Safe, sustainable, good and fair every time

Working sustainably and responsible entrepreneurship means that every business dealing must be sustainable, safe, good and fair for everyone involved. This requires proactive, risk-conscious, preventive and development oriented work. A sustainable supplier chain is essential and so is ensuring good conditions at Peab’s workplaces. Each business deal must be safe business through the application of good business ethics, transparency and sustainability in everything we do.

Code of Conduct is our guiding star

Peab’s Code of Conduct was updated in 2017 under the title Good and fair construction. Together with the Group’s core values it is the most important guidance we have. The Code of Conduct contains guidelines for how we should behave in our profession; towards each other, customers, suppliers and society at large. The Code is based on Peab’s core values, business ethics, business principals, human rights, work conditions and the environment. The Code of Conduct is applicable to everyone in the Peab Group, from the Board of Directors and executive management to each and every employee. We also require that the Code of Conduct be respected and complied with by our business partners. The Board of Directors establishes Peab’s Code of Conduct annually. In the autumn of 2017 Peab began launching the updated Code of Conduct to employees and this will continue to in 2018. The Code of Conduct is supplemented by three new policies which have replaced Peab’s previous Company Policy: the Environmental Policy, Quality Policy and Work Environment Policy.

Peab wants to have the most satisfied customers in the industry

The purpose of Peab’s annual SCI (Satisfied Customer Index) surveys with external and internal company customers and private housing customers is to provide us with a good understanding of our customers’ differing needs and requirements along with fostering long-term customer relations. In 2017 the total SCI result for the Peab Group was 75 (73) on a scale 1–100 which is above the average of 70 for all industries. This means that the Group met its goal for 2017.

On the road together with partnering

Partnering as a collaboration form is gaining speed in the construction and civil engineering industry and makes up an increasing part of Peab’s total project portfolio. Partnering is, as the name suggests, a partnership in which the general contractor and the customer, together with architects, consultants and other key players, organize and take responsibility for the construction process. This way of taking shared responsibility for value creation in a project is beneficial for all parties and is particularly suitable for complex projects. The key factors in partnering is openness, transparency and cooperation, all of which are completely in line with Peab’s core values and working method.

Community responsibility increasingly important to business

At Peab we welcome the increasing importance in companies’ responsibility for the community in connection with procurements. Demands such as asking companies to create employment locally for youths, immigrants or people who are physically impaired in connection to commissions are completely compatible with how we work to facilitate integration and contribute to the education and employment of youths.

Decisive factors for safe business

Peab’s business concept is based on quality every step of the way. The Group’s four business areas are in their turn dependent on a large number of suppliers and subcontractors. Peab’s purchases make up more than 70 percent of net sales and involve more than 40,000 suppliers annually. Quality-ensured suppliers and responsible purchasing characterized by a comprehensive view are all crucial to safe business.

Purchasing develops and becomes more specialized

During 2016 and 2017 our purchasing organization developed intensely. A large part of this work has been focused on implementing  category-based purchasing that complements project purchases. The method focuses on building up competence and collecting volumes in a particular supplier market in order to use as much leverage as possible from Peab’s size and potential. Category steering has in part focused on specialization and reinforcing resources from a purchasing perspective and in part on raising cooperation between business units and functions. The cross-function category team that was created in 2017 now continues its structured improvement work to ensure we are making the right deals and doing safe business.

Quality-ensured suppliers

A cornerstone of the concept safe business is making sure we work with quality-ensured suppliers in the right way in order to be able to handle risks and prevent irregularities. A clear set of demands and written contracts are part of the process of quality ensuring our suppliers. All contracts that Peab signs with suppliers clearly state the rules and requirements that apply to the particular project and to doing business with Peab in general. The Code of Conduct is always included in contracts and there is always an ethics paragraph. The ethics paragraph states the demands on the suppliers and applicable consequences if they do not live up to the Code of Conduct, proper working conditions as well as safety regulations on the work site. We are continuously improving the competency of the purchasing organization to ensure that they are well acquainted with the demands that we have on suppliers. In Sweden we learn from the work we have done in Finland with identification and tax controls. Please find more information about our Risk prevention work in Finland on page 27.

The importance of control and follow-up

It is of the utmost importance for a safe business to, from a sustainability perspective, regularly follow-up on how purchasing is handled throughout the organization and check suppliers. Among other things, we make quarterly supplier base controls resulting in approval or rejection. There are semi-annual checks at Peab’s workplaces concerning the work environment, work climate as well as working conditions and purchase-related issues. In 2018 we will focus on follow up our subcontractors in the so-called risk categories. This includes conducting revisions, targeted measures and following up supplier markets and subcontractors based on risk assessments.

Education and strict consequences develop our work with ethics

Peab does not tolerate corruption. Peab is one of the partners in the Joint Initiative Against Bribes and Corruption (JIABC) that works to jointly counteract bribes and corruption in the publicly funded construction and real estate sector. Peab’s work with ethical issues and against corruption is long-range and systematic. An important factor in our success is that we work with strict consequences in cases of infringement. Another is education. In 2017 we held a number of workshops at production workplaces where groups supervised by teachers from the Peab School went through ethical, production-related cases. This training will continue in 2018. Employees responsible for business deals are required to take a course in competition law which can be taken through E-education. In 2017 Peab also developed an E-education in ethics and anti-corruption which will be launched in 2018. This course is also obligatory for employees responsible for business deals.

Peab’s Ethical Council ensures that incidents in the Group such as infringement of laws and the Code of Conduct receive the same consequences, regardless of context or position. The mission and working methods of the Ethical Council will be further developed in 2018.

New channels for whistle-blowing

Transparency and openness are the watchwords for Peab’s development of the business and work climate. Employees have an important role in reporting any law infringements or serious irregularities. We prefer open reporting but this is complemented by an external web-based whistle-blower system that guarantees the anonymity of the reporter. As of the first part of 2018 the whistle-blower system will also be accessible to external reporters.

Events during the year

During 2017, no incidents of anticompetitive activities, breaches of the competition law or monopolistic behavior leading to legal action have occurred.

In 2017 Peab discovered one case of suspected corruption and nine internal incidents of suspected financial irregularities. The responsible manager handled the incidents with support from members of the Ethical Council. All of these incidents led to labor law measures and five of them, including the corruption incident, were reported to the police.

Number of employees trained in ethics

Number of employees per gender
Number of employees per employee category

The statistics regarding ethics courses include the number of employees that have gone through the Ethics Round, introduction education and Leading Peab. 

Sustainability aspects

  • Customer and supplier cooperation
  • Responsibility in the supply chain
  • Ethics and anti-corruption

The sustainable supplier chain is fundamental together with ensuring good working conditions at Peab’s workplaces.

75

In 2017 the total SCI result for the Group was 75, which means that the Group’s goal for 2017 was achieved.

The Code of Conduct is applicable to everyone in the Peab Group, from the Board of Directors and executive management to each and every employee. We also demand that our business partners follow the Code of Conduct.

Peab’s work with ethical issues and against corruption is long-range and systematic. Strict consequences and education and training are important factors for success.

4,958

In 2017 4,958 people were trained in ethics and anti-corruption, corresponding to a third of Peab’s employees.

In 2017 a large number of workshops were held at production workplaces where teams were trained in ethical and production-related examples of cases.

Risk prevention work in the supplier chain

Finland works proactively with preventing risks in every aspect of a project. Suppliers are quality-ensured through structured purchasing, characterized by openness and dialogue. The existence of a public supplier registry ensures that statutory requirements are met and that identity controls, including checks on the taxability of every individual on the work site, are being made. They have developed a support system in the form of a mobile application to facilitate registration of risk observations in daily work.