ESRS E1 Climate change

IRO – 1: DESCRIPTION OF PROCESSES FOR IDENTIFYING AND ASSESSING MATERIAL CLIMATE-RELATED IMPACTS, RISKS AND OPPORTUNITIES

Ferrovial implemented a robust process for identifying and evaluating climate-related impacts, risks and opportunities to align with global sustainability targets. This process incorporates assessments across its operations and value chain, considering physical and transition-related risks, as well as opportunities linked to climate resilience and mitigation strategies. The Company evaluates its impacts to climate change by monitoring and managing its greenhouse gas (GHG) emissions. This includes focusing on minimizing emissions from its activities and compensating for unavoidable emissions through offsetting mechanisms, where comprehensive tracking and reporting of GHG emissions in line with ESRS E1-6 ensures accountability and transparency.

Ferrovial addresses the physical risks associated with climate change through scenario-based assessments of potential hazards and their impact on operations and assets. The Company considers high-emission climate scenarios to identify potential hazards, such as extreme weather events or rising sea levels, that could impact infrastructure and services. By analyzing the exposure and sensitivity of its infrastructure, Ferrovial identifies risks to business continuity and physical assets. Sustainable and resilient infrastructure projects are designed to mitigate these risks and ensure long-term operational stability.

The Company also assesses risks and opportunities arising from the global shift toward a low-carbon economy. Ferrovial evaluates transition risks and opportunities under scenarios aligned with limiting global warming to 1.5°C. These include regulatory changes, market shifts, and technological advancements that could impact its operations or create new opportunities. It identifies areas where its business activities might face challenges due to decarbonization requirements but also recognizes significant opportunities. For instance, the development of energy infrastructure, energy efficiency services, and renewable energy solutions positions Ferrovial as a leader in climate adaptation and mitigation. Opportunities also include creating sustainable and resilient infrastructures to address climate adaptation needs, which can generate competitive advantages and differentiation in the market.

To support the evaluation of physical and transition risks and opportunities, Ferrovial employs a climate scenario analysis. This analysis includes a range of climate scenarios, from high-emission pathways to those aligned with limiting warming to 1.5°C, providing insights into short, medium, and long-term risks to offer a comprehensive view of potential impacts. Through this scenario analysis, Ferrovial ensures its strategy and business model are resilient and adaptable to future climate conditions. This structured and forward-looking process demonstrates Ferrovial’s commitment to addressing climate challenges while leveraging opportunities to drive sustainable growth and innovation.

Ferrovial applies the recommendations of the Task Force on Climate-related Financial Disclosure (TCFD) in the process of identifying, analyzing and managing risks and opportunities related to climate change. The Company periodically assesses and quantifies risks in all its business units and geographies for different climate scenarios recommended by the IPCC (The Intergovernmental Panel on Climate Change) and time horizons (short, medium and long term: 2025, 2030 and 2050; which are linked to Ferrovial infrastructure long-term concessions and those where Ferrovial is the owner).

Physical climate scenarios consider anthropogenic changes through greenhouse gas concentration pathways, the so-called Representative Concentration Pathways (RCPs), taking into account the increase of global temperature: 2.6°C and 4.4ºC in 2100.

To analyze climate-related transition risks Ferrovial considers transition scenarios, based on the degree of implementation of climate change policies, presented annually by the International Energy Agency in the World Energy Outlook: Stated Policies Scenario (it implies a global temperature increase of 2.4/2.8ºC in 2100), Announced Pledges Scenario (global temperature increase of 1.9/2.3ºC in 2100), Net Zero Emissions by 2050 Scenario (global temperature increase of 1.3/1.5°C in 2100).

The significant climate-related physical risks of Ferrovial’s infrastructures are:

• Water-related risks: droughts
• Temperature-related risks: extreme temperatures and heatwaves

The main climate-related transition risks are:

• Market risks:
  • Increase in the cost of energy, both fossil fuels and electricity, and other raw materials specific to the activities
  • Change in the behavior of customers and/or users in the utilization of transportation
  • Loss of competitiveness in bidding processes due to non-compliance with environmental requirements

• Technological risks:
  • Lack of availability of new technologies

• Regulatory risks:
  • New regulations limiting or modifying the use of certain modes of transportation
  • Increased reporting of emissions and other environmental climate aspects

• Reputational risks:
  • Penalty or additional cost due to non-compliance with objectives associated with the sustainable-linked bond (SLB).
  • Potential donations in the Euro Commercial Paper (ECP) program for non-compliance with each sustainability objective.
  • Premium payment on the debt margin of credit line debt due to non-compliance with the ESG score in DJSI.
  • Impact on Ferrovial’s share price stemming from the failure to meet SBTi targets and its potential financial effect on the share value due a negative market reaction.

With regard to opportunities, Ferrovial performs a periodic evaluation following the TCFD recommedations and Ferrovial Risk Management. The main opportunities are:

• Cadaguahelps to solve the effects of climate change on water resources, orienting its business to he design, construction, operation and maintenance of water treatment facilities.
• Comprehensive solutions for the development, construction, management and operation of energy infrastructures and energy management services.
• Newopportunities for the development of sustainable and resilient infrastructures that offer solutions for adaptation to climate change (ADAPTARE).

Assets and business activities that are incompatible with the transition to a climate-neutral economy or that need significant effort to be compatible with it were not identified, since Ferrovial infrastructures are already prepared for this path, implementing different adaptation and mitigation measures.

For further information, please consult the section “SBM Disclosure Requirement – 3: Material issues, risks and opportunities and their interaction with the strategy and business model”.

Ferrovial will work to conduct climate risk analyses throughout its value chain.

SBM – 3: MATERIAL IMPACTS, RISKS AND OPPORTUNITIES AND THEIR INTERACTION WITH STRATEGY AND BUSINESS MODEL(S).

As mentioned in the section above, Ferrovial applies the recommendations of TCFD in the process of identifying, analyzing and managing risks and opportunities related to climate change in order to conduct a company resilience analysis.

The Company periodically assesses and quantifies risks in all of its business units and geographies for different time horizons (short, medium and long term: 2025, 2030 and 2050) and climate scenarios.

The methodology for climate risks is based on the Ferrovial Risk Management (FRM) methodology. This approach evaluates the probability of occurrence of the risk, the impact on the business and its frequency. This resilience analysis is reviewed and updated according to FRM guidelines.

The methodology considers transition scenarios, based on the degree of implementation of climate change policies, presented annually by the International Energy Agency in the World Energy Outlook:

• Stated Policies Scenario (STEPS). It takes into account current policies defined at the sectoral level, as well as those announced by countries. This scenario would imply a global temperature increase of 2.4/2.8ºC in 2100.
• Announced Pledges Scenario (APS). A scenario in which it is assumed that all climate commitments set by governments worldwide, including nationally determined contributions and long-term net zero targets, will be met on time and on budget. This scenario would imply a global temperature increase of 1.9/2.3°C in 2100.
• Net Zero Emissions by 2050 Scenario (NZE). It shows a difficult but achievable path in which the global energy sector achieves net CO2 emissions by 2050, with advanced economies reaching that goal before the others. This scenario would imply a global temperature increase of 1.3/1.5°C in 2100.

Physical climate scenarios consider anthropogenic changes through greenhouse gas concentration pathways, the so-called Representative Concentration Pathways (RCP).

• RCP 4.5. Emissions peak around 2040 and then decline. In this scenario, the temperature could increased by 2.6°C in 2100.
• RCP 8.5. Emissions continue to increase until doubling by 2050, known as the business-as-usual scenario. Global average temperature exceeds 4.4ºC in 2100.

To analyze physical climate risks, Ferrovial, in collaboration with the Hydraulics Institute of the University of Cantabria, has developed the ADAPTARE Climate Risk and Adaptation methodology and tool. ADAPTARE is based on the EU Taxonomy and follows the methodology of the framework proposed by the IPCC, considering three variables: climate-related hazards, vulnerability (sensitivity and adaptive capacity of the asset) and exposure (characterization and valuation of assets) of the infrastructure; taking into account the geolocation of infrastructures worldwide. The tool uses different data sets to characterize the infrastructure and climate projections, modeling the climate risk that describes the change in risk levels for the physical climate scenarios and time horizons mentioned above.

The time horizons consider the duration of the contracts associated with the assets evaluated. Infrastructures with long concession or being owned by the Company are analyzed; taking into account the selected time horizons the Company can determine the main climate hazards throughout the life of its assets, and allowing it to implement adaptation measures to create more resilient infrastructures.

The results of the Company’s resilience analysis are shown below, indicating the main climate risks and their mitigation and/or adaptation measures:

E1 – 1: TRANSITION PLAN FOR CLIMATE CHANGE MITIGATION

Ferrovial has had a firm climate strategy in place since 2011, framed within the Company’s strategic plan and aligned with its sustainability strategy.

The Sustainability Committee, chaired by the Sustainability Director, is made up of representatives from the business units (Toll Roads, Airports, Energy and Construction) and the corporate areas (Sustainability -Chairman and Secretary-, Health, Safety and Well-being, Compliance and Data Protection, Internal Audits and Risks, Innovation, Human Resources, Communication and CSR, General Secretariat, Corporate Strategy, Investor Relations and Procurement). Serving as the link between the business and senior management, the committee chair reports regularly to the Board of Directors, the Management Committee, and monthly to the CEO. In this regard, the CEO takes on significant relevance by including the monitoring and implementation of initiatives related to climate change on his monthly schedule.

The Q&E Steering Committee, chaired by the Sustainability Director (who is also the committee’s secretary), is the body that executes the corporate climate change strategy across the businesses that make up the Company. It is where they discuss, make decisions, establish initiatives, and review results related to climate change projects, as well as implementing the Quality and Environment Policy throughout the Company. This committee analyses aspects such as legislation, new legislative challenges in the countries in which the Company operates and market trends, as well as recommendations from government agencies and other organizations. The Q&E Steering Committee is composed, in addition to the corporate Sustainability Director, of the most senior business representatives in this area. Committee meetings are held at least quarterly and may be held more frequently if necessary.

Climate strategy is supervised annually by the Board of Directors. Since 2022 (FY 2021), the Company has committed to the “Say on Climate” initiative, which involves the presentation of Ferrovial’s Annual Climate Strategy Report at the General Shareholders’ Meeting, for a consultative vote. In this way, it has become the first Spanish Company to take on this commitment, and the first in its sector on a global scale.

One of the pillars of the strategy is the decarbonization plan Deep Decarbonization Path (DDP) which establishes the mitigation lines that must be worked on to achieve the 2030 emission reduction targets. During 2024, Ferrovial worked on updating its decarbonization plan to align with the 1.5ºC decarbonization path.

Since 2017 Ferrovial’s Climate Strategy has had reduction targets endorsed by the Science Based Targets Initiative (SBTi), the most recognized organization to establish emission reduction targets, aligned with the 2nd pathway (the only one available at that time) , aimed at contributing to the Paris Agreement and the 2030 Agenda.*

*Ferrovial is not excluded from EU Paris-aligned Benchmarks.

It also establishes the roadmap for decarbonizing corporate activities through the use of renewable energies to the detriment of fossil fuels, while developing new lines of business aimed at achieving the decarbonization of the economy and combating the effects of climate change.

The established objectives are:

• Reduce Scope 1&2 emissions in absolute terms by 35.3% by 2030 (base year 2009).*
• Reduce Scope 1&2 emissions in relative terms (CO2/M€) by 42.9% by 2030 (base year 2009).
• Reduce Scope 3 emissions in absolute terms by 20% by 2030 (base year 2012).**

* The Deep Decarbonization Path, Ferrovial’s strategic plan sets a target of 35.3% Scope 1&2 emissions reduction in absolute terms, more ambitious than the 32% that the SBTi initiative had approved.
** Scope 3 emission categories excluded from SBTi target: capital goods and purchased goods & services.

In 2024, Ferrovial embarked on obtaining new 1.5°C aligned SBTi-validated targets. Significant progress has been made in achieving this validation, with final SBTi confirmation expected in early 2025.

The Company wanted to increase the level of ambition of the short-term goals and set a Net Zero target of 2050 or sooner.

The objectives to be validated are:

• Reduce Scope 1&2 emissions by 42% by 2030 (base year 2020) in absolute terms.
• Reduce Scope 3 emissions*** by 25% by 2030 (base year 2020) in absolute terms.
• Reduce Scope 1&2&3 emissions by 90% by 2050 (base year 2020) in absolute terms.

***Including purchased goods & services, upstream transportation, waste generated in operations and fuel and energy.

The new targets were presented to the Board of Directors. The 2024 Climate Strategy Report, which includes these new targets, will be brought for advisory vote at the Annual General Meeting.

Decarbonization levers:

The Deep Decarbonization Path (DDP), which establishes the mitigation lines on which to work in order to achieve the 2030 emission reduction targets, is based on:

• Electric and more efficient vehicle fleet.
• Reduction of emissions associated with construction machinery through the implementation of energy efficiency measures by 2030
• Reduction of asphalt plant emissions through energy efficiency by 2030
• Exploration of technology alternatives for low-carbon heavy machinery
• Use of less polluting fuels: promotion of biofuels.
• Consumption of 100% of electricity from renewable sources: Self-generation & renewable energy procurement (100% of electricity coming from renewable sources – target for 2025)

Ferrovial expects to be able to reduce- Scope 1 emissions between 40.000 – 50.000 tCO2eq and scope 2 emissions between 30.000 – 40.000 related to this decarbonization levers in 2030.

The Scope 3 emissions decarbonization strategy focuses on:

The Group proactively managing its procurement process with a focus on reducing the embedded carbon across the supply chain, particularly in construction activities. Key initiatives and projects include:

• Fostering low-carbon products particularly cement and concrete – Ferrovial works in partnership with its most relevant suppliers to integrate progressively low carbon cement at an industrial scale. Ferrovial launched a Supplier Collaboration Program to work with suppliers to understand their emissions performance
• Developing new raw materials with less carbon embedded, using new technologies and innovative approaches (e.g., reducing the carbon in modified asphalt bitumen by introducing recycled materials).
• Using a Green Purchasing Catalog to promote the purchase of sustainable products
• Using engineering design to reduce the use of the most carbon-intensive raw materials, which is also good in the construction process.
• The Group fosters local procurement, when products are available, to minimize emissions from the transportation and distribution of goods, and prioritizes low-carbon modes of transportation, when possible, by encouraging the most relevant suppliers to accelerate their adoption of low- carbon transportation
• The Company through its “Circular Economy Plan” aims to increase recycling and reusing opportunities, particularly in construction activities – the Plan includes actions such as the reuse of excavation in civil works (mostly transportation infrastructure projects) and onsite recycling of concrete/ asphalt from demolition work

Ferrovial expects to be able to reduce its emissions between 420,000 – 490,000 tCO₂eq related to these decarbonization levers by 2030.

The penetration of these decarbonization lines is not linear over time and will depend on their technological feasibility and economic efficiency. The transition plan is reviewed annually, and the investment required to implement it is included in the financial planning, in order to ensure its viability in the future. For further information about the MDR-A, see section ESRS 2, Minimum Disclosure requirements.

The investments made by Ferrovial within the framework of Delegated Regulation 2021/2178 are not related to the Deep Decarbonization Path, as they are associated with the development of third-party projects or with activities that have an impact outside the perimeter of Ferrovial’s footprint.

Locked-in emissions: Ferrovial considers emissions related to the waste management and treatment processes of the assets in the U.K. and Poland as locked-in emissions in 2030. The Company ensures compliance with the reduction targets through the analysis carried out for the transition plan aligned with the 1.5 and the different decarbonization lines.

Traffic emissions related to our concessions are not considered as locked-in emissions. During 2024 and following the recommendations of the GHG Protocol Scope 3 guidelines, Ferrovial will no longer include Customer related emissions in its carbon footprint inventory (Scope 3). The Company will continue to report and verify these emissions as it considers them to be relevant and will work as far as possible to reduce its emissions even though they are no longer within its reduction targets.

Ferrovial’s reduction target requires a 42% reduction in Scope1&2 emissions by 2030 compared to 2020 levels. In the financial year2024, emissions were reduced compared to the base year by 35.78%, exceeding the annual target of 16.80%.In relation to the Company’s target of consuming 100%renewable electricity by 2025, in the last financial year the consumption of electricity from renewable sources was 72.75%.Regarding Scope 3 emissions,Ferrovial’s reduction target requires a 25% reduction by 2030 compared to 2020 levels, including purchased goods and services, upstream transportation, waste generated in operations and fuel and energy. In the 2024 financial year, emissions were reduced compared to the base year by 18%, exceeding the annual target of 10%.

To see more information related to CapEx refer to ESRS 2, Minimum Disclosure Requirement.

E1 – 3: ACTIONS AND RESOURCES IN RELATION TO CLIMATE CHANGE POLICIES

The climate strategy establishes the roadmap for decarbonizing corporate activities through the use of renewable energies to the detriment of fossil fuels, while developing new lines of business aimed at achieving the decarbonization of the economy and combating the effects of climate change. To see more information about MDR-A, refer to ESRS 2, Minimum Disclosure requirements.

• Review and controls with the governance systems implemented at the Company (risk management, compensation, etc.).
• Monitoring and management of energy consumption to track compliance with emission reduction targets.
• Verification of greenhouse gas emissions in accordance with the international standard ISAE 3410 of the Assurance Engagements on Greenhouse Gas Statements, which guarantees the reliability of the data.
• Development and implementation of the Deep Decarbonization Path, a plan to reduce internal emissions by using renewable energies, self- generation of electricity, energy efficiency or replacement of machinery and vehicles (which could translate into energy savings). For more information about the decarbonization levers, please, consult section “ESRS E1-1: TRANSITION PLAN FOR CLIMATE CHANGE MITIGATION”).
• Energy Management Programs: ISO 50001 implementation in 73% of Ferrovial’s contracts. The Energy Management Programs include audits of the total energy consumption of Cadagua, Ferrovial Construction and Energy in Spain. The focus of these audits is the vehicle fleet, the evaluation of energy consumption records, and the accuracy of available data. The purpose of these audits was to search for innovative technological solutions to reduce energy consumption and emissions. Some of the opportunities for improvement have been to implement new criteria in the acquisition of more efficient vehicles in terms of consumption and low-carbon emissions, and to implement eco-driving practices.
• Study and collaboration with key stakeholders for the development of projects that favor the transition to a low-carbon economy.
• Adaptare: Numerous measures are in place to ensure the resilience of infrastructures to climate change, defined over decades of experience in designing them, considering variations in climate conditions, developing business continuity plans, winter maintenance plans and transferring risks through a high level of insurance policy coverage.

The actions described above are carried out on an annual basis and aligned with the scope considered in the decarbonization levers described in section “ESRS E1-1: TRANSITION PLAN FOR CLIMATE CHANGE MITIGATION”.

E1 – 4: TARGETS RELATED TO CLIMATE CHANGE MITIGATION AND ADAPTATION

Ferrovial’s Climate Strategy has ambitious target aligned with the 2030 Agenda. It also establishes the roadmap for decarbonizing corporate emissions reduction targets endorsed by the Science Based Target Initiative (SBTi), aligned with the 2nd pathway, aimed at contributing to the Paris activities through the use of renewable energies to the detriment of fossil fuels, while developing new lines of business aimed at achieving the decarbonization of the economy and combating the effects of climate change.

The established objectives are as follows:

• Reduce Scope 1&2 emissions in absolute terms by 35.3%* by 2030 (base year 2009).
• Reduce Scope 1&2 emissions in relative terms (tCO2eq/M€) by 42.9% by 2030 (base year 2009).
• Reduce Scope 3 emissions in absolute terms by 20% by 2030 (base year 2012)**.

_{*The Deep Decarbonization Path, Ferrovial’s strategic plan sets a target of 35.3% Scope 1&2 emissions reduction in absolute terms, more ambitious than the 32% that the SBTi initiative had approved.** Scope 3 emission categories excluded from SBTi target: capital goods and purchased goods & services.}

In 2024, Ferrovial embarked on obtaining new 1.5°C aligned SBTi-validated targets. Significant progress has been made in achieving this validation, with final SBTi confirmation expected in early 2025.

The Company wanted to increase the level of ambition of the short-term goals and set a Net Zero target of 2050 or sooner.

The objectives to be validated are:

• Reduce Scope 1&2 emissions by 42% by 2030 (base year 2020) in absolute terms.
• Reduce Scope 3 emissions*** by 25% by 2030 (base year 2020) in absolute terms.

_{***Including purchased goods & services, upstream transportation, waste generated in operations and fuel and energy.}

• Reduce Scope 1&2&3 emissions by 90% by 2050 (base year 2020) in absolute terms.
• The new targets were presented to the Board of Directors. The 2024 Climate Strategy Report, which includes these new targets, will be brought for advisory vote at the Annual General Meeting.

The scope of the targets is the same as the GHG emissions reported in section “ESRSE1-6GROSS SCOPE 1,2,3 AND TOTAL GHG EMISSIONS”,and are based on market-based emissions. For more information about the climate scenarios considered to determine decarbonization levers, see section “ESRS E1IRO-1and SBM-3”.

Ferrovial has had reduction targets for Scope 1&2&3 since 2017. In 2024, with the update of our reduction targets for all scopes following SBTi guidelines, a new base year, 2020, is established.This new base year is representative of the activity of the Company in all scopes and, as it corresponds to an update of the existing targets.

While Ferrovial does not have a formalized process for directly collaborating with its stakeholders to determine its targets, the company continuously evaluates the effectiveness of its climate change mitigation and adaptation goals and initiatives through internal assessments.

Ferrovial, as part of its Carbon Footprint procedure, will recalculate its inventory whenever there is a structural change or new activities relevant to the company, a change in the calculation methodology (emission factors, approach…) or changes in annual consumption, in order to ensure the comparability of the information between the different years.

Since 2009, the carbon footprint (scope 1&2) has been calculated and reported for 100% of the activities under the operational control approach as an organizational boundary. In 2024 regarding requirements of ESRS the scope of carbon footprint includes the entire financial consolidation perimeter. The scope 1 and 2 of GHG emission included above are all part of the consolidated accounting group. The calculation methodology is based on GHG Protocol (WRI&WBCSD), while maintaining compliance with ISO 14064-1: 2018.

However, other methodologies have been used to consider specific aspects of the business, such as the DEFRA methodology for the U.K. and Scope 3 operations, and the EPER methodology for the estimation of diffuse emissions from landfills.

GHG emissions generated by Ferrovial’s activities are classified as follows:

DIRECT EMISSIONS (SCOPE 1)

Those from sources owned or controlled by the Company. They mainly come from:

• Combustion of fuels in stationary equipment to produce electricity, heat or steam. Solid waste incineration.
• Combustion of fuels in vehicles owned or controlled by the Company.
• Diffuse emissions. Those not associated with a specific source, such as biogas emissions from landfills.
• Fugitive emissions. Refrigerants.

INDIRECT EMISSIONS (SCOPE 2)

Generated as a result of the consumption of electricity purchased from other companies that produce or control it.

The calculation of GHG emissions includes the CO2 equivalence of the following gases: CO2, CH4, N2O, HFCs, PFCs, SF6 and NF3.

INDIRECT EMISSIONS (SCOPE 3)

Since 2012, Ferrovial has calculated all Scope 3 emissions following the guidelines set out in the Corporate Value Chain (Scope 3) Accounting and Reporting Standard published by the GHG Protocol Initiative, the WRI and the WBCSD. Ferrovial calculates 9 of the 15 categories included in the Corporate Value Chain (Scope 3) the company accounting and Reporting Standard document. The categories that do not apply are:

• Downstream transportation and distribution. Ferrovial does not sell products that are transported or stored.
• Processing of sold products. Ferrovial does not have products that will be transformed or included in another process to obtain another product.
• Downstream leased assets. Ferrovial has no assets that it rents out to other companies.
• Franchises. Ferrovial does not act as a franchisor.
• Use of sold products: Ferrovial does not have direct use-phase emissions of products or services sold by the Company*

* During 2024 and following the recommendations of the GHG Protocol Scope 3 guidelines, Ferrovial will no longer include Customer related emissions due to Cintra and airports concessions in its carbon footprint inventory (Scope 3). The Company will continue to report and verify these emissions as it considers them to be relevant and will work as far as possible to reduce its emissions even though they are no longer within its reduction targets. Due to Ferrovial’s commitment to transparency, the Company has made the decision of keeping the disclosure of traffic-related emissions.

• Upstream leased assets: Ferrovial does not operate assets that are leased by the Company in the reporting year and not already included in the reporting Company’s scope 1 or scope 2 inventories.

The calculation method on the categories that apply is listed below:

PURCHASED GOODS AND SERVICES:This section includes emissions related to materials purchased by Ferrovial for use in products or services that it offers by the Company. Includes emissions from the different phases of the life cycle: extraction, pre-processing and manufacturing. Excludes the use and transportation phase. This category includes the most relevant materials from an environmental and purchasing volume viewpoint, such as paper, wood, water, concrete, asphalt, steel and asphalt agglomerate. The methodology consists of applying a specific Defra conversion factor to the quantity of these materials purchased. Production related goods and services are accounted in capital goods, while non-production goods and services are not considered as material.

CAPITAL GOODS: This category includes all upstream (i.e., cradle-to-gate) emissions from the production of capital equipment purchased or acquired by the Company in the year. EPA (United States Environmental Protection Agency) sector-specific economic conversion factors are used

FUEL AND ENERGY RELATED ACTIVITIES (NOT INCLUDED IN SCOPE 1 OR 2): This section considers the energy required to produce the fuels and electricity consumed by the Company, as well as electricity losses in transportation and distribution. To calculate the emissions corresponding to the fuels (gasoline, diesel, natural gas, propane, LPG…) and electricity purchased, conversion factors were applied, according to Defra’s “well-to-tank” source. For electricity loss from transportation, the conversion factor applied is country-specific and comes from the International Energy Agency.

WASTE GENERATED IN OPERATIONS: The emissions in this section are related to the waste generated by the Company’s activity that was reported in the financial year. A Defra conversion factor was applied to each of the amounts of these wastes. This section includes:

• Construction and Demolition Waste.
• Non-Hazardous Waste: Urban assimilable waste, wood, vegetable waste.
• Hazardous Waste.
• Excavated soil taken to landfills

BUSINESS TRAVEL: This includes emissions associated with corporate travel, whether by train, plane, cab or rental car used for travel. For this category, data provided by the travel agency or accounting data such as type of trips, journeys or expenses were used. DEFRA-sourced conversion factors are applied to this data to derive the emissions associated with each type of travel. Well-to-tank (WTT) and tank-to-wheel (TTW) emissions are included.

EMPLOYEE COMMUTING: This category includes emissions from employees’ commutes from their homes to their workplaces. Ferrovial calculates the emissions of construction, infrastructure and Ferrovial Group employees who work in central offices.

The required information is:

• Number of employees.
• Distance from employees’ homes to the office.
• Type of transportation used in case if not walking to the offices: car, motorcycle, subway, bus or train.

To obtain information on the type of transportation used and distances, surveys were conducted. DEFRA conversion factors are applied to these data to obtain the emissions related to each type of travel. Emissions “well to tank” (WTT) and “tank to wheel” (TTW) are included.

END OF LIFE TREATMENT OF SOLD PRODUCTS: This category includes emissions from the disposal of waste generated at the end of the useful life of products sold by Ferrovial in the reporting year. Ferrovial offers services and products. Services, being labor, do not generate emissions associated with this category. As for the products sold, these correspond to the construction of infrastructures. In this case, the most relevant materials, from an environmental point of view and by volume, which are included in the construction of infrastructures are wood, paper, barrier, asphalt and concrete. Therefore, at the end of the useful life of the infrastructures, the waste to be managed corresponds to them. A conversion factor of Defra is applied to these products to obtain the emissions from the disposal of waste generated at the end of the useful life of the infrastructure.

INVESTMENTS: Accounts for Scope 1&2 emissions related to airport and highway investments over which it does not have operational control.

BIOGENIC EMISSIONS

According to the IPCC (Intergovernmental Panel on Climate Change) and the “Protocol for the quantification of greenhouse gas emissions from waste management activities” standard, CO2 from the combustion of captured and channeled biogas that is burned in flares, in cogeneration processes or in boilers must be reported as zero. This is because this gas comes from the decomposition of products containing organic matter of animal or plant origin that was previously captured by living organisms and therefore belongs to a carbon neutral cycle. These emissions also include the incineration of organic matter in incineration plants.

E1 – 7: GHG REMOVALS AND GHG MITIGATION PROJECTS FINANCED THROUGH CARBON CREDITS

In the last financial year the Company has set the goal of being Net Zero by 2050 or sooner through the SBT initiative for direct emissions by reducing emissions and voluntary compensation for those that cannot be reduced, as set out in Article 6 of the Paris Agreement. Offsetting is done through neutralization and mitigation beyond the value chain, relying on nature-based solutions

To ensure that offsets comply with the principles of additionality, permanence and avoidance of double accounting, Ferrovial purchases carbon credits from recognized quality standards, such as VCS Standard and Gold Standard.

The carbon credits whose cancellation we expect in the future are 63,973 tCO₂eq until 2026. This future cancellation is a high-level estimate and is subjects to change.Thus, Ferrovial addresses climate change outside its value chain and contributes to the reduction of global CO₂e emissions, complementing the current climate strategy.

The Company also has the Compensa project, which consists of the reforestation of burned or agricultural areas in the Madrid region. This project generates a double positive impact, environmental and social, since it consists of the restoration of degraded land through the employment of local people. It was developed in Torremocha del Jarama, where 7.7 hectares have been reforested with a total of 4,000 trees, which will absorb approximately 2,000 tCO2eq. The project was developed in compliance with the requirements, principles and methodologies established by MITECO for the registration of emission removal projects.

It should be noted that the Spanish Ministry for Ecological Transition and the Demographic Challenge has given Ferrovial the highest recognition achieved for its work in “Calculate,” “Reduce,” and “Compensate” through the Compensa reforestation project.

E1 – 8: INTERNAL CARBON PRICING SYSTEM

Shadow Carbon Pricing

The Company applies a methodology to economically quantify the potential climate risk of its most relevant investments in the Shadow Carbon Pricing method to consider this impact on new investments. The tool takes into account the direct and indirect emissions of the project as a whole, applying variable prices per CO2e for different time horizons, geographies and infrastructure type. The calculation process is required when evaluating new investments and it involves:

1. Identifying the current or effective carbon prices in different countries and sectors, considering both explicit mechanisms (like carbon taxes and emissions trading schemes) and implicit mechanisms (like fuel taxes).
2. Defining an optimal carbon price based on studies by the International Energy Agency (IEA) and the International Renewable Energy Agency (IRENA).

Based on this information, the shadow carbon price is calculated, resulting in different prices for each country, sector and time period, which then are combined to obtain an average shadow carbon price for each type of project. For 2024, the average carbon price is 27 €*.

Ferrovial has a tool that the management responsible for each project will introduce into the tool information which includes business unit, type of infrastructure, country, start date, end date and scope 1 and 2 emissions. Following a case-by-case study, emissions associated with Scope 3 emissions are introduced where appropriate.

This tool contains algorithms and a database that will calculate the “Shadow Carbon Price” of the project based on the information described above, per year and throughout the entire concession period.

More specifically, it allows the calculation of:

i. the project’s net carbon footprint (understood as the increase or decrease in emissions attributable to the project compared to the pre-existing situation or the situation that would arise if the project is not executed)

ii. the net annual distribution of the footprint over the time period considered in the investment project, and

iii. the applicable carbon prices that will depend on the type of project, activities involved and the country or geographical region where it is implemented.

_{**As the investment analyzed with shadow carbon pricing are made for future investments, no hedge emissions have been identified for this reporting period. This price is used as additional information when making decisions on new investments and is not included in the financial statement.}