Peab : Appendix with sustainability data and GRI Index 2023

Appendix with sustainability data and GRI Index

2023

About the Sustainability Report

Peab's Sustain­abil­i­ty­ Report­ 2023 is inte­grat­ed­ into the Annu­al­ Report­ and com­‐ plement­ed­ by this GRI appen­dix­. The Sustain­abil­i­ty­ Report­ follows­ the finan­cial­ year and compris­es­ the peri­od­ Janu­ary­ 1 to Decem­ber­ 31. This is Peab's thir­‐ teenth Sustain­abil­i­ty­ Report­ and it is prepared­ with refer­ence­ to the GRI Stan­‐ dards 2021.

The Sustain­abil­i­ty­ Report­ is published­ annu­al­ly­ and this year's Sustain­abil­i­ty­ Re­‐ port was published­ on April 4, 2024.

The Sustain­abil­i­ty­ Report­ has not been reviewed­ by an exter­nal­ third party. How­‐

ever,­ in 2021 we engaged­ a third party to do a pre-as​ sur­ ance­ of our sustain­abil­i­ty­ processes­ and report­ing­ proce­dures­ with the inten­tion­ of having­ an inde­pen­dent­ exter­nal­ party conduct­­a limit­ed­ assur­ance­ of Peab's sustain­abil­i­ty­ report­ing­ when the EU Corpo­rate­ Sustain­abil­i­ty­ Report­ing­ Direc­tive­ (CSRD) is imple­ment­ed­ nation­al­ly­. In 2023 we have contin­ued­ with prepara­tions­ for the coming­ CSRD leg­‐ isla­tion­ with, among other things, a so-​called double­ mate­ri­al­i­ty­ analysis­ to up­‐ date our mate­r­i­al­ sustain­abil­i­ty­ aspects­.

The Sustain­abil­i­ty­ Report­ includes­ the statuto­ry­ sustain­abil­i­ty­ report­ accord­ing­ to the Annu­al­ Report­ Act chapter­ 6 paragraph­ 11.

Scope and changes in the report

The report­ compris­es­ the Group's oper­a­tions­ in Sweden,­ Norway,­ Finland­ and Denmark­ and all the compa­nies­ over which Peab has oper­a­tion­al­ control­. This means that the Sustain­abil­i­ty­ Report­ compris­es­ the same compa­nies­ as the An­‐ nual­ Report­. No mate­r­i­al­ changes in the orga­ni­za­tion­ or value chain have oc­‐ curred during­ the year.

While waiting­ for the outcome­ of the double­ mate­ri­al­i­ty­ analysis­ and that Peab will begin to report­ accord­ing­ to the coming­ CSRD legis­la­tion­ our mate­r­i­al­ sus­‐ tainabil­i­ty­ aspects­ remain­ the same. Peab's report­ing­ is based on four strategic­ target­ areas that comprise­ a total of nine targets­. Five of them relate­ to sustain­­‐ abili­ty­ and are includ­ed­ in Peab's mate­r­i­al­ sustain­abil­i­ty­ aspects­. In total Peab has identi­fied­ 8 (8) mate­r­i­al­ sustain­abil­i­ty­ aspects­ in our oper­a­tions­. Read more here.

Peab works contin­u­ous­ly­ to improve­ processes­ and data quali­ty­ for report­ing­. In cases where boundaries­ and/or account­ing­ princi­ples­ have changed in one of the specif­ic­ disclo­sures­ for one of the report­ed­ years, it will be noted in the text or table direct­ly­ connect­ed­ to the given infor­ma­tion­.

More infor­ma­tion­ about Peab can be found at www.peab.com.

For infor­ma­tion­ about Peab's sustain­abil­i­ty­ work please contact:­ Juha Hartomaa,­ IR, juha.hartomaa@peab­.se.

Peab's sustainability work

Peab works daily to improve­ everyday­ life for people­ where they live it in the Nordic region­. We do this by building­ everything­ from homes, schools, retire­ment­ homes and hospi­tals­ to bridges, roads and other in­‐ frastruc­ture­ in our commu­ni­ties­.

For Peab sustain­abil­i­ty­ entails­ running­ a business­ that takes respon­si­bil­i­ty­ for both its own impact­ and the impact­ of the entire­ value chain upstream­ and down­‐ stream, as well as working­ for the good commu­ni­ty­. Working­ sustain­ably­ is a strategic­ matter­ for us, complete­ly­ inte­grat­ed­ into our business­ model and oper­a­­‐ tions. We make it clear that every employ­ee­ should promote­ sustain­able­ devel­op­­‐ ment in their role based on Peab's core values,­ business­ concept,­ mission,­ strate­‐ gic targets­ and Code of Conduct­.

We oper­ate­ over a broad spectrum­ of commu­ni­ty­ building­ which natu­ral­ly­ has both posi­tive­ and nega­tive­ effects­ on the world around us. We provide­ our em­‐ ployees­ with secure­ employ­ment­ and meaning­ful­ careers­ with devel­op­ment­ op­‐ portu­ni­ties­ but at the same time the frequen­cy­ of injuries­ in the construc­tion­ and civil engi­neer­ing­ indus­try­ is high and our employ­ees­ are exposed­ to risks on con­‐ struction­ sites that can lead to acci­dents­. The indus­try­ is tradi­tion­al­ly­ male domi­­‐ nated,­ which entails­ a lack of gender­ equali­ty­ and diver­si­ty­. Further­more,­ there are risks for ethi­cal­ transgres­sions­ in the complex­ value chains common­ for the commu­ni­ty­ building­ sector­. Therefore­ we have a respon­si­bil­i­ty­ to ensure­ that our suppli­ers­ follow­ good ethics and care about the envi­ron­ment­ and human rights.

Our oper­a­tions­ impact­ the envi­ron­ment­ and climate­ in vari­ous­ ways. For exam­­‐ ple, mate­ri­als­ we use, like concrete­ and steel, gener­ate­ carbon­ emissions­ and other compo­nents­ are envi­ron­men­tal­ly­ and health hazardous­. We use the earth's finite­ resources­ and have to become­ better­ at working­ circu­lar­ly­ and resource­ ef­‐ ficient­ly­ as well as caring­ about the impact­ we have on nature­ and foster­ing­ bio­‐ diver­si­ty­. We put the same demands­ on our suppli­ers­ and their suppli­ers­ and have an ongo­ing­ dia­logue­ with our customers­ to help them achieve their envi­ron­­‐ mental­ and climate­ goals. Collab­o­ra­tion­ is a prereq­ui­site­ for posi­tive­ change and transi­tion­.

As a major local actor and Nordic employ­er­ it is impor­tant­ that through coop­er­a­­‐ tion and dia­logue­ we under­stand­ the needs and challenges­ soci­ety­ is facing,­ in partic­u­lar­ those in our local commu­ni­ties­. By compre­hend­ing­ this we can con­‐ tribute to local devel­op­ment­ while reduc­ing­ the nega­tive­ impact­ of our business­.

We want to take respon­si­bil­i­ty,­ either­ by contribut­ing­ to a more climate-​adapted­ use of mate­r­i­al,­ healthy compe­ti­tion­ or safe and inclu­sive­ workplaces­. As one of the largest Nordic commu­ni­ty­ builders we have decid­ed­ to be the Best workplace­

and Leader in social­ respon­si­bil­i­ty­ in our indus­try­. This is a commit­ment­ that comes with obliga­tions,­ which is why we have set up and moni­tor­ targets­ for these areas, along with the Group's finan­cial­ targets­.

Our mate­r­i­al­ sustain­abil­i­ty­ aspects­ are processed within­ the framework­ of our four strategic­ targets,­ and in partic­u­lar­ the two mentioned­ above: Best workplace­ and Leader in social­ respon­si­bil­i­ty­. The targets­ also comprise­ our exter­nal­ and in­‐ ternal­ targets­.

Locally produced community building

Our four business­ areas that collab­o­rate­ local­ly­ are the basis for how we work with our mate­r­i­al­ sustain­abil­i­ty­ aspects,­ which gives us good control­ over the process­ing­ chain. Our employ­ees­ should as far as possi­ble­ use local resources­ in the form of our own employ­ees,­ our own input goods and subcon­trac­tors­. This, togeth­er­ with our inte­grat­ed­ climate­ and envi­ron­men­tal­ work and engage­ment­ in people­ and the commu­ni­ty,­ forms the founda­tion­ of what we call local­ly­ pro­‐ duced commu­ni­ty­ building­.

Eight material sustainability aspects

Peab's mate­r­i­al­ sustain­abil­i­ty­ aspects­ form a unit in which the vari­ous­ parts affect­ each other. During­ the year in prepara­tion­ for the new business­ plan for 2024-​ 2026 and the EU Corpo­rate­ Sustain­abil­i­ty­ Report­ing­ Direc­tive­ (CSRD) we have worked to produce­ a double­ mate­ri­al­i­ty­ assess­ment­ to update­ Peab's mate­r­i­al­ sustain­abil­i­ty­ aspects­. We have ana­lyzed­ the vari­ous­ sustain­abil­i­ty­ aspects­ that make up the Euro­pean­ Sustain­abil­i­ty­ Report­ing­ Standards­ (ESRS) and the effect­ they have - or can have - as well as the actu­al­ or poten­tial­ finan­cial­ conse­­‐ quences. We have evalu­at­ed­ the sustain­abil­i­ty­ aspects­ from a risks and oppor­tu­­‐ nities­ perspec­tive,­ severi­ty­ level and proba­bil­i­ty­ as well as impact­ - short, medi­‐ um and long term. The mate­r­i­al­ sustain­abil­i­ty­ aspects­ emanate­ from both the areas where our business­ has a nega­tive­ effect­ on people­ and the envi­ron­ment­ and where our business­ makes or can make a posi­tive­ differ­ence­. In the analysis­ we have also consid­ered­ the actu­al­ or poten­tial­ impact­ on Peab's main value chains. Ongo­ing­ dia­logues­ with repre­sen­ta­tives­ from our stakehold­ers­ contribute­ as well to the double­ mate­ri­al­i­ty­ analysis­. These stakehold­er­ dia­logues­ are held with customers,­ suppli­ers,­ sharehold­ers/in­vestors,­ non-​govern­men­tal­ orga­ni­za­­‐ tions and employ­ees­ in vari­ous­ parts of our own orga­ni­za­tion­. The stakehold­er­ process has comprised­ meetings,­ inter­views­ and differ­ent­ kinds of issues­ com­‐ muni­cat­ed­ to Peab by our stakehold­ers­. Our assess­ment­ has also been based on studies,­ reports­ and rele­vant­ guidelines­. We have deter­mined­ threshold­ values­ based on all the contri­bu­tions­ we have compiled­ and consid­er­ sustain­abil­i­ty­ as­‐

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pects higher­ than these threshold­ values­ to be mate­r­i­al­. Until we will report­ ac­‐ cording­ to the CSRD law we will contin­ue­ to have eight mate­r­i­al­ sustain­abil­i­ty­ as­‐ pects which will be report­ed­ within­ the GRI framework­.

Our mate­r­i­al­ sustain­abil­i­ty­ aspects­ are cate­go­rized­ under the two strategic­ tar­‐ gets Best workplace­ and Leader in social­ respon­si­bil­i­ty­ and targets­ are set for them to ensure­ that they are inte­grat­ed­ into our oper­a­tions­ and gover­nance­.

Stakeholders guide us

Peab's mate­r­i­al­ sustain­abil­i­ty­ aspects­ and actions­ are based on the actu­al­ and poten­tial­ impact­ of our business­ on people­ and the envi­ron­ment­ by both our own oper­a­tions­ and throughout­ our value chains. We have ongo­ing­ stakehold­er­ dia­­‐

logues with repre­sen­ta­tives­ from our stake­holder­ groups. This keeps us aware of the expec­ta­tions­ and demands­ of our stakehold­er­ groups and what issues­ are most impor­tant­ to them. These dia­logues­ take place in both infor­mal­ meetings­ with customers,­ suppli­ers,­ employ­ees­ and other stakehold­ers­ and in more struc­‐ tured contexts­ such as suppli­er­ audits,­ meetings­ with politi­cians­ and other decision-mak​ ers,­ owner and investor­ dia­logues­ and semi­nars­ at colleges­. The ac­‐ cumu­lat­ed­ result­ from these dia­logues­ partly­ forms our mate­ri­al­i­ty­ analysis­ and sustain­abil­i­ty­ work prior­i­ties­. In the dia­logues­ - inde­pen­dent­ of which stakehold­­‐ er group - we inform­ about the progress being made in our oper­a­tions,­ provide­ good exam­ples­ and initia­tives­ but also point out the challenges­. In this way we can create­ and maintain­ construc­tive­ and transpar­ent­ conver­sa­tions­ and pro­‐ mote collab­o­ra­tion­ that leads to actu­al­ devel­op­ment­.

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Customer Satisfaction Index (CSI)

CSI stands for Customer­ Satis­fac­tion­ Index and measures­ how satis­fied­ Peab's cus‐­ tomers are.

TARGET: >75

OUTCOME 2023: 80

Operating margin

The target­ is measured­ accord­ing­ to seg­‐ ment report­ing­.

TARGET: >6%

OUTCOME 2023: 3.2%1)

Carbon dioxide intensity

Climate target for our own production

The target­ refers to lower emissions­ of greenhouse­ gases Scope 1+2 (ton CO2e/MSEK).

TARGET 2030: -60%

OUTCOME 2023: -49%

Serious accidents

The target­ is measured­ as zero fatal acci­­‐ dents and a contract­ing­ trend, rolling 12 months. Seri­ous­ acci­dents­ are defined­ ac­‐ cording­ to classi­fi­ca­tion­ 4.

TARGET: <49

OUTCOME 2023: 48

Net debt/equity ratio

Net debt in rela­tion­ to equi­ty­. The target­ is measured­ accord­ing­ to segment­ report­ing­.

TARGET: 0.3-0.7

OUTCOME 2023: 0.6

Carbon dioxide intensity

Climate target for input goods and purchased services

The target­ refers to lower emissions­ of greenhouse­ gases Scope 3 (ton CO2e/MSEK).

TARGET 2030: -50%

OUTCOME 2023: -9%

eNPS

eNPS stands for employ­ee­ Net Promot­er­ Score and measures­ employ­ee­ engage­ment­.

TARGET: >19

OUTCOME 2023: 26

Dividends

The target­ is to surpass­ 50 percent­ of profit­ for the year. Measured­ accord­ing­ to segment­ report­ing­.

TARGET: >50%

OUTCOME 2023: 30%2)

Equal opportunity

The target­ is measured­ as: percent­age­ of re­‐ cruited­ women in produc­tion­ among skilled workers­ (SW, produc­tion­ and process­ing)­

and white-collar​ workers­ (WCW, produc­tion­

manage­ment­ and produc­tion­ support)­ > percent­age­ of women who have gradu­at­ed­ with, for us, rele­vant­ degrees­ on the edu­ca­­‐ tion markets­.

TARGET: >5% (SW) >30.0% (WCW)

OUTCOME 2023: 14.2% (SW) 18.8% (WCW)

1. 2.5% exclu­sive­ the effect­ of Mall of Scandi­navia­ (MSEK 400). For more infor­ma­tion­ see Other infor­ma­tion­ and appro­pri­a­tion­ of profit­ page 89.
2. Based on the number­ of outstand­ing­ shares.

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Steering Peab's sustainability work

Peab steers sustain­abil­i­ty­ work through identi­fy­ing,­ assess­ing­ and man­‐ aging­ risks and oppor­tu­ni­ties,­ working­ system­at­i­cal­ly­ with contin­u­al­ improve­ments­ and identi­fied­ key activ­i­ties­ and projects, and measur­ing­ progress through targets­ for the Group and targets­ specif­ic­ for the busi­‐ ness areas and subsidiaries­ within­ our mate­r­i­al­ sustain­abil­i­ty­ aspects­.

In 2023 we intro­duced­ an overrid­ing­ Sustain­abil­i­ty­ Council­ to further­ supple­ment­ exist­ing­ gover­nance­ and promote­ target­ steering­. Among other things, the Sus­‐ tainabil­i­ty­ Council­ coor­di­nates­ sustain­abil­i­ty­ matters­ and ensures­ that Peab's ex­‐ ecu­tive­ manage­ment­ is informed­ regard­ing­ impor­tant­ conse­quences,­ risks and oppor­tu­ni­ties­ linked to sustain­abil­i­ty­ work. The Sustain­abil­i­ty­ Council­ is led by the CSO and COO. In addi­tion,­ we have gathered­ togeth­er­ work on climate­ transi­­‐ tion and the value chain in the business­ plan peri­od­ 2024 to 2026 into two Group-​ wide devel­op­ment­ programs­ to further­ empow­er­ these impor­tant­ sustain­abil­i­ty­ factors­. As far as possi­ble­ central­ regu­la­tions­ and manage­ment­ systems­ are steered on a local level, close to oper­a­tions­.

Peab's Board has given exec­u­tive­ manage­ment­ the overrid­ing­ respon­si­bil­i­ty­ for govern­ing­ and moni­tor­ing­ of sustain­able­ work in oper­a­tions­. Peab's four business­ area managers,­ who all report­ to the CEO, are respon­si­ble­ togeth­er­ with the COO, CSO and CCO for ensur­ing­ sustain­abil­i­ty­ work is an inte­grat­ed­ part of business­. They have sustain­abil­i­ty­ special­ists­ on Group level and in the business­ areas as well the Sustain­abil­i­ty­ Council­ to aid them. Exec­u­tive­ manage­ment­ moni­tors­ sus­‐ tainabil­i­ty­ work at every exec­u­tive­ manage­ment­ meeting,­ reviews­ special­ events with a bearing­ on these issues­ and delves into a sustain­abil­i­ty­ theme every meet­‐ ing. Gover­nance­ is based on the four strategic­ target­ areas with asso­ci­at­ed­ exter­­‐ nal and inter­nal­ targets­. Some of the targets­ are moni­tored­ quarter­ly­ by both the Board and exec­u­tive­ manage­ment,­ while others­ are moni­tored­ every half-year​ or annu­al­ly­. Moni­tor­ing­ targets­ and their outcome­ enables­ exec­u­tive­ manage­ment­ to steer oper­a­tions­ and imple­ment­ measures­ if neces­sary­.

Central regulations and management systems for governing

Central­ regu­la­tions­ and manage­ment­ systems­ for govern­ing­ in Peab comply­ with inter­na­tion­al­ conven­tions­ and nation­al­ laws. Peab's funda­men­tal,­ inter­nal­ gov­‐ erning­ docu­ment,­ the Peab's Code of Conduct,­ is based on the UN Global­ Com­‐ pact princi­ples­ includ­ing­ the precau­tion­ary­ princi­ple,­ UN's human rights and ILO's core conven­tions­. It is reviewed­ and updat­ed­ as needed­ annu­al­ly­. Peab signed Global­ Compact­ 2012 and the Annu­al­ and Sustain­abil­i­ty­ Report­ is the Group's Commu­ni­ca­tion­ on Progress, which is the annu­al­ report­ to Global­ Com­‐ pact. As decid­ed­ by Peab's Presi­dent­ and CEO, the compa­ny­ will contin­ue­ to fol­‐ low Global­ Compact­.

Peab follows­ UN's Guiding­ Princi­ples­ on Business­ and Human Rights (UNGP) and OECD's Guidelines­ for Multina­tion­al­ Enter­pris­es­. We follow­ the methods­ pre­‐ scribed by the OECD guidelines­.

The Board of Direc­tors­ has ulti­mate­ respon­si­bil­i­ty­ for ensur­ing­ that our Code of Conduct­ is followed­ and commu­ni­cat­ed­. This respon­si­bil­i­ty­ is dele­gat­ed­ to the CEO and then down the chain of command­ through manage­ment­ which is re­‐ sponsi­ble­ for ensur­ing­ that the Code of Conduct­ along with asso­ci­at­ed­ guidelines­ and rules are complied­ with by the vari­ous­ functions­ and depart­ments­. In the end every employ­ee­ is respon­si­ble­ for absorb­ing­ the infor­ma­tion­ and follow­ing­ the Code of Conduct­. The Group's purchas­ing­ function­ is respon­si­ble­ for moni­tor­ing­ that suppli­ers­ follow­ the as of 2023 special­ Suppli­ers­ Code of Conduct­.

The Code of Conduct­ is comple­ment­ed­ by four overrid­ing­ policies;­ the Envi­ron­­‐ mental­ Poli­cy,­ Quali­ty­ Poli­cy,­ Infor­ma­tion­ Secu­ri­ty­ Poli­cy­ and Work Envi­ron­ment­ Poli­cy­. These are then supple­ment­ed­ by a number­ of guidelines­ and support­ive­ docu­ments­ such as Guidelines­ Regard­ing­ whistleblow­ing,­ Sanctions,­ Corrup­tion­ and Compe­ti­tion­ Law. All the policies­ compli­ance­ specif­ic­ guidelines­ are taught in web-​based courses­ that employ­ees­ take at regu­lar­ inter­vals­. They are also com­‐ muni­cat­ed­ to customers­ and suppli­ers­ and are available­ on Peab's intranet­ and exter­nal­ websites­. Last year all our employ­ees­ took a required­ updat­ed­ course in Peab's Code of Conduct­.

Governing documents

Summary of the governing documents

Code of Conduct		The Code of Conduct is our most important governing document and it stipulates how we operate in an ethical and sustainable manner.
		Further study, explanation or guidance are recommended for some sections of the code. Peab should run a responsible and ethical business
		throughout our value chain, in particular where the risk for violations is greatest. The Code of Conduct is communicated annually to all
		employees.
Suppliers Code of Conduct		The Suppliers Code of Conduct is intended to ensure that Peab's suppliers contribute to respect for human rights and the environment in
		their own operations. Suppliers should have processes in place to manage actual and potential violations of human rights and the
		environment. Peab expects suppliers to follow the code and communicate its requirements to their suppliers.
Environmental Policy		The Environmental Policy refers to our environmental work as an obvious part of responsible community building and an integrated part of
		Peab's daily operations. We work long-lastingly to prevent negative environmental impact, reduce climate impact, resource consumption
		and negative impact on people and the environment. Through our development work, work methods and offerings, Peab stands for
		responsible business practices and works to influence the world around us to improve their environmental performance.
Quality Policy		The Quality Policy states that our deliveries to customers will be high quality and provide good references for future business opportunities.
		We work preventatively and long-term with quality as an integrated part of our daily operations.
Information Security Policy		The Information Security Policy helps to create a security culture at Peab, increase awareness about information security and create
		prerequisites for efficient management of information and risks.
Work Environment Policy		The Work Environment Policy provides a practical description of the company's rules of conduct, focus areas and targets regarding the work
		environment.

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International conventions that are the basis of the governing documents

Code of Conduct		UN Global Compact including its ten principles in the areas of human rights, labor rights, the environment and fighting corruption, and its
		underlying conventions and declarations, UN declaration of human rights, UN Sustainable Development Goals, ILO's core conventions on
		rights at work, OECD's Guidelines for Multinational Enterprises, UN's Guiding Principles on Business and Human Rights (UNGP), The general
		principles of the International Code of Human Rights and the OECD Anti-Bribery Convention and its recommendations.
Suppliers Code of Conduct		UN Sustainable Development Goals and its ten principles in the areas of human rights, labor rights, the environment and fighting corruption,
		and its underlying conventions and declarations, UN declaration of human rights, UN global goals for sustainable development, ILO's core
		conventions on rights at work, OECD's Guidelines for Multinational Enterprises, UN's Guiding Principles on Business and Human Rights
		(UNGP), The general principles of the International Code of Human Rights and the OECD Anti-Bribery Convention and its recommendations.
Environmental Policy		-
Quality Policy		-
Information Security Policy		-
Work Environment Policy		-

Precautionary principle requirement

Code of Conduct		Yes, obligatory to minimize or eliminate the risk of serious or irrevocable damage to the environment or human health.
Suppliers Code of Conduct		Yes, obligatory to minimize or eliminate the risk of serious or irrevocable damage to the environment or human health.
Environmental Policy		The target of our environmental efforts is to achieve climate neutrality, increase resource efficiency and phase out environmental and health
		hazardous products. Our environmental work is long-term and based on the precautionary principle.
Quality Policy		We work preventatively and long-term with quality as an integrated part of our daily operations.
Information Security Policy		-
Work Environment Policy		-

Human rights comprised by the governing document

Code of Conduct

Suppliers Code of Conduct

Environmental Policy

Quality Policy

Information Security Policy

Work Environment Policy

We prioritize a safe and healthy work environment

We stand for equal treatment and diversity

We do not accept child labor

We do not accept forced labor or debt bondage

We support the right to organize

We support fair employment conditions

We do not accept any form of corruption.

We prioritize a safe and healthy work environment

We stand for equal treatment and diversity

We do not accept child labor

We do not accept forced labor or debt bondage

We support the right to organize

We support fair employment conditions

Certain aspects of our environmental work are relevant to human rights, for example the right to health and a healthy environment.

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Secure and safe information management for all stakeholders, including employees, customers and suppliers.

The right to a safe and healthy work environment, to work in safe conditions and not be exposed to illness or accidents at workplaces. The poli­cy­ also empha­sizes­ the impor­tance­ of working­ togeth­er­ with co-​workers, trade unions and other stakehold­ers­ to

promote­ a good safety­ culture­ and social­ inter­ac­tion­ in order to prevent­ sickness­ and acci­dents­.

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Affected stakeholders

Code of Conduct		Employees
Suppliers Code of Conduct		Suppliers
Environmental Policy		Employees and suppliers
Quality Policy		Employees and suppliers
Information Security Policy		Employees and suppliers
Work Environment Policy		Employees and suppliers

Responsible for approval of governing document

Code of Conduct		Board of Directors
Suppliers Code of Conduct		Board of Directors
Environmental Policy		Executive Management
Quality Policy		Executive Management
Information Security Policy		Executive Management
Work Environment Policy		Executive Management

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Leader in social responsibility

As one of the largest Nordic­ commu­ni­ty­ builders with an exten­sive­ local presence,­ we have an impact­ on our commu­ni­ties­. What we do matters­ and therefore­ our respon­si­bil­i­ty­ for them is a given. This respon­si­bil­i­ty­ begins­ with our role as em­‐ ployers­ and business­ partners­ and stretches­ all the way through our produc­tion­ chain and out into the surround­ing­ neighbor­hood­. Natu­ral­ly­ this respon­si­bil­i­ty­ also includes­ the envi­ron­ment­ and climate­. We impact­ all these areas.

This is how we govern:

Peab's Code of Conduct­ applies­ to our employ­ees­ and since 2023 we have a Sup­‐ pliers­ Code of Conduct­ for our suppli­ers,­ subcon­trac­tors­ and other partners­. The codes set clear require­ments­ on compli­ance­ and respect­ in a number­ of areas like child labor, forced labor, human traffick­ing­ and the right to orga­nize,­ climate­ re­‐ sponsi­bil­i­ty,­ non-​discrimination and anti-​corruption. The Suppli­ers­ Code of Con­‐ duct contains­ specif­ic­ require­ments­ of suppli­ers­ concern­ing­ due diligence­ in the value chain, partic­u­lar­ly­ regard­ing­ respect­ for human rights and the envi­ron­­‐ ment.

The strategic­ work linked to our mate­r­i­al­ aspects­ in the target­ Leader in social­ re­‐ sponsi­bil­i­ty­ is run on both Group and business­ area levels,­ togeth­er­ with the rele­­‐ vant exper­tise­ on every level of our orga­ni­za­tion­ respon­si­ble­ for making­ strate­gy­ into real­i­ty­. Our prior­i­ties­ are the same in all the four countries­ we oper­ate­ in, al­‐ beit with consid­er­a­tion­ to nation­al­ legal differ­ences­. Peab's managers­ always­ have the full respon­si­bil­i­ty­ and are, in turn, support­ed­ by special­ists­. In addi­tion,­ we are certi­fied­ accord­ing­ to a number­ of ISO standards­.

The Board of Direc­tors­ and exec­u­tive­ manage­ment­ annu­al­ly­ moni­tor­ the targets­ for equal oppor­tu­ni­ty­ recruit­ment­ and reduc­ing­ carbon­ dioxide­ inten­si­ty­ in our own oper­a­tions­ - Scope 1 and 2 - by at least 60 percent­ (cf. 2015) and for input goods and purchased­ services­ - Scope 3 - by half (cf. 2015) by 2030.

Equal opportunity recruitment

Peab's own disclosures

Target:­ Percent­ of women recruit­ed­ > edu­ca­tion­ market­ (report­ed­ annu­al­ly)­

Production management and production support (WCW), %

60.0

45.3

40.0

34.9

Equality, diversity and equal treatment

The construc­tion­ and civil engi­neer­ing­ indus­try,­ includ­ing­ Peab, plays a major role in making­ use of all the compe­tence­ soci­ety­ has to offer, in partic­u­lar­ with re­‐ spect to gender­ equal workplaces­. The major inequal­i­ty­ is in profes­sions­ close to produc­tion­. Promot­ing­ diver­si­ty­ at our workplaces­ is equally­ impor­tant­ - that we see and utilize­ everyone's­ compe­tence­ regard­less­ of their background­ or identi­ty­. We are convinced­ that equali­ty,­ diver­si­ty­ and equal treatment­ are key to success­ in both our business­ and in soci­ety­. As one of the largest Nordic commu­ni­ty­ builders we want to be a forerun­ner­ in the indus­try­ in increas­ing­ equali­ty,­ diver­si­­‐ ty and inclu­sion­. Two key factors­ are contin­u­ous­ edu­ca­tion­ and coop­er­a­tion­ with soci­ety­ in gener­al­.

One of our nine exter­nal­ targets­ concerns­ equal oppor­tu­ni­ty­ recruit­ment­ and we work strate­gi­cal­ly­ and long lasting­ly­ to increase­ equali­ty,­ diver­si­ty­ and inclu­sion­ in the Peab­ Group. The COO orga­ni­za­tion­ is respon­si­ble­ for these issues­. As these issues­ are rele­vant­ for our entire­ indus­try,­ we work to raise these matters­ in vari­­‐ ous indus­try­ contexts,­ and when meeting­ politicians­ and the media.

The Code of Conduct­ togeth­er­ with the asso­ci­at­ed­ Work Envi­ron­ment­ Poli­cy­ and our equal treatment­ plan comprise­ Nordic work envi­ron­ment­ and anti-​ discrimination legis­la­tion­.

Production and processing (SW), %

15.0

14.2

10.0

7.9

6.8

20.0

18.8

5.0

0.0

Dec-21

Dec-22	Dec-23	0.0	Dec-22	Dec-23
Dec-21

Outcome	Target		Outcome	Target

7

Quality ensured supply chain

The produc­tion­ chain in the construc­tion­ and civil engi­neer­ing­ indus­try­ is com­‐ plex and consists­ of many differ­ent­ actors­. When it comes to the supply­ chain specifi­cal­ly,­ the founda­tion­ of a sustain­able­ business­ is a supply­ chain where business­ ethics, human rights and the envi­ron­ment­ are fostered­ and respect­ed­.

The matter­ of our suppli­ers­ is central­ to us and is includ­ed­ in sever­al­ of our mate­r­­‐ ial­ sustain­abil­i­ty­ aspects­. At Peab we managed­ around 40,000 suppli­ers­ in 2023. Around 1,500 suppli­ers­ make up 80 percent­ of the Group's total purchase­ volume,­ of which 60 are inter­nal­ suppli­ers­. In other words, we are major buyers­ in the Nordic region­ which means we have a good platform­ for promot­ing­ secure­ and sustain­able­ procure­ment­ along with suppli­er­ collab­o­ra­tion­.

This requires­ good gover­nance­ from the highest­ level in the orga­ni­za­tion­ to indi­­‐ vidual­ workplaces­ as well as clear require­ments­ and moni­tor­ing­ processes­ in every part of the produc­tion­ chain. This requires­ proce­dures­ for assess­ing,­ pre­‐ venting­ and manag­ing­ risks along with collab­o­ra­tion­ and transparen­cy­. Peab's Suppli­ers­ Code of Conduct­ explic­it­ly­ defi­nes­ our expec­ta­tions­ of our part­ ners­ .

How we govern:

Respect­ for human rights and envi­ron­men­tal­ consid­er­a­tion­ is a given in every as­‐ pect of Peab's oper­a­tions­ and throughout­ the entire­ value chain. This commit­­‐ ment is explic­it­ly­ expressed­ in our Code of Conduct­. The risk of vio­lat­ing­ human rights exists­ in all our areas of oper­a­tion,­ inter­nal­ly­ as well as exter­nal­ly­. These risks are partic­u­lar­ly­ prominent­ in the vari­ous­ parts of the supply­ chain, which is why we, as of 2023, have a Suppli­ers­ Code of Conduct­. We work with risk assess­­‐ ments and recti­fy­ing­ shortcom­ings­ in our own oper­a­tions,­ and we quali­ty­ ensure­ our supply­ chain to reduce­ the risk that human rights or the envi­ron­ment­ are not taken into consid­er­a­tion­ and promot­ed­.

Peab's exec­u­tive­ manage­ment­ is respon­si­ble­ for purchas­ing­ gover­nance­. The Group's regu­la­tions­ and processes­ are clearly­ commu­ni­cat­ed­ throughout­ our op­‐ era­tions­. An impor­tant­ part is the funda­men­tal­ require­ments­ set out in Peab's written­ agreements,­ such as a signing­ and comply­ing­ with the Suppli­ers­ Code of

Conduct­ (previ­ous­ly­ the Code of Conduct)­ . The Group's purchas­ing­ function­ is re­‐ sponsi­ble­ for moni­tor­ing,­ checking­ on and devel­op­ing­ Peab's suppli­er­ partner­­‐ ships. For exam­ple,­ our suppli­er­ base is checked on a daily basis, primar­i­ly­ on fi­‐ nancial­ para­me­ters,­ and regu­lar­ controls­ are made relat­ed­ to the Code of Con­‐ duct. Peab has identi­fied­ a number­ of risk cate­gories­ with a heightened­ risk for shortcom­ings­ regard­ing­ human rights, working­ condi­tions,­ envi­ron­ment­ and business­ ethics. We also have a devel­op­ment­ program­ for the years 2024 -

2026 "Quali­ty­ ensured­ and traceable­ value chain" that is one of the Group's two ongo­ing­ initia­tives­ to further­ system­ize­ require­ments­ and moni­tor­ our differ­ent­ kinds of suppli­ers­.

Ethics and anti-corruption

As commu­ni­ty­ builders, we have a signif­i­cant­ re­sponsi­bil­i­ty­ to work with ethics and counter­act­ corrup­tion­. We have zero toler­ance­ for all forms of corrup­tion­. This is a challenge­ in an indus­try­ of gener­al­ly­ decen­tral­ized­ oper­a­tions­ and com­‐ plex value chains since these factors­ may increase­ the risk for ethi­cal­ vio­la­tions­ and corrup­tion­. Our sharehold­ers,­ customers,­ employ­ees­ and other stakehold­ers­ must be able to trust that all our oper­a­tions­ rest on an ethi­cal­ approach,­ inter­nal­ regu­la­tions,­ nation­al­ legis­la­tion­ and that Peab does not compro­mise­ on these.

How we govern:

Peab's exec­u­tive­ manage­ment­ is respon­si­ble­ for govern­ing­ the work relat­ed­ to ethics and anti-​corruption as well as gover­nance­ relat­ed­ to purchas­ing­. The cen­‐ tral steering­ docu­ment­ is our Code of Conduct­. The Group's Ethi­cal­ Council­ is vital to manag­ing­ and moni­tor­ing­ our work with ethics and anti-​corruption, which is also supple­ment­ed­ by our whistleblow­er­ function­.

The Ethi­cal­ Council,­ which consists­ of the head lawyer for Corpo­rate­ Gover­nance­ and Compli­ance,­ head of secu­ri­ty­ and HR managers­ from all the business­ areas, meets once a month for a total of eleven times a year. The action­ plan against cor­‐ ruption­ that Peab works with is devel­oped­ through the risk analyses­ that the Ethi­­‐ cal Council­ regu­lar­ly­ performs­ and includes­ a compre­hen­sive,­ target­ group-​

oriented training­ in ethics and anti-corruption​ to ensure­ that all our employ­ees­ have suffi­cient­ knowledge­ to act proper­ly­ in any given situ­a­tion­. Group function­ Corpo­rate­ gover­nance­ and regu­la­tion­ compli­ance,­ under the leader­ship­ of the head lawyer, works with manag­ing­ vari­ous­ cases of vio­la­tions,­ edu­ca­tion­ in ethics and anti-​corruption, risk analyses­ and measures­ to counter­act­ corrup­tion­ as well as matters­ regard­ing­ gover­nance­ and compli­ance­. Compli­ance­ is not restrict­ed­ to laws and ordi­nances­ but also includes­ our Code of Conduct,­ estab­lished­ working­ methods­ and the other steering­ docu­ments­ within­ the Group.

At Peab, there are sever­al­ way to whistleblow,­ complain­ or express­ opinions­. We encour­age­ employ­ees,­ suppli­ers,­ trade unions and others­ to report­ any forms of miscon­duct­ or uneth­i­cal­ behav­ior­ in the Group. Gener­al­ complaints­ from employ­­‐ ees are report­ed­ to their closest­ super­vi­sor­. If this is not appro­pri­ate­ the employ­­‐

1. is encour­aged­ to report­ to their super­vi­sor's­ boss, the HR function,­ the Ethi­cal­ Council­ or the legal function­ in Corpo­rate­ gover­nance­ and regu­la­tion­ compli­ance­. We also have a whistleblow­ing­ function­ that employ­ees­ and exter­nal­ parties­ can use.

Handling complaints and whistleblowing at Peab

Peab's whistleblow­er­ system­ is used in the event of suspi­cions­ concern­ing­ corrup­tion,­ envi­ron­ment­ breaches,­ fraud, harass­ment,­ mobbing,­ discrim­i­na­­‐ tion and health and safety­ standard­ vio­la­tions­. Anyone­ can make a report­. Since 2023 Peab Group compa­nies­ in Sweden­ with more than 50 employ­ees­ have specif­ic­ whistleblow­er­ contacts­ person­nel­ can report­ to direct­ly­. The previ­ous­ limit was 250 employ­ees­. Person­nel­ in compa­nies­ with fewer em­‐ ployees­ are encour­aged­ report­ direct­ly­ to Peab's council­ for whistleblow­ing,­ which is a central­ function­ under the Ethics Council­ in Peab. Employ­ees­ can also report­ via Peab's channel­ for whistleblow­ing­ on the intranet,­ exter­nal­ly­ at peab.se and on other Group compa­ny­ websites­. The report­ is handled­ confi­den­tial­ly­ by inter­nal­ly­ inde­pen­dent­ staff at Peab. The channel­ for whistleblow­ing­ is available­ in local languages­ and guaran­tees­ the anonymi­‐ ty of the reporter­. Reports­ can also be made orally­ or via letter­ or email. A re­‐ sponse is given quickly­ and always­ within­ seven days.

External reporting

If someone­ outside­ of Peab identi­fies­ any wrongdo­ing­ in the compa­ny­ we want them to report­ it at once, if possi­ble­ to their closest­ contact­ at Peab or direct­ly­ to the site manag­er­ of the project the person­ is at.

Peab also wants our suppli­ers­ to proactive­ly­ commu­ni­cate­ to their employ­­‐ ees how to sound the alarm if they suspect­ something­ that vio­lates­ our Code of Conduct­ or the law, via Peab's channel­ for whistleblow­ing­.

People­ outside­ of Peab's orga­ni­za­tion­ can report­ in the same channels­ and have their reports­ handled­ in the same way as Peab's employ­ees­.

Fundamental prerequisites concerning reporting:

1. No reprisals

Anyone­ report­ing­ suspect­ed­ wrongdo­ing­ should feel safe in the knowledge­ that they will not suffer­ any nega­tive­ conse­quences­. Peab does not toler­ate­ any form of reprisals aimed at an employ­ee­ or anyone­ else report­ing­ sus­‐ pected­ wrongdo­ing­.

2. Ethi­cal­ Council­

The Ethi­cal­ Council­ in Peab supports,­ strengthens­ and devel­ops­ how Peab approach­es­ and applies­ ethics rele­vant­ to our business,­ partic­u­lar­ly­ relat­ing­ to compli­ance­ of Peab's Code of Conduct­. The Ethi­cal­ Council­ processes,­ and decides­ on, the whistleblow­er­ matters­ referred­ to it. The Ethi­cal­ Council­ ensures­ objec­tive­ and conse­quent­ inves­ti­ga­tions­ as well as provides­ an­‐ swers to ethi­cal­ questions­ posed by oper­a­tions/em­ploy­ees­.

3. Report­ing­ to the Board

The Ethi­cal­ Council­ reports­ the total number­ of estab­lished­ and signif­i­cant­ cases of breaches­ in compli­ance­ with the Code of Conduct/Sup­pli­ers­ Code of Conduct,­ laws and regu­la­tions­ to exec­u­tive­ manage­ment­ semi-​annually and to the Board of Direc­tors­ in conjunc­ture­ with half-​year report­ in the third quarter­. The Ethi­cal­ Council­ also reports­ on the conse­quences­ meted out.

Peab describes­ its whistleblow­er­ system­ in detail­ in its Guidelines­ for Whistleblow­ing­ and how person­al­ data is handled­ in "How Peab processes­ person­al­ data".

8

Communication and education concerning anti-corruption

GRI 205-2

Board of Directors and executive management

Informed about Anti-corruption Policy*	Educated in anti-corruption

Informed 2023, 100% (100%) Not informed 2023, 0% (0%)

Educated per 2023, 100% (92%) Not educated per 2023, 0% (8%)

All employees

Informed about Anti-corruption Policy*	Education in anti-corruption

Informed 2023, 100% (100%) Not informed 2023, 0% (0%)

Educated in 2023, 73% (12%) Not educated in 2023, 27% (88%)

*Peabʼs Anti-corruption Policy is integrated into our Code of Conduct

9