Ton Hillen (Heijmans): 'Rather overly Bold than Feeble Goals'
10-12-2024 | Interviewer: Gijs Linse , Hilde van der Baan | Author: Angelo van Leemput | Image: Gregor Servais
For many years Ton Hillen was a passionate rally driver. As navigator, he took part in many international races and, together with his driver, won numerous awards. In 2012, the CEO of the Heijmans construction company stopped racing. The reason? 'You cannot justify driving in polluting rallies when you have set sustainability high on the agenda.' Hillen then went on to become one of the first Heijman colleagues to drive an electric car. Despite his love of roaring engines, he has been accelerating silently ever since.
The executive is deeply concerned that today's political leaders do not seem to excel in leading by example. 'We are becoming increasingly alienated from each other. The question is whether we still form a society; we are more like a collection of individuals.' According to him, The Hague should be working to foster connection. 'It does not help if the differences in society are constantly magnified.' Nevertheless, Hillen is optimistic about the future, as evidenced by his conversation with Gijs Linse and Hilde van der Baan, partners at A&O Shearman. Together, they explore what companies should and can do now to ensure they have done 'the right thing' in ten years.
Hillen has spent half of his life at Heijmans. He started at age 31 as a developer at the Brabant company – then still a family business. Hillen was hired by 'Mr. Lambert,' the son of founder Jan Heijmans, and then moved up through the ranks. He experienced all levels of the company and joined the executive board in 2012. In 2016, Hillen was appointed as CEO. At that time, the company – partly due to the economic crisis – was in poor shape. Continuity was even at risk. But Hillen managed to pull Heijmans back from the brink. In 2025, Heijmans radiates self-confidence and makes bold choices. For example, the construction company wants to operate emission-free in Scopes 1 and 2 by 2030.
Although Heijmans has been a listed company since 1993, according to Hillen, the family culture is still very much alive. He cherishes it – he dislikes hierarchy. 'From mechanic, asphalt worker, carpenter to manager and CEO: we all do it together, although as CEO I do have a specific role.' Hillen inherited both the family culture and the love of construction from home. His father was co-founder of the Amsterdam construction company Hillen & Roosen, which still exists today. 'As a little boy, I experienced daily what went on in construction.'
How do you view the future – are we heading in the right direction in the coming years?
'I am positive about the future. I feel that the business world is making great strides. Not only in terms of sustainability but also in terms of inclusivity. We take responsibility and dare to hold each other accountable.'
What are the most important long-term strategic themes for Heijmans?
'In 2018, we chose the strategy of improving, increasing sustainability, and making smarter. Improving involves putting our core processes and financial performance in order. Sustainability is a must because otherwise we will not exist in ten years. Making smarter is crucial because of labor shortages; we need to make production processes more efficient and industrialized. Digitization plays a key role in this. In 2023, we refined and reaffirmed this strategy as ‘Together to 2030.’ We do this based on five strategic pillars: well-being, sustainability, connection, manufacturability, and team. Central to this remains the idea that we not only focus on construction; we are also focused on the quality of life for end users.'
Focusing on employees: the current generation seems particularly interested in money, prestige, and purpose. In other words, you need to pay employees well, provide a Tesla, and offer meaning. Is this your experience?
'Absolutely. To be honest, I myself once chose Heijmans because of the salary and the lease car, but that was a different time. Now new employees want, in addition to good employment conditions, to recognize a strong purpose at an employer. The employer must also genuinely act according to that social mission; otherwise, people will leave. For Heijmans, this means that as ‘creators of a healthy living environment,’ we are continually engaged in doing the right thing for people, but not at the expense of the planet. We seek a balance between, on the one hand, good accessibility and, on the other hand, better biodiversity. Also, between housing and nature conservation. We actively think about how to better deal with the increasing tension between drought and waterlogging. Thus, we work with partners to find integrated solutions. We believe it can be done together. People find that interesting.'
How do you ensure that Heijmans' strategy is meaningful for employees and keeps them engaged with the company?
'Of course, as the board of directors, we set the tone. But a slick story alone is not enough; you have to motivate people intrinsically, be intrinsically motivated yourself, and convey that. That is why we involved the group council – colleagues from upper management – in shaping the new strategy. We also had a reflection group providing critical input. This group included employees from all levels of the company. In this way, we came up with a number of bold statements. They are so ambitious that we realize there are some of them that we might not achieve. But I would rather have bold than timid goals. Many companies choose the latter option. It is safe – after all, you easily achieve your goal. But I prefer to look at it from an entrepreneurial perspective. By formulating bold goals, you really get people moving. If you set your goal at a 20% reduction, you can be sure you will not go beyond that 20%. If you aim for 30% or higher, you just might.
Between 2018 and 2023, we already opted for bold statements. At that time, we achieved 69% of them. What I find more important is that since then, we have seen progress on all the bold statements.'
One of your goals is that by 2030, half of the employees will have a different role. How do you prepare employees for this? Given the current labor market, there is a risk they might turn to competitors.
‘People need to be intrinsically motivated to make this transition with us. Yes, this can be challenging for people who have been working in a certain way for many years. That is why we will guide them well. The approach varies. Half of our people work outdoors – they are carpenters or lay asphalt. These colleagues will undergo a different kind of transition compared to those in management or support functions. A carpenter currently makes windows by hand, but soon these will come from a factory. We are not saying goodbye to these skilled workers. After retraining, they will do other things. This benefits them too, as they get more career opportunities and are healthier when they retire. People in construction often have physically demanding jobs. So, it works both ways. As the nature of the work changes, absenteeism decreases, and people can work longer.’
What does it mean for Heijmans as an employer if competitors do not make this shift? Is this an advantage or disadvantage?
‘I believe in our own course. We are ahead of the curve, and that is how it should be. As a listed company, we must comply with legislation, such as the CSRD directive. But beyond that, we have our own vision. We want to play our societal role and tackle major dilemmas as comprehensively as possible.’
Do shareholders understand this approach?
‘It takes courage, but I clearly explain our strategy during shareholder meetings. Since 2017, we have proven that this approach works. I believe in value creation based on the Rhineland model. When you explain that well, it is up to the shareholder to invest in Heijmans; that is not my call. But as CEO, I believe in our course and am always ready to explain it again.’
Does this apply to new shareholders as well? The construction sector recently faced high energy and raw material prices, and now significant investments are needed for the sustainability transition. That seems a bit much to ask.
‘Many investors and institutional investors in real estate especially choose construction companies with a sustainable strategy. I admit there were some shareholders who said, 'Do we really have to do this?' But the majority understand that significant investments are necessary. For several years, we have been investing fifteen to twenty million euros annually in emission-free building materials. We also have a factory in Heerenveen where sustainable wooden homes are produced.’
Do you miss the time when Heijmans was a family business?
‘Not really. As a listed company, the discipline of the stock exchange and the bank helps us stay sharp. When Heijmans was financially struggling, we needed to report extensively to the banks. We still do that. In the end, this is to your own benefit. Our focus is on both the long and short term.’
How do you assess the CSRD – is it mostly an administrative requirement, or does it also move your company forward?
‘The CSRD has certainly helped take the next step in sustainability. Reporting must be transparent; you cannot hide anything anymore. The CSRD is also important as a shared 'language' to facilitate sustainability within the supply chain. However, I think the regulation has gone too far. And I do not mean the goals themselves, but there is too much reporting with excessive detail required. I am also concerned about how SMEs are going to handle this. Our suppliers, often small business owners, will soon have to provide the same detailed information that we map out. This could become complex. I would advocate for more pragmatic reporting.’
Is the CSRD sufficient to steer in the right sustainable direction for the next ten years?
‘No. What really irks me is that our biggest clients, the government and semi-government, are exempt from the CSRD. Agencies like Rijkswaterstaat and TenneT do not have to comply with the CSRD, have their own sustainability requirements, and do not have to report extensively on them. I find that remarkable. How can you transform the entire supply chain if the clients have different rules? We are missing an important element, and that makes it more complicated.
Moreover, we can only really accelerate if the government sets consistent policy. The regulations regarding sustainable housing construction change regularly. Not only nationally but also locally, where a city councilor may want to impose additional sustainability measures. This hampers industrialization. The government must dare to formulate long-term visions and stick to them. Then companies will be willing to make large investments.’
Many companies are frustrated that the government constantly shifts the goalposts. How does this concretely affect Heijmans?
‘It would save so much time if the government would give the green light for a standard type of sustainable housing based on type approvals, just like in the car industry. Officials then would not have to constantly refer back, which would speed up the permitting process. What also does not help in solving the housing shortage is that any individual can object to new construction plans. We have around 4,000 homes in the pipeline that we could start tomorrow. But we cannot because of procedures at the Council of State or other legal bodies. It drives us crazy. It leads to delays of sometimes years. I advocate for giving more weight to the collective interest of the large group of home seekers and to stop the excessive consensus seeking.’
Heijmans has a goal of operating emission-free from Scope 1 and 2 by 2030. That seems tough.
‘It is. Maybe we will not achieve it, but there is an internal mindset that reducing CO₂ emissions is important. We are giving it our all. By the end of 2025, our entire vehicle fleet will be electrified. We are also opening a new asphalt plant at the end of 2026, which will reduce CO₂ by at least 50%. Since 2019, we have achieved an annual 10% reduction in CO₂ emissions. We are currently at approximately 23,000 kilotons of emissions for Scope 1 and 2 and 800,000 kilotons for Scope 3.
Say we are at 5,000 or 7,000 kilotons for Scope 1 and 2 in five years, then it would be interesting to know what it would cost us to actually get to zero. And weigh that against what it would yield if we focused those efforts on Scope 3. The emissions reduction there could be greater than investing the same in Scope 1 and 2. That would be an interesting calculation.’
There will also be dilemmas. Say you are asked to build an energy-hungry data center. Would Heijmans accept it?
‘I recently posed this question to our young board. They said no, a data center is anything but sustainable. I then suggested that they hand in their mobile phones. What I meant by that is that such a data center remains necessary because internet usage is not decreasing. We can, therefore, rather build a data center in the most sustainable way possible.
We are a doer company. With successful projects, we demonstrate that sustainable construction makes a difference. For example, in Rotterdam, at the Hart van Zuid project, we are building an underground water buffer. It collects, filters, stores, and reuses rainwater. This rainwater is used in the toilets of Ahoy and a nearby cinema, and Ahoy uses it to clean its windows. With infrastructure innovation, we contribute to sustainable water management in urban areas. We are also studying ways to improve biodiversity. For that, we employ biologists and ecologists. We are no longer a standard construction company.’
How does Heijmans do good on the 'S' of ESG?
‘Safety on the construction site is the highest priority. But we also focus on social safety and inclusivity. Due to the growing shortage of technical staff, Heijmans employs 70 status holders, including refugees from Syria. These people receive contracts, training, guidance through a buddy system, and assistance with housing and transportation. This has led to positive responses, but there was also resistance. We engage in conversation about that to build support. It worked. When people take an interest in each other, mutual understanding grows. I hope that we as society can also achieve that.’
This interview was published in Management Scope 01 2025.
This article was last changed on 10-12-2024