E3 – Water and marine resources

Peab and water and marine resources

Positive impacts / opportunities

Negative impacts / risks

Peab’s operations and its value chains use water and impact marine resources. In assessing impact and financial materiality we have determined that the sub-topic water withdrawal is material for Peab, in other words the amount of water we withdraw from various sources for consumption in operations. Significant water withdrawal of groundwater can cause nearby wells and waterways supplied by groundwater to run dry, wetlands and reservoirs to dry up and subsidence in buildings due to changes in soil layer conditions. Peab’s impact and risk management is primarily in areas with potential water shortages and water stress (where the demand for water exceeds the available amount or that water quality is inadequate) and comprises the entire value chain. The risks can also be everything from insufficient drinking water to impacting biodiversity. In our business water withdrawal impact occurs mainly in production, materials production, cooling, using process water and impacting water and sewage systems. For example, our concrete-related operations are dependent on water, our raw material supply chain impacts groundwater and production in the construction contract business uses water for various purposes like dust suppression and rinsing off. We always examine water issues in our industrial operations in connection with applying for permits for quarries.

Regarding Peab’s operations and water and marine resources, here below are some examples of activities along the value chain that entail water withdrawal and have or can have an impact:

Upstream: Mining iron ore, producing cement, tree farming for wood, wood pulp industries, paper, chemicals, steel and metal plants as well as water for energy production in thermal power plants.

Own operations: All water consumption in the business, including tap water, and operations such as foundation work, construction and input goods production.

Downstream: Water consumption by private persons in buildings, the effect of the choice of water and sewage systems and the need for wastewater treatment plants, water reservoirs or similar infrastructure.

Water and marine resources are linked to the UN’s 14th global goal for sustainable development: Life below water.

Process regarding materiality

In order to evaluate Peab’s impacts, risks and opportunities in relation to water and marine resources in our own operations and value chains we have worked in cross-functional teams with employee representation from the entire Group. We have conducted a double materiality assessment for E3 water and marine resources per value chain and country and thereafter consolidated the assessments to Group level. The cross-functional teams have mainly consisted of environmental and climate specialists from the four business areas, financial controllers and category purchasers. In addition a number of employees from Group functions have participated in the work. The function non-financial reporting has coordinated the process regarding materiality, which has been conducted as described in the section ESRS 2 on page 49.

This is how we work

Responsibility and policies

One of our three environmental targets is that by 2040 our business will be 100 percent resource efficient. Water and marine resources are included in resource efficiency. The Group’s Head of Environment coordinates and drives joint environmental matters, including water and marine resources work, together with business area environmental managers and specialists. The Group’s environmental functions support the responsible managers in making decisions about water and marine resources matters in order to turn plans into action and generate progress in the work.

The majority of Peab’s operations work within the framework of a management system that is environmentally certified according to ISO 14001. The management system contains procedures that describe how Peab works with water. The environmental management system is integrated into our business management system which, among other things, comprises Peab’s Environmental Policy. The four business areas are responsible for implementing and complying with the management system and policies in day-to-day work.

Activities 2024

• We have worked with our offer on mobile water cleaning facilities.
• We have launched the offer ECO-Construction site for construction sites that contains requirements about digitally monitoring water withdrawal in construction production.

Looking ahead

In connection with the double materiality assessment we not only identified the business areas’ and subsidiaries’ potential and actual impacts, risks and opportunities regarding water and marine resources but also the need for more detailed background information. We see the need to analyze water matters more in-depth in parts of our operations. In the same vein, we intend to review Peab’s Environmental Policy to evaluate the need for governance regarding water and marine resources. Ultimately continued work is aimed at, based on the conclusions drawn from the double materiality assessment, continuing to develop processes and work methods as well as our ability to report in accordance with the disclosure requirements in CSRD legislation.

Targets and metrics

We have not defined any tar­gets or met­rics but we intend to evaluate the need for them as we continue working.