SWECO AB Sweco Sustainability Report 2023
Sustainability in client projects 15
Sustainability at Sweco 26
Sweco operates at the centre of the green transition. With our 22,000 architects, engineers and other experts, we work with our clients to design solutions to major societal challenges.
Our work method enables us to offer our clients a combination of global expertise and local presence and understanding, adapted to their business and reality. Sweco's ambition is to be our clients' most relevant and committed partner.
Sweco is where experts come together. From the big picture to the smallest details, we combine our skills and perspectives to learn from each other and grow as one team. At Sweco, everyone is empowered to utilise their expertise - because we believe that we create the best results when we work together.
Sweco - Transforming society together
Sustainability in client projects 15
Sustainability at Sweco 26
Interactive, clickable annual report This is an interactive version of Sweco's Annual and Sustainability Report. You can easily navigate between the various sections using the menu in the left-hand column.
Sweco in briefThe year in brief
4Sweco's offering
Sustainability in client projects
5Buildings and urban areas Water, energy and industry Transportation infrastructure
7Architecture
19 Sweco and Agenda 2030 31
21 Materiality and stakeholder dialogue 32
23 Sustainability governance 36
9Support to Ukraine
Sustainability Report
This report comprises Sweco's statutory Sustainability Report in accordance with the Swedish Annual Accounts Act. The Sustainability Report has been prepared with inspiration from the guidelines of the Global Reporting Initiative.
Financial Calendar
16 About the Sustainability Report 27
17 Sustainability at Sweco 28
25 Climate-related risks and opportunities 39
16 May 2024 | Interim report January-March 2024 |
16 July 2024 | Interim report January-June 2024 |
30 October 2024 | Interim report January-September 2024 |
7 February 2025 | Year-end report 2024 |
Sustainability at Sweco
Climate and environment 41
Employees 51
Business conduct 60
Urban Insight 65
Sustainability notes 66
Auditor's report 72
Digital news
Visit swecogroup.com/ir to subscribe to press releases and reports from Sweco. Select the information you want to receive and it will be sent to your email address on the date of publication. Fast, easy and eco-friendly.
Transforming society together
Contents 3
As Europe's leading architecture and engineering consultancy, Sweco's specialists are driving the green transition together with their clients. Below are some examples of Sweco's work in various client projects and what it's like to work at Sweco.
Meet our experts 14
Norway's largest hospital takes shape 18
Transmission capacity
- key to the green transition 20
Redeveloped ring road will ease traffic
in Belgium 22
Multidisciplinary consulting creates
new opportunities 24
Cover image
Norra Djurgårdsstaden in Stockholm, Sweden is a sustainability profile area that serves as a test bed for new ideas and innovations in sustainable urban development. Sweco's contribution includes solutions for vibrant and attractive urban environments, increased resource efficiency and reduced climate impact.
Sweco in brief
This is Sweco
Sustainability in client projects 15
Sustainability at Sweco 26
Sweco is Europe's leading architecture and engineering consultancy, where more than 22,000 experts work on over 150,000 projects each year. Sweco offers multidisciplinary services in the following segments: buildings and urban areas; water, energy and industry; and transportation infrastructure. Sweco's architecture operations are integrated into all segments. Sweco's experts help private and pub-lic clients analyse, evaluate, plan and design solutions that create tomorrow's sustainable cities and communities.
The business is operated in eight geographical business areas covering around 15 markets in Europe. Sweco also conducts project exports to many countries throughout the world. Sweco's strategy is to grow through a combination of acqui-sitions and organic growth. Sweco has completed more than 160 acquisitions in the past 20 years.
Sweco's decentralised organisation is the cornerstone of the business, with around 1,700 local teams responsible for client relationships, projects and employ-ees. This is a client-focused, efficient working method that has been crucial to Sweco's success over the years.
Net sales by segment in 2023, %
Net sales by client category in 2023, %
Net sales by business area in 2023, %
Buildings and urban areas, 37 (37)
Water, energy and industry, 34 (33)
Transportation infrastructure, 29 (30)Public sector, 38 (38)Other private sector
companies, 24 (21)
Industrial companies, 21 (20)Housing, real estate and
construction, 17 (21)
Sweco Sweden, 29 (32)
Sweco Belgium, 13 (10)
Sweco Finland, 13 (13)
Sweco Norway, 12 (13)
Sweco Denmark, 10 (9)
Sweco Netherlands, 10 (9)
Sweco Germany and
Central Europe, 8 (8)
Sweco UK, 5 (6)
The year in brief
Sustainability in client projects 15
Sustainability at Sweco 26
The year in brief
Robust growth
Increased net sales and stable demand, despite some market challenges and a recession in Europe.
Strong earnings improvement
Improvement in earnings before depreciation and impairment, despite cost increases. Fee increases and a greater number of employees were instrumental to the improvement.
High level of acquisition activity
Acquisitions to strengthen Sweco's market presence and expertise in key areas and expand the company's geographic footprint were completed.
Strengthened order book
Sweco has won more and more major projects that support the green transition in Europe.
More employees
An increased number of employees with a strong focus on integrating new expertise into the company.
Increased focus
The green transition in the energy sector, industry, transportation infrastructure and urban communities are focus areas for Sweco.
Net sales 2023 28.5 SEK billion (24.3) | EBITA 2023 2.5 SEK billion (2.2) |
EBITA margin 2023 8.9% (9.2) | Percentage of women in the Group 35% (35) |
CO2 emissions per full-time equivalent 3.3 tonnes (3.3) | Number of acquisitions completed 10 (12) |
Market and external environment 7
Sustainability in client projects 15
Sustainability at Sweco 26
Strategy and value creation
»Market and external environment 7
Trends that drive demand for Sweco's services
Sustainability in client projects 15
Sustainability at Sweco 26
The green transition, digitalisation and resilience are the overarching trends that impact Sweco's clients and drive Sweco's business. Sweco's expertise is in demand in areas such as resource-efficient industrial solutions, modern transportation infrastructure, reliable energy solutions and climate-smart urban plan-ning. All of these areas are crucial for the sustainable development of society.
Challenges accelerate the need for planning
Europe is facing major challenges. With inflation as its highest level in decades, key interest rates have increased, economic activity has weakened and the short-term economic outlook is flat. With the high degree of geopolitical uncertainty, there is a risk that the ongoing energy crisis may be intensified. There are also longer-term chal-lenges. Climate change and loss of biodiversity may have serious consequences for societies and ecosystems throughout the world.
Many European cities and societies are in need of action plans and concrete measures to ensure water, energy and materials supply in the event of crisis or war. Climate changes, with increased rainfall, higher temperatures and rising sea levels, also place demands on urban planning for new and existing areas.
Focus on energy transition
Reducing climate impact while meeting society's growing need for energy involves creating a secure and efficient supply, distribution and consumption of energy for industry and society at large, while accelerating the transition to fossil-free energy sources. This is a high-priority issue and at the UN's annual climate change conference, COP28, the world's countries agreed to triple the expansion of renew-able energy and double the rate of energy optimisation by 2030. Jobs and interesting business opportunities are being created as a range
Sweco has been selected by biotech company Ecohelix to design a modern production facility for renewable wood-based polymer products. The facility will be built entirely from wood, which is still an unusual choice of material for industrial buildings. Sweco has successfully demonstrated the differences in carbon emissions and costs for tradi-tional concrete frames versus wooden frames, with wood being the clear winner.
»Market and external environment 7
Sustainability in client projects 15
Sustainability at Sweco 26
of sectors collaborate on the development and implementation of new technologies and systems solutions.
Digitalisation as a facilitator
The digitalisation of society is well underway. The development curve is exponential, and advanced IT solutions that link everything together are playing an increasingly important role in shaping tomor-row's sustainable cities and communities. With new digital tools
Growth segments in the green transition
enabling more distance-based work, changes in consumer behaviour with the rapid growth of e-commerce, and housing shortages in many areas, the overall attractiveness of city centres has declined and the development of urban-like areas near but outside typical metropolitan regions is accelerating. A new type of urban planning is emerging, and with it a need for improvements to vital societal functions and infrastructure such as schools, hospitals, energy, water, heating, waste management and public transport. There hasnever been greater opportunity to steer development towards a sus-tainable future through digital solutions, combined with circularity and the green economy. This rapid evolution means that today's architects and engineers need to have a comprehensive perspective, mastering all the advanced technologies that are emerging and understanding how these can be applied to actively support sustain-able development.
Energy transition
Transportation transition
Industry transition
Urban transition
EUR 300 billion
REPowerEU investment package
Sweco's offering
Leading-edge expertise in energy systems and electricity grids:
• Transmission and distribution
• Wind and solar power
• Hydrogen and energy storage
Doubling of Europe's high-speed rail infrastructure by 2030
EUR 40 billion in available capital from the EU Innovation Fund over the next decade
Leading European railway consultancy, with 6,000 experts. Multidisciplinary expertise in:
• Mobility and active travel
• Electrification and fossil-free fuels
• Traffic safety
• Climate adaptation of infrastructureTrusted advisor to some of Europe's most ambitious large-scale industrial projects:
• Carbon emissions reduction (phase-out of fossil fuels) incl. Carbon Capture and Storage (CCS)
• Industrial circularity
• Energy supply and efficiency
• Battery technology
EUR 680 billion of EU's budget will be allocated for climate-relevant measures during the 2021-2027 periodWorld's fourth largest architecture company, with over 1,500 architects:
• Built environment planning, design, construction and circularity
• Resilient urban infrastructure
• Nature-based solutions
Sustainability at Sweco 26
Sustainability in client projects 15
Market and external environment 7
Europe's leading engineering consultancy
Sweco's vision is to be Europe's most respected knowledge company in the fields of consulting engineering, environmental technology and architecture. Sweco helps its clients reduce the climate footprint of existing industries, establish new industries, develop energy and transportation infrastructure, and build tomorrow's sustainable communities and cities.
Europe is striving to become a leader in the green transition and increase control over supply chains along with energy and raw material supplies.
This process is accelerated by political priorities and programmes, including new legislation on the national and European level. It is also fuelled by growing demand from consumers and investors, increased financing and rapid technological devel-opment. This creates many business opportunities for Sweco in the transformation of the energy sector, transportation sector, industry and urban areas.
Sweco's role in the green transition
As the climate transition gains momentum, there is greater willingness to invest in industry and energy. Sweco estimates that around 5 to 10 per cent of total investments planned in Europe inthese areas are being spent or will be on consult-ing services. Positioning Sweco as a leader in the green transition is the key to capitalising on market developments.
In the energy transition, Sweco's experts are involved in the expansion of renewable energy and the adaptation of power systems and electricity grids to meet new capacity requirements as elec-trification intensifies. The transportation transition involves a shift from fossil-fuelled transport to electricity, expanded public transport and a focus on modernising railway infrastructure. In the industrial transition, Sweco is providing solutions to reduce existing industries' carbon emissions and establish new industries with a focus on energy, raw materials and circular business models. The urban transition involves building more sustaina-ble, resilient cities and urban areas.
10
Market and external environment 7
Sustainability in client projects Sustainability at Sweco
Focus on Europe
15 26
Sweco has a legacy of stable and profitable growth and continues to see good opportu-nities to grow faster than the market. Sweco's strategy is to take market-leading positions in its core markets in Europe by growing organically and through acquisitions.
The Rhine-Main link is part of the expansion of Germany's central electricity grid, which will supply the country with climate-neutral energy by 2045. Amprion, the transmission system operator, is planning to gather four DC cable systems in a shared energy corridor to transport offshore wind power from the North Sea to the Rhine-Main area, a distance of over 500 kilometres. Amprion has commissioned Sweco to provide project management services for this key project in Germany's energy transition.
The European architecture and consulting engineering sec-tor is fragmented and has for many years been character-ised by strong consolidation. This presents good growth opportunities for Sweco by broadening the company's mar-ket presence and service offerings through acquisitions.
Sweco strives to hold a top-three position in its core mar-kets. A leading position is essential for attracting the most skilled employees and meeting clients' needs with the best solutions. In 2023 Sweco held top-three positions in five of its eight core markets.
An active acquisition strategy
Sweco has completed more than 160 acquisitions in the past 20 years. This is part of the business areas' ongoingoperations and a key element in the strategy for continued growth. Through acquisitions, Sweco strengthens its geo-graphical presence, its service offering and its expertise. Acquisitions are made based on two main and overlapping objectives: to strengthen and establish market-leading positions, and to develop the company's offering with com-plementary, niche or specialised expertise.
Sweco's acquisition focus is on economically strong mar-kets. A professional, geographical, and cultural fit is of para-mount importance in Sweco's evaluation of acquisition can-didates. Acquired companies are integrated into Sweco's organisational and operational structure and under the Sweco brand.
Number of acquisitions completed during the year
10
Number of new experts gained through acquisitions
1,200
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SWECO AB published this content on 26 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 March 2024 06:41:27 UTC.
