Working sustainably creates value for many

Peab believes every deal should be sustainable. To attain this we practice responsible entrepreneurship based on our core values, business concept, vision, strategic goals and our Code of Conduct. This means we also follow the UN Global Compact. The sustainable areas Social, Environment and Economic have played a big part in forming our focus areas and business plan goals for the period 2018­-2020. These goals are aimed at achieving sustainable methods and work patterns. Responsible entrepreneurship permeates every aspect of Peab.

Peab’s vision is to be the Nordic Community Builder and we want our stakeholders to experience us as such. Construction, like building homes or modern infrastructure, is one part of our contribution to a sustainable society. Another part is creating the best possible conditions for the people who will be in these environments that we plan, build and construct. In our role as a major but yet local employer it is crucial for us to have good insight into local community needs. Our ambition is to then convert this knowledge into an active commitment to society and be truly useful locally.

We can do a lot ourselves but even more in partnership with others. As one of Sweden’s largest construction companies we play a big part in keeping the industry sound, safe and attractive. We can create added value for our stakeholders by running our business sustainably, responsibly and long-range.

Stakeholders guide us

Peab’s stakeholders’ needs and demands greatly influence how the Group prioritizes and acts. An extensive and open dialogue with our stakeholders provides us with a good comprehension of what the most important issues are for different groups. In a changing world where needs are constantly shifting an ongoing stakeholder dialogue is key to quickly picking up on new needs and striving to fulfill them. The accumulated result from these dialogues informs our materiality analysis and is the basis of our priorities. A number of stakeholder dialogues were held in 2018 which gave us valuable guidance in decisions and measures concerning matters like our environmental goals and our work on diversity and healthy competition.

Peab’s definition of sustainability

For Peab sustainability means responsi­ble entrepreneurship. Everything we do should be ethical and sustainable long-range Socially, Environmentally and Economically.

Stakeholder Expectations of Peab Dialogue examples
Shareholders Responsible ethical entrepreneurship, long-term financial value development that creates annual dividends, active risk management, responsibility throughout the value chain, climate awareness and measures to reduce climate impact, community involvement through, for example, integration programs, internships and contributions to work life experience for youths AGM, analyst meetings, surveys from ethical and environmental funds, annual and sustainability reports, quarterly reports, investor meetings, national and international estimations
Employees; existing and potential Responsible ethical entrepreneurship, good work environment and high safety, skills development, good leadership, equal treatment, equality and diversity, good and attractive work and employment conditions, climate awareness and measures to reduce climate impact, community involvement through, for example, integration programs, internships and contributions to work life experience for youths, responsibility throughout the value chain Daily dialogue, employee surveys, student surveys, workplace meetings, union cooperation, internal training, incident follow-ups, management meetings, goal and developmental discussions, external surveys concerning employer brand, student relations and cooperation with educational facilities
Customers Responsible ethical entrepreneurship, professional businessmanship, competence, resource capacity, quality, availability, cost-efficient construction, good work and employment conditions, certifications, climate awareness and measures to reduce climate impact, community involvement through, for example, integration programs, internships and contributions to work life experience for youths, responsibility throughout the value chain Meetings in person, daily contacts, networks, partnerships, customer meetings, fairs, surveys to customers, surveys from customers, procurements and reviews
Local community Contributions to local community development, cost-efficient construction and housing in different price categories, climate awareness and measures to reduce climate impact, care for the environmental locally, community involvement through, for example, integration programs, internships and contributions to work life experience for youths, sponsoring local youth activities, responsibility throughout the value chain Visits, partnerships, information meetings, networks, contacts with county boards/municipalities, environmental reports, vision work, mentoring, sponsor projects, citizen and resident dialogues
Suppliers Responsible ethical entrepreneurship, professional businessmanship, climate awareness and measures to reduce climate impact (preferably with the supplier), responsibility throughout the entire value chain Procurements, supplier evaluations, meetings in person, daily contacts, supplier meetings, sustainable dialogues and partnerships

Social, Environment and Economic encompass Peab’s sustainable work

We have chosen to encompass our sustainable work in the three areas Social, Environment and Economic. We have found that the sustainability areas previously identified as the most relevant for our business to manage, monitor and report on are still the same in 2018. During the year extensive work has been done to overhaul the monitoring processes in these areas. This has resulted in, among other things, a slight reduction in key ratios in order to ensure the quality of the data.

Peab’s materiality areas, with their associated prioritizations, are comprehensive and complex, which means that reaching our goal takes time and requires persistence and continuity. Our ongoing stakeholder dialogues keep us continually updated on what influences stakeholders’ decisions, and their expectations of us.

Global goals and Agenda 2030 inform

During 2018 Peab carried out an analysis and a developmental project to determine which of the UN’s 17 sustainable development goals we have the best prerequisites to contribute to. There were several steps to this work, in our operations as well as in the Board and executive management, where the 17 goals with their 169 targets were discussed and processed. One conclusion was that as a Group Peab more or less contributes to, and is affected by, every global goal since they are all integrated and inter-dependent. However, for the period 2018-2020 five of the goals are extra prioritized since they are either areas that hold significant potential risk or areas where Peab has a good chance of promoting sustainable development.

Steering Peab’s sustainable work

Working sustainably is fundamental to Peab’s responsible entrepreneurship and has therefore top priority in our core operations. Peab’s strategic sustainable work is focused on handling risks, systematic quality work and in an inventive, responsible manner making sustainable development, internally and through external collaboration, possible.

Peab’s Board prioritizes sustainability matters and has given Peab’s executive management the overriding responsibility for steering the Group’s sustainability work and for monitoring the integra­tion of sustainability into every aspect of our business. For Peab working sustainably is an essential, strategic issue which is put into practice locally and in a down-to-earth manner.

Peab’s Head of Sustainability, who reports to executive management (COO), is responsible for strategically running and coordinating our sustainability work. Therefore the Head of Sustainability, together with the business areas and function specialists, is responsible for integrating sustainability throughout the business. It is self-evident for Peab to include employees in the process through transparency and spreading knowledge about basic sustainable factors. The Group therefore works continually to raise knowledge levels in every part of our organization around matters like the work environment and health, the environment, equal treatment, leadership, ethics and anti­-corruption.

Central regulations and a management system for steering

Peab requires all employees to comply with international conventions and national laws. Our fundamental steering document, Peab’s Code of Conduct, is based on the UN Global Compact principles that include the precautionary principle. Peab signed Global Compact 2012 and the Annual and Sustainability Report make up the Group’s annual report to Global Compact, the Communication on Progress. In accordance with the decision by Peab’s CEO the company will continue to follow Global Compact.

The CEO has ultimate responsibility for ensuring that the Code of Conduct is followed and communi­cated. Every employee is in turn responsible for taking the information to heart and following the Code of Conduct. The Group’s purchasing function is responsible for checking that suppliers follow the dictates of the Code of Conduct. Peab has a whistle­blower function for anyone, internal employees or external stakeholders, who wishes to draw attention to deviations from the Code of Conduct or other irregularities in the business. The function is handled by Peab’s Ethical Council and whistleblowers can by anonymous. Peab’s Code of Conduct is complemented by four policies; the Environmental Policy, Quality Policy, Information Security Policy and Work Environment Policy. These are then supplemented by a number of other supportive documents such as the Group’s equal treatment plan.

Steering in the social area

Peab’s Code of Conduct regulates several parts of the Social area such as human rights, the right to organize, prohibition of forced labor and child labor and non-discrimination. The Code of Conduct with associated policy documents also meet the demands in the Swedish Work Environment Authority Ordinance AFS 2001:1. In Norway Peab follows the Work Environment Act and valid regulations for the construction and civil engineering industries. Finnish operations are certified according to OHSAS 18001 and in 2019 they will also be certified according to ISO 45001.

Peab’s work in the Social area primarily affects our own employees and our own organization but the social responsibility that stretches beyond the limits of the company is an ever growing part of Peab’s responsibility to society.

Strategic work on the work environment is run on Group and business area levels, together with the relevant expertise on all levels of the organization responsible for turning strategy into reality. Our priorities in the work environment are the same in all three countries, albeit taking national legal differences into consideration. Work on the work environment is integrated with the Group’s work against discrimination and for equal treatment. There are 163 (173) employees in Peab that specifically work with work environment matters within the Group. In addition, there are 668 safety representatives, all of them chosen by, and representatives of, the employees. There are also 127 (63) work environment administrators (HAMare), which is a union assignment. All in all 6.5 percent (7.1) of all employees in Peab handle work environment matters.

Peab’s COO has the overriding responsibility for ensuring that there are support systems for HR processes in close proximity to operations. The CFO is responsible for systems connected to Finance and Treasury as well as salaries and remuneration matters. Line managers, supported by specialist functions, have the operative responsibility for ensuring safety, training, diversity and proper working conditions in the company, for instance that the Code of Conduct is followed.

Peab’s crisis organization is activated in the event of a serious accident. It consists of around 100 employees in Sweden, Norway and Finland.

Peab’s sponsoring is steered by guidelines for sponsoring. Peab’s sponsoring is rooted in the local community with the requirement that all sponsored activities must generate some kind of return to society. A central Group Sponsoring Council meets once a month to decide on sponsorship requests.

Steering in the area Environment

Peab works actively with the environment, close to operations, throughout our organization.

Common environmental issues are coordinated on Group level by the Head of the Environment. As of January 2018 the Group has three overriding environmental goals, decided by executive management and supported by the Board (read more here). These Group goals are broken down and turned into practical measures in our various operations, based on the business areas’ unique conditions and challenges. The Head of the Environment runs the cross-functional, common Group work on the environment and thereafter business area environmental managers are responsible for producing a risk analysis specific to their operations and formulating detailed targets. Key ratios and measuring methods are coordinated on Group level although there might be indicators and measurements specific to an operation.

Most of Peab’s business operates within the framework for a management system that is certified according to ISO 14001. Some of Peab’s Swedish operations are also certified according to ISO 9001:2015 and an equivalent certification of Norwegian operations will begin in 2019. The environmental management system is an integral part of the business management system and supplemented by Peab’s Environmental Policy, which meets all the requirements for ISO 14001:2004.

The business areas are responsible for creating processes and action plans that implement management systems and policies and ensure compliance in daily operations. The business areas must also continually work on improvements that lead to lower environmental impact based on the three Group goals.

Peab’s work in the area Environment has an effect on our own operations but to a much higher degree it affects the world around us, particularly considering the lion’s share of global emissions that the construction and civil engineering industries represent.

Steering in the Economic area

Peab’s executive management is responsible for steering purchases and the work with ethics and anti­-corruption. The central steering document for these areas is the Code of Conduct. The Ethical Council plays an important role in handling and monitoring the work with ethics and anti­-corruption complemented by the Group’s whistleblower function, which is an essential tool for pointing out deviations from the Code of Conduct and valid legislation.

The Group Head of Purchasing holds the highest responsibility for purchasing. The Group’s regulations and processes are clearly communicated throughout the company. An important part of them are the basic requirements in Peab’s written contracts such as signing and following the Code of Conduct. There are two central support functions in purchasing; Purchasing Steering and Purchasing and Logistics Development, which measure, control and support development in prioritized areas connected to our suppliers, the work environment and sustainability. For instance, there are daily controls of our supplier base founded primarily on financial parameters and follow-­ups in the areas work environment and labor laws every six months. Peab has a special program with specific targets for the risk categories that have been identified concerning human rights, working conditions, the environment and business ethics. Purchasing is also responsible for making sure suppliers follow the Code of Conduct.

Peab’s work within the area Economic has a considerable influence on our own operations but also greatly contributes to sound and safe conditions for the rest of the construction and civil engineering industry; for both players and the individuals and communities affected in the supply chain.