During the second quarter, the effects of the corona pandemic gradually started to ease off and the operating environment generally improved. The ongoing corona vaccination programmes provided a helping hand seen in the lower number of severe COVID-19 cases. Many governments have also started to lift the various restrictions related to the corona virus and have formulated their plans to support the economic recovery. Despite the positive developments, Caverion remains somewhat cautious with the pandemic as unpredictable virus variants and new waves of the pandemic may continue to emerge.
During the first half of the year, the building technology market was impacted by increases in material prices, affecting particularly Caverion’s Projects business. Caverion has proactively taken various measures to optimise the supply chain and to manage pricing.
In Services, Caverion 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.
There was 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 Projects, market demand still continued on a lower level, although there were clear signs of market stabilisation towards the end of the second quarter. During the first half 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 half 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: