Climate Change Data

Environmental Metrics

ESG Focus Areas

• Health and working environment
• Skills and career development
• Equal opportunity and diversity
• Customer and supplier collaboration
• Responsibility in the supply chain
• Ethics and anti-corruption
• Resource efficiency
• Phasing out of substances hazardous to the environment and health
• Social engagement

Environmental Achievements

• Conversion of asphalt plants increased share of bio-oil, reducing carbon dioxide emissions by around 3,300 tonnes.
• Reduced energy consumption in asphalt production by about 20% by reducing laying temperature by around 30 degrees.
• Increased recycled material in asphalt production to 11%.

Social Achievements

• Launched a new employee survey, Handslaget, with high values in all index areas.
• Ranked 21st in Sweden’s Best Employers survey.
• Implemented a holistic approach to equal opportunity and diversity with clear objectives.

Governance Achievements

• Decision made to implement an external whistleblowing system in 2015.
• Five internal incidents of suspected corruption/financial irregularities were handled.

Climate Goals & Targets

Environmental Challenges

• Health and working environment represent a constant challenge.
• Need to attract and retain employees as competition becomes tougher.
• Equal opportunity and diversity requires further development.
• Responsibility in the supply chain requires more work.
• Improved resource efficiency is necessary.

Mitigation Strategies

• Goal set to halve the number of workplace accidents during 2015-2017.
• Focus week on working environment with dialogues at 566 workplaces.
• New initiatives for skills and career development planned.
• Holistic approach to equal opportunity and diversity with strategies and objectives adopted.
• Digital support in the form of a purchasing and supplier portal implemented.
• Preventive approach towards training on ethics and anti-corruption.
• Measures close to production to reduce environmental impact and financial savings.

Supply Chain Management

Supplier Audits: 23 site visits to suppliers outside the Nordic region

Responsible Procurement

• Peab's Code of Conduct based on the UN Global Compact.
• Supplier assessments before and after purchases.

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI G4

Sustainable Products & Innovation

• Lower temperature asphalt

Environmental Metrics

ESG Focus Areas

• Climate and Environment
• Social Engagement
• The Employees
• The Business

Environmental Achievements

• Reduced carbon dioxide emissions through increased use of bio-oil in asphalt production and the introduction of a 100% fossil-free diesel concrete mixer truck.
• Increased use of recycled material in asphalt production.
• Reduced energy consumption through energy-efficient measures on construction sites.

Social Achievements

• Signed a letter of intent with the Swedish Employment Service to employ refugees.
• Launched a language introduction course at the Peab School in Gothenburg for newly arrived youths.
• Continued collaboration with Mentor Sweden Foundation for youth mentoring.

Governance Achievements

• Implemented a new whistle-blower system.
• Signed an industry agreement to fight bribes and corruption.
• Established a new Sustainability Council.

Climate Goals & Targets

Environmental Challenges

• Competition for skilled workers.
• Workplace accidents in the construction industry.
• Ethical risks such as corruption and bribery.
• Environmental risks such as extreme weather and greenhouse gas emissions.
• Waste management in construction and civil engineering.

Mitigation Strategies

• Systematic work environment management and training.
• Preventative ethics work, improved internal controls, and a higher level of knowledge and awareness.
• Energy-efficient solutions, renewable energy sources, and waste reduction initiatives.
• Developing key ratios for systematic work on improvements.
• Implementing a new whistle-blower system.

Supply Chain Management

Responsible Procurement

• Supplier assessments, evaluations, and purchasing and support measures through an in-house developed purchasing and supplier portal.
• Requirement that suppliers live up to Peab’s Code of Conduct.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather

Transition Risks

• Higher costs for energy

Opportunities

• Development of energy-efficient products and services

Reporting Standards

Frameworks Used: GRI G4

Certifications: ISO 9001, ISO 14001, OHSAS 18001 (Finland)

Sustainable Products & Innovation

• 100% fossil-free diesel concrete mixer truck
• Hybrid wheel loaders

Awards & Recognition

• Peab School in Ängelholm nominated to SIQ’s quality award Better School 2015.

Environmental Metrics

ESG Focus Areas

• Social
• Environment
• Economic

Environmental Achievements

• ECO-Asfalt® represented 95 percent of Peab’s total production at stationary plants in Sweden, reducing carbon dioxide emissions by about 39,000 tons annually.
• Collective environmental measures in stationary plants reduced climate impact by 61 percent since January 2015.
• Use of fossil-free diesel (HVO100) amounted to about 38 percent of total diesel use.

Social Achievements

• Continued growth in the percentage of women in the company, reaching 13 percent.
• 3,380 employees received training in equality, diversity, and equal treatment.
• Internship offered to 61 immigrants through the 100 club, with 27 later employed.
• Statement of intent against harassment and abuse signed with trade colleagues.

Governance Achievements

• Updated Code of Conduct implemented under the title 'Good and Fair Construction'.
• One case of suspected corruption and nine internal incidents of suspected financial irregularities were handled, leading to labor law measures and police reports.

Climate Goals & Targets

Environmental Challenges

• Resource and competence shortage in the industry.
• Surplus of houses in higher price brackets in some market sections.
• Longer sales processes for houses due to stricter financing requirements.
• Environmental risks related to energy costs, greenhouse gas emissions, and extreme weather events.

Mitigation Strategies

• Active work to attract, recruit, develop, and retain expertise, including internships and the Peab School.
• Focus on mid-priced housing segment where demand remains high.
• Preventive work on climate impact, resource efficiency, and phasing out hazardous substances.
• Efficient purchasing processes with reliable suppliers.
• Energy mapping and implementation of energy follow-up systems.

Supply Chain Management

Responsible Procurement

• Quality-ensured suppliers
• Comprehensive view of responsible purchasing
• Clear demands and written contracts
• Code of Conduct included in all contracts
• Ethics paragraph in all contracts
• Quarterly supplier base controls
• Semi-annual checks on workplaces concerning work environment, work climate, and working conditions

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather causing problems and delays

Transition Risks

• Higher costs for energy and emission of greenhouse gases

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 14001

Sustainable Products & Innovation

• ECO-Asfalt®

Environmental Metrics

ESG Focus Areas

• Social
• Environment
• Economic

Environmental Achievements

• Peab Asphalt reduced its CO2 emissions by 42,000 tons through ECO-Asfalt®.
• ECO-Asfalt® represented 95 percent of Peab’s total production at stationary plants in Sweden.
• Increased use of fossil-free fuel to 47 percent.

Social Achievements

• Reached goal of The 100 Club, offering internships or jobs to 102 immigrants.
• 19,300 risk observations registered and more than 3,600 employees educated in equal treatment, leadership and ethics.
• Peab awarded the 2018 Gold Excellence Prize in leadership development.

Governance Achievements

• Continued work with safe business, including stricter self-monitoring, tighter purchasing steering, and more proactive risk management.
• Updated Code of Conduct reviewed with employees and stakeholders.
• Zero incidents of anti-competitive activities, breaches of competition law, or monopolistic behavior leading to legal action.

Climate Goals & Targets

Environmental Challenges

• Slowdown in the Swedish housing market.
• Competency challenges in the industry and difficulty in mirroring society’s diverse composition.
• Risks related to suppliers and subcontractors not conforming with laws, conventions, and Peab’s regulations.

Mitigation Strategies

• Broad range of operations to counter downturns in some product areas.
• Strategic work with short and long-term skills recruitment, including cooperation with educational facilities, integration work, and internal training.
• Stricter self-monitoring, tighter purchasing steering, and more proactive risk management; tougher demands on other parties; collaboration projects to form a healthier industry.

Supply Chain Management

Supplier Audits: 67 percent of business area Construction’s purchases monitored via system support including Code of Conduct.

Responsible Procurement

• Code of Conduct included in written contracts with suppliers.
• Daily systematic control of supplier base against predefined parameters (financial status, risk of irregularities, social obligations).

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather

Transition Risks

• Higher costs for energy and the emission of greenhouse gases

Opportunities

• Renewable fuels, energy saving measures, and innovations in this field.

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 14001, OHSAS 18001 (Finland), ISO 9001:2015 (some Swedish operations)

Sustainable Products & Innovation

• ECO-Asfalt®

Awards & Recognition

• 2018 Gold Excellence Prize in leadership development

Environmental Metrics

ESG Focus Areas

• Social
• Environment
• Economic

Environmental Achievements

• Reduced climate impact from production by 63% or 153,000 tons since 2015. In 2019 the reduction was 41,000 tons.
• ECO-Asfalt® represented more than 95% of Peab’s total production at stationary plants in Sweden by the end of 2019.
• Launched ECO-Betong™, a climate-improved concrete with a slag blend, reducing CO2 emissions by 50,000 tons annually.

Social Achievements

• Number of serious accidents decreased by 45 percent in 2019, from 44 to 24.
• Peab Life launched, combining sponsorship with employee engagement to benefit youths.
• 1,586 employees trained in diversity and equal treatment in 2019.

Governance Achievements

• Peab signed the UN Global Compact in 2012 and continues to follow it.
• Established a Group method for systematically reviewing suppliers through self-assessment and on-site reviews.
• Zero incidents of anti-competitive activities, breaches of competition law, or monopolistic behavior leading to legal action were discovered in 2019.

Climate Goals & Targets

Environmental Challenges

• Slowdown in the economy and expected fall in housing prices.
• Supplier Nynas AB applied for company reorganization, impacting bitumen supply.
• Intense competition for skilled employees.

Mitigation Strategies

• Broad range of operations to counter downturns in some product areas.
• Complementing Nynas AB with other suppliers to ensure bitumen deliveries.
• Strategic work with short and long-term skills recruitment, including cooperation with the education system, integration work, and internal training.

Supply Chain Management

Supplier Audits: Nine supplier reviews conducted in 2019.

Responsible Procurement

• Code of Conduct included in all contracts with suppliers.
• Daily systematic checks of suppliers against predefined parameters (financial status, risk of irregularities, social obligations).

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather

Transition Risks

• Changes in demand
• Higher raw material prices
• New laws

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 14001 (most operations), OHSAS 18001 (Finnish operations), ISO 45001 (Finnish operations - planned for 2020)

Sustainable Products & Innovation

• ECO-Asfalt®
• ECO-Betong™

Awards & Recognition

• Peab’s Norwegian subsidiary Bjørn Bygg received the Naeringsforeningen award “Årets foregangsbedrift 2019” for its work with apprentices.

Environmental Metrics

ESG Focus Areas

• Social
• Environmental
• Economic

Environmental Achievements

• Reduced energy intensity by 16% compared to 2015.
• Reduced carbon dioxide intensity (Scope 1+2) by 40% compared to 2015.

Social Achievements

• 100% of employees covered by an internal health and safety management system.
• Continued development of employee training programs (average training hours per employee reported).

Governance Achievements

• 100% of employees informed about the Anti-corruption Policy.

Climate Goals & Targets

Environmental Challenges

• Errors in reporting from 2020 related to energy consumption and waste data.
• Challenges in compiling accurate and consistent environmental data across various operations and suppliers.

Mitigation Strategies

• Refined data compilation processes for energy and waste data.
• Dialogue with suppliers to ensure better data quality and standardization.

Supply Chain Management

Responsible Procurement

• Code of Conduct
• Basic requirements in written contracts

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather
• Floods

Transition Risks

• More stringent legal requirements
• Higher costs for emissions

Reporting Standards

Frameworks Used: GRI Standards: Core

Certifications: ISO 14001, ISO 45001

Sustainable Products & Innovation

• ECO-Ballast (ECO-Mineral aggregates)
• Merit (binder replacing cement in concrete)

Environmental Metrics

ESG Focus Areas

• Climate change
• Work environment and safety
• Equal opportunity and inclusion
• Ethics and anti-corruption
• Sustainable supply chain

Environmental Achievements

• Reduced carbon dioxide intensity in own production by 49% since 2015
• Launched ECO-products (ECO-Concrete, ECO-Prefab, ECO-Asphalt) reducing environmental impact
• First building in the world built with fossil-free steel
• Increased use of reclaimed asphalt pavement (28% in Nordic asphalt production)

Social Achievements

• Launched "The Construction Year," a trainee program for women in construction
• Improved eNPS (employee Net Promoter Score) to 26, above industry benchmark
• Reduced serious accidents to 48 (from 49 in 2022)
• Rectified salary differences between men and women in comparable roles

Governance Achievements

• Updated Code of Conduct and ethics training for employees
• Established a Sustainability Council
• Implemented digital safety walks and monitoring

Climate Goals & Targets

Environmental Challenges

• Weak housing market impacting Construction and Project Development
• High material and energy prices
• Supply chain disruptions
• Low percentage of women in the workforce
• High number of serious accidents

Mitigation Strategies

• Streamlining operations in construction production, housing development, and support functions
• Shifting operations from housing projects to other construction projects
• Investing in ECO-products and increasing production capacity
• Implementing "The Construction Year" program
• Intensifying work on safety culture and preventive measures

Supply Chain Management

Supplier Audits: 37 supplier audits in 2023

Responsible Procurement

• Suppliers Code of Conduct
• Framework contracts
• Strategic supply plans
• Third-party workplace checks (Sweden)
• Category-steered purchasing

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather

Transition Risks

• Stringent legal requirements
• Higher costs for emissions

Opportunities

• Development of energy-efficient products and services

Reporting Standards

Frameworks Used: GRI

Certifications: Swan ecolabel

Third-party Assurance: Ernst & Young AB

UN Sustainable Development Goals

• Goal 5 (Gender equality)
• Goal 7 (Affordable and clean energy)
• Goal 8 (Decent work and economic growth)
• Goal 9 (Industry, innovation and infrastructure)
• Goal 11 (Sustainable cities and communities)
• Goal 12 (Responsible consumption and production)
• Goal 13 (Climate action)
• Goal 14 (Life below water)
• Goal 15 (Life on land)

Peab's initiatives contribute to these goals through various measures described in the report.

Sustainable Products & Innovation

• ECO-Betong (ECO-Concrete)
• ECO-Prefab
• ECO-Asfalt
• Merit (slag-based binder)
• ECO-Ballast (recycled mineral aggregates)