Working together to meet targets

The strength of the Peab business model – and thereby our ability to reach our targets – grows when our four business areas collaborate with each other and when we as a Group work together with customers, suppliers and other prioritized stakeholder groups.

In order to further promote value creation after the changes in 2020, when we made a major Nordic acquisition in paving and mineral aggregates and distributed Annehem Fastigheter to shareholders, Peab revised its strategic targets for the business plan 2021-2023. As of 2021 Peab reports the performance of our business by monitoring nine external targets, of which three are financial and six are non-​financial. We particularly want to highlight the external targets and they are subset of all our targets and action plans.

Both the internal and external financial and non-​financial targets are categorized under the strategic targets; most satisfied customers, best workplace, most profitable company and leader in social responsibility. The non-​financial targets comprise our sustainable targets. All the targets are measured compared to the construction and civil engineering industry.

Most satisfied customers

We should be a com­plete com­mu­ni­ty builder that of­fers total so­lu­tions. We cre­ate value for our cus­tomers through ex­pert and en­gaged em­ploy­ees.

Best workplace

We should be the ob­vi­ous choice for any­one who wants to work in the in­dus­try. Every­one should be part of safe and in­clud­ing work­places with good work con­di­tions and op­por­tu­ni­ties to de­vel­op at Peab.

Most profitable company

With our en­gaged em­ploy­ees we en­sure pro­duc­tiv­i­ty and qual­i­ty. Through our local pres­ence, and the ad­van­tage of our size and mix of op­er­a­tions, we be­come the most prof­itable com­pa­ny.

Leader in social responsibility

As the Nordic Com­mu­ni­ty Builder with a local pres­ence we take re­spon­si­bil­i­ty through in­no­va­tions and mak­ing de­mands con­cern­ing the cli­mate and en­vi­ron­ment, order and cor­rect­ness in the in­dus­try and equal op­por­tu­ni­ty. Ac­tive so­cial en­gage­ment in the com­mu­ni­ty and focus on young peo­ple’s ed­u­ca­tion are part of our fun­da­men­tal val­ues.

How we achieve our targets

Ul­ti­mate­ly it’s our 15,000 em­ploy­ees that cre­ate value for our cus­tomers, so­ci­ety and our other stake­hold­ers and there­by cre­ate the con­di­tions we need to achieve our tar­gets. To­geth­er we focus on a num­ber of over arching Group strate­gic areas to de­vel­op our busi­ness in line with our busi­ness plan and strate­gies – this so that we achieve our financial and non-financial targets.

Higher processing ratio

Col­lab­o­ra­tion be­tween busi­ness areas rais­es the level of pro­cess­ing in our pro­duc­tion. High­ly processed busi­ness is where projects and prod­ucts gen­er­ate rev­enue in sev­er­al busi­ness areas. Hav­ing a high level of our own talent and input goods im­proves steer­ing, ef­fi­cien­cy, qual­i­ty and safe­ty along with en­vi­ron­men­tal­ and other sus­tain­abil­i­ty re­lat­ed per­for­mance.

Examples of progress in 2022:

  • High level of collaboration in our local geographic markets.
  • Complementary acquisitions in Norway and Finland in business areas Industry and Civil Engineering.

Operational efficiency

Op­er­a­tion­al ef­fi­cien­cy com­pris­es ex­pe­ri­ence, continuous improvement and development, for in­stance our best prac­tice con­struc­tion meth­ods, con­struc­tion tech­nol­o­gy so­lu­tions and other con­cep­tu­al ini­tia­tives. We take ad­van­tage of our years of ex­pe­ri­ence and ex­ten­sive knowl­edge to pro­mote ef­fi­cien­cy in op­er­a­tions.

Examples of progress in 2022:

  • Intensified the ongoing work to streamline various functions in the Group.
  • Further development on our service offer and continued work on our predesigned Building Type Concept, NärBo, as well as concepts for schools.
  • Continued work on digitalizing and harmonizing our Nordic processes.

Knowledge exchange

Peab’s size makes it pos­si­ble to take ad­van­tage of local ex­per­tise and can have an im­pact from a Nordic per­spec­tive. For in­stance, we can main­tain a ref­er­ence li­brary or take ad­van­tage of, and co­or­di­nate, spe­cial­ist com­pe­tence like when build­ing swim­ming pool fa­cil­i­ties. Dig­i­tal­iza­tion en­ables ef­fi­cient com­pi­la­tion of in­for­ma­tion and spread­ing knowl­edge.

Examples of progress in 2022:

  • Furthered work in cross-functional teams for various product segments such as ports and water, infrastructure, wooden houses, swimming pool facilities and wind power.
  • Development of our Group platform (common data warehouse) for efficient knowledge exchange.
  • Implementation of new digitalization strategy in construction contract operations for know-how about production.
  • Active measures for knowledge exchanges regarding emission reduction activities.

Innovation and demands

Our ECO-​prod­ucts are ex­am­ples of in­no­va­tion. We have de­vel­oped ECO-​Be­tong (ECO-​Concrete) by tak­ing a byprod­uct from an­oth­er in­dus­try, pro­cess­ing it and there­by re­duc­ing the ce­ment in our con­crete. We have con­vert­ed most of our as­phalt plants to fos­sil free fuel. We have cre­at­ed cir­cu­lar raw ma­te­ri­als such as re­cy­cled min­er­al ag­gre­gates.

In order to progress we also have to work with mak­ing de­mands on sup­pli­ers, car­ri­ers, poli­ti­cians, au­thor­i­ties and cus­tomers. We have to strive for reg­u­la­tions that aug­ment re­cy­cling and pro­cure­ments that pro­mote in­no­v­a­tive sus­tain­able so­lu­tions.

Examples of progress in 2022:

  • Greater use of ECO-Betong (ECO-Concrete) in business areas Construction and Civil Engineering.
  • Launched ECO-Betong in Finland.
  • Invested in automated production of concrete elements and halved the use of cement in prefab operations.
  • Started two new externally financed research projects (SBUF) where we study the possibility of binding and storing carbon dioxide in old crushed concrete and newly produced mineral aggregates.

Investments within Project Development

Our fi­nan­cial po­si­tion en­ables us to fur­ther de­vel­op our project de­vel­op­ment busi­ness. We have the breadth and de­vel­op the prod­ucts that are cur­rent­ly in de­mand on the mar­ket. We have a de­vel­op­ment rights port­fo­lio both on our own bal­ance sheet and in joint ven­tures. The busi­ness there­fore pro­vides a sta­ble flow of our own hous­ing de­vel­op­ment projects. We work with de­vel­op­ment projects that can be di­vest­ed on the in­vest­ment mar­ket.

Examples of progress in 2022:

  • Acquired property and development rights with exploitation possibilities.
  • Founded joint venture for housing projects in Finland.
  • Sold and started new building projects.