1. Social Commitment
  2. Main programs and initiatives
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Ferrovial

Ferrovial - Integrated annual report 2013 / Main programs and initiatives

Ferrovial’s Corporate Responsibility strategy confirms the company’s strategic vision of community investment. One aspect that is common to all Ferrovial social action is the involvement of employees in its charitable projects, whether by volunteer work either on-site or at offices (the Social Infrastructure program), or by choosing the projects that they wish to support (the “Juntos Sumamos” program).

Through this strategy, Ferrovial structures its social action via open charity drives, thus ensuring transparency and quality in its community investment initiatives.

In addition to the “Juntos Sumamos” matching-gift program (running since 2005), the third call for social assistance projects was announced in 2013, giving organizations in the Third Sector the opportunity to partner Ferrovial and getting Ferrovial employees directly involved via the Social Infrastructure Program.

Ferrovial is also a responsible donor that bases its donations on background information and subsequently checks the work of the NGO in question and the impact of the donation. The company works with Fundación Lealtad, a non-profit organization that aims to maintain the transparency and good practices of NGOs, and applies its recommendations in relation to the Third Sector. This collaboration guarantees that the counterparties with which the company works meet the standards of good governance and transparency.

The company has staff responsible for the monitoring and control of the quality of its social action projects to ensure that the funds are invested both appropriately and efficiently.

In 2013, Ferrovial carried out 334 social action projects, including the following:

Projects

Name of initiative BusinessOrganization benefiting
from the program
LocationArea of action
Social Infrastructure project in Quibdó (Chocó) Corporate Ayuda en Acción Colombia Socioeconomic development
Trucks key decision factors for toll road usage (Ph. I) Corporate Massachussetts Institute of Technology Spain Socioeconomic development
Project to establish a Global Change monitoring program in the National Parks network Construction Fundación Biodiversidad Spain Environment
Duke of Edinburgh Support Services Duke of Edinburgh Scheme United Kingdom Education and young people
Optimization of Electricity in Seawater Reverse Osmosis Desalination Plants Corporate Massachussetts Institute of Technology Spain Socioeconomic development
Social Infrastructure project in Cajamarca Corporate PLAN Peru Socioeconomic development
Sponsorship of Royal Academy of Arts Richard Rogers Exhibition Construction Heathrow Airports Limited, Laing O'Rourke, London Royal Academy of Arts United Kingdom Arts and culture
Improvement of infrastructure and equipment in food distribution centers in Madrid, Barcelona, Seville and Murcia Corporate Spanish Federation of Food Banks Spain Socioeconomic development
2013/14 season at the Teatro Real, Madrid Construction Teatro Real Foundation Spain Arts and culture
Promotion of culture Services  Guggenheim Museum Foundation Spain Arts and culture
Experimental Laboratory for Industrialized Architecture and Integrated Energy-Efficient Systems Construction University of Málaga Spain Others
Strefa Rodzica (Parents' Zone) Construction Selected Children's Hospitals Poland Health
National Math & Science Initiative  Toll Roads R. L. Turner High School   U.S. Education and young people
AMREF-ETHIOPIA Social Infrastructure project 2013 Corporate AMREF   Ethiopia Socioeconomic development 
Encouragement of initiatives that foster and promote culture Services Gran Teatre del Liceu Foundation Spain Arts and culture 
Juntos Sumamos: Philippines Special Corporate Manos Unidas  Philippines Humanitarian aid 
Juntos Sumamos: Philippines Special Corporate  Spanish Red Cross Philippines Humanitarian aid
Development of Urban Resilience programs by the United Nations unit in Barcelona (requested by the City’s Department for Environment) Services  Barcelona City Council Spain Others
Promotion of educational activities to promote the importance of cultural heritage Services San Sebastián de los Reyes City Council Spain Arts and culture
Cooperation to raise public awareness of the use of renewable energy in order to minimize energy consumption and its impact on the environment Services Alicante Provincial Energy Agency Spain Environment
Juntos Sumamos Program 2013 Corporate Cesal   Haiti Social welfare
Installation of Traffic Light & Pelican Crossing at Rathbeggan School  Toll Roads Rathbeggan School  Ireland Education and young people
Donation - Iberian Forest & Trade Network Conservation Project Corporate WWF  Spain Environment
Corporate Membership of the London Transport Museum - Membership  Construction London Transport Museum United Kingdom Education and young people

Cooperation and volunteering projects

“Social Infrastructure” Program

Ferrovial again showed active participation in cooperation projects, going beyond the traditional role of a mere funder and also providing technical assistance, technology and specialists to help carry out the projects.

In 2011 the company launched the Social Infrastructure program, (a model of good practice in the management of social-action projects for the Fundación Lealtad and Global Compact’s Pioneer Award), to continue the work carried out over three years in the construction of water and sanitation infrastructure in Tanzania, through the “Maji Ni Uhai” project (“Water is Life” in Swahili). This program consolidates an innovative cooperation model for the development of basic social water and sanitation infrastructures, in partnership with a reputable NGO that has experience in this area.

In 2013, the program had six projects underway in Ethiopia, Colombia and Peru, in partnership with the NGOs Intermón Oxfam, Ayuda en Acción, Plan España, Acción contra el Hambre, Ecología y Desarrollo, and Amref Flying Doctors. These projects amount to total investment of more than one million euro, with 75,000 beneficiaries and 14 volunteers.

The peculiarity of the form of cooperation established by the Social Infrastructure Program is truly innovative in the context of international cooperation and is based on a public-private partnership between a company, an NGO and the Regional or Local Governments in the intervention area. The relationship between Ferrovial and AMREF is slightly similar to a joint venture, in which Ferrovial, as well as giving funding, provides technology, know-how, and its proven ability to manage infrastructure projects.

Projects are managed jointly by means of a Joint Commission, made up of two representatives appointed freely by Ferrovial, and two representatives appointed freely by the NGO. The Commission usually meets four times a year and its competences include:

  • Ensuring that the partnership agreement is developed correctly.
  • Establishing responsibilities in case of failure to comply in any area.
  • Approving any change to the budget greater than 10%.
  • Approving technical changes to the project or to the infrastructures proposed by Ferrovial volunteers.
  • Approving, if applicable, the information received on expenses incurred.
  • Approving any substantial change to the project.
  • Assessing the reports from the Project Manager.

This innovative form of collaboration enables a more efficient management of resources and more transparency, and local communities will accept the projects better.

Business value

As well as a social impact, the “Social Infrastructure” Program has a positive effect on the following areas of business: 

  • Growth:

-Access to new markets: These projects help the company to get resources and experience in order to make the most of its community work in regions where it is present. This helps it to develop the know-how required to work with communities on projects that are directly related to the business.

-Competitive and social positioning.

  • Brand recognition and better reputation for the company.
  • Strengthening of Ferrovial’s position as a water treatment infrastructure management specialist.
  • Return on capital:

-Operating efficiency: Strengthening of corporate culture and collaboration between departments.

-Human Capital development: Development of new skills in volunteers, such as the adaptation to new environments, teamwork, and a culture of innovation.

-Improvement of the company’s position in SRI indices.

  • Risk management: Regulatory and operational risk.
  • Institutional Relations: Improvement of relationship with governments (Ferrovial’s main clients).:

Social Value

The program has had a social impact, thanks to each one of the projects:

  • Establishment of sustainable and accessible water supply systems in the Maore and Kihurio katas, with ONGAWA:

- Beneficiaries: 25,757 people.

- 12 employees working as volunteers.

  • Sanitation, drinking water coverage, quality and access in homes in San Marcos, Peru, with Plan España:

- Beneficiaries: 2,225 people.

 - 6 employees working as volunteers.

  • Water supply, promotion of sanitation and hygiene in the Bolosso Sore and Sodo Zuriya woredas, Ethiopia, with Intermón Oxfam:

- Beneficiaries: 7,200 people.

- 4 employees working as volunteers.

  • Optimization and water treatment in the Pacurita aqueduct, in the Municipality of Quibdó, Department of Chocó, Colombia, with Ayuda en Acción:

- Beneficiaries: 1,290 people.

- 6 employees working as volunteers.

The projects selected in 2013 to be carried out in 2014 are the following:

  • Construction of a water supply system for human consumption in the Santa Barbara area, Saylla district, Cusco, with ECODES:

- Beneficiaries: 3,771

  • Help people access the drinking water and sanitation infrastructure in the area affected by the internal armed conflict in the Department of Cordoba, with Acción contra el Hambre:

- Beneficiaries: 1,400

  • Improve access to drinking water in the Afar communities, Ethiopia, with AMREF Flying Doctors:

- Beneficiaries: 59,221

Relationship with the Millennium Development Goals

The projects that are carried out as part of this program aim to make use of development synergies with both local and global policies.

As the projects aim to provide access to water, they have a particular impact on Goal 7 of the Millennium Development Goals: “Ensure environmental sustainability”, Target 7C: “Halve, by 2015, the proportion of the population without sustainable access to safe drinking water and basic sanitation.” All the projects are health-related, because the main consequence of consuming poor quality water is digestive diseases, and these are the main cause of child mortality in these regions. It thus also has an impact on Millennium Development Goal 4: “Reduce child mortality” and 6: “Combat HIV/AIDS, malaria and other diseases.”

Indirectly, it also has an impact on goals number 1: “Eradicate extreme poverty and hunger” (having a source of clean water available is the main starting point to strengthen the economy of a community and manage to eradicate malnutrition); number 2: “Achieve universal primary education” (schools always have priority when deciding the location of water supply points); and number 3: “Promote gender equality and empower women” (girls and women are usually in charge of taking water to the home, and having a water supply point close by enables them to use that extra time to carry out productive tasks or go to school. Furthermore, in all the projects there must be an equal amount of men and women present in the community water management committees).

“Juntos Sumamos” donation program

Ferrovial has been working on the “Juntos Sumamos” program since 2005. It encourages the company and its employees to work together to meet the global needs of society and put an end to Human Rights violations. This is a matching-funds initiative under which Ferrovial employees decide to contribute a monthly amount to a social project and the company matches the amount donated.

Since its inception the program has grown steadily and so far the company and its employees have donated more than one million euro to 18 projects.

Ferrovial is a responsible donor that is actively involved in the projects in which it participates. Following the 2008 program, the company introduced a new procedure for selecting the projects to be funded in order to encourage the involvement of employees and increase the transparency of the whole process. It consists of a committee made up of Social Action experts from Ferrovial, who every year review the proposals put forward by NGOs and select the best projects. These are then submitted to the employees for their vote.

On completion of the project, the beneficiary is required to submit a final report on its financial and operational aspects, which is evaluated by the Ferrovial Social Action Team.

Ferrovial received 145 collaboration proposals from different NGOs in 2013. After analyzing technical aspects -the organizations’ solvency and transparency, experience in the sector, and sustainability of the proposal -, six projects were selected. Then employees voted for three of these.

Ferrovial and its employees have managed to raise a total of € 101,000 for these projects. This donation will provide funding for the winning projects, which involve combating child malnutrition in Haiti, with the NGO Cesal; the establishment of a Social Care Center for dependent elderly people in Palencia, Spain, with Fundación San Cebrián; and specialized medical care at Spanish hospitals for children in underprivileged African communities, with the Terre des Hommes Foundation.

Combating child malnutrition in the Cité Militaire neighborhood, Port-au-Prince. NGO Cesal.

“Combating child malnutrition in the Cité Militaire neighborhood, Port-au-Prince” was the highest voted project. In partnership with the NGO CESAL, Ferrovial will support a nutritional center located in the Haitian capital, providing aid to 1,140 pregnant women, lactating mothers and children under 5 years of age. Malnutrition is one of the main problems facing the country, and Ferrovial employees voted to help address this situation.  

The establishment of a Social Care Center for dependent elderly people in a rural region of Palencia, Spain. Fundación San Cebrián.

The company will also help to establish a Social Care Center for dependent elderly people in a rural region of Palencia, Spain. This was the second most voted project and will be run in partnership with Fundación San Cebrián. The initiative seeks to get operations underway at a fully constructed and equipped facility, to support 25 needy dependent elderly people in the region.

“Viaje hacia la vida” (Journey towards Life); providing specialized medical care in Spanish hospitals for children from underprivileged African communities. Terre des Hommes Foundation.

This project won the third highest number of votes and will be run by the Tierra de Hombres Foundation. The initiative aims to provide medical care at Spanish hospitals to children from underprivileged African communities. “Viaje hacia la vida” (Journey toward life) is a health program that seeks to address the problem of providing specialized medical care to children from African communities where such health services are deficient or non-existent. Ferrovial has donated € 23,037 towards funding the project, nearly half of the total required.

Value creation 
Value creation 2013 Million €2012 Million €2011 Million €
ECONOMIC VALUE GENERATED
a) Revenues
Sales 8,166 7,630  7,446 
Other operating revenue 10 17  15 
Financial revenue 22 28  181 
Disposal of fixed assets 108 115  229 
Income by the equity method 396  214  18 
Net income from discontinued operations (BAA deconsolidation) 0 0 165 
Total 8,702  8,004 8,054 
DISTRIBUTED ECONOMIC VALUE
b) Consumption and expenses (1)
Consumption 1,181 1,295  2,366 
Other operating expenses 3,710 3,323  2,258 
c) Payroll and employee benefits
Personnel expenses  2,351 2,102  2,018 
d) Financial expenses and dividends      
Dividends to shareholders (2) 293 734  367 
Financial expenses  434 377  542 
e) Taxes
Corporate income tax (3)  127 105  63 
Total  8,096 7,936  7,614 
RETAINED ECONOMIC VALUE  606  68 440 

(*) The data for 2012 have been recalculated because of the adjustments in the information presented, for purposes of comparison, in the Annual Financial Statements for 2013 with respect to that year.
(1) The Group’s social action expenses, together with the Foundation’s expenses, are set out in the Social Commitment chapter.
(2) In addition to the proposed against earnings for the year, by agreement of the Annual General Meeting of March 2013 a dividend was paid charged against the merger premium, for a total of 183 million euro.
(3) Corporate income tax charge against earnings before adjustment for fair value.

Program

YearOrganization benefiting from the programCountryBeneficiaries
Juntos sumamos
2005 Intermón Oxfam  Ecuador 80,000
2006-2007 Intermón Oxfam  Chad 5,000
2008 Intermón Oxfam  Tanzania -
2008 Intermón Oxfam  Mauritania 9,000
2008 Fundación Madreselva  India 285
2008 Fundación Agua de Coco  Madagascar 700
2010 Acción contra el hambre, Congregación Jesús María, Spanish Red Cross, Intermón Oxfam and Plan España  Haiti 5,900
2010 Acción contra el Hambre  Lebanon 2,025
2011 Fundación Entreculturas  Burundi 14,083
2011 Intermón Oxfam  Burkina Faso 2,544
2011 Amref (Maji ni Uhai II)  Tanzania 5,178
2012 Sant Joan de Déu Hospital (Barcelona)  Spain 3,200
2012 Rescate Internacional  Ethiopia 360
2013 Spanish Red Cross (Philippines relief).  Philippines N/A
Manos Unidas (Philippines relief).  Philippines N/A
2013  Cesal   Haiti 1,140 
2013 Fundación San Cebrián   Spain 25 
2013  Terre des Hommes  Spain 45
Social Infrastructure
2008-2011  Amref (Maji ni Uhai I)  Tanzania 51,462 
 2011 Spanish Red Cross (Volunteering)  Haiti 1,362
 2011 Ongawa  Tanzania 25,757
 2011 Plan España  Peru 2,280
 2012 Ayuda en Acción  Colombia 1,290
 2012 Intermón Oxfam  Ethiopia 7,200
 2013 Amref  Ethiopia 59,221
 2013 Ecología y desarrollo  Peru  3,771
 2013 Acción contra el hambre  Colombia  1,400
Social Action Spain
 2012 Spanish Red Cross (food distribution)  Spain  12,000
 2013 Fesbal (Spanish Federation of Food Banks)  Spain  7,000