ESRS E3 Water and marine resources

Management of impacts, risks and opportunities and ESRS E3 metrics and objectives.

IRO – 1: DESCRIPTION OF THE PROCESSES TO IDENTIFY AND ASSESS MATERIAL WATER AND MARINE RESOURCE-RELATED IMPACTS, RISKS AND OPPORTUNITIES

Ferrovial employs a systematic process to identify and evaluate impacts, risks, and opportunities associated with water resources and marine environments, particularly through the activities of its subsidiary Cadagua, dedicated to the design, construction, operation and maintenance of water fatalities. This approach is centered on increasing water availability, improving its quality, and promoting efficient consumption, while addressing the challenges posed by climate change and water stress.

Ferrovial evaluates its operations to identify how its activities intersect with water resources, particularly in areas of water stress where surface waters and marine resources are at risk. The Company, through Cadagua, focuses on the design, construction, operation, and maintenance of water treatment facilities to ensure the availability of water for both human consumption and the natural environment. This includes mitigating water- related risks by improving water quality and promoting its efficient use, especially in areas experiencing significant water stress.

Methodologies employed in these evaluations include the use of data-driven monitoring tools and scenario analyses that assess the long-term sustainability of water resources and potential impacts from operational consumption and discharges. Such tools help Ferrovial balance its operational needs with environmental considerations in the areas most vulnerable to water stress.

By focusing on the availability, efficient consumption, and improvement of water quality, Ferrovial’s efforts through Cadagua represent a critical contribution to resolving the impacts of climate change on water resources. Moreover, the Company also addresses risks associated with severe weather events, which could affect infrastructures with maintenance and extraordinary repairs. These actions demonstrate Ferrovial’s resilience and adaptability to climate challenges, ensuring sustainable water management while mitigating operational risks..

This holistic approach underscores Ferrovial’s commitment to integrating water resource management into its broader sustainability strategy, aligning its operations with global and local priorities to create long-term value.

Ferrovial’s water policy recognizes water as a limited and irreplaceable natural resource and access to it as a fundamental human right. The water management strategy takes into consideration its availability, quality and the balance of the ecosystems on which it impacts. Ferrovial’s Water Policy encompasses principles designed to mitigate negative impacts and promote the positive impacts identified in the Double Materiality Assessment.

In its role as a consumer of water and supplier of services associated with water resources, the Company manages the resource responsibly and efficiently, taking into account the entire water cycle. To this end, indicators, objectives, monitoring procedures and strategies were established to enable continuous control and evaluation of this management in the Company’s direct operations, optimizing the balance that results in the Group’s water footprint. The water footprint calculation methodology, specific to the Company, considers the water stress factor in each region in which it operates, giving greater impact to catchments in areas with greater water stress, with special emphasis on the management performed in these areas. In addition, as stated in Ferrovial’s water policy, we support the development and use of new technologies that allow a more efficient use of water resources (more information is detailed in section E3 – 2).

The Quality and Environment Policy includes compliance with environmental regulations, focusing on minimizing our impact and avoiding pollution. To this end, we apply the best practices to prevent polluting the environment in which our activities are carried out and establish contingency plans when necessary.

In the context of a growing demand for drinking water and deteriorating quality due to pollution, thanks to its subsidiary Cadagua, the Company plays a key role in water management, contributing to solving the main challenges of supply, quality, sanitation and pollution, especially in areas with water shortages.

In addition, in line with the global strategy of promoting sustainable infrastructures, we support the development of infrastructures that facilitate access to basic rights such as water for vulnerable communities through the social infrastructure initiative, which provides access to clean water and sanitation for populations in developing countries.

The Water Policy, also included in the table, addresses the following issues:

• Compliance with current legislation and regulations on water, as well as the specifications of international benchmark standards and those the organization establishes internally, guiding its management to achieve the highest quality standards.
• Support for the development of regulatory frameworks aimed at efficient and sustainable water use.
• Responsible and efficient management of the resource, taking into account its integral cycle, favoring social development and ecosystem conservation. This includes the commitment to reduce water consumption in all areas where Ferrovial operates, including areas with water risk.
• Search for solutions to the growing demand for drinking water and deterioration of quality due to contamination.

In order to minimize the negative IROs identified in the Double Materiality Assessment, the Water Policy already contains several principles to undertake mitigation:

• Responsible and efficient management of the resource, taking into account its integral cycle, favoring social development and ecosystem conservation.
• Integration of water use and water management into the Company’s risk management strategy.
• Establishment of indicators, objectives, monitoring procedures and strategies that enable continuous control and evaluation of the efficient management of the integral water cycle and its responsible use in the Company’s direct operations, optimizing the balance that results in the Group’s water footprint.

In addition, the methodology established for calculating the water footprint enables efficient water resource management in each geographic region, considering the specific water stress level of each country. Locally, both water catchment sources and discharge destinations are evaluated to minimize the environmental impact. In addition, the projects implement local measures aimed at reducing water consumption throughout the life cycle of the infrastructure, promoting its reuse. This includes the adoption of strategies to prevent water pollution during the construction or use phases of buildings and infrastructure. An example of such actions is the installation and securing of devices and mechanisms necessary to guarantee the quality of water that may be affected by activities, such as pollutant retention basins and sediment barriers.

E3 – 2: ACTIONS RELATED TO WATER AND MARINE RESOURCES.

Ferrovial is committed to sustainable practices and responsible management of water resources. The methodology established for calculating the water footprint enables efficient management of water resources in each geographical region, taking into account the level of water stress specific to each country. At the local level, both water catchment sources and discharge destinations are evaluated to minimize the environmental impact. In addition, the projects implement measures to reduce water consumption and promote water reuse. This also includes the adoption of measures to prevent water pollution.

The company has implemented actions to address environmental challenges related to water resources, some of these actions are in high-water stress areas. These main actions are carried out on an ongoing basis depending on the type of project, and some of principal main good practices are detailed below:

Construction activities:

• Use of reused water for the manufacture of concrete in construction sites after purification at a water treatment plant.
• Reuse of water for washing machinery and other uses on site (irrigation of roads, embankments, etc.).
• Reduction in the volume of water consumed in irrigation to reduce the dusting of construction sites due to the use of bischofite.
• Necessary mechanisms to ensure water quality that may be affected by activities, such as pollutant retention basins and sediment barriers.

Cintra:

• Installation of rainwater collection tanks for reusing that water in other processes.

Cadagua:

• Water is reused for pretreatment in water treatment plants.
• Water is reused for maintenance tasks in the facilities such as cleaning and irrigation.
• In relation to the improvement and optimization of water treatment processes, Cadagua, together with its partner, have begun the execution of the expansion and refurbishment works of the Ter Drinking Water Treatment Plant (DWTP), the largest water treatment plant in Catalonia (Spain), with a treatment capacity of 8 cubic meters per second (8 m³/s) and four tanks with capacities up to 557,664 m3. The concession has a budget of 102 million euros and a 48-month execution period. Improvements include the modernization of existing sand filters and the construction of new granular activated carbon filters and water disinfection facilities.
• In addition, various infrastructures will be implemented, such as a tank for filtered water, an intermediate pumping station, an ozonization building and a structure to house the activated carbon filters. All this without altering the normal operation of the plant. The modernization of the Ter DWTP will help to guarantee the supply of water, in quantity and quality, for the metropolitan region of Barcelona and strict compliance with current regulations.

In this contract, Cadagua is implementing an innovation project related to the incorporation of activated carbon and ozonation, which guarantee quality and are focused on improving the sensory qualities of the water and eliminating traces of emerging contaminants such as drugs present in surface waters with an anthropogenic influence.

To ensure the selection of the most effective active carbon for this project, comparative tests will be conducted in the laboratory and in the pilot plant. Adsorption isotherm tests, and tests on rapid filtration columns will be performed to determine the breaking point, as well as tests in a pilot plant to determine the behavior of the different coals under real operating conditions.

These actions are part of Ferrovial’s broader commitment to sustainability and the preservation of the natural environment, aligning with its sustainability strategy and water resource management.

Currently 235 people work in the different Quality and Environment departments of Ferrovial and its subsidiaries, which represents an approximate expenditure of 17.98 million euros.

In the water policy, mention is made of improved efficiency in the use of water resources:

• Support for the development of regulatory frameworks aimed at efficient and sustainable water use.
• Responsible and efficient management of the resource, taking into account its entire integral cycle, favoring social development and ecosystem conservation.
• Establishment of indicators, objectives, monitoring procedures and strategies that enable continuous control and evaluation of the efficient management of the integral water cycle and its responsible use in the Company’s direct operations, optimizing the balance resulting in the Group’s water footprint.
• Support for the development and use of new technologies that allow a more efficient use of water resources.

The water management strategy takes into consideration the water resource in terms of its availability (water stress), quality and the balance of the ecosystems on that it impacts, which is why the policies and actions described previously are applied with the utmost exigency in all the natural environments in which we work.

The calculation methodology described below is Ferrovial’s own and has been developed based on the principles of “The Water Footprint Assessment Manual” (WFM) and the “Global Water Tool” (GWT), two internationally recognized reference tools for calculating the water footprint.

In addition, in those regions and activities where permits are required for surface water or groundwater consumption, these are obtained taking into account the rational joint operation of the resources and, therefore, granting them takes into account the forecasts of water plans.

Ferrovial also established a framework for monitoring the impact of Ferrovial’s value chain on the SDGs. This is an integrated model that considers the joint value of the positive and negative impacts on each of the Goals, with a quantified assessment that allows the Ferrovial Group’s contribution to the 2030 Agenda as a whole to be monitored, linked to the objectives of Ferrovial’s sustainability strategy. This model is certified by an independent external body.

The Water Policy, approved by the Quality and Environment Steering Committee (Q&E Steering Committee), recognizes water as a limited and irreplaceable natural resource, and access to this resource as a fundamental human right. The water management strategy considers its availability, quality and the balance of affected ecosystems.

In its role as a consumer of water and provider of services related to this resource, the Company adopts responsible and efficient management, covering the entire water cycle, from groundwater and surface water to wastewater, promoting both social development and the preservation of ecosystems.

Through its subsidiary Cadagua, the Company plays a key role in water resource management, contributing to resolving the main challenges related to supply, quality, sanitation and contamination, especially in areas with water scarcity. In this regard, the Company is working to implement advanced treatments to eliminate contaminants of emerging concern, as well as antibiotic-resistant bacteria.

Through the Water Treatment Index (WTI), Ferrovial measures the positive impact of the water treatment processes carried out at Cadagua’s treatment plants.

E3 – 3: TARGETS RELATED TO WATER AND MARINE RESOURCES.

To measure the impact of its activities on water resources, the Company has developed its own methodology based on the principles of The Water Footprint Assessment Manual (WFM) and the Global Water Tool (GWT), two internationally recognized references tool calculating the water footprint, and takes into account the water catchment source, assigning different weights depending on its origin, the country’s water stress, and the destination of discharges and their quality depending on the treatment they have undergone.

With the methodology established for calculating the water footprint, it is possible to carry out water management for each geography, since the water stress of each country is taken into account. Locally, the water catchment source and discharge destination are evaluated to minimize the impact on the environment.

The methodology is composed of three indexes:

• Business Water Index (BWI): measures the negative impact that activities produce as a result of water consumption and discharges generated. The KPIs that make up this index are: water consumption by catchment source, the impact factor on the water resource, the volume of discharges, the impact factor on the quality of the discharge and water stress by country.
• Water Treatment Index (WTI): measures the positive impact of the water treatment processes carried out in the treatment plants of Cadagua’s business. The KPIs that make up this index are: the volume of water to be treated in the plants, the impact factor on the water resource, the volume of water treated at the outlet of the treatment plants, the quality of the outlet water and the water stress per country.
• Water Access Index (WAI): determines the positive impact of social action projects aimed at improving access to water and sanitation in vulnerable communities. The KPIs that make up this index are: the volume of water captured, the impact factor on the water resource, the volume of water supplied, the quality of the water supplied and the water access factor per country.

The Company has established the following objectives in relation to its water footprint:

• Reduce BWI by 20% in 2030 (base year 2017). In 2024, a 26.7% reduction was achieved compared to 2017 (+11.5% compared to 2023).
• Annually offset 70 times the BWI (WTI + WAI > 70 BWI). In 2024, 111 times the BWI was offset (143 in 2023).

The established objective of reducing BWI by 20% with respect to 2017 implicitly involves reducing water consumption in Ferrovial’s businesses, as well as discharges, taking into consideration the water stress of the regions in which it operates.

The objective of compensating 70 times the BWI annually (WTI + WAI > 70 BWI), takes into consideration the improvement of water quality as the water access index (BWI) is compensated by the positive impact of the water treatment index (WTI) and the water access index (WAI).

The targets set by Ferrovial have been established on a voluntary basis.

E3 – 4: WATER CONSUMPTION.

To measure the impact of activities on water resources, the Company has developed its own methodology (as explained in previous sections). This methodology takes into account the source of water collection, assigning different weights depending on its origin, the country’s water stress, and the destination of discharges and their quality depending on the treatment they have received. It is composed of three indices:

• Business Water Index (BWI): measures the negative impact that activities produce as a result of water consumption and discharges generated.
• Water Treatment Index (WTI): measures the positive impact of the water treatment processes carried out at Cadagua’s treatment plants.
• Water Access Index (WAI): determines the positive impact of social action projects aimed at improving access to water and sanitation in vulnerable communities.

Water data according to the different sources are obtained directly from the contracts of each of the business lines, using the different existing reporting tools (given the variability of the type existing activities). The data are consolidated at corporate level with the water footprint tool used to prepare this report.

For reporting purposes, operational control is considered as an organizational boundary. Under this approach a Company accounts for data from those sources over which it has full authority to introduce and implement its operational policies, regardless of its shareholding in the Company in question.