Climate Change Data

Environmental Metrics

ESG Focus Areas

• Happy Neighbourhoods
• Protecting our planet
• Passionate workplace
• Reliable business
• Embedded environmental respect
• People centric culture
• Governance for high performance

Environmental Achievements

• Reduced Scope 3 emissions by 8% since the base year 2018. Completed projects will annually avoid 1699 MWh of energy use and 703 metric tonnes of CO2e emissions.
• 100% of new housing starts in Sweden and St. Petersburg were eco-labelled (Nordic Swan Ecolabel). 59% in Norway.

Social Achievements

• Maintained employee engagement (benchmark index 85/80)
• Achieved 98% safety performance (Zero Harm program)

Governance Achievements

• Established a Green Financing Committee (GFC) to oversee green investments.

Climate Goals & Targets

Environmental Challenges

• Scope 3 emissions increased slightly compared to the previous year due to a weak correlation in time between housing starts and purchases of goods and services.

Mitigation Strategies

• Working towards a circular production model, using sustainable materials, and developing resource-efficient buildings.

Supply Chain Management

Responsible Procurement

• Use of sustainable and non-hazardous materials

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, UN Global Compact, OECD Guidelines for Multinational Enterprises, UN Global Sustainable Development Goals (SDGs)

Certifications: Nordic Swan Ecolabel

Environmental Metrics

ESG Focus Areas

• Climate change
• Social sustainability
• Governance

Environmental Achievements

• 69 per cent of the housing starts were over 10 per cent more energy efficient than required under the regulations for new builds.
• Reduced climate impact in line with our climate targets approved by SBTi for a level of 1.5 degrees C. Scope 1–2: –35% Scope 3: –40%
• In the Tinatie project in Kirkkonummi, Finland, Bonava is constructing two multi-family housing units using green concrete. By using green concrete, which replaces some of the cement with slag aggregates, Bonava reduces its carbon emissions from the concrete frame by 20 per cent.

Social Achievements

• Bonava maintains an AA grade in the MSCI ESG 2022 sustainability ranking
• Bonava has a rating of A- in CDP, which means that we rank among the top layer in the industry as regards climate reporting.
• Bonava has been nominated as one of the top three by Brilliant Future in the “Employer of the Year” category for the construction and manufacturing sector out of some 50 companies in Sweden.
• Customer satisfaction increased in four of six countries in 2022. Finland displayed the most impressive increase, and is closing in on the target of NPS 50. The Baltic countries are steadily improving over time: Latvia has now reached the target of NPS 50 and Lithuania showed a very strong start at NPS 43.

Governance Achievements

• Bonava has a central Risk Committee and an annual process for systematic risk assessment and internal control for financial and non-financial risks.
• Bonava’s Sustainability Report was audited and complies with the statutory requirements on sustainability reporting and the Global Reporting Initiative standards according to PwC.
• Bonava has implemented a comprehensive compliance programme that includes training in anti-corruption and ethics.

Climate Goals & Targets

Environmental Challenges

• Market conditions for all operations in our industry changed entirely in 2022. A strong housing market at the beginning of the year turned into a more challenging situation at the end of the year.
• Increased key interest rates and high inflation as well as concern over geopolitical security in Europe in 2022 created the lowest level of confidence in the future among consumers in decades.
• Increased energy costs also resulted in a weaker private economy for consumers.
• Increased production costs owing to factors such as shortages of materials and increased transportation costs.
• The Russian invasion of Ukraine on 24 February was the start of a chain of events that have increased uncertainty, leading to rising prices for materials and services, and significant increases in the interest rate.

Mitigation Strategies

• Bonava presented revised financial targets in conjunction with its year-end report for 2022.
• Bonava conducted a review of its selling and administrative expenses, as well as of its indirect costs, during the year. Moreover, project governance was improved, which allowed the organisation to efficiently manage challenges such as shortages of materials and cost increases.
• The organisation has done a great job to ensure increased profitability in delivered projects and we have strengthened the underlying gross margin for the full year to 14.0 per cent (13.2).
• We are acting quickly, but project development of housing units is a long-term operation and changes have only a gradual effect.
• Our investment process is central to pursuing improvements, and we have made several changes to strengthen this: prior to a project start, we must have the right team in place; estimated project costs must be under control; and there must be a satisfactory sales rate.
• To remain competitive in the prevailing market, we routinely review our cost base. We have taken measures to increase efficiency and reduce overheads, which will have a gradual effect. The total estimated savings is SEK 370 M on an annual basis starting on 1 January 2024 and compared to the cost level in 2022.
• We expanded our attractive building rights portfolio with building rights for both consumers and investors.
• Bonava’s financial position remains good, with unutilised credits of SEK 2.5 Bn as of 31 December 2022. We completed a refinancing of our revolving credit facility (RCF) in the fourth quarter, securing SEK 3 Bn until 2025.

Supply Chain Management

Responsible Procurement

• UN Global Compact principles
• Bonava’s Code of Conduct

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Universal Standards 2021, UN Global Compact

Third-party Assurance: PwC

Sustainable Products & Innovation

• Housing units with rooftop solar panels
• Housing units with fossil-free heating systems
• Single-family homes with solar panels
• Buildings constructed using green concrete

Awards & Recognition

• AA grade in the MSCI ESG 2022 sustainability ranking
• A- rating in CDP
• First place in the Real Estate Brand Value Study covering residential developers in the German market

Environmental Metrics

ESG Focus Areas

• Climate change
• Social sustainability
• Governance

Environmental Achievements

• Reduced climate impact in line with SBTi validated targets (Scope 1-2: -49%, Scope 3: -55%)
• Bonava Finland delivered Bonava’s first Taxonomy-aligned projects to a property investor.
• Bonava Germany joined the Sustainable Concrete Leaders network.

Social Achievements

• Completed the final stage of the Ältadalen project in Nacka, constructing 204 single-family homes in a new residential district.
• First B2M project in Tallinn ready for occupancy (99 apartments).

Governance Achievements

• Implemented restructuring measures in Germany, Sweden, and Finland, expected to reduce costs by SEK 1 Bn gross annually from 1 January 2025.
• New Board members elected at the 2023 AGM.
• Decided to start conducting life cycle assessments (LCAs) for all completed projects in 2024.

Climate Goals & Targets

Environmental Challenges

• Challenging market conditions due to high inflation, high interest rates, and geopolitical uncertainty.
• Low business volumes.
• Increased uncertainty in the market.

Mitigation Strategies

• Strengthened cash flow through divestments of operations in Norway and St. Petersburg.
• Implemented cost-saving measures reducing costs by SEK 1 Bn gross annually from 1 January 2025.
• Launched a long-term financing package.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Framework for selection and review of suppliers, based on UN Global Compact and Bonava’s Code of Conduct.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI Universal Standards 2021, UN Global Compact

Certifications: Nordic Swan ecolabel, BREEAM In-Use Excellent

Third-party Assurance: PwC

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Energy-efficient housing units with fossil-free heating systems, solar panels.

Awards & Recognition

• Developer of the Year 2023 (Baltics)
• First place in Real Estate Brand Value Study 2023 (Germany)