Measuring social impact

Ferrovial has implemented the methodology of the London Benchmarking Group (LBG) which determines the contribution to the Community, including the financial contribution and contribution of time and in kind as well as company management costs in projects as a whole and savings for the government in terms of aid. The methodology also reflects the performance, benefits and long-term impact of these projects both in the community and in the company itself. LBG is a methodology that was created in 1994 in the United Kingdom by The Corporate Citizenship Company together with six other British companies. At present, more than 180 companies all over the world manage and report their activities in the community following the LBG model.

Investment in the community

In 2007, commitment with the Community came in the form of voluntary contributions of 6.6 million euro in 456 projects for improving the social, economic or cultural welfare of the communities in which it operates. This figure does not include contributions to 9 social projects derived from concession contracts, the amount of which came to 10.1 million euro. Adding the two items together (voluntary and obligatory contributions), Ferrovial's contribution to the Community has reached 16.7 million euro, 0.54% of the EBITDA through 463 projects. The contents of the section below refer exclusively to voluntary contributions.

Ferrovial distinguishes between three types of social projects:

  • Strategic investments in the Community. These are projects that form part of the company's corporate responsibility strategy, which are stable in the medium term and take place through close collaboration with tertiary sector organisations.

  • Sponsorship: projects that form part of the company's commercial strategy and that have a direct return on image.

  • Ocasional donations or charitable donations made on the basis of an external one-off request.

To determine the strategic nature of the projects, Ferrovial has developed an assessment process that takes the following aspects into account:

  • List of projects with the Corporate Responsibility Strategy. During 2007, Ferrovial has prepared a plan called "From  Responsibility to Commitment" for 2008-2010 which, as well as reinforcing its commitment with its interest groups through the 10 Global Impact principles, deepens the company's social commitment concerning a series of areas for action:

    • Encourage investment in projects with a high local impact on the Community. Projects will be especially directed towards integration and social welfare and priority groups for action were determined as people at risk of exclusion and immigrants, people with disability and the elderly.

    • Make a commitment to the Planet through the Millennium Development Goals (MDGs). These goals are the reference framework for all projects for cooperation in environmental development and protection in which Ferrovial is involved.

  • Project continuity.  Ferrovial tries to form medium and long term partnerships for this with third sector organisations with an outstanding reputation and transparency that are also committed to developing the projects. These projects must be sustainable in themselves within a reasonable period so as not to generate dependency in the community on Ferrovial aid. This strategic partnership policy has allowed Ferrovial to leverage funds to ongoing social projects in the sum of 2.4 million euro.

  • Encourage employee participation in the company's social commitments. During 2007, 2,400 employees took part in investment in the community projects (2.3% of the workforce) with a minimum dedication of four working hours. In total, employees dedicated 5,957 of their working hours to the Community (which is a contribution of 115,699 euro, taking into account the economic assessment of the different jobs and companies). Ferrovial intends to significantly promote this method of contribution during 2008.

     Investment in the community

Ferrovial's aim is to promote strategic investment in the Community without excluding ocasional donations and sponsorship, which also have value for the company from a commercial point of view. In 2007, strategic social investment projects involved 79% of the total contributions made by Ferrovial to the Community, compared with ocasional donations and charitable contributions (18%), or sponsorship related to social or cultural causes (3%).