S1 – Own workforce

Peab and own workforce

Positive impacts / opportunities

Negative impacts / risks

Peab is located in large and small places throughout the Nordic region. At Peab our some 13,000 employees – and the subcontractors and other non-employed workers we hire annually – have the opportunity to build the local community in the places where they live and work. We want to offer value-​creating and developing work assignments that employees solve together. We always strive to create opportunities for good and safe working conditions, equal treatment and equal opportunity. Every employee should be met with good working conditions and opportunities to develop as well as safe and inclusive workplaces. This requires that operations are rooted in a strong company culture based on our values and responsibility in leadership close to operations.

Our broad range of op­er­a­tions en­tails a pletho­ra of pro­fes­sion­al roles at Peab. At the lat­est count the num­ber of pro­fes­sions amount­ed to 228, cov­er­ing every­thing from ge­ot­ech­ni­cians, as­phalt pave­ment lay­ers, con­struc­tion en­gi­neers, skilled work­ers in civil en­gi­neer­ing and dri­vers to white-​​col­lar work­ers in support functions like HR, work environment, law and communication. Our local focus and strat­e­gy for lo­cal­ly pro­duced com­mu­ni­ty build­ing means that Peab has a large share of our own skilled work­ers, es­pe­cial­ly com­pared to other com­pa­nies in the con­struc­tion and civil en­gi­neer­ing in­dus­try.

The issue of equal opportunity in construction and civil engineering is an industry-related challenge. The portion of women is also small in Peab, especially among skilled workers. Therefore we work actively with this issue including collaboration with the educational system. We are convinced that an inclusive company culture creates better workplaces and a more successful business.

Because the con­struc­tion and civil en­gi­neer­ing in­dus­try suf­fers from in­juries it is particularly important that we continuously and with a laser focus work on preventing injuries and nearing our zero vision concerning workplace accidents.

We make the same demands on our subcontractors and other non-employed workers at our workplaces. A prerequisite for this is a good dialogue and close collaboration on workplace and work environment matters along with setting requirements and regularly monitoring deliveries and work methods.

Our own workforce comprises all skilled workers and white-collar workers, employees and non-employed workers, who work for the business under employment-like forms. Employees comprise both permanent employees and temporary employees. For Peab subcontractors, employees from temporary employment agencies and consultants are examples of non-employed workers. For instance, they can work for Peab on a project basis, regularly or per hour. Workers in the value chain are not included. They are found in ESRS S2.

Regarding own workforce Peab’s impact is material in the three sustainable topics working conditions, equal treatment and opportunity for all and other work-related rights and all the sub-topics under these areas.

Regarding Peab and own workforce, here are some activities that have or can have an impact:

Own operations:

• Everyone at our construction sites have access to the right safety equipment and workplaces are inspected regularly.
• We regularly conduct work environment evaluations, hold safety courses and update working conditions as well as make specific risk assessments regarding health, safety and the work environment.
• We hold negotiations with unions and have procedures for reporting and systematically managing violations of work-related rights.
• We carry out controls and limit the number of non-employed workers in order to reduce labor law risks.

Our own workforce is linked to UN’s 8th global goal for sustainable development: Decent work and economic growth.

Process regarding materiality

We have conducted a double materiality assessment for S1, own workforce, on Group level. Key employees and functions with knowledge and particular insight into Peab’s operations and our work with employees have participated in evaluating Peab’s impacts, risks and opportunities in relation to our own workforce. These have included competence from six different Group functions:

1. Work environment
2. Labor laws
3. Employer brand, recruitment and talent recruitment
4. Remuneration, salaries and pensions
5. Diversity and inclusion
6. HR systems and HR support

In addition, a number of employees from other Group functions have participated in the work. This has taken place through meetings and workshops where we have compiled and evaluated Peab’s sustainability matters in all the sustainable topics and sub-topics for S1 according to the template we produced. 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.

We continue to work on developing our process and assessments in order to fully determine the result of the double materiality assessment. This work comprises continued data compilation from stakeholders in the organization, including countries where we have operations and companies.

This is how we work

Since construction and civil engineering operations are personnel intensive and employees are a prerequisite for Peab’s ability to manifest our business model and strategy it is crucial that we are a responsible employer for our employees and non-employed workers. We measure progress in this work in the strategic target “best workplace”. Two of Peab’s overarching Group external targets are directly linked to own workforce: the industry’s most attractive employer (eNPS), and zero vision for fatal accidents and contracting trend in serious workplace accidents. The targets have been set by executive management and comprise metrics, measurement methods and strategic improvement areas. They are then broken down in sub-targets and concretized in the various operations based on the business areas’ specific circumstances and challenges.

Our work and the responsibility we take in own workforce is primarily regulated by national laws, trade agreements and collective bargaining agreements, all of which we comply with. We have collective bargaining agreements that are negotiated together with elected union representatives for all employees (100 percent), whether or not an employee is a union member. Our work is supported by also complying with international guidelines, norms and initiatives: UN Global Compact, UN’s Human Rights Declaration, UN’s Global Goals, ILO’s core conventions on fundamental principles and rights at work, OECD’s Guidelines for Multinational Enterprises, UN’s Guiding Principles on Business and Human Rights (UNGP), the general principles in the international regulations for human rights and The OECD Anti-Bribery Convention and its recommendations. Our policies and guidelines conform to these commitments.

Responsibility and policies

Our foundation is our core values – down-to-earth, developing, personal and reliable which help us to form our culture and what we call the Peab Spirit as well as guide us in business. In addition to these values Peab has a Code of Conduct and a Supplier Code of Conduct that, among other things, regulate working conditions and employment terms and include issues that concern human rights and work-related rights. Examples of these are the right to organize, prohibition of child and forced labor and zero tolerance of discrimination. Our Code of Conduct and Supplier Code of Conduct also ensure that we and our non-employed workers (and subcontractors) take responsibility for both the risks and opportunities that occur in the business.

Other governance documents we follow are Group policies in areas like the work environment, diversity and inclusion. Every year we go through all the policies and update them as necessary. We also consider viewpoints from unions in order to identify risks and opportunities for improvement. We have several guidelines based on the policies such as our equal treatment plan and order and safety rules. Additionally we are certified according to a number of standards in different Peab companies. These include ISO 9001:2015, ISO 14001:2015, ISO 45001:2018.

We have guidelines for the process of due diligence that describe how the company identifies and assesses potential negative impacts on humans and the environment as well as how we work actively to avoid and minimize them. We regularly evaluate how effective our measures are, communicate openly about our efforts and take the initiative to rectify situations where necessary. The guidelines also contain procedures for compensating any negative impacts caused by our operations. The responsibility for complying with these procedures lies ultimately with the CEO but is delegated to the line managers. The Group’s Sustainability Council informs and supports the organization as well as monitors that the process is complied with. Peab’s guidelines for the process of due diligence are based on UN’s Guiding Principles on Business and Human Rights (UNGP) and OECD’s Guidelines for Multinational Enterprises.

If an employee deviates from the principles in the Code of Conduct it can lead to corrective measures and in serious cases terminating employment. When a non-employed worker (or supplier in general) does not comply with the Code or clearly deviates from it, as a final resort we can end our business relationship with the counterparty. Incidents and possible damages as well as infringements against the company’s values, rules and codes require action and are investigated. Collective bargaining agreements regulate disciplinary measures.

The strategic work linked to the material topics in the target best workplace is done on Group and business area levels, together with the relevant competence on all levels. Our priorities are the same in all four countries where we are active in with, however, consideration to differences in national laws. Ultimate responsibility always lies with management that is supported by specialists. Leadership is particularly crucial to Peab’s ability to achieve set targets and for employees to be able to develop in their careers. Therefore developing management is a constant priority.

Continuous development of employees is also essential. Every employee has the right to at least one goal and development discussion per year with their supervisor. In addition to these formalized discussions, employees also develop through the day-to-day contact between supervisor and employee. Everyone who works at Peab should participate actively in their own development.

Governance in Peab is supported by several collaborating systems such as HR, health and safety and the Group’s management system.

Peab’s partners’ work environment performance is also important for our work environment work. It is primarily encompassed in purchasing processes in the form of demands and guidelines as well as in workplace introductions before work begins.

Work methods and focus areas

Working conditions

Regarding working conditions, we work with issues that include secure employment, working time, adequate wages, social dialogue, freedom of association, collective bargaining agreements, work-life balance and health and safety. With good working conditions and benefits we want our employees to have a sense of wellbeing. For example, we work with standardized processes for employment to foster reasonable employment terms that also comply with collective bargaining agreements, in every employment process and in the business. This includes health insurance, a pension and the right to parental leave. We offer salaries and terms on market levels that allow for balance between work and private life. At Peab the nature, performance and skills level of an employee’s job decide their pay level. In accordance with Swedish law and current collective bargaining agreements, a salary survey is conducted every year in Swedish operations to ensure that all salaries are factually based. Salary processing in Norway, Denmark and Finland is performed according to national laws and collective bargaining agreements.

Health

We regularly carry out a number of activities primarily focused on preventive measures and identifying health risks at an early stage. Since 2020, in collaboration with the occupational health service, we have been using a model in Sweden, HealthCheck, where employees first answer questions about their experienced health, lifestyle and work environment from which a health profile is generated. Based on this result employees are given an individual program that can include a physical examination or meeting a physiotherapist or psychologist/behaviorist. There are also Group programs based on collective results such as training, stress or conflict management. Peab has contracts with occupational health service suppliers in the countries where our employees work. Through our optional group insurance we also offer all employees the opportunity to sign up for health and/or accident insurance.

All Peab employees have access to Peab’s range of benefits which includes contributions to activities that help keep employees healthy and other subventions. Peab Leisure is part of Peab’s benefit package intended to help employees make health promoting choices. Our starting point is the desires of the individual and their active involvement. Peab Leisure is also active in creating opportunities for employees to do things together that generate better health, wellbeing and a feeling of unity in the company. These activities can take on different forms depending on living conditions and interests.

All Peab’s some 13,000 employees (100 percent) are covered by a health and management system which is supported by several tools. This also applies to everyone else (100 percent) at Peab’s workplaces, for example subcontractors, that we have a coordinated responsibility for.

Peab’s workplaces are alcohol and drug free. In 2024 we updated our alcohol and drug policy that comprises all employees and workplaces where Peab works. The policy states, among other things, that Peab can carry out drug tests at workplaces.

Safe work environment

Although there are high numbers of injuries in the construction and civil engineering industry we can never accept that people are injured or get sick because of their job. A safe work environment is fundamental to our business. Everyone at our workplaces should be able to work under safe and secure conditions, despite the fact there are risks involved in the work we do and anyone has the explicit right to refuse to do a job if it cannot be done safely.

Accident prevention measures are the core of our work on the work environment and we are always working on our safety culture. Every remedied risk is one less potential accident. Peab works systematically with the work environment and several sections of operations are certified according to ISO 45 001. To prevent accidents and incidents at our workplaces Peab develops quality-ensured and systematic work methods. We hold regular safety inspections at construction sites and remedy identified shortcomings afterwards. We also put great emphasis on teaching work environment reports which are meant to facilitate workplaces to work right. We have also developed a work method so that our employees produce work preparations together before they begin a job. Risk management, in other words identifying risks and measures, is emphasized in work preparations. Employees report risk observations which we learn from and remedy as far as possible. Interest in reporting risk observations is high with around 46,000 (55,000) reported observations per year.

Peab also has a large number of roadwork sites affected by passing traffic which entails a risk that requires special safety arrangements. On the other hand, the way we arrange roadwork sites also affects passing traffic. Our function, Production support TW, is responsible for increasing knowledge about traffic and safety arrangements, thereby creating safe roadwork sites. For example, the function supports projects in the calculation and production phases, visits ongoing production at roadwork sites and provides direct feedback and analyzes the some 150 inspections made by the Swedish Transport Administration. Last year it inspected over 70 Peab roadwork sites. The function also helps to spread experiences and good examples in our organization through internal, mandatory courses within “Roadwork” that are often required by our customers. In this way we ensure work on continuous improvement and maintain a high level of competence in traffic safety.

Peab has a well-defined system that specifies supervisors’ roles concerning the work environment to ensure that nothing is missed. They have work environment specialists in various roles to support them on all levels in the Group. We emphasize collaboration and our safety representatives play an important part in work environment work. There are currently around 700 safety representatives in our organization but we always encourage more employees to take on this role. Work environment work is integrated with the Group’s work against discrimination and victimization.

Equal treatment and equal opportunity

Equal treatment and equal opportunity for all means the same pay for the same work and equality in employment, education and competence development. We work actively to create and reinforce an inclusive company culture. We also work actively against discrimination, violence and harassment at the workplace for a safer work environment for everyone. The principle of equal treatment is a general principle in European legislation stating that all individuals in comparable situations should be treated equally.

It is a given that our employees are treated with respect for their differences and essential that we as employers take advantage of each employee’s unique skills and perspective. Everyone has the right to a safe and inclusive work environment hence our efforts in this field includes everyone at our workplaces. We can never accept any form of social exclusion at our workplaces at the same time we are aware of the risk that harassment and discrimination can occur. In general women and minority groups run a higher risk of this. Inclusion is high on Peab’s agenda and we continually measure these aspects in our personnel survey. We look at the level of experienced inclusion, how inclusive our language is, psychological security, how strong our civil courage is and how inclusive our company culture is.

Peab has an equal opportunity plan that also includes goals and an action plan against victimization and discrimination. A particular goal in the plan is to increase the inclusion of women. All employees and managers with personnel responsibility take e-education courses in equal treatment. Grounds for discrimination listed in the equal opportunity plan are gender, religion or belief or life view, sexual orientation, age, disability, ethnicity, political opinion, activity or nationality, gender identity or expression, trade union association or activity, parental leave, pregnancy and labor form.

Last year eleven percent of our employees were educated in diversity, equal opportunity and inclusion, which means around 1,450 (1,100) employees. All new employees have to take part in a mandatory course which is updated regularly. We make sure that everyone at our workplaces are aware of our policies, including the equal opportunity plan that contains guidelines regarding anti-discrimination and harassment. In 2024 we also began an overall analysis to identify risks for discrimination and harassment in our organization’s activities and processes. The work will continue in 2025. We also have an Ethics Council which ensures that reports of victimization and discrimination are investigated by impartial expertise.

Competence development

Peab has a flat and decentralized organization. Employee surveys show that team spirit is strong and at the same time every employee is important and can have an effect on both their workday and how Peab functions as a company. Our size and extensive operations in the Nordic region means we can offer a lot of opportunities regardless of whether someone wants to grow in their existing role, try on new roles and tasks or develop their leadership skills or specialist expertise. Someone might even want to develop their career in some other place. In other words, development can take many different forms, depending on individual needs.

We also believe that every employee at Peab, whatever their position, gender or life situation, should be able to combine parenthood with their work and the development of their career should not be hindered by it.

In recent years we have further developed our digital methodology for competence development and now digital learning is our everyday channel for training at work. We currently have a range of 799 (859) courses that all our employees can apply to through our tool for competence development and education. In connection with annual goal and development discussions, employees and supervisors can plan for digital courses and add them to the employee’s individual development plan. Within our support functions, and based on research insights in behavioral science, we have produced a tool in goal and development discussions that reduces the risk of subjectivity in managers and promotes merit-based evaluations.

Other work-related rights

Peab’s Code of Conduct clearly establishes that we never accept child labor, human trafficking, forced labor or labor linked to any kind of violence or punishment. Working must always be voluntary.

Peab’s business operates exclusively in the Nordic region where all the Nordic countries have ratified ILO Co₂9, Forced Labor Convention, 1930 (No.29). We do not hire guest workers from informal actors, which means we can further minimize the risks of breaches in work-related rights including inadequate housing, child labor, forced labor or abuses of personal integrity. For non-employed workers like temps who are sometimes used to safeguard resources and schedules in projects, the risks of breaches in work-related rights are always somewhat higher. It is more difficult for us to control non-employed workers, although we continuously make checks through our system for “Secure procurement” and strive to limit the number of employees not employed by Peab. In addition, the process of due diligence serves us well in these instances.

We had no reported cases of breaches in work-related rights in 2024.

Reporting channels

In matters that concern employees’ rights and conditions, dissatisfaction or incidents they should first of all contact their closest supervisor or senior supervisor and secondly the local HR function. Employees are also encouraged to turn to other supervisors or people in the local HR department, safety reps or union reps or the occupational health service. We also have a whistleblower function that is available to our entire own workforce as well as non-employed workers and other external parties to report any forms of misconduct or infringements. Reports to the whistleblower system can be anonymous. All cases are handled according to the same documented process that includes an investigation and action thereafter. Peab’s whistleblower function is also designed so that we can improve our operations through continuous learning. We regularly identify and analyze the frequency, patterns and causes of the reports in order to prevent future problems. A compilation of the reports is presented annually to the Board and every half-year to executive management.

The employee survey that the company uses to gather feedback and perspective from our own workforce includes the Handshake that goes out twice a year and the annual work environment evaluation on Group level. On top of that there are always reporting channels and continuous monitoring through various meetings between employees and their closest supervisor. At the annual goal and development discussions we collect, through supervisors, feedback and employees’ perspective on the work environment and impact from the company.

Activities 2024

• Education: We held our ordinary leadership development program, which is offered to supervisors on four different levels. We also had a special program for supervisors to facilitate success in their roles. In total we trained 150 supervisors, from Tromsø in the north to Trelleborg in the south, and all in all we carried out developmental actions for some 2,600 (2,000) managers in 2024. Additionally, we offered a wide range of seminars as well as coaching and mentorship. Very often our supervisors take a leadership role directly after getting their degree and therefore they are an important group for us to support.
• Work environment: We held Peab’s annual work environment week in our four operative countries. A number of activities were carried out during the week such as training in the elements of our core values and discussions on how Peab’s fundamental values can be further integrated into daily work. The target was to discuss this together in work teams under the theme “There is no I in team”.
• Work environment: We held our annual Safety Day in all our operative countries where we focused on initiating discussions concerning our core values; down-to-earth, developing, personal and reliable.
• Work environment: We continued with safety walks where visible and clear leadership promotes a good work environment by noticing what works well and what needs improvement.
• Work environment: In our annual work environment evaluation employees are given the opportunity to evaluate their work environment in the categories work time, workload and equal opportunity. The outcome for 2024 continued to be stable and well in line with the benchmark. It showed a high level of wellbeing in general and a lot of interest in work environment matters. The outcome in the area workload has gone down somewhat reflecting that it is a challenge. The area equal opportunity improved and the outcome is higher among white-collar workers than among skilled workers.

Number of employees – business area

Per De­cem­ber 31, 2024

Number of employees – per gender

Per De­cem­ber 31, 2024

Number of employees – per country

Per De­cem­ber 31, 2024

At the end of 2024 the number of skilled workers was 53 (53) percent while white-collar workers represented 47 (47) percent.

Information about employees/other workers

Data has been collected from HR systems in Sweden, Norway, Finland and Denmark and totaled thereafter. Employee data is presented in headcount.

Number of employees per country and gender

The diagrams show the number of employees per December 31, 2024. At the end of 2024 Peab had 13,383 (14,107) employees, of which 15 percent (15) were women and 6,290 (6,600) were white-collar workers and 7,093 (7,507) were skilled workers. Peab had no employees without guaranteed work time in their employment contracts in 2023 and 2024, throughout the entire Peab Group.

At the end of 2024 the number of skilled workers was 53 (53) percent while white-collar workers represented 47 (47) percent.

Number of education hours

Wages and remuneration

Peab’s analysis of wages paid in 2024 detected 20 (20) cases of subjectively set wages between women and men for comparable professions, skills and positions. These pay differences were rectified.