Strategy

We monitor external trends and developments, adjusting our focus and activities in response. Climate change was clearly seen in increasing incidence of extreme weather and wildfires in 2023. Demand for services in the areas of climate resilience and decarbonisation is accelerating. There is more awareness of the important role biodiversity plays in resilience. It brings with it an increased sense of urgency over the biodiversity challenge. While political positions on climate change have shifted in some countries, they are balanced by commitments made to international treaties. The economic outlook, which appeared to be stabilising, faces risks from geopolitical developments such as the wars in Ukraine and Gaza. Labour scarcity constrains growth and creates upward wage pressures in some markets. High inflation places additional pressures on the cost of doing business. Digital possibilities continue to present opportunities and threats. These, in combination with customer demands for more integrated services, drive further consolidation and changes in the competitor landscape. In the Netherlands, nitrogen legislation remains a challenge for construction. It delays investments while also offering opportunities for additional services.

We made good progress on executing our Stronger25 strategy in 2023. The hard work and dedication of our people have delivered strong growth and profitability in line with our ambitions. For 2023, we focused on four key strategic goals: people first, embed Enhancing Society Together, grow in selected markets and grow the EBITA margin. On people first, we achieved a high degree of employee engagement: 80% of all employees feel enthusiastic and dedicated towards their job. We made our Enhancing Society Together purpose more tangible by starting to assess projects and proposals using our Purpose Matrix. Company-wide, we achieved positive impact across all 5 Enhancing Society Together themes. Our strategic focus on growth in our nine Global Leading Markets and the Netherlands led to an increase in operating income of 5%. To grow the EBITA margin, we maintained cost levels while growing our operating income.

Our strategy Stronger25