Tough environmental goals require innovation and collaboration
Construction and civil engineering is one of the industries with the highest environmental impact. As one of the largest Nordic construction companies Peab has a big responsibility for environmental and climate impact. In 2020 the Group identified delimitations, KPIs and strategic improvement areas for Peab’s environmental work. Parallel with this we carried out a number of concrete measures aimed at aligning our operations with our long-term environmental goals.
Climate risks and opportunities according to TCFD
Peab works long lasting and systematically to reduce our climate impact and to accelerate climate transition to a fossil free society. Climate neutrality is a highly prioritized issue for our stakeholders and one of Peab’s environmental goals is to be climate neutral in 2045.
We have begun to implement TCFD’s recommendations. We consider them a good tool for structurally reporting how we work with our climate-related risks and opportunities as well as in identifying improvement areas. Many of these are reported in more detail in our annual CDP Climate Report, along with a number of them in our Annual and Sustainability Report 2020.
Steering
Peab’s Board and executive management regularly work with issues associated with climate-related risks and opportunities. The Group’s environmental goals are adopted by executive management and approved of by the Board. The Board has given executive management the overriding responsibility for steering and monitoring climate work. The Group’s Head of Environment is responsible for strategically driving and coordinating Group climate work together with business area managers and specialists. Climate-related risks and opportunities are part of the strategic dialogue and are included in the focus area “Safe business”. Achievement of climate goals is monitored as a part of other results.
Strategy
Peab has identified climate-related risks and opportunities. A simple scenario analysis is the basis for identification of these. Examples of transition risks are more stringent legal requirements and higher costs for emissions. Examples of physical risks are extreme weather and floods that affect Peab’s production and choice of solutions.
Risk management
Peab works continuously to identify, assess and manage climate-related risks and opportunities – both physical and transition related. We have begun the work to assess the financial effect these risks can have and judge the company’s resilience in relationship to them. The result from the consolidated risk analysis is processed by both the Board and executive management. More about risk management in Peab is found here and in the CDP report.
Goals and measurements
Peab has three environmental goals, of which one is climate neutrality 2045, read more. Peab uses a number of measurements to monitor goal achievement and climate impact, including Scope 1-2 and parts of Scope 3. These are presented in the Annual and Sustainability Report 2020 and in the CDP report.
Steering in the Environment area
Peab’s work with the environment is practical, close to operations and has a strong connection to our business. It is based on the Group’s prioritized sustainable aspects concerning the environment, which have been identified based on an environmental aspects evaluation, a risk and opportunity analysis and a materiality analysis. Common environmental issues are coordinated and run by the Head of the Environment in close collaboration with the environmental managers and specialists in the business areas. Peab’s three overriding environmental goals are determined by executive management and the Board (read more here). Work on the comprehensive, far-reaching goals is conducted in a Group collaboration based on a framework with defined interfaces, key ratios, measurement methods and strategic improvement areas for Peab’s continued environmental work. Next these Group goals are broken down into sub-goals and turned into practical measures in our various operations formed by the business areas’ unique conditions and challenges.
Most of Peab’s business operates within the framework for a management system that is certified according to ISO 14001. The environmental management system is an integral part of the business management system which includes Peab’s Environmental Policy. Peab’s four business areas are responsible for creating processes and action plans that implement management systems and policies and ensure compliance in daily operations.
Environmental certification of buildings
GRI G4 CRE8
The diagram shows the number of received certificates. In the case of Miljöbyggnad and BREEAM the preliminary certification may be what is shown. Statistics include both our own developed projects where Peab is responsible for certification and projects Peab has built for customers.
Waste
GRI 306-2
During 2020 Peab has continued to refine the compilation process for waste data. Several suppliers and new operations are included in the statistics. A closer dialogue with suppliers has been implemented to ensure good compilation of statistics, including standardization of waste categories and treatment methods. The goal has been to include all of the major suppliers that together represent over 90 percent of the waste management services purchased.
The difference in the outcome compared to the previous year is primarily explained by the variation in the amount and type of waste generated due to the kind of projects underway in the Group during the year. This is particularly noticeable concerning rubble. The broader scope and quality makes it irrevelant to show the figures from 2018.
Waste year 2020 total for the Group was 758,000 (894,000) tons.
Energy consumption
GRI 302-1
During 2020 Peab has continued to refine the compilation process for energy consumption. Several suppliers and new operations are included in the statistics. A closer dialogue with suppliers has been implemented to ensure good compilation of statistics and conversion factors. The goal has been to include all of the major suppliers that together represent over 90 percent of the electricity and district heating purchased. The improvements have resulted in a significant difference between data for 2020 and 2019. The data for 2019 is therefore not completely comparable and the broader scope and quality makes it irrevelant to show the figures from 2018. The significant changes are:
- an increase in paving operations resulting in considerably higher energy consumption included as of the second quarter 2020, which explains the main change in fuel and electricity use
- figures for 2020 also include gas in production (previously only gas used in vehicles has been included)
In the first place supplier specific information on the products has been used to calculate the energy from fuel. Conversion factors for fuel have been updated and adjusted to reflect the reduction obligation level. Standards for conversion factors, based on national statistics and information from suppliers, have been established to be utilized where suppler specific data is not available.
All statistics are collected directly from suppliers.
Greenhouse gas emissions
GRI 305-1, GRI 305-2, GRI 305-3
During 2020 Peab has continued to refine the compilation process for data consumption. Several suppliers and new operations are included in energy statistics, see the section on “Energy consumption”.
A closer dialogue with suppliers has been implemented to ensure good compilation of statistics and emission factors. The improvements have resulted in a significant difference between data for 2020 and 2019. The data for 2019 is therefore not completely comparable and the broader scope and quality makes it irrevelant to show the figures from 2018.
In the first place supplier specific information on the products has been used to calculate emissions. Standards for emission factors, based on national statistics and information from suppliers, have been established to be utilized where suppler specific data is not available.
Scope 1:
Emissions of greenhouse gases from fuel consumption have been calculated with the help of emission factors from Peab’s fuel suppliers, national statistics or DEFRA. Because of the updates emission factors for greenhouse gases (CO2e) also reflect the reduction obligation.
The additional operations use considerably higher amounts of fossil fuels, which is reflected in the figures for emissions of greenhouse gases. Gas in production is now also included, which has a significant impact on emission figures since most of the gas is natural gas and liquified petroleum gas.
Scope 2:
CO2e emissions (location-based method) have been calculated with emission factors from AIB (2019) – Production mix; Energy companies (2019), national statistics and suppliers’ invoices.
CO2 emissions (market-based method) have been calculated with emission factors from suppliers, and in cases where factors from suppliers have not been available factors from AIB (2019) – Residual mix has been used for electricity and data from Energy companies (2019) and national statistics have been used for district heating.
Emissions in 2019 (market-based method) have been recalculated based on the principles above for greater comparability between the years. Most of the increase in emissions is due to the additional operations’ consumption of large volumes of electricity that is not ecolabeled. The portion of renewable energy has therefore dropped from an estimated 75 % to around 40 %.
Scope 3:
Business travel emissions include flights booked through Peab’s travel agent and CO2e figures for flights are produced according to the STS Standard. Statistics on Peab’s train trips include those in Finland this year. CO2e emissions from train trips are calculated by the supplier. All statistics are collected directly from the supplier alternatively estimated based on costs. Business travel emissions have dropped noticeably in 2020 compared to 2019 since travel has been limited by the restrictions connected to the COVID-19 pandemic.
CO2e emissions from generated waste have been calculated with a tool developed by the industry. Emissions in 2019 have been recalculated for greater comparability between the years based on that in 2020 what is included in each type of waste has been more clearly defined. Now mineral masses (mineral masses such as brick and concrete residue) are included in the calculation but not excavated soil.
| Ton CO2e | 2020 | 2019 | |
| Ton CO2e | 2020 | 2019 | |
| Scope 1 | Scope 1 | 220,000 | 102,000 |
| Emissions | Utsläpp | 220,000 | 102,000 |
| Scope 2 (market based) | Scope 2 (market based) | 50,000 | 8,700 |
| Location-based | Location based | 10,000 | 4,300 |
| Market-based | Market based | 50,000 | 8,700 |
| Scope 3 | Scope 3 | 219,000 | 281,000 |
| Business travel, flights | Tjänsteresor flyg | 560 | 1,700 |
| Business travel, train | Tjänsteresor, tåg | 0.150 | 0.006 |
| Waste management incl. waste transportation (excl excavated soil) | Avfallshantering inkl. avfallstransport (exkl schaktmassor) | 218,000 | 279,000 |
| Total amount of emissions of greenhouse gases (market-based) | Total mängd utsläpp av växthusgaser (market based) | 489,000 | 391,000 |
Climate monitoring 2021 and going forward
Greenhouse gas emissions from fuel and other energy consumption (Scope 1 and 2) increased in absolute numbers in 2020 compared to 2019. This is primarily due to the expansion of the business through the acquisition of extensive paving and mineral aggregates operations from YIT. The emission figures reported for 2019 do not include these operations, while they are included in 2020 (Q2-Q4).
Peab has adopted new climate targets as of 2021. The new targets are intensity targets that take the scope of the business into consideration and therefore provide a relevant picture of developments in the business concerning the climate, independent of the size of the business. The targets are formulated as a reduction compared to the base year, which is set at 2015 to line up with the construction and civil engineering industry’s roadmap for fossil free competitiveness. Emissions for the base year 2015 have been recalculated taking into consideration the change in operations mix that the addition of the new paving and mineral aggregates operations entailed.
Based on the above, climate intensity in the business has diminished over time.





