Review of 2012 – EUR - Skanska

term balance between financial results, social responsibility and soundenvironmental management.Skanska supports the UN Global Compact. An annual report, Communicationon Progress, is published on the Global Compact websiteand indicates Skanska’s performance. For 2012, Skanska was categorizedas “Active” for its ongoing commitments to abide by the ten principlescomprised by human rights, positive working conditions, environmentalconservation and anticorruption. Skanska also supports the GlobalCompact Caring for Climate (C4C) initiative and participates in theGlobal Compact’s Nordic network – a group of more than 170 companiesthat exchange experiences related to the ten principles. In 2012,Skanska proactively contributed to the “Rio + 20” process and sharedthe chairmanship of the UNEP’s Sustainable Buildings and ClimateInitiative to remove potential barriers to achieving a greener supplychain for built environments.Business ethics are a crucial component of Skanska’s strategy, in itsaim of being an industry leader. In addition to Skanska AB’s EthicsCommittee, each business unit has programs on the Code of Conduct,ethics committees and communicates its plans and provides training.The Ethics Committees provide support to operations in terms ofguidance, inquiries and recommendations for alleged breaches of theCode of Conduct. Training is provided to all employees every otheryear and to new employees within three months of their employment.A Skanska-wide hot-line, which is staffed by a consultant companyspecialized in business ethics, offers a channel for the anonymousreporting of potentially serious breaches of the Code of Conduct.Providing a safe working environment for all employees and subcontractorscontinues to be of paramount importance to Skanska. In 2012,338 work-site accidents were reported, which resulted in more than oneday of absence from work. The compiled statistics on absences for 2012was 2.9 (3.9) per million hours worked – a reduction of 26 percent. OfSkanska’s entire operations, 90 percent of employees work under a certifiedOccupational Health and Safety management system pursuantto the international standard, OHSAS 18001.In 2012, all business units began using the Skanska Safety Road Mapto develop their strategic plans for activities focusing on leadership,culture and experiences. The aim is to become a construction-industryleader in occupational health and safety by 2015. The theme of SafetyWeek 2012 was to work together to achieve the highest level of occupationalhealth and safety in all work sites, with an emphasis on safeleadership on all levels. These activities were supported by a globallyshared workshop model.Despite our statistical reduction in accidents, two tragic work-relateddeaths occurred during the year, involving a subcontractor and a supplier.The accidents were investigated and experiences compiled anddistributed to all work sites in Skanska, through what is referred to as“Global Safety Stand Downs.” In connection with the safety stand-down,experiences from the accidents were discussed, comments were gatheredand respect accorded the deceased and his/her family. As a learningorganization, it is crucial for Skanska to understand and absorb theexperience on such events, to prevent them from happening again.Assuming responsibility for the environmental is a core value forSkanska. In 2012, more than 95 percent of Skanska’s operations wereencompassed by the international environmental management-systemstandard, ISO 14001. This enables a sound platform for using risk managementto monitor and act when changes are made to local, nationaland international laws and requirements at each business-unit level.Audits performed in 2012 by external ISO 14001 experts identifiedweaknesses in a particular unit’s procedures for the Environmentalmanagementsystem. The local management implemented correctivemeasures that were to the satisfaction of the auditors. Another businessunit was issued a major financial fine due to an administrative errorin a certain project. None of these errors resulted in any significantenvironmental impact.Work that is based on sound, environmentally managed conditionscreates the foundation for Skanska to meet increasing demands for“green” building and infrastructure projects. The demand is driven bythe increase in global population and urbanization, which places majorand increasing demands on the supply of energy, materials and water.Since about 40 percent of carbon emissions caused by humans originatesfrom the built environment, Skanska sees increasing businessopportunities arising from stricter rules, building codes, taxes andtrading in emission allowances, which may lead to increased demandin our markets.Skanska continues to be involved in policy work connected to climatechange through the World Business Council for Sustainable Developmentand the EU Corporate Leaders Group on Climate Change(EUCLG). The same is true for collaboration with the EuropeanNetwork of Construction Companies for Research and Development(ENCORD). Skanska contributed as an author and publisher of aglobal calculation and reporting method for carbon emissions in theindustry, which has come to be recognized by key international stakeholders.Skanska’s overall commitment to climate issues was acknowledgedagain in 2012, when for the third consecutive year, the CarbonDisclosure Project (CDP) ranked Skanska at the top among companiesin the Nordic region.In 2012, Skanska continued to develop its green business model.There is a healthy demand for green projects with third-party environmentalcertification such as LEED, EU Green Building, BREEAM andCEEQUAL. A number of milestones were achieved during the year,such as the first international CEEQUAL project ever (Sweden), LEEDPlatinum projects in the Czech Republic and Poland, the highest possiblepoints for BREEAM certification (U.K.) and the first office project toachieve “deep green” certification (Sweden). Skanska is now one ofthe largest suppliers of green projects in its selected home markets andhas one of the strongest teams of experts in green development withinthe company.To improve and grasp the business objectives of green projects,Skanska continued to play an active role in interest organizations suchas Green Building Councils (GBCs) in the Czech Republic, Finland,Hungary, Norway, Poland, Romania, Slovakia, Sweden, the U.K. andthe U.S. Skanska had representatives in the Boards of several of theseorganizations and Skanska held chairmanship of the USA GBC in2012. Skanska provided support to the World GBC for a global studyon the business goals of green construction, which will be published inearly 2013. Skanska continues to be a key sponsor of the European GBCnetwork.With more than 10,000 projects per year delivered to customers,Skanska has a major imprint on local communities. Commitment tothe community is vital to Skanska’s commitment to its stakeholdersand a component of the Group’s corporate responsibility. In 2012,Skanska’s Senior Executive Team approved its new policy on the commitmentto the community titled, Corporate Community Involvement.The policy will now be in line with various activities that have alreadybeen implemented, but which lacked a strong global focus. The policyencourages a major commitment to the community through educationin the areas of occupational health and safety, green construction andtechnical expertise.Human resourcesThe average number of employees during 2012 was 56,618 (52,557), ofwhom 10,814 (10,500) in Sweden. Employee turnover was at a low level94 Skanska Financials Skanska Review of 2012 – EUR version