Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Management Systems
• Environmental Training
• Hazardous Substance Handling
• Resource Efficiency
• Waste Reduction
• Energy Conservation
• Indoor Climate
• Stakeholder Engagement

Environmental Achievements

• Increased number of employees receiving environmental training from 12,400 to 17,400 (33% to 44% of all employees)
• Increased number of environmentally certified/registered units from 14 to 23 (9% to 9% of employees in certified operations)
• Development and implementation of environmental management systems in various units, aiming for ISO 14001 or EMAS certification by 2000
• Development of purchasing guidelines for hazardous substances
• Implementation of energy-saving measures in various projects (e.g., Vision House)
• Waste reduction and recycling initiatives in construction projects
• Phasing out of CFCs and HCFCs in cooling systems

Social Achievements

• Improved stakeholder dialogue through interviews and engagement with environmental organizations
• Evaluation of completed infrastructure projects in developing countries
• Development of allergy-adaptation packages for residential construction
• Focus on creating a 'clean construction' image for building projects

Governance Achievements

• Establishment of an Environmental Managers’ Forum
• Development of an environmental management system integrating project and financial controls, working environment, quality, and the environment
• Adoption of a new Environmental Policy in early 1998
• Implementation of internal environmental audits

Climate Goals & Targets

Environmental Challenges

• Extensive work remaining to implement environmental management systems across all units
• Shortcomings in organizational structure and lines of authority
• Need for supplementary training programs
• Less developed environmental efforts in units outside Sweden
• Need for improved collaboration and follow-up
• Halland Ridge tunnel accident highlighting the importance of preventive environmental efforts and expanded dialogue with stakeholders

Mitigation Strategies

• Development and implementation of environmental management systems
• Supplementary training programs for various employee categories
• Improved collaboration and communication through forums and internal networks
• Development of purchasing guidelines for hazardous substances
• Implementation of complete environmental management system for the Halland Ridge project
• Increased in-house monitoring of chemical substances from suppliers
• Detailed risk assessment in conjunction with purchasing

Supply Chain Management

Responsible Procurement

• Evaluation of quality, cost, and environmental aspects of central agreements with suppliers
• Development of environmental product declarations for common building products
• Environmental standards for purchasing construction equipment (EU Classification Directive Stage I or equivalent)

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: ISO 14001, EMAS

Certifications: ISO 14001

Sustainable Products & Innovation

• Elit Super window with improved insulation capacity
• Allergy-adaptation packages for residential construction

Environmental Metrics

ESG Focus Areas

• Environment
• Employees
• Sustainability

Environmental Achievements

• 51 percent of Group employees worked in units that had introduced ISO-certified environmental management systems. The goal of having ISO-certified systems in place at all units of the Skanska Group by the end of 2000 will therefore be achieved ahead of schedule.
• In 1999, Skanska worked with 165 major construction projects, each exceeding USD 1 M, in which the client specified environmental standards that went beyond legal and regulatory requirements. The same is true of 361 major construction projects in which Skanska initiated greater environmental adaptation.
• Projected emissions of the greenhouse gas carbon dioxide from heating and air conditioning during the service life of the Electrolux headquarters building will be 50 percent lower than with a traditional solution.

Social Achievements

• The Skanska Management Institute runs large-scale programs to ensure management development at various levels. During 1999, about 200 younger managers participated in our internal training programs
• Skanska endeavors, through its recruitment work and other activities such as mentorship programs for women, to create a better balance between men and women in the Group. Of Skanska’s employees in 1999, 11 percent were women.
• Skanska conducted its trainee program for undergraduate engineering students, Skanska 21, for the third consecutive year and started a new program.

Governance Achievements

• The Board of Directors held five regular meetings plus one extra meeting.
• The Board also had to take a position on a number of major projects, among them BOT projects in Great Britain.
• Skanska’s Board of Directors has decided to allot a total of 294,000 stock options to ten individuals in the Group Management of Skanska.

Climate Goals & Targets

Environmental Challenges

• Shortages of skilled labor may create some obstacles to its growth ambitions.
• In the residential market, a greater differentiation in housing demand is apparent.
• As for infrastructure projects financed by central and local governments, the public sector has decided to cut back its investments.

Mitigation Strategies

• Skanska is aiming at higher value-added in its projects in order to achieve higher margins.
• Skanska Sweden is endeavoring to meet the needs for different types of housing products that the market is demanding.
• The National Road Administration and National Rail Administration are thus expected to offer only a limited range of new construction projects over the next few years, aside from certain projects in the largest metropolitan regions.

Supply Chain Management

Supplier Audits: Skanska Sweden has also evaluated the environmental activities of 100 of its 120 most important suppliers.

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Environmental Management
• Energy Efficiency
• Climate Change
• Material Selection
• Waste Management
• Chemical Management
• Social Responsibility

Environmental Achievements

• All operations ISO 14001 certified by the end of 2000.
• Reduced energy consumption in Skanska-owned properties in Sweden.
• Reduced carbon dioxide emissions in Skanska Real Estate Stockholm properties.
• 90% of construction waste from Swedish sites underwent at-source separation.
• Developed a Groupwide chemical database.

Social Achievements

• Initiated a discussion on measures to increase energy efficiency of existing buildings within the European Union.
• Actively participated in the work of the World Commission on Dams.
• Declared support for the principles in the WCD’s final report.
• Broadening perspectives on social responsibility.

Governance Achievements

• CEO reports regularly to the Board of Directors on environmental strategy and results.
• Implemented an adjustment of its organizational structure to increase focus on clients and client relationships.

Climate Goals & Targets

Environmental Challenges

• Risk of climate change and its impact from the use of fossil fuels.
• Need to reduce energy consumption of buildings.
• Complex and long-term nature of environmental issues.
• Risk of mistakes in an organization with 15,000 ongoing construction projects.
• Contaminated soil in construction projects.

Mitigation Strategies

• Continued development of energy-efficient solutions.
• Implementation of ISO 14001 certified environmental management systems.
• Development of tools for facilitating environmental work.
• Internal and external environmental audits.
• Active dialogue with clients on environmental adaptation.
• Environmental training programs for employees and subcontractors.
• Groupwide rules on chemicals.
• Analysis of whole energy systems including the production of electricity, heating and cooling.

Supply Chain Management

Supplier Audits: More than 300 suppliers in 2000.

Responsible Procurement

• Environmental evaluations of major suppliers.
• Environmental requirements when procuring services from subcontractors.

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient solutions.

Reporting Standards

Frameworks Used: ISO 14001

Environmental Metrics

ESG Focus Areas

• Environment
• Social Responsibility
• Governance

Environmental Achievements

• All operations ISO 14001 certified by end of 2000.
• 774 large construction projects implemented with higher environmental standards than legally required (46% of total order bookings).
• Significant energy efficiency improvements in renovations (20-30%) and new construction (nearly 50%) in Sweden.
• Reduction in the share of all residue sent to landfills as waste in Sweden.

Social Achievements

• Honduras bridge project exemplified application of the UN Global Compact.
• Construction of environmentally labeled housing in Stockholm (70%+ FSC-labeled wood).
• 20,400 subcontractor employees received environmental information training in the US.

Governance Achievements

• Implementation of a Code of Conduct addressing human rights, employee relations, business ethics, and environmental issues.
• Inclusion in the Dow Jones Sustainability Indexes for the third consecutive year, as the industry leader.

Climate Goals & Targets

Environmental Challenges

• Climate change due to greenhouse gas emissions.
• Need for greater proactive environmental efforts from competitors.
• Handling of chemicals.
• Ensuring environmental compliance by subcontractors.

Mitigation Strategies

• Active work in EU and US to increase commitment to energy efficiency.
• Development of a common database for restricted chemicals (acrylamide, asbestos, CFCs, halon, PCBs).
• Environmental evaluations of prioritized suppliers (463 in 2001, 36% increase from previous year).
• Environmental training programs for employees and subcontractors.

Supply Chain Management

Supplier Audits: 463 in 2001

Responsible Procurement

• Environmental evaluations of suppliers.
• ISO 14001 certification requirement for some suppliers.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: ISO 14001

Awards & Recognition

• Dow Jones Sustainability Indexes inclusion

Environmental Metrics

ESG Focus Areas

• Safety
• Business Ethics
• Corporate Governance
• Environment
• Social Responsibility

Environmental Achievements

• 97% of Skanska's net sales covered by certified environmental management systems.
• Skanska India became ISO 14001 certified.
• More than 20 LEED projects completed or in progress in the US.
• Energy savings of over 30% achieved in new construction in Sweden.
• Energy efficiency improvements of 20-30% achieved when renovating existing office buildings in Sweden.

Social Achievements

• Achieved extraordinarily low accident rate on Delhi Metro project (267 man-days lost due to accidents out of over 24 million work hours).
• Implementation of a Code of Conduct with a Compliance Guideline, training, and monitoring.
• Two female members joined the Skanska Board, increasing female representation to 22%.
• Participation in diversity projects (PlusCompetence in Sweden).

Governance Achievements

• Continued implementation of the Skanska Code of Conduct.
• Development of a compliance guideline and training sessions at all levels.
• Participation in an international task force to develop business principles for countering bribery and corruption.
• Strengthened and diversified the Board with two female members.

Climate Goals & Targets

Environmental Challenges

• Moisture-induced damage to buildings.
• Alleged participation in asphalt cartels in three Nordic countries (under investigation).
• Construction sector's traditionally high accident rates.

Mitigation Strategies

• Development of a Moisture Plan to address moisture issues systematically.
• Implementation of a Code of Conduct and compliance guideline to address business ethics concerns.
• Sharpened safety strategy, streamlined data collection and reporting, and stepped up employee training to reduce accidents.

Supply Chain Management

Supplier Audits: Environmental evaluations carried out on prioritized suppliers in Europe.

Responsible Procurement

• Code of Conduct communicated to over 7,300 suppliers and subcontractors.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI 2002 Sustainability Reporting Guidelines

Certifications: ISO 14001, OHSAS 18001 (some business units), ISO 9000 (some business units)

Awards & Recognition

• Fortune 500: Most admired company in engineering and construction.
• Ranked third on the all categories list of most admired companies in Europe.
• Financial Times: Ranked second in property/construction sector.
• ENR Sourcebook: Ranked first on Top 225 International Contractors, third on Top 225 Global Contractors, and fifth on Top 400 Contractors.

Environmental Metrics

ESG Focus Areas

• Safety
• Environmental Performance
• Business Ethics
• Social Responsibility
• Stakeholder Relations

Environmental Achievements

• 99% of Skanska net sales covered by certified environmental management systems (ISO 14001).
• 323 large construction projects implemented with higher environmental standards than legally required.
• Met Office Relocation project in Exeter, UK achieved an “excellent” BREEAM rating, including energy savings of ~10,500 MWh/year and a 53% reduction in greenhouse gas emissions through TermoDeck ventilation.

Social Achievements

• 15% reduction in accidents compared to 2003.
• Skanska Safety Day (October 20) entirely free of accidents resulting in lost working days.
• High marks from the national Discrimination Ombudsman in Sweden for diversity policies and practices.
• Adoption of principles for countering bribery and corruption with a group of international companies.
• Karlstad Central Hospital renovation project resulted in a 50% reduction in emergency maintenance calls and a 10-year warranty against mold and moisture damage.

Governance Achievements

• Launched revised and strengthened safety strategy.
• Implementation of better risk assessment tools.
• Joined initiative with 18 other international engineering and construction firms to fight corruption.
• Continued support for the United Nations Global Compact, including the adoption of a tenth principle on corruption and bribery.

Climate Goals & Targets

Environmental Challenges

• Average safety performance for the industry in 2003.
• Moisture-induced damage to buildings in certain regions.
• Environmental incident at Hallandsåsen, Sweden (past incident).
• Concerns about large dam construction in developing countries (past incident).
• Oil spill in Sweden (2004).
• Local legislation issue in Latin America (2004).
• Alleged offense of neglecting minimum river flow in Brazil (2004).

Mitigation Strategies

• Revised safety strategy aimed at zero lost-time accidents.
• Implementation of state-of-the-art procedures, protective equipment, inspection, and reporting.
• Best practice group to track moisture-induced damage and implement risk evaluations.
• Development and implementation of phase-out programs for hazardous substances.
• Establishment of a central purchasing unit to better manage Code of Conduct issues.
• Internal and external audits to assess compliance and continual improvements.
• Legal procedures underway to address the alleged offense in Brazil.

Supply Chain Management

Responsible Procurement

• Integration of Code of Conduct into practices of central purchasing and project support units.

Climate-Related Risks & Opportunities

Opportunities

• Energy efficiency in buildings.

Reporting Standards

Frameworks Used: Global Reporting Initiative (GRI)

Certifications: ISO 14001, OHSAS 18001 (53% of employees covered)

Awards & Recognition

• Listed on Dow Jones Sustainability Indexes and FTSE4Good.
• Storebrand's “best-in-class” ranking.
• Skanska Environment, Health & Safety Awards.

Environmental Metrics

ESG Focus Areas

• Green Construction
• Safety
• Business Ethics
• Sustainable Development

Environmental Achievements

• Named the world’s leading company in Green Construction by Construction Digital
• Skanska UK named the U.K.’s leading green major corporation by the Sunday Times
• Skanska USA Building received the US Green Building Council’s Leadership Award
• Reduced carbon dioxide emissions by approximately 1.68 million metric tons at New Meadowlands Stadium
• New Meadowlands Stadium uses around 30 percent less energy than its predecessor and reduced water usage by 25 percent
• Gårda office building in Gothenburg designed to meet EU GreenBuilding standards (at least 25 percent lower energy use than prescribed norms)
• Green Refurbishment of Skanska’s U.S. office in the Empire State Building reduced energy needs by 57 percent
• Grunwaldzki Center in Wrocław, Poland, consumes 30 percent less energy than Polish building norms
• Blå Jungfrun apartments in Stockholm consume less than half the energy of comparable building types

Social Achievements

• Halved the rate of serious work-site accidents in five years
• Launched Skanska Employee Ownership Program (SEOP), with 19% of Group employees participating
• Initiated efforts to increase workforce diversity
• Improved employee satisfaction scores
• Three training programs aimed at young offenders undertaken by Skanska UK

Governance Achievements

• Established a Corporate Ethics Committee and mandated that every Skanska home market have its own ethics committee
• Established an Ethics Expert Group
• Improved risk management processes

Climate Goals & Targets

Environmental Challenges

• Safety incidents (nine work-related fatalities)
• Economic uncertainty impacting sustainability initiatives
• Variations in market conditions between countries and regions
• Supply chain disruptions
• Intense competition and reduced tender margins
• Public sector austerity programs reducing demand for public sector projects
• Shortages of human resources
• Risks associated with price of goods and services in construction projects

Mitigation Strategies

• Continuous improvement in risk management and project execution
• Global safety strategy with five key areas
• Development of eight new Global Safety Standards
• Global Safety Leadership Team
• Executive Site Safety Visits (ESSV)
• Seconded safety specialists to Poland and the Czech Republic
• Engagement with competitors and government regulators to improve safety
• Global Safety Stand Downs (GSSDs)
• Focus on energy efficiency, water use, and waste management
• Employee cutbacks in some local markets (in response to economic downturn)
• Increased customer focus
• Greater industrialization of construction processes
• Standardized components and coordinated purchasing
• Use of Building Information Modeling (BIM)

Supply Chain Management

Responsible Procurement

• Sustainable procurement practices
• Pre-qualification of suppliers and subcontractors
• Encouraging suppliers to consider green solutions

Climate-Related Risks & Opportunities

Opportunities

• Green Construction
• Energy efficiency
• Carbon reduction

Reporting Standards

Frameworks Used: GRI, UN Global Compact

Certifications: ISO 14001

Sustainable Products & Innovation

• Energy Piles™, Energy Wall™
• ModernaHus concept
• Green Refurbishment solutions

Awards & Recognition

• World’s leading company in Green Construction (Construction Digital)
• U.K.’s leading green major corporation (Sunday Times)
• US Green Building Council’s Leadership Award (Skanska USA Building)
• Supplier Diversity category in the Mayor of London’s Responsible Procurement Awards (Skanska UK)
• Premio Apolo Award ENDESA (Skanska Latin America)
• Via Bona awards (Skanska Slovakia)
• Green Business of the Year award (Cortez Area Chamber of Commerce)

Environmental Metrics

ESG Focus Areas

• Energy Efficiency
• Carbon Emissions Reduction
• Sustainable Materials
• Water Conservation
• Occupational Health and Safety
• Ethical Business Practices
• Community Engagement

Environmental Achievements

• Half of the passive houses built in Sweden in 2011 were built by Skanska.
• Skanska UK ranked highest among construction companies in the UK government’s Carbon Reduction Commitment Energy Efficiency Scheme.
• Telemark Rehabilitation Center designed for 50% reduction in CO2 emissions.
• 98% of construction waste recycled in the Bertschi School project.
• 100% recycling of waste in the Surrey Street Lighting Project.
• Lustgården office building in Stockholm designed for low energy consumption and self-sufficient space cooling.
• Powerhouse One project in Norway aims to be energy-positive.

Social Achievements

• Skanska Safety Road Map introduced to improve workplace safety.
• “Safe road to school” campaign in Poland reached 20,000 students.
• Construction Management Building Blocks program in the US trained 175 business owners and employees.
• 75 scholarships awarded in Argentina through collaboration with Cimientos Foundation.
• Skanska's internal ethical guidelines made publicly available.

Governance Achievements

• Skanska's Code of Conduct revised in 2008 and made publicly available in 2011.
• Skanska contributed to the World Economic Forum’s Partnering Against Corruption Initiative (PACI) and Transparency International.
• Skanska supports the Construction Sector Transparency Initiative (CoST).

Climate Goals & Targets

Environmental Challenges

• Government budget deficits and turbulence in the euro zone affected business activity.
• Slowdown in residential sales in Sweden and Finland.
• Procedural weaknesses identified in the Environmental Management Systems of two Business units (addressed with corrective actions).

Mitigation Strategies

• Restructuring measures in Finnish and Norwegian construction units.
• Cut back on new housing starts in response to slower demand.
• Aggressive focus on new, green office space.
• Corrective actions taken to address procedural weaknesses in Environmental Management Systems.

Supply Chain Management

Responsible Procurement

• BS 8903 sustainable construction framework (Skanska UK)
• CIPS certification for sustainable sourcing (Skanska UK)

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products and services
• Expansion into renewable energy sector (e.g., Sjisjka wind farm)

Reporting Standards

Frameworks Used: UNGC

Certifications: ISO 14001, LEED, BREEAM, CEMARS, BS EN 16001

Sustainable Products & Innovation

• Passive housing solutions
• Energy-positive buildings
• Green office buildings (e.g., Lustgården)
• Low-carbon concrete

Awards & Recognition

• Five Swedish Transport Administration safety awards
• CIPS award for “best contribution to corporate responsibility” (Skanska UK)
• London’s Sunday Times named Skanska UK the Best Green Company in the United Kingdom

Environmental Metrics

ESG Focus Areas

• Health and Safety
• Ethics
• Green
• Community Investment
• Diversity and Inclusion

Environmental Achievements

• Reduced carbon emissions by 28% since 2015
• 90% of total value (SEK 15.4 billion) of divested offices certified with WELL, LEED (Platinum or Gold), or BREEAM (Excellent)
• Annual energy reduction of 37% in divested office buildings compared to average

Social Achievements

• Launched paid parental leave program for US employees
• 80% of employees recommend Skanska as a good place to work
• 83% of employees feel free to express concerns without fear of negative consequences

Governance Achievements

• Implemented updated Group governance framework
• No deviations from the Swedish Corporate Governance Code

Climate Goals & Targets

Environmental Challenges

• Three fatalities occurred on Skanska project sites in 2019
• Challenges in attracting and retaining employees with needed competencies
• High construction costs and long zoning processes in several markets
• Increased competition in several markets
• Ethical risks in the construction and development sector

Mitigation Strategies

• Increased focus on Health and Safety, including the Injury-Free Environment program
• Improved project reporting and review procedures
• Strategic risk/reward bidding
• Employee development and career planning
• Competitive compensation packages
• Comprehensive Code of Conduct and anti-corruption policy
• Risk-based due diligence vetting, monitoring, and auditing of contractual counterparties

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct
• Risk-based due diligence

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather conditions

Transition Risks

• New climate regulations

Opportunities

• Development of low-carbon solutions

Reporting Standards

Frameworks Used: GRI Standards Core

Certifications: ISO 14001, ISO 45001

Third-party Assurance: Ernst & Young AB (limited assurance on carbon reporting)

UN Sustainable Development Goals

• Goal 5
• Goal 8
• Goal 9
• Goal 11
• Goal 12
• Goal 13
• Goal 16

Skanska's initiatives contribute to these goals through its focus on health and safety, ethics, green initiatives, community investment, and diversity and inclusion.

Sustainable Products & Innovation

• Green Concrete
• Rebetong

Awards & Recognition

• Top-ranking in Sustainability Companies 2019 at Nasdaq Nordic
• #20 on Fortune’s Change the World List 2019

Environmental Metrics

ESG Focus Areas

• Climate
• Resilience
• Responsibility

Environmental Achievements

• Reduced carbon emissions by 46% since 2015 in own operations (scope 1 and 2)
• 84% of total value of divested offices in 2021 were certified by WELL, LEED (Platinum or Gold), or BREEAM (Excellent)
• Energy reduction in new office buildings -30% annually compared to LEED baseline

Social Achievements

• Launched Construction Management Building Blocks Training Program (CMBB) to promote women- and minority-owned businesses in the USA
• BoKlok completed and delivered nearly 800 homes in 2021

Governance Achievements

• No deviations from the Swedish Corporate Governance Code (the “Code”) to report for the financial year 2021
• Skanska has been a signatory of the United Nations Global Compact since 2001

Climate Goals & Targets

Environmental Challenges

• Covid-19 disruptions, especially in Europe and the USA, and decisions by customers to postpone ramp-up of new projects
• Price increases for certain materials and bottlenecks in the supply chain
• Uncertainty following the pandemic impacting market activity

Mitigation Strategies

• Selective bidding approach, strong commercial management and home-market strategy
• Switching from high emission fuels to hydrotreated vegetable oil (HVO) across all UK projects
• Actively managing landbank and closely cooperating with Construction stream to align production

Supply Chain Management

Supplier Audits: Annual audits of top 250 partners in the UK, risk-based assessments and due diligence for certain categories of suppliers

Responsible Procurement

• Supplier Code of Conduct included in all agreements
• Sustainable procurement practices

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather conditions

Transition Risks

• New climate regulations, demands from investors and customers

Opportunities

• Increased demand for climate-smart solutions

Reporting Standards

Frameworks Used: GRI Standards Core

Certifications: ISO 14001, ISO 45001

Third-party Assurance: Ernst & Young AB

UN Sustainable Development Goals

• Not disclosed

We actively support the United Nations Sustainable Development Goals (SDGs) and their subtargets. We have identified seven relevant SDGs, and our performance within these areas is referenced in the GRI Content and SASB Index on pages 200–203.

Sustainable Products & Innovation

• Low-carbon concrete
• BioZero near-zero carbon asphalt
• Electric excavators

Awards & Recognition

• Science Based Targets initiative (SBTi) approval
• Dagens Industri, Aktuell Hållbarhet and Lunds universitet award

Environmental Metrics

ESG Focus Areas

• Climate
• Resilience
• Responsibility

Environmental Achievements

• Reduced carbon emissions from own operations (scope 1 and 2) by 55% since 2015
• 100% LEED Platinum or Gold, BREEAM Excellent or WELL-certified buildings of total commercial development office divestments in 2022
• Reduced energy in new office buildings by 39% compared to LEED baseline
• 15% of concrete produced by Skanska Betong in 2022 was low-carbon concrete (compared with 5% in 2021). 41% of the produced low-carbon concrete was used within Skanska in Sweden (compared to 17% in 2021).

Social Achievements

• 25% women in senior positions (four most senior levels below the President and CEO)
• 96% Code of Conduct training completion rate during the first month of employment
• 86% of employees felt free to express concerns without fear of negative consequences (compared with the industry benchmark of 65%)
• 7,921 Executive Safety Site Visits performed by senior managers

Governance Achievements

• No deviations from the Swedish Corporate Governance Code
• Climate targets included in the long-term incentive program for top 400 leaders
• BBB Score for MSCI rating
• A- Score for CDP Climate rating

Climate Goals & Targets

Environmental Challenges

• Weaker housing markets
• Stress in the supply chain system (material and energy shortages, cost escalations, interest rate hikes)
• Ongoing energy crisis
• Increased scrutiny from stakeholders
• Extreme weather events
• Higher average outdoor temperatures
• Increased frequency and intensity of extreme weather events
• Changing customer expectations
• Changing competitor landscape
• Increased competition
• Increased inflation
• Ethical breaches, corruption and bribery
• Human rights violations
• Political risk
• Violation of sanctions

Mitigation Strategies

• Strategic shift towards selective bidding and commercial management in Construction
• Strong financial position to seize opportunities
• Climate target and climate plan ACT for net-zero emissions by 2045
• Fostering a diverse and inclusive culture
• Established process for performance and talent management
• Strategic procurement and early commitment of key subcontractors
• Supplier Code of Conduct
• Risk-based diligence vetting, monitoring and auditing of contractual counterparties
• Energy efficiency focus in operations and products
• Climate-based scenario analysis
• Procedures in place for managing extreme weather events
• Procedures to ensure safe working conditions in high heat
• Active dialogues with regulators and other stakeholders
• High ambitions and externally validated Science-based targets
• High standards in reporting and marketing materials
• Code of Conduct, Anti-Corruption Policy, Supplier Code of Conduct
• Regular Code of Conduct training
• Targeted anti-corruption and competition law training
• Code of Conduct Hotline reporting system
• Risk-based assessment and due diligence for suppliers
• Sanction screening
• Internal governance rules and processes for monitoring compliance

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct
• Risk-based diligence vetting, monitoring and auditing

Climate-Related Risks & Opportunities

Physical Risks

• Increased frequency and intensity of extreme weather events
• High average outdoor temperatures
• Alterations in sea levels, weather patterns and ecosystems

Transition Risks

• Enhanced reporting and public disclosure requirements
• Mandates on energy performance
• Cost of carbon
• New technologies and innovations
• Changing customer expectations
• Changing competitor landscape
• Increased scrutiny from stakeholders

Opportunities

• Increased demand for sustainable buildings and infrastructure
• Leadership position in green and low-carbon transition
• New markets and opportunities
• New technologies and innovations

Reporting Standards

Frameworks Used: GRI Standards

Certifications: ISO 14001, ISO 45001

Third-party Assurance: Skanska's external auditors performed a limited assurance report on Skanska AB's greenhouse gases, health and safety, energy and waste reporting.

UN Sustainable Development Goals

• Goal 5
• Goal 8
• Goal 9
• Goal 11
• Goal 12
• Goal 13
• Goal 16

Skanska actively supports the UN Sustainable Development Goals (SDGs). The report references performance related to these goals.

Sustainable Products & Innovation

• Low-carbon concrete
• Powerhouse concept
• Building-integrated solar cell facades

Environmental Metrics

ESG Focus Areas

• Responsibility
• Climate
• Resilience

Environmental Achievements

• 60 percent reduction of carbon emissions from our own operations (scope 1 and 2) compared to our base year of 2015.
• Share of total divestment value, corresponding to SEK 3.5 billion, of divested offices in the Commercial Property Development business stream, certified with LEED Platinum or Gold, or BREEAM Excellent, or WELL. Includes properties divested to Skanska Investment Properties.
• Reduced carbon emissions in our own operations, scope 1 and 2, by 60 percent compared to base year 2015, and 11 percent compared to 2022.
• 93 percent of the electricity we consume comes from renewable sources; this portion has increased from 87 percent in 2022.
• 5.4 (6.8) percent of generated waste went to landfill, which is an improvement from last year but not meeting our target of less than 5 percent.
• 79 (72) percent of total waste was recycled

Social Achievements

• Group Lost Time Accident Rate for 2023 decreased to 2.6 (2.9) and that we did not have any fatalities on our project sites.
• 86 percent of employees think we do a good job of monitoring and improving safety in the workplace, which is above the industry norm, of 83 percent.
• Market changes during 2023 led to an overall drop in voluntary turnover levels.
• 25 percent of women in senior positions, the four most senior levels below the President and CEO.
• Three out of eight of the Board members elected by the Annual General Meeting 2023 are women.

Governance Achievements

• 98% Completion rate, Code of Conduct training during first month of employment.
• 99% Completion rate, Code of Conduct refresher training on a two-year rolling basis.
• In 2023, a total of 128 reports were received via the Code of Conduct Hotline; 69 of these reports related to workplace concerns including bullying, discrimination, health and safety, and individual employment issues. Breaches were found in a total of 22 cases. Ten reports were specifically classified as anti-corruption.
• nearly 500 supplier audits annually

Climate Goals & Targets

Environmental Challenges

• Performance in our property businesses (Residential Development, Commercial Property Development and Investment Properties) was significantly impacted by lower sales volumes, asset impairment charges and changes in fair market values due to weaker property markets.
• weak property markets resulted in a return on equity outcome in 2023, below our long-term target.
• weaker property market in 2023, there was a decrease in emissions from the categories materials and other.
• Activity in the Nordic housing market has been low in 2023.
• The real estate investor market has been hesitant.
• Tenant demand remains polarized in the Swedish office market.

Mitigation Strategies

• We maintain our financial strength.
• We will stay selective and focus on picking projects that suit our experience and competence, prioritizing strong delivery so that we can exceed our customers’ expectations.
• We continue to focus on sales and leasing activities to ensure that we have an attractive offering to the market once activity increases.
• Sales activities target completed homes or homes near completion as buyer interest is focused on homes that are ready to move into, allowing them to buy and sell in the same market.
• We are being selective about new project starts.
• Our Climate Transition Plan and climate target of achieving net-zero carbon emissions by 2045 guides our work on reducing the climate impact of our operations.

Supply Chain Management

Supplier Audits: nearly 500

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Increased frequency and intensity of extreme weather events
• High average outdoor temperatures
• Alterations in sea levels, weather patterns and ecosystems

Transition Risks

• Enhanced reporting and public disclosure requirements
• Mandates on energy performance
• Cost of carbon
• New technologies and innovations needed to meet climate targets
• Changing customer expectations
• Changing competitor landscape
• Increased scrutiny from stakeholders

Opportunities

• Demand for sustainable buildings and infrastructure is expected to increase
• Opportunities in advancing our digital transformation
• Demand for climate resilient infrastructure and buildings

Reporting Standards

Frameworks Used: GRI Standards

Certifications: ISO 14001, ISO 45001

Third-party Assurance: Ernst & Young AB

UN Sustainable Development Goals

• Goal 5
• Goal 8
• Goal 9
• Goal 11
• Goal 12
• Goal 13
• Goal 16

We actively support the United Nations Sustainable Development Goals (SDGs).

Sustainable Products & Innovation

• low-carbon concrete
• recycled asphalt
• mass timber

Awards & Recognition

• Climate Leader in Europe
• CDP A-list
• one of the World's Best Employers