Posts Tagged ‘Acciona’

Marking Earth Day

22 April 2013

The business community and society at large are facing enormous pressures, all of them produced or influenced by human activity. Moreover, these pressures are bringing about permanent changes to the world we live in, and at a speed that far outstrips our ability to see them individually.  They are as follows:

10 Mega-forces

  • Over-population. Population growth and increased production and consumption are two of the most important factors, and nobody wants to discuss the matter or deal with it. In 1900 there were 1.6 billion inhabitants on the planet and in 1950, there were 2.5 billion; the year 2000 saw the figure rise to 6.5 billion, and the forecast for 2050 is 9 billion inhabitants.
  • Wealth.  The global middle classes (defined by the OECD as people with an available income of between 10 and 100 dollars per capita/day) will grow by an estimated 150% between 2010 and 2030.
  • Urban population. In 2009, for the first time ever, the population located in cities will exceed the population in rural areas, and in 2050 an estimated 75% of the world’s inhabitants will live in urban zones.  The resulting cities will require major infrastructure improvements, including construction, water and sanitation, electricity, waste, transport, public health, public safety and security and internet/mobile phone connectivity.
  • Energy for fuel.  Fossil fuel markets are likely to become more volatile and unpredictable as global energy demand escalates; there will be shifts in geographical trends in consumption; supply and production will face uncertainty and more and more regulatory changes will be introduced to combat climate change.
  • Climate change. This is likely to be the global mega-force that will hit all the others most directly. The economic losses stemming from the negative effects of climate change already come to more than 1% of world GDP.
  • Water shortage. According to estimates, by 2030 global water demand will outstrip supply by 40%. Businesses are likely to face water shortage, lower water quality, price volatility and corporate reputation challenges.
  • A shortage of raw materials. As industrialization in developing economies gathers pace, global demand for raw materials will increase drastically.
  • Food security. In the coming decades, the global food-production system will be subject to increasing pressure from mega-forces: e.g. population growth, water shortage and deforestation. In addition, food prices are expected to rise by up to 70% and 90% by 2030.
  • Debilitated ecosystems.   The diversity and wealth of ecosystems are vital for both humankind and all life forms on the planet.  Their deterioration could lead to lower levels of carbon absorption, and is likely to diminish the effectiveness of their benefits for humanity.

 

Juan Ramon Silva, ACCIONA’s Chief Sustainability Officer

Among the World’s Top 25 of the Social Media Sustainability Index

4 March 2013

ACCIONA ranks among the ” SMI-Wizness Social Media Sustainability Index” Top 25 companies. The index is compiled by the firm of consultants SMI-Wizness and comprises the companies with best practices in social media communication.

With a score of 77/100 points, 23rd-placed ACCIONA has improved its position considerably on the first SMI-Wizness Social Media Sustainability Index, when it came in at 59th place. ACCIONA is the third-ranked company and one of the leaders in the “New Emerging Channels” category.

According to this report, the social media sites that are used most for conveying sustainability values are Twitter (@acciona_EN) and Facebook (official page). Among the Top 100 companies:

  • 70 have a sustainability blog (similar to this one)
  • 15 have a Pinterest account (go to the ACCIONA Sustainability pin board)

The report takes a close look at the companies that appear in global indices such as the Dow Jones Sustainability Index, FTSE4Good and Newsweek’s Green Brands Survey, and how their positioning and commitment to sustainability are conveyed across social media.

One of the Company’s most noteworthy recent communication actions is the video of the Sustainability Master Plan which drew considerable attention following its dissemination across the corporate channels and their subsequent virality.

Sustainability Master Plan (Video)

8 February 2013

This video reflects through global data, what are the resources of this world to the demands of the population and the Sustainable practices oriented to meet this challenges, as proposed by ACCIONA through its Sustainability Master Plan.

Sustainable investment & divestment I

5 February 2013

2012 can be described as a good year if we bear in mind the growing appetite by investors to take into account Environmental, Social and Governance factors, when it comes to making investment decisions, despite (or maybe due to) the ongoing economic and market turmoil. Last year also saw the publication of a considerable number of reports on this kind if investment and, along with signs that the processes used to analyze these criteria are becoming standardized and that standards are converging, they point to a sector that is maturing.

According to the latest GSIA (Global Sustainable Investment Alliance) report on sustainable investment in seven regions of the world, asset managers everywhere are talking social, environmental and governance factors into consideration in their choice and management of investments, affecting more than 10 trillion euro’s worth of assets (US$ 13.6 trillion). This figure covers more than 21% of the total assets managed in the regions that fall within the reports’ scope, and comes as conclusive proof that sustainable investment has reached a worldwide scale. The lion’s share of the investment and management of sustainable assets (65%) are located in Europe, and 96% of these types of assets are concentrated in Europe, USA and Canada (Latin America is not included in this study).

To understand the nature of this investment trend we need to look beyond the overall figures. The report shows that the three most usual sustainable investment strategies are as follows: the “Exclusion” method (accounting for US$ 8.3 trillion in assets), involves excluding from investment portfolios specific investments or categories, such as companies, sectors or countries; the “Integration” strategy, which accounts for US$6.2 trillion worth of assets, and includes, explicitly, environmental, social and governance (ESG) risks and opportunities in the traditional financial analysis; and finally, “Engagement and voting on Sustainability matters”, which accounts for US$4.7 trillion worth of assets.

These three strategies are followed by “Norms-based screening” (US$3.0 trillion); this involves selecting assets according to their adherence to and compliance with internationals standards and norms, e.g. the UN Global Compact, and is the most common approach in Europe. Selection of the “Best-in-class”, accounting for US$1.0 trillion worth of assets, assesses the best companies in a given sector, their performance and their efforts and improvements based on ESG criteria.  This list ends with “Sustainability Themed” investments or assets linked to the development of sustainability, and “Impact investments”, made by companies, funds or organizations with the intention of generating a social or environmental impact as well as financial returns. These latter strategies account for US$83bn y US$89bn respectively.

Allia, a UK social investment organization, has just launched the first Social Impact Bond.  The Future for Children Bond is the first retail bond of this class, and is aimed at improving living conditions for teenagers at risk of social exclusion in the United Kingdom.

These figures are corroborated by other study published at the end of 2012, and in which

Eurosif underscores the fact that two thirds of these investment funds have grown by 35% since 2009.

According to the latest study on Sustainable Investment, “Sustainable Investing: Establishing Long-Term Value and Performance”, published by Deutsche Bank, companies that score highly in terms of Corporate Social Responsibility (CSR) and sustainability have cheaper access to capital and represent less risk for investors.

ACCIONA’s efforts where sustainability is concerned are being recognized by socially responsible investors. The company is a component of a number of sustainability indexes, such as the Dow Jones Sustainability Index, FTSE4Good, MSCI ESG Indices, STOXX Sustainability and the CPLI (Carbon Performance Leadership Index) Europe 300.

So we can safely say that the practices in and commitments to sustainability affect value, and that outstanding sustainability credentials are an ever-increasing important competitive advantage. Similarly, poor, controversial or negative sustainability credentials can lead to divestment by institutional or other investors and harm the companies affected. In a later post, we’ll be taking a look at a trend known as “Sustainable Divestment”.

The steady rise of Corporate Volunteering in Spain

24 January 2013

More and more companies are embracing Corporate Volunteering as part of their social strategy. Despite the current economic downturn and the absence of a specific strategic and legal framework in the EU, two studies, one by  the Observatorio de Voluntariado Corporativo,[Corporate Volunteering Observatory]  and another by Red de Voluntariado Corporativo Voluntare, [‘Voluntare’ Corporate Volunteering Network] detected a rise in the number of companies with Corporate Volunteering programs. According to Voluntare, 77% of the companies that were looked at in the study run a Corporate Volunteering program and 70% of these expect the number of programs to rise. These figures seem to indicate that as social needs have increased, so too has the spirit of solidarity.

Companies themselves are quick to acknowledge that Corporate Volunteering programs (regardless of their main activity) hold a number of clear benefits; first and foremost greater employee satisfaction and motivation, followed by employee engagement with the company’s CSR strategy. Improved community relations and enhanced corporate values come in at third and fourth place.

In 2012, four hundred ACCIONA Corporate Volunteers took part in activities in a variety of fields, such as education, help for the differently-abled, community support and providing access to basic domestic PV solar electricity systems.

At the same time, ESADE business school’s study on Corporate Volunteering models in Spain detected a lack of means for assessing the impact of programs. Despite the adverse economic situation, Corporate Volunteering has grown considerably over the past two years. However, improved metrics are required to gauge the impact of Corporate Volunteering, to accurately identify its advantages and to continue to foster this type of activity.

Corporate Volunteering is a tool that has arisen in response to employees’ concerns regarding the needs of society in general and socially vulnerable groupings. Now, more than ever, is the right time to give it a boost. ACCIONA is already doing so, and it would be a good thing to set our sights on increasing the percentage of companies that engage in Corporate Volunteering in 2013, a year that promises to be a tough one for many people.

ACCIONA’S Sustainability Master Plan 2015 as one of the Company’s business drivers

20 July 2012

The renewables, infrastructure and water company links its objectives directly to its activities and turns them into lines of action for building capabilities and competencies for sustainable development.

ACCIONA has structured its Sustainability Master Plan 2015 (SMP 2015) around nine new lines of action, with a focus linked directly to its activities. The Company has drawn up its road map as a plan aimed at generating distinctive competitive advantage that will make ACCIONA a leader in sustainable development in each of its areas of activity, mainly renewable energies, infrastructure and water. It is an approach that involves the entire organization, as well as ACCIONA’s suppliers.

The new SMP 2015 goes further towards approaching sustainability as a differentiating factor not only in management but also when it comes to drawing up ACCIONA’s offering; it also sets objectives that are linked directly to business activity. This area will gradually contribute more to drawing up tenders and bids.

Where innovation is concerned, SMP 2015 envisages 500 million euro’s worth of investment for the period 2010-2015 with the consolidation of the Technological Observatory; the latter detects, prioritizes and channels the critical information for the implementation of new technologies, while maximizing the leveraging of operational innovation with a savings target of at least 15 million euros.

Stepping up its efforts to ensure respect for the environment, the SMP specifies a number of quantitative commitments, e.g. a 15% reduction in the Carbon Intensity Index (mtCO2/sales), or improve environmental efficiency in the Energy Consumption Rate (TJ/sales) by 15% and in water consumption/sales by 7%.

In terms of responsibility towards society, the SMP 2015 undertakes an ambitious commitment related directly to the Company’s business: to implement a special methodology designed to evaluate the social impact of all of ACCIONA’s international projects.

The Plan also extends the scope of the Fundación Microenergía [MicroEnergy Foundation]—dedicated to providing renewable energy to isolated rural communities—which adds a new country to its list, while the Sustainability Workshop revamps its content and reaches out to new audiences.

The SMP also goes furtherin taking care of the Company’s people. Executive and Senior Management variable remuneration will be linked partly (on a percentage basis) to sustainability targets.

The Plan also sets out to strengthen the entire organization’s commitment to sustainability by providing continuous online training based on the Sustainability Workshop.

The Value Circle has been extended to make sustainability requirements of ACCIONA’s suppliers. This broader scope will be supported by specific online training programs and a catalog of products and services procurement which will be presented shortly.

In the sphere of good governance, the recent renewal of ACCIONA’s Code of Conduct has been supplemented by a set of Ethical Principles for Suppliers.

As regards Stakeholder Engagement, ACCIONA carries out regular consultations and now also takes a specific approach focused on the growing sector of socially responsible investors such as the initiative UNPRI.

ACCIONA continues its leadership in sustainability by taking an active part in the most highly acknowledged organizations. This year, the Company helped to prepare the ‘Rio+20 summit, Changing Pace,  as a member of the WBCSD Steering Committee. It also sat on the Caring for Climate Steering Committee, and participated in the Global Compact LEAD’s ‘SE4All’ (Sustainable Energy for All) working group.

 

Rio+20: Reasons for hope

18 July 2012

The recent UN Conference on Sustainable Development (aka ‘Rio+20’) ended in disappointment. Possibly, the initial expectations were too high; maybe the scale of the event itself, the self-proclaimed “Earth Summit”, bringing together more heads of state and government leaders than any other global meeting (not to mention a long and varied list of companies and organizations), holds the promise of exceptional outcomes, leading, quite reasonably, to frustration when those outcomes fail to appear.

ACCIONA kept very close tabs on the Summit and was at the event to take part in a number of forums, and we believe that it is not too optimistic to say that Rio+20 came up with positive results; they may not be as ambitious as many of us had expected, but at least they make it clear that, 20 years after the milestone event in Rio in 1992, humankind continues to advance inexorably towards a sustainable development model offering a seamless blend of economic growth, social progress and environmental balance.

1. Twenty years is a long time. Unlike the well-known and eponymous tango, it is clear that over the past twenty years we have come a long way in raising awareness on a global scale of the need for sustainable development for the future. The difference between the “Environment and Development” slogan for the 1192 Rio event and the “Sustainable Development” one for Rio+20 is not just about semantics; it is clear that we now take a far broader view of a model of sustainable development which encompasses many aspects of life, such as human rights, universal access to water and energy, biodiversity, climate change and using the green economy to eradicate poverty. The Rio-92 conclusions included 27 articles; the Rio+20 outcome document “The world we want” has 283, which highlights the fact that there is a genuine, and growing, concern and that sustainable development has shifted from a marginal to a central issue on the international agenda.

2. From Romanticism to Pragmatism. The twenty years separating both Earth Summits have enabled us to see the enormous difficulties involved in taking this reality to the amiable swell of well-intentioned Romanticism that impregnated the movement in its early days. When the challenge facing us is no less than to take good care of the planet for the generations to come, it’s easy to understand that hash reality has taken the place of the naivety that crisscrossed the initial thoughts on the subject. Today we know that it is impossible to promote sustainable development taking a Romantic approach and that it calls for a sizeable dose of pragmatism. Our rhythms—political, business or societal—are not necessarily in synch with the planet’s. So, there’s a specific and pressing need to reconcile short-term objectives and the medium-long view which will enable us to act not only on the basis of business results and electoral outcomes, but also with our sights set on the needs of the not too distant future. Harsh though it may seem, this is something we must learn from the lessons of Rio+20 if we are to carry on the process in years to come.

3. Talk is not always a waste of time. The lack of binding commitments is the accusation most-frequently leveled at Rio+20, and quite rightly too. Some observers have even gone to the trouble of counting and comparing the number of times that the expressions “we encourage” (50) and “we will” (5) appear across the 53 pages that make up the summit’s outcome document.
The truth is that, to mention just one of the summit’s more controversial issues, it is very disappointing to see that while the International Energy Agency (IAE) insists repeatedly on the need to do away with subsidies for fossil fuels in an effort to put a brake on climate change, the Rio+20 outcome document limits itself to a simple declaration on its willingness to reaffirm the commitments to this issue undertaken by a number of countries and inviting others do follow suit. Incidentally, some of those subsidies were as high as 409,000 million US dollars in 2010, six times more than the incentives for renewable energies.

Accordingly, press headlines poked at the summit, calling it “a talking shop” (REM), and described the outcome document as 283 pages of “bluff” (The Guardian). However, it is important to understand that there is a lot of diplomacy involved in international summits, and that they call for considerable skill when it comes to meshing opinions and reaching a final consensus, however insubstantial it may seem. But that doesn’t make them a waste of time. Without a doubt mandatory commitments would have made Rio+20 a better summit. But discussing these issues at a global level can never be considered a sterile exercise; the ideas expressed in these events help to serve as a guide and make up the bedrock of future actions, possibly less ambitious though certainly more practical, at other levels of decision-making (national, regional or local).

4. There is life beyond politicians. It’s true that s Barak Obama, Angela Merkel and David Cameron were not among the 88 premiers and heads of state gathered in Rio+20, and that the summit’s level of political representation was negatively skewed as a result. On the other hand, though, there was a strong and very visible presence of business and civil society, which was both encouraging and promising. Although worldwide political consensus is important—and, sadly, it takes a long time to get there—it is no less important to see that sustainability is capable of attracting considerable human and economic capital, a powerful energy which we need to harness in our quest for real formulas for cooperation between the different players involved and to call for greater and more effective political agreement.

5. And don’t forget the small print. Despite being short on major political commitments, Rio+20 has delivered the goods in other aspects in the way of second-tier commitments and agreements which should not be looked down upon. A case in point: it is worth highlighting the important progress made on incorporating sustainability into corporate reporting. Britain’s vice-premier Nick Clegg announced that his country would require UK-listed companies to report not only on financials but also on social and environment indicators; ACCIONA has been doing this for many years with its Triple Bottom Line (economic and financial, social en environment).These measures are in line with the move towards stepping up corporate transparency and leads to a more exhaustive evaluation of companies by highlighting the externalities related to their activities and the latter’s effects on their social and environmental surroundings.

In short, now we’ve got over the Earth Summit’s initial disappointments, we all (governments, business and social organizations) need to learn from the lessons stemming from the summit and make a concerted effort to understand that despite the urgency to solve short term problems, however serious they are, we cannot take our eyes off the essential task of ensuring a sustainable future for one and all. Rio+40 will have a lot to say.

Related articles:

Riominus20 – Chapter 3: The Legacy

9 July 2012

Two days after the Río+20 summit came to a close, on 24 June, news of the event barely took up four paragraphs in the Santiago de Chile daily “El Mercurio” and failed to make the pages of the International Herald Tribune. Ten days later, media interest in Rio+20 has all but disappeared, apart from an incident involving some crafty Rio de Janeiro villains who made off with money and documents belonging to Niger’s Education delegate. She was prevented from boarding her flight home and she’s still at a loose end in Rio enjoying the hospitality of a local translator. For its part, Rio’s foremost daily and Brazil’s number two in circulation terms, “O Globo”, held on 3 July a seminar on “Rio+20: The Legacy”, with Brazil’s Environment Minister, Ms. Isabella Teixeira, as guest speaker.

But what kind of legacy has Rio+20 left behind? The following five issues might point us in the right direction:
The first part of this Legacy that we need to look at is our own perception of the phenomenon: Rio+20 has come to represent the consecration of a certain type of narrative on sustainability:

Media are neither innocuous nor neutral where climate change is concerned and, possibly influenced by the parallel forum, the so-called “People’s Summit”, held on the other side of Rio and which called into question the role of business as a provider of sustainable development solutions, the media mirrored discontent and ire in statements such as “Rio summit closes among criticism for the weak accord without clear and measurable targets”; “failure for want of ambition”; leaders “did not take on the responsibility to impose actions, targets and schedules”; the result is “an abstract document far-removed from reality”, and so on.

The role of the media is not being taken into account in the perception and the speed required for change. In response to O Globo, Rajendra Pachauri pointed out that “a change in perception, priorities and direction is called for”. This process of change requires a huge communication effort in which media cannot be content to stand in the wings. Basically, some media appear to be more concerned with dishing up controversy than presenting the cold facts, and this favors the climate change negationist fraternity, as pointed out in the recently published “The Inquisition of Climate Science” which deals with the role of the media in the face of climate change.
Legacy number two comes in the shape of the progress made thus far. We can safely say that Rio+20 was definitely not a place for people who like jumping to conclusions, but, nonetheless, conclusions there were, namely:

In the first place, Rio+20 gives us an overall document which, in the words of the WBCSD’s new Chairman, Peter Bakker “confirms that the world still has a platform for seeking out shared solutions”. He goes on to say that “had it not been so, it would have been extremely hard to convey a message underscoring the urgent need for sustainability and the changes required”. We’re making progress but, to paraphrase Bakker, “surmounting a global emergency by means of a multilateral process, which involves getting 193 countries to agree on a text, is something from which we cannot expect miracles”. As UN Secretary-General Ban Ki Moon said only a few days ago “this agreement is a triumph of multilateralism”.

Thirdly, Rio+20 acknowledges and calls on companies to play a relevant role in achieving Sustainable Development, and highlights three aspects of the contribution that can be made by the business community: innovation, collaboration agreements and advising governments with recommendations on policy decisions, as explained in the Global Compact document “Overview & Outcomes” on the conclusions of the Corporate Sustainability Forum, an event held just days after the official Rio summit. This second legacy, however, turns out to be a double-edged sword: although it recognizes the private sector’s capacities and resources for innovation, collaboration and policy recommendations and puts the onus of responsibility for them on companies, there is no sign of companies’ official capability to influence those policies and regulatory frameworks, without which any recommendation is just a waste of breath.

In the fourth place, the clear overlap of the Rio summit’s three relevant final documents: The Future we Want, the official document signed by heads of state; Overview & Outcomes, the document that emerged from the Global Compact Corporate Sustainability Forum and, undoubtedly representative despite coming out prior to the summit, the WBCSD’s Changing Pace. All three of them, using more or less decorative prose, call for and acknowledge the need for urgent action on climate change and the private sector’s relevant role, and stress the importance of listening to all the parties involved in arriving at policies aimed at implementing measures. This overlap takes the focus off private sector participation and directs it at Sustainable Development. It would be a good thing if these organizations were to work together and coordinate their efforts (they are, after all, the first ones to call for such efforts) and thus gain in efficiency.

Fifth, Rio+20 leaves us with the feeling that the call for collaboration between governments, companies and civil society and the trend among the more forward-thinking companies* to adopt initiatives and not expect too much in the way of major accords, is swelling its ranks and more quickly than appearances would have us believe, with more and more companies and organizations getting directly involved in sustainable development. In recent years, the number of companies with Sustainability strategies in place has grown four-fold. And so we come away from Rio+20 with the feeling that we could be on the verge of a sea-change and that there is hope for a real shift.

*In this case “progressive companies” are those which have committed to and defend a certain way of doing business and are convinced of the need to take into account social and environmental factors when it comes to exercising their responsibility, and which actively and publicly participate in favor of policy changes aimed at fighting climate change, ensuring a carbon-free economy and striving for a planet fit for future generations.

Related articles:

Riominus20 – Chapter2

9 July 2012

This chapter concludes this brief look at the salient points of “The Future we Want”, the outcome document adopted at Rio+20:

47. Companies: the original document encouraged mandatory corporate reporting on Sustainability; the outcome document, however, merely acknowledges its importance.

84-85. Creation of a high-level forum: This is a step forward; at the Brazil summit the Sustainable Development Committee was not at the ministerial level. From now on, environment talks will be held at the political level rather than a technical one.

88. On the role of the UNEP: The UNEP will not become an independent agency, as initially requested, but some diplomats say that in the future it will go from the current 52 members to membership of all of the UN member-states, and that, although it is currently financed through donations, it will have its own budget set by the UN.

104: To ensure current commitments stemming from prior Sustainable Development summits, the original document called on countries to reduce the existing gaps regarding implementation; in the end, no specific actions on current sector-targets were decided.

139. Health: Call for steps to ensure universal health coverage. This coverage is referred to in the outcome document but the latter talks of its “importance” and makes no mention to health coverage as a “right”.

158. Oceans: Originally called for protection for the diversity of the high seas and international waters, as well as restrictions on fishing subsidies. The final draft mentions restrictions on subsidies. However, the intended reference to protection of biodiversity was removed at the last minute following pressures from Venezuela, USA, Canada, Japan and Russia.

193. Forests: The document originally referred to the conservation of forests and the fight on deforestation as one of the ways of achieving sustainable development. It was understood that through this recommendation, governments and international organizations would draw up concrete steps for reforestation. The final document recognizes that is important to deal with the issue but fails to list the appropriate forums.

238. Women: The document originally mentioned “women’s reproductive rights”. The final draft of the outcome document omitted the mention that in some countries the reference was to the right of abortion. The chairperson of the Global Fund for Women, Musimbi Kanyoro, spoke out against pressures from The Vatican to omit the expression “women’s reproductive rights”, which was finally left out. We cannot forget that the world population is on the rise and that, consequently, there is an increasingly greater demand for resources. These are two of the main factors behind Climate Change.

And finally, points 130 and 225. Energy: Although we’ve covered this issue previously, it’s worth stressing that perhaps as a result of pressures from OPEC member states, one of the critical issues, namely the elimination of fossil fuel subsidies, warrants no more than a paragraph and is banished to the Consumer section (22) when, by rights and according to logic, it should be included in the Energy section (130).
In the original document, in section 130 it was stated that “we recognize the need for further action to rationalize and phase out subsidies”. In the final document, however, it was replaced by “countries reaffirm the commitments they have made to phase out”. In other words, we go from recognizing the need to take steps, to countries reaffirming the commitments that they have undertaken.

Related articles:

Is it possible to double the share of renewable energy in the global energy mix? Rio+20-June16

World Environment Day

5 June 2012

Today, June 5th, we mark World Environment Day, established by the United Nations General Assembly. This year, the theme is “Green Economy: Does it include you?” ACCIONA wants to join in the celebrations by making its environment commitment known to one and all.

We invite you to visit this page where you will find what we do at ACCIONA.


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