During the third quarter, the delta variant of the corona pandemic still impacted the business operations negatively, particularly in the first two months of the quarter. The operating environment started to improve at the end of the quarter due to the broad coverage of the corona vaccinations. Many governments also started to lift the various restrictions related to the corona virus in September, while at the same time finalising their plans to support the economic recovery.
During the first nine months of the year, the building technology market was impacted by increases in material prices. There have also been supply shortages and delays in some areas. Caverion has proactively taken various measures to optimise the supply chain and to manage pricing.
In Services, Caverion has experienced increased investment activity among several customer segments as of the second quarter. As an example, certain annual industrial shutdowns in Finland postponed from last year took place in the second quarter of 2021.
Caverion has started to see a general increasing interest for services supporting sustainability, such as energy management and advisory services, driven by regulation and the expected governmental and EU stimulus packages supporting investments in green growth.
In the third quarter, there was still some negative impact from corona in a year-on-year comparison.
In Projects, market demand overall continued on a lower level in the first nine months of 2021, although there were clear signs of market stabilisation as of the end of the second quarter. In the third quarter, market demand started to gradually pick up also in Projects.
During the first nine months of the year, the market was impacted by increases in material prices.
Stimulus packages did not yet have a clear impact on general demand in the first nine months of 2021.
Built environments are a major source of carbon emissions today:
We consider digitalisation and sustainability as the key themes driving our future growth. Sustainability needs, in particular, are growing rapidly. Furthermore, other megatrends such as increasing use of technology and urbanisation are supporting Caverion’s growth.
Changes in the EU legislation (EBPD) with increased focus on sustainability and carbon neutrality are driving industry growth. Government and EU-level corona-related stimulus packages are focusing development efforts toward sustainable investments over the coming years. Customers are expecting greener solutions and sustainability is becoming a decision criterion.
New consulting services (such as SRI, energy efficiency) and new digital services offer our customers:
We have taken into account the EU taxonomy requirements applicable to listed companies as of the beginning of 2022. The next goal is to align non-financial reporting and targets with the EU taxonomy. We will publish the first taxonomy reporting regarding the year 2021 in 2022.
New data-driven analytics and new technologies emerging enable developing smart, resilient buildings and cities that are technologically enabled, connected and agile and that both improve the operational efficiency of the buildings/cities and enhance the quality of life for theirs for residents.
Further digitalisation will benefit us in many ways through our solutions: