Sustainability Report 2018 What Are You Reading?

Sustainability report 2018 What are you reading?

In front of you is Ikano Bostad’s 6th sustainability report. It was published in April, 2019 and describes an eventful year in which we have continued to approach our goal of having the best and most sustainable customer offering.

We believe in doing things together, executing them with a long-term mindset and maintaining a high ambition of simplifying towards more sustainable everyday living. Both for ourselves, for our customers and for our partners. We believe this is on fair terms.

Our Framework for sustainability is based on our focus areas; Sustainable growth, People and Planet (you can read more about this on page 14).

We have used Global Reporting Initiatives (GRI) sustainability reporting framework called GRI Standards, and reports in accordance with their core level. Our sustainability report also follows the requirements set forth in chapter 6, paragraphs 10–14 of the Annual Accounts Act.

What we report on in this sustainability report is the areas which we have considered as being most important to us. Both in order to describe our business and based on what our stakeholders want to know.

We have followed the accounting principles of GRI Standards in terms of content and quality. The accounting principles help us to ensure that the report reflects our operations and our impact in a good way and that we fulfil expectations and demands from our stakeholders.

We have only reported our impact that stems from our daily operations. This means that we do not take responsibility for or report on operations that are controlled by individual customers, our suppliers or subcontractors.

At ikanobostad.se/hallbarhet you will find our GRI index. There, for example, there is information about our indicators and what limitations we have set. All our indicators relate to our sustainability work between January 1 and December 31, 2018. In the report you will also find the indicators for 2017 and in some places, even for other previous years. They are included in order to make it easy for you to read the report to see how our sustainability efforts have developed over time.

Enjoy a nice read!

2 | Ikano Bostad – Sustainability report 2018 Contents

Comments from our CEO ...... 4

The year in breif ...... 5

About Ikano Bostad ...... 6

Our offer ...... 8

Our projects ...... 10

Our business model ...... 12

Strategy and management ...... 14

Sustainable growth ...... 16 Customer and market ...... 16 Risk and compliance ...... 18 Sustainable business- and operations development .....20 16 Sustainable Growth Sustainable purchasing ...... 21

People ...... 22 Sustainable neighbourhoods and living environments ...22 Responsible social partner ...... 24 22 People Sustainable worklife...... 26 Planet ...... 30 Climate ...... 30 Use of resources ...... 33

Board of directors and management team ...... 36

Auditor’s statement ...... 38

30 Planet

Ikano Bostad – Sustainability report 2018 | 3 Comments from our CEO

Robert Jaaniste, CEO Ikano Bostad Together we are strong

In 2018, we have increased our focus on how we work with sustainability. Among other things, we have made important decisions regarding our future efforts when it comes to the environment. We increasingly see more clearly that sustainability and profitability go hand in hand. We have also seen a cautious market, and this places greater demands on us to work according to our values.

The market situation Increased focus on social sustainability During the year, the housing market, in particular in Stockholm How we in the industry work with social sustainability is also one and Uppsala, has been very cautious. At Ikano Bostad, it is issue that has become increasingly important. At Ikano Bostad something we have felt the impact of, primarily through reduced we were an early adaptor working with this and we think it is sales. Despite this, we sold 640 homes in 2018 and had more good that the issue enjoys a higher standing on the agenda. people moving in than previous years. This is primarily thanks to In 2018, among other things, we arranged a carpentry school the commitment of all our employees. for children in Kungälv, we made the decision to start our Ikano In connection with the Ikano Group celebrating 30 years, Academy in Västerås and we continued our efforts to create we had a 30 month no-fee offering on housing for those who areas for people to interact in our residential areas. purchased a new home with us. A total of 171 homes were sold in During the year, our carpentry apprenticeship programme for conjunction with the offering. women, Hentverkarna, enjoyed its 1st year anniversary. Several We also worked hard in our property management and we players in the industry have started similar programmes during had a very good year. Among other things, we’ve focused on the year and I think this is great. Together, we can challenge continued energy efficiency improvements regarding our pro- norms in the industry and create a broader recruitment base. perties and focused on actively setting rents at the right levels. It also contributes to increased profitability. It has meant good results both financially and in terms of our environmental efforts. Supported by strong values That we have a broad business offering and that we operate During the year, we have been working hard throughout the in several markets means we can embrace a long-term approach entire company and I am very proud of the commitment of all and stand strong together. employees. We must not forget our values and always work according to them. We must continue to work together on fair Roadmap moving forward terms every day and always let common sense and simplicity The building and real estate industry’s climate footprint is an issue guide us in our decisions and daily work. It is only together that that has received increasing attention during the year. Being a we can be a strong Ikano Bostad. long-term player is about looking ahead and meeting the Chal- lenges that affect us as a company, the industry and our customers. During the year, we decided to follow Fossil Free Sweden’s and The Swedish Construction Federation’s roadmap in efforts towards reaching a climate-neutral construction industry by the year 2045. Robert Jaaniste

4 | Ikano Bostad – Sustainability report 2018 The year in breif

Hentverkarna 1 year

Ikano 30 years

Energy efficient Finished our first properties town houses

Ikano Bostad – Sustainability report 2018 | 5 About Ikano Bostad

We simplify for sustainability Ikano Bostad was founded in 2005. We develop, build, own and administrate housing for the many people. One of our goals is to simplify for sustainability and to make sustainability a part of everything we do. Ikano Bostad is part of Ikano, an international company group with operations in housing, banking, insurance, production and retail. Ikano Bostad and Ikano Bank are in Sweden. Ikano was initially part of IKEA but became independent in 1988. The owner is the Kamprad family.

VISION: To create possibilities for better living.

During the year we developed more stringent requirements for the use of ID06.

During the year we reduced our climate footprint for our rental properties from 11 kg CO2e/m2 to 9 kg CO2e/m2.

6 | Ikano Bostad – Sustainability report 2018 About Ikano Bostad

Since 2014, 32 of 35 participants in our Ikano Academy have received employment or begun studying.

BUSINESS CONCEPT: We offer space- efficient, functional and sustainable homes at affordable prices for people at all stages of life.

MISSION: Simplifying the many people’s lives so they can focus on living.

During the year, we have had our first tenants move into apartment with flex solutions.

Ikano Bostad – Sustainability report 2018 | 7 Our offer

Ikano Bostad – the secure housing company Ikano Bostad always works based on the area’s conditions to create sustainable neighbourhoods and residential environments. With common sense and simplicity, we strive to live up to our promise: on fair terms.

For us, it is important to think of the entirety. We are a dedicated Working together housing developer and property manager and we are driven by At Ikano Bostad, we believe in doing things together. We finding sustainable solutions and building space-efficient homes want to work and share experiences with municipalities and for the many people. By developing and building tenant-owned other players in the industry to jointly drive the development apartments, rental apartments, town houses and nursing homes, of sustainable neighbourhoods and residential environments. as well as owning and managing rental properties and nursing Working together and learning from each other is what we homes, we can embrace being a long-term player and take on believe leads to increased well-being and security in our a greater role in the development of districts. residential areas and in society.

293 (263) nursing places under administration. One nursing home under construction in Stockholm.

5,760 (6,200) rental apartments under administration. 99.6 (99.8)% apartments rented out.

SEK 2,9 (2.6) billion in turnover. SEK 16 (15.5) billion in market values of properties and landbank. 1,380 (2,200) new homes in production.

8 | Ikano Bostad – Sustainability report 2018 Our offer

We are guided by goal 1, 3, 4, 5, 7, 8, 9, 10, 11, 12, 13, 15 and 16 in our sustainability work.

Ikano Bostad is guided by the UN’s Agenda 2030 We want to be one of Sweden’s most sustainable companies in the construction and real estate industry. To achieve this, we are guided by the UN’s Agenda 2030 and the global development goals for sustainable development. Our industry has a great impact on people, society and the environment - that’s why we think it is important to support the UN’s Agenda 2030 and contribute to the work towards a more sustainable world.

Ikano Bostad – Sustainability report 2018 | 9 Our projects

Ikano Bostad operates in Stockholm, Malmö, Lund, Gothenburg, Uppsala and Västerås. Ikano Bolig operates in Copenhagen. We are active where Sweden is growing On this page, a selection of Ikano Bostad’s projects are presented.

Sköndal

SKALDEN, VÄSTERÅS 61 rental apartments Moved in 2018 sedum roofing • charging points for electric cars Västerås

ELINEGÅRD, MALMÖ ÅRSTAHUSEN, Ongoing project STOCKHOLM 262 rental apartments Ongoing project 232 tenant-owned apartments 234 tenant-owned apartments 41 town houses Start of production 2016 Start of production 2014 Moved in started autumn 2018 Moved in started 2016 gardeining boxes • charging sedum roofing • carpooling • points for electric cars • close bicycle pooling • charging to good public transport • points for electric cars • bicycle focus on meeting areas in workshop • green area factor Elinegård everyday living

Hagastaden HAGASTADEN, KOMARKEN, STOCKHOLM KUNGÄLV 273 tenant-owned apartments 106 tenant-owned apartments 13 Housing with special services 89 rental apartments Start of production 2017 Start of production 2017 Moved in started 2018 Moving in planned 2019 sedum roofing • carpooling letter of intent for social • bicycle pooling • charging sustainability • close to points for electric cars • good public transport bicycle workshop

Kungälv Årstahusen

10 | Ikano Bostad – Sustainability report 2018 HUMLESTADEN, GÖTEBORG Project in early stage 1 500 homes Estimated start of production 2022 Humlestaden Moving in planned 2024

SKÖNDAL, STOCKHOLM 52 rental apartments 6 apartments for special needs 21 student apartments or similar 72 elderly care apartments Start of production 2018 Moving in planned 2021 Sköndal Brunnshög

BRUNNSHÖG, LUND 99 tenant-owned apartments Start of production 2019 Moving in planned 2021 sedum roofing • carpooling • bicycle workshop • close to good public transport Skeppskajen

TELESTADEN, SKEPPSKAJEN, STOCKHOLM UPPSALA Project in early stage Project in early stage Approximately 1 500 500 tenant-owned apartments homes Estimated start of production 2022 Moving in planned 2024 Gränby

BARKARBYSTADEN, GRÄNBY, JÄRFÄLLA UPPSALA Ongoing project Ongoing project 214 tenant-owned apartments 242 tenant-owned apartments Start of production 2017 Start of production 2016 Moved in started 2018 Moved in started 2017 waste disposer • gardeining carpooling • charging points boxes • sedum roofing • char- for electric cars ging points for electric cars

Telestaden Barkarbystaden

Ikano Bostad – Sustainability report 2018 | 11 Our business model

Sustainability at all levels We want to be sustainable in all parts of our value chain. That’s why we strive to reduce our negative impact and increase our positive impact at all levels.

Our organisation Our business operates every day at our various offices and we make strategic decisions for the development of our business. Our impact • electricity consumption in our offices and business trips by our employees. • working environment, health and safety. • employee and leadership development. • diversity and inclusion. • the development of our business with a focus on sustainability. Challenges • to readjust and thereby adopt sustainable work approaches and to ensure that our work with sustainability falls in line with the UN’s Agenda 2030.

Land and property purchases We buy land for the development and construction of housing and nursing homes and acquire rental properties. Our impact • the use of unused land that can affect ecosystem services. • risk of increased burden on the environment and society. • the opportunity to steer towards increased sustainability and work together with business partners. Challenges • increased clarity for what we as a player in the construction and real estate industry can contribute in terms of the development of new areas. • enabling sustainable choices in everyday living for our tenants.

12 | Ikano Bostad – Sustainability report 2018 Development of residential areas We plan and develop housing, neighbourhoods and districts. Our impact • our decisions govern what impact our housing and neighbourhoods have on the environment, on people and on society in the short and long term. Challenges • creating circular flows. • creating safe districts. • creating districts that can resist climate change and negative environmental impacts. • enabling sustainable choices in everyday living for our tenants.

Construction and renovation We build rental apartments, tenant-owned apartments, single-family homes and nursing homes, as well as renovate our existing property portfolio. Our impact • purchase of products and materials. • production methods that affect the climate, reduced use of resources and security for staff at our construction sites.

Challenges • climate-neutral production and transport methods. • to start using climate-neutral concrete and steel. • constant development and readjustment of the safety culture. • to readjust and adopt an increased use of circular materials and products.

Management and sales We manage rental apartments and nursing homes and sell tenant-owned apartments. Our impact • climate impact in property management. • creating opportunities for tenants to follow a sustainable lifestyle. Challenge • digitalisation can lead to increased use of resources and consumption. • enabling sustainable choices in everyday living for our tenants.

Ikano Bostad – Sustainability report 2018 | 13 Sustainability strategy and management

We simplify for sustainability

When the world needs to become more sustainable, it is important that we contribute to making the readjustment easy. The goal is to simplify for sustainability and that sustainability should be part of everything we do.

In our Framework for sustainability, we focus on the issues that are most important for us to work with. By basing actions on our framework when we develop our business and our offerings, we can simplify for sustainability and work towards sustainable growth. The essential areas that we have prioritised as being important to us are: sustainable business development, sustainable purchasing, Sustainable worklife, good social actor, sustainable neighbourhoods and living environments, climate and use of resources. Based on this, we select and prioritise activities and steer and monitor our work with sustainability. The framework is based on our dialogue with stakeholders and materiality analysis.

ViWe utvecklar develop allaall parts delar of av our vår daily dagliga ViWe utvecklar develop nya new hållbara sustainable produkter It helps us on verksamhetbusiness with med a focus fokus on på sustainability. hållbarhet. ochproducts erbjudanden and offerings till affärspartners to business the path towards a • Organisation development ochpartners slutkunder. and end customers. • Verksamhetsutveckling sustainable growth! •• Bostadsutveckling Residential Development • Produkter• Products •• Byggproduktion Production • Koncept• Concepts •• Förvaltning Property management • Affärserbjudande• Offer •• Other Other investments investments - vårt kontor i Hyllie • Varumärke• Brand

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People Ikano Bostad BusinessAffärspartners partners SustainableHållbar tillväxt growth andoch end slutkunder customers

14 | Ikano Bostad – Sustainability report 2018 Sustainability strategy and management

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Our framework Our framework is divided into three different parts – Sustainable growth, People and Planet.

Sustainable growth is about how we create People is about our work Planet is about how we work to reduce and safeguard economic sustainability. with social sustainability. our negative environmental impact and Here are the essential areas: Here are the essential areas: readjust in order to increase our positive – Sustainable business development – Sustainable neighbourhoods environmental impact. – Sustainable purchasing and living environments Here are the essential areas: Here we also present: – Good social actor – Climate – Business development – Sustainable worklife – Use of resources – Risk and compliance – Customers and markets

Our values

Daring to be different Working together We want to use the freedom that comes We all have knowledge, experience and with challenging old truths to deliver new good ideas from which we can learn in and improved solutions. We want to find our sustainability efforts. Mistakes must Common sense new ways of solving the small problems be allowed, as long as we learn from and simplicity that we all encounter in our daily lives. them and do our best to correct them. When short-sighted interests clash with long-term sustainability, we make sure Our promise to find new ways. On fair terms On fair We want to be a responsible social terms Sunt Common sense and simplicity partner and comply with our promise: on Keeping our feet on the ground and using fair terms. This means maintaining a fair Working Daring to be together different our common sense helps us make realistic balance between all partners in relation assessments. We see possibilities, but to risk, work and profit. It also means also dare to discontinue activities that that we should be open and clear in our don’t belong to the future. Common sense business methods. It includes remaining also means taking a practical approach accessible and reliable, delivering on our that includes cost consciousness. promises and doing it on time.

Ikano Bostad – Sustainability report 2018 | 15 Customer and market

Our customers are most valuable to us At Ikano Bostad we strive to have the industry’s most satisfied customers. Our long-term goal is to have the industry’s best and most sustainable offering.

We notice an increased demand for solutions that make it We also perform home visits to our tenant-owned apartment easier to make sustainable choices in everyday living. We work customers approximately one year after they have moved in. to meet the demand and inform and simplify towards achieving During this home visit, among other things, we ask about what sustainable everyday living for our customers. they think about their home and what can be better.

The importance in listening Dialogue Every year, we perform a Customer Satisfaction Index survey When we plan to densify in our areas or upon renovations of with our tenant-owned apartment customers and rental tenants. our property portfolio, we invite those who live in the area Regardless of the results or responses we get, we use it to to join in a dialogue at an early stage. This allows them to be develop the business and look at what can be improved on in involved and influence what will happen right from the start. order to be able to give our customers the best offerings. We think this is on fair terms. The 2018 survey showed that we could be better at correcting It is particularly important when we plan to make changes that any errors faster and improving the initial impression when affect our rental tenants. It is then important to conduct a close people move in. We will work with these areas in 2019. dialogue both everyday and in the event of major changes.

CUSTOMER CUSTOMER TARGET 2018 RESULT 2018 SATISFACTION TARGET SATISFACTION INDEX Long-term target: CSI TENANT-OWNED APT. 74 72 (70) The industry’s most Prognoscentret satisfied customers NEW RENTAL APT. 81 87 (77) Prognoscentret

RENTAL APT. 81 80 (80,2) AktivBo serviceindex

Limhamn, Malmö 41 % of those approached who are tenant-owned apartment customers answered the survey. 41 % 16 | Ikano Bostad – Sustainability report 2018 Ikano Bostad – Sustainability report 2018 | 17 RiskRisk and & compliance

Our sustainability risks Working with risk prevention is an important part of our long-term growth. We shall be a company that works on fair terms. Our values guide us and constitute our starting point for how we work.

FURTHER RISK AREA RISK MANAGEMENT READING

GLOBAL WARMING AND CLIMATE IMPACT • A warmer climate affects human health • Sustainability policy. Climate p. 30 both locally and globally in terms of heat • Decided to follow the industry roadmap for a waves and floods, as well conditions for climate-neutral and competitive Sweden 2045. animals and nature. Sustainable • Development of roadmaps during 2019 to be purchasing • Building and real estate operations with climate neutral by 2045. p. 21 major carbon dioxide emissions related to concrete use, steel production and • Started working with digitising the monitoring Sustainable heating and electricity for properties. of our climate impact and our climate work. business and • Carbon dioxide laden heating • Building according to higher energy organisation and electricity for properties. requirements than what is required by the development Swedish National Board of Housing, Building p. 20 • Lifestyle choices and mobility for residents and Planning. which affect the climate. • Working on developing opportunities for a sustainable lifestyle for those who buy housing or rent housing from us.

ENVIRONMENT HAZARDOUS SUBSTANCES AND SHORTAGE OF RESOURCES • Risk that hazardous substances contained in • Sustainability policy. Use of resources p. 33 building materials and products spread to • We use the SundaHus database when nature, people and are built into properties. selecting materials and products. Sustainable • Too much use of finite resources, for • Places environmental demands business and example in the case of rare substances or upon procurements. organisation for large amounts of water consumption. development • Working on developing opportunities p. 20 for a sustainable lifestyle in management and housing development. Sustainable • Looking at what opportunities exist for purchasing circular business models and offerings. p. 21

ACCIDENTS AND ILL-HEALTH ON OUR BUILDING SITES • Risk of accidents and incidents • Ikano Group Code of Conduct and Working Sustainable in construction production. Environment Policy. worklife p. 26

EMPLOYEES’ WORKING ENVIRONMENT, • Systematic work with the working WORKING CONDITIONS AND WELL-BEING environment to prevent workplace accidents. • Physical or mental illness due to working environment and working conditions. SOCIAL CONDITIONS AND STAFF SOCIAL CONDITIONS AND STAFF

18 | Ikano Bostad – Sustainability report 2018 Risk andRisk compliance & compliance

FURTHER RISK AREA RISK MANAGEMENT READING

PURCHASING, HOUSING,

SECURITY, DEMOCRACY, EMPLOYMENT

• All human rights when it comes to the • Ikano Group Code of Conduct, Ikano Group Sustainable production of building materials, especially Partnership Policy, Ikano Group Whistleblower purchasing in terms of a global perspective, with a Policy and Purchasing and Procurement Policy. p. 21 focus on working conditions, child labour, • Increased requirements for registration of health, impact on the living environment, Sustainable subcontractors and to be able to present ID06. democracy and freedom of expression. neighbourhoods p. 22 • Human rights from a housing perspective, • Looking at how we can digitise the auditing process regarding the risks in our supply chain. for example in terms of democracy Responsible processes, security, having a home and • A main partner in BoTryggt2030. social partner a safe living environment. p. 24 • Starting well-being groups for increased • Human rights from an employment influence by residents and sense of community perspective. Diversity and discrimination in residential areas. Sustainable in a male-dominated industry. worklife • Working for increased inclusion by p. 26 providing meaningful leisure time for

HUMAN RIGHTS children and youth, vocational schools for young adults, summer jobs.

• Following GDPR.

• Conducting a dialogue with residents prior to ROT renovations and offering different levels of renovation for the residents to choose from.

• Planning for increased diversity 2018–2020.

• Running Hentverkarna, a three-year carpentry programme for women.

• The Cultural Journey – our efforts to improve diversity and the working climate.

CORRUPTION – LOCALLY AND GLOBALLY • Risk of bribery and irregularities linked • Ikano Group Code of Conduct, Ikano Group Sustainable to extension projects/business deals/ Partnership Policy, Ikano Group Whistleblower purchasing subcontractors which can lead to legal Policy and Purchasing and Procurement Policy. p. 21 and financial consequences. • Requirements for the approval of subcontractors and their subcontractors, and • Risk of corruption upon global or local increased requirements for being able to purchases based on conditions where present ID06 at the construction sites. building materials and building products • Looking at how we can digitise the auditing ANTI-CORRUPTION are manufactured. process regarding the risks in our supply chain.

Ikano Bostad – Sustainability report 2018 | 19 Sustainable business and organisation development

SUSTAINABLE GROWTH • Placing sustainability at the core of new business development. • Develop sustainability work based on our People and Planet areas, spreading it and making it part of all our developments, our operations and our offers. • Package the sustainability of what we have developed by including accounts of our sustainability work and sustainability in our customer offers.

Strategic and sustainable development

One of our strengths is that we have a business with a broad and long-term focus. It creates a solid foundation that makes it possible to test and quickly evaluate new ideas.

At Ikano Bostad we are not afraid to try new ideas for finding During the year, the first tenant-owned apartments with flex- new sustainable solutions. For us, sustainable business develop- solutions were ready for moving in. We also started work with ment means that we base our actions on our sustainability work developing a methodology for how we will work with creating and make it part of our products and services. points of interaction and to increase the sense of community in everyday living for neighbours. We’re also testing a digital Increased focus on strategic business development communication platform that will make it simpler to create a In 2018, we have invested even more in developing our sense of community and interactive meeting points in everyday offerings to end customers and business partners according to living. We see digital investments as an important part of our our innovation methodology called BoLabb. Our goal is to have path forward. the industry’s best and most sustainable customer offerings. By investing in our strategic business development, we also Sustainability should be a part of everything we do work to ensure that our daily business completely reflects Sustainability is a natural part of our business and operational sustainability, digitisation and innovation. development, and is a necessity for our sustainable growth. During the year, we began a strategic collaboration with Much of our work with sustainability happens through the IKEA. Together, we are exploring the future of housing where development that we already work with every day. During the sustainability and cost consciousness assume prominent roles. year, sustainability became part of our strategic guidance in We have continued the development of surface efficiency order to achieve the goal of sustainable growth. In 2019, for solutions such as FlexRum (Eng: FlexRoom) and FlexFörvaring example, we will begin work with developing our own roadmap (Eng: FlexStorage). They are solutions geared to create better for how to achieve the industry’s goal of a climate-neutral space in the home using removable walls. construction industry.

20 | Ikano Bostad – Sustainability report 2018 Sustainable purchasing

SUSTAINABLE GROWTH • Increased requirements regarding environmental and social conditions.

Every year, we purchases goods and services to a value of SEK 2.7 (2.7) billion from about 2,600 (2,500) suppliers. 50 of whom together cover 60 percent of the purchase volume.

Purchasing on fair terms

The impact of our purchasing is evident throughout our value chain. As a buyer in the housing and real estate industry, we take responsibility for our purchases and place demands on our suppliers.

We have a purchasing process that is to be followed by Our suppliers must always be approved before they start work everyone who makes purchases, regardless of their role in the on our construction sites. People who do not have a valid ID06 organisation. Our purchasing process is based on our over- and who do not belong to an approved company will not be all Purchasing Policy and the Ikano Group’s Fraud Prevention admitted. We will continue to work to ensure that we follow the Measures Policy. routine and our purchasing process in a sound manner. We work with framework agreements to minimise the risk of e.g. corruption. When we procure new suppliers, among other Focus on sustainable purchasing things we place demands on having financial stability, collective For us, sustainable purchasing is about taking responsibility for agreements and that they follow Swedish laws and regulations our economic, social and environmental impact. During the year, with regard to e.g. salaries. We will continue to work more with we also began to calculate the climate impact of the concrete this central purchasing within all housing development and that we use in our home frames. We will also test a digital tool construction production to ensure that all our purchases are that will help us in assessing the risks to human rights and the made on fair terms. environmental impact upstream in the supply chain, for example in terms of the production of raw materials. Subcontractors The challenges for resource use and purchasing are many, The risks associated with our suppliers are something we and there are several challenges that we will need to work on always work with. The risk of illegal labour and rogue busi- moving forward. It involves, for example, how we readjust our nesses is one of the greatest risks. During the year, we have way of working with circular flows, reduced resource use and strengthened our routines for how we control the supply chain. our continued work to reduce construction waste.

Ikano Bostad – Sustainability report 2018 | 21 Sustainable neighbourhoods

Sustainable neighbourhoods and living environments Creating the sustainable cities of the future is an important goal moving forward. At Ikano Bostad, we want to work together to develop, build and manage districts that can meet the climate and environmental challenges of the future.

Urbanisation and digitisation create both challenges and op- Ecosystem services portunities for sustainable urban development. It is in the early In the early stages, we always look at the conditions that exist stages that we have the best opportunity to influence. At Ikano for ecosystem services. Ecosystem services are all the functions Bostad, we work with other actors in our larger area projects. and products that stem from nature’s ecosystems and which For example, we work according to CityLab Action’s process for contribute to the well-being of people and the earth. In our sustainable district planning together with Malmö Municipality project called Parken, in the Västra Hamnen area of Malmö, we in our area project Elinegård Södra. are building according to the environmental certification called We work with all of our focus areas within sustainability in our BREEAM-SE, which places high demands on incorporating eco- projects, both when we build new homes and for ROT renovations. system services.

Safety first with BoTryggt2030 We simplify for sustainable everyday living For us, it is important that those who live in our residential It is in the early stages of new construction projects, and when areas feel safe when they get off the bus. An active approach we densify residential areas, that we can best plan for how for increased security leads to increased well-being, but also we can simplify for sustainable living for our customers. The to reduced crime rates. That’s why we are a main partner in readjustment to a climate-neutral society not only affects us as BoTryggt2030, which works to develop guidelines and manuals a construction and property company, but also our customers. for the design of safe neighbourhoods. That’s why we make it simpler for our customers to make sus- Within our innovation methodology called BoLabb, we tainable choices in everyday living by planning for carpooling have developed guidelines for how we will increase security and bicycle pooling, a bicycle workshop, an outdoor gym and and well-being when we manage our residential areas and charging stations for electric cars whenever possible. develop new ones.

Bicycle pooling

Humlestaden, Gothenburg

22 | Ikano Bostad – Sustainability report 2018 PEOPLE • Town planning perspective. • Ecosystem services. • Inspire to and simplify a sustainable lifestyle for tenants and tenant-owners. • No exclusion.

NUMBER OF BUILDING PROJECTS THAT ARE PLANNED BY ECOSYSTEM SERVICES SUCH AS...

green area factor 21 % (17 %) gardeining boxes 30 % (27 %) sedum roofing 56 % (56 %) biotope habitat 7 % (new) birdhouses 7 % (new) solar cells 9 % (12 %) Bicycle workshop

NUMBER OF BUILDING PROJECTS THAT ARE PLANNED FOR...

food waste sorting 93 % (93 %) sorting of waste 72 % (76 %) waste disposer 7 % (7 %) Barkarbystaden, Stockholm

NUMBER OF BUILDING PROJECTS THAT ARE PLANNED FOR...

carpooling 44 % (41 %) charging stations 58 % (54 %) bicycle pooling 21 % (15 %) bicycle workshop 40 % (32 %)

Elinegård, Malmö S edum roofing

Ikano Bostad – Sustainability report 2018 | 23 Responsible social partner

We turn exclusion into inclusion At Ikano Bostad, we go from idea to action to turn exclusion into inclusion. For example, since 2014, 32 out of 35 young people who have participated in our Ikano Academy have been received employment or pursued further studies.

For us at Ikano Bostad, it is important to be a part of contributing to positive social development. As a housing company, we have great influence on the local community in the areas where we operate. We want to reduce exclusion and contribute to long-term change for individuals and groups who live in our residential areas. We think that everyone has the right to have a chance to feel a sense of belonging in society. Local Our method conditions We engage and include those who live and visit our residential areas. It is something that is requested by our partners, not least municipalities and Social other players in the industry. We know that together we can create sustainability sustainable neighbourhoods and reduce exclusion. Our method for social sustainability work is based on commitment, working together with others, such as local actors or the municipality, and always basing actions on the local conditions. In this way we work to create a sense of community and security for everyone who lives in Commitment Collaboration our residential areas.

PEOPLE • Community and safety in and around our neigh bourhoods and living environments. • No exclusion.

We help set ut so called wellbeing groups. It is a way of getting neighbours acquainted, supporting wellbeing and a shared sense of responsibility for the residential area. Today there are active wellbeing groups in Stockholm and Västerås. Wellbeing

24 | Ikano Bostad – Sustainability report 2018 Ikano Bostad collaborates with the foundation Läx At least 1 percent of our rental hjälpen and proviodes apartments are earmarked for financial support so that 100 so-called social case priorities. students in Stockholm, Malmö and Västerås received help 1 % with their100 studying in 2018.

In 2018, 12 young people were employed by our Ikano Academy. Since the beginning of 2014, 32 out of 35 have received employment or32 began studying.

In Rågsved, our youth One week during the summer centre is open after school holidays and during the Easter for children who live in holidays, we offer football and Ikano Bostad’s properties. leisure schools for the children of our tenants.

Football school

20 children and young people in our residential area were given summer jobs by us in Stockholm and Västerås.

Youth recreation center Summer jobs

Together with Ljusare 40 children participated in framtid in Gränby, Uppsala, Ikano Bostad’s carpentry we work with local actors workshop in Kungälv. and residents in the area towards a safer Gränby. Safety 40 Ikano Bostad – Sustainability report 2018 | 25 Sustainable worklife

A value-driven work life Our values should be reflected in everything we do. During the year, we have talked even more about our values, educated the organisation in gender issues and challenged norms.

Our driven and committed employees, and that we live by Diversity and inclusion our values, are some of our most important success factors. An organisation that is characterised by diversity results in incre- Together, we work to achieve Ikano Bostad’s long-term vision of ased collective competence and experience at Ikano Bostad. For creating opportunities for better everyday living for the many us, this is about making use of creativity, knowledge and different people. To be able to do this, it is important that we have a views and approaches. We will continue to work with leadership fair corporate culture and that all employees are happy and development and how we communicate. It is a key to success. continue to develop. In 2018, we launched a new diversity plan that stretched through to 2020. At Ikano Bostad, we believe that diversity is a Cultural journey catalyst for more diversity and that it is important that we help Within the framework of what we call the Cultural journey, each other in the industry and dare to make changes. we deeply embrace values and challenge our behaviours as We underwent an organisational development during the year well as the norms of the building and real estate industry. We and developed a new structure in our management team. The want to contribute to a work environment that is characterised proportion of women in management group is now 60 percent. by diversity and equality. In this way, we also broaden our recruitment base and contribute to profitability – for us this Satisfied employees goes hand-in-hand. Every two years, Ikano Group’s employee survey called VOICE In 2018, we have conducted gender educational programmes is conducted. The last time was in 2017. The goal was a VOICE for all of our management groups. We have also held learning index of 740 or higher. The highest possible VOICE index is seminars at the building sites where participants worked who 1,000. For 2017, the result was 779, while the response rate was were in our carpentry apprenticeship programme for women, 85 percent. Focus for the employee survey was on how we live Hentverkarna. Among other things, gender and working by our values in practice, having clear goals and leadership. environment issues were high on the agenda and how we can The result of employee survey we then incorporate into our work to break norms. action plans moving forward. The context for the Cultural journey is extensive. We have During 2018, we did not conduct an employee survey. continued to develop a toolbox with activities and trainings for However, we launched a new measuring tool at the end of the all parts of Ikano Bostad to work further with. In the future, we year in order to quickly gain a sense of the vibe in the organisa- will primarily continue to work on leadership development. tion and raise awareness about certain things if needed.

PEOPLE • Our values. • Work environment – health and safety. • Employee and leadership development. • Diversity and inclusion.

26 | Ikano Bostad – Sustainability report 2018 VOCIE RESULT The VOICE survey was not performed during 2018.

WHAT RESULT 2015 TARGET 2017 RESULT 2017

VOICE 708 >74 0 779

LEADERSHIP 74 % >74 % 80 % proportion giving top marks

VALUES 74 % >74 % 86 % proportion giving top marks

DIVERSITY TARGETS 2020* 86 percent might consider reconmmending Ikano Bostad as an employer TARGET RESULT TARGET 2018 2018 2020

Number of newly recruited female 50 % 42 % 50 % office workers during the year

Number of female managers 50 % 44 % 50 % 86 % with line responsibility Number of female skilled 10 % 18 % 20 % workers (carpenters)

Number of employees 20 % 17 % 20 % with a foreign background

*Not including Brantås Bygg AB

NUMBER OF EMPLOYEES AS OF 31 DECEMBER* 2017 2018

Total no. of employees 492 458

Full time 486 442

Of whom women 172 160

Of whom men 314 282

Part time 8 16

Of whom women 4 10

Of whom men 4 6

*The numbers also include Brantås Bygg AB.

Ikano Bostad – Sustainability report 2018 | 27 Sustainable worklife

100 % covered by collective agreements

Work environment, health and safety Employee and leadership development Working towards a good and safe working environment It is important that all employees feel that they grow and is a given for us at Ikano Bostad. The work with preventing develop. For us, it begins with the leadership. Leadership workplace accidents and ill-health at work is continuous and development is one of our most important focus areas and we regularly monitor how things are going. In 2018, among something which we will work a lot with moving forward. other things, we recruited a working environment engineer During the year, Ikano Group’s four new leadership skills were to be able to do even more. launched. Ikano Bostad’s management team then identified 8 During the year, long-term sick leave among our employees prioritised leadership behaviours based on these. We will work increased. This is something that we see as being serious and with these moving forward and they will be part of the work we will work hard to improve on it. We work with educating focusing on our increased growth. Ikano Bostad’s leadership and communicating a great deal regarding physical and programme has also been reviewed and will continue to be psychosocial health. We also educate in how we can work more individualised. more efficiently and more structured, and we implement All Ikano Bostad employees took part in a performance various health initiatives such as courses in mindfulness and review during 2018. stair counting competitions in our offices. We also sponsored participation in various races and have signed agreements with various physical training centres.

28 | Ikano Bostad – Sustainability report 2018 IKANO BOSTAD’S LEADERSHIP SKILLS CARE INSPIRE DRIVE DELIVER Driven

AGE DISTRIBUTION OF EMPLOYEES*

<30 year >50 year Deliver 93 (105) 108 (124)

POTENTIAL AND ACTUAL INCIDENTS 2018 The reporting of potential and actual incidents has 30–50 year increades compared with 2017, likely as it has become 257 (261) simpler to report with the help of our app.

*Including Brantås Bygg AB

Incidents Potential 50* (42) incidents 64 (54)

*Including subcontractors, 19 incidents, and Brantås Bygg AB Inspire

Care STAFF TURNOVER 2018*

<30 years 30–50 years >50 years Men Women

Total no. of employees 180101 118 258 107 317 166

Number starting 8 27 7 27 15

Number leaving 14 39 15 54 14

Employee turnover 8,3 % 11,0 % 6,3 % 9,0 % 9,2 %

Total employee turnover 9,3 % (14,9 %)

*Including Brantås Bygg AB

Ikano Bostad – Sustainability report 2018 | 29 Climate

Climate impact – our most important issue Reducing our climate impact is one of our most prioritised areas. During 2018, we decided our path moving forward towards reduced climate impact.

During the year, we decided to affiliate the industry’s planning together with the energy requirements in our roadmap, which aims to make the industry climate construction projects result in lower energy consumption per neutral by 2045. The work is led by Fossilfritt Sverige and person as well as contribute to lower housing costs. Sveriges Byggnadsindustrier. Energy-efficient real estate portfolio Strategic climate work In order to reduce our climate impact, we are working a lot In 2018 we took the step towards using a digital tool when we with the efficiency of our real estate portfolio. Since we started measure our climate impact. We also started work on mapping our energy efficiency work in 2014, we have reduced the our climate impact and included new aspects to measure. climate impact from our property portfolio from 23 kg CO2e/ 2 2 Among other things, we began to measure the climate impact m to 9 kg CO2e/m . of built-in materials by measuring what the climate impact of In the future, we will work more with cutting power peaks the concrete in our housing frames is. and trying to even out power output. It saves both money and is beneficial for the climate. Power peaks occur when electrical Space-efficient = climate smart appliances are used simultaneously. Power output then When we build new homes, we always have the requirement becomes the highest. Power peaks can result in higher power to build as space-efficient as possible. This also means the bills and high loads on power grids which can cause power results are usually the most climate smart. Space-efficient outages, and that energy consumption in general is higher.

PLANET • Consumption of energy and fuel. • Renewable energy. • CO2 emissions from our operations.

30 | Ikano Bostad – Sustainability report 2018 Fuel, business travel (scope 3) 544 (740,1) Water (scope 3) 9 (8,1) Fuel, machinery (scope 1) 215 (114,2) Property electricity (scope 2) 989 (334) Heating and hot water (scope 2) 5 495 (5 995) Concrete (scope 3, standard value) 11 490 (not measures 2017)

Ton equivalent carbon dioxide (CO2e)

11,490

544 740.1 9 215 8.1 Fuel, business travel (scope 3) 544 (740,1) 114.2 989 Water (scope 3) 9 (8,1) 334 Fuel, machinery (scope 1) 215 (114,2) Property electricity (scope 2) 989 (334) Heating and hot water (scope 2) 5 495 (5 995) Concrete – half of the 5,995 construction process TOTAL CLIMATE EMISSIONS Concrete (scope 3, standard value) 11 490 (not measures 2017) KLIMATUTSLÄPP TOTALT climate emission 5,495 The table shows the total climate emissionsTon equivalent carbon dioxide (CO2e) asTabellen a result visar of Ikano Ikano Bostad’s Bostads business.* totala klimatutsläpp per år. 11,490 e 2 e Fuel, business travel (scope 3) 544 (740,1) 2 Water (scope 3) 9 (8,1) Fuel, machinery (scope 1) 215 (114,2) Property electricity (scope 2) 989 (334) Heating and hot water (scope 2) 5 495 (5 995) 544 Concrete (scope 3, standard value) 11 490 (not measures 2017) 740.1 9 215 Ton equivalent carbon dioxide (CO e) 8.1 2 114.2 989 334 Total 7,191 ton CO Total 7,252 ton CO 5,995 11,490 5,495

e 2 e 2

544 740.1 9 215 2017 2018 8.1 114.2 989 334 Total 7,191 ton CO Total 7,252 ton CO 5,995 Betong 5,495 *The figures for 2018 include more construction projects than for 2017, and that we now own our office in Malmö,

which has increased the amount of real estate. e 2 8 (19) e 2 2017 2018 20,070 (15,506) Betong All our housing is planned for an energy use of 67.5 kWh/year or less. Total 7,191 ton CO Total 7,252 ton CO 6 7. 5 kWh

8 (19) ENERGY CONSUMPTION 1,316 (364) Purchased energy includes heating, hot water, property electricity, construction electricity, fuel for transport and machinery.* 9 % (12 %) of our tenant- 2017 20,070 2018 owned projects are planned 3,354(15,506) (2,388) for the use of solar cells. Fuel 8 (19) 67,164 13,135 Property electricity 20,070 (15,506) (64,528) (11,842) Heating/hot water 67 164 (11 842)

Renewable: Non-renewable: Betong 87,2439 (83,816) % MWh 17,806 (15,594) MWh

1,316 (364)

3,354 (2,388) Fuel 8 (19) 67,164 13,135 Property electricity 20,070 (15,506) (64,528) (11,842) Heating/hot water 67 164 (11 842) *The figures for 2018 include more construction projects Renewable: Non-renewable: than for 2017, and that we now own our office in Malmö, 87,243 (83,816) MWh 17,806 (15,594) MWh which has increased the amount of real estate.

Ikano Bostad – Sustainability report 2018 | 31 Climate

Renewable energy Our impact We will continue to work on increasing our use of renewable Our impact is both direct and indirect and is found in all stages energy sources. For example, we have always used renewable of the value chain. Our major impact is in the construction electricity in our construction projects. This is where much of production chain in the form of purchases of concrete and our climate impact is, but we can improve that by always using steel, when we buy electricity and heating for our rental renewable electricity. properties and through the choices of our tenants in terms of In 2018, Ikano Bostad affiliated Fossilfritt Sverige’s Solar e.g. electricity contracts. Transports to and from our offices, Challenge. The solar challenge means that we have set the construction sites and managed properties also constitute goal of installing solar cells and producing our own solar a large part of our impact. power by the end of 2020. We have set the goal of achieving 100 kW until then.

OVERALL PERCENTAGE RENEWABLE ENERGY Purchased heating, property electricity and fuel for vehicles/machinery.

85 % 85 % 83 %

80 % 79,8 %

75 % 75 %

70 % 2015 2016 2017 2018

ENERGY PERFORMANCE, APARTMENT BLOCKS 2017 District heating and electricity corrected for a normal year.

kwh/sqm Electricity 250 kwh/sqm Electricity 250 District heating District heating

200 185 180 200 185 175 21 180 175 21 21 165 21 21 164 20 21 165 150 159 154 164 159 20 150 145 154 CLIMATE FOOTPRINT, 145 100 APARTMENT BLOCKS 100 Emissions in kilograms of carbon Since 2014, we have dioxideequivalents per square m. reduced the climate 50 impact from our rental 50 2018 9kg CO e/m2 2 properties by 60 %. 2017 11 kg CO e/m2 0 2 2015 20160 2017 2018 2 2015 2016 2017 2018 2016 13 kg CO2e/m 2015 18 kg CO e/m2 Corrections according to SMHI degree-days. Since the property portfolio 2 varies over time the key ratio is calculated on a monthly basis for the specific 2014 23 kg CO e/m2 area and then totalled to achieve an annual key ratio. 2 60% 32 | Ikano Bostad – Sustainability report 2018 Use of resources

Reduced use of resources

How we use resources responsibly and reduce the use of resources through circular flows and increased digitisation are some of the industry’s most important challenges. During the year, we began to circulate landfill and use digital aids in our work to reduce our climate impact.

When we plan for new homes and develop our property Increased focus on digitisation portfolio, we always look at what opportunities exist when Digitisation is an important part of readjusting to sustainable it comes to the notion of a shared economy, digitisation operations. In 2018, we began to use a digital platform for the and circular flows. For us, it goes hand-in-hand with reporting and monitoring of our sustainability work. This makes sustainability development. it possible for us to more easily see where our greatest impact and where we should prioritise our efforts. We will begin with Circular landfill our climate impact and develop our roadmap to reduce it. One of the industry’s major challenges is how to create circular flows and that there should be no products and materials that Sharing economy cannot be reused in our cycles. We look at what it entails for We try to make it easier for our customers to make sustainable us and how we will work to readjust. During 2018, our new land choices in everyday living. One way is to create the conditions department started work on restoring the nature at the old for our tenant-owned apartment customers and rental tenants gravel pit in Ältadalen in Nacka, just outside Stockholm. The to share areas, things and functions that are not often used. gravel pit will be filled with excavation landfill from both our Car and bicycle pooling, outdoor gyms, common gardening construction projects as well as other ones, corresponding to plots and gardening tools are some examples of how we work approximately 600,000 tonnes of material for recycling. After to simplify for a sustainable lifestyle. all is completed, we plan to build terraced homes on the land.

Our circular excavation landfill correspond carbon dioxide uptake from 221,046 trees over the course of one year.

PLANET • Increase re-use and recycling of materials and waste. • Phase out hazardous chemicals in our materials and always use SundaHus for materials selection in building production and property management. • Reduce use of resources and work towards a circular economy through, e.g., new business models, a sharing economy and digitalisation.

Ikano Bostad – Sustainability report 2018 | 33 Use of resources

Choose materials with care management. The purpose is to use SundaHus in an efficient We work actively with selecting materials and always choose manner and make better choices. We have trained both staff with care. One of our sustainability goals is that there should be internally at Ikano Bostad and external contractors who work no dangerous chemicals in our material and product choices. with our ROT renovations. Our goal is that at least 95 percent of our selected products We also continued with the Swedish Environmental Protection and materials should be A- or B-rated according to SundaHus. Agency’s building pallet initiative for increased recycling and recycling of building pallets. We will continue with this in During the year 2019. In the future, we will also review how we can reduce the In 2018, we have developed new routines and trained in how proportion of packaging upon delivery of furnishings to our we use SundaHus in our housing production and property construction sites.

ENVIRONMENTAL TARGETS – PRODUCTION The figures include three of our projects completed during the year. This year, we have chosen to review how we report and will report waste for house construction, since this is something we can influence. More information can be found in the GRI index.

Environmental targets Unit 2018 – production

Waste sorted by material Share 63 %

Total amount of waste kg/GFA 32 kg

Landfill Share 4 %

Mixed Share 11 %

Combustible Share 22 %

ENVIRONMENTAL TARGETS – PRODUCTION

Environmental targets 2018 2017

Materials and chemicals At least 95 % of products used in 84 % 86,6 % production must be of SundaHus Class A or Class B.

ENVIRONMENTAL TARGETS – PROPERTY MANAGEMENT

Environmental targets 2018 2017

Materials and chemicals Not At least 95 % of products used in renova- 97 %* tion projects and operations must satisfy measures requirements for SundaHus Level B.

*Includes a project.

34 | Ikano Bostad – Sustainability report 2018 Barkarbystaden, Stockholm

Ikano Bostad – Sustainability report 2018 | 35 Board of directors and management team

Ikano Bostad’s board of directors: Lars Thorsen, board member, CEO Ikano Group I Mats Håkansson, board member, VP Ikano Group I Ylva Sarby Westman, board member, Deputy CEO and Chief Investment Officer Kungsleden I Anna Werntoft, board member, CEO Stratiteq I Daniel Skoghäll, Chair of the board I Marie Gällstad, board member, Head of Group Communication I Daniel Landin, board member, employee representative (not in the picture)

Ikano Bostad’s management team: Roger Johansson, CFO I Linda Leppänen, Head of Residential Development Stockholm North I Eva Asu, head of IT I Maria Hagman, Head of Residential Development South/West I Robert Jaaniste, CEO I Malin Olander, Head of Strategic Business Development (temp) I Mikael Hallengren, Head of Production I Pirjo Unnerstad, head of HR I Josefine Wikström, Head of Residential Development Stockholm South I Sverker Andreasson, chef för produkt- och verksamhetsutveckling I Charlotte Kjellberg, Head of Communication I Christian Mariager, Head of Property Management

36 | Ikano Bostad – Sustainability report 2018 Ikano Bostad – Sustainability report 2018 | 37 G ustavsberg, Stockholm Auditor’s report on the statutory sustainability report

To the general meeting of shareholders in Ikano Bostad AB, corporate identity number 556289-0961.

Engagement and responsibility The Board of Directors is responsible for the preparation of the sustainability report 2018 and that it has been prepared in accordance with the Annual Accounts Act.

The scope of the audit VOur examination has been conducted in accordance with FAR’s auditing standard RevR 12. The auditor’s opinion regarding the statutory sustainability report. This means that our examination of the statutory sustainability report is different and substantially less in scope than an audit conducted in accordance with International Standards on Auditing and generally accepted auditing standards in Sweden. We believe that the examination has provided us with sufficient basis for our opinion.

Opinion A sustainability report has been prepared.

Malmö, 25 april, 2019 Deloitte AB

Maria Ekelund Authorised Public Accountant

38 | Ikano Bostad – Sustainability report 2018 Read more at ikanobostad.se about how we simplify for sustainability.

Text: Ikano Bostad

Graphic design: Ikano Bostad

Photo: Magnus Grubb, Ola Högberg, Bosse Lind

Annette Jansson-Bougt, Paulina Westerlind, Ikano Bostad

Illustrations: WEC 360, Givakt Box 1304, 172 26 Sundbyberg • +46 10 330 44 00 • ikanobostad.se