s
Energy & Carbon
Reduce carbon emissions and
energy use through the
construction and use phases of
projects - reduce, renew, recyle.
Climate Adaption
Recognize that climate is changing
and ensure that our projects are
adaptive to that change.
Circularity
Use recourses efficiently, reduce
waste, recycle, and move towards
biobased and circular materials.
Nature & Biodiversity
Reduce impact our projects
have by incorporating nature and
biodiversity positive elements
into designs.
Societal Impact
Ensure that the stakeholder
impact of our projects is positive
and just, while promoting health
and wellbeing.
Additionally, we have enhanced our Client Go/No-Go process and embedded sustainability in our digital
client account plan platform. Both initiatives support our strategic commitment to work with clients who
are committed to the goals of the Paris Agreement.
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Education and engagement
To deliver on our ambition of improving quality of life by accelerating the transition to net zero,
Arcadis recognizes that success will require every employee to have the knowledge, skills, and
behaviors to proactively deliver through the work we do with our clients, through our partnerships
and through the community activities that Arcadians regularly take part in.
Sustainability education
The many education programs at Arcadis enable entry points for all Arcadians to learn and practice
sustainability. Just a few examples: Since 2020, our Basecamp online digital learning platform has included
the topic of sustainability, covering sustainability basics from sustainability for clients to the impact of
urbanization. Our Expedition DNA advanced live training also has sustainability at the core, and in 2022
over 200 rising leaders were immersed in sustainability and completed a sustainable project through the
program. City Shapers offers early career professionals at Arcadis the opportunity to solve urbanization
challenges, and in 2022 sustainability was at the heart with over 100 early career Arcadians developing
sustainable solutions across 16 cities. And in 2022, Roots of Arcadis - a professional development program
for young Arcadians – engaged over 250 colleagues with guest speakers on sustainability.
Thought leadership
More than half the world’s population live in cities. Accounting for 78% of global energy use and 60% of
carbon emissions (source: UN), cities present some of the world’s toughest sustainability challenges, and
the greatest opportunities for change. In 2015, Arcadis launched the first Sustainable Cities Index (SCI).
This pioneering campaign propelled the issue of urban sustainability onto the mainstream business
and Government agenda, becoming the landmark comparative measure of sustainability in cities across
the world.
Fast forward to 2022, the SCI 2022 is the most successful index to date, with over 800 media mentions,
and falls under the theme of ‘Prosperity Beyond Profit’, demonstrating that sustainability and prosperity
have aligned and are now one and the same. Although prosperity historically meant economic productivity,
tomorrow’s prosperous cities are those that are looking beyond financial performance to the health of
their natural environment and their citizens’ quality of life.
Sustainability Partnerships
Collaboration is key to creating the best and most sustainable solutions. The UN Sustainable
Development Goal number 17 - ‘Partnerships for Goals’ - supports this belief, which we practice at Arcadis
through active involvement in several global, regional, and local partnerships in which we collaborate with
other businesses, governments, NGOs, and societies.
World Business Council for Sustainable Development (WBCSD)
Arcadis continues its membership with the WBCSD, which it has held since 2014. Our Global CEO,
Peter Oosterveer continues to serve as an Executive Committee member until March 2023. The position
is then vacant and will be filled by a new candidate at the next ExCo meeting in June 2023. Our CEO
nominee will be included on the selection list for vacant positions under consideration as part of the June
meeting. Arcadis is one of 220 members, who collectively account for 20% of the world’s Greenhouse Gas
(GHG) emissions. Our membership allows Arcadis to learn, collaborate, and advocate with other global
organizations for progress on the most pressing sustainability issues for our world. Arcadis sits on the
WBCSD Built Environment and Mobility Pathway Boards, and in 2022 developed thought leadership on
Climate Recovery at COP27, EV infrastructure, Healthy People Healthy Business, transition to zero
emissions framework, nature & biodiversity, H2Zero hydrogen and others.
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World Green Building Council (GBC)
Arcadis works with several regional councils within the World Green Building Council network, to foster
collaboration and advocate for a more sustainable built environment. Regional green building council
memberships include:
• U.S. Green Building Council (USGBC)
• U.K. Green Building Council (UKGBC)
• Dutch Green Building Council (DGBC)
• Green Building Council of Australia (GBCA)
International Coalition for Sustainable Infrastructure
In 2019, global engineers came together to identify the biggest barriers to infrastructure climate
adaptation and resilience and to understand how the engineering community could act as a catalyst
for action. It culminated in a signed declaration to move forward through a ‘Coalition for Sustainable
Infrastructure’ (ISCI). In 2022 Arcadis, together with ICSI and the American Society of Civil Engineers
(ASCE), developed an innovation framework for the promotion of resilient and sustainable infrastructure
from around the world. This framework is outlined in a report, Pushing the Boundaries of Innovation in
Sustainable and Resilient Infrastructure.
Institute for Sustainable Infrastructure
Since 2013, Arcadis North America has been a charter member of the Institute for Sustainable
Infrastructure (ISI). Arcadis uses ISI’s Envision rating system to evaluate the social, environmental, and
economic benefits of infrastructure such as water, power, and transportation. Hundreds of North
American employees have completed the ISI Sustainability Professional credentialling. Our partnership
strengthens our commitment to delivering positive business outcomes to our clients while doing the
right things for our planet and for society.
UN Habitat
Since 2010, Arcadis and UN-Habitat have worked together to contribute to one of the most urgent
challenges in the world: sustainable urbanization. UN-Habitat’s mission is to promote socially and
environmentally sustainable towns and cities by improving the quality of life of citizens around the world.
Arcadis supports UN-Habitat in facing these urban challenges through the Shelter Program.
Together, the two organizations have deployed missions providing technical assistance, and organized
and implemented the annual Shelter Academy to train over 80 mayors and other key local officials
from more than 60 cities on climate change mitigation and adaptation measures. In 2022, Arcadis
supported the Urban Thinkers Campus, held during Urban October, and the World Urban Forum, held
in Katowice, Poland.
Community engagement
Arcadis and our people dedicate time, expertise, and money in communities around the world to improve
quality of life. Our volunteer-based activities and projects include: Create Today: providing hands-on
assistance, such as performing riverside clean ups and organizing charity events to raise money or collect
goods for those in need; Create Tomorrow: helping local communities by sharing our knowledge and
experience through consulting, technical advice, financial know-how and access to our extensive network;
and Create the Future: nurturing future talent through educational programs to promote the positive
impact our profession can have on the world.
Local Sparks
Local Sparks is a global community engagement program where Arcadis employees can lead and
volunteer in their own community impact initiatives. Since Local Sparks launched in 2019, Arcadians can
participate in three ways: through the Local Sparks Platform (central hub); the Local Sparks Challenge
(short-term projects); and the Local Sparks Accelerator (long-term projects).
In 2022, Local Sparks supported 18 Challenge projects and 8 Accelerator Projects, engaging 150+
Arcadians from seven different countries. The 2021-2022 round of Accelerator projects completed this
year, with 83 Arcadians involved in impacting tens of thousands of local community members through
projects, ranging from digital services to hands on renovation of community spaces and improving
communities with sustainable practices. Local Sparks continued to support projects from the COVID-19
Recovery Program. Three Local Sparks workshops hosted over 300 Arcadians to promote program
opportunities, with one workshop held in collaboration with the Help Ukraine Task Force and another
with the KNHM Foundation.
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Shelter
Working in partnership with UN-Habitat, the Arcadis Shelter program is addressing one of the world’s
most urgent sustainability challenges: urbanization. Since 2010, Arcadians have supported 129 UN-
Habitat projects in more than 30 countries, improving living conditions for some of the world’s most
vulnerable people. In 2022, 52 Arcadians provided pro-bono expertise to implement primarily virtual
missions, but we were also able to perform the first in-country mission in almost three years. Eleven
workshops were held to introduce more than 1,200 Arcadians to the Shelter Program and to share lessons
learned during missions.
Ukraine Task Force
At Arcadis, treating all people with dignity and respect is aligned with our company’s core values.
This means we strive to act and support others suffering hardship or human rights abuse, ultimately
helping to contribute to a more sustainable, inclusive, and equitable world.
In response to the war in Ukraine, we established a task force and donated over €1 million to UNICEF,
Polish Humanitarian Action (PAH) and the Red Cross to raise much needed funds to provide food, water
and psychological support to the most vulnerable groups. This included elderly people, women, and
children, who have been displaced or are pinned down in bomb shelters across Ukraine. These
organizations also provide first aid and medical kits, personal protection gear and other emergency
humanitarian supplies to these shelters, as well as to hospitals in the combat zones.
We have seen overwhelming response from Arcadians in Poland, Romania and across the world who are
showing support to displaced children and families, whether opening their homes or delivering supplies
to the border, supporting through financial donations or helping to find skilled jobs in our business for
those whose livelihoods have been violently uprooted by this tragedy. Together, we have expanded our
refugee hiring and our global Community Engagement programs to support these efforts and the people
of Ukraine.
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Global Sustainability Business Partnering
To support the business in effectively translating the Arcadis Global Sustainability Strategy into business-specific
insights, breakthrough targets, and actions plans, the Global Sustainability Business Partners’ activities help
teams acquire the sustainability knowledge and behaviors necessary to make them effective change agents
within the industry. Working with key stakeholders in the Growth and Operations teams, the focus is to embed
sustainability into all client activities – client engagement, bids and projects.
During 2022, and through engagement across the business, the GS BP team have identified immediate
needs to support client facing and service delivery teams. Collateral has been developed to address these
immediate needs including a number of ‘How-to Guides’. For example, ‘How to Start a Sustainability Client
Conversation’ and ‘How to Integrate Sustainability into a Bid’.
A key ambition for 2022 was to better define what sustainability means to people in Arcadis, where the
capability sits, and to identify points of contact. The Growth team had identified a specific need to know
who to go to for specific sustainability topics. The GS BP team have built a map of the Arcadis
Sustainability Ecosystem which includes key points of contact for different sustainability themes.
The GS BP team have working closely with the Global Service Directors during 2022 to establish key
sustainability themes and priorities for each service area. This has included development and facilitation
of leadership workshops and trainings for groups from Core Service areas and the development of a
sustainability capability pilot for Project Managers working with clients in the Financial Services sector.
During Q4 2022, the GS BP team worked with the GBAs on an engagement approach for 2023, which will
improve embedding sustainability in client projects and help GBAs prioritize activities. Sustainability
Roadmaps for each GBA were developed during Q4 2022 to support engagement.
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Case | PLACES
“ WELL is an exciting development for our industry, putting the
emphasis not just on how we create sustainable places that benefit
the planet, but also benefit those people who use them.”
Martijn Goossens | WELL accredited professional & design engineer
How we are different
Using the WELL Building Standard to design a place that promotes
high levels of health and wellbeing, creating optimal conditions for
students and academics.
Impact
The first WELL certified university building in Europe, aligned to
the university’s own sustainability aspirations and academic
research.
1,000 students + 20 staff
benefiting from the new facilities
The
Challenge
The
Solution
The
Impact
Maastricht University is a popular destination for students and scientists
looking to progress their academic careers. It has been growing for many
years and now has more than 21,000 students and almost 5,000 staff. But
to meet future demand the university needed to expand. Acquiring the
Tapijnkazerne – a neighboring former army barracks – meant there was
scope to provide much needed capacity for an additional 1,000 students
and 20 staff, but the site’s aged design and accommodation were not
consistent with the university’s strategy for sustainability, or their
aspirations for the student and staff experience. Furthermore, there
was an appetite from the university to push the boundaries and create
an exemplar that encapsulated the teaching and research prowess of
the faculty.
Our WELL-accredited professionals partnered with the design team and
contractors to support the implementation and validation of WELL Building
measures. Given the Tapijnkazerne’s listed status, we had to be sympathetic
to the original design. For example, modifications were made to improve
(rather than replace) the original ventilation. This saw 'intelligent' controls
installed to continuously measure air quality, adjusting to enhance and filter
air according to the number of people. Light was also a consideration, with
calculations and daylight simulations prior to construction to optimize
design and ensure compliance with the highest European standards. Heating,
ventilation, and air conditioning were designed to focus on ‘thermal comfort’,
while sound-limiting interventions were made to aid concentration and
focus, including sound-insulation to listed windows, and sound mapping to
create acoustic barriers between zones.
Maastricht University has become the first university in Europe to meet
the WELL Building Standard. It is this focus on human sustainability,
performance and productivity that most closely resonates with the
Faculty’s own research agenda, supporting their existing staff and
students to be happier, more engaged, more productive and healthier,
and hopefully encouraging others to join the university in the future.
Furthermore, Maastricht University will use the knowledge it acquired
during the WELL Building process within future real estate activities, and
it is hoped that the building will serve as a living lab for Health research.
Creating the healthiest university
building in Europe
Maastricht University, Netherlands
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Impact and systems
Impact and Systems supports embedding ESG considerations into our operations and value
chain, assesses our own impact, reports on sustainability-related performance and sets global
policies related to sustainability. In line with our ambition to improve quality of life to accelerate
the transition to net zero, we are committed to operating our company in a way that reduces
greenhouse gas and waste emissions in our operations while enhancing biodiversity.
Net Zero Commitment
In September 2021, Arcadis announced a commitment to accelerate reductions to achieve net zero faster
within the company’s global operations (Scopes 1-3). This step is part of the ambition the company set
out in its three-year strategy to build on Arcadis’ pioneering heritage and maximize its impact by
reinforcing sustainability at the heart of client solutions, business operations, and the communities of
today, tomorrow and the future.
Arcadis supports the aims of the Paris Agreement and Glasgow accords and has committed to reduce
Scope 1 and 2 GHG emissions 74% per full time employee by 2035 from a 2019 base year. Arcadis also
commits to reduce Scope 3 GHG emissions 74% per full time employee by 2035 from a 2019 base,
focusing on business travel, fuel & energy related activities, commuting and working from home.
Additionally, Arcadis committed to increase annual sourcing of renewable electricity from 6.8% in 2019
to 100% in 2022 and achieved that target. In addition, Arcadis sourced renewable electricity certificates
for the first time covering the electricity consumption of its company-owned/ leased vehicles, employee’s
private vehicle consumption for business travel and commuting purposes, and for the estimated
electricity consumption for work from home situations for its employees.
In addition, as an interim step to net zero, we invest in high quality Gold Standard and VCS certified
offsets for our Scope 1 and 2 emissions and key Scope 3 emissions that protect and restore ecosystems
in Cambodia and improve quality of life and abate emissions by providing cookstoves in India to help
mitigate climate change.
To do this, we have established a science-based target for our global operations (Scopes 1-3 emissions)
with a near-term target aligned with a 1.5°C pathway and a commitment to net zero, approved in
February by the Science Based Target initiative (SBTi), a partnership of four leading NGOs that collectively
validate organizational greenhouse gas reduction targets. Since then, Arcadis has grown through
acquisitions and has updated its scope 3 inventory, triggering the need to apply to SBTi for approval
again in 2023. In addition to the preparedness this will bring our organization regarding adapting to
and mitigating the effects of climate change, we are confident that the development of our own net zero
transition plan will also help to maintain and improve our top-quartile performance as ranked by our
core rating agencies and contribute to key insights we will share with our clients.
Furthermore, we have begun evaluating our own biodiversity footprint and establishing targets related to
our operations’ impact on biodiversity. Arcadis has joined the Science Based Targets Network Corporate
Engagement Program, a group of companies, consultants, industry coalitions and financial institutions
helping the Science Based Targets Network to develop science-based targets for nature.
At Arcadis we quantify and track our Energy, Climate & Biodiversity KPI by calculating our carbon
footprint for our Scope 1, 2 and 3 emissions (MT CO2 per FTE). The target for this KPI aligns with the SBTi
1.5°C pathway. Our 2022 estimated carbon footprint is presented in the Emissions and Environmental
Management section of this report. The efforts in place to reduce our emissions are described in the
section Net Zero Commitment.
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The Keo Seima Wildlife Sanctuary (KSWS) helps restore and protect the home of over 950 wild species,
including 75 globally threatened species. The project is vital in the preservation of the region’s vulnerable
wildlife, and the sustainable development of its local communities through securing of legal title to their
traditional lands. Working with the Fair Climate Fund, Arcadis has been investing in 136,700 of the forest’s
carbon credits in the past three years (2020-2022), saving approximately 110.5 hectares of protected
forest land – an important step in our journey to mitigate climate change. The contribution will also
positively impact Keo Seima’s indigenous people through support in the land titling process, as well as
sustainable management of the forest, protecting it and its wildlife against the imminent threats of
deforestation and forest degradation.
Annually our Dutch operations invests in cookstoves, helping families in the India countryside. The project
saves energy and supports local employment since the ovens are fabricated and serviced locally. Since
this project is closely related to the carbon footprint of Arcadis, the 2022 investment in cookstoves will be
determined once the final footprint is published. Please visit our website for updates.
Emissions and Environmental Management
Since 2010, we have consistently reported on our global emissions and energy consumption, based on
the Greenhouse Gas (GHG) Protocol. This initiative is implemented and monitored via our Global
Environmental Management System Standard (EMSS). By using this standard, each entity has flexibility
regarding how to approach their roadmap to achieve their net zero targets and reduce environmental
impact, but all entities consistently report progress using the Global Standard as a minimum requirement.
In the Global Standard, Arcadis requires entities to report on metrics that were determined “material” to
our organization’s environmental impact. For more information refer to the Stakeholder Dialogue section
in this report. Metrics are compiled globally and summarized herein; additional details are published
publicly via the Carbon Disclosure Project (CDP). Carbon footprint data are reported locally to
sustainability professionals, who review the data. This review includes a comparison to other entities
and historical performance. Before data is released in our Annual Integrated Report (AIR) it is third party
verified. Currently, 68% of Arcadis entities run a certified ISO 14001 Environmental Management System
(EMS); although each entity is required to run an EMS, the system does not have to be certified.
Since the release of our annual report occurs before full year energy consumption data is available, the
energy consumption and carbon footprint presented in the following tables are estimations based on
measured data from January to November 2022. The most up to date releases regarding information
regarding energy consumption and carbon footprint will always be posted on our website.
The scope 1 and 2, and select scope 3 emissions for 2022 will be offset as soon as we will have finalized
our full year reporting cycle.
Arcadis global 2022 carbon footprint in MT CO
2
eq (MT = metric tons)
(absolute values are rounded to 10)
2022 2021 2020 2019
Scope 1 10,650 7,670 8,950 10,480
Scope 2 (location-based) 7,810 8,340 18,130 21,960
Scope 2 (market-based) 220 1,320 16,960 20,480
Scope 3 (all categories) 503,240 449,490 469,370 504,520
Scope 3.1: Purchased goods & services 458,200 414,500 424,250 434,000
Scope 3.2: Capital goods 5,400 1,170 4,540 7,90 0
Scope 3.3: Fuel-and-energy-related activities (not included in Scope 1 or 2) 3,250 2,580 2,740 5,640
Scope 3.5: Waste generated in operations 1,050 200 200 200
Scope 3.6: Business travel 21,410 12,610 12,510 42,820
Scope 3.7: Employee commuting (incl. working from home) 14,930 18,420 25,140 13,970
Total Absolute Footprint (all scopes, market-based) 515,110 458,480 495,270 535,480
Per FTE
Scope 1 + 2 (market-based) / FTE 0.40 0.32 0.97 1.17
Scope 1 / FTE 0.39 0.27 0.33 0.40
Scope 2 (market-based) / FTE 0.01 0.05 0.63 0.77
Scope 3 / FTE 18.5 16.0 17.6 19.1
Total relative Arcadis Footprint (all scopes. market-based) 18.9 16.4 18.5 20.3
The 2022 estimates for Scope 2 are shown as location- and market-based emissions. For the market-based
emissions, the renewable electricity we purchase via appropriate certificates (e.g., GOs and i-RECs) is taken
into account.
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The following figure depicts our reported emissions from our baseline year (2019) compared to our last
three years of emissions. Please note that the COVID-19 pandemic has greatly reduced our emissions in
2020-2022.
Arcadis Global Carbon footprint
MT C0
2
-eq
2019
* Remaining emissions which will be oset by carbon removals
2020 2021 2022
Scope 1
Scope 2
(location-based)
Scope 2
(market-based)
Scope 3
600,000
500,000
400,000
300,000
200,000
100,000
0
In February 2022, our science-based target was approved by SBTi. Since that time, Arcadis acquired
several companies (including IBI and DPS). Furthermore, in 2022 we conducted a detailed review of both
the relevance of all scope 3 categories to our business and our methodologies for calculating relevant
categories. As a result of this review, we have expanded our inventory to include additional scope 3
categories to align with leading practice. Due to these changes, we plan to resubmit our GHG reduction
target to SBTi for approval and have started this process with SBTi.
The companies Arcadis acquired in late 2022 are out of scope for all emission calculations presented here.
Excluding these acquisitions, we have calculated and are reporting the results for the GHG emissions
related to scope 3, categories 1, 2 and 5 for the first time. For the preliminary GHG emissions shown here,
we have calculated these additional scope 3 categories (1, 2, 3, 5 and 7) for the years 2021 and 2019.
For2020, we are using the arithmetic average of 2019 and 2021, for 2022 we use actual figures. We will
publish our final 2022 GHG emissions in Q2 2023 with updated values for both historic as well as 2022
final figures.
To reduce our electricity-related emissions, we have purchased green electricity via certificates ((i)
RECs & GOs) for all offices which do not yet have direct green electricity contracts to cover 100% of our
office electricity consumption. For the first time, we have additionally purchased certificates covering the
electricity consumption of our electric company-owned/ leased vehicles, electric private vehicles used for
business travel, as well as for the electricity for working from home (workstations + lighting) and for
employee commuting with electric vehicles.
Arcadis Global Carbon footprint FTE
MT C0
2
-eq
0
25,000
50,000
75,000
100,000
2019
* Remaining emissions which will be oset by carbon removals
2020 2021 2022
Scope 1/ FTE
Scope 2/ FTE
(market-based)
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For scope 3 category 3 - Fuel-and-energy-related activities (not included in Scope 1 or 2), consumption is
captured in our NFR platform by each country and calculated according to the mapped emission factors
(from Defra and IEA, see separate section in glossary).
For scope 3 category 6 - Business travel, data is collected by an external provider, Thrust Carbon, directly
from our travel agencies, and in cases where travel is not booked via these providers either data is
completed using local reporting tools or via estimates. Business travel includes emissions from private
vehicles, air travel, public transportation, rental/ hired vehicles, and taxis.
For scope 3 category 7 - Employee commuting incl. working from home (WFH), data was collected via a
global employee survey (overall response rate of 31% that was scaled based on headcount). Then,
emissions were calculated outside our NFR platform using the same Defra emission factors for employee
commuting by transportation type and fuel type. For WFH emissions, we calculated the average WFH
days per country from our survey data and applied the country-specific emission factors by Ecometrica.
Ecometrica provides factors for emissions per homeworker-day from their global homeworker model
(https://ecometrica.com/knowledge-bank/insights/the-ecometrica-homeworker-methodology).
For our scope 1 and 2, consumption is captured in our NFR platform by each country and calculated
according to the mapped emission factors from Defra v11 (09/2022) and IEA v5 (12/2022), see separate
section in glossary.
Our US electricity-related emissions had been calculated using prior Defra factors which still represented
the US grid mix of the year 2015. This has been updated for our 2021 and 2022 scope 2 values with the
newest available factors from IEA v5 (12/2022) which represent the US grid mix of the year 2020. This
update affected only our scope 2 (location-based) figures, which are now 21% lower (for 2022) and 26%
lower (for 2021).
Arcadis Global Carbon footprint Scope 3
MT C0
2
-eq
2019
* Remaining emissions which will be oset by carbon removals
2020 2021 2022
Scope 3.1:
Purchased goods
& services
Scope 3.2:
Capital goods
Scope 3.3:
Fuel-and-energy-related activities
(not included in Scope 1 or 2)
Scope 3.5:
Waste generated in operations
Scope 3.6:
Business travel
Scope 3.7:
Employee commuting
(incl. working from home)
400,000
425,000
450,000
475,000
500,000
Since 2017, Arcadis has participated in KLM’s Corporate Biofuel program. Through this program, Arcadis
pays a surcharge to the airline that covers the cost difference between sustainable biofuel and traditional
kerosene. A large-scale shift to sustainable biofuel has the potential to decrease carbon emissions from
the airline industry by up to 80%. Participating in this program helps us demonstrate demand for more
sustainable business travel options.
Detailed methodology
Addition to our indirect emissions (scope 3): For the first time we are reporting emissions for scope 3
category 1 (Purchased goods and services), category 2 (Capital goods) and category 5 (Waste generated
in operations). We have used a spend-based methodology and EEIO factors to calculate these emissions
and the spend data was provided by our Finance function.
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Valid for scope 1, 2 and 3
Arcadis divested a few countries’ operations, and where no data could be retrieved because of the
divestment, missing data was completed with the average of the previous months of 2022 if available or
else with the arithmetic average of the whole year 2021.
For our global KPIs, absolute emissions have been divided by the FTEs to calculate the intensity figures
(GHG emissions per FTE).
Pledge to Race to Zero
To further reiterate our commitment to becoming a Net Zero company, Arcadis continues to participate
in the Pledge to Net Zero. Through this commitment, we joined the Race to Zero, a UN backed global
campaign aimed to rally leadership and support from businesses, cities, regions, investors to take action
to shift to a decarbonized economy that prevents future threats, creates jobs, and unlocks inclusive,
sustainable growth.
Ratings and Recognition
In line with our Global Sustainability Policy, Arcadis measures, monitors, and communicates its
sustainability performance in a manner that is transparent and responsive to the needs of stakeholders.
Progress is reflected in several Environmental, Social and Governance (ESG) performance benchmarks
and assessments, including Sustainalytics, CDP, MSCI, ISS and EcoVadis. We take a pro-active approach
in disclosing our policies, programs, actions and results. We welcome feedback from these ESG rating
agencies on our journey to continuously improve and maximize our positive impact to society, through
the projects we undertake for our clients, in our own business operations and through the way we engage
with people and communities. The table below shows our scores for several key Environmental, Social,
Governance (ESG) related rating agencies over the last two years. Our Non-Financial Reporting webpage
includes more information and details on these assessments.
Score 2022 Score 2021
Score Rank Score Rank
Sustainalytics
(Lower ESG Risk
Rating score
= lower risk)
ESG Risk Rating: 14 Top 1% (1st place) in
industry
Top 8% of all companies
ESG Risk Rating: 12.9 Top 1% (1st place) in
industry
Top 4% all companies
EcoVadis
Overall score: 77/100
points
Platinum medal
Top 1% of industry
Top 1% of companies
globally
Overall: 69 points,
Gold medal
Top 2% in industry
Top 4% all companies
MSCI TBD April 2023 TBD April 2023
AA (leader) Top 19% of industry
ISS
ESG Corporate
Rating
C+
‘Prime’ status
Within top 10%
(1st decile) of industry
C+
‘Prime’ status
Within top 10% (1st
decile) of industry
CDP
Climate change
questionnaire
A- Leadership category
B Above industry and
Global average
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Sustainable procurement
Responsible and sustainable procurement has been recognized as a material theme for Arcadis.
We are further developing our Sustainable Procurement Program and building an impact-based
approach. In 2022, these developments included, but were not limited to:
• A small-scale Supplier Sustainability Collaboration Pilot as a basis for larger scale collaborations.
This pilot paved the path to larger scale deep diving on points 2 and 3.
• Reviewing and reducing our greenhouse gas impact through our supply base. Further development of
our Scope 3 analysis, reporting, and reduction focuses on purchased goods and services. A Supplier
Collaboration program on reduction of our Scope 3 impact is being developed
1
.
• Growing our phased Human Rights approach based on our Human Rights policy and roadmap
addresses the supply chain in alignment with the United Nations Guiding Principles on Business and
Human Rights.
• Risk assessments on procurement category level help us identify possible environmental and human
rights risks. Measures for risk mitigation include:
– internal training of our (procurement) community for higher awareness;
– engagement of AI-monitoring services help us to trace potential non compliances in our supply base;
– the extension for suppliers to raise concerns through an Integrity Line.
Training of our international procurement community to familiarize key stakeholders in this community
with external sustainability developments and internal tools.
Core principles that guide Arcadis’ Sustainable Procurement practices are represented in our publicly
available Arcadis Global Procurement Policy Statement and the Arcadis Global Supplier Code of Conduct,
which outlines the collaborative approach we aim for with our supply base. It also details Arcadis’
expectations that suppliers need to meet regarding ESG topics.
To strengthen our approach, we follow ISO20400 guidelines for the planning and implementation of
sustainable procurement and the Arcadis Risk & Control framework regarding Third Party Management
includes internal guidelines to engage with suppliers.
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