E4 – Biodiversity and ecosystems

Peab and biodiversity and ecosystems

Positive impacts / opportunities

Negative impacts / risks

Biodiversity and ecosystems entail variations within species, among species and different kinds of habitats and are essential for the welfare of nature and thereby humans. Peab’s operations and the activities in our value chains impact biodiversity and ecosystems. For example, they may encroach on nature risking displacing species. When assessing impact and financial materiality we have determined that the following sub-topics in direct impact factors and extent and condition of ecosystems are material:

• Direct impact factors: Changes in land-use, freshwater-use and sea-use
• Direct impact factors: Direct exploitation
• Extent and condition of ecosystems : Soil sealing

Regarding Peab’s operations and biodiversity and ecosystems, here below are some examples along the value chain that have or can have an impact:

Upstream: Crude oil extraction, limestone quarrying, mining, for instance, iron ore, steel production and forestry

Own operations: Construction, quarries, soil sealing through paving over surfaces or concrete constructions

Downstream: Infrastructure we build like roads and railroads as well as buildings we erect

Biodiversity and ecosystems are linked to the UN’s 15th global goal for sustainable development: Life on land.

Process regarding materiality

In order to evaluate Peab’s impacts, risks and opportunities in relation to biodiversity and ecosystems in our own operations and our business models the Group’s Biodiversity Council has participated in the consolidated double materiality assessment. The work has followed the description of the materiality process in the section ESRS 2 on page 49 and was aided by a third party specialized in this field. The assessment was conducted with the help of the so-called LEAP method which is accepted practice for assessments of biodiversity and ecosystems. In addition to a current situation assessment, it also contains recommendations and the assessment is therefore the basis for a road map being prepared for Peab’s work with biodiversity and ecosystems stretching to 2030.

To begin with we produced a map where we placed Peab’s operative locations – particularly quarries, paving plants and concrete factories where operations are run for a long time and have an impact on biodiversity and ecosystems – on land specific maps. After that we noted which operations are within a kilometer from protected nature areas.

We have not conducted a corresponding assessment for construction and civil engineering projects with more temporary locations like road and building construction or development rights. Impacts, risks and opportunities on biodiversity and ecosystems from construction contract projects fall primarily under project specific customer and legal demands.

Other operations with stationary locations, primarily rental operations, prefab concrete element factories and operation and maintenance depos, are not assessed to have a material impact on biodiversity and ecosystems.

This is how we work

Peab has a responsibility for biodiversity and ecosystems, both during production and in the user phase. One of our three environmental targets, which has been set by executive management, is that by 2040 our business will be 100 percent resource efficient. This target includes protecting, preserving and strengthening biodiversity and ecosystems when exploiting land and natural resources. We are working on making sure Peab’s business models and strategies to an even higher degree take into consideration biodiversity and ecosystems and also on developing metrics, measurement methods and strategic improvement areas on both Group level and broken down on operations level.

Responsibility and policies

The Group’s Head of Environment coordinates and drives joint environmental matters, including biodiversity and ecosystems, together with business area environmental managers and climate specialists. The Group has a so-called Biodiversity Council to ensure a holistic perspective and efficient management of a country’s and Group-wise matters. The Group’s environmental functions support the responsible managers in making decisions about biodiversity and ecosystem matters in order to turn plans into action and generate progress.

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 we take into consideration biodiversity and ecosystem matters. The environmental management system is integrated into our business management system which, among other things, comprises Peab’s Environmental Policy where our goal is to work long lastingly to reduce our environmental impact, streamline our resource consumption and protect the environment, including biodiversity. The four business areas are responsible for implementation and compliance with the management system and policies in day-to-day work. Environmentally certifying a building, through for example Swan ecolabelling, means we also take biodiversity into consideration.

According to Peab’s rules, operations must assess the risk of possible impact on biodiversity and ecosystems before a project or other activities in operations can begin in order to avoid hazardous impact on natural values. When new locations are established or existing sites are expanded, current legislation requires that there is no unacceptable negative impact on biologically sensitive areas. For this reason we do the studies and take the precautionary measures necessary for each location.

Work method and focus areas

We work in different ways to protect and promote biodiversity, including preservation of threatened species, restoration of damaged ecosystems and sustainable management of natural resources. In practice this guides how we handle everything from raw materials, certifications, avoidance procedures and restoring and mitigating negative consequences for biodiversity and ecosystems to handling the social impacts related to biodiversity.

Sometimes we even succeed in increasing populations in the environments where we have carried out projects. Examples of this are places where we develop green and blue infrastructure directly linked to the projects such as fauna passageways and fish bypasses.

Our ability to protect and preserve biodiversity is determined to a large degree by making the right decision from the start. In part we strive to do this in connection with applications for environmental permits for our own facilities and in part through important customer dialogues early on regarding construction contracts. Before we open a quarry, for example, we make an assessment of nature values and species to decide if the location is suitable. We also identify possible protective measures and we produce more and more biodiversity plans. So far we have produced 15 biodiversity plans in Sweden. Quarries can actually offer unique habitats for many threatened species and thereby contain higher nature values than their surroundings.

We examine operations that can impact threatened species in connection with applying for permits. Regarding land degradation or soil sealing, we usually handle any negative impacts in each project already in the planning and project development stages. Unintentional negative impacts during production, like hydraulic conductivity and impacts on rainwater flows, are handled in day-to-day operations.

We work actively together with suppliers and manufacturers to foster biodiversity and ecosystems.

We are also active in a number of industry initiatives to develop knowledge about, and drive issues concerning, biodiversity and ecosystems together with others in our industry. We have, for example, participated in two teams in an industry-wide project aimed at producing a practical tool to evaluate the effects of measures taken to support biodiversity. We are members of Business@Biodiversity Sweden which is a network focused on biodiversity and business benefits, Aggregates Europe’s (UEPG) biodiversity team and Sweden’s Bergmaterialindustri’s biodiversity and the road map for biodiversity production team.

Looking ahead

We continue to work on producing a road map with activities for Peab’s work on biodiversity and ecosystems as well as formulating targets in the area. One step in this is to review Peab’s Environmental Policy to evaluate the need for governance regarding biodiversity and ecosystems.

Targets and metrics

During 2024 our goal was to map Peab’s impact on biodiversity and biodiversity’s impact on the Group. Mapping was completed and is now the basis for our continued work on identifying appropriate targets and metrics.