Veidekke Asa 2

CSR Report 2012 Corporate Social Responsibility (CSR) report 2012 VEIDEKKE ASA 2

Content

Corporate Social Responsibility 3 Introduction by the President and CEO 3 Governing documents 5 Global Reporting Initiative (GRI) 7 Social conditions: «School on site» 8 HSE 10 – Next Generation HSE 12 – Sickness absence 13 – Job satisfaction and well-being 14 Ethics 16 Diversity 18 Environment: Environment in Swedish 20 Environmental strategy 22 Energy consumption 24 Finance: Motivated employee-owners 26 Finance and value-creating 28 Transparency and dialogue 30 Employees 32 Customers 35 Suppliers 36 Investors 37 Authorities 38 Corporate Social Responsibility (CSR) report 2012 VEIDEKKE ASA 3

CSR Introduction by the President and CEO

In recent years we have seen something of a revolution in the focus on energy and environmental issues in the building and construction industry. Homes and commercial buildings are becoming ever more energy-efficient and environment-friendly, and now we even have buildings that produce their own electricity. Not very long ago many people would have written this off as utopian dreaming.

In my view, developments in the area of initiatives and business opportunities, in turn corporate social responsibility have been spurring the creation of new technologies and a key driver behind this green revolution solutions in our industry. After many years in in our industry. These days, corporate the industry, it is exciting to see how this area social responsibility is not only a matter of has developed in recent years. Join me on a contributing to improvements in society, quick look back. but also involves recognising the business potential inherent in the development of eco- CSR in practice friendly solutions, for example. Environmental Although the concept of corporate social challenges have paved the way for new responsibility (CSR) has evolved with time, Corporate Social Responsibility (CSR) report 2012 VEIDEKKE ASA 4

I would say that Veidekke has been aware an enormous demand for homes, schools, of its role in the broader context since its hospitals and infrastructure. In order to be able establishment in 1936. We call this CSR in to meet these challenges, we must maintain practice. In 1945, when Norway was in a and further develop expertise in the building deep recession after the war, corporate social and construction industry and, not least, responsibility was about rebuilding the nation. we must dare to think differently. The social At that time, it was an important overall responsibilities in this area are not the duty of objective for Veidekke – and indeed it still is – companies in the building industry alone, but to act with integrity and to do the right thing. must be borne by the whole of society. Through the 1960s and 1970s, we were one of the first companies in Norway to offer our As already mentioned, HSE and environmental employees the opportunity to become co- concerns will be two main priority areas for owners of their own company. Today, 50 per Veidekke in the years to come. If developments cent of Veidekke’s employees own shares in in the environmental field continue at their the company, which is unique in Europe. We current pace, in ten years almost 10 per cent are convinced that by involving our employees of buildings will produce and deliver energy. in this way we are nurturing increased loyalty An important prerequisite for that to happen and commitment to the company and ensuring is that our customers too recognise the long-term value creation for the company and importance of this and are willing to make our shareholders. investments that yield long-term benefits. Another important decisive factor is the The late 1980s and early 1990s brought a people in the organisation and that they new focus on occupational health, safety have the opportunity to develop. Training and and working environment issues (HSE), and professional development will therefore also Veidekke was then – and still aims to be – a be an important focus area for Veidekke in the pioneer and leader in this area. Over the last future. We at Veidekke will do our utmost to twenty years we have witnessed a marked ensure that training and skills development improvement in our health and safety record, among new recruits and other employees which is very gratifying. However the building remain a top priority. At the same time, we are and construction industry remains a high-risk seeing that the increasing internationalisation business, and we work every day to improve of the building and construction industry is in this area. Through the Next Generation creating new challenges, primarily in terms of HSE programme, we have set ourselves an language and cultural differences. Therefore, a ambitious and important goal of preventing continued clear focus on ethics, occupational four out of five injuries by 2015 and no fatalities health and safety will be very important in the on our sites. A main goal for the building and years ahead. construction industry as a whole must be zero injuries in the future. But let us return to the topic of homes and buildings that produce their own electricity The 2000s saw a serious focus on global in the future. Today CSR is not only a matter environmental challenges, and Veidekke was of ethics, health and safety, and employee a pioneer in developing energy-efficient and involvement, it is also a source of innovation environment-friendly homes and buildings. In and new ideas. In recent years we have seen Norway, buildings currently account for 40 per numerous of examples of how challenges cent of all energy consumption, 40 per cent of facing society, not least in terms of the all materials used, and about 13 per cent of the environment, have led to new solutions and country’s total CO2 emissions. There is little products developed in partnerships between doubt that the industry has an important social research institutes and industry. When exactly responsibility in this area, a responsibility that power-generating homes and buildings will we at Veidekke take very seriously. A good be the norm here in Norway I will not try to example of this is our environmental project in predict. What I do know is that Veidekke will Esbjerg in Denmark. Here we are developing continue its corporate social responsibility Denmark’s largest energy-positive building, work unabated – whatever the future brings. which will have the country’s second-largest solar energy plant on its roof. In Stockholm, we completed the Nordic region’s first Swan- labelled residential block in 2011.

CSR into the future It took Norway 37 years to grow from 4 million Terje R. Venold, President and CEO to 5 million inhabitants, but it will only take us 18 years to go from 5 million to 6 million. This rapid population growth will create Corporate Social Responsibility (CSR) report 2012 VEIDEKKE ASA 5

CSR Governing documents

Veidekke has established a number of guidelines and models that govern the company’s behaviour in society, and the company works continuously to improve and implement these throughout the entire organisation.

Veidekkehuset (“the Veidekke House”) is partnerships with our customers, employees, our management and behaviour model and management and suppliers – and with the symbolises our corporate culture. It helps communities in which we operate. define the direction of our daily work, including our work on CSR. In Veidekke ethics consists of four main elements:

• Our individual and collective responsibilities • A focus on transparency, dialogue and discussion • Consistency in our work • Specific programmes for ethical guidelines and rules

Veidekkehuset and ethical guidelines Ethics is included in Veidekke’s introductory Our core values – professional, honest, courses, project courses, management enthusiastic and ground-breaking – form development training and other courses and the foundation for how we work every day, gatherings. We also have an interactive ethics regardless of the type of work. portal for our employees – the Ethics Portal Another important element in Veidekke’s Veidekkehuset – through which we provide corporate philosophy is value-creating training and guidance for dealing with ethical Corporate Social Responsibility (CSR) report 2012 VEIDEKKE ASA 6

dilemmas. We work continuously to maintain • OECD Guidelines for Multinational the high level of focus on ethical dilemmas Enterprises – As early as 1976, that we have managed to achieve in Veidekke. the OECD prepared guidelines for As a major purchaser of goods and services, multinational enterprises and has Veidekke has ample opportunity to influence thus been a pioneering institution in our suppliers to work more systematically on corporate social responsibility. Veidekke’s their corporate social responsibility. All our commitments contribute to sustainable suppliers must now commit to following our development through economic, safety and environmental regulations. They environmental and social progress. must also ensure that any subcontractors they Read more about the guidelines here. use follow the same standards. The ongoing development of our procurement principles • The UN Universal Declaration of Human will continue in 2013. We have already Rights – This means that no one should developed a policy for purchasing goods and be discriminated against due to race, services from abroad, which mainly covers sex, language, religion, political or the use of sub-contractors, but also covers other opinion, national or social origin. individual purchases from abroad such as from Read more about the declaration here. our regular kitchen products supplier in Italy. Veidekke uses the third generation and Good corporate governance is a key part of a currently most recent version of the company’s accountability. Veidekke bases its internationally recognised GRI standard (Global management reporting on the Norwegian Code Reporting Initiative) to organise our work on of Practice for Corporate Governance. As part CSR. In the development of relevant goals, we of our efforts to integrate social responsibility have also used the new ISO standard on social into our core business, important social and responsibility, ISO 26000. A new version of environmental parameters are anchored with the GRI guidelines (G4) is expected in 2013, our Board and included in the Board’s Report. and we will revise our goals and our reporting according to this. Through a global framework agreement with the Norwegian United Federation of Trade Unions, the Norwegian Union of General Workers (NAF) and the International Federation of Building and Wood Workers (IFBWW), Veidekke has pledged to work for continuous improvements in the areas of working conditions, industrial relations, health and safety in the workplace and the environment. Under this agreement, Veidekke actively adheres to several recognised international standards:

• The ILO Declaration on Fundamental Principles and Rights at Work includes specific requirements concerning freedom of association; the right to collective bargaining; measures against discrimination, forced labour and child labour; measures to ensure workers’ health, safety and working environment; and decent pay and working conditions. Read more about the declaration here. Corporate Social Responsibility (CSR) report 2012 VEIDEKKE ASA 7

Global Reporting Initiative (GRI)

Relevant More GRI codes Description Priority goal Status information 1.1–1.2 Declaration from the CEO Develop SWOT analysis during 2013 Goal 1: In planning stage. Page 3 About Veidekke in 2.1–2.10 Organisational profile Annual Report 2011 3.5–3.13 Scope and limitations 4.1–4.6 / Operational leadership and Page 5 4.8–4.10 management 4.12–4.17 / Stakeholders and lobbying Develop a sponsorship strategy Goal 1: Achieved in 2012. Page 30 SO5–SO6 Develop stakeholder analysis and action plan in 2013 Goal 2: In planning stage FINANCIAL PERFORMANCE Profit margin before tax > 5 per cent for Construction and > 6.5 per Goal 1: Not achieved cent for Industry Return on capital invested > 15 per cent for Property EC1–EC5 General financial indicators Financial performance A dividend of at least 50 per cent of profit for the year. Goal 2: Not achieved · At least half of the employees shall hold a combined stake of Goal 3: OK (2012) Goal 4: OK at least 15 per cent in the company. (2012) SOCIAL PERFORMANCE LA1 General employment Annual Report 2012 Goals 1 and 2: In planning and Total injuries on sites to be reduced by 80 per cent towards 2015. implementation stage LA7 / LA10– HSE: Injuries, sickness and Long-term sickness absence less than 5 per cent by 2015. Page 10 LA12 training practices Zero fatalities. Goal 3: Not achieved (2012) Implementation of overall HSE strategy 2012–2015 Goal 4: In implementation stage Diversity and equal oppor- In the period 2012–2015, minimum 30 per cent of new recruits on LA13-LA14 Page 18 tunities the trainee scheme should be women Goal 1: Achieved (2012) Investment and procure- HR1–HR2 Updated procurement strategy 2012–2015 Goal 1: In implementation stage Page 5 ment procedures Goal 1: OK Goal 2: OK Goal 3: In Goal of zero (0) corruption or price-fixing cases implementation stage SO2–SO4 / Corruption and competi- 95 per cent of all employees must complete the online ethics Page 16 SO7–SO8 tion-inhibiting activities training programme. Implement training programme in ethics and regulatory compliance All new Norwegian own-account property projects shall be delivered Health and safety for PR1 with improved indoor environmental quality approved by NAAF (The Goal 1: OK (2012) Page 22 customers Norwegian Asthma and Allergy Association). Goal 1: Not achieved (2012) Goal 2: In planning stage Goal 3: Take in > 70 new trainees in 2012. Achieved (2012) Goal 4: In implementation stage Construction industry SOE Page 32 recruitment Establish a Scandinavian trainee scheme within three years. Have > 200 young apprentices in 2012. Continue the School on Site programme in Oslo and Akershus; carpentry, concrete and masonry ENVIRONMENT Goal 1: In implementation Create greater demand for housing built according to the low-energy stage Goal 2: In implementation Materials and energy Swan-label concept EN1–EN8 stage Page 24 consumption Develop at least one new project that qualifies for the strict Future- Built quality criteria for "model projects" before 2015. Goal 1: In implementation Maintain position as one of the leading Carbon Disclosure Prosject stage Goal 2: In implementation (CDP)-reporting contractors in the Nordic region stage Goal 3: OK (2012) EN16–EN24 Emissions and waste Gradually increase the degree of source separation on our building Page 24 sites over the next five years Contribute to the development and testing of a new type of environmental concrete with half the carbon footprint. All new Norwegian own-account property projects shall be delivered Goal 1: OK (2012) Goal 2: In plan- with improved indoor environmental quality approved by NAAF (The ning stage Goal 3: OK (2012) Measures to minimise en- Norwegian Asthma and Allergy Association). EN 26 vironmental impacts from Development of the first low-energy Swan-labelled residential block Page 22 products and services in the Nordic countries All new own-account property projects in Sweden to be built according to the low-energy Swan-label concept. Corporate Social Responsibility (CSR) report 2012 VEIDEKKE ASA 8

Social conditions School on site

Combining schooling with practical work slashes the drop-out rate from vocational training. “Getting a place on the School on site programme is like winning the lottery,” says Brita Schatvet, a senior adviser at Akershus County Authority.

Veidekke established the School on site says Schatvet. “The School on site programme scheme in 1997. Back then, the objective of gives students who have previously struggled the project was to encourage recruitment of to finish upper secondary school and possibly skilled workers, especially in concrete. even dropped out, a second chance at getting “The starting point for School on site was an education,” she adds. that the building and construction industry in Norway always had problems finding enough Bringing the classroom to the building skilled workers in the fields of reinforcement site and concrete. Veidekke decided to take In Akershus County, Veidekke collaborates responsibility and do something about it, says with Jessheim Upper Secondary School, and Asle Hermansen, the manager of the School the target group is young people aged 18 to 23 on site programme and one of the driving who have not previously completed vocational forces behind the project. training in building trades. This year’s group The target group for the project was people consists of 20 students. To ensure the most aged 19–40 years who, for various reasons, practical approach, the classroom has been were struggling in the labour market. The moved out of the school and on to the building School on site project was an instant success, site, specifically Veidekke’s construction site and has given new opportunities to many at Eventyrtunet in Lørenskog. “By having the within the building and construction industry. classroom on the building site, the students Today Akershus County and the City of Oslo get a realistic impression of what it is like provide funding for one upper secondary being a skilled worker, making it easier for classes each. “From our point of view, it is very them to translate the theory they are taught positive that Veidekke has taken this initiative,” into practice,” says Hermansen. Corporate Social Responsibility (CSR) report 2012 VEIDEKKE ASA 9

The students on the programme in Oslo are expanded. With the strong population growth enrolled at Bjørnholt School and are affiliated that Norway is currently experiencing, the with Veidekke’s project at Marienfryd. The building and construction industry will need target group here is pupils aged 16 to 21 many thousand new skilled workers to build years who have either not started or not had homes, schools and hospitals in the coming the opportunity to complete upper secondary years. Recruitment and development of skills school. The Oslo class has 18 students this are therefore essential. year, and the feedback so far has been very positive. “If Norway continues growing at its current rate, more young people need to choose “I’m really happy. School on site suits me building and construction at upper secondary much better than normal upper secondary school. In this context, School on site is an school, since the work is much more practical. investment for the future, since the project The teachers give us really good follow-up, helps increase the number of students who and a job at Veidekke would be a great career complete the vocational training programme,” move and opportunity,” says Andreas Ruud, says Hermansen. one of the students at Marienfryd.

“An investment for the future” Veidekke hopes to continue the School on site project in the future, and would like to see it Corporate Social Responsibility (CSR) report 2012 VEIDEKKE ASA 10

Social conditions Occupational health, safety and the working environment

Occupational health, safety and the working environment (HSE) is – and will remain – one of the most important priority areas in Veidekke, and our overall goal is an injury-free workplace. In 2012 we have continued to work intensively on the project “Next Generation HSE”, with a constant focus every day on increasing risk awareness and understanding among all our employees.

The building and construction industry is a high-risk business. This means that Veidekke as an employer has an especially important responsibility to ensure the fewest possible injuries at the workplace. Unfortunately, 2012 proved to be a challenging year in this respect. In 2012 we suffered three fatal accidents. Such events are a stark reminder of the importance of our HSE work and show that we still have a good way to go to achieve our goal of zero injuries.

The Group’s injury figures for 2012 were not satisfactory. The lost-time injury rate (number of injuries per million hours worked) rose in Corporate Social Responsibility (CSR) report 2012 VEIDEKKE ASA 11

all the Scandinavian countries compared with An injury-free work site requires involvement 2011. In 2012 Norway had an LTI rate of 7.4 throughout the value chain, and Veidekke (4.7); for Sweden the figure was 12.4 (11.6), therefore works very closely with our while Denmark had an LTI rate of 10.0 (7.0). suppliers in the day-to-day HSE work. The cumulative LTI rate for the Group as a Through participative leadership and joint HSE whole was 8.4, compared with 6.1 in 2011. meetings, a stronger sense of ownership of the processes is created on our sites, The building and construction industry is by which helps reduce potential risks and nature a high-risk business, and continuous prevent accidents. At the same time, all our risk analysis is therefore essential in all suppliers are obliged to follow our safety and Veidekke’s projects. We are working to reduce environmental regulations. injury incidence among our employees and our subcontractors alike. At the same time, all our employees must assume responsibility and manage the risks in a good way, and to that end, we have decided that safety should be a topic of daily discussion on construction sites. We also find that increased use of foreign labour can bring challenges in terms of language barriers and different safety cultures. Veidekke is therefore working to overcome these challenges in the best – and safest – way. Corporate Social Responsibility (CSR) report 2012 VEIDEKKE ASA 12

Social conditions “Next Generation HSE”

Work on the Next Generation HSE project started in 2011, and the main goal is to make Veidekke an injury-free workplace. A milestone target in this process is fewer than 100 injuries in 2015, which means that four out of five injuries must be prevented, with a focus on the most serious.

Central to this work is ensuring increased Each year Veidekke awards a special HSE awareness and understanding of risk among Award. In 2012 this prestigious prize was all the people working on our sites – including awarded to the contractor M. Kristiseter AS – subcontractors’ employees. This means that a subsidiary of Veidekke – for the company’s everyone must understand the risks, learn HSE work in connection with the facade to deal with the potential hazards and follow renovation project for Ålesund City Hall. the safety routines on site. Safety training is therefore high on the agenda at Veidekke, for new recruits and established employees alike and also for subcontractors, not least through our various management programmes.

An example of an initiative to raise awareness in this area is the annual Safety Week, which was held for the second time in 2012. The goal of Safety Week is to create greater awareness about Veidekke’s occupational health and safety work among all our employees, including subcontractors. The focus this year was on risk perception and barrier thinking, and the event created great enthusiasm and commitment among the employees. Corporate Social Responsibility (CSR) report 2012 VEIDEKKE ASA 13

Social conditions Sickness absence

Prevention of sickness absence is a high priority in Veidekke. We have good procedures for monitoring employees’ sickness absence, and the majority of our managers with personnel responsibility have completed a course in sickness absence follow-up organised by the company’s occupational health service in Norway.

Veidekke strives to maintain a close, In Norway, accumulated sickness absence constructive dialogue with employees on sick decreased from 5.6 to 4.9 per cent, while in leave, in order best to facilitate the prompt Sweden it was 3.6 per cent (3.7 per cent). return to work of people on sick leave. In 2012 In Denmark too, there was a decrease in Veidekke experienced a welcome reduction accumulated sick leave, from 2.4 to 2.0 per in sickness absence across the entire Group. cent. Musculoskeletal disorders are the most prevalent cause of long-term sickness absence in the Group, constituting around 50 per cent of the absence. We therefore work hard to provide the best possible working conditions and conduct regular ergonomic inspections at the building sites. After musculoskeletal disorders, the second most common cause of long-term sickness absence is mental disorders. Corporate Social Responsibility (CSR) report 2012 VEIDEKKE ASA 14

Social conditions Job satisfaction and well-being

In order for Veidekke to be perceived as one of the most attractive companies in the building and construction industry, there must be high levels of satisfaction and well-being among our employees.

To this end, Veidekke’s occupational health maximum use of the tool or machinery during service in Norway conducts an annual a working day. In this way, we can avoid employee satisfaction survey, which has employees developing vibration injuries in revealed that we continue to score high in their fingers. The vibration calculator has been this area. In 2012, employee satisfaction was very well received among our employees. 5.7 on a scale of 0 to 7 (where 7 is best). Our score on the issue of planning and preparation Since 1994 Veidekke in Norway has enjoyed was 5.1, and on availability of good tools good collaboration with AKAN (the workplace and equipment, the score was 5.6. This is advisory centre for issues relating to alcohol, unchanged from last year, and we are working drugs and addictive gambling), and AKAN systematically to improve this figure. has been incorporated in the company’s management system. Through the AKAN Preventive health work system, employees with alcohol or drug With a view to preventing musculoskeletal problems or who are struggling with gambling disorders on site Veidekke launched a vibration addiction can get help before they break calculator in 2012. The calculator measures Veidekke’s guidelines. On average there are the level of vibration in hand-held tools and around 15 employees each year who sign machinery, allowing workers to calculate the an AKAN agreement, the majority of whom Corporate Social Responsibility (CSR) report 2012 VEIDEKKE ASA 15

have alcohol problems. Half of the people for apprentices and their mentors. The jury on AKAN agreements seek help for their also highlighted the fact that 40 per cent of addiction themselves. Veidekke is currently all AKAN agreements in Veidekke are entered in the process of revising its AKAN policy and into as a result of the employees themselves guidelines, and the goal is to implement them asking for help, which is very unusual in the in all our countries during the course of 2013. Norwegian labour market. We are very proud to have received this award and will continue to In 2012, Veidekke received the AKAN award work to offer our employees the best training for its efforts to prevent substance abuse and support through the AKAN system. and addictive gambling among it employees. The jury, which consisted of the Norwegian Confederation of Trade Unions (LO), the Confederation of Norwegian Enterprise (NHO) and Norwegian public authorities, attached particular importance to the fact that Veidekke has integrated AKAN into its internal control system and that the company provides systematic training in AKAN work Corporate Social Responsibility (CSR) report 2012 VEIDEKKE ASA 16

Social conditions Ethics

Veidekke constantly strives to challenge and discuss ethical dilemmas in the building and construction industry. With a view to systemising our work in this area, we introduced the Ethics Portal Veidekkehuset four years ago. This is an interactive online tool for ethical dilemma training where employees can practise dealing with different dilemmas individually or in groups.

The Portal consists of a variety of tools, compliance with the competition rules (our manuals and dilemma case studies to help competition law policy) which was integrated users make the correct decision when faced into the Group’s management systems in with an ethical dilemma. The Portal is available 2012. The objectives of the policy are to: over the Internet to anyone who registers as a user, and both internal and external resources • Inform the employees about the main can seek training and guidance here for dealing requirements the different competition with ethical dilemmas. rules stipulate for our operations and The Ethics Portal is currently used in the requirements that Veidekke sets for management training programmes, processes itself, its employees and its partners. and strategy work. It has been used in Veidekke sets stricter requirements than management meetings and apprentice are stipulated by the law in some areas gatherings, and separate ethics workshops where the statutory requirements are so have been held at Veidekke’s in-house training unclear that a safety buffer is regarded as centre, Veidekkeskolen. necessary.

Competition law policy • Prevent violations of the competition Veidekke has developed a range of rules by Veidekke. Integrity is one of our programmes, seminars and courses to enable core values and is a natural element in everyone at Veidekke to make the right ethical competition situations too. choices. We have also developed a policy for Corporate Social Responsibility (CSR) report 2012 VEIDEKKE ASA 17

• Advise employees on how to behave Anti-corruption in Veidekke in the event of an inspection by the Transparency International’s annual Corruption competition authorities. Veidekke and Perception Index (CPI) for 2012 shows the company’s employees shall always that, compared with the rest of the world, collaborate constructively and actively the Nordic countries enjoy relatively minor with the competition authorities on corruption problems, but that Norway is the efforts to promote healthy competition. most exposed of the Nordic countries. The building and construction industry has Veidekke’s programme for correct previously been described as an industry market conduct – the Compliance with corruption related challenges, and we Programme are constantly striving to maintain high ethical Veidekke has developed a training programme awareness among all our employees and our for correct market conduct, which is carried partners. We believe that the combination of out in each individual unit. The goal is to ensure our Code of Conduct, ethical dilemma training that everyone who completes the training is and a good whistleblowing system forms a familiar with the laws, regulations and internal good basis for preventing any attempt at illegal guidelines that must be followed in the conduct actions. of business. A key element in the training programme is discussing various issues that the employees may encounter in their day-today work and how they ought to be handled. The purpose of this work is to ensure that all Veidekke employees make wise, independent choices in their everyday work. Since August 2011, some 2,000 employees have completed the training, which is continuing in 2013. Corporate Social Responsibility (CSR) report 2012 VEIDEKKE ASA 18

Social conditions Diversity

The Scandinavian countries are changing rapidly, providing both opportunities and challenges for Veidekke. We believe that the key to ensuring our future competitiveness is reflecting society as far as possible in terms of gender, cultural background, religion, etc.

We therefore work continuously to recruit more women and people from minority groups to our industry, for example, through close collaboration with schools, universities and colleges.

At the end of 2012, Veidekke had 6,253 employees: 4,599 in Norway, 1,232 in Sweden and 422 in Denmark. Of these, 631 were women, which is a slight increase compared to 2011. This is a welcome development, especially in view of the fact that the building and construction industry is traditionally a male-dominated industry. The goal is to increase the proportion of women among skilled workers and administrative staff alike. In 2012, Veidekke had 102 female skilled workers and 529 female administrative staff. Corporate Social Responsibility (CSR) report 2012 VEIDEKKE ASA 19

Our efforts to recruit people with ethnic reduces the number of people who take minority backgrounds have been challenging early retirement. This scheme benefits both at times, and we acknowledge that this group Veidekke and society at large. still represents too small a proportion of the workforce at Veidekke. The percentage of the population in Scandinavia with a minority background is rising, and this group is an important resource for Veidekke. Our efforts to reach and recruit from this group will continue.

Diversity in the workplace is not just about increasing the proportion of women and people from minority groups, but also about retaining our older, experienced employees in the best possible way. To this end, we have a system of extended leave with pay for employees over the age of 62 years. This helps the company retain valuable experience and expertise and Corporate Social Responsibility (CSR) report 2012 VEIDEKKE ASA 20

Environment Environment in Swedish

Veidekke aims to have the best environmental practice. Veidekke’s Swedish operations stand out in this field in terms of reducing greenhouse gas emissions and safeguarding the environment.

The building and construction industry has a Veidekke has a negative impact on the great responsibility to the environment, both environment through its greenhouse gas locally and globally. In Sweden, the building emissions related to energy use, use of non- industry accounts for approx. 35 per cent of renewable materials, waste management, and all energy consumption and around 20 per use of substances that are hazardous to health cent of the country’s total CO2 emissions, and the environment, etc. In order to minimise including use of materials. The figures for the company’s impact on the environment, the other Scandinavian countries are similar. we maintain a clear focus on these issues in At the same time, there is a huge potential every phase of our building and construction for improvements, and Veidekke works projects, from planning and engineering to relentlessly to remain at the forefront of demolition and recycling. Veidekke also works environmental sustainability. closely with its customers and suppliers in this area. “For the world community to be able to address climate change and other global environmental Sweden leading the way in challenges, it is essential that the building and environmental protection construction industry assumes responsibility. In Veidekke, Sweden has always been a Veidekke acknowledges this responsibility, step or two ahead of their Norwegian and and we do all we can as a company to reduce Danish counterparts when it comes to our own carbon footprint. It is especially minimising their own environmental impact. important to consider the environmental One of the reasons for this is that some impact throughout the entire supply chain,” Swedish municipalities, such as Stockholm, says Johnny Kellner, head of technology Gothenburg and Malmö, have very strict and environmental protection at Veidekke in energy requirements for homes, which are Sweden. Corporate Social Responsibility (CSR) report 2012 VEIDEKKE ASA 21

significantly lower than those defined in More than just eco-friendly homes the current Swedish building regulations. Veidekke’s environmental work in Sweden As a result, much of Veidekke’s pioneering does not only encompass building environmental work is tried and tested in environment-friendly homes, but also covers Sweden first, before being implemented in major regional infrastructure projects. One the rest of Veidekke. example is the environmental project “Nya gröna Stockholm” (New, green Stockholm) One good example is the TellHus concept, that Veidekke has initiated. This project aims which was developed in Sweden in 2007. to resolve some of the challenges associated The idea behind TellHus was to build climate- with the rapid population growth that is smart homes relatively cheaply by making expected in Stockholm over the next few a few simple changes, such as using years. environmentally friendly district heating, heat recovery and windows with super-insulating In this project, which is still at the ideas glass. However, the rapid developments in stage and needs approval by the Swedish environmental technology soon caught up government, Veidekke proposes establishing with the concept. an efficient regional public transport system by extending the subway network. It also In the building and construction industry, proposes reducing road traffic in the centre the development of new environmental of Stockholm by means of construction of technology has accelerated in recent years. a number of road tunnels and more bus Not so very long ago, TellHus was considered terminals in the city centre that use hybrid ground-breaking. Now we have taken another buses. “The ‘New, green Stockholm’ project step forward and are focusing on Swan-labelled demonstrates the breadth of Veidekke’s housing. These are homes built to very strict commitment to the environment, and that requirements regarding both environmental environmental considerations and business sustainability and health throughout the entire can happily go hand in hand,” says Kellner. construction process. Swan-labelled homes have now replaced the TellHus concept at Veidekke,” says Kellner.

In Sweden, Veidekke is now putting a great deal of time and energy into Swan-labelled housing, and in 2011 the company built the Nordic region’s first Swan-labelled residential block in Stockholm. Our goal is that all the homes we build for our own account in Sweden will achieve Swan-label certification. Homes that are Swan-certified not only have the lowest possible impact on health, the environment, and climate change, but also consume very little energy and have a good indoor climate, making Swan-labelled homes ideal for people with asthma and allergies.

Veidekke has now built two Swan-labelled apartment blocks in Stockholm. Both projects have received considerable attention in the media and the government in Sweden, with Sweden’s housing minister Stefan Attefall visiting both projects. “Swan-labelled housing is something of a ‘green revolution’ in the building and construction industry. These homes consume almost 30 per cent less energy than stipulated in the latest Swedish energy requirements and therefore play an important role in the fight against climate change,” says Kellner. Corporate Social Responsibility (CSR) report 2012 VEIDEKKE ASA 22

Environment Environmental strategy

The building and construction industry has undergone something of a green revolution in recent years. A broad range of innovative, smart and energy-efficient solutions have been developed to address the major challenges linked to climate change and environmental issues that our sector faces.

Climate change has been high on the leader in reducing greenhouse gas emissions agenda in the building and construction and protecting the natural environment. We industry for some time. It could be said that achieve this by incorporating environmental the building and construction industry has considerations into all the phases of our undergone something of a green revolution building projects, from planning, design and in recent years, but we still have a significant operation to demolition and recycling. At the environmental responsibility. In Norway the same time, we work in close partnership building and construction industry accounts with our customers and suppliers with a for some 13 per cent of the country’s total view to always minimising the impact on the greenhouse gas emissions. environment.

Veidekke has a negative impact on the Swan-labelled eco homes environment through greenhouse gas In recent years Veidekke has recently invested emissions related to energy use, waste heavily in eco-labelling homes under the Swan management, use of substances that are scheme. 2011 saw the first Sawn-labelled hazardous to health and the environment, etc., residential block in the Nordic countries – and consumption of scarce natural resources. developed by the Group’s Swedish operations We therefore take our environmental in Stockholm. Veidekke`s goal is that all own- responsibilities very seriously and aim to have account housing in Sweden shall achieve the best environmental practice. Specifically, Swan-label certification. For a building to merit this means that Veidekke strives to be a a Swan eco-label, it must meet extremely Corporate Social Responsibility (CSR) report 2012 VEIDEKKE ASA 23

stringent environmental requirements asphalt production process by producing throughout the entire production process from asphalt at lower temperatures. The result is the choice of raw materials until the building is 30 per cent lower energy consumption and finished. Swan-labelled homes have very low less evaporation during production, thereby energy consumption (40 per cent lower than in also reducing odour problems. Veidekke does standard homes), and are built from materials not use tar-containing binders or binders with that pose the least possible hazard to human a high content of organic gases in its asphalt health and the environment. In addition, they production. have a good indoor climate, which makes them ideal for people with asthma and allergies. Waste management In Norway, the building and construction An important aspect of Veidekke’s industry is working together, through the environmental work is how we handle Norwegian Green Building Council, to ensure the waste produced in our building and a high environmental standard in all Norwegian construction projects. According to Statistics buildings. Norway, building activities in Norway generate 1.6 million tonnes of waste a year, which Innovations in concrete corresponds to 18 per cent of the country’s Concrete is one of the most widely used total waste. Veidekke is therefore working to building materials and is used in many building find ways to reduce waste volumes and has and civil engineering structures. In our efforts achieved steady improvements in this area to reduce our environmental impact, Veidekke since 2004. has been working very closely with the concrete manufacturer Norcem for three years now on testing and developing a new, more environment-friendly type of concrete known as environmental concrete. The concrete is produced using low-carbon cement, halving the carbon footprint compared with traditional manufacturing techniques. In theory, using environmental concrete in building and construction projects would reduce the sector’s total CO2 emissions by 350,000 tonnes a year. Our experience with the use of environmental concrete has been very positive so far, and together with Norcem Veidekke will continue testing and developing this material. Indoor climate

A growing number of people suffer from respiratory diseases. In light of this, Veidekke has entered into a collaboration with the Recovery of excess materials is a growing Norwegian Asthma and Allergy Association area, and in 2012 we separated out 69 (NAAF) to develop housing with the best per cent of the waste materials from our possible indoor air quality. Since 2011, all building, renovation and demolition activities. our housing projects in Norway have been This is above the average in the building built using solutions approved by NAAF. and construction industry, which according Good examples include the use of heating to Statistics Norway was 57 per cent. The systems that ensure good indoor air quality, greatest potential for source sorting of waste use of paints that emit fewer harmful fumes, is still in connection with construction of new and structures inside the buildings that buildings, and we are working constantly to minimise dust and particles that can irritate improve in this area. the respiratory system. At the end of 2012, Veidekke has developed seven housing In November 2012 Veidekke held its first projects in collaboration with NAAF. Scandinavian Environment Day, attended by nearly 100 participants from Norway, Sweden More environment-friendly operation and Denmark. In 2013 we are launching the The operation of aggregates works and asphalt Veidekke Environmental Award, which will plants can be environmentally challenging. Dust be awarded to a unit or project that has and noise affect the surrounding area, which is distinguished itself on the environmental front a problem for neighbouring communities and during the past year. the natural environment alike. Efforts to make Veidekke’s aggregates and asphalt plants as environment-friendly as possible are therefore a top priority. In partnership with the energy company Shell, we have developed a cleaner Corporate Social Responsibility (CSR) report 2012 VEIDEKKE ASA 24

Environment Energy consumption

The building and construction industry consumes a large amount of energy, for example to heat and dry building sites. Veidekke’s energy consumption in Norway was 337 GWh in 2012, compared with 287 GWh in 2011.

The proportion of renewable energy used In the past, Veidekke has received good in Veidekke is rising slowly, mainly due to feedback from the scientists who process increased use of biodiesel. Veidekke’s energy the results. Our work to establish specific consumption in Sweden and Denmark is targets and associated reporting systems significantly lower than in Norway, since for environmental parameters continues. machines are largely hired for the individual Our objective is to have a clear overview projects and we do not produce our own of the current situation and to use this to asphalt, crushed stone or gravel in these effect continuous improvements in our countries. environmental performance. Collaboration with the Climate, Energy and The Carbon Disclosure Project Environment Committee Veidekke participates in the Carbon Disclosure In Norway Veidekke is an active member of the Project (CDP), a collaboration between Climate, Energy and Environment Committee 655 institutional investors with combined of the Norwegian Contractors Association assets of approx. USD 78 trillion (2013). The (EBA). The purpose of this committee is to CDP challenges large listed companies to build knowledge and develop tools to reduce disclose information about the systems they the environmental impacts of the building and have in place to monitor and manage their construction industry. The main priority in 2013 greenhouse gas emissions and what the will be an increased focus on the environment company’s management is doing to respond on building and construction sites, revision of to the risks and opportunities entailed by the national action plan for construction and changes in the climate. This information is demolition waste (NHP), and the government’s then used in the assessment of shares and Bygg 21 project. pricing of insurance, for example. Corporate Social Responsibility (CSR) report 2012 VEIDEKKE ASA 25

Low-temperature asphalt Veidekke Industri AS developed low- temperature asphalt at the end of the 1990s. Asphalt produced at lower temperatures emits less smoke during laying, providing a better working environment for employees. In addition, less energy is required during laying, thus reducing CO2 emissions. Veidekke has also participated in a number of projects in the industry to test new technologies, with very promising results. From 2013, the specifications in public asphalt contracts have been modified to allow the use of low-temperature asphalt. Veidekke has had low-temperature asphalt production facilities at two plants for 15 years, and now that the technique has been approved by the public road authorities, we are going to upgrade more factories. In 2013, five of our plants will be converted for low-temperature asphalt production. Corporate Social Responsibility (CSR) report 2012 VEIDEKKE ASA 26

Finance Motivated employee-owners

Veidekke’s employee ownership programme stretches back more than forty years, and according to the skilled workers we talked to at the site in Minnesund, the system is more popular than ever. Now European businesses are beginning to recognise the benefits of the employees also being co-owners of the company.

In the building and construction industry it year, when you can buy more shares, and in is very important that the employees are the spring when the dividends are paid out,” involved and assume responsibility on site. he says with a smile. This helps ensure efficient processes, thereby improving the company’s profit margins. Popular programme Veidekke’s employee ownership programme We are talking to four skilled workers who is an important part of the Group’s corporate are working on Veidekke’s site in Minnesund. philosophy based on collaboration and Everyone agrees that it is a win–win system. involvement. Owning shares in the company “Veidekke is there to make money, and it’s nice you work for motivates people to go that extra to be part of something that is creating value. mile and makes them more aware of how the Owning shares helps ensure good deliveries effort they make at work is reflected in the in all projects. In the end, everything you do share price and profits. This view is supported affects the dividends you receive,” says Arnt- by Jan Gunnar Spjøtvold, a formwork carpenter Børge Jensen, site manager and a member who is currently working on the new E6 of the share programme for the last 12 years. highway near Minnesund. “I check the share He adds that the share ownership programme price almost every day. We all do. Of course is well established in the company. “in my it is particularly interesting at the end of the opinion, we get excellent information before Corporate Social Responsibility (CSR) report 2012 VEIDEKKE ASA 27

each share sale. A campaign is conducted employee ownership schemes in Europe in internally, and the scheme is perceived as the future. “Employee ownership will become well-organised and very popular. It is important more common for the simple reason that it to think long term when you own shares in a makes good business sense and provides a company,” he says. competitive advantage. The competition to attract the best employees is not going to Veidekke’s employee ownership programme get any easier, and the companies that have was started up in the late 1960s. Today more this type of arrangement have a definite than half of the employees hold shares, and advantage. In the UK, for example, we have together they own a fifth of the company. In seen that the idea of employee ownership is the early 1980s, employee co-ownership was one of the main pillars in the government’s officially defined as part of the company’s long- new economic direction. They are highlighting term strategy, and since the company was it as an important factor in British companies’ listed on the stock exchange, the employees ability to be competitive in the future.” have regularly been given the opportunity to buy shares in the company. They are given a What about Veidekke going forward? The discount, and can borrow money on favourable scheme has been a success for many years, terms to buy the shares. but should it be maintained in the same form in the future too? The opinion from the Europe following suit construction site is crystal clear: continue This scheme, which has been a part of the as before! “It’s a brilliant scheme,” says Veidekke culture for 40 years, is now beginning Stefan Persson, site foreman at the site in to get a foothold on the continent too. More Minnesund. “I had heard a lot of good things and more companies are seeing the value of about the scheme before I started at Veidekke. having employee-owners, according to the It gave me the impression that this was a head of the AksjeNorge foundation, John serious company and was actually one of the Petter Tollefsen. “There has been growing reasons I applied for a job at Veidekke,” says interest in the topic of employee ownership Persson. in Europe in recent years, and more and more companies are introducing share ownership programmes. Indeed, the European Parliament is now supporting an organisation intended to provide better information about the benefits of employee ownership,” says Tollefsen, meaning that we can expect to see more Corporate Social Responsibility (CSR) report 2012 VEIDEKKE ASA 28

Finance Finance and value-creating

One of Veidekke’s main competitive advantages is our combination of size and local presence, where the individual units have a high degree of freedom in choosing their local partners. This in turn creates local jobs and contributes to activity and business development in rural regions.

Local presence is one of the pillars of Veidekke’s the employees are co-owners in Veidekke and business model. Thanks to our decentralised together own 19 per cent of the company. model, we are there where commercial and Veidekke’s employee share programme cost infrastructure developments are going on, NOK 27 million in 2012, but this is regarded as with a local workforce and local partners. It a good investment. Employee co-ownership is our local employees who know the local has very positive results for the company markets, customers and opportunities best. such as greater loyalty and commitment, This also creates local jobs, and activity and increased understanding of the business, and involvement in rural areas. stronger involvement in operations. The share programme is also intended to be profitable for Employee co-ownership the employees, and in 2012 Veidekke shares The employees’ loyalty and commitment to paid a dividend of NOK 2.50, amounting to a their own company is a defining feature of total dividend of NOK 334 million. Veidekke. To this end, the company has devised a unique share scheme, where the employees Operation and financial results are given the opportunity each year to buy Corporate social responsibility is about finding shares in the company at a discount. We also the best possible solutions to current social offer loans at a favourable rate to finance the challenges. Healthy finances and efficient purchase of shares. In 2012, 5,882 employees operations are vital to achieve this. In this were offered the opportunity to buy shares, respect, last year was a positive year for and 1,795 accepted, which is 28.7 per cent of Veidekke, with 14 per cent turnover growth the entire workforce. Today 50.7 per cent of compared to 2011. Corporate Social Responsibility (CSR) report 2012 VEIDEKKE ASA 29

As one of Scandinavia’s largest construction Purchase of goods and services companies, Veidekke makes significant As one of Scandinavia’s largest construction contributions to society. In 2012, we paid companies, it is important for Veidekke to be NOK 36.9 million in tax and NOK 521 million up-to-date on the market, products and players. in National Insurance contributions. Veidekke Veidekke nurtures close relationships with its has a total of 6,253 employees in Scandinavia. suppliers and is keen to be very clear on what In 2012 we paid NOK 3,348 million in salaries. we expect and require of our partners. All Veidekke also offers its employees excellent suppliers must therefore undertake to follow pension plans, in addition to the mandatory Veidekke’s safety and environmental rules, pension arrangements imposed by the and we also require that they comply with authorities. The Group’s total pension expense our standards regarding occupational health, in 2012 came to NOK 140.7 million. safety and the working environment. In 2012 Veidekke purchased goods and services for a total of 15,321 million. Corporate Social Responsibility (CSR) report 2012 VEIDEKKE ASA 30

Transparency and dialogue Involvement

We are committed to being accessible and to sharing information as much as possible with society, our customers, the authorities, students and researchers, our employees, the media, investors and suppliers.

At any one time, Veidekke has about a thousand and investors. We believe that together we ongoing projects all over Scandinavia. This can find the most sustainable solutions to the means that we are present and affect many current challenges related to environmental people’s lives, either directly as a supplier, impacts, climate change, health and safety, customer or employer, or indirectly in the recruitment, etc. We contribute what we are communities where we build. It is therefore good at; our partners do what they do best – very important for us to be open to input from and together we create value for businesses parties who in some way or other are involved and society alike. Good dialogue with our in our business. stakeholders helps us improve our overall risk situation. To put it simply: openness makes it Working together to find the best easier for all parties to identify, monitor and solutions resolve issues at an early stage. In 2013, we Interaction and dialogue with the world intend to develop more platforms for dialogue around us is a key guiding principle in our with the world around us, both through work on corporate social responsibility – and dialogue conferences and more indirectly via an important element in Veidekke’s corporate social media, which have become an important philosophy. We believe that the best solutions communication channel for Veidekke. and best results are achieved through collaboration among different actors in society, Participative Planning different communities and different types of “Participative Planning” is an important skills. We therefore work closely with industry, element in our projects and our production. public authorities, NGOs, research institutes The main objective is to minimise delays and Corporate Social Responsibility (CSR) report 2012 VEIDEKKE ASA 31

improve the flow of production. The method In 2012, we have carried out several projects aims to ensure that each individual employee using Participative Planning as the planning can contribute their expertise and creativity, methodology, with excellent results. This has the opportunity to influence their everyday methodology will be a central part of the work, and can see how their contribution is Group’s continuous efforts to improve going important and makes a difference to the end forward. result.

Participative Planning is about:

• Plans being made in collaboration with the people who are going to perform the work • Everyone being familiar with and able to influence their own work • Plans being formulated as mutually binding promises – not “orders” • Removing barriers so that the right activities can be performed at the right time • Ongoing planning with greater detail being added as execution of a process or task approaches • The different planning levels having different owners Corporate Social Responsibility (CSR) report 2012 VEIDEKKE ASA 32

Transparency and dialogue Employees

Employee involvement is one of the cornerstones of our corporate philosophy. We believe that people are happier and perform better when they are well informed, and to this end we work continuously to provide our managers with the knowledge and tools they need to ensure good internal communication.

Half of our employees are shareholders Through Veidekke’s share programme our employees are given the opportunity each year to buy shares at a discount. In 2012, 5,882 employees were offered the opportunity to buy shares, and 1,795 accepted, which is 28.7 per cent of the entire workforce. Today, a total of 50.7 per cent of our employees are co-owners in Veidekke, and together they own 19 per cent of the company. Employee co-ownership is an important element in our strategy to ensure long-term value creation and promotes loyalty, involvement and understanding of our daily business. The programme was introduced in the late 1960s and is now an integral part of Veidekke’s corporate culture. Corporate Social Responsibility (CSR) report 2012 VEIDEKKE ASA 33

Recruitment and collaboration with Sweden, where the apprenticeship scheme is educational institutions also a high priority, are 34 and 46 apprentices Stable recruitment is one of Veidekke’s three respectively. priority areas in terms of corporate social responsibility. The building and construction Veidekke also has an attractive trainee industry is sensitive to economic fluctuations, scheme, which offers graduates unique and we need to think long term in respect of insight into the workings of the building and recruiting key personnel with important skills construction industry. In 2012, a total of 54 and expertise. Veidekke’s success depends on access to knowledge. Veidekke has collaboration agreements with a number of schools and educational institutions to encourage more students to choose building and construction – and to recruit new employees to Veidekke. These agreements are geographically dispersed. Our collaboration with the Centre for the Construction Industry at the Norwegian Business School (BI) and with the Norwegian University of Science and Technology (NTNU) in Trondheim are central to this scheme. Among other initiatives, Veidekke has developed a course at NTNU (project management), we fund a PhD student and a research assistant, and we collaborate with the student association for Civil and Environmental Engineering. trainees were recruited, 17 of whom (31 per cent) were women. Our goal going forwards We also work with the international not-for- is to establish a complete, pan-Scandinavian profit organisation “Young Enterprise”, which trainee scheme. aims to stimulate collaboration between schools and businesses. The «School on site» project In 1997 Veidekke established the «School on site» scheme. Back then, the objective of the project was to encourage recruitment of skilled workers, especially in concrete. The target group for the project was people aged 19–40 years who, for various reasons, were struggling in the labour market. The «School on site» project was an instant success, and by 2011 over 100 skilled workers had been trained and found apprenticeships in the building and construction industry.

Due to disagreements between NAV and the education authorities over funding, the project took a new turn in 2012. The county authorities in Akershus and Oslo stepped in with funding of one school class each. A new goal was also defined for the project, namely to help reduce the high drop-out rate from vocational training in schools. In Akershus, Veidekke collaborates Apprenticeship and trainee scheme with Jessheim Upper Secondary School, and Good apprenticeship and trainee schemes in Oslo with Bjørnholt School. The target group are essential to attract young talent. Veidekke is pupils aged 16 to 23 years who have either has therefore put a lot of time and effort into not started or not had the opportunity to finish making its schemes in this area as attractive upper secondary school. So far the feedback as possible. In 2012 Veidekke Norway had from the pupils has been very positive, and 180 apprentices, making us one of the largest we hope to be able to continue this project in apprenticeship employers in the country. the years to come. The corresponding figures for Denmark and Corporate Social Responsibility (CSR) report 2012 VEIDEKKE ASA 34

Downsizing and lay-offs our skilled workers and managers alike. The construction industry is by nature very Veidekkeskolen offers training in areas such sensitive to cyclical fluctuations, and Veidekke as upgrading trade skills, leadership skills and does what we can to safeguard our employees’ management, HSE, financial administration jobs, even in challenging economic times. and project management. In 2012, 3,259 Unfortunately, the current rules for layoffs are people participated in training arranged by far too rigid in our opinion, and we are working Veidekkeskolen. This is a slight decrease from closely with the authorities and politicians to 2011, when the number of course participants try to develop more flexible rules. was 3,413

We believe that temporary lay-offs can be an effective tool to provide stability and predictability for our employees during a recession, and to ensure the organisation does not lose important knowledge and key expertise. Nevertheless, downsizing is a necessary part of our operations, and we are keen to have good routines in this area. This necessitates close collaboration with the employees’ elected representatives, and follow-up of laid-off employees in terms of job seeker courses, etc. In 2012, there were no lay-offs or cutbacks at Veidekke.

Veidekkeskolen – in-house training and seminars Veidekke works systematically on employee training and professional development. We are one of a handful of Norwegian companies to have established our own in- house academy, Veidekkeskolen, where all employees can take a wide range of courses aimed at the professional development of Corporate Social Responsibility (CSR) report 2012 VEIDEKKE ASA 35

Transparency and dialogue Customers

Value-creating partnerships with our customers are essential to the success of our projects. No two projects are alike, and all our customers are unique too.

It is therefore important for us to establish customer satisfaction. Another target is that early on how involved our clients want to be in the homes we hand over shall be 100 per cent their project and to listen actively to the needs free of faults and deficiencies. they communicate to us. Today about 80 per cent of the customers in our construction In 2013 we are going to introduce a new operations are repeat customers. We see this customer service system, boligbasen, which as a sign that the dialogue between us has will enable customers to follow the process been fruitful. up until handover even more closely.

Veidekke Eiendom (Property) has more than 1,000 homes under construction. This means that we have more than 1,000 housing customers at any one time who all need ongoing follow-up and information. Veidekke regularly measures customer satisfaction among our housing customers and has set the target of being an industry leader in terms of Corporate Social Responsibility (CSR) report 2012 VEIDEKKE ASA 36

Transparency and dialogue Suppliers

Increasing efficiency is an ongoing challenge in the building and construction industry. Figures from Statistics Norway show that productivity in Norwegian industry in general has increased by 30 per cent over the last ten years, whereas productivity is actually decreasing in our industry.

Standardisation of building sites is difficult, as building projects ensures that they can be each project has its own unique challenges involved in the project adjustments from an that have to be resolved and always require early phase. They have the best knowledge a great deal of tailoring. In order to succeed of the details of the various phases in the in improving the margins in this type of work, planning and implementation of the project, everyone on the construction site must feel and together we can ensure the best possible a shared sense of responsibility for good, production flow, identify and remove any efficient processes. Involvement is the key in potential obstacles at an early stage, and thus this respect. avoid delays.

In recent years we have started applying the Close collaboration also provides us with lessons we have learnt from getting our own better opportunities to communicate our employees more involved to our suppliers and standards in areas such as health and safety, other partners. We involve our subcontractors environmental performance and ethics, in in the planning of projects through a process addition to allowing us to further develop our we call “Participative Planning”. work on accountability throughout the entire supply chain. In building projects, there will always be changes that have to be made during the project period. Close constructive collaboration with subcontractors who are working on our Corporate Social Responsibility (CSR) report 2012 VEIDEKKE ASA 37

Transparency and dialogue Investors

Through our Investor Relations (IR) function, we are in constant dialogue with key stakeholders such as stock analysts, investors and shareholders.

In IR, as elsewhere, there is an increasing focus Name Interest in % on issues related to sustainable development. Over the past year we have seen clear signs OBOS Forretningsbygg AS 28 that investors require us to have good health, IF Skadeförsäkring AB 9,1 safety and environmental procedures in Folketrygdfondet 7, 7 place throughout our operations. Funds are Swedbank Norge 3,7 increasingly being managed according to socially responsible criteria (so-called SRI), SEB (NOM) 2,5 and we believe that solid CSR work will be an MP Pensjon PK 2,3 important premise for access to capital in the Must Invest AS 1,9 future. Handelsbanken 1,2 According to a survey conducted by the Odin Norge 1,1 European Sustainable Investment Forum SEB (NOM) 0,9 (EUROSIF) in 2012, funds managed according Total 10 largest shareholders 58,4 to various socially responsible criteria total approx. USD 14 billion. The organisation also Employees (3 170 shareholders) 19 identifies a boom in funds managed according Other shareholders 22,6 to socially responsible criteria, with an increase Total 100 of 87 per cent in just two years. Corporate Social Responsibility (CSR) report 2012 VEIDEKKE ASA 38

Transparency and dialogue Authorities

Politicians set the framework for our business, ranking them among our most important stakeholders.

Daily contact with the political arena is mainly mention are the Environmental Council – a through industry organisations such as the unique collaboration between private industry, Norwegian Contractors Association (EBA) municipalities, authorities and government in and the Norwegian Asphalt Contractors Sweden – and our committee work to develop Association (AEF) – and their sister a new standard for passive and low-energy organisations in Sweden and Denmark. The housing in Norway. environment and safety are often on the agenda of our meetings with politicians where we discuss issues such as our work on the Nordic Swan environmental standard, for example.

As part of our commitment to the environment, it is natural that we have clear opinions on the authorities’ environmental standards for the building and construction industry. Among the many initiatives we can