Does your accounting firm have customers who want to work with the Nordic region's largest construction and contracting companies? If so, systematic sustainability reporting is a must.
– We and our competitors' procurement templates and underlying sustainability requirements are similar. Even though we currently do not require sustainability reporting according to a certain standard, a company that does not report how they work with sustainability cannot work for us, states Marcus Holtz, Chief Procurement Officer and Group Purchasing Manager at Peab.
The first step to a Peab-contract is to apply to become a supplier via Peab's website. The requirements reflect the legislator's and Peab's own requirements.
– We provide information about our code of conduct,which all suppliers must approve, and which is an appendix to all agreements. We also stress the importance of our sustainability work and what requirements each supplier must meet in this context, says Marcus Holtz, who is deeply involved in Peab's own sustainability report.
– We have an enormous focus on sustainability issues from all perspectives, so it is natural that we demand the same from our suppliers, says Marcus Holtz, CPO and Group Purchasing Manager at Peab.
After being approved as a supplier, it is possible to submit quotations to Peab. If it comes to a deal, templates for project purchasing are used. Should the cooperation evolve further, templates for frame agreements are used.
Simply put, these templates are governed by applicable laws and Peab's and the customer's demands. Peab's sustainability efforts are based on the United Nations Agenda 2030.
According to Marcus Holtz, sustainability requirements are becoming increasingly prominent, as are the demands for sustainability reporting:
– Yes, there is no question about it. Demands from the Nordic governments and EU are increasing. We, as a company, are also actively looking for more sustainable solutions ourselves. We are not waiting for legislators to introduce improvements. Sustainability issues are at the top of our agenda and are always included as part of our tender evaluations. Suppliers with frame agreements must perform systematical sustainability work, we conductannual supplier audits to make sure that they do.
The right standard
Large companies have possibilities that are beyond small and medium-sized enterprises when it comes to sustainability reporting. Because of this, the Nordic Accountant Federation recently launched NSRS, the Nordic Sustainability Reporting Standard.
Does Peab adapt its requirements to the supplier's size or resources?
– No, our sustainability requirements are the same for everyone. But to work as sustainable as possible, we always try to find local solutions for our projects. We have operations in many locations in the Nordic region. Our own parameters in our sustainability work also include businesstrips and transports.
Marcus Holtz emphasizes that sustainability work does not just pay off. It is absolutely necessary for large and small companies alike. Peab, with 16,000 employees, have chosen to own everything from rock quarries and concrete element factories to various construction machines; virtually all they need to project and build Peab owns themselves. This make sit easier to control the environmental impact of their business.
– We still buy large amounts of materials and hire many subcontractors. Our actions make a difference. That is why we are so fastidious when it comes to our own and our suppliers' sustainability work, says Marcus Holtzand concludes:
– Personally, I find this stimulating and rewarding. Let's just go back 10 - 15 years and think about how the industry worked back then. Regardless of whether you work in a large or small company, it feels good as a professional, and as a person, to contribute to a more sustainable society.
Turnover: SEK 57 billion.
16,000 employees in Sweden, Norway, Finland, Denmark.
Approximately 40,000 external suppliers.
Climate neutral 2045.
Business areas: Construction, civil engineering,industry, project development.
Supplier portal FAQ (ENG, scroll down): Förleverantörer - Peab - Närproducerat samhällsbygge