Annual and Sustainability Report 2021

We build for a better society

For 135 years we have been shaping societies around the world. And as the world continues to evolve, so do we – firmly rooted in our purpose and core values. We know that what is good for people, society and our environment is good for business, too.

Moving forward, our exceptional teams, leading knowledge and foresight and outstanding performance will provide the backbone for us to advance in creating a stronger relationship with customers, informed by a full understanding of their challenges and needs – championing a culture of improvement across the organization to deliver smarter solutions, and capitalizing and scaling innovations.

We will expand our offering within sustainability by refining our position as a responsible business, partnering to innovate on climate solutions and ultimately helping customers build sustainable buildings and infrastructure. Longer term, we see an opportunity to combine climate and social impact to design and build healthy, resilient places for all.

These are the fundamental building blocks for shaping a built environment that is more sustainable, creating long-term value for shareholders and society at large.

2021 in brief

19.80

SEK, Earnings per share

3.8%

Operating margin, solid performance across markets

11.8%

ROCE in Project Development

-46%

Reduction of our own carbon emissions since 2015

84%

Certified commercial buildings, share of total divestments

Share of total value, corresponding to SEK 6.1 billion, of divested offices in the Commercial Property Development business stream certified by WELL, LEED (Platinum or Gold) or BREEAM (Excellent).

-30%

Energy reduction in new office buildings

Annual expected energy reduction in divested office buildings developed by Commercial Development Nordics, Europe and USA, in relation to the LEED certification system’s established baseline

Message from our
President and CEO

Our new strategic direction gives us the building blocks to continue creating healthy, sustainable places that will deliver value well beyond our lifetime.

Anders Danielsson, President and CEO

Strategy & targets

With our purpose and values, integrated business model, excellent people and trusted brand, we have a solid foundation to continue providing industry-leading total shareholder return.

Skanska’s targets reflect the ambition to remain industry-leading – operationally, financially and within sustainability.

Strategy

Targets

Business Streams

Our operations are focused in the business streams: Construction, Residential Development and Commercial Property Development. Each stream collaborates and shares resources with the others. To further capture commercial property value and durable cash flow and to enhance our competitiveness and customer offering, we will implement a new business stream in 2022: Investment Properties.

Sustainability

We see a future with healthier, more resilient places for all. Where sustainability is simply built into living. A future that we all shape together.

Realizing our vision will take determination and bold thinking. Within the challenges lie great opportunities, and we will continue to work with customers and partners to capture them. Together, we can create new possibilities — designing climate-smart solutions that open fresh avenues of prosperity and drive business success.

At the heart of our vision a strong goal unites us: To achieve net-zero carbon emissions by 2045. Our foundation as a responsible business gives us the strength we need to accomplish this and our license to operate as a trusted partner.

But it will also require innovation, foresight and knowledge. It will take true collaboration – all of our strategic industry alliances, our customers and our committed people – to co-create the healthy, prosperous places we envision. When we work together our business has the people, know-how and relationships to shape sustainable places to support healthy living well beyond our lifetime.