Arcadis : CDP Climate Change Questionnaire 2021

Arcadis - Climate Change 2021

C0. Introduction

C0.1

(C0.1) Give a general description and introduction to your organization.

Arcadis is the leading global Design & Consultancy firm for natural and built assets. Established in 1888, we have applied our deep market sector insights, and collective Design, Consultancy, Engineering, Project and Management solutions for our clients to deliver exceptional and sustainable outcomes.

At the end of 2020, we had 27,939 employees, offices in over 30 countries and generated €3.303 billion in revenues. Arcadis is globally headquartered in Amsterdam, the Netherlands with a worldwide network anchored by leading positions in Europe, the Americas, Asia Pacific and through CallisonRTKL and Arcadis Gen.

Through this network, we support our clients on a truly global basis. Our clients benefit from our strong local presence and our long-term service record on their behalf is rooted in a deep-seated understanding of local market conditions alongside global expertise on a variety of subject matters.

Our client base is diverse, ranging from public and private sector organizations to regulated institutions. We leverage our deep understanding of sustainability to deliver ground-breaking projects and solutions that create value for our clients and make positive contributions to the environment and society. Arcadis offers full lifecycle solutions for clients in most of the major markets including business advisory and consulting, architectural design, remediation, design and engineering, and program/project/cost management. Arcadis differentiates itself from competitors through key market sector insights, by deepening our market sector capabilities and by developing long-term client relationships and addressing our client's multi-faceted needs.

In terms of corporate governance, climate related issues at Arcadis are managed under the guidance of the Executive Board and the Executive Leadership Team. In March 2021, Arcadis announced that Alexis Haass has joined as its first Chief Sustainability Officer ("CSO") to help drive the company's strategy and deliver on its goal of making a significant, quantifiable, and positive contribution to sustainable development. The CSO reports directly to the Executive Leadership Team member responsible for Sustainability ("ELTS") and through this to the CEO.

Arcadis also has a Sustainability Committee ("SusCo"), a committee of the Arcadis Supervisory Board with the primary task of assisting and advising the Supervisory Board of Arcadis N.V. in the area of sustainability. The SusCo consists of three members of the Supervisory Board and meets on a quarterly basis with the CEO, the Executive Leadership Team member responsible for Sustainability and the CSO. For the purpose of the SusCo, sustainability is defined as the various Environmental, Social, and Governance topics that demonstrate or measure the Company's commitment to improving quality of life. The SusCo assists the Supervisory Board by preparing the plenary discussion and decision-making by the Supervisory Board on major items within the SusCo's scope of work.

This is report is completed on behalf of the Arcadis group of companies (including CallisonRTKL and Arcadis Gen). Where responses are given on behalf of specific entities/countries/regions rather than globally, this is indicated in the specific response.

C0.2

(C0.2) State the start and end date of the year for which you are reporting data.

	Start date	End date	Indicate if you are providing emissions data for past reporting	Select the number of past reporting years you will be providing emissions data
			years	for
Reporting	January 1	December 31	Yes	3 years
year	2020	2020

C0.3

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(C0.3) Select the countries/areas for which you will be supplying data.

Australia

Belgium

Brazil

Canada

Chile

China

China, Hong Kong Special Administrative Region

China, Macao Special Administrative Region

France

Germany

India

Ireland

Italy

Malaysia

Netherlands

Philippines

Poland

Qatar

Romania

Saudi Arabia

Singapore

Spain

United Arab Emirates

United Kingdom of Great Britain and Northern Ireland

United States of America

C0.4

(C0.4) Select the currency used for all financial information disclosed throughout your response.

EUR

C0.5

(C0.5) Select the option that describes the reporting boundary for which climate-related impacts on your business are being reported. Note that this option should align with your chosen approach for consolidating your GHG inventory.

Operational control

C1. Governance

C1.1

(C1.1) Is there board-level oversight of climate-related issues within your organization?

Yes

C1.1a

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(C1.1a) Identify the position(s) (do not include any names) of the individual(s) on the board with responsibility for climate-related issues.

Position of	Please explain
individual(s)
Board-level	There are two Supervisory Board ("SB") committees involved with sustainability 1. SusCo To further institutionalize sustainability-related discussions at Board level, the Sustainability Committee
committee	("SusCo") meets on at least a quarterly basis and comprises three SB members. The CEO, the ELTS, one rotating (quarterly) Regional CEO and the CSO are permanent guests. The SusCo advises
	the SB in the area of sustainability, assists the SB in fulfilling its responsibilities and prepares the plenary discussion and decision-making by the SB about the major items within the SusCo's scope
	of work. The members of the SusCo may directly liaise with and advise the ELT member responsible for sustainability, the CSO and other people in the organization . The SusCo focuses on: a) the
	sustainability approach and culture of the Company; b) sustainability as a fiduciary duty; c) the linkage between the Company strategy and sustainability; d) the appropriate framework for non-
	financial reporting on sustainability; e) sustainability as element of remuneration; f) the enhancement of sustainability in the Company's organization; g) external positioning and the further
	development positioning as a sustainable business in the market through thought leadership and otherwise, and getting the related recognition; h) the impact for clients through provision of services;
	i) opportunities and risks in the area of sustainability; j) the relationship with other 'related topics' such as Governance and Integrity; and k) other Sustainability items/elements as determined from
	time to time. 2. AARC The Arcadis Audit and Risk Committee (AARC) has oversight on, among others, risk management and comprises four SB members. Arcadis uses an Enterprise Risk
	Management (ERM) system, the Arcadis Risk and Control (ARC) Framework, to identify 16 key risks and opportunities, divided into three categories: Strategic, Operational and Compliance.
	Sustainability is included as an operational risk area, described as: "the risk that Arcadis does not contribute effectively to the advancement of sustainable development either for its clients or within
	its own business". The EB ensures that the ARC framework works well through yearly review and ELT members take ownership of mitigating identified key risks and pursuing opportunities. On a
	quarterly basis, the key risks are reported to the AARC.
Chief	Sustainability, including climate-related issues, is an integral part of our business strategy, client offerings, and indirect operations. It is at the core of what Arcadis does. Oversight of climate-related
Executive	issues and decision-making for our strategy are owned by our ELT. Our CEO leads the ELT/Executive Board and has ultimate global ownership for the company's performance including any
Officer	sustainability matters and integration of these issues. The CEO receives frequent updates about the progress of integrating sustainability into everything that we do, both from the ELT member
(CEO)	responsible for sustainability and the CSO. The CEO is also engaged in decision making matters as appropriate. An example of the CEO's influence and engagement is seen via joining the Executive
	Committee of WBCSD in 2020. This group of 23 CEOs from corporations around the world is responsible for supervising the strategy and monitoring the effectiveness of operations, controls, and
	governance of WBCSD. In this capacity, Arcadis CEO is a leading voice in contributing to the sustainable practices of all the member companies of WBCSD. Another example of the CEO's influence
	and engagement is seen via regular leadership and C-suite meetings and presentations at clients of ours to encourage collaboration and accelerated action around climate change.
Other C-	Sustainability, including climate-related issues, is an integral part of our business strategy, client offerings, and indirect operations. Oversight of climate-related issues and decision-making for our
Suite Officer	strategy are owned by our ELT. While our CEO has ultimate global responsibility for the business in including sustainability matters, our ELTS (also member of the ELT and a C-suite officer) has
	sustainability in his portfolio and is responsible for ensuring progress aligned to our corporate ambition. Arcadis recently updated its Sustainability Strategy, which is under the ownership of the ELTS
	and ELT. Climate issue related decisions, including initiatives such as purchases of carbon offsets for our CO2e emissions (Scope 1, 2 & 3 - business travel) are being undertaken at a global level.
	The ELT, CEO and ELTS also have decided in 2019 to implement an enterprise-wide Environmental Management System ('EMS') to better structure our sustainability program, drive continuous
	improvement and bring quality of data to a higher level. The implementation of an EMS supports Arcadis' management of Market and Reputation climate-related risks. The ELTS work closely with the
	CSO and her team, providing support and guidance, and is a permanent guest in the SusCo. The CSO also chairs an additional Sustainability Steering Committee that consists of 4 members of the
	ELT including the ELTS. The CSO uses this Committee to seek executive feedback regarding developing policies, programs, and progress.

C1.1b

(C1.1b) Provide further details on the board's oversight of climate-related issues.

Frequency	Governance	Scope of	Please explain
with	mechanisms	board-
which	into which	level
climate-	climate-	oversight
related	related issues
issues are	are integrated
a
scheduled
agenda
item
Scheduled	Reviewing and	<>	The Executive Board and ELT, with the supervision of the Supervisory Board, has overall responsibility for the Arcadis' business strategy, risk management and control
- some	guiding	Applicabl	systems and has full accountability for strategic risks, including climate-related issues. The Executive Board, Audit & Risk Committee and the Supervisory Board review the
meetings	business plans	e>	identified strategic, operational and compliance risks, including trends annually. The Arcadis SusCo meets at minimum on a quarterly basis to ensure that sustainability and
	Setting		climate-related issues are well-integrated into the company's strategy and performance. The ELTS, CSO and the Sustainability Leadership Team work together to identify,
	performance		assess, and integrate sustainability topics and issues into periodic ELT and Executive Board meetings. Examples of those topics is: review of sustainability strategy creation
	objectives		and targets, sustainability program development and implementation, sustainability-driven opportunities and directed business growth. Similarly, risks and the management
	Monitoring		thereof are also monitored, including topics such as failure to measure and manage our environmental impact, reputational damage and not being able to be at the cutting
	implementation		edge of designing and delivering appropriate and effective sustainable solutions for clients. Our ARC framework is updated on a yearly basis and approved by the
	and		Executive Board and supported by ELT members. Members of the ELT own specific risk(s) to oversee risk mitigation in line with our risk appetite and integrate the three
	performance of		pillars from Arcadis' Strategy: People & Culture, Innovation & Growth and Focus & Performance.
	objectives
	Monitoring and
	overseeing
	progress
	against goals
	and targets for
	addressing
	climate-related
	issues

C1.2

(C1.2) Provide the highest management-level position(s) or committee(s) with responsibility for climate-related issues.

Name of the position(s) and/or committee(s)	Reporting	Responsibility	Coverage of	Frequency of reporting to the board on
	line		responsibility	climate-related issues
Chief Executive Officer (CEO)	<>	Both assessing and managing climate-related		More frequently than quarterly
	Applicable>	risks and opportunities
Other C-Suite Officer, please specify (Executive Leadership Team member	<>	Both assessing and managing climate-related		More frequently than quarterly
responsible for Sustainability )	Applicable>	risks and opportunities
Sustainability committee	<>	Both assessing and managing climate-related		As important matters arise
	Applicable>	risks and opportunities
Other, please specify (Sustainability Steering Committee)	<>	Assessing climate-related risks and opportunities		More frequently than quarterly
	Applicable>

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C1.2a

(C1.2a) Describe where in the organizational structure this/these position(s) and/or committees lie, what their associated responsibilities are, and how climate- related issues are monitored (do not include the names of individuals).

Arcadis NV has a two-tier Board structure, consisting of the Executive Board and the Supervisory Board, both with distinct tasks and responsibilities for the Company and its stakeholders. The task of the Executive Board is to manage the Company and to realize its objectives and strategic goals. The task of the Supervisory Board and its committees is to supervise and advise the Executive Board. Our governance and management structure ensures that Arcadis has layers of oversight and day-to-day responsibility.

OVERSIGHT:

Chief Executive Officer

The Executive Board consists of the CEO and the CFO. The ELT includes the CEO and CFO, members with responsibility for regions where we operate, as well as members of the global C-suite and other key leadership positions, including the ELTS. The global CEO is an ELT and Executive Board member and has overall ownership of the company's performance and driving sustainability, including, climate-related issues. The CEO's ownership of sustainability is necessary since it is part of the core offerings to clients and integrated into Arcadis' way of work.

Other C-suite officer, Group Executive for Innovation and Transformation (Executive Leadership Team member)

Responsibility of the execution of supporting strategies and policies are undertaken on a day-to-day basis by the Global Executive for Innovation and Transformation, who is also the ELT member responsible for sustainability (ELTS). This role deals with both innovation and transformation, not only does our company need to respond rapidly to the shifting needs of our clients, but our own operations can be fine-tuned and made more efficient through sustainability and ensuring climate-related issues are well addressed.

Sustainability Committee ('SusCo')

Formally established in 2020, the primary function of the SusCo is to assist and advise the SB in the area of climate related risks and opportunities. The SusCo focuses on:

1. the sustainability approach and culture of the Company;
2. sustainability as a fiduciary duty;
3. the linkage between the Company strategy and sustainability;
4. the appropriate framework for non-financial reporting on sustainability;
5. sustainability as element of remuneration;
6. the enhancement of sustainability in the Company's organization;
7. external positioning and the further development positioning as a sustainable business in the market through thought leadership and otherwise, and getting the related recognition;
8. the impact for clients of the Company through provision of services;
9. opportunities and risks in the area of sustainability;
10. the relationship with other 'related topics' such as Governance and Integrity; and
11. other Sustainability items/elements as determined from time to time.

DAY-TO-DAY:

Chief Sustainability Officer

The Chief Sustainability Officer (CSO) reports to the ELTS. Responsibilities include the development of supporting strategies, interaction with other global and regional leaders, reporting & monitoring, and leading a global team of sustainability professionals that are focused on making sustainability core to everything that we do. Currently the CSO is leading the implementation of our refreshed corporate sustainability strategy. The Sustainability Strategy is refreshed on a three-year basis, with a new strategy been kicked off in end of 2020, to run through the end of 2023. This work is owned by the SLT, which consists of representation from all the regions, the three sustainability program pillar leads, some support roles and the CSO, with the CSO reporting directly to the ELTS and the ELT.

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Sustainability Leadership Team: The SLT meets more frequently than monthly and has the overall day-to-day responsibility of sustainability/climate-related issues and the Sustainability Strategy. The team works to create necessary policies and direct the implementation and integration of these programs. The SLT is also responsible for global relationships with non-governmental organizations (NGOs), trade associations, and other network groups. Additional responsibilities include: assessment of impact of Arcadis through its own operations, opportunities to improve impact across our sector through analysis of industry hotspots, the shaping of new sustainable business propositions and client offerings based off the impact analysis and hotspot assessment, and the education and engagement around sustainability.

In addition, we are also in the process of assessing our risks and opportunities posed by climate change based on the work of the Task Force of Climate Change Related Disclosure (TCFD).

Sustainability Steering Committee

The CSO also chairs the Sustainability Steering Committee that consists of 4 members of the ELT including the ELTS. Through this Steering Committee, the CSO seeks executive feedback regarding strategy development, policies, programs, and progress. This Committee meets quarterly at a minimum, however more frequent meetings are held as needed.

C1.3

(C1.3) Do you provide incentives for the management of climate-related issues, including the attainment of targets?

	Provide incentives for the management of climate-related issues	Comment
Row 1	Yes

C1.3a

(C1.3a) Provide further details on the incentives provided for the management of climate-related issues (do not include the names of individuals).

Entitled to	Type of	Activity	Comment
incentive	incentive	inventivized
Board/Executive	Monetary	Company	Since 2019, Arcadis has made sustainability a component of its executive remuneration by making it one of the 3 performance criteria for the long-term incentive
board	reward	performance	remuneration for our EB and ELT members. The sustainability target is currently measured by reference to the score applied to Arcadis by Sustainalytics. The score is
		against a	used to derive a company's exposures and performance, including climate-related issues such as energy, GHG performance/targets, assessment of event risks (e.g.
		climate-	acute physical events), amongst others. Score improvement also allows Arcadis to receive favorable interest rates from some financial institutions. The monetary incentive
		related	is applied to all members of our EB and ELT. The Supervisory Board is responsible for setting the threshold, target, and maximum for the Sustainalytics score each year
		sustainability	for a three-year period. As the field of Sustainability is in continuous development, the Supervisory Board may select a different, but always best-in-class measurement
		index	method going forward. The measurement method selected should be externally validated and should align with the Arcadis strategy to create impact through sustainable
			solutions.
Chief Executive	Monetary	Company	Since 2019, Arcadis has made sustainability a component of its executive remuneration by making it one of the 3 performance criteria for the long-term incentive
Officer (CEO)	reward	performance	remuneration for our EB and ELT members. The sustainability target is currently measured by reference to the score applied to Arcadis by Sustainalytics. The score is
		against a	used to derive a company's exposures and performance, including climate-related issues such as energy, GHG performance/targets, assessment of event risks (e.g.
		climate-	acute physical events), amongst others. Score improvement also allows Arcadis to receive favorable interest rates from some financial institutions. The monetary incentive
		related	is applied to all members of our EB and ELT. The Supervisory Board is responsible for setting the threshold, target, and maximum for the Sustainalytics score each year
		sustainability	for a three-year period. As the field of Sustainability is in continuous development, the Supervisory Board may select a different, but always best-in-class measurement
		index	method going forward. The measurement method selected should be externally validated and should align with the Arcadis strategy to create impact through sustainable
			solutions.
Chief Financial	Monetary	Company	Since 2019, Arcadis has made sustainability a component of its executive remuneration by making it one of the 3 performance criteria for the long-term incentive
Officer (CFO)	reward	performance	remuneration for our EB and ELT members. The sustainability target is currently measured by reference to the score applied to Arcadis by Sustainalytics. The score is
		against a	used to derive a company's exposures and performance, including climate-related issues such as energy, GHG performance/targets, assessment of event risks (e.g.
		climate-	acute physical events), amongst others. Score improvement also allows Arcadis to receive favorable interest rates from some financial institutions. The monetary incentive
		related	is applied to all members of our EB and ELT. The Supervisory Board is responsible for setting the threshold, target, and maximum for the Sustainalytics score each year
		sustainability	for a three-year period. As the field of Sustainability is in continuous development, the Supervisory Board may select a different, but always best-in-class measurement
		index	method going forward. The measurement method selected should be externally validated and should align with the Arcadis strategy to create impact through sustainable
			solutions.

C2. Risks and opportunities

C2.1

(C2.1) Does your organization have a process for identifying, assessing, and responding to climate-related risks and opportunities?

Yes

C2.1a

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