The environmentIn <strong>Skanska</strong>’s judgment, construction projects will increasingly embodyenvironmental standards that go beyond legal and regulatory requirements.These standards may, for instance, include environmental managementsystems, selection of materials, energy solutions and wastemanagement. <strong>Skanska</strong> has the resources and expertise to speed up thisdevelopment.● 16 <strong>Skanska</strong> <strong>Annual</strong> <strong>Report</strong> <strong>1999</strong>Higher environmental standardsThe growing importance of environmentalissues is clearly apparent in many markets,among them the Nordic countries and theUnited States. By pursuing successful environmentalwork, <strong>Skanska</strong> can strengthen itsmarket position as clients increase their environmentaldemands on potential contractors.Proactive environmental work has a favorableimpact on <strong>Skanska</strong>’s sales and profits, both asa consequence of lower costs and opportunitiesto obtain more assignments.An analysis of <strong>Skanska</strong>’s large <strong>1999</strong> projectsreveals that environmental ambitionsoften exceed legal and regulatory requirements.This trend will become more pronouncedin the next few years, while nationallegal and regulatory requirements willbecome stricter.During <strong>1999</strong>, <strong>Skanska</strong> worked with 165projects larger than USD 1 M in which theclient specified environmental standardsthat went beyond legal and regulatory requirements.The same is true of 361 constructionprojects larger than USD 1 M inwhich <strong>Skanska</strong> initiated environmentaladaptation.Environmental standards specified byclients to potential contractors are often relatedto one or more of the following areas:• certified environmental managementsystems• environmentally trained employees onprojects• waste minimization and recycling programs• systematic assessment of materials and suppliersfrom an environmental standpoint• energy-efficient solutions, including transportservices• documentation of environmental workupon the completion of projects<strong>Skanska</strong> is working actively in all these fields.The environment –a management issue<strong>Skanska</strong> has devoted extensive resources to integratingenvironmental issues into its operationalmanagement. At the end of <strong>1999</strong>, 51percent of Group employees worked in unitsthat had introduced ISO-certified environmentalmanagement systems. The goal ofhaving ISO-certified systems in place at allunits of the <strong>Skanska</strong> Group by the end of2000 will therefore be achieved ahead ofschedule. During <strong>1999</strong>, <strong>Skanska</strong> invested morethan SEK 100 M in the introduction of environmentalmanagement systems.As various units of the Group introduceenvironmental management systems, this createsa structured system of communicationwith suppliers and subcontractors, in whichthey are informed of <strong>Skanska</strong>’s environmentalpolicy and the thrust of its environmental activities.During <strong>1999</strong>, altogether more than7,000 suppliers have been contacted in thisway by various units at <strong>Skanska</strong>. The <strong>Skanska</strong>Sweden business area has also evaluated theenvironmental activities of 100 of its 120 mostimportant suppliers.Environmental adaptation ofprojectsBy means of its collective competence and experiencein the environmental field, <strong>Skanska</strong>shall be an obvious and credible discussionpartner and source of inspiration for itsclients. <strong>Skanska</strong> shall be in a position to helpclients see new opportunities for effective environmentaladaptations of projects. This requiresan early, close dialogue.This dialogue is developed most effectivelyin projects for corporate clients, forexample Pharmacia & Upjohn in the UnitedStates and Scandic Hotel in Finland. In Swedenand other EU countries, public procurementregulations are often very strict. Thiscan make it harder to land recurring assignmentsaimed at identifying long-term environmentallyeffective, cost-effective solutions.<strong>Skanska</strong> is participating in a projectaimed at increasing opportunities for settingclearer environmental standards in publicprocurement within the EU.One example of effective collaborationwith a corporate client was the retrofittingof an existing building to serve as the newheadquarters of the Electrolux appliancegroup in Stockholm, with environmental issuesplaying a major role. For example, extensiveefforts went into minimizing energyconsumption for both heating and air conditioning.This required adaptations both inthe building and by outside energy utilities.The result was that projected emissions ofthe greenhouse gas carbon dioxide fromheating and air conditioning during the servicelife of the building will be 50 percentlower than with a traditional solution.This experience can be utilized in similarprojects over the next few years. <strong>Skanska</strong> isnow developing a project database containinginformation on projects with special environmentalrequirements or interesting environmentalsolutions. Summaries of theseprojects are available on <strong>Skanska</strong>’s web site(www.skanska.com). Its purpose is to morerapidly disseminate information about projectswith an environmental dimension toclients and other stakeholders.Proactive environmental workhas a favorable impact on<strong>Skanska</strong>’s sales and profits,both as a consequence oflower costs and opportunitiesto obtain more assignments.Risk assessmentsDuring <strong>1999</strong>, the Group’s risk assessment systemsunderwent further refinements. Environmentalaspects were assigned a moreprominent role in this work. This means that<strong>Skanska</strong> will abstain from participating inconstruction projects that it believes will resultin serious risks to the environment or tosociety at large.<strong>Skanska</strong> continuously purchases land andproperties for the development of constructionprojects. Depending on the circumstances,this process includes assessment ofrisks related to soil contamination. When acquiringcompanies, <strong>Skanska</strong> also assesses significantenvironmental risks.The costs of cleaning up contaminated soilare difficult to estimate without thorough, detailedstudies of each property. The scope ofthe clean-up also depends on the future use ofthe property and the decisions of public agenciesin each individual case.
Some environmentalfacts:Construction projects withhigh environmental standardsDuring <strong>1999</strong>, <strong>Skanska</strong> worked with 165major construction projects, each exceedingUSD 1 M, in which the client specifiedenvironmental standards that went beyondlegal and regulatory requirements.The same is true of 361 major constructionprojects in which <strong>Skanska</strong> initiatedgreater environmental adaptation.Environmental managementsystems throughout theGroup<strong>Skanska</strong> is introducing environmentalmanagement systems throughout theGroup. Units representing 51 percent ofemployees now have certified environmentalmanagement systems. These unitsaccount for 62 percent of <strong>Skanska</strong> Groupsales.Environmental trainingIn addition to basic training, <strong>Skanska</strong> hascarried out numerous specialist trainingprograms in the environmental field.There have been 1,789 participants in suchspecialist programs, and a total of 389 peoplehave undergone environmental audittraining.Environmental costsEnvironmental costs in the form of environmentallyrelated taxes and fees are relativelysmall at <strong>Skanska</strong>. They occur primarily inSweden and include carbon dioxide tax, feesfor unseparated waste, regulatory fees andprovisions for the restoration of land beingused as gravel pits and quarries.Further informationThe Group’s web site contains further informationon <strong>Skanska</strong>’s environmental work. Italso contains a database that presents projectswith an environmental dimension. It also providesopportunities to participate in an opendialogue on the Group’s environmental work.The <strong>1999</strong> Environmental <strong>Report</strong> containsa more detailed description of both thedirection and outcome of <strong>Skanska</strong>’s environmentalwork during <strong>1999</strong>. Order the Environmental<strong>Report</strong> via the web site(www.skanska.com).● 17 <strong>Skanska</strong> <strong>Annual</strong> <strong>Report</strong> <strong>1999</strong>
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