Non-financial targets and sustainability

For more than 60 years Peab has contributed to sustainable social development and worked to improve everyday life for people in the local community. We do this by building everything from homes, schools and hospitals to bridges, roads and other infrastructure. Working sustainably is a strategic matter for Peab that always takes place locally, connected to everyday life based on our core values, business concept, mission, strategic targets and Code of Conduct.

We monitor our business based on nine external targets – both financial and non-financial targets – that also identify our prioritized sustainable aspects (Best workplace and Leader in social responsibility). We monitor our targets quarterly, semiannually or annually. In connection with the year-end report we present the outcome of all nine targets.

Most satisfied customers

It is imperative for a long-term, sustainable relationship that Peab deliver on its obligations. A satisfied customer is a customer that comes back and is fundamental to us. This is why our annual customer survey is a measure of how well we are meeting our customers’ expectations while also indicating where there is room for improvement. Our latest Customer Satisfaction Index (CSI), carried out in 2021, added up to 81 (80), which is a continued good result and higher than our target of 75. Customers’ perception of Peab as priceworthy has developed in a particularly positive direction and regarding our business areas Project Development stands out for its strong development. At the beginning of 2022 we received yet another accolade in Prognoscentret’s customer survey which showed Peab Bostad had the most satisfied homebuyers in Sweden. Peab Bostad particularly raised its ranking in the areas personnel and reliability. At the same time it was announced that our project Hamnutsikten (View of the Harbor) on Hammarö had the most satisfied customers of any single project in Sweden in 2021. The next target update will be provided after the fourth quarter in connection with the presentation of the year-end report 2022.

Best workplace

Serious accidents

A safe work environment is the foundation of our business. Everyone at our workplaces should be able to be there under safe and secure conditions, despite the fact that there are risks involved in the work we do. In order to prevent incidents and accidents at our workplaces we develop quality-ensured work methods and train our employees. Our focus is on planning and risk assessment in projects as well as learning from reported risk observations, incidents and accidents.

Our target of a contracting trend in serious accidents* comprises everyone at our workplaces. After a downward trend in 2021 the trend turned in March and serious accidents rose. During the third quarter there were twelve. The accidents occurred primarily in construction contract operations in Sweden and were mostly accidents from falling or connected to handling machines. Calculated for a rolling twelve month period there were 48 per September 30, 2022 (30 per September 30, 2021). Of these, 27 referred to our own employees and 21 referred to subcontractors.

It’s regrettable that the trend in accidents is developing in the wrong direction, showing how important it is to continuously work on our safety culture so as not to lose focus on the risks in our work. In order to turn the tide we have intensified our preventive work concerning the work environment. We have identified regions in need of special support and operations managers and site managers on all our construction projects have together studied the work environment. In addition, we are convinced that the investment in the construction industry’s safety park in Sweden will create long-term competence in, among other things, safety culture. We are also continuing to provide our information series to all our employees where we share good examples, advice concerning the work environment and safety as well as information on the latest in the industry.

We also monitor the number of workplace accidents with more than four days absence, excluding the day of injury (LTI4), and workplace accidents according to the same definition per one million hours worked (LTIF4) for our own employees. In the third quarter this year there were 28 (39 second quarter 2022) and the LTIF4 frequency rate for a rolling twelve month period was 6.2 (6.5 after the second quarter 2022).

Every remedied risk is one less potential accident, which is why we are highly focused on reporting and remedying risk observations*. During the first nine months of the year the organization reported around 43,000 risk observations. Peab has implemented a new system for reporting and managing risk observations, incidents and accidents in Swedish operations. The system has a number of advantages such as an even greater focus on seeing that planned measures are carried out. Operations in our other countries will implement the system during 2023.

* For a definition see section Alternative performance measures and definitions.

Attractive employers (eNPS)

We will be the obvious choice for anyone who wants to work in the industry. Everyone will be part of safe and including workplaces with good work conditions and opportunities to develop at Peab. Twice a year we hold our personnel survey The Handshake so that we can continuously develop and improve as co-workers and teams. The questions in The Handshake mainly concern productivity, the team’s sustainability and if employees are willing to recommend Peab as an employer to friends and acquaintances (eNPS). The latter is also one of our nine external targets that we report twice a year.

The response frequency in the spring survey was 84 percent (84) in the Group, accompanied by many suggestions for improvement. This shows the great interest our employees have in contributing to developing their own teams and all operations.

Within the strategic target Best workplace the eNPS (recommend Peab) score should be above the benchmark for the industry (industry and manufacturing). The eNPS score for the Group rose in the spring survey by four points and was 28 compared to 24 in the previous survey. This is clearly above the Nordic benchmark which is 20 compared to 15 in the previous survey. In principle all areas are “pointing upwards” and our employees continue to be satisfied at work. Worth noting is that the eNPS score is on the rise among women in general at Peab, where the number of female Peab employees that are satisfied at work is increasing at a faster rate than the industry benchmark. The next update will take place after the fourth quarter in connection with the year-end report 2022.

Leader in social responsibility

Climate target for carbon dioxide intensity

In recent years Peab’s climate and environmental work has increased in scope and we have honed our targets and metrics. As the Nordic Community Builder we have a big responsibility for reducing the considerable climate impact of the construction and civil engineering industry at the rate required by the Paris Agreement.

Peab’s operations primarily cause emissions through production of the material we use, the use of fossil fuel in our machines and vehicles and the use of the products we deliver such as buildings. We are working on a number of initiatives for climate improvement that reduce emissions and get us closer to our climate targets. We have an advantage in that we can supply our construction contract operations and the projects we develop ourselves with input goods and raw material through business area Industry, which augments our ability to aim for lower carbon emissions.

In 2045 Peab will be climate neutral. Our targets by 2030 are to reduce carbon dioxide intensity by at least 60 percent in our own operations (Scope 1 and 2) and for input goods and purchased services (Scope 3) by at least 50 percent compared to base year 2015. The outcome after 2021 reveals that carbon dioxide intensity is developing in the right direction although to different degrees. Carbon dioxide intensity in our own production has gone down by 40 percent compared to base year 2015 and by three percent for input goods and purchased services. This means that we are well on the road to converting the production we ourselves have control over but the greater challenge is when we are dependent on other parties for a reduction in our carbon footprint. It is therefore vital that we continue to make explicit and stringent demands as well as point out choices that are better for the climate in order to reduce emissions. The next target update will be provided after the fourth quarter in connection with the presentation of the year-end report 2022.

Equal opportunity
Only about five percent of those that apply to Peab for relevant, practical training are women. This means that the construction and civil engineering industry has a major role to play in taking advantage of all the competence society has to offer. As one of the largest Nordic community builders we want to challenge ourselves and thereby nudge the entire industry forward. Our target initially is therefore to strive for the percentage of women recruited to Peab for our core skills to always be higher than the percentage of women who have graduated with, for us, relevant degrees on the education markets. We are focused on core skills in production (skilled workers) as well as in production management and production support (white-collar workers). After the end of 2021 the percentage of women in new recruitments was 6.8 percent in production and processing compared to our target of more than 5.0 percent and 34.9 percent in production management and production support whereas our target was more than 28.5 percent. Our target for 2022 regarding equal opportunity in production and processing is continuing to surpass 5.0 percent while our target for production management and production support has been raised to surpass an outcome of 30.0 percent. The next target update will be provided after the fourth quarter in connection with the presentation of the year-end report 2022.