SKANSKA

SUSTAINABILITY OVERVIEW
Transport Research Laboratory Networking Event
Monday, 10th January 2011




    Mark Anderson

    Senior Commercial Manager – Skanska



1
Skanska    −   Founded 1887 in Sweden
           −   International business since 1897
in brief   −   Listed on the Stockholm Stock Exchange
           −   2009 revenues: £ 12 billion
           −   53,000 employees
           −   Member of UN Global Compact




2
Local presence – global strength
                    Sweden
                    Norway
                    Denmark
                    Finland
                    Estonia
                    Poland
                    Czech Republic
                    Slovakia
                    Hungary
                    United Kingdom
United States
Latin America




3
Business
         streams



Construction   Residential   Commercial    Infrastructure
               Development   Development   Development
        4
Code of Conduct

− General principles
  including human rights
− Employee relations
  including health and safety
− Business ethics
− Environment
− A condition of working with us




5
6
7
Zero          Zero          Zero        Zero       Zero
loss-making   environmental accidents   ethical    defects
projects      incidents                 breaches
        8
Skanska is determined to
                        be the leading green project
                        developer and contractor




     Johan Karlström,
    President and CEO
       Skanska AB

                            VISIBLE
                          LEADERSHIP
9
Built environments are
responsible for around
40% of all energy use
and man made CO2
emissions.

As a construction
company we have the
ability, knowledge,
experience and skills to
make a difference in
leading change.

   10
Approach to Sustainability
                -   Sustainability Agenda
                -   Code of Conduct, Five Zeros
                -   Green Business Model
                -   Environment Strategy, Green Car
                    Policy, Colour Palette
                -   Progress reported in Sustainability
                    section of Skanska AB Annual Report




11
Skanska Sustainability Agenda
       Skanska Sustainability Agenda

                                           Corporate
                   Human       Health &                Business
Social Agenda      Resources   Safety
                                           Community
                                                       Ethics
                                           Involvement




Economic           Project     Supply      Value
Agenda             selection   chain       added




Environmental
                   Energy &                Eco-        Local
Agenda             Climate
                               Materials
                                           systems     impacts




      12
Environment Strategy




13
Skanska’s Deep GreenTM Model

Vanilla – projects that merely comply with national practices, codes and
standards

Green – projects that surpass compliance but not so much that what we
construct and how we construct it can be regarded as near-zero impact

Deep Green - projects defined by zero values for a set of metrics
related to the top priority issues: energy, carbon, materials and water




14
- Civil / Infra

                                                       Energy baseline established            25 % reduction against        > 50 % reduction against



                         local codes, standards and
                                                        > 10 % reduction against             baseline consumption.          baseline consumption and                  Net Positive Energy
        1)                                               baseline consumption.                                                  renewables used.




                             regulations in place
                                                                                                                                                                  ’Zero’ Carbon Construction
                                                       Preliminary project carbon          Over 25 % reduction of             Over 50 % reduction of
                                                        footprint (3) established.        baseline carbon content in          baseline carbon content
                                                        Carbon footprint used to           materials, logistics and          in materials, logistics and
                                                                                                                                                                      Zero Unsustainable
       2)                                              perform value engineering.                construction.                     construction.
                                                                                                                                                                         Materials 4)



                                                         Use design and planning           Use design and planning           Use design and planning
                                                      reviews to maximize the reuse         reviews to maximize the           reviews to maximize the            Zero Hazardous Materials 5)
                                                        of materials and to arrive at      reuse of materials and to         reuse of materials and to
                                                              less then 10%                  arrive at less then 5%           arrive at less then 2,5%
                                                             Waste to landfill.                 waste to landfill.                waste to landfill.
                                                                                                                                                                           Zero Waste


                                                      Preliminary baseline for use of    Measures to reduce                    Measures to reduce
                                                           drinking water at site      consumption of drinking               consumption of drinking                Zero Drinking Water for
                                                         established. Sustainable     water with more than 25%              water with more than 50%                     Construction
      6)                                                drainage system in place.             are taken.                            are taken.



                                                                                                                                                              Trademark of Skanska AB (publ)
1)   Only applicable for civil/infra projects that construct energy consuming products. Energy refers to energy consumption of the product during its operation. Where possible energy
     consumption shall be evaluated as primary energy.
2)   Carbon refers to the carbon emitted during manufacturing of the main construction materials, production of site electricity and as a result of construction activities including logistics.
3)   Preliminary carbon footprint is defined as an estimate at the bid stage using generic and/or historical carbon data.
4)   Sustainable materials are materials that can be reused or recycled.
5)   Hazardous materials are defined as per local law and the applicable Skanska AB Global and BU specific Restricted Substances Lists.
6)   In this revision water refers to use of water during the construction process only, the use of ´life cycle consumption´ will be considered for use in future revisions

                 15
                                                                                                                                                                            CC draft 100423
NLGA Deep Green Workshop June 2010




16
Meadowlands, New York - RFID Tags




Better planning leading to ~ US$1 million saving in costs
  17
Empire State Building, New York




Green retrofit of Empire State Building – pay back period
                    approx. 5 years
  18
Totoral Wind Farm, Los Vilos, Chile




Renewable energy - 50 MW wind farm – new opportunities
   19
Lindhagensterrassen, Stockholm, Sweden




35 m2 solar array – 11 vehicle charging points + lighting
  20
Skanska UK
                                                    Mike Putnam
                                                    Business Unit President



 Roger Bayliss             Philip Carré           Bill Hocking          Paul Chandler           Harvey Francis          Mark Galloway
 EVP                       EVP                    EVP                   EVP                     EVP                     EVP




     Enabling Functions            Operating Units


     Communications                Civil Engineering                                    Construction Private, including Communities
     Environment                   Greg Craig                                           Paul Heather
     Finance
     Health & Safety               Piling, Foundations & Ground Engineering             Construction Public, including Scotland
     HR (including Pensions)       Martin Pedley                                        Martin Nunns
     ITSD
     Legal
                                    Utilities                                           Education
     Procurement
                                    Ian Edwards                                         Dave Shadwell
     Preconstruction
     Skanska Technology
                                   Infrastructure Services                              Facilities Services
                                   Deirdre Murphy                                       Martin Neeson

                                                                                        Mechanical & Electrical, Steel Decking, Ceilings
                                                                                        Robin Wood



21
Skanska UK

Results:            2009
                    £m
Revenue:            1,541.8
Operating income:   38.9
Operating margin:   2.5%

Order bookings:     1,695.1
Order backlog:      2,149.7




22
Skanska UK
                        The Green Agenda

                        “Through our performance on site
                        and processes, we are already
                        being recognised by our staff and
                        customers as a company who
                        cares about sustainability –
                        playing our part in Skanska’s goal
                        to become the leading green
                        constructor.”



     Mike Putnam, CEO
        Skanska UK




23
Skanska UK Sustainability model
                                   Environmental and Socio
                                   economic
                                   Profitable Markets
                                   Customers
                                   Influences

                                   Communities
                                   Our People
                                   Supply chain
                                   Communities we work in

                                   Environmental
                                   Climate Change
                                   Waste
                                   Water
                                   Materials
                                   ecology

                http://www.skanska.co.uk/en/About-Skanska/Sustainability/

24
Sustainability Documents




25
Sustainable procurement

The value for money sourcing of products and
services taking into account environmental,
social and ethical aspects over the whole
product or service lifecycle




26
Sustainable Procurement
− Guidance to buyers, specifiers and supply
  chain
− Communicate to all stakeholders how we
  procure
− Define sustainable procurement
− Six core elements: Health & Safety,
  ethical sourcing, equality / diversity /
  inclusion, Green sourcing, Best Value and
  Quality
− Confirm we will only do business with
  responsible suppliers
− Expect supply chain to amend their
  business practices where required

27
Materials – Resource Efficiency

Target -
Less than
10% waste to
landfill by
end 2010




28
Materials - Intelligent Selection
− Minimising use of
  hazardous materials
− Reduce future risks
− Reduce hazardous wastes




   29
Ecosystems
− Chain of Custody
− Timber, Quarry products
− Ethical sourcing




30
Local Impacts
     − Management Plans
     − Construction guidelines
     − Mitigation
     − Monitor and Report
                                 2008 Incident Reporting Summary

16



14



12



10



 8



 6



 4



 2



 0
     Contam land   Oil   Waste    Fly tipping   Water    Housekeeping   Access   Other   Dust




       31
Learning and Development




32
Green Toolbox – Introductory page




Green Education –
Training Package




      33
The Green Toolbox




                      Journey to Deep Green
Sustainability Case
Studies & Green
Solutions



     34
35
Examples of Green Solutions
36
Cambridge STW, UK
CO2 measurement and reduction




     Leading on carbon calculation for Anglian Water
37
Green Construction Initiatives




38
ModernaHus
Coldharbour Lane                                                       100% energy                        Green roof
                                                                                                             SUDS system
Brixton                                                              efficient lighting

    CSH level 4
    (beyond requirements)                                                                          Recycled content


Air tight construction                                                                              10% renewable
 Air permeability <4m3/hm2@50Pa                                                                        energy
  U-values – Walls 0.2, Roof 0.15,
  Windows 0.85, Ground floor 0.17



                                                                                                   Water efficiency
                                                                                                     (105 litre/person/day)
   Off site
 construction
Wall panels, floors, pods etc

                                                                                                     44% energy
                                                                                                    improvement
                                                                                                    (over building regulations)

                                               BIM                      Large communal
Cycle Storage                        Intelligent clash free multi-
    For every dwelling                 discipline construction
                                                                          green space
                                                                            Including allotments
               39
Green BIM




40
BIM




Examples of 3D interactive modelling developed for previous utility type works

       41
Minimising Waste: Vacuum Excavation on NLGA




    42
Minimising Waste / Environmental Impact: NLGA




PE Pipe Recycling   Aerosol Degassing   HDD 315mm MP PE




        43
NLGA Sustainability Case Study: reduction in waste
major theme.




      44
Carbon Management

           Reduction in Carbon emissions associated
           Travel to work by Intelligent routing

           Work orders delivered to PDA in real time

           Efficient Execution of works – completed works
           Delivered in real time

           Overall Net saving in CO2 transport related
           Emissions




45
46
External Working Groups - UK

− UKCG, UKGBC, CIOB & NJUG Sustainability Groups
− Various WRAP groups
− CEEQUAL working groups
− ICE Environment & Sustainability Panel
− CIRIA Biodiversity Group
− Considerate Constructors Scheme
− London Leaders



47
External Working Groups - Globally

− WBCSD
− UN Global Compact
− UN Environment Programme, "Sustainable Building
  and Construction Initiative“
− EU Corporate Leaders Group on Climate Change
  (EU CLG)




48
Awards
−    Sunday Times Best Green Companies Award - 2010 2nd overall, Best
     Corporate Environmental Strategy Award, Best Company with a High
     Environmental Impact Award, 2009 4th, 2008 5th
−    RoSPA International Dilmun Environmental Award – 2009 Highly Commended,
     2008 Commended, 2007 won
−    Mayor of London Green Procurement Scheme –Gold Level 2010 and 2nd Best
     Large Corporation Award, Silver Level 2009
−    UK Sustainable City Awards 2009 - Sustainable Procurement award
−    Building Magazine – Sustainable Contractor of the Year 2007 & 2006, Green
     Subcontractor of the year Award 2007, Foundation/Groundwork Specialist of the
     Year 2007 – 4th year running, Energy Piles™
−    Quality in Construction 2009 - Sustainability Award
−    Quality in Construction 2008 - Corporate Social Responsibility Award, Technical
     Innovation Award – Energy Piles™
−    Considerate Constructors Scheme National Awards – 2008: 2 gold, 4 silver, 8
     Bronze, 2009: 2 gold, 6 silver, 9 Bronze, 2010: 3 gold, 2 silver, 2 Bronze
−    BREEAM - Excellent rating – 8, Very Good – 11, Good - 7



49
Where Next

− Carbon foot printing /CRC
− Commercialising Green
− LCA
− SEESA hub & cluster
− CEMARS Certification
− Skanska Procurement Policy document




50
ENVIRONMENT WEEK
        7TH – 11TH JUNE 2010

     Major Themes for this year

     Our Journey to Deep Green

               Travel

           Supply Chain




51
End

−Thank You For Listening
− If you require further information on Skanska please
  feel free to contact me
     mark.anderson@skanska.co.uk




52

Skanska Profile

  • 1.
    SKANSKA SUSTAINABILITY OVERVIEW Transport ResearchLaboratory Networking Event Monday, 10th January 2011 Mark Anderson Senior Commercial Manager – Skanska 1
  • 2.
    Skanska − Founded 1887 in Sweden − International business since 1897 in brief − Listed on the Stockholm Stock Exchange − 2009 revenues: £ 12 billion − 53,000 employees − Member of UN Global Compact 2
  • 3.
    Local presence –global strength Sweden Norway Denmark Finland Estonia Poland Czech Republic Slovakia Hungary United Kingdom United States Latin America 3
  • 4.
    Business streams Construction Residential Commercial Infrastructure Development Development Development 4
  • 5.
    Code of Conduct −General principles including human rights − Employee relations including health and safety − Business ethics − Environment − A condition of working with us 5
  • 6.
  • 7.
  • 8.
    Zero Zero Zero Zero Zero loss-making environmental accidents ethical defects projects incidents breaches 8
  • 9.
    Skanska is determinedto be the leading green project developer and contractor Johan Karlström, President and CEO Skanska AB VISIBLE LEADERSHIP 9
  • 10.
    Built environments are responsiblefor around 40% of all energy use and man made CO2 emissions. As a construction company we have the ability, knowledge, experience and skills to make a difference in leading change. 10
  • 11.
    Approach to Sustainability - Sustainability Agenda - Code of Conduct, Five Zeros - Green Business Model - Environment Strategy, Green Car Policy, Colour Palette - Progress reported in Sustainability section of Skanska AB Annual Report 11
  • 12.
    Skanska Sustainability Agenda Skanska Sustainability Agenda Corporate Human Health & Business Social Agenda Resources Safety Community Ethics Involvement Economic Project Supply Value Agenda selection chain added Environmental Energy & Eco- Local Agenda Climate Materials systems impacts 12
  • 13.
  • 14.
    Skanska’s Deep GreenTMModel Vanilla – projects that merely comply with national practices, codes and standards Green – projects that surpass compliance but not so much that what we construct and how we construct it can be regarded as near-zero impact Deep Green - projects defined by zero values for a set of metrics related to the top priority issues: energy, carbon, materials and water 14
  • 15.
    - Civil /Infra Energy baseline established 25 % reduction against > 50 % reduction against local codes, standards and > 10 % reduction against baseline consumption. baseline consumption and Net Positive Energy 1) baseline consumption. renewables used. regulations in place ’Zero’ Carbon Construction Preliminary project carbon Over 25 % reduction of Over 50 % reduction of footprint (3) established. baseline carbon content in baseline carbon content Carbon footprint used to materials, logistics and in materials, logistics and Zero Unsustainable 2) perform value engineering. construction. construction. Materials 4) Use design and planning Use design and planning Use design and planning reviews to maximize the reuse reviews to maximize the reviews to maximize the Zero Hazardous Materials 5) of materials and to arrive at reuse of materials and to reuse of materials and to less then 10% arrive at less then 5% arrive at less then 2,5% Waste to landfill. waste to landfill. waste to landfill. Zero Waste Preliminary baseline for use of Measures to reduce Measures to reduce drinking water at site consumption of drinking consumption of drinking Zero Drinking Water for established. Sustainable water with more than 25% water with more than 50% Construction 6) drainage system in place. are taken. are taken. Trademark of Skanska AB (publ) 1) Only applicable for civil/infra projects that construct energy consuming products. Energy refers to energy consumption of the product during its operation. Where possible energy consumption shall be evaluated as primary energy. 2) Carbon refers to the carbon emitted during manufacturing of the main construction materials, production of site electricity and as a result of construction activities including logistics. 3) Preliminary carbon footprint is defined as an estimate at the bid stage using generic and/or historical carbon data. 4) Sustainable materials are materials that can be reused or recycled. 5) Hazardous materials are defined as per local law and the applicable Skanska AB Global and BU specific Restricted Substances Lists. 6) In this revision water refers to use of water during the construction process only, the use of ´life cycle consumption´ will be considered for use in future revisions 15 CC draft 100423
  • 16.
    NLGA Deep GreenWorkshop June 2010 16
  • 17.
    Meadowlands, New York- RFID Tags Better planning leading to ~ US$1 million saving in costs 17
  • 18.
    Empire State Building,New York Green retrofit of Empire State Building – pay back period approx. 5 years 18
  • 19.
    Totoral Wind Farm,Los Vilos, Chile Renewable energy - 50 MW wind farm – new opportunities 19
  • 20.
    Lindhagensterrassen, Stockholm, Sweden 35m2 solar array – 11 vehicle charging points + lighting 20
  • 21.
    Skanska UK Mike Putnam Business Unit President Roger Bayliss Philip Carré Bill Hocking Paul Chandler Harvey Francis Mark Galloway EVP EVP EVP EVP EVP EVP Enabling Functions Operating Units Communications Civil Engineering Construction Private, including Communities Environment Greg Craig Paul Heather Finance Health & Safety Piling, Foundations & Ground Engineering Construction Public, including Scotland HR (including Pensions) Martin Pedley Martin Nunns ITSD Legal Utilities Education Procurement Ian Edwards Dave Shadwell Preconstruction Skanska Technology Infrastructure Services Facilities Services Deirdre Murphy Martin Neeson Mechanical & Electrical, Steel Decking, Ceilings Robin Wood 21
  • 22.
    Skanska UK Results: 2009 £m Revenue: 1,541.8 Operating income: 38.9 Operating margin: 2.5% Order bookings: 1,695.1 Order backlog: 2,149.7 22
  • 23.
    Skanska UK The Green Agenda “Through our performance on site and processes, we are already being recognised by our staff and customers as a company who cares about sustainability – playing our part in Skanska’s goal to become the leading green constructor.” Mike Putnam, CEO Skanska UK 23
  • 24.
    Skanska UK Sustainabilitymodel Environmental and Socio economic Profitable Markets Customers Influences Communities Our People Supply chain Communities we work in Environmental Climate Change Waste Water Materials ecology http://www.skanska.co.uk/en/About-Skanska/Sustainability/ 24
  • 25.
  • 26.
    Sustainable procurement The valuefor money sourcing of products and services taking into account environmental, social and ethical aspects over the whole product or service lifecycle 26
  • 27.
    Sustainable Procurement − Guidanceto buyers, specifiers and supply chain − Communicate to all stakeholders how we procure − Define sustainable procurement − Six core elements: Health & Safety, ethical sourcing, equality / diversity / inclusion, Green sourcing, Best Value and Quality − Confirm we will only do business with responsible suppliers − Expect supply chain to amend their business practices where required 27
  • 28.
    Materials – ResourceEfficiency Target - Less than 10% waste to landfill by end 2010 28
  • 29.
    Materials - IntelligentSelection − Minimising use of hazardous materials − Reduce future risks − Reduce hazardous wastes 29
  • 30.
    Ecosystems − Chain ofCustody − Timber, Quarry products − Ethical sourcing 30
  • 31.
    Local Impacts − Management Plans − Construction guidelines − Mitigation − Monitor and Report 2008 Incident Reporting Summary 16 14 12 10 8 6 4 2 0 Contam land Oil Waste Fly tipping Water Housekeeping Access Other Dust 31
  • 32.
  • 33.
    Green Toolbox –Introductory page Green Education – Training Package 33
  • 34.
    The Green Toolbox Journey to Deep Green Sustainability Case Studies & Green Solutions 34
  • 35.
  • 36.
    Examples of GreenSolutions 36
  • 37.
    Cambridge STW, UK CO2measurement and reduction Leading on carbon calculation for Anglian Water 37
  • 38.
  • 39.
    ModernaHus Coldharbour Lane 100% energy Green roof SUDS system Brixton efficient lighting CSH level 4 (beyond requirements) Recycled content Air tight construction 10% renewable Air permeability <4m3/hm2@50Pa energy U-values – Walls 0.2, Roof 0.15, Windows 0.85, Ground floor 0.17 Water efficiency (105 litre/person/day) Off site construction Wall panels, floors, pods etc 44% energy improvement (over building regulations) BIM Large communal Cycle Storage Intelligent clash free multi- For every dwelling discipline construction green space Including allotments 39
  • 40.
  • 41.
    BIM Examples of 3Dinteractive modelling developed for previous utility type works 41
  • 42.
    Minimising Waste: VacuumExcavation on NLGA 42
  • 43.
    Minimising Waste /Environmental Impact: NLGA PE Pipe Recycling Aerosol Degassing HDD 315mm MP PE 43
  • 44.
    NLGA Sustainability CaseStudy: reduction in waste major theme. 44
  • 45.
    Carbon Management Reduction in Carbon emissions associated Travel to work by Intelligent routing Work orders delivered to PDA in real time Efficient Execution of works – completed works Delivered in real time Overall Net saving in CO2 transport related Emissions 45
  • 46.
  • 47.
    External Working Groups- UK − UKCG, UKGBC, CIOB & NJUG Sustainability Groups − Various WRAP groups − CEEQUAL working groups − ICE Environment & Sustainability Panel − CIRIA Biodiversity Group − Considerate Constructors Scheme − London Leaders 47
  • 48.
    External Working Groups- Globally − WBCSD − UN Global Compact − UN Environment Programme, "Sustainable Building and Construction Initiative“ − EU Corporate Leaders Group on Climate Change (EU CLG) 48
  • 49.
    Awards − Sunday Times Best Green Companies Award - 2010 2nd overall, Best Corporate Environmental Strategy Award, Best Company with a High Environmental Impact Award, 2009 4th, 2008 5th − RoSPA International Dilmun Environmental Award – 2009 Highly Commended, 2008 Commended, 2007 won − Mayor of London Green Procurement Scheme –Gold Level 2010 and 2nd Best Large Corporation Award, Silver Level 2009 − UK Sustainable City Awards 2009 - Sustainable Procurement award − Building Magazine – Sustainable Contractor of the Year 2007 & 2006, Green Subcontractor of the year Award 2007, Foundation/Groundwork Specialist of the Year 2007 – 4th year running, Energy Piles™ − Quality in Construction 2009 - Sustainability Award − Quality in Construction 2008 - Corporate Social Responsibility Award, Technical Innovation Award – Energy Piles™ − Considerate Constructors Scheme National Awards – 2008: 2 gold, 4 silver, 8 Bronze, 2009: 2 gold, 6 silver, 9 Bronze, 2010: 3 gold, 2 silver, 2 Bronze − BREEAM - Excellent rating – 8, Very Good – 11, Good - 7 49
  • 50.
    Where Next − Carbonfoot printing /CRC − Commercialising Green − LCA − SEESA hub & cluster − CEMARS Certification − Skanska Procurement Policy document 50
  • 51.
    ENVIRONMENT WEEK 7TH – 11TH JUNE 2010 Major Themes for this year Our Journey to Deep Green Travel Supply Chain 51
  • 52.
    End −Thank You ForListening − If you require further information on Skanska please feel free to contact me mark.anderson@skanska.co.uk 52