About the Sustainability Report

This sus­tain­abil­i­ty ap­pen­dix (GRI appendix) com­ple­ments Peab’s Sus­tain­abil­i­ty Re­port 2022 which is in­te­grat­ed into the An­nu­al Re­port. The Sus­tain­abil­i­ty Re­port fol­lows the fi­nan­cial year and com­pris­es the pe­ri­od Jan­u­ary 1 to De­cem­ber 31. This is Peab’s twelfth Sus­tain­abil­i­ty Re­port and it is pre­pared with reference to the GRI Stan­dards 2021. Because GRI’s Universal standards were updated in 2021 certain aspects of this report have been clarified, primarily related to the governance of Peab’s sustainability efforts, the approach to and work with our suppliers.

The Sus­tain­abil­i­ty Re­port is pub­lished annually and this year’s Sus­tain­abil­i­ty Re­port was pub­lished on April 3, 2023.

The Sus­tain­abil­i­ty Re­port has not been re­viewed by an external third party. How­ev­er, in 2021 we en­gaged a third party to do a pre-​as­sur­ance of our sus­tain­abil­i­ty process­es and re­port­ing pro­ce­dures with the in­ten­tion of having an independent external party con­duct­ a lim­it­ed as­sur­ance of Peab’s sus­tain­abil­i­ty re­port­ing as of the financial year 2024, according to the EU Corporate Sustainability Reporting Directive (CSRD). We also en­gaged a third party to do a gap analysis between GRI’s updated Universal standards and Peab’s GRI reporting in 2021.

The Sus­tain­abil­i­ty Re­port in­cludes the statu­to­ry sus­tain­abil­i­ty re­port ac­cord­ing to the An­nu­al Re­port Act chap­ter 6 para­graph 11.

Scope and changes in the report

The re­port com­pris­es the Group’s operations in Swe­den, Nor­way, Fin­land and Den­mark and all the com­pa­nies over which Peab has op­er­a­tional con­trol. This implies that the Sus­tain­abil­i­ty Re­port comprises the same companies as the Annual Report with the exception of the companies acquired during the year. The acquired companies are the civil engineering company Arne Olav Lund A/S (AOL) based in Larvik in Norway (90.4 percent of the shares) and Asfaltti- System Oy, a company in Kouvola in Finland (100 percent of the shares) that manufactures components and provides maintenance to the asphalt and concrete industries. The effect of these companies is, nonetheless, marginal in relationship to Peab’s entire business and its effect on social, environmental and economic aspects. No ma­te­r­i­al changes in the or­ga­ni­za­tion or value chain have oc­curred dur­ing the year.

Based on the ma­te­ri­al­i­ty analy­sis, the re­port fo­cus­es on the is­sues that re­flect the areas where our operations has the most sig­nif­i­cant im­pact from a sus­tain­able per­spec­tive. We revised our material sustainability aspects when we adopted the new business plan for 2021-2023. Peab’s re­porting is based on four strategic target areas that comprise a total of nine targets. Six of them relate to sustainability and are included in the total of 8 (8) ma­te­r­i­al sus­tain­ability as­pects Peab has identified in our operations. Read more here. Com­pared to 2021, no changes have been made con­cern­ing our en­vi­ron­men­tal as­pects.

Peab works continuously to improve processes and data quality for reporting. In cases where bound­aries and/or ac­count­ing prin­ci­ples have changed in one of the spe­cif­ic dis­clo­sures for one of the re­port­ed years, it will be noted in the text or table di­rect­ly con­nect­ed to the given in­for­ma­tion.

More in­for­ma­tion about Peab can be found at www.peab.com.

For in­for­ma­tion about Peab’s sus­tain­abil­i­ty work please con­tact:

Juha Har­tomaa, IR, juha.har­tomaa@peab.se.

Peab’s sustainability efforts

Working sustainably is a strategic matter for Peab that should be completely integrated into our operations. Each and every employee should, in their role work to promote sustainability based on our core values, business concept, mission, strategic targets and Code of Conduct. For Peab, sustainability entails running a business that both takes a long-term responsibility for our impact throughout the value chain and works for the good of society.

We operate over a broad spectrum of community building which naturally has both positive and negative effects on the world around us. The frequency of injuries in the construction and civil engineering industry is high and our employees are exposed to risks on construction sites that can lead to accidents. Traditionally, the industry is also traditionally male dominated, which entails a lack of gender equality and diversity. Furthermore, our decentralized and complex value chains create risks for ethical violations and corruption. Although the risk is tempered by the fact that our operations and nearly all our employees are in the Nordic region. We have a responsibility to ensure that our suppliers apply good ethics and care about the environment and human rights. Our operations impact the environment and climate in various ways. For example, materials we use, such as concrete and steel, generate greenhouse gas emissions and at the same time, we also need to phase out other components that are hazardous to the environment and to health. As we use the earth’s finite resources, we have to increase our efforts related to circularity and resource efficiency, as well as caring about the impact we have on nature and fostering biodiversity. We put similar demands on our suppliers and their suppliers as we do on ourselves, and we have a continuous dialogue with our customers to help them in achieving their environmental and climate targets. Collaboration is a prerequisite for positive change.

Our business contributes to several positive aspects. Besides building local communities including for example homes, schools, retirement homes and hospitals, bridges, roads and railroads, we provide our employees with secure jobs and meaningful careers with development opportunities. We particularly work for the development and education of young people and contribute to local development in general. As a major local actor and employer in the Nordic region, we need to understand through cooperation and dialogue the challenges society is facing and in particular the needs in our local communities. By comprehending this we can reduce the negative impact of our operations and increase its benefit. We want to take responsibility, regardless of whether it is by contributing to a more climate-adapted use of material, fair competition or safe and inclusive workplaces. As one of the largest Nordic community builders, we have decided to be the Best workplace and Leader in social responsibility in our industry. It is a commitment that comes with obligations.

We identify our material sustainability aspects within the framework of our four strategic targets, and in particular the two mentioned above: Best workplace and Leader in social responsibility. The targets also comprise our external and internal targets.

Our sustainability priorities:

  • Work environment and safety culture
  • Equality, diversity and equal treatment
  • Climate impact
  • Resource consumption
  • Environmentally and health hazardous products
  • Quality ensured supplier chain
  • Ethics and anti-​corruption
  • Education and development for the young

Importance to stakeholders

Peab’s external impact &
External impact on Peab

Sustainable aspects

1. Climate impact

2. Resource consumption

3. Environmentally and health hazardous products

4. Ethics and anti-corruption

5. Work environment and safety culture

6. Equality, diversity and equal treatment

7. Quality ensured supplier chain

8. Education and development for the young

ESG

E=environment, S=social, G=governance

Customer Satisfaction Index (CSI)

CSI stands for Customer Satisfaction Index and measures how satisfied Peab’s customers are.

TARGET: >75

OUTCOME 2022: 80

Serious accidents

The target is measured as zero fatal accidents and a contracting trend, rolling 12 months. Serious accidents are defined according to classification 4.

TARGET: <28

OUTCOME 2022: 49

eNPS

eNPS stands for employee Net Promoter Score and measures employee engagement.

TARGET: >22

OUTCOME 2022: 29

Operating margin

The target is measured according to segment reporting.

TARGET: >6%

OUTCOME 2022: 4.3%

Net debt/equity ratio

Net debt in relation to equity. The target is measured according to segment reporting.

TARGET: 0.3-0.7

OUTCOME 2022: 0.5

Dividends

The target is to surpass 50 percent of profit for the year. Measured according to segment reporting.

TARGET: >50%

OUTCOME 2022: 56%1)

Carbon dioxide intensity

Climate target for our own production

The target refers to lower emissions of greenhouse gases Scope 1+2 (ton CO2e/MSEK).

 

 

 

 

 

 

 

 

TARGET 2030: -60%

OUTCOME 2022: -43%

Carbon dioxide intensity

Climate target for input goods and purchased services

The target refers to lower emissions of greenhouse gases Scope 3 (ton CO2e/MSEK).

 

 

 

 

 

 

 

TARGET 2030: -50%

OUTCOME 2022: -2%

Equal opportunity

The target is measured as: percentage of recruited women in production among skilled workers (SW, production and processing) and white-collar workers (WCW, production management and production support) > percentage of women who have graduated with, for us, relevant degrees on the education markets.

TARGET:
>5% (SW)
>30.0% (WCW)

OUTCOME 2022:
7.9% (SW)
45.3% (WCW)

1) Based on the number of outstanding shares.

Key principles for governing Peab’s sustainability efforts

Peab governs our sustainability work and the impact of our material aspects by identifying, assessing and managing risks and opportunities, working with continual improvements and identified key activities and projects as well as measuring progress through overarching targets for the Group along with specific business area and subsidiary targets within our sustainable priorities. In addition, governance takes place through regulations and management systems, and as far as possible at the local level. In order to further strengthen our local engagement, we clarified the integrated responsibility for our sustainability efforts in our four business areas in 2021.

The Board of Directors has given Peab’s executive management the responsibility for governing and monitoring the integration of sustainability into its operations including the work with the impact of our material aspects. Peab’s four business area managers, who all report to the CEO, are responsible together with the COO, CSO and CCO for ensuring that sustainability is an integrated part of operations. They have a Sustainability Council with expertise in sustainability as well as a large number of specialists to aid them, in both central support functions and in the business areas. The executive management reviews the sustainability work at each executive management meeting where they review particular sustainability-related events as well as immerse into a specific sustainability theme at each meeting. Governance is based on the four strategic targets and the external and internal targets subsumed under them. Some of the targets are reviewed by both executive management and the Board quarterly, while others are reviewed once or twice a year. Examples of quarterly targets are the work environment and safety while Peab’s climate target is an example of a target that is reviewed annually. Reviewing targets and their outcome gives the executive management the opportunity to apply measures when needed that are monitored afterwards.

The regulations and management systems Peab apply for governance purposes comply with comply with international conventions and national laws. Our fundamental, internal steering document, Peab’s Code of Conduct, is based on the UN Global Compact principles that include the precautionary principle, internationally recognised human rights and the ILO Core Conventions. The Code of Conduct is reviewed and updated annually. Peab signed Global Compact 2012. In accordance with the decision by Peab’s President and CEO the company will continue to comply with the Global Compact. In addition, through the Code of Conduct, Peab respects the rights presented in OECD’s Guidelines for Multinational Enterprises and UN’s Guiding Principles on Business and Human Rights (UNGP) that include the principles and rights in the eight core conventions in ILO’s declaration on fundamental principles and rights at work and the international regulations for human rights. We have also included these in our Suppliers Code of Conduct, which we have as of 2023.

Communicating our Code of Conduct and Suppliers Code of Conduct is vital to ensure that all employees, suppliers and business partners understand and comply with Peab’s standards for human rights, diversity and inclusion as well as the environment, that our employees comply with all other policies, guidelines and regulations. The codes are available on Peab’s intranet and external websites, and are included in contracts. We have decided that our employees must annually confirm that they comply with our Code of Conduct. In order to strengthen awareness concerning competition laws and anti-corruption we will hold tailor-made courses for employees that are particularly exposed. It is available in several languages to ensure that all employees understand what is expected of them.

Peab’s Board of Directors has ultimate responsibility for ensuring that the Code of Conduct is followed and communicated but executive management and supervisors on all levels have a responsibility to ensure that the requirements in the Code of Conduct including the associated guidelines and regulations are applied.

Governing documents

Summary of the governing documents
Code of Conduct The Code of Conduct is the most important governing document for our employees and it stipulates how we operate in an ethical and sustainable manner. Further study, explanation or guidance are recommended for some sections of the code. Peab should conduct a responsible and ethical business throughout our value chain, in particular where the risk for violations is greatest. The Code of Conduct is communicated annually to all employees.
Suppliers Code of Conduct *

*As of 2023.

 The Suppliers Code of Conduct is intended to ensure that Peab’s suppliers contribute to respect for human rights and the environment in their own operations. Suppliers should have processes in place to manage actual and potential violations of human rights and the environment. Peab expects suppliers to follow the code and communicate its requirements to their suppliers.
Environmental Policy The Environmental Policy refers to our environmental efforts as an obvious part of responsible community building and an integrated part of Peab’s daily operations. We work from a long-term perspective to prevent negative environmental footprint, reduce climate impact, resource consumption and negative impact on people and the environment. Through development efforts, improved working methods, and our business offerings, Peab strives to represent responsible business practices and to impact others outside the company to improve their environmental performance.
Quality Policy The Quality Policy states that our deliveries to customers should maintain high quality and provide good references for future business opportunities. We work preventatively and long-term with quality as an integrated part of our daily operations.
Information Security Policy The Information Security Policy helps to create a safety culture at Peab, increase awareness about information security and create prerequisites for efficient management of information and risks.
Work Environment Policy The Work Environment Policy provides a practical description of the company’s rule of conduct, focus areas and targets regarding the work environment.

International conventions that are the basis of the governing documents
Code of Conduct UN Global Compact including its ten principles in the areas of human rights, labor rights, the environment and fighting corruption, and its underlying conventions and declarations, UN declaration of human rights, UN Sustainable Development Goals, ILO’s core conventions on rights at work, OECD’s Guidelines for Multinational Enterprises, UN’s Guiding Principles on Business and Human Rights (UNGP), The general principles of the International Code of Human Rights and the OECD Anti-Bribery Convention and its recommendations.
Suppliers Code of Conduct*

*As of 2023.

 UN Sustainable Development Goals and its ten principles in the areas of human rights, labor rights, the environment and fighting corruption, and its underlying conventions and declarations, UN declaration of human rights, UN global goals for sustainable development, ILO’s core conventions on rights at work, OECD’s Guidelines for Multinational Enterprises, UN’s Guiding Principles on Business and Human Rights (UNGP), The general principles of the International Code of Human Rights and the OECD Anti-Bribery Convention and its recommendations.
Environmental Policy –
Quality Policy –
Information Security Policy –
Work Environment Policy –

Precautionary principle requirement
Code of Conduct

 

 Yes, obligatory to minimize or eliminate the risk of serious or irrevocable damage to the environment or human health.
Suppliers Code of Conduct *

*As of 2023.

 Yes, obligatory to minimize or eliminate the risk of serious or irrevocable damage to the environment or human health.
Environmental Policy The target of our environmental efforts is to achieve climate neutrality, increase resource efficiency and phase out environmental and health hazardous products. Our environmental work is long-term and based on the precautionary principle.
Quality Policy We work preventatively and long-term with quality as an integrated part of our daily operations.
Information Security Policy –
Work Environment Policy –

Human rights comprised by the governing document
Code of Conduct
  • We prioritize a safe and healthy work environment
  • We stand for equal treatment and diversity
  • We do not accept child labor
  • We do not accept forced labor or debt bondage
  • We support the right to organize
  • We support fair employment conditions
  • We do not accept any form of corruption.
Suppliers Code of Conduct *

*As of 2023.
  • We prioritize a safe and healthy work environment
  • We stand for equal treatment and diversity
  • We do not accept child labor
  • We do not accept forced labor or debt bondage
  • We support the right to organize
  • We support fair employment conditions
Environmental Policy Certain aspects of our environmental work are relevant to human rights, for example the right to health and a healthy environment.
Quality Policy –
Information Security Policy Secure and safe information management for all stakeholders, including employees, customers and suppliers.
Work Environment Policy The right to a safe and healthy work environment, to work in safe conditions and not be exposed to illness or accidents at workplaces.

The policy also emphasizes the importance of working together with co-workers, trade unions and other stakeholders to promote a good safety culture and social interaction in order to prevent sickness and accidents.

Affected stakeholders
Code of Conduct Employees
Suppliers Code of Conduct *

*As of 2023.

 Suppliers
Environmental Policy Employees and suppliers
Quality Policy Employees and suppliers
Information Security Policy Employees and suppliers
Work Environment Policy Employees and suppliers

Responsible for approval of governing document
Code of Conduct Board of Directors
Suppliers Code of Conduct *

*As of 2023.

 Board of Directors
Environmental Policy Board of Directors
Quality Policy Board of Directors
Information Security Policy Board of Directors
Work Environment Policy Board of Directors