ESRS S3 AFFECTED COMMUNITIES (COMMUNITY RELATIONS & HUMAN RIGHTS)

SBM – 2: INTERESTS AND VIEWS OF STAKEHOLDERS

Ferrovial actively integrates the opinions, interests and rights of affected groups, including local communities and respect for human rights, into its strategy and business model. This approach seeks to mitigate negative impacts and maximize the social benefits of its activities, ensuring that strategic decisions reflect a solid commitment to sustainable development and social responsibility.

Integration of the Opinions and Rights of Affected Groups

1. Commitment to Local Communities:

• Local communities are fundamental to Ferrovial’s social commitment. In each project, the groups impacted are identified and communication channels are established to keep them informed about key aspects of the infrastructures (schedules, objectives, effects, et) and to gather their needs and opinions.

2. Human Rights Risk Management:

• The risk management system includes the assessment of potential human rights impacts.
• There were no relevant incidents related to human rights or projects affecting indigenous communities in recent years.

Adaptation of Strategy and Business Model for Material Impacts

Ferrovial continuously analyzes and adapts its strategy and business model to address the possible material impacts that its activities may generate, aggravate or mitigate on affected groups.

1. Creation and Aggravation of Impacts:

• Construction and operation activities:
  • Infrastructure projects, such as roads and transportation systems, can cause temporary annoyances, such as noise and road closures.
  • Mitigation: Environmental and social management plans are implemented, including controlled work schedules and alternative routes.
• Human rights impacts:
  • Activities in vulnerable areas may exacerbate inequalities or social tensions.
  • Mitigation: International standards are integrated, ensuring prior consultation with affected communities and adequate compensation.

2. Mitigation Measures and Benefits Generated:

• Reduction of inequalities:
  • Ferrovial develops social projects focused on education, the fight against hunger and respect for cultural rights.
  • Example: Local procurement policies that create employment and promote inclusive development.
• Improvement of living conditions:
  • Ferrovial’s infrastructures improve road safety, decongest cities and guarantee access to essential services such as drinking water.
  • Example: Transportation projects that facilitate urban mobility, improving the quality of life in densely populated communities.

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

Material Issues, Risks, Opportunities and their Interaction with Strategy and Business Model

Relationship between Material Risks and Opportunities with Strategy and Business Model

Ferrovial recognizes that the risks and opportunities arising from its impacts and dependencies on the affected communities are intrinsically linked to its strategy and business model. This relationship is detailed below:

Risks

1. Dissatisfaction of Local Communities

• Description: Construction activities can cause annoyances such as noise, road closures, and other negative temporary impacts.
• Strategic Relationship: These risks are directly related to Ferrovial’s business model, focused on large-scale infrastructure projects. Inadequate management could deteriorate relations with communities and put the license to operate at risk.

• Mitigation: Communication and public consultation strategies to minimize disturbance.

2. Reputational Risk

• Description: Incidents involving negative social or cultural impacts can damage corporate reputation and public trust.
• Strategic Relationship: Upholding a good corporate image is crucial for operating in local markets and attracting new projects.
• Mitigation: Social action projects and transparent communication to strengthen trust.

3. Dependence on Community Acceptance

• Description: The acceptance and collaboration of local communities are essential for project development and operation.
• Strategic Relationship: The license to operate depends to a large extent on the relationship with the affected groups.
• Mitigation: Promotion of local procurement and community integration in project design.

Opportunities

1. Reduction of Inequalities

• Description: Social projects focused on education, research and the fight against hunger improve the situation of vulnerable groups.
• Strategic Relationship: Projects with a positive social impact strengthen Ferrovial’s leadership position in sustainability.
• Example: Collaboration with local communities to implement educational and social projects.

2. Improvement of Living Conditions

• Description: Ferrovial’s infrastructure projects generate benefits such as accident reduction, urban decongestion and access to drinking water.
• Strategic Relationship: The business model includes the construction of functional infrastructure that improves the social and environmental surroundings.
• Example: Projects that ensure predictable travel times and access to basic services.

3. Strengthening Reputation

• Description: Good relationship management with local communities enhances reputation and consolidates presence in local markets.
• Strategic Relationship: The strategy includes actions that strengthen trust in the Company and its image.
• Example: Participation in community initiatives that reflect Ferrovial’s social commitment.

4. Talent Attraction and Retention

• Description: Employee participation in social projects reinforces their commitment and generates pride of belonging.
• Strategic Relationship: The strategy encourages the active participation of employees in social activities, aligning their personal motivation with corporate objectives.
• Example: Volunteer programs linked to local educational and social initiatives.

Attention to Affected Groups and Material Adverse Incidents

1. Affected Groups in the Value Chain

• Ferrovial’s activities affect groups close to construction sites and along the value chain, including suppliers and logistics operators.
• Social programs focus on vulnerable groups to promote inclusive development.
• Example: The Tolling Equity program on I-77 ensures equitable access to infrastructure for disadvantaged groups.

2. Material Adverse Incident Management

• In recent years, no significant negative or systemic impacts on communities were identified. Minor impacts, such as noise or traffic disruptions, are managed with adapted mitigation plans.
• Ferrovial develops procedures to document and manage these impacts.

3. Positive Material Overflows

• Ferrovial generates significant positive impacts in local communities through its community investment strategy.
• Example: The Social Infrastructure program improved access to water for more than 336,000 people in 12 countries.

Community Investment and Value Creation

Ferrovial’s community investments are aligned with the Sustainable Development Goals (SDGs) and seek equitable development. In 2024, 8,1 million euros were invested, including 3.9 million in monetary contributions and 17,215 volunteer hours. Main initiatives:

1. Basic Infrastructure for Disadvantaged Communities:

• Projects that facilitate access to water, sanitation and food.

2. Access to Education:

• Educational programs with an emphasis on fostering STEM vocations, especially in girls.

3. Response to Social Emergencies:

• Support for food banks, health care and disaster response.

Measuring Social Impact

Ferrovial applies the SROI (Social Return on Investment) methodology to quantify social impacts. Key results:

• Return of 10.8 euros for every euro invested.
• Reduction of water-related diseases by up to 62%.
• Savings of more than 1 million hours per year in communities by improving access to water.

This systematic approach reinforces Ferrovial’s commitment to operational excellence, community involvement and sustainable value creation. Let me know if you need more information or adjustments!

Ferrovial is actively working on a procedure to identify and understand the specific characteristics of affected groups in areas near its construction sites. This procedure aims to systematically assess how certain groups living in particular settings or engaging in specific activities may face higher risks of negative impacts. Additionally, factors such as social, economic, or environmental vulnerability are considered to prioritize mitigation actions and promote the well-being of these groups.

S3 – 1: POLICIES RELATED TO AFFECTED GROUPS

Although Ferrovial already has a Human Rights Policy (see Human Rights Policy table in (ESRS S1, S1-1) which addresses the management of its impacts, risks and opportunities related to the affected communities. Ferrovial ensures compliance with local laws and respect for the rights, culture, customs and values of people in local communities and minorities potentially affected by the execution of its activities, paying special attention to vulnerable populations, such as migrants. In order to ensure respect for the rights of communities that may be affected by Ferrovial’s activities and strengthen the due diligence process conducted by Ferrovial in order to identify, prevent or mitigate any risk associated with local communities or affected groups, Ferrovial is developing a procedure for relations with local communities that standardizes the information available regarding relations with local communities in the different projects carried out by the Company and the infrastructure it manages.

The procedure establishes as a first step the analysis of the communities affected by the project or work, and the creation of a map of interest groups, defining their specific characteristics, paying special attention to those groups that may be more vulnerable or exposed to a greater risk of suffering damage or marginalized neighborhoods with a special mention if there are indigenous peoples among the affected groups.

In addition to the existing corporate channels described in the Stakeholder Engagement and Relationship Policy, the Company has -either directly or through the owner of the asset- the necessary channels to facilitate dialogue with the affected communities so that they can express their concerns, doubts or needs. Among these means are complaint mechanisms, hotlines, meetings, or other means appropriate to the reality of the project. The Company is committed to carrying out the necessary actions to make these channels known to the affected communities so that they are accessible and to ensure that the dialogue is established through legitimate and credible representatives. Ferrovial assesses whether there is any relevant impact related to the human rights of the affected community. In the event that any relevant risk is identified for any group within the affected community, it will be made public along with the mitigation and remediation measures adopted.

As a result of the dialogue with the affected communities and local authorities, incidents and nuisances that may arise from the execution of the project or work are identified. The Company will report these incidents detected and will provide the necessary measures to minimize their impact, establish objectives, and monitor them and the results achieved in coordination with the interested parties.

The proposed procedure takes a step toward greater transparency by facilitating a common model for collecting all this information for publication.

The Company also contributes to the development of social projects that support these communities, thus ensuring responsible and sustainable management of its impact on the environment. This integration of policies ensures that Ferrovial addresses community-related challenges coherently and effectively, in line with its commitments to respect and promote human rights.

Ferrovial respects and recognizes the rights of indigenous, tribal, and native peoples, in accordance with current legislation and ILO Conventions 107 and 169. Ferrovial is also committed to minimizing the environmental impact of its operations in the communities that may be affected, following a preventive approach that responds to current environmental challenges, such as the proper management of water resources or the supplying of sustainable  products.

Furthermore, Ferrovial aligns its human rights commitments with the United Nations Guiding Principles on Business and Human Rights, ensuring that its activities respect and uphold these principles throughout its value chain. The Company integrates human rights due diligence processes to identify, prevent, and mitigate potential adverse impacts on affected communities.

Ferrovial also has grievance mechanisms in place to allow stakeholders to report concerns related to human rights violations. To date, no cases of non-compliance with the UNGPs have been reported in relation to Ferrovial’s activities. However, the company remains vigilant and continuously monitors its operations to ensure alignment with international standards and best practices in human rights protection.

In order to reinforce this commitment, the procedure for relations with local communities that is being developed pays special attention to preventing any impact on indigenous, tribal and native peoples.

During the financial years 2023 and 2024, no cases of violation of the rights of indigenous peoples were detected.

S3 – 2: PROCESSES FOR COLLABORATING WITH AFFECTED COMMUNITIES ABOUT IMPACTS

General Collaboration with Affected Groups

Ferrovial has systematic processes in place to interact with affected communities or their representatives. This includes the implementation of environmental impact studies prior to the start of projects and the establishment of specific communication channels for each project. These channels collect suggestions, complaints or reports from affected groups and enable a two-way dialogue that begins before the construction phases and is maintained throughout the project’s life cycle.

Stakeholder Perspectives on Impact Management

a. Direct Collaboration:
Ferrovial establishes dialogues with local communities, their legitimate representatives or credible spokespersons. In particular, specific channels are created for each project to facilitate communication with affected groups. In addition, biannual consultation as part of the materiality study ensures that the perspectives of all stakeholders are included.

b. Phases and Types of Collaboration:
Interaction takes place in all phases of the project, starting before construction. The frequency and type of communication depends on the characteristics of each project. Collaboration includes public consultations, informational meetings, and collection of community input through accessible channels.

c. Responsible Function:
Operational responsibility for ensuring that these interactions are actually done rests with the local teams at each site, supported by the Sustainability Department and the Compliance Officer. The latter reports periodically to senior management on the results and improvements required.

d. Efficiency Assessment:
Ferrovial uses the internationally recognized B4SI-LBG methodology to measure the impact of its actions in the community.

The B4SI-LBG (Business for Societal Impact – London Benchmarking Group) methodology is an internationally recognized standard that provides a structured framework for measuring and managing a company’s contributions to society. It classifies corporate contributions by breaking them down into community investments, charitable donations, and socially impactful business initiatives, each with specific indicators to evaluate their impact. This methodology promotes transparency, comparability, and strategic alignment with business objectives, enhancing a company’s reputation for measurable social impact.

Ferrovial implements this methodology by selecting strategic and social projects, using key indicators to measure inputs, activities, and outcomes, and analyzing results to improve and report on their sustainability impact.

In addition, each project monitors and documents the dialogue actions carried out with the communities.

Measures for Vulnerable and Marginalized Groups

Ferrovial focuses on inclusive development through social programs aimed at vulnerable groups. Initiatives include:

• Basic infrastructure: Access to drinking water, food and health services.
• Education: Promotion of STEM vocations with emphasis on girls and disadvantaged groups.
• Social emergencies: Responding to humanitarian crises with employee support.

The procedure under development prioritizes identifying vulnerable groups in project areas and adopting measures to maximize positive impacts for them.

Respect for the Rights of Indigenous Peoples

Ferrovial respects and recognizes the rights of indigenous, tribal and native peoples in accordance with current legislation and ILO Conventions 107 and 169. Although no activities involving these peoples have been detected in recent years, the procedure under development for relations with local communities includes specific measures to prevent any negative impact on their cultural, territorial, religious and intellectual rights.

These measures include:

• Cultural Sensitivity Training: Providing training for employees and contractors to ensure they understand and respect the cultural practices and traditions of indigenous communities.
• Consultation and Consent: Engaging in meaningful consultation with indigenous communities to obtain their free, prior, and informed consent before initiating any projects that may affect their lands or rights.
• Impact Assessments: Conducting thorough social and environmental impact assessments to identify potential risks to indigenous rights and implementing mitigation strategies to address these risks.
• Monitoring and Reporting: Establishing mechanisms for ongoing monitoring and reporting of the impact of projects on indigenous communities to ensure compliance with human rights standards.
• Grievance Mechanisms: Providing accessible and effective grievance mechanisms for indigenous communities to raise concerns and seek redress for any negative impacts.

In future projects, Ferrovial guarantees that the right to free, prior and informed consultation of these peoples will be respected in activities that affect their lands, territories or cultural assets.

S3 – 3: PROCESSES TO REMEDIATE NEGATIVE IMPACTS AND CHANNELS FOR AFFECTED COMMUNITIES TO RAISE CONCERNS

Ferrovial maintains a strong commitment to its stakeholders, establishing effective communication channels and procedures to remedy any adverse impacts arising from its activities. This approach ensures that affected communities can express their concerns and that the Company responds in a transparent and responsible manner.

Communication Channels with Affected Groups

Ferrovial has multiple channels adapted to the needs of local communities and the particularities of each project. These include:

• Ethic Channel: A confidential and accessible means for employees and stakeholders to report concerns, complaints or incidents securely.
• Website and Corporate Mailboxes: Facilitate access to information and direct contact with the Company.
• Ferrovial App: A digital platform that offers updated information in Spanish and English.
• Social Networks: Ferrovial uses platforms such as X (formerly Twitter), Facebook, LinkedIn, Instagram and others to disseminate information of interest and encourage dialogue with different audiences.
• Project Specific Channels: Each work or concession establishes specific means, such as hotlines, community meetings and grievance mechanisms, ensuring that they are accessible and tailored to local needs.

The Company takes measures to ensure that the communities are aware of these channels, using tools such as posters, information meetings and social media. It also ensures that the representatives of the affected groups are legitimate and trustworthy, facilitating a transparent dialogue. To further build trust, Ferrovial engages in continuous and proactive communication with community members, ensuring they are well-informed abEach project involves a financial contribution of €150,000 and tout the available channels for raising concerns. The Company also conducts regular surveys and feedback sessions to gauge the effectiveness of these channels and to understand the community’s perception of their reliability.

Impact Remediation and Effectiveness Evaluation

If significant adverse impacts are identified, Ferrovial implements a structured approach to remediation. This includes:

• Incident Identification: Through the aforementioned channels, the Company receives and manages concerns related to nuisances such as noise, dust, or traffic disruptions.
• Corrective Measures: In coordination with the affected communities and local authorities, specific actions are implemented to mitigate impacts.
• Monitoring and Evaluation: The effectiveness of measures is regularly evaluated, ensuring that solutions are appropriate and generate positive results.

Ferrovial tracks and monitors issues raised through its grievance mechanisms and community engagement processes. These channels are designed to be accessible and responsive, allowing for timely identification and resolution of concerns. The Company uses key performance indicators (KPIs) to measure the effectiveness of its responses and the satisfaction of the affected communities. Also, regular audits and reviews are conducted to ensure compliance with human rights standards and to identify areas for improvement.

Ferrovial is developing a procedure for relations with local communities that standardizes public information on these incidents and the measures adopted, promoting transparency and continuous improvement. This procedure includes detailed reporting on the nature of the incidents, the steps taken to address them, and the outcomes achieved. By maintaining open communication and regularly updating stakeholders, Ferrovial ensures that its channels for addressing community concerns are effective and trustworthy. Additionally, while there is no specific policy regarding protection against retaliation for individuals who use these channels to raise concerns or needs, the Ethics Channel ensur that no related issues arise.

Supporting Channel Availability in Business Relationships

The Company also ensures that these channels are available through its business relationships. This includes:

• Collaboration with Asset Owners: In projects operated by third parties, Ferrovial works to ensure that adequate means are established to facilitate dialogue with communities.
• Proactive Coordination: Incidents are identified and addressed in real time, promoting fluid communication with all stakeholders.
• Information Dissemination: Ferrovial uses tools such as social media, meetings and other means to inform communities about the existence of these channels.

Examples of Decisions Based on Stakeholder Perspectives

The commitment to the communities is reflected in specific actions developed in response to their concerns. For example:

• Local Impact Management: In infrastructure projects, a two-way dialogue is promoted, which start before construction begins, ensuring the inclusion of community voices at each stage of the project.
• Tailoring Solutions: Measures implemented to mitigate nuisances such as noise and traffic are designed in collaboration with communities, ensuring that they respond to their specific needs.

S3 – 4: TAKING ACTION ON MATERIAL IMPACTS ON AFFECTED COMMUNITIES, AND APPROACHES TO MANAGING MATERIAL RISKS AND PURSUING MATERIAL OPPORTUNITIES RELATED TO AFFECTED COMMUNITIES, AND EFFECTIVENESS OF THOSE ACTIONS

Ferrovial establishes specific measures to manage impacts on local communities and promote positive effects in them. The Company conducts environmental and social impact studies prior to the execution of projects, ensuring a two-way dialogue with the affected communities to notify them of possible implications and collect suggestions through channels such as the Ethics Channel. To mitigate negative impacts, Ferrovial implements actions such as programs for access to basic infrastructure and education, highlighting its commitment to specific social projects such as Juntos Sumamos, which since 2005 has supported 47 projects with more than 2 million euros invested, benefiting the welfare of the elderly and the fight against child malnutrition.

Regarding these studies, in April 2024, a procedure was approved to prevent participation in projects that might affect protected areas. The Company also established a Human Rights Due Diligence procedure to analyze potential risks and prevent undesirable impacts. A pending procedure for managing social impacts on communities affected by construction projects or company assets was also developed.

All internal procedures and policies have a global scope. Environmental impact analyses are conduced before starting a project, as is the go/no-go decision process. Risk analyses for each project or asset are conducted every six months and reported to senior management. The social impact procedure requires compliance within the first six months of a project and its implementation throughout the project’s execution.

Corrective measures are included in the social impact procedure to mitigate undesired impacts on communities, such as noise and dust. Further details can be found in the attached procedures. This type of information arises during the risk analysis conducted every six months and is specific to each managed project or asset.

Financial information related to these actions is included in project budgets but is not detailed separately. Currently, there is no additional data available regarding the allocation of financial resources to these initiatives.

At the moment Ferrovial is working on the approval of a procedure for dialogue with affected communities, which should be approved before the end of 2025. The procedures’ expected outcome is to guarantee respect for human rights in those communities which might be affected by Ferrovial’s activities by creating an action plan which follows these steps:

Firstly, affected communities are identified in all of Ferrovial’s projects with a scope greater than 50 million euros, or any project which has caused a relevant social risk to emerge. Once the stakeholders have been identified through a mapping process, which identifies their specific characteristics, special importance is given to the more vulnerable, and where indigenous groups will be highlighted.

Then Ferrovial will establish the necessary channels to facilitate dialogue with the affected communities, making it easy for them to express their uncertainties, doubts, or needs. Within these channels we can find direct lines, meetings, and others identified as necessary.

Once the impacts and/or needs are identified Ferrovial will carry out three procedures:

1. Evaluate whether there are significant impacts related to the human rights of the affected communities. If identified, they will be made public with the necessary measures put in place in order to mitigate or repair the impacts.
2. As a result of the dialogue with the affected communities and local authorities, potential incidents or disturbances will be identified, and the necessary measures will be put in place in order to minimize their impacts. Establishing objectives, reviewing how progress is made and the results. Coordinating the whole process hand in hand with the interested parties.
3. Ferrovial is also committed to creating a positive impact in those places where it works. The Company is committed to analyzing and identifying potential opportunities with the aim of implementing them. Where possible Ferrovial will adopt measures that complement the region’s activities to increase the benefits of the affected communities.

The Construction Manager or person responsible for the asset will be in charge of collecting the information previously identified in order to facilitate monitoring of the measures taken, and following the time horizon which will be determined for each project depending on the different needs. The information collected will be forwarded to the Communications and CSR departments. Ferrovial is committed to sharing information about this procedure on its website and on the channels it deems necessary.

In addition to these measures, Ferrovial addresses material incidents, risks, and opportunities related to local communities through a set of structured actions aimed at both mitigating negative impacts and promoting positive ones. These actions include:

• Community Engagement Plans: Developing and implementing comprehensive plans that outline how the Company will interact with local communities throughout the project lifecycle, ensuring their concerns are addressed.
• Risk Management: Identifying and assessing potential risks to communities early in the project planning stages and integrating risk management strategies to prevent adverse impacts. Specific risks, such as noise or traffic disruptions during construction, are managed with tailored mitigation measures, such as adjusting work schedules or providing clear notifications about traffic cuts.
• Capacity Building: Investing in initiatives that enhance the resilience and self-sufficiency of local communities, including training programs, employment opportunities, and access to critical resources like water and education.
• Independent Audits: Conducting independent audits and assessments to verify compliance with human rights standards and to ensure that mitigation measures are effectively implemented.

For capacity building, Ferrovial established a global community investment strategy under the initiative “On the Move for People,” encompassing corporate global projects and actions tailored to the communities surrounding its assets and operations, this initiative, together with the aforementioned actions, are planned and executed on an annual basis, with periodic impact assessments. These efforts focus on key strategic pillars, such as infrastructure development to meet the basic needs of vulnerable groups. For example:

• On the Move for Water: Annually funds three projects in developing countries across Africa, Latin America, and India to ensure access to water. Each project involves a financial contribution of €150,000 and the participation of a team of experts to support the social organization implementing the project on the ground.

• On the Move for Zero Hunger: Focuses on refurbishing soup kitchens in Spain and collaborating with food banks and social dining services in the United States, selected for their proximity to Ferrovial’s assets.
• On the Move for Education: Promotes access to education, with a particular focus on STEM-related fields. Activities are carried out in Spain, the S., and the U.K. in collaboration with local education-related organizations.

An essential aspect of Ferrovial’s commitment is empowering employees to be protagonists of these initiatives. Through On the Move Together, programs like “Juntos Sumamos” in Spain and “Charity of the Year” in the U.K. involve employees actively. In 2024, 2,929 employees participated in volunteer activities, demonstrating the Company’s dedication to community engagement.

Community investment activities are carried out across all geographies where Ferrovial operates, extending to developing nations. In 2024, projects were supported in Australia, Canada, India, Peru, Poland, Colombia, the United States, Spain, the U.K., Portugal, Sierra Leone, Togo, Sudan, Rwanda, and Zimbabwe.

Programs are designed as long-term strategies. For instance, “Juntos Sumamos” has been in place since 2005, and “On the Move for Water” since 2011. While specific projects are selected and executed annually, these initiatives demonstrate the Company’s sustained commitment to global community development.

To quantify the social contributions, impacts, and beneficiaries, Ferrovial adheres to the LBG-B4SI methodology. In 2024, this approach facilitated 498 community support initiatives, benefiting 551 organizations and 207,351 people.

Financially, Ferrovial invested €7.3 million in community initiatives in 2024, comprising €3.9 million in monetary contributions, €0.8 million in employee hours, €2.4 million in in-kind contributions, and €0.2 million in administrative costs.

For upcoming years, Ferrovial has not established a global investment commitment but continues to support specific programs, such as:

• €500,000 for water access projects.
• €100,000 for social dining projects.
• Matching employee donations in “Juntos Sumamos” and in the United States, approximately €50,000 in each region.

Overall, excluding emergency responses, the annual community investment remains stable between €4 and €5 million. This comprehensive approach reflects Ferrovial’s dedication to enhancing the resilience and self-sufficiency of local communities through training programs, employment opportunities, and improved access to essential resources like water and education.

As mentioned, Ferrovial is working on setting up a process to gather all the necessary information and keep ongoing conversations with the affected communities. In the meantime, Ferrovial has ensured this dialogue through the presence of dedicated stalls at project sites, where inquiries, complaints, and suggestions are collected. Additionally, local communities help collect CVs for unskilled jobs, which supports the sustainability of the projects and encourages local participation. Additionally, all requisite communication channels, tailored to the various activities undertaken, have been established to facilitate effective communication between the local community and Ferrovial.

To strengthen these efforts, Ferrovial also undertakes targeted initiatives aimed at generating long-term positive impacts. These include programs designed to improve access to drinking water and infrastructure that support food security, such as social kitchens, with over 1 million euros invested in these efforts. Furthermore, the Company prioritizes local procurement to stimulate the economies of surrounding communities, integrates social and environmental considerations into its supply chain, and promotes projects that reduce inequalities, such as those measured under the B4SI-LBG methodology.

Ferrovial ensures that its actions align with its broader sustainability strategy by maintaining active engagement with communities, consulting them through biennial materiality studies, and evaluating the effectiveness of these initiatives with measurable indicators. Ferrovial used social return on investment (SROI) indicators to measure the impacts in the regions where it works. This methodology contains around 100 different indicators, which are selected depending on the construction and which are most suitable for portraying the impact of Ferrovial in the region. The information is gathered before the beginning of the project, 1 year later, and 2 years later, this way ensuring that all impacts are correctly registered. Ferrovial has calculated that throughout the years it has had a return on investment of 10 euros for every euro invested in the project. These efforts not only mitigate potential risks but also generate significant opportunities, such as fostering local economic growth and improving living conditions.

In recent years, no significant negative or systemic impacts on communities have been identified, nor have there been reports of serious issues or human rights violations affecting these groups. To proactively address potential negative impacts, Ferrovial implements various initiatives tailored to the diverse range of possible effects its activities may have. Due to the high variety of activities that Ferrovial executes, a different action plan is implemented for the different impacts identified. All projects ensure communication with affected communities through activities previously mentioned to identify these impacts, however these are resolved depending on each case. One such example is the construction of the Thames Tideway Tunnel, where to minimize noise pollution and disturbances for local residents, construction was deliberately halted at 6 p.m., effectively reducing the impact. Ferrovial remains committed to continuous improvement and delivering measurable, long-term results, fostering sustainable development in local communities while strengthening its relationships with them.

S3 – 5: TARGETS RELATED TO MANAGING MATERIAL NEGATIVE IMPACTS, ADVANCING POSITIVE IMPACTS AND MANAGING MATERIAL RISKS AND OPPORTUNITIES

Ferrovial continuously assesses the impact and effectiveness of its sustainability goals and initiatives through internal evaluations and engagement with stakeholders, including local communities. While the company does not have a formalized process for direct collaboration with local communities to identify lessons learned or areas for improvement, it incorporates best practices, insights from industry benchmarks, regulatory developments, and ongoing dialogue with key stakeholders. This approach ensures continuous improvement of its strategies while maintaining a responsible and sustainable business model.

Furthermore, Ferrovial’s understanding of its communities relations along with the tools available to the company, ensures more efficient and sustainable management.

As of now, no significant updates or trends in performance toward this target have been disclosed. However, within the framework of the 2030 Sustainability Strategy and its alignment with the CSRD Directive, establishes specific and time-bound objectives to reduce negative impacts on affected communities and promote positive effects for them. In terms of promoting positive impacts, Ferrovial highlights social investment initiatives, such as drinking water and sanitation programs, which have benefited more than 336,000 people in vulnerable communities. With regard to risk and opportunity management, the Company conducts periodic evaluations, identifying and managing ESG risks through robust governance processes and risk analysis tools. To establish these objectives, Ferrovial actively collaborates with affected groups, legitimate representatives and sustainability experts, ensuring participatory processes in the definition, monitoring and improvement of goals, which allows for continuous adjustment based on lessons learned. Ferrovial is carrying out a procedure for relations with local communities that will be reported this coming year 2025, as a sign of the first step of this progress in relation to the establishment of goals with local communities. The results are broken down in detail in terms of impact on the affected communities, ensuring their specificity, temporal stability and comparability, supported by global standards such  as the UN Global Compact, the GRI Standards and the EU Taxonomy.