JULIUS BERGER NIGERIA : SUSTAINABILITY REPORT 2022

ENABLING PROGRESS EXPANDING IMPACT

2022 SUSTAINABILITY REPORT

CONTENTS

Introduction	1
Chairman's Statement	5
Managing Director's Statement	7
2022 Sustainability Impact Highlights	9
Company Overview	11
Julius Berger at a Glance	13
Governance	21
Building for the Future
Our Sustainable Commitments	23
Environmental Stewardship	41
Our Communities	43
Social Responsibility	73
Creating Value in Our Society	55
Health & Safety at JBN	73
Developing Our Human Capital Assets	75
Glossary	81

INTRODUCTION

3

4

CHAIRMAN'S STATEMENT

Sustainability is pivotal to our business - our commitment to which is evidenced by this report. We will continue to place sustainability at the heart of our business strategy, with a focus on the environmental, social and governance factors material to our business and stakeholders. As you read on, you will find we are unwavering in our compliance with leading global and local sustainability standards, and we are dedicated to safeguarding the well- being of present and future generations, as evidenced by our contributions to sustainable development in the economy in which we operate.

As part of our contributions to sustainable development, Julius Berger Nigeria Plc has achieved following:

highly esteemed stakeholders across our value chain.

We remain optimistic about the prospects for Julius Berger Nigeria Plc and its subsidiaries. The construction industry is poised for continued growth, driven by urbanisation, sustainable infrastructure development and technological advancements. Our Group is well-positioned to leverage these opportunities to sustainably strengthen our market position, while enabling progress for all in our sphere of impact. Our focus will be on expanding our client base, forging strategic partnerships, and continuously improving our operational efficiency and service offerings. We will remain vigilant in monitoring market trends, embracing innovations, and adapting to the evolving

We at Julius Berger Nigeria Plc and its subsidiaries ('the Group') are delighted to share our 2022 Sustainability Report with you; it provides a comprehensive overview of our performance, achievements and future ambitions in light of our enhanced operational performance and sustainability endeavours within the year under review.

Nigeria's construction sector is estimated to have grown by 5.7% in 2022,1 with much of this growth happening during the first three quarters of the year. This increase can be attributed to some impactful developments in the economy (including the adoption of the Petroleum Industry Act and the implementation of the Nigerian Finance Act) and in view of the General Elections, which have historically increased both government and individual spending.

In line with our growth strategy, we have made significant strides in expanding our market presence and diversifying our project portfolio. We have successfully ventured into emerging sectors, such as the agro- processing sector, thereby broadening our revenue streams and stimulating value creation in Nigeria's economy. This strategic expansion not only strengthens our competitive position but also positions us to capitalise on emerging opportunities. With an objective of making a positive impact by transforming challenges into tangible opportunities, across our Group, we have fostered cross-industry innovation, collaboration and strategic alliances to achieve our current progress on our journey to building an enduring, sustainable brand.

• became a signatory to the United Nations Global Compact (UNGC);
• remained committed to corporate social responsibility (CSR), through donations and community development initiatives;
• became a member of the Sustainable Nut Initiative (SNI);
• created a sustainability office to oversee sustainability for the business and its subsidiaries;
• integrated CSR into our sustainability strategy; and
• published our third sustainability report with reference to the Global Reporting Initiative (GRI) standards.

We have witnessed various global disruptions in the past two years, which are unprecedented. Such rapid changes and uncharted circumstances have been extremely challenging, yet we are emerging as a stronger, ever-improving organisation, with new experiences and solutions that reinforce our capacity to deliver value to our

needs of both people and the planet. Meanwhile, we will ensure our sustainability goals and targets remain aligned with the core sustainability principles of both the United Nations (UN) Sustainable Development Goals (SDGs) and the UN Global Compacts.

I would like to express my gratitude to our dedicated team members, clients, partners and shareholders for their unwavering support throughout the year. It is through their hard work, commitment and collaborative efforts that we have been able to navigate the challenges

Thank you.

Mr. Mutiu Sunmonu, CON

Chairman

5	1 - "Nigeria - Construction Sector." International Trade Administration Trade.gov, June 5, 2023.	6
	https://www.trade.gov/country-commercial-guides/nigeria-construction-sector.

MANAGING DIRECTOR'S STATEMENT

As the foremost provider of innovative con-	Our ability to adapt swiftly to market dynam-
struction solutions and related services in	ics - coupled with our robust man power,
Nigeria, we at Julius Berger Nigeria Plc rec-	machine power and governance structures -
ognise our role and responsibility to take the	has positioned us favourably to secure pres-
lead in prioritising sustainability principles	tigious projects and drive sustainable growth.
across our operations, not only to deliver
positive and lasting outcomes but also to in-	We have leveraged our expertise and indus-
spire sustainable legacies.	try insights to identify emerging trends and
	capitalise on new opportunities. Through di-
We continue to work with dedication to	versifying our project portfolio, expanding our
achieve our business strategy and growth	geographical presence and exploring niche
intentions, both responsibly and in the best	markets, we have strengthened our compet-
interest of all our stakeholders - and we are	itive edge and broadened our market reach,
succeeding in doing so. In the year 2022, our	all while advancing our sustainability targets.
total revenue grew by 30.16% to reach ₦440	In driving our diversification agenda forwards,
billion, which is in line with our avowed com-	we have successfully launched into the
mitment to enhance continually our contribu-	agro-processing sector, with our first indus-
tions to the overall progress of our nation.	try operations focused on the sustainable

local processing of Nigerian-grown cashews via an innovative and responsibly operated semi-automated factory.

Expansion of our reach beyond construction and into agriculture not only provides benefits to our risk profile and financial growth targets but it also provides opportunities to extend our positive impact socially, economically and environmentally.

In 2022, within our construction operations, we introduced innovative approaches, novel methodologies, and sustainable products and services that prioritise environmental wellbeing. We transitioned our Abuja facilities from diesel-powered to gas-powered opera- tions, which represents a substantial reduction in pollution as gas is a cleaner and more environmentally friendly fuel source that produces cleaner energy, thus helping us to reduce our greenhouse gas (GHG) emissions.

Looking ahead, we will continue to work with dedication to achieve our business strategy and growth intentions responsibly and in the best interest of all our stakeholders. Our goals and targets relating to our contribution to sustainable development for the next three to five years will entail the ongoing adoption of environment-centric solutions, including incorporating energy-tracking smart build- ings, utilising green concrete and recycled

aggregates, implementing sustainable site installations, and leveraging prefabricated construction techniques.

Thank you.

Engr. Dr. Lars Richter

Managing Director

7

8