Vanheede Environment Group – Sustainability report 2022-2023

Sustainability that fits

We are proud to be a sustainable and dynamic family firm that manages to combine a clear strategy, unique know-how, commitment and sustainable growth.

The aim of the circular economy is to ensure the value of materials stays as high as possible for as long as possible. Belgium is the European leader in terms of recycling rates and quality. Vanheede also plays a role in promoting prevention and at-source sorting. We make things simpler for our customers by finding the best destination for their waste, so that it doesn’t end up leaving the value chain. Lawmakers have given us a little extra help. The more we produce green primary materials and green energy, the more we contribute to decarbonisation. A low-carbon economy is also one that uses fewer resources.

In addition, we want to set an example: By avoiding a negative impact on the environment and our surroundings. By placing greater importance on safety. By taking a proactive stance on the CSR directive, which, from 2026, will require European companies to summarise non-financial performances based on the ESRS standards. By explaining our organisation and our strategic choices in a management manual, which will serve as a guide in decisions in the future.

Our enthusiastic employees are the driving force behind our family firm. It is thanks to their commitment and their flexibility that we are able to grow and innovate - which is essential if we are to remain relevant in a circular world. And it’s not just the company; our treatment solutions and our sites are growing too. In a highly capital-intensive sector, profitability and sustainability go

hand in hand

We are proud to be a sustainable and dynamic family firm that manages to combine a clear strategy, unique know-how, commitment and sustainable growth.

We are eager to see where the future will take us.

Vanheede, CEO

As we near our 55th anniversary, we can be proud of how far we have come.

David

Vanheede Environment Group

The more resources we consume, the more the climate will heat up. So a low-carbon economy is also one that uses fewer resources. In addition, a circular economy is a resilient and adaptable economy, which makes it better able to adjust to trends and environmental changes.

Our ecosystem

In a circular economy, reserves of limited resources are not exhausted [1] and [2] and waste [6] is entirely reused. The energy needed for a clean circular economy comes from renewable sources [9], [10] and [11]

According to the “Waste Framework Directive” principle, we strive to avoid producing [4] waste [3] or to reuse it [5] as much as possible. The waste streams [6] and [7] that are, nevertheless, produced are converted into new, green primary materials [11] and green energy [9], [10] and [11]. We extract maximum value from waste by carrying out appropriate collections [12], sorting [13] and recycling [14] or energyrecovery incinerating [15]. Landfill [8] is the least desirable option and should only be used as a last resort for final waste.

B Challenges for the sector

C Challenges for Vanheede

The limited amount of resources demands that the value of these resources should be preserved and maintained at as high a level as possible, for as long as possible.

Vanheede, a linchpin in the circular economy.

A The challenge facing the world

Pivot in circular economy

Raw materials move through various circles as a result of economic activities

D What our stakeholders expect

A That we play our role within the circular economy to the full.

B That we adopt a low impact approach. That we avoid (residual) waste as much as possible.

C That we create a healthy and safe environment for people and society.

Recognition for our efforts

Certification in quality, environment, corporate social responsibility, security and strategy

← Winning big at Global CemFuels

In September 2022, Vanheede Alternative Fuels won the Alternative Fuels Supplier of the Year award at Global CemFuels in Lisbon. This prize rewards excellence in alternative fuel projects and equipment for the cement industry around the world. With AlterCoal®, Vanheede Alternative Fuels offers the industry a sustainable and circular solution.

↑ Best Managed Companies Gold Label

877 employees

98,51 % recycling and valorisation

Our key figures – 2022

199.852 kEUR consolidated turnover

1.122.000 tonnes of collected, sorted and treated waste

60.660 tonnes CO2e emissions

54 kg CO2e/tonnes collected, sorted and treated waste

305 tonnes CO2e/mEUR turnover

69 tonnes CO2e/FTE

73.631 MWh green energy produced for 21.038 households

587.066 tonnes of new raw materials

1,7 waste streams per collection address

2.481 collected waste streams

Part 1

This is Vanheede

Passion

We are committed to our work!

WE KEEP OUR PROMISES

Every day, we continue to build a dynamic culture of continual collaboration and learning. Our culture encourages each employee to explore new ideas and working methods and to embrace innovation as a fundamental value.

How we contribute to the UN’s SDGs

In order to maintain our market position, we must develop proactive solutions for the environmental challenges of the future and offer sustainable value to our customers and society in general.

Vanheede Environment Group

What we do

Today, Vanheede offers its almost 20,000 customers - mainly companies (B2B), governments and inter-municipal cooperations - a sustainable, effective and economic waste management solution. We play a key part in creating a circular economy by turning each waste stream into new green primary materials or green energy, in our processing plants and third-party sites. These green primary materials and this green energy can be used to make sustainable products with a low impact on tomorrow.

Who is Vanheede

With a consolidated turnover of €200 million, Vanheede Environment Group is in the top 5 companies in Northern France and Benelux. The group employs almost 900 people, spread across 15 sites in Belgium, Luxembourg and France.

Our business model

As an integrated environmental enterprise, Vanheede Environment Group manages more than 2,400 waste streams under the motto “Towards a Circular World in a Sustainable Way”. Each year, more than 1 million tonnes of waste are collected, sorted or processed. More than 98% of this waste is recycled or upcycled. We produce more than 70 million kWh of green energy, enough to supply 21,000 households and we produce 580,000 tonnes of new, green primary materials.

L-C = Logistics centre

R-F = Recycling facility

Great Britain

Bruges (Oostkamp) [L-C]

Roeselare (Rumbeke) [L-C & R-F]

Wervik (Geluwe) [L-C]

Lille (Marquette-lez-Lille) [L-C]

Ghent [L-C]

Antwerp [L-C] Asse [L-C]

BRUSSELS Headquarter

Netherlands

Lens (Billy-Berclau) [L-C]

Mouscron (Dottignies) [L-C & R-F] Nivelles [L-C]

Mons (Quévy) [L-C & R-F]

Genk [L-C]

Wanze (Vinalmont) [L-C]

Arlon (Messancy) [L-C]

Luxembourg

Luxembourg (Rodange) [L-C]

Our vision Towards a circular world in a sustainable way

We are committed to building a better and more sustainable future for us all.

Vanheede wants to be a leader in the transition towards a circular world in which resources are (re)used in a responsible and efficient way. Furthermore, we also want to run our own business in a sustainable way.

Our mission

We offer our clients the most efficient solutions in the management of waste, green resources, green energy and environmental management. A highquality, professional and innovative approach with added value for all stakeholders is the norm.

Sustainable entrepreneurship means that, with a minimum negative impact and a maximum positive impact on the environment, we achieve the best results for our customers, employees, shareholders, the governing body, the government, subcontractors, suppliers, banks and insurance companies, local residents, the media, etc.

As a sustainable company, Vanheede Environment Group wants to be a fullyfledged partner in the circular economy.

Our culture and our values

Our culture: un invaluable strength

Vanheede Environment Group has its own unique character and culture that have been at the heart of the company since 1968. The values of that era are still reflected in the way we do business today. These values also form the basis for Vanheede’s corporate culture, which serves as a guiding principle for all of our current and future employees. We communicate our values to everyone and ensure that everyone understands them, but above all we live by them. Not only do they provide the oxygen for our corporate culture, they also inform all of our decisions and activities.

Planet

We contribute to developing a better world.

Materials are given a second life at our sites. This way we have a positive impact on the climate and our environment, now and in the future.

Passion

We keep our promises. A culture of creativity, entrepreneurship, digitisation and innovation results in a strong commitment from our employees.

Profit

We are developing a sustainable future.

Every one of us makes the difference, for the stakeholder, the company and for himself. Profit is the oxygen that allows us to invest, innovate and organize in a clever way.

Pride

We are all proud ambassadors of our company. We fulfil our ambitions in a transparent collaboration. By doing this we stay faithful to our culture.

People

We are a family business. Welfare, health and safety constitute absolute priorities. We recognize talents and give them space, in all confidence.

In what context does our group operate?

A Challenges facing the world

1 – Sustainable and social entrepreneurship

2 – From the problem of materials to a solution for the climate

3 – New business models in the circular economy

4 – An ever faster technological and digital evolution

5 – Resilience and flexibility

6 – European legislation: a little extra help

B Challenges for the sector

1 – Maintain the value of materials as high a level as possible, for as long as possible

2 – Extended Producer Responsibility

C Challenges for Vanheede

1 – A passionate organisation

2 – Vanheede, a linchpin in the circular economy

D What our stakeholders expect

1 – That we play our role within the circular economy to the full

2 – That we adopt a low impact approach. That we avoid (residual) waste as much as possible

3 – That we create a healthy and safe environment for people and society

This is the world we live in and its influence over our future

1 – Sustainable and social entrepreneurship

The global population is growing rapidly, as is the pressure on natural resources and the use of space. At the same time, prosperity levels are rising which is amplifying the impact.

According to the principle of Doughnut Economics, ideally we should stay within the social and ecological limits of the planet while meeting the needs of society. This can be done by, for example, developing sustainable and circular economic models, which focus on reusing resources and reducing waste. It is also important to ensure wealth is shared equitably and a stable economic system is created that does not rely on limited resources.

2 – From the problem of materials to a solution for the climate

Materials and energy are two sides of the same coin: the extraction, transport and manufacture of goods using materials require enormous amounts of energy which, in turn, generates CO2 emissions. The aim of the circular economy is to keep the value of materials as high as possible for as long as possible. So the circular economy offers a partial solution to the climate problem.

3 – New business models in the circular economy

The traditional, linear economy business models belong in the past. In a circular economy, producers at the design stage need to ensure that materials will be returned to the economy at the end of their life. And the recycling sector needs to facilitate these high-added-value applications. Creating a circular economy is a responsibility in which we all need to play our part.

4 – An ever faster technological and digital evolution

Innovation cycles are becoming shorter and shorter. The emergence of new technologies such as artificial intelligence (AI), blockchain and 5G networks are being rolled out at speeds never seen before. In an ecosystem of start-ups and scale-ups that dares to take chances, companies need to be able to react quickly and effectively to technological and digital changes in order to stay in the game.

5 – Resilience and flexibility

Even if we want to live and work in a more sustainable way, and even if topics such as the climate and circularity are being given more importance, turning ambition into reality is not easy in an ever more complex and uncertain world. We have already proved time and again in the past that we are resilient. We are convinced that, in the future, our flexibility and our adaptability will be put to the test again.

6 – European legislation: a little extra help

The Waste Framework Directive lays down some basic waste management principles and definitions. It explains when waste ceases to be waste and becomes a secondary raw material, and how to distinguish between waste and by-products. The Directive also introduces the “polluter pays principle” and the “extended producer responsibility”.

Did you know…? If three of the most CO2-emitting industrial sectors in Belgium - steel, cement and plastics - adopted a maximum circular approach, we could save 6.5 million tonnes of CO2 emissions by 2030.

Source: De Klimaatschok, Geert Noels, Kristof Eggermont & Yanaika Denoyelle.

1 – Maintaining the value of materials

as possible for as long as possible

Working on the Waste Framework Directive principle, or “Lansink’s Ladder”, we prefer not to produce waste. However, if this can’t be avoided, we try to get the most value possible from it through reuse, recycling or energy recovery incineration. Landfill is considered the least desirable option.

At Vanheede, co-processing also plays a large role in transforming residual waste fractions, such as non-recyclable plastics and textiles, into environmentally-friendly fuels and primary materials, particularly for the cement, lime and steel industries. Using these alternatives to coal creates a 100% useful alternative for this waste. On the one hand you have energy recovery through the heat generated during incineration and, on the other, the ashes created by incineration constitute a primary material in the cement, lime and steel industries.

2 – Extended Producer Responsibility

Extended Producer Responsibility (EPR) makes it mandatory for manufacturers to organise and finance the collection and treatment of their products at end-of-life. This also forces them to become more involved in the management of this waste, by researching ways of reusing recycled waste - green primary materials - in their value chain.

This is the sector in which we operate

as high

Deposit money ↓

This is the organisation in which we work

1 – A passionate organisation

• A stable company made up of passionate and motivated employees

For 55 years we have nurtured our reputation for providing careful, attentive and reliable service and flexibility to our loyal customer base.

• Sustainability as the basis for all our activities

Transforming waste streams into secondary raw materials and energy is a sustainable activity in itself. In our view, it is just as important that it takes place sustainably. Our five valuespassion, planet, people, profit, pride - are the leading considerations in everything we do.

• Innovation

With our own R&D service, we have a wealth of expertise with regard to the design and engineering of sorting and waste processing sites, which we apply to ensuring that they are as CO2 neutral as possible.

• Local presence, international activities

We deliberately take a global approach, but with a regional focus. This pertains both to processing options as well as to our policies to ensure that our services and activities are in compliance with local laws and regulations. We go for 5 star environmental services.

• Your one-stop-shop for waste management

Whatever sector they are active in, our customers can rely on us for every aspect of waste management, from garbage bags and dustbins to dumpsters and roll-packers, and from signage and waste coaching to reporting.

• Efficient waste management and high scores for customer satisfaction

We help our customers manage their own waste efficiently by equipping them with a range of tools, from signage to our myVanheede customer portal and Vanheede Plus app. This makes it easy for them to monitor and organise their requirements in a user-friendly way, whether they need to keep track of one location or hundreds!

2 – High-quality green primary materials

• Maximum recycling guarantee

Our material recovery division determines the appropriate sustainable destination for every type of material we collect, whether processing is carried out by own companies or externally. It performs an independent role with regards to this. One important factor we always consider is the distance from the source to the destination.

• Our own sorting and processing facilities

We continually invest in our own sorting and processing activities for mixed business waste, organic waste, plastic and high calorific waste. We guarantee transparency in the value chain for the waste we collect, and act as a partner to many other collection services in the circular economy.

• High-quality products with low impact

We have in-house expertise and technology for converting waste materials into high-quality products for use as new, green resources and/ or alternative fuels for industrial use.

What major topics do our stakeholders believe are important?

In our rapidly changing society, the interests and expectations of our stakeholders are also subject to change. To gain a better understanding of current market dynamics and apply them to our sustainability strategy, we opened up a broad dialogue with our stakeholders in 2021.

The graph illustrates what stakeholders consider most relevant, based on their impact and their interest in working with Vanheede Environment Group (updated 2021).

The three main points on which all our stakeholders see eye-to-eye are:

1 – Fully stand by our role within the circular economy

Both in collecting and in processing waste. The value of resources must be kept as high as possible for as long as possible. So we need to be innovative in developing services, products and processes. To do that we need to use new techniques and technology. We need to maximise our positive impact and our added value.

2 – Adopt a low impact approach

We avoid as much (residual) waste as possible ourselves. We need to strive to use renewable energy in our activities, and the products we buy should preferably be made out of green resources. We emit as little CO2 as possible and we find a green destination for our emissions. At the same time, we need to continually reduce the energy intensity of our activities. We also need to be more mindful of our impact on the air, water and biodiversity. We must minimise our negative impact.

3 – Create a healthy and safe environment for man and society

By this they mean man in its broadest sense: employees, customers, neighbours and everyone else. We do have an impact on society. We help create new jobs and develop talent through the necessary training and education. We work towards adequate diversity and avoid discrimination. We strive to ensure our customers are satisfied and our employees are loyal to the company.

Our strategy

We are an environmental service provider, active in collecting waste and sorting and processing it with a view to recovering primary materials or precious energy. In this way, we hope to continue to increase our positive impact on the environment and those around us.

We offer our customers maximum support in moving towards a circular economy. In our aim to become a full player in the circular economy, we relieve our customers of all* the waste present in their business or organisation, whatever sector they are in. We seek out the best destination for their waste, so that it doesn’t end up leaving the value chain. We keep a particularly close eye on the waste streams that we sort and/or treat within our group of businesses, especially organic, plastic, mixed and special waste.

Environmental Services

Sorting and processing waste

Recovery & Recycling

Sustainable energy production

Renewable Energy

Thanks to our business activities, we contribute to the creation of a circular world

*Only explosives, animal carcasses and radioactive waste are not included in our portfolio..

Network-oriented Customer-oriented Innovative

We run our businesses in a sustainable way

With regards to our day-to-day activities, we strive to factor in the planet’s limits and so avoid our negative impact on the environment and those around us.

However, for us, sustainability is about more than worrying about the environment. Sustainability also means staying relevant in a constantly evolving world and context. Through sustainable development, we want to continue to grow on a national and international level and strengthen our position as a market leader.

We form an integral group, in which our Business Units are supported by our support services. This enables us to create synergies and to get the most out of our company and our resources, to react more quickly to change and to seize new opportunities. This is how we are able to offer our customers a broad and coherent range of services. By combining our strengths, we are able to encourage innovation and develop new products and services that best meet the needs of our customers.

in a sustainable way

Waste collection Environmental Services

We provide waste collection and consultancy services, container hire and transport services for various types of waste, from household waste and the like to special and hazardous waste. We offer companies bespoke solutions for waste management, recycling and sustainability.

Sorting and processing waste Recovery & Recycling

In our industrial sorting plants, mixed waste streams are automatically sorted into different categories depending on their composition and characteristics. We thus recover precious primary materials and reduce the amount of waste destined for the incinerator or landfill as much as possible. In our processing plants, we turn waste into new green primary materials and into quality products that can be reused in the circular economy. What can’t be converted into primary materials is converted into alternative fuels that are environmentally-friendly in that they replace fossil fuels.

Sustainable energy production Renewable Energy

We are developing new technology to convert renewable energy sources into electricity, gas and heat. We are looking to optimise existing plants and explore new possibilities in the carbon-free energy field.

Network-oriented

In our bid to promote a circular economy, we have built up strong, long-term partnerships with governments, companies and institutions. Within our own organisation, we also attach great importance to recognition and the reciprocal use of our strengths. As a resilient and learning organisation, we constantly work in a collaborative way and we learn together, which enables us to gain new perspectives and refocus our strategic actions if necessary to achieve our goals. Within the Vanheede network, we seek to encourage and support entrepreneurship among each and every one of our employees, which helps build a sense of belonging. Given that our employees play a crucial role within our network, we also attach great importance to their health, safety and development.

Customer-oriented

It is thanks to our loyal customers that we have our greatest impact. That is why it is important to make customer contact a priority, to identify their needs and questions in a proactive way and to meet their expectations. Our customer-oriented approach goes hand in hand with a quality guarantee at every level. Every day, we put our faith in the quality of our products and services by offering our customers a tailored global solution and the very best products. We also put our faith in the quality of our company management and our processes. Our processes are very efficient, enabling us to constantly improve our products and services, while maintaining a high level of customer satisfaction.

Innovative

For years, innovation has been the core of our strategy; it is the driving force for our continual improvement. Our financial soundness enables us to rise to two major challenges within the framework of our innovation policy: the growing pressure on the climate and environment, and a world in full mutation. Innovation in turn contributes to lasting growth and value creation. Legislation is at the heart of this innovative and sustainable growth, and we see it as an opportunity. The everchanging legislation keeps us on our toes and encourages us to continue our constant investment in innovation. We want to use this to be a leader in innovation and a strong partner in the circular economy.

Vanheede as an integrated environmental enterprise

As an integrated environmental company, Vanheede Environment Group is committed to integrated waste management in a circular economy. We are involved throughout the value chain, from collecting to sorting, to treating or recycling waste and to final waste disposal.

3

2

4 Collecting waste selectively

Setting up partnerships

Sorting and processing waste

1

Raising awareness

6

5

Sale of recycled primary materials

Our business model

Raising awareness among our customers and governments

Thanks to our vast knowledge of materials, techniques and markets, we play an essential role in raising awareness about the importance of managing waste in an efficient way that is respectful of the environment, by stressing the need for sorting at source. By concentrating on specific customers and segments, we are able to expand our expertise, and thus our impact.

Setting up partnerships to which we can bring real added value

Recognising our role in bringing together key players in the value chain – from primary matter, from the producer to the consumer – in order to complete the material circle and identify problems or opportunities much more quickly.

Collecting waste selectively and channelling it to its best destination

The selective collection of hazardous and non-hazardous waste, focusing on commercial waste, is the very essence of our company. We provide the fullest range of waste management solutions to meet our customers’ needs. We collect all kinds of waste, apart from explosives, animal carcasses and radioactive waste.

Sorting waste and turning it into high-quality, alternative materials

Once collected, some of the materials need additional sorting, which we do on our own, industrial sorting lines. In this way, we seek to recover materials and precious primary materials from mixed waste streams. During the recycling of collected waste, we aim to achieve maximum recycling levels

Sale of recycled and high-quality “green” primary materials to processing centres and manufacturing companies, etc.

A market just for selling recycled materials is essential if we want to sustainably preserve natural resources. The demand for quality “recycled content” continues to grow, which further encourages recycling and business opportunities. A thriving sales market also reduces greenhouse gas emissions and prevents recycled material from being incinerated or sent to landfill.

An end destination for non-recyclable waste or final waste

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Our policy

In line with guidelines such as Ecovadis, ISO 9001, ISO 14001, VCA and Best Managed Companies, Vanheede Environment Group has compiled a code of conduct for all of its personnel and a number of policy rules for full commitment to addressing environmental, social and administrative issues:

Code of conduct

This document sets out our expectations regarding behaviour between and among colleagues and leaders and in the organisation in general.

CSR policy

Vanheede has integrated the principles of socially responsible entrepreneurship in its strategies and daily activities. As a business working in the public and private sectors, our purpose encompasses much more than being profitable. We contribute to developments in the community in which we operate. To contribute to the welfare of various community sectors, we engage in activities that are socially, ecologically and economically beneficial and which represent a commitment to the sustainable development of the community and of society in general.

Environmental policy

As much as possible, Vanheede aims to minimise the negative impact and maximise the positive impact of its activities on the environment, the climate and sustainable consumption of natural resources. As a business in the environmental sector, we apply a clear environmental policy to our own work that is supported by all parties involved and at every level.

Sustainable purchasing

As a sustainable business, Vanheede takes responsibility for its supply chain by adhering to a sustainable purchasing policy. Consultation and collaboration with suppliers and customers contribute to a transparent, efficient and advantageous purchasing policy that improves processes for all involved.

Our objectives

Out of all our goals, growth is key. Growth in its broad sense: we want to encourage sustainable economic growth. That being given, we take societal and environmental factors into account so we can meet the needs of today, while protecting the possibilities for future generations to be able to meet the needs of tomorrow. To promote sustainable economic growth, we follow the ESG (Environmental, social, and corporate governance) principles.

We protect the environment

As a leading firm in waste management and recycling, Vanheede Environment Group is committed to fostering sustainable development and environmental management. Our environment policy describes our approach to global environmental challenges and the responsibilities linked to our own activities, as part of the “Towards a Circular World, in a Sustainable Way” vision. This strengthens our role as a full player in the circular economy.

Climate change

• We are committed to reducing our greenhouse gas emissions. We aim to be carbon-neutral by 2050.

• All our electricity must come from green and renewable sources. We will only use green electricity across our businesses.

We protect the environment

We put our own principles into practice

We have each other’s backs

GROWTH

Materials use and the circular economy

• We put our own principles into practice. We try to recycle as much of our own waste as possible and to reduce our residual waste as much as we can.

• Sustainable purchases, maintenance, repairs and reuse. We want to maximise the share of recycled materials in the purchases we make (containers, dumpsters, medical drums, bags, etc.). We are able to prolong the life of these assets through good maintenance and our own repair service.

• Our customers, a lever for maximum positive impact. We want to send the waste we collect from our customers to the best destination possible, by steering it towards recycling and thus reducing the proportion of residual waste to a strict minimum.

We have each other’s backs

We want to promote trust and safe collaboration, both with our employees and with our customers, suppliers and the community.

Our employees

• Safe and healthy, pleasant and sustainable working conditions for our staff.

• We are aiming for an Employee Net Promoter Score (eNPS) above 30.

• We aspire to an accident-free workplace.

Employees in the value chain

• We respect human rights in our value chain.

• We try to work closely with the appropriate work agencies in order to contribute to social inclusion and promote equal opportunities for all. Our influence over communities

• We try to raise awareness among our customers, our employees and future generations about the importance of sorting waste.

Informed management

We are committed to working in the most efficient way possible at all times, and to running the organisation according to the principles of good governance.

Governance structure

• Gender diversity is respected on the Board of Directors: the two sexes are represented on a ratio of one thirdtwo thirds.

Innovation

• We want to plan for an annual investment budget of at least 8% of turnover.

• We want to develop a dynamic culture of continual collaboration, improvement and learning, that inspires every member of staff to explore new ideas and working methods and to embrace innovation as a fundamental value.

Customers and end users

• Loyal customers who are the ambassadors of our offer.

We are aiming for an Net Promoter Score (NPS) above 30.

We want to supply products that meet our customers’ quality standards.

We want to protect our healthy financial situation

Our sector is highly investment intensive. A sound financial base enables us to invest in sustainable solutions and meet the ever stricter standards and regulations governing sustainability. Our profits are the oxygen that allows us to keep going.

Financial capacity

• We want to maintain a liquidity ratio of at least 1.

The Vanheede family, the driving force of our group of companies

The story of the Vanheede Environment Group is one of ambitious entrepreneurship in a rapidly expanding but complex market. It is a story of pride, of passion and of social responsibility.

Herwig Vanheede and Claudette Descamps, David and Caroline’s parents, decided in 1968 to quit the depressed flax sector and, in a pioneering move, devote their energies instead to waste management. From the start, optimisation and efficiency have been important concepts in sustainable waste management.

In the 1980s, a clear legislative framework was set up for the collection and, primarily, the treatment of waste. Companies seeking to innovate in the field of waste management could invest in recycling plants and thus expand their activities from simple logistics to the treatment and recycling of collected waste.

Over recent years, our company has earned an important place in the circular economy. Our sector, it turns out, is essential in closing the circle. Waste has to be treated, purified and upcycled to be reused in the regular manufacturing economy, but it is also important to sort it at source in order to give it that precious new future.

The family nature of our company is fundamental to its development. Sustainable and effective solutions and the attention we pay to our customers are always at the heart of our business culture.

Vanheede Environment

Group is a family firm, owned entirely by the Vanheede family.

Shareholders come together in the General Meeting of Shareholders.

Aside from the General Meeting of Shareholders, the Board of Directors has been named the administrative authority, the terms of office of the directors remaining exclusively within the Vanheede family. This Board of Directors is in charge of the organisation’s strategy direction.

When necessary, the Board of Directors seeks the advice of the Advisory Board, which also includes outside members.

Recovery Facilities

Household Waste Collection

Special Waste Management

Commercial & Industrial Waste Management

We are an integrated group of businesses within which our Business Units and support services play a central role and work together in an optimal way.

The Business Units and support services at the heart of our group

Plastic Recycling

Organics Recycling

Chemical Recycling

Landfilling

Renewable Energies

Our support services provide services that are essential to each Business Unit and assist them in their day-to-day operations.

Our Business Units are autonomous entities within our group. They have their own vision and are focused on specific activities and markets. Together they form a strong group.

Each of these Business Units has its own structure, with its own Business Unit Manager and its own management, both of which are in charge of the day-to-day running. Our Business Units also get together during coordination meetings to discuss common or conflicting interests, always with the interests of the group as a whole in mind.

Commercial & Industrial Waste Management has a mission. It is to relieve organisations of their waste management worries while creating added value. The Business Unit helps customers with their circular policy and on-site waste management, seeking out the most sustainable solution for the waste and handling logistics.

Special Waste Management is specialized in assisting organizations with special waste management. With a focus on quality and risk management, the BU creates added value for the collected waste. The goal is to carry out these activities with the lowest possible negative impact on the environment, with a central emphasis on ongoing investment in digitalization and automation.

Household Waste Collection is exactly that, collecting household waste such as residual waste, glass, PMD, paper and cardboard.

materials. This enables new plastic products to be made and maximises the value of plastic.

Plastic Recycling is in charge of the mechanical recycling process through which we clean contaminated plastics (mainly polyolefins). Our processing plant, fitted with the latest technology, reduces plastics, sorts them by polymer and colour, gives them a deep clean and converts them into reusable primary materials.

Organics Recycling concentrates on the best solutions for managing organic waste, always making sure to provide maximum added value and to minimise the environmental impact. It unpacks and treats food waste, turning it into soil additives and green energy, produces biomass and compost, upcycles mud on its own sites and others and takes care of water treatment and management.

Landfilling aims to deal with non-circular waste properly by using the best techniques available, in such a way that it will not have a negative effect on future generations. The Business Unit is divided into three main activities: mining (clay), filling (burying underground) and nature management. When extracting resources and working a natural zone, we also give part of it back to nature and part of it to society.

Renewable Energies has as its goal enabling Vanheede to remain independent of the energy market. To do this, the Business Unit aims to produce renewable energy for all our sites. This means electricity, heating and gas, produced from organic waste, wind and solar power thanks to energy recovery. In addition, it provides the group with help and support in its energy optimisation process.

Recovery Facilities use innovative sorting facilities to sort waste streams, according to what they are made from. The Material Recovery Facility (MRF) focuses on recovering specific products from mixed business waste, while the Plastic Recovery Facility (PRF) is focused on the recovery of specific products by the customer from plastic-rich primary

Chemical Recycling produces pellets which replace fossil feedstock in industrial production with the alternative feedstock. With the AlterCoal® production process, R&D, the latest technology and quality are our main concerns. The pellets are customised in order to meet the physical and chemical composition standards required by this kind of industry.

Innovation, an improvement factor

By innovating, we are tackling two major challenges:

• The first is the ever-growing pressure on our climate and the environment. One of the main solutions to these global problems is to close the materials circle within the circular economy. As a business, we are in a prime position to help out with this. So our goal is to have a positive impact in a circular world

• The second is that the world around us is changing at lightning speed, whether we are talking about technology, legislation, the customer experience or generations, etc. We have to prove we are flexible if we want to adapt. We want to remain relevant in a sustainable way

We invite all our colleagues to think in terms of a solution about how we are readying ourselves and adapting to changing circumstances. We can all work on our own ideas within the company. Indeed, every idea is a potential innovation.

Our innovation process clearly shows the phases through which an idea must go before being taken on as a project. By measuring the idea based on our business strategy, we validate and maximise the chances of success.

Five innovation programmes connected to our vision

Our vision makes up the basis for five innovation programmes. Two of them are directly linked to “Towards a Circular World”, as well as our main activities: the collection, sorting, recycling and upcycling of waste, with a view to a circular economy. Under the principle “in a Sustainable Way”, three programmes ensure we remain a sustainable company, and for future generations too. To do that, we have to remain relevant in a rapidly-changing world, and also maximise our impact on the environment and the climate.

Towards a circular world, in a sustainable way

Circular Materials

The goal of the circular economy is to separate economic growth from the production of materials using natural resources. We contribute to this by researching and adopting the best processing techniques for certain streams of specific materials, as well as exploring innovative methods for converting this waste into quality products.

Intelligent Supply Chain

The supply chain is a key factor to success, helping our businesses to prosper and thrive. To take our supply chain activities to the next level, we are counting on getting maximum efficiency out of our on-site operations, but also on innovation in our reverse logistics models.

Venturi

We innovate to perfect the transformation of Vanheede processes. Our goal is to turn them into high-performing, efficient processes in which digital technology plays a leading role. The design and architecture of this transformation is being built by focusing on the customer and the employees, while constantly researching new technologies.

Infrastructural Development

Our goal is to apply a low-carbon economic vision. This realistic and well-thought-out vision includes a climate-centric approach in order to create carbon-neutral energy systems. This is why we want to invest in climate-friendly solutions that can really make a difference.

Carbon-Smart Economy

In order to ensure our future as an industrial leader and as a waste treatment and logistics company, we take into account the needs, projects and dreams of all stakeholders on our sites. Impact reduction and the importance attached to health and biodiversity are deeply rooted in our global goals.

Sub-programmes creating fertile ground for innovation

Our innovation programmes are wide in scope and are important to Vanheede Environment Group in the long term. They are defined in a broad way. That is why sub-programmes have been created to firm up strategic goals and priorities. In this way, the aim and framework of each project become clearer. For example, the coherence between the choice and use of technology is ensured through various projects.

Part 2

Environment

Planet

We contribute to developing a better world.

Vanheede Planet statistics

WE HAVE RESPECT FOR THE ENVIRONMENT!

Materials are given a second life at our sites. This way we have a positive impact on the climate and our environment, now and in the future.

How we contribute to the UN’s SDGs

Awareness of how to handle waste and materials with a minimum negative impact on the environment is of essential importance for the shift to a low carbon and circular economy.

A leader in sustainable environmental management

Our environment policy describes our approach to global environmental challenges and the responsibilities linked to our own activities, as part of the “Towards a Circular World in a Sustainable Way” vision. This strengthens our role as a full player in the circular economy

We protect the environment

Preserving our environment is a commitment shared by all employees, both in-house and external, at every level of the organisation, and is a condition for working together. We abide by applicable environmental legislation. We use policy, processes, procedures, standards and systems to manage our environmental aspects and impacts properly, so as to control our impact on the environment and the climate, and to continuously improve ourselves in this area.

Optimum natural resource management

We want to operate in a sustainable way by using natural resources as efficiently as possible. This means that, whenever we can, we opt to use renewable or inexhaustible resources and, as far as possible, we avoid using non-renewable resources. We choose our products, processes and services carefully so that our supply chain reflects our sustainability goals, in accordance with standards and regulations. We welcome continual improvement and, when safer and more environmentally-friendly techniques are found, we introduce them in a responsible way as far as possible.

Raising awareness for a maximum impact

We make sure that our employees receive adequate training that provides them with the skills needed in terms of environmental issues and activities. We actively encourage heightened awareness and a culture of commitment when it comes to proposing, setting and achieving our environmental and sustainability objectives and goals. We communicate our environmental commitment to our employees, our customers, our sector partners, our suppliers and the general public.

How we address the climate challenge

Our roadmap towards a Carbon Smart Economy

As Vanheede, we strive for responsible value creation. Sometimes, increasing value is about removing that which is in excess. In a very pragmatic sense, applying this to the topic of the global climate emergency means taking an honest and critical look at our own excesses as an organization. How do our operations, and by default the solutions we offer to our customers, help or hinder the global climate? How can we mitigate our negative impact? How can we boost our positive impact? How can we as Vanheede contribute towards a carbon intelligent economy?

The ambition of Vanheede is to maximize the positive climate impact of the waste sector. The launch of the Carbon Smart Economy program in 2019 was the first step in making that commitment a tangible reality. The program serves the purpose of gaining insight into our climate footprint and working towards climate-neutral business practices. The Carbon Smart Economy program is made of four sub-programs: Carbon modelling, Energy transition in processes, Energy transition in transport, and Renewable energy. The aim is to empower us to take meaningful steps to reduce our environmental footprint, in our processes as well as in transport and to help our customers reduce their own environmental footprint.

In 2022, we started looking for a long-term partner with strong expertise in climate and other sustainability areas to support the realization of the Carbon Smart Economy objectives. We wanted a partner who would help us take an honest look at the figurative elephant in the room – our own emissions. We chose Greenfish part of Accenture for their deep expertise on all sustainability and climate topics. Through their carbon accounting and reporting work, Greenfish has pinpointed our current emissions hotspots. The result is both insightful and a call to action. The emissions allocated to the electricity purchased by Vanheede account for a few percent of our total emissions. A third of our emissions are caused by fossil fuels used for trucks and other vehicles. Crucially, over half of our emissions come from our up- and downstream value chain partners, primarily from the procurement of use goods and capital goods.

A lot of work remains to be done. The need for collaboration along our value chain is clear. We are striving to apply a carbon-smart vision in a realistic and feasible manner, using a climate-centric approach to create climate-neutral energy systems. Our ambition with the Carbon Smart Economy program is not only to drive internal change but also to nudge fellow waste management companies towards taking increasing climate change responsibility.

The value of working with an expert partner is being confronted with the science-based reality of our environmental impact. Our focus going forward is set on developing ambitious, yet realistic, targets and concrete action plans to improve. Through our ongoing collaboration with Greenfish, we hope to engage meaningfully in the transition to a circular carbon economy, notably by developing measurement strategies to further assess the climate-friendliness of our activities and products.

We now invite you to read about this journey in more detail.

Vanheede’s Carbon Modelling journey with Greenfish part of Accenture

Why is Vanheede doing this?

The underlying drive for Vanheede to address its climate impact can be summarized in three touchpoints along its value chain:

What does this mean for us

Vandeede aims to understand its climate impact through calculating the greenhouse gasses it emits as the result of its own operations, making up its corporate inventory. A corporate emissions inventory includes all greenhouse gas emissions for which a company is directly and indirectly responsible. Without the company, these GHGs would not have been emitted. This emissions inventory will be updated annually to reflect the evolution of emissions, helping Vanheede effectively reduce its emissions.

What does this mean for the sector?

Vanheede dreams to move the needle at large in the waste sector, by setting out reporting standards and developing best practices. The waste sector has an urgent need for clear and uniform reporting and accounting standards in terms of GHG emissions.

What does this mean in our value chain?

Vanheede hopes to leverage its unique position within the waste sector to engage upand downstream value chain partners and provide them with metrics that in turn, will help them to reduce their environmental impact too.

What are GHGs?

The abbreviation GHG stands for greenhouse gases. We often hear about CO2, but in fact seven gases were formally recognized by the Kyoto Protocol – the ancestor of the Paris Agreement – as the gases causing climate change.

However, CO2 being the most prominent one, all Kyoto Protocol-GHG are expressed as CO2 equivalents.

How did we approach this specific exercise for Vanheede?

The first building block of Vanheede’s accounting and reporting journey was the completion of Vanheede’s base year corporate inventory of greenhouse gas emissions, creating a reference to compare all future measurement with. This exercise was repeated for 2022, while simultaneously streamlining the data intake and further finetuning the calculation methodologies.

But let’s first take a step back to understand the challenges of this exercise, before diving into the detailed results. We tackled these by following a clear step-by-step approach, and by staying closely aligned with the organization through multiple conversations and workshops along the way.

“Within the waste sector, there is no uniformity in the accounting and reporting of GHG emissions. This is largely due to the complexity of the waste sector value chain and the ambiguity of which emissions the waste treatment companies are responsible for. To ensure our approach was robust and can be adopted by other sector partners, the GHG inventory of Vanheede closely adheres to the GHG Protocol. To apply this general framework to Vanheede’s specific case, a significant amount of investigative effort was spent on understanding Vanheede’s value chain and scoping its material emissions sources.”

– Kim Delvoye, Marketing & Communication Manager

Boundary-setting

Assessment boundaries ensure a realistic view of the greenhouse gasses emitted by a company and serve the decision-making needs of users – both internal and external. Setting clear boundaries helped us define what we needed to measure and report, based on certain parameters.

Geographical boundary

Belgium & France

Operational boundary

13 sites, 12 legal entities & 9 Business Units

Baseline 2021

Emissions type

Anthropogenic & biogenic

The boundaries of Vanheede’s inventory evolved around four parameters. Geographically, the corporate inventory focuses on Vanheede’s activities in Belgium and France. Operationally, 13 Vanheede sites were considered, as well as 12 legal entities and 9 Business Units. Reporting on these 3 levels proved to be complex, but crucial to generate actionable insight on site-, legal entity-, business unit-level, and thus take informed decisions on the lowest organizational level. For future reference, 2021 was chosen as baseline, based on data availability and representativeness (Vanheede’s experienced little impact from the COVID-19 pandemic).

Vanheede’s unique operations, inherently linked to its multifaceted nature, posed several challenges. The distinction between anthropogenic and biogenic is a good example of this. Not only the anthropogenic emissions caused by human activity are in scope, also the natural biogenic emissions were calculated, albeit reported separately. The latter is especially relevant for Vanheede because of its landfilling and bio-methanization activities, as well as of its use of biofuel.

The case of Rumbeke

Rumbeke is Vanheede’s site where landfilling activities are carried out. Disposal of waste in landfills generates landfill gas, due to waste decay. This landfill gas mainly consists of CO2 and CH4. Under natural conditions, the aerobic decomposition (i.e., in a natural environment where oxygen is present) of organic material emits biogenic CO2 emissions. However, as direct consequence of human activity, an anaerobic environment (without free oxygen) is created through landfilling. Consequently, the organic waste is partly anaerobically decomposed into anthropogenic CH4 emissions. At Rumbeke, suction pipes ensure that most of the landfill gas is captured (at a rate of around 95%), after which the gas is upscaled to natural gas or used to generate electricity. During the aerobic combustion in a cogeneration system, the carbon sequestered in the organic matter binds with oxygen and is released in the form of biogenic CO2 emissions

Mapping & data collection

Calculating Vanheede’s GHG emissions required modelling the organizations activities and collecting data from various sources. It is the outcome of a collaborative process involving stakeholders from a wide range of disciplines. The entire process followed the five principles of relevance, completeness, consistency, transparency, and accuracy as set out by the GHG Protocol.

In our work with Vanheede, this entailed five steps:

3.

1.

Based on initial discussions with the project team, all relevant sources of emissions were identified. This meant not only looking at sources of emissions present on all locations, but also diving into the emission sources specific to each site.

2.

To this end, site visits were organized to understand better the operations of Vanheede and to clearly map all site-specific emissions sources, thereby guaranteeing completeness.

Throughout the organization, 19 persons of contact of various departments were identified, each responsible for the data collection of 19 emissions categories. Involving employees from throughout the company makes people from all different departments aware of the exercise and of the data necessary, thus ensuring consistency in data collection for the years to come.

4.

Interviews were organized with every point of contact to discuss the emission sources, thereby guaranteeing that the most accurate numbers and most granular data available was used for the calculations.

5.

Follow-up meetings were organized to discuss data gaps and find solutions to overcome these. Based on this close contact, all assumptions, proxies, extrapolations can be disclosed in a transparent way.

What about the waste handled by Vanheede?

Theoretically, by the letter of the GHG Protocol, all sold products are considered as the responsibility of the reporting company. However, in reality, there exists a significant difference in the control Vanheede has over these emissions. In this, a clear cut was made between end-of-life emissions of products that without Vanheede would not exist and products that – regardless of Vanheede’s existence – would exist.

In the first category, we consider all products that are vital for Vanheede’s daily operations, such as containers, bags, etc. The end-of-life treatment emissions for these goods are includied in Vanheede’s inventory. All other sold products – in essence the waste collected by Vanheede – are considered outside the boundaries of Vanheede’s corporate inventory. Alternative products, such as AlterCoal, which are processed by Vanheede from waste generated by upstream client companies are considered outside the strict corporate inventory. Other collected waste which is sorted by Vanheede and transported to treatment partners is also considered out of scope.

Corporate Inventory: Defining what falls under Scope 1, 2 and 3

All 19 emissions categories that were identified as relevant were grouped together under the adequate scope, based on the emission source characteristics. Furthermore, the scopes also indicate the control Vanheede has over these emissions, the highest control over Scope 1 going down to Scope 3.

Scope 1 holds the combustion emissions of gas and fuel that is burned in assets owned by Vanheede (including both facilities and vehicles). Vanheede is responsible for these and can directly act on these emissions through strategic decisions, such as by switching to electric vehicles. The same holds true for Scope 2 emissions, however to a lesser extent. Vanheede is indirectly responsible for these emissions from the electricity consumption of its facilities and vehicles, but still has significant leverage through its electricity procurement.

Further down the ladder of control, there is Scope 3, the greenhouse gasses emitted by Vanheede’s tier-1 suppliers and clients. Given the contractual agreements that Vanheede has with their supplier and clients, they still have significant leverage over their partners for them to work on reducing their emissions. Due to Vanheede’s unique position in the waste management value chain, one of the main scoping challenges was which sold products – and their end-of-life emissions – to attribute to Vanheede. Within Scope 3, investments in fixed assets were grouped separately under a distinct sub-category, called Scope 3b. Given Vanheede’s intentions of investing greatly in the upcoming years, the company has less leverage on reducing these emissions in absolute terms. The emissions from new buildings and installations are no less part of Scope 3, but the creation of a dedicated category allows to justify any big yearon-year fluctuation in annual corporate greenhouse gas inventory.

MOBILE ELECTRICITY CONSUMPTION

SCOPE 2

INDIRECT EMISSIONS FROM PURCHASED ENERGY

UPSTREAM INDIRECT EMISSIONS

DIRECT EMISSIONS

DOWNSTREAM INDIRECT EMISSIONS

STATIONARY ELECTRICITY CONSUMPTION

SCOPE 3

CAPITAL GOODS

FUEL AND ENERGY RELATED

FUGITIVE EMISSIONS

STATIONARY FUEL COMBUSTION

INVESTMENTS

LEASED ASSETS

TRANSPORTATION AND DISTRIBUTION

SCOPE 3

PURCHASED GOODS AND SERVICES

TRANSPORTATION AND DISTRIBUTION

BUSINESS TRAVEL

LEASED ASSETS

EMPLOYEE COMMUTING

MOBILE FUEL COMBUSTION

STATIONARY GAS COMBUSTION

END-OF-LIFE TREATMENT OF SOLD PRODUCTS

WASTE GENERATED IN OPERATIONS

SCOPE 1

PROCESS EMISSIONS

UPSTREAM ACTIVITIESCOMPANYDOWNSTREAM ACTIVITIES

Results and what they (can) mean for us, others, and all Vanheede’s 2021 and 2022 corporate inventory*

The data shows that Vanheede’s 2021 corporate inventory emissions amount to a total of 56.494 tons of CO2e. To make this tangible: this is proportional to the annual footprint of 6.000 Belgian citizens or to 30.000 cars on the Belgian roads.

A third of those emissions are caused by the transportation of waste by with Vanheede’s vehicles (Scope 1). The emissions allocated to the electricity purchased by Vanheede only account for 4% of the inventory (Scope 2). The remaining 57% of emissions come from Vanheede’s up- and downstream value chain partners (Scope 3), primarily from the procurement of use goods and capital goods.

For 2022, Vanheede’s corporate inventory emissions amounts to 60.660 tons of CO2e compared to the 2021 baseline, Vanheede’s emissions rose by 10% over the course of 2022. There are two main drivers for this:

OWN – Hotspots and reduction potential

The biggest emissions sources, also called hotspots, will be the focus of Vanheede’s reduction efforts. It is here that the decarbonization efforts can bring about the biggest impact. For Vanheede, the three most relevant emissions sources are the combustion of fuel in its trucks, the procurement of goods, and the outsourced logistics. Levers being explored by Vanheede to reduce these hotspots include, for trucks for instance, increasing the biofuel blend, looking into alternative fuels or improving route planning in logistics to reduce the number of kilometers driven. For company cars, a decarbonization already being implemented is the transition to electric vehicles, notably by installing charging stations on its sites. Vanheede aims to have 146 charging points installed by the end of 2025. Lastly, regarding emissions linked to the procurement of goods, measures being studied include increasing the lifetime of use products, thereby decreasing the demand for new products, or sourcing goods that are produced in a more sustainable way, for instance with higher recycled content.

• The 2022 Scope 1 results are 3.000 tCO2 higher. This difference can be traced back to the emissions of the bio-methanization installation, more precisely the upscaling of the generated biogas to natural gas. This process was started in August 2021, leaving the process emissions and fugitive emissions underestimated for 2021. The numbers for 2022 are complete and represent 12 months in total.

• The 2022 Scope 3 results are 1.000 tCO2 higher, driven by an increase in the procurement and end-of-life treatment of consumable goods. Notably, single-use bags and small containers are more frequently used by Vanheede’s customers, which is reflected in Scope 3 twice, in the form of cradle-to-gate emissions of the production and the treatment of the used products at the end of their life.

* ESRS Disclosure Requirement E1-6: Gross Scopes 1, 2, 3 and Total GHG emissions

ALL – Going beyond Vanheede’s corporate inventory

Vanheede’s corporate inventory includes all greenhouse gas emissions for which Vanheede is directly and indirectly responsible. Without Vanheede, these greenhouse gasses would not have been emitted. This is purely the negative climate impact. However, Vanheede does not operate in a vacuum, but rather as a pivotal actor within a complex value chain. Vanheede’s operations also bring about positive climate impact in its downstream value chain.

Vanheede invests energy in collecting, sorting and treating the waste, which in turn, enables value chain actors to save emissions. Without Vanheede, these greenhouse gasses would still be emitted. However, Vanheede acts as an enabler to avoid emissions. Therefore, in order to have a holistic view of Vanheede’s climate impact, the avoided emissions – the other side of the medallion – need to be calculated as well.

OTHER

Uniform reporting to analyze sector performance

Even though there is a big variation in the waste sector, the process described above (standardized in line with the GHG Protocol) acts as a blueprint for sector peers to help them with the assessment of their own corporate inventory emissions. In turn, the intensity metrics enable the comparison between actors in the waste sector. Uniform accounting and reporting standards will facilitate taking informed decisions, thus accelerating the transformation to a carbon smart economy.

Essentially, 2 streams of avoided emissions can be distinguished. Firstly, waste that Vanheede treats itself, turning it into final (e.g., AlterCoal) or intermediate products (e.g., AlterPlast). These products are a substitute for virgin products, and thus, reduce the client’s emissions. Secondly, waste that Vanheede sorts, but not treats itself. Through enabling a more efficient treatment process, the total GHG emitted from disposal is cut down, thus reducing the climate impact of the entire value chain.

In a next step, Vanheede will assess the total GHG emitted of all waste that passes through. By comparing this with the status quo (as if Vanheede did not exist), the avoided emissions of all waste streams will be calculated. Not only give these numbers valuable insights for Vanheede’s up- and downstream clients, they also will allow to calculate Vanheede’s true “net” climate impact.

↑ Vanheede's climate impact

↑ Two levers to achieve net negative impact

What does the future hold?

Though the three focus points, the ambition of Vanheede is to maximize the positive climate impact of the waste sector and its clients.

Vanheede’s 2021 and 2022 corporate inventory already give an overview of where the big reduction potential lies for their own operations. This enables us to strategically assess the potential of all reductions opportunities and to prioritize them accordingly. Doing so, a reduction roadmap will be devised, which will act as a blueprint of Vanheede’s contribution to net-zero. Vanheede already started gradually implementing some of the measures above. This will be reflected in the GHG corporate inventory in the upcoming years.

Going forward, efforts are currently being devoted to improving the data monitoring. This, together with enhanced calculation methodologies, will increase the accuracy of the GHG corporate inventory year over year. Through transparent communication, Vanheede hopes to contribute to clear and uniform reporting standards for the entire waste sector. Furthermore, Vanheede aims to tackle the challenge of calculating emissions avoided thanks to its operations. Not only will this holistic net overview make it easier for Vanheede to assess the potential impact of reduction measures, but it will also allow customers to assess their emissions related to the waste they generated and help them make informed decisions to reduce these waste emissions.

“This project was not without its complexity or challenges. We have highlighted most of them. This is expected, as embarking on the carbon journey is a marathon rather than a sprint. As Greenfish, we find it critical to understand the key drivers of any organization we accompany in a transformation. Through our many conversations with Vanheede, we are convinced that this is a company that wishes to go beyond mitigating their own negative impact. Vanheede looks at the climate impact agenda through a larger lens. They realize that they are in a unique position to also drive transformation in the market. We find this both admirable and inspiring and wish them the very best of scientifically-underpinned luck in their carbon smart future!” -

Johanna Delmelle, Project Manager at Greenfish, Part of Accenture

The best destination for your waste

Environmental technologies play a key role in dealing with major environmental challenges: climate change, the scarcity of natural resources and the decline in biodiversity. Vanheede is working to change attitudes when it comes to managing waste and transitioning towards a circular economy. With our stakeholders, we are doing all we can to reorganise existing structures and processes. Thanks to Design-For-Recycling, we work with our customers as early as the development phase of their products. We help them reuse their recycled materials in house. By going above and beyond standard solutions and designing our own technology, we are investing in quality recycling, new primary materials and sustainable energy.

As a partner in the circular economy in our own right, we have been working for years on the optimal sorting of different waste streams so they are fit for high-quality recycling into new primary materials.

This commitment doesn’t only apply to our customers’ waste; we also set an example in house with our own waste streams. We put the emphasis on raising awareness and we save even more streams from the incinerator through at source sorting and re-sorting.

By encouraging prevention and the reuse of waste, companies can make savings while contributing to a sustainable society. The basis of EU waste management is the five-step “waste hierarchy”, established in the Waste Framework Directive. This sets out an order of preference for managing and disposing of waste.

• Prevention: avoiding producing waste in the first place by, for example, looking at the design of a product, recycling and the reuse of materials.

• Reusing materials and products

• Recycling materials and products

• Energy recovery: incinerating waste with energy recovery

• Landfill

These steps serve as a guiding principle for optimising our business activities, as well as those of our customers, and meeting sustainable development goals. Respecting this concept also helps create a positive image and earns you more trust from customers and stakeholders.

We have adapted these steps to create a version that includes co-processing. Vanheede transforms fractions of residual waste such as non-recyclable textile and plastics, into environmentally-friendly fuel and primary materials for sectors such as the cement, lime and steel industries. Using these alternatives to coal renders this waste 100% useful. So, on the one hand you have energy recovery through the heat generated during incineration and, on the other, the ashes created by incineration are used as a primary material in the cement, lime and steel industries.

Only a few techniques offer this guarantee that materials will be recycled 100%.

Own waste streams

We set a good example by treating our own waste streams knowledgeably and by sorting them in an optimal way.

17.104 tonnes of waste

87,65% recycled

• 16.309 tonnes of domestic waste

• 795 tonnes of special and hazardous waste

Maximum upcycling of material of our customers

Vanheede invests in permanence so that we can offer a proactive solution to challenges such as the importance of sorting at source, preventing residual waste and developing new recycling techniques.

815.684 tonnes of collected waste

98,51% recycled and valorised

Raising awareness

Vanheede raises awareness of the importance of efficient and ecological waste management among specific customer segments by emphasising sorting at source. We thus obtain higher quality primary materials. We help our customers achieve their sustainable development goals in terms of materials management.

1,7 The average amount of waste collected per address

• sector benchmark: 1,5

Vanheede is committed to sustainable healthcare

Health and sustainable development go hand in hand and Vanheede really gets that! So, in March we signed the “Green Deal on Sustainable Healthcare” with 150 partner organisations.

The main thrusts of the Green Deal on Sustainable Healthcare are a reduction in CO2 emissions in the healthcare sector and the sustainable and circular use of materials. Vanheede has thus committed to helping participating healthcare providers reduce their environmental footprint and their CO2 emissions over the next three years by proposing our MedyBin, a UN-approved container for high-risk medical waste. Our goal is to use this medical bin, made from 100% recycled primary materials, with our customers and contacts in the healthcare sector instead of bins made from virgin primary materials. Based on the number of containers supplied, we can calculate the annual equivalent CO2 saved and measure the impact of these actions in Flanders.

“With this Green Deal, we intend to help our customers in the healthcare sector achieve their sustainable development goals. Our MedyBin, made from 100% recycled primary materials, is a first step.” -

Frederik Van Braekel, Business Development Manager

MedyBin: our 100% recycled plastic container for high risk medical waste

This year, Ghent University Hospital and Vanheede Environment Group have been collecting high risk medical waste in 100% recycled plastic bins, the first of their kind on the European market. This represents a 45% reduction in CO2 compared to other containers made from virgin raw materials. Every year, Ghent University Hospital collects 55,000 medical bins, thus saving the equivalent of 82,500 kg of CO2. This ambitious partnership is in line with the two companies’ sustainable waste policies which are focused on reducing, reusing and recycling materials. The containers are made from plastic collected by Vanheede, which separates them by colour using innovative sorting processes so that they can be recycled into a compound that manufacturers can use straight away to make new containers.

“Right from the outset of this project, we opted for bins made entirely from recycled materials. This ambition complicated matters. So it took some time to find the right formula that met the stringent specifications of a medical container, but it was worth it. The bin is now UN-certified and meets the strictest quality and safety standards.” -

Jeroen Blancke, Sales & Sourcing Supervisor

Circularity demands partnerships

Vanheede Environment Group and Igepa Belux NV launched a pilot project in October 2022 to collect polypropylene (PP) sheets and turn them into circular products. The PP sheets collected from test customers by Igepa Belux are then processed by Vanheede. The aggregate produced by extrusion is mainly repurposed to make circular polymers used for sustainable applications. If this pilot is successful, the project will be rolled out on a large scale across the market.

“Circularity requires inventiveness and perseverance. We have to close the value chain of products and that creates a number of challenges. This project proves, once again, that this is possible, despite the challenges. In choosing partners with the right attitude, and ones that aren’t afraid to stick things out, we can rise to these challenges. By sorting at source and monitoring the quality of the PP material collected, we are able to obtain a high-quality new raw material. This takes us a step closer to a circular economy, in a sustainable way.” -

David Vanheede, CEO Vanheede Environment Group

Colruyt Group and Vanheede come full circle!

For several years now, Colruyt Group, a family firm, has been investing in agricultural land with the main goal being to preserve the land and continue investing in Belgium crops, and launch (innovative) new projects working together with farmers. In order to ensure the soil remains fertile, Colruyt Group has been working with Vanheede Biomass Solutions which supplied them with more than 1,000 m³ of digestate last spring. Digestate is an organically-certified, high-quality fertilizer. It is spread on fields located in the Hainault province.

This move shows how committed Colruyt Group is to running its agricultural lands in a sustainable way, by avoiding the use of chemical fertilizer and opting instead for natural products made from organic waste.

This enables Vanheede Biomass Solutions to upcycle the Colruyt Group’s organic waste into digestate which it then supplies to Colruyt Group to boost their agricultural production. All in all, it’s a great example of circularity!

“Sustainability has been part of Colruyt Group’s DNA for many years now. Several agricultural projects are in the pipeline so we can continue working towards this in various ways, together with farmers. Natural fertilisation is also of great importance and we are delighted to be able to apply this in practice thanks to our partnership with Vanheede Biomass Solutions.” - Saskia De Block, Colruyt Group

Our new sorting line boosts circularity

A new building has gone up at our Rumbeke site to house an automated sorting line (a Material Recovery Facility) which separates business waste into recyclable and non-recyclable materials. This means more recyclable material can be saved from the incinerator and instead contribute to the circular economy. Sorted recyclable material is stored in silos before being sent to raw material manufacturers.

A new building will also be built to centralise the various offices, meeting rooms, cafeterias and cloakrooms. A walkway will provide a safe connection between this block and the sorting lines. A larger car park is also planned for staff and visitors. A new traffic plan has been rolled out for the site; the loading and unloading area has been moved and a large parking area has been

created for trucks enabling checks on vehicle entries and traffic regulation to be automated.

This is also good news for our neighbours as all sorting, loading and unloading activity is now carried out within the plant, thus reducing the noise, odour and dust nuisances making their way into the environment. Reorganising the truck parking zone has also reduced the amount of time the trucks are forced to wait on the public highway, and revising the traffic plan has improved traffic flow on the site, which has a positive impact on the immediate surroundings.

Our biomethane unit working for the circular economy

Amount of biomethane that can be fed into the O RES network annually:

50 GW h

• meeting the needs of 8,500 inhabitants

In Quévy, our biomethanation unit helps the circular economy by upcycling organic waste into biogas which we then either turn into electricity and heat through cogeneration engines or feed straight into the natural gas network after being treated. While biomethanation is a natural process, making it available on an industrial scale requires expertise in several technological fields to maintain a constant level of biogas production despite seasonal fluctuations

in input. Our four digesters ensure constant biogas production. At the end of the process, the digestate is used as a natural fertilizer on fields, thus replacing chemical fertilizers.

“As a way to continue with our projects focused on circularity and sustainability, we are looking into the possibility of liquefying our CO2 so it can be delivered initially to industry and, in time, to the food industry. It could be injected into fizzy drinks for example.” -

Julien Pozza, Business Unit Manager

A new life for wooden pallets

In 2022, Vanheede Environment Group was able to collect 614 tonnes of pallets from wood waste. These pallets are resold through our partners and, when necessary, first repaired to meet required standards. By recovering these pallets, we make substantial savings on primary materials and avoid CO2 emissions. With the war in Ukraine causing a shortage of primary materials, reusing these products reduces our dependence. We are invested in reusing pallets and other streams more and more. Streams such as electronic waste and tyres.

“The main aim of a circular economy is to save on primary materials and to maintain products in their life cycle for as long as possible. This can be done by reusing and reconditioning products and recycling materials. Pallet recovery fits perfectly into this circular economy vision.”

- Judith De Koninck, Material Recovery Specialist

Reducing our environmental footprint

Climate change

• Electrification of our lorries and private cars

• The electricity consumption of production processes

• The CO2 emissions of transport and production processes

• Diverting methane (CH4) to our biogas engines

Water and marine sources

• Constantly monitoring water consumption

• Paving and covering sites to avoid wastewater infiltration

Collecting, sorting and processing waste are our main activities. We try to organise this in as sustainable a way as possible in order to limit our own consumption and our own impact on the environment.

Pollution

• Limiting disturbances (noise and dust etc.) for our neighbours

• Avoiding water, air and soil pollution

• The demarcation of installations to limit dust and the removal of noxious substances

Our main priorities right now are:

Use of materials and circular economy

• Our own waste

Biodiversity

• Contributing to biodiversity and strengthening ecosystems

Keeping water consumption under control

Total water consumption is tap water:

74%

• 8.793 m3 of tap water consumption

• 3.069 m3 of rainwater consumption

• 45.000 m3 of treated wastewater

Our leachate, closely monitored

Leachate means water that infiltrates a landfill and absorbs various contaminants such as organic material, heavy metals and other chemicals coming from the stored waste. This contaminated water has to be treated in a dedicated water treatment plant before being released into the environment to avoid any water or soil contamination.

We deploy several measures at our Rumbeke site to limit the quantity of leachate. Meanwhile, the landfill has already been covered with a protective membrane to avoid rain penetrating it. The water is evacuated by gravity into holding ponds before being released. The leachate is transported in tankers to third-party water treatment plants before being released with surface water.

Vanheede Environment Group uses tap water for day-to-day consumption. However, we have put in place measures to reduce this consumption by, for example, using rainwater to flush toilets and wash our trucks. On our sites, when the warehouses are not covered, rainwater that comes into contact with stored waste is treated as industrial wastewater and sent to third-party water treatment plants before being released as surface water, like leachate at our Rumbeke landfill.

From landfill to a natural treasure

40 hectares of nature zones

Our landfill is located in an Ypresian clay mining area. Clay is an important primary material in making bricks and tiles. After filling in the mine, the area will be gradually transformed into a 40-hectare nature reserve, in collaboration with Natuurpunt, the city of Roeselare, the West Flanders Provincial Council of Deputies and the Environment Department. This area, near Bergmolenbos in Rumbeke, is part of the city’s expansion plan that aims to create a green axis starting in Sterrebos. Foot, bike and bridle paths will be laid out and this will be a real plus for both the environment and locals. Biotopes will be created with slopes and water features designed to welcome rare bird and animal species. Thanks to this project, we are also restoring marshlands and wet meadows to give water-bound nature every possible chance. Storing water in buffer ponds will also prevent flooding in the event of heavy rainfall.

“In working with Vanheede, I have become aware of the importance of not focusing just on waste and landfill, but also on something attractive for the neighbourhood.” -

Jorik Muylle - Business Unit Manager Landfilling

Social Part 3

People

People are important to us!

Vanheede People statistics

WE ARE A FAMILY BUSINESS.

Health, safety and welfare are our top priorities. We recognise talent and encourage personal and professional growth, treating our staff with respect.

How we contribute to the UN’s SDGs

The Vanheede compass is our guiding principle for creating an inspiring working environment in which the wellbeing of our personnel is a central focus. Providing meaningful work with an eye to the future, a commitment to training and development, and a guarantee of safe and healthy working conditions helps us keep people committed and motivated.

Working at Vanheede means finding a home:

• Among some 900 colleagues

• Spread over 15 locations

• In an environment where French or Dutch is spoken

• Within a broad portfolio of business interests

People are purposely opting for a career at Vanheede

Vanheede has been a family-run business for three generations

Sustainability is an important issue for people in the Millennial and Generation Z age groups, who are purpose-driven and eager to contribute to important causes

In spite of today’s challenging labour market, Vanheede Environment Group always manages to attract and keep qualified staff. Not only do people appreciate working for a family-owned company, but they also purposely choose Vanheede for its mission, vision and meaningful business activities. People who are keen to contribute to making the world a more sustainable place typically look for work with more purpose, and, as an environmentally-oriented business, Vanheede Environment Group is very aware of this.

Secure career prospects with long-term opportunities for growth

What makes Vanheede an attractive employer?

Our staff always work close to home, anchored in the local community and are not required to relocate

Our flexible working hours are good for our staff

Long-term

Outstanding work-life balance: even our drivers are home every night

New-model vehicles benefit our staff and the environment

HR policy review in line with the new Labour Deal

The way people work has changed significantly in recent years. In response, Belgium updated its labour legislation to reflect new ways of working and to ensure more flexibility for both employers and employees, safeguarding the balance between work and private life.

Vanheede’s HR policy incorporates the conditions set out in this legislation, known as the Labour Deal, which took effect on 3 October 2022.

1. Flexibility for employees

Vanheede employees already enjoy benefits such as flexible scheduling of staggered working times, part-time work in a number of schemes (such as parental leave, leave to care for sick relatives and time credit), working from home and more.

The company is now looking at even more possibilities for flexible working, such as two-weekly schedules and a four-day workweek.

2. Right to switch off

Representatives from the works council and HR formed a working group to clarify a standpoint on the right of employees to switch off phones and email outside of working hours. The agreement they came to has been incorporated into the general working conditions.

3. Life-long learning

Anticipating a need for effective follow-up and management of staff training, we hired a training coordinator in 2021. The Labour Deal also addresses training, requiring a mandatory training schedule for staff and granting every employee 5 training days per year as from 2024.

An additional training officer was hired in 2023, and we have begun using a software package designed to support training schemes.

Fit for the job

Vanheede Environment Group is actively seeking the right person for the right job. Someone who fits with our image. At Vanheede, we take into account an applicant’s talent and their potential. This targeted approach has proved successful time and time again, and ensures a long-term commitment. A personalised starting plan guarantees good integration. It is much appreciated by our new members of staff.

“I have rarely seen that,” is a remark our new recruits often make. It creates a bond with our company, it gives them insight into the wider context in which they are working/to which they are contributing. Onsite coaching provides colleagues with continual training in their work within Vanheede Environment Group.

Training programmes follow on from each other throughout a career at Vanheede Environment Group. Enterprising minds are greatly appreciated. Colleagues are encouraged to look for any added value that they can bring to the company, in-house or externally. In practice, the entire process is conceptualised in the employee journey and will be refined over the coming years in consultation with all those involved.

Diversity and inclusion

At Vanheede, we are convinced that diversity is a strength and that inclusion is vital to our company’s success. Our commitment to this comes through in an employer and employee diversity and inclusion policy

Women among the workers

7,39%

Women among the drivers

2,27%

Women among the workforce

50,36%

We would like a greater percentage of our workers and drivers to be women, but the transport sector has always been male dominated. The number of women at Vanheede has risen in an encouraging way in recent years: a 22% rise in female full-time equivalents since 2020. Although this change is still only baby steps, it is the result of measures taken to attract female talent.

Among these measures, Vanheede has adopted a gender-neutral selection process for hiring staff, focusing on a candidate’s skills and experience rather than their gender or any other discriminating factor. Furthermore, since 2021 Caroline Vanheede has been working as one of the gender equality ambassadors in Belgium’s traditionally male-dominated waste management and recycling sector, serving as President of the Women in Recycling project set up by Denuo.

Professionalising the training policy

In order to preserve our advantage in the workplace and to support our growth and our professionalisation, it is crucial that we continue to invest in training our staff. That is why, in 2021, we hired a training coordinator whose role is to design, implement and optimise a training strategy for the entire Vanheede group. One of her main tasks is to monitor Vanheede’s growth as an organisation and the progress of our colleagues. This covers improving safety skills and digital competence across the board to ensure man and machine work together as well as possible.

“At Vanheede, we are aware that our colleagues are our greatest asset. So we strive to offer them every chance to grow and to develop their skills.”

– Lien Ghesquière, Training Coordinator

A certain number of basic steps have already been taken to turn this vision into reality: on the one hand we have gradually introduced a learning management system (EpowerHR) to run and monitor training properly. On the other, we now use an annual action plan to define and prioritise individual needs and those of the Group.

In addition, a second training coordinator has just been added to strengthen our team. This is necessary to achieve the goals of our sustainable training policy. As well as stimulating the growth and professionalisation of our organisation and our staff, the goal is also to guarantee a higher retention rate and meet our employment deal. We are convinced that this proactive approach will prepare us for the challenges of tomorrow and strengthen our position as market leader.

Safety, a long-term endeavour

Vanheede wants to do all it can to give advance warning about hazardous work situations and also continue raising awareness. Safety requires the cooperation and vigilance of every employee; it’s the only way to achieve our “zero accidents mission”.

In 2022, we register no fewer than 87 work accidents. That’s 87 too many!

To give us an idea of our results in terms of safety, we use two important yardsticks: severity and frequency rates.

Frequency rates measure the number of work accidents with absence, expressed through the ratio of the total number of work accidents occurring in the workplace leading to at least one day off apart from the day of the accident, over the total number of hours worked, multiplied by 1 million.

The severity rate measures the human damage caused by work accidents. The severity rate is the ratio of the number of calendar days effectively lost because of work over the total number of hours worked, multiplied by 1,000.

In order to reduce the number of work accidents, we are drawing up an annual action plan and are looking into several important, safety-related matters. Despite the willingness of some to do their best, we have noted that the annual safety action plan is not having the desired effect.

The graphics above show that, unfortunately, work accident figures are continuing to rise despite our current efforts. So we have decided that it is high time to change our approach. In the coming months, we want to work together on a multi-year plan that should be much more effective than the safety action plans of the last few years.

So what are the first steps in this plan?

Since safety should be at the forefront of all our concerns, we have already begun raising awareness among management. On 30/11/22, together with our partner StepStones for Safety, we organised a Vanheede Learns session at Rumbeke on setting up a safety culture within Vanheede. StepStones for Safety has also supplied some tools so we can reach this “zero accident” goal together.

At the end of 2022, together with the safety steering group, we decided to carry out a safety survey with all Business Units Managers and senior management. Through a number of questions, we wanted to find out what needed to be done to improve safety levels within the organisation.

The road to the “zero accidents per year” goal is still a long one but we will work on this together.

The Committee for a Pleasant Working Environment

With the support of the management board, the Committee for a Pleasant Working Environment develops ideas designed to make Vanheede a good place to work.

Projects are aimed at generating a sense of community, making the workplace comfortable and pleasant, marking career and industry milestones, demonstrating our appreciation for our staff and ensuring the health and wellbeing of our employees. Activities have included cycling up Mount Ventoux, offering affordable tickets for festivals and sporting events, providing refreshments during the Week for Waste Teams, collecting litter together before enjoying a fun team-building activity and encouraging people to cycle work by providing ‘Bike to Work’ bikes.

The aim of the Committee for a Pleasant Working Environment is to bring a breath of fresh air and enthusiasm to the workplace.

Social and circular; that’s how we see things!

Vanheede’s commitment to the social economy includes incorporating the skills of people outside the jobs market through the Westlandia (Ypres), Manus (Antwerp), Bewel (Genk), Mariasteen (Hooglede) and Interinser (France) organisations. Through this collaboration we benefit from unique skills and experiences, strengthening our ability to offer original solutions, while contributing to the personal and professional growth of these workers by integrating them into an inclusive and respectful work environment.

“Everyone deserves opportunities. And all you have to do is offer them and people seize them straight away. So cooperation is of benefit both to the company and those involved in the social economy.” - Koen Smits, Area Manager Antwerpen

Working with Interinser: human beings at the heart of a shared project

Vanheede Environnement, located in Billy-Berclau, has been working with Interinser since 2017. Interinser is a temping agency focused on helping those excluded from the labour market to get back to work through temporary contracts.

Interinser presents Vanheede with a variety of profiles, ranging from sorting operators to rippers and HGV drivers, and offers regular follow-ups to check these temporary workers are what we are looking for and to ensure they are able to stay with us for as long as possible.

7,51 FTE 12,3 FTE 14 FTE

Total: 33,81 FTE

In 2022, Vanheede once again hired two people from Manus, as part of our Antwerp recruitment and integration plan.

“Vanheede shows how open-minded it is by not necessarily looking for job applicants with concrete experience in the sector. This attitude makes it easier for them to hire different profiles from different backgrounds.” - Julien Merlot, Directeur Interinser

“Interinser’s strength lies in its reactivity and its ability to adapt to Vanheede’s needs.” - Stéphane Beaurain, Area Manager Hauts-de-France

A win-win-win relationship

By working with Interinser temps, Vanheede gets a chance to test their skills and motivation, and to ask Interinser to organise additional training for them before we offer them a permanent job.

Thanks to this collaboration, Interinser achieves its goal of restoring confidence to those excluded from the jobs market by offering them on-the-ground work experience.

In 2022, no less than 14 full-time equivalents from Interinser were employed at our Billy-Berclau site and five temps have been offered permanent contracts.

“In late 2018, I began working for Vanheede as a temping ripper. Working as a team with a colleague on a dustbin truck, I became interested in the job of a driver. In 2021, I was lucky enough to get funding from the temping agency Interinser to put in for an HGV licence and I went on a training course in October and December that year. After getting my licence, I carried on working as a temp, but this time as an HGV driver. Vanheede finally gave me a fulltime, permanent contract in September 2022. I’m so proud!” - Gérard Ducatez, chauffeur

Partnering with Special

Olympics Belgium for waste management during the National Games

Our “Infoblad”: ensuring transparent communication with our local residents

Our commitment to open and transparent communication with our local residents is unparalleled. That’s why we publish our magazine “Infoblad” every year to keep our Rumbeke neighbours informed about what’s going on at our site, what has been done over the past year and how it may impact their dayto-day life, thus providing them with a clear and detailed overview.

We also encourage locals to share with us any questions they wish to raise or comments they want to make because their opinion really helps us improve our commitment to the community.

Our goal is to maintain active and transparent communication with local residents to ensure a safe, pleasant and sustainable environment for all.

In May, Vanheede lent its expertise in collecting, sorting and managing waste by setting up an efficient sorting system for waste produced during the National Games organised by Special Olympics Belgium. These were held in Mechelen. These Games are a major annual event, bringing together more than 3,600 athletes with mental disabilities to compete in 23 sports. On top of offering sporting activities to people suffering from a mental disability, this partnership is also a chance to raise awareness among athletes and spectators about the importance of waste management. In other words, this is a perfect example of our company’s commitment to a more sustainable and inclusive future.

Financial Part 4

Profit

We think in terms of win-win-win!

Vanheede Profit statistics

WE ARE DEVELOPING A SUSTAINABLE FUTURE.

Every one of us makes the difference, for the stakeholder, the company and for himself. Profit is the oxygen that allows us to invest, innovate and organize in a clever way.

How we contribute to the UN’s SDGs

Our long-term vision is aimed at business continuity. Profitability and a healthy financial policy constitute the oxygen for entrepreneurship that enables us to maintain our focus on sustainable partnerships.

Investments in additional recycling, storage and sorting capacity

Unpacking zone in Quévy expanded

A new building measuring about 900m² expands the Quévy unpacking zone. An automated conveyor belt will enable us to bring waste materials into the facility for processing. This extension also makes it possible to:

• receive all streams (liquid and solid) in the organic matter zone,

• control the area surrounding the unloading bay,

• separate organic matter streams from production material streams,

• enlarge the material reception and preparation area,

• accept greater volumes for destruction, enabling us to provide an optimal response to each of our customers, with the possibility of processing larger tonnages,

• improve working conditions and quality for operators in this new, cleaner and better organised environment,

• make intensive activity safer, with a site better adapted to vehicles, drivers and production and maintenance staff working side by side,

• ensure our infrastructure and equipment lasts longer.

Vanheede to establish sorting facility in Engis

In late 2022, Vanheede Environment Group applied for a permit for a facility for sorting, regrouping and pre-treatment waste at its location in Engis. With no possibility to expand the Wanze location, a new site was needed, and Vanheede settled on a location at the Hermalle-sous-Huy industrial estate.

Soret takeover bolsters market position

In late January 2023, Vanheede Environment Group and Soret reached agreement on the takeover of Soret’s operations in Nivelles. The deal is in line with Vanheede’s strategy for sustainable growth and its interest in taking advantage of emerging niche opportunities. Activities at the Soret site will include container hire, running the sorting centre, supplying rubble and collecting non-friable asbestos.

“As a family company, Soret is a perfect match for our own business culture. Moreover, its location and activities are an ideal addition to our own group.” – Caroline Vanheede, Executive Director Environmental Services

Expanding activity at the Billy-Berclau site

Vanheede has invested €50 million in expanding its site at Billy-Berclau, with the aim of rolling out an innovative method for collecting and treating waste. The first phase of the project consists of extending the hazardous waste building. The non-hazardous waste building will also be enlarged to house a new sorting line to optimise recycling. With this investment, we hope to boost our current waste upcycling rate from 96% to 99% for the site as a whole.

Smart

Special Waste Logistic Center: major progress in treating special and hazardous waste

This ambitious project includes the construction of the first smart logistics and treatment centre for handling special and hazardous waste in the port of Roeselare. The fully-automated warehouse will be fitted with state-of-the-art technology for treating waste and will be linked up to an automatic “loop” that will carry products to and from it.

All this will be run by an advanced automation and digitalisation system. This project, which represents a total investment of some €54 million between 2021 and 2027, guarantees the efficient processing of waste while minimising the risks for employees and the environment.

A new pilot plant for treating plastic waste

This autumn, we will be opening a brand new factory at our Dottignies site. This "advanced mechanical recycling" factory - designed entirely by our team of engineers - will turn plastic waste into high quality primary materials that can be used to manufacture plastic products. To achieve this, we are turning to advanced purification techniques and water treatment processes that go beyond the traditional methods. This plant will enable us to give a new lease of life to 20,000 tonnes of polypropylene and polyethylene waste every year.

The whole recycling process will have a positive impact on the environment. By making circular use of plastics, we avoid plastic waste going for incineration and we avoid new fossil sources, such as oil, being consumed to produce more plastic. So here we are taking a major step in cutting greenhouse gas emissions.

A new wind turbine at Quévy

Our Renewable Energies Business Unit recently took delivery of a second wind turbine close to our Quévy site. It is installed in a brand new wind farm of eight turbines that has been running since June last year.

With a blade 131 metres in diameter set 84 metres above ground, this 3.6 megawatt turbine will provide enough electricity for some 1,700 homes on its own. The aim is to increase our production capacity so as to maintain the Vanheede Group’s energy independence and continue to meet our energy needs which are growing in line with our business activities and fleet of electric vehicles.

Balance sheet

Balance

The consolidated balance sheet for the year 2022 closed with a balance sheet total of €167,883K. The 2022-2024 major investment programme and incorporating Vanheede Windpower SRL in consolidation for the year 2022 have had a significant impact on several items in the balance sheet.

The book value of tangible fixed assets increased. Investments for the financial year amount to €26,263K, and include the construction of a new 3.4 MW wind turbine (incorporated in fixed assets under construction), the construction of a plastics recycling line, the extension of a hangar for our product unpacking line and taking out a long-term lease on a plot of industrial land; as well as annual investments in receptacles, rolling stock and machinery. With respect to accounting policies, there were no modifications compared to the previous year.

Amounts falling due within one year rose substantially in comparison to 2021. Outstanding trade debt has increased (in proportion to the increase in turnover), revenue to be collected has increased sharply (mainly green certificates granted, but not yet invoiced), there is an increase in VAT and recoverable taxes, and an outstanding leasing to be recovered.

Available liquid assets amount to €17,973K. This sum is affected by the sum borrowed for the construction of the new wind turbine. This also affects the liquidity ratio (currently 1.27). Liquidity is sufficient to meet all obligations in the short term.

Capital increased due to the positive result of the financial year (see info under ‘profit and loss account’ page 110). Provisions for risks and charges consist mainly of the established reserve for the post-completion phase of our landfill site.

In terms of debt, both long-term and short-term financial debts increased compared to the previous year. Regarding long-term financial debts, we note that on the one hand the subordinated ‘DACAR’ loan (Dacar: family holding of the Vanheede family) has reduced but, on the other, loans granted by the bank have greatly increased (because of the launch of the 2022-2024 investment programme). The short-term financial debt also increased. There is an increase in trade debt, due, in part, to investment invoices coming in.

Vanheede Environment Group’s solvency ratio has decreased slightly but remains very healthy at 46.10%. This takes into account the subordinated longterm ‘DACAR’ loan that is added to the capital.

Consolidated balance sheet (in KEUR) 2022

Key figures The annual accounts for the 2022 financial year (01/01/2022 - 31/12/2022) of Vanheede Environment Group nv and its subsidiaries, as well as the consolidated annual accounts, can be consulted free of charge at the Central Balance Sheet Office of the National Bank of Belgium. A brief overview of these accounts is provided in this sustainability report.

Profit and loss account

Non-consolidated turnover for the year 2022 increased by 10% compared to the previous year, rising from €215,686K to €236,029K.

Consolidated turnover increased by about 9% to €199,852K. The gross margin slightly decreased (in % of turnover) compared to the previous year, falling from around 62% to over 61%. In absolute terms, the gross margin increased by more than €7.8M (= + 6.9% compared to the year 2021).

Other operating income (operating subsidies and bonuses, a reduction in payroll tax and sundries) slightly increased and amount €1.8M.

Expenses for services and diverse goods (code 61) rose by over 18%. Rental charges (mainly for properties) have risen significantly, but the highest increases concerned energy and fuels (+50% compared to the year 2021).

Wage expenses (code 62) rose by over 11%. Other running expenses (code 64) remained relatively stable. In percentage terms, EBITDA fell from 18.55% as a proportion of turnover in 2021 to 15.05% in 2022. In absolute terms it also decreased (from €34M to €30M).

Annual amortisation of the consolidation of goodwill is stated separately under ‘consolidation as amortisation of consolidation differences’ and amounts to €1,072K.

Amortisation on intangible and tangible fixed assets increased by about 5% compared to the previous year. Depreciation remains limited, mainly due to the funds reserved for the post-completion maintenance phase of the landfill site.

Financial income increased (dividends received and including subsidies in the profit and loss). Financial expenses increased because of higher interest rates on new borrowing.

Exceptional income and expenses remain limited and mainly concern capital gains and losses on the realisation of fixed assets.

The consolidated EBITDA of Vanheede Environment Group amounts to €30,075K (- €3,980K compared to the previous financial year) in absolute figures. The EBIT decreased to €10,726K (- €4,814K).

Taxes dropped significantly compared to the previous year.

The consolidated profit and loss account as per 31 December 31/12/2022 closed with a consolidated profit of €7,151K.

Consolidated profit and loss account (in KEUR)

Summary of consolidated profit and loss account (in KEUR)

Non-consolidated profit and loss account (in KEUR)

* See explanation page 107 - balance sheet

The non-consolidated turnover of the year 2022 has increased by 10% compared to last year; i.e. K€ 215.686 naar K€ 236.029

Investments evolution of investments (in KEUR)

Turnover evolution of turnover (in KEUR)

EBITDA evolution of EBITDA (in % of the consolidated turnover)

EBIT evolution of EBIT (in % of the consolidated turnover)

Amortisations evolution of amortisations (in KEUR) excluding amorti sati ons consolidati on goodwill

Operational cash flow evolution of operational cash flow (in KEUR)

Part 5

Governance

Pride

We are proud of what we realize!

WE ARE ALL PROUD AMBASSADORS OF OUR COMPANY

We fulfil our ambitions in a transparent collaboration. By doing this we stay faithful to our culture.

How we contribute to the UN’s SDGs

Loyal partnerships are based on trust. Common interests, ethical conduct and integrity ensure that we can always look each other in the eye.

Our commitment to a quality customer experience

At Vanheede, we are aware that customer satisfaction is essential to our success which is why we attach so much importance to our annual customer satisfaction survey. We garner valuable information from this and we use customer feedback to offer an ever better service, ever more tailored to their needs and expectations. We are convinced that this proactive approach will enable us to continue lifting our service to a higher level, all while we strengthen our position as market leader.

Our acclaimed digital tools for improved overall satisfaction

Aside from the general satisfaction score of 4.2/5, we noted that customers who use our digital tools, such as the myVanheede customer portal and the Vanheede Plus app, are more satisfied with our overall service than customers who don’t (yet) use them.

Indeed, our digital tools provide our customers with quick and easy access to all our services, while also offering better visibility of their activities and greater autonomy over their waste management.

Vanheede retains customer trust and loyalty

To calculate the Net Promoter Score, we asked our customers to say, on a scale of 0 to 10 how likely they were to recommend Vanheede to their friends or colleagues:

• 11% gave a score between 0 and 6

• 45% gave a score between 7 and 8

• 44% gave a score between 9 and 10

So our Net Promoter Score is 34, which is indicative of how strong our customer trust and loyalty is. Although this score is 3 points lower than last year, it demonstrates our customers still consider us a reliable partner and that they are prepared to share their satisfaction with their entourage.

A fluid customer experience

The Customer Effort Score enables us to measure the quality of our interaction with customers. We asked them to indicate how much effort it took to get their requests processed. Although our products and services can be complex, we aim to become the most transparent and user-friendly player in the sector by making the customer experience as fluid as possible.

The survey results show that customers enjoying the full Vanheede experience, by using the myVanheede customer portal and the Vanheede Plus app, say they have to put in minimal effort in order for their requests to be processed (CES: 1.92/5). The lower the score, the more fluid the customer experience.

Trust confirmed

Trustpilot’s TrustScore is a concrete way of measuring the general satisfaction of new customers, based on authentic reviews. We are proud of our score of 4.4/5, which reflects the faith our customers have in the services we provide.

Code of Conduct – Our guide to working with integrity

Our Code of Conduct sets out the behaviour we expect staff to display towards their colleagues, their superiors and the entire organisation. Sometimes employees don’t know what the right thing to do is. Our Code of Conduct can be very useful in these circumstances. It enables them to adopt an honest and ethical attitude. It helps them make good decisions on a daily basis and stand up for our values.

In-house audits as an improvement tool

As an organisation, we attach great importance to in-house audits carried out at regular intervals. A specific in-house audit plan is prepared each time for a period of three years. In-house audits are carried out by an in-house team of auditors, trained for this purpose.

In-house audits serve primarily to check whether the organisation and processes are running smoothly. But perhaps more importantly still, in-house audits often help identify weaknesses such as ineffective methods or gaps, resulting in suggestions for improving and optimising processes. So, overall,

in-house audits are important tools for our organisation to measure performances, manage risks and stimulate continual growth.

In-house audits thus also contribute to raising awareness about quality and the environment and the need for the company to keep getting better all the time. In-house audits also play a role in fostering a culture of improvement and innovation.

The Management Review as an assessment tool

At regular intervals, and at least once a year, we assess our entire organisation through the Management Review. It is then assessed by management, working together with the owners of the process. During this Management Review, the Group’s performances are assessed. Management reviews the reporting period. Actions arising from previous assessments are discussed and their effectiveness is examined. We also take into account the context in which we are operating and significant changes that are pertinent to the running of the company and its strategy. The organisation’s

general performance is assessed and we take a particularly close look at whether goals have been met. We factor in the assessment of the company’s processes. Based on this in-depth assessment, decisions are made about possible improvements, the resources required and the need to adapt the strategy, the organisational structure and how the company is operating.

Declarations Sustainability report: approach

Scope and approach

This 18th sustainability report covers all activities of the Vanheede Environment Group nv (registered office: Beekstraat 25, 1080 Brussels, Belgium) in Belgium, Luxembourg and France. The report pertains to results in the year 2022 and is prepared according to GRI standards: Core option. As a family business, Vanheede recognises the importance of reporting annually on its sustainable business practices and results. Previous sustainability reports are available at www.vanheede.com.

CEO David Vanheede is a permanent member of the Board of Directors (Vamastine bv), along with commercial director Caroline Vanheede (Vanica bv) and director Claudette Descamps (Imdaca nv). They receive advice from an advisory committee consisting of an external expert, Karel Gielen, and an internal expert, Evelyne Vanheede-Decrans.

Balancing stakeholder and company interests

To identify the focal points of our strategy for a sustainable future, we took the following steps:

1. An internal brainstorming session aimed at addressing key questions

• What added value does Vanheede represent? Where does Vanheede make a difference, whether for itself as a business or for its partners and customers, society, or the environment?

• For which social and other trends and challenges does Vanheede hope to contribute solutions?

Brainstorming provided us with a longlist of relevant topics that we measured against the CSR sector passport for environmental companies compiled by our sector federation, Denuo, as well as sustainability reports issued by colleagues in our sector in Belgium and elsewhere.

2. Identification of challenges that are also ‘material’ aspects

These are issues that are important factors in Vanheede’s long-term strategy but also with regard to meeting the expectations of our stakeholders.

To clarify who our stakeholders are, their interests, their impact on our operations and the extent to which they support our organisational goals, we used stakeholder mapping and took account of the following criteria:

• what is this stakeholder’s impact/influence on Vanheede?

• what are this stakeholder’s interests vis-à-vis Vanheede?

Our primary concern was to identify stakeholder interests for a number of internal stakeholders. Some of our employees and managers shared their insights and challenges for the future.

3. Expansion to include a number of external stakeholders

In 2015 we expanded this approach to include a number of external stakeholders. With the help of the CSR think tank, we decided to extend our investigation beyond the international GRI reference framework for sustainability reporting, and also look at how we could contribute to the UN’s Sustainable Development Goals (SDGs). The fresh perspectives that think tank members provided regarding entrepreneurship and the potential opportunities and challenges that lie before us proved to be of real added value.

4. GRI-standards

In 2016 and 2017 we shifted from GRI G4 directives to GRI standards for our reporting.

5. In-depth interviews with selected essential stakeholders

In 2018, Vanheede’s 50th anniversary seemed like the perfect moment at which to conduct in-depth interviews with selected essential stakeholders to discuss sustainability issues that are relevant for us. We collected their insights in the ‘about tomorrow’ section of our 2017-2018 sustainability report. Apart from this, we submitted the Vanheede sustainability policy to Master of Business Administration and Commercial sciences students at the Brussels campus of KULeuven, who carried out a thorough analysis in the scope of their study subject Corporate Social Responsibility (lecturer: Anouk Van de Meulebroecke).

6. The big Vanheede stakeholder survey

In our rapidly changing society, the interests and expectations of our stakeholders are also subject to change. To gain a better understanding of current market dynamics and apply them to our sustainability strategy, we opened up a broad dialogue with our stakeholders in 2020-2021.

Methodology

1. We compiled a long list of 100 socially relevant questions pertaining to the domain of our work.

2. We conducted an in-company dialogue to identify the 25 most relevant questions pertaining to the waste collection and waste processing sector, and then assessed their importance.

3. We conducted a dialogue with internal and external parties to assess the relevance of the 25 most important themes.

4. We compared our own interests with those of our stakeholders in order to compile a materials matrix.

7. Vanheede and the Corporate Sustainability Reporting Directive (CSRD)

On April 21, 2021, the European Commission adopted a proposed directive on publishing information’s about the sustainability of companies (CSRD). This new regulation, which will be rolled out gradually from 2024, considerably expands the obligation to report on sustainability in order to boost the transparency of progress companies are making in this field. The general goal is to put to good use our potential and to position Europe as a pioneer in the transition towards a completely sustainable and inclusive economic system, in line with the European Green Deal and the Sustainable Development Goals drawn up by the United Nations.

At Vanheede, we decided to get started on our transition straight away, as part of our fundamental commitment to more transparency and sustainability. Transparency and complete clarity by 2026, combined with the mandatory verification of reported sustainability information will improve the reliability of data. This will strengthen sustainability initiatives by requiring tangible action.

8. Risks and opportunities

Thanks to GRI reporting, for several years now we have assessed our priorities in terms of their impact on people and the environment, from the point of view of stakeholders and the organisation (the materiality impact). Added to this materiality impact are the results of the risk matrix. This enables us to factor in the main risks and opportunities, avoiding or minimising the harmful consequences of risks, while also strengthening our ability to seize opportunities (financial materiality).

9. Double materiality and stakeholder involvement

We strongly believe in the value of the double materiality approach. In this report, we present a narrower materiality assessment. We see this as a continuous path and we are opening discussions with stakeholders in 20232024 so as to hone our materiality assessment. This will provide the basis for a more rounded report which will be drawn up in 2026. This report will meet ESRS requirements and standards which will be approved and published during the year.

General disclosures

European sustainability reporting standards (ESRS) require clear and transparent communication on the following matters:

Theme

Explanation and metrics

BP-1 General basis for preparation of the sustainability statements Approach to sustainability reporting

BP-2 Disclosures in relation to specific circumstances Not applicable

GOV-1 The role of the administrative, management and supervisory bodies

GOV-2 Information provided to and sustainability matters addressed by the undertaking’s administrative, management and supervisory bodies

GOV-3 Integration of sustainability-related performance in incentive schemes

An in-dept look at our organisational structure

Under development

Under development

GOV-4 Statement on sustainability due diligence Our policies

GOV-5 Risk management and internal controls over sustainability reporting

Under development

SBM-1 Market position, strategy, business model(s) and value chain How are we shaping our future?

SBM-2 Interests and views of stakeholders

What major topics do our stakeholders believe are important?

Reference

ESRS 2 BP-1

GRI 2-1, 2-2, 2-3

ESRS 2 BP-2

GRI 2-4

ESRS 2 GOV-1

GRI 2-9, 2-12

ESRS 2 GOV-2

GRI 2-14

ESRS 2 GOV-3

GRI 2-18

ESRS 2 GOV-4

ESRS 2 GOV-5

ESRS 2 SBM-1

GRI 2-6

ESRS 2 SBM-2

GRI 2-29

SBM-3 Material impacts, risks and opportunities and their interaction with strategy and business model(s)

In what context does our group operate?

ESRS 2 SBM-3

IRO-1 Description of the processes to identify and assess material impacts, risks and opportunities

Approach to sustainability reporting

In-house audits as an improvement tool

The Management Review as an assessment tool

IRO-2 Disclosure content on policies and actions Our targets

DP-C Policies adopted to manage material sustainability matters

DC-A Actions and resources in relation to material sustainability matters

DC-M Metrics in relation to material sustainability matters

Our policies

How are we shaping our future?

Recognition for our efforts

This is Vanheede PASSION Environment PLANET

Social PEOPLE Financial PROFIT Governance PRIDE

DC-T Tracking effectiveness of policies and actions through targets

In-house audits as an improvement tool

The Management Review as an assessment tool

Environment

European sustainability reporting standards (ESRS) require organisations to provide full and transparent communication on their environmental impact, so that stakeholders can better understand the efforts being made by the company to promote sustainability. The “Environment” part of ESRS covers a wide range of topics, in particular:

• ESRS E1 – Climate change

• ESRS E2 – Pollution

• ESRS E3 – Water and marine resources

• ESRS E4 – Biodiversity and ecosystems

• ESRS E5 – Resource use and circular economy

In this sustainability report, we provide information as mandated under ESRS E1 (climate change) and, because it is highly relevant to our business sector, also under ESRS E5 (resource use and circular economy). During the 2023-2025 fiscal years, we will provide more detailed information on other environment-related topics that were identified in our double materiality assessment as having an important material impact.

Regarding climate change (ESRS E1), reporting must cover the following points:

Theme

E1-1 - Transition plan for climate change mitigation

ESRS 2 SBM-3 - Material impacts, risks and opportunities and their interaction with strategy and business model(s)

ESRS 2 IRO-1 - Description of the processes to identify and assess material climate-related impacts, risks and opportunities

E1-2 - Policies related to climate change mitigation and adaptation

E1-3 - Action plans and resources in relation to climate change policies and targets

Explanation and metrics

What does the future hold?

In what context does our group operate?

Carbon-Smart Economy

Vanheede’s Carbon Modelling journey

Reference

ESRS E1-1

ESRS 2 SBM 3

ESRS 2 IRO 1

What does the future hold?

Results and what they (can) mean

ESRS E2-1

ESRS E1-3

E1-4 - Targets related to climate change mitigation and adaptation We protect the environment

E1-5 - Energy consumption and mix See KPI chart Sustainable energy

E1-5 – Energy intensity See KPI chart Sustainable energy

E1-6 - Gross Scopes 1, 2, 3 and Total GHG emissions See KPI chart Climate footprint

ESRS E1-4

ESRS E1-5

GRI 302-1

ESRS E1-5

GRI 302-3

ESRS E1-6

GRI 305-1, 305-2, 305-3

E1-6 - GHG intensity See KPI chart Climate footprint ESRS E1-6

GRI 305-4

E1-7 - GHG removals and GHG mitigation projects financed through carbon credits Under development

E1-8 - Internal carbon pricing Under development

E1-9 - Potential financial effects from material physical risks, material transition risks and climate related opportunities

Under development

Within the resource use and circular economy (ESRS E5) theme, reporting must cover the following points:

Theme

IRO-1 - Description of the processes to identify and assess impacts, risks and opportunities of the use of material resources and the circular economy

Explanation and metrics

Approach to sustainability reporting

In-house audits as an improvement tool

The Management Review as an assessment tool

E5-1 - Policies related to resource use and circular economy The best destination for your waste

E5-2 - Actions and resources in relation to resource use and circular economy

The best destination for your waste

E5-3 - Targets related to resource use and circular economy We protect the environment

ESRS E1-7

ESRS E1-8

ESRS E1-9

Reference

ESRS 2 IRO 1

ESRS E5-1

ESRS E5-2

ESRS E5-3

E5-4 v Resource inflows

See KPI chart Maximum upcycling of material

The best destination for your waste

ESRS E5-4

GRI 301-1

E5-5 - Resource outflows

See KPI chart Maximum upcycling of material

The best destination for your waste

ESRS E5-5

GRI 306-1, 306-2, 306-3, 306-4, 306-5

In terms of environmental impact, our greatest impact is linked to our role in the circular economy and our carbon footprint, although we also pay attention to preventing air, water and soil pollution as well as noise pollution (ESRS E2 - Pollution) and to our impact on biodiversity (ESRS E4 – Biodiversity and ecosystems)..

Theme

E2-2 - Actions and resources related to pollution

E2-4 - Pollution of water, air and soil

Explanation and metrics

Limiting noise pollution

Data relating to CO2 emissions for the Vanheede Group give an idea of our impact on air pollution. However, the complete assessment of our impact on air, water and soil, etc. needs to be explored further.

We have already introduced measures to reduce our impact on the environment, such as optimising our energy consumption, reducing waste at source, using sustainable primary materials and training our staff in environmentally-responsible practices. We are determined to pursue these efforts in order to ensure a sustainable future for our planet.

Reference

ESRS E2-2

ESRS E2-4

E3-4 - Water consumption

Keeping water consumption under control

Our leachate, closely monitored

E4-3 - Actions and resources related to biodiversity and ecosystems

From landfill to a natural treasure

ESRS E3-4

GRI 303-4, 303-5

ESRS E4-3

Social

The “Social” part of ESRS covers a wide range of topics, in particular:

• ESRS S1 – Own workforce

• ESRS S2 – Workers in the value chain

• ESRS S3 – Affected communities

• ESRS S4 – Consumers and end-users

In this sustainability report, we provide information as mandated under ESRS S1 (own workforce). During the 2023-2025 fiscal years, we will provide more detailed information on other social-related topics that were identified in our double materiality assessment as having an important material impact..

Within the own workforce (ESRS S1) theme, reporting must cover the following points:

Theme

S1-1 - Policies related to own workforce

Explanation and metrics

Work regulations set the working conditions for all those employed by the company, without distinction of age, gender or nationality. They take into account legal, regulatory and equality provisions in force in Belgium. They form an integral part of employment contracts regardless of the manner in which these are concluded.

As soon as a contract is agreed, employee and employer are deemed to be aware of and accept the regulations and undertake to abide by their directions.

Cases not covered by the present regulations will be decided based on legal and regulatory provisions, or, failing that, by the works council, by applying the agreement reached between the employer and union representatives according to protocol.

Our culture, guided by our values, is the central theme for all our current or potential employees. The Vanheede compass informs, motivates, inspires and supports each employee throughout their employee journey at Vanheede.

Reference

ESRS S1-1

Work regulations

S1-2 - Processes for engaging with own workers and workers’ representatives about impacts

Furthermore, the following policies govern employment conditions and relations:

• Corporate social responsibility policy

• Diversity and inclusion policy

• Code of conduct

• Burn-out prevention policy

• Persons of trust

• Collective labour agreement (cct)

• Sectoral CCT

• Belgian law

• In-house and external unions

• Labour deal (right to disconnect, whistleblower procedure)

• GDPR directives

Our employees are essential to the smooth, day-to-day running of our organisation. So we listen to their ideas, questions and concerns. To this end, they are always able to address their line manager in an informal way.

Management also pays a great deal of attention to employee interests. The Works Council, the Committee for Prevention and Protection at Work and the union delegation get together regularly. In these consultative bodies, our employees are represented by delegates who enter into dialogue with the employer’s representatives, appointed by management.

The Works Council (CE) meets once a month (except for during July and August) and its purpose is to inform, consult, discuss and take decisions on important matters concerning the organisation and employees. It looks into business and finance matters and social matters too. So the Works Council ensures proper collaboration and communication between staff and management.

ESRS S1-2

S1-3 - Processes to remediate negative impacts and channels for own workers to raise concerns

The Committee on Risk Prevention and Protection at Work (CPPT) meets once a month (except for during July and August) and is responsible for promoting employee well-being and safety in the workplace. The committee has the right to take part in and be consulted when important decisions around the health, safety and well-being of staff are being taken. It is also down to the committee to inform employees about important matters relating to health, safety and well-being. The Union Delegation meets six times a year to discuss and reach decisions (unlike the CE and CPPT) on local and/or individual problems.

Vanheede has designated and trained persons of trust. The introduction of new legislation on whistleblowers will also complete this measure (the company’s own system will be put to the Works Council in May 2023).

ESRS S1-3

S1-4 - Taking action on material impacts on own workforce, and approaches to mitigating material risks and pursuing material opportunities related to own workforce, and effectiveness of those actions

S1-5 - Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities

Social PEOPLE

We have each other’s backs

S1-6 - Characteristics of the undertaking’s employees See KPI list Attractive employer

S1-7 - Characteristics of non-employee workers in the undertaking’s own workforce Under development

S1-8 - Collective bargaining coverage and social dialogue Union consultation is carried out via the Works Council, the Committee for Prevention and Protection at Work and the union delegation. During the preparation of a company CCT, external regional secretaries from the three national unions get together

S1-9 - Diversity indicators

At Vanheede, we are convinced that diversity is a strength and that inclusion is vital to our company’s success. Our commitment to this comes through in an employer and employee diversity and inclusion policy. See KPI list Attractive employer

ESRS S1-4

ESRS S1-5

ESRS S1-6

GRI 2-7

ESRS S1-7

GRI 2-8

ESRS S1-8

GRI 2-30

ESRS S1-9

GRI 405-1

Diversity and inclusion

S1-10 - Adequate wages

Unless otherwise agreed, workers’ wages are based on an hourly rate and employees’ salaries are based on a monthly flat rate. Wages must meet the minimum wage stipulated in collective labour agreements relating to work pay and conditions, concluded within the competent joint (sub) committee of the sector to which the company belongs for the worker concerned or, failing this, the collective labour agreements reached in this field by the National Labour Council. The employer is required to provide its drivers with a daily performance sheet. The employer and the driver are required to use this daily performance sheet to calculate the wages and also allowances. Workers, on the other hand, use a time card or some other performance recording system.

ESRS S1-10

Work regulations

S1-13 - Training and skills development indicators

Since a training coordinator was hired in 2021, a training strategy has been put together. Several parts of this strategy have already been accomplished:

• The gradual roll-out of a learning management system (EpowerHR) to run and monitor training properly from 2023-2024.

• An annual action plan aiming to identify and prioritise individual and group needs.

S1-14 - Health and safety indicators See KPI list Zero Accidents

Workers need to pay proper attention to their safety and that of their colleagues. They must inform the members of the Prevention and Protection at Work committee, or, failing that, members of the trade union delegation, or, failing that, the employer or their representatives, of any danger they notice concerning the goods, materials and equipment at their disposal. The employer is required to look into such reports and take the necessary measures. Pending a decision on such reports, workers are prohibited from using materials or equipment they deem to be defective or remaining in a dangerous situation. The employer or their representatives are required to:

a) abide by the provisions in the General Health and Safety Regulations (RGPT) as far as workplace health, safety and improvements are concerned and, more specifically, to only use personal protective equipment that meets safety standards and to keep such PPE in good condition;

ESRS S1-13

GRI 404-1

Professionalising the training policy

ESRS S1-14

GRI 403-1

Work regulations

Safety, a long-term endeavour

b) strictly abide by health and safety recommendations issued by sectoral agencies with specific responsibility for workplace health, safety and improvement;

c) ensure the necessary safety and sanitary conditions are present for work to go ahead;

d) inform staff of health and safety measures to be taken, especially prior to them carrying out work that presents accidents and/or occupational illness risks;

e) take immediate action likely to avert imminent dangers.

On a social level, our greatest impact lies in the way in which we treat our own employees. However, through our choice of partnerships, we can also influence work conditions among our suppliers (ESRS S2 – Workers in the value chain). Transparency towards our neighbours (ESRS S3 – Affected communities) and our commitment to customer satisfaction (ESRS S4 – Consumers and end-users) also form our core values.

Theme

S2-4 - Taking action on material impacts on value chain workers, and approaches to mitigating material risks and pursuing material opportunities related to value chain workers, and effectiveness of those actions

SS3-2 - Processes for engaging with affected communities about impacts

S3-4 - Taking action on material impacts on affected communities, and approaches to mitigating material risks and pursuing material opportunities related to affected communities, and effectiveness of those actions

S4-2 - Processes for engaging with consumers and endusers about impacts

Explanation and metrics

Social and circular; that’s how we see things!

Reference

ESRS S2-4

Our “Infoblad”: ensuring transparent communication with our local residents

ESRS S3-2

Partnering with Special Olympics Belgium for waste management during the National Games

Our new MRF sorting line boosts circularity

Our commitment to a quality customer experience

ESRS S3-4

ESRS S4-2

Governance

Within the “business conduct” (ESRS G1) theme, reporting must cover the following points:

Theme

ESRS 2 GOV-1 - The role of the administrative, supervisory and management bodies

Explanation and metrics

An in-dept look at our organisational structure

Reference

ESRS 2 GOV-1

GRI 2-9, 2-12

ESRS 2 IRO-1 - Description of processes to identify and assess material impacts, risks and opportunities

In what context does our group operate?

In-house audits as an improvement tool

The Management Review as an assessment tool

ESRS 2 IRO-1

GRI 2-25

G1-1 - Corporate culture and business conduct policies

Our culture and our values

Code of Conduct – Our guide to working with integrity

ESRS G1-1

G1-2 - Management of relationships with suppliers

As a sustainable business, Vanheede takes responsibility for its supply chain by adhering to a sustainable purchasing policy. Consultation and collaboration with suppliers and customers contribute to a transparent, efficient and advantageous purchasing policy that improves processes for all involved.

ESRS G1-2

Our policies

About this report

This is the sustainability report of Vanheede Environment Group, with registered office at Beekstraat 25, 1080 Brussels, Belgium. This report pertains to 2022; it is our intention to publish updates annually. Sustainability reports for other years can be found at https://www.vanheede.com/en/corporate-sustainability/

Since 2014, we have been following Global Reporting Initiative (GRI) standards in preparing our sustainability reports. As well as the GRI international benchmark framework for sustainability reports, we also look at how we can contribute to the United Nations Sustainable Development Goals (SDGs).

Our 2022-2023 sustainability report draws on this expertise and the support of our consultants, slidingdoors. But it also takes inspiration from the thinking behind the European Sustainability Reporting Standards (ESRS), part of the European Corporate Sustainability Reporting Directive (CSRD), which will apply to Vanheede from January 1, 2025. We see this as the start of a common path leading to fuller and stricter reporting over the next few years, within the framework of our commitment to transparency and value-creation for all our stakeholders.

Colophon

Edition: VANHEEDE ENVIRONMENT GROUP nv Dullaardstraat 11, 8940 Geluwe www.vanheede.com

Responsible editor

Kim Delvoye: p.a. Dullaardstraat 11, 8940 Geluwe

Contact Kim Delvoye, Marketing & Communication Manager You can send your reaction regarding this edition to kim.delvoye@vanheede.com

Special thanks to Audrey-Laure Verhost, Marketing & Communication Assistant

Photography

© Loïc Naessens Photography, Audrey-Laure Verhost

CSR expertise and counselling

© slidingdoors

Concept and realisation © www.magelaan.be

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