What is Caverion’s approach to sustainability?
We are committed to making a difference in sustainability together with our customers in line with our strategy and purpose: enabling performance and people’s well-being in smart and sustainable built environments.
We have defined four ESG focus areas until 2025 which support us in reaching the sustainability
Is sustainability part of Caverion’s strategy?
Yes, sustainability is one of the key themes of our strategy. We want to develop all our ESG (environmental, social, governance) practices further and have set clear Key Performance Indicators and action plans to reach our group-level sustainability goals.
Sustainability also drives our growth: Caverion is extremely well positioned to support its customers' sustainability efforts. We are continuously improving and expanding our smart technology and digital solution offering, including sustainable refrigeration, energy advisory services and remote services, to increase customer value and our carbon handprint.
Is Caverion committed to UN Sustainable Development Goals (SDG)?
Yes, we joined UN Global Compact and committed to Sustainable Development Goals in 2021.
The Sustainable Development Goals (SDGs) particularly linking with our sustainability targets and
How does Caverion relate to the Paris Agreement?
We are working on many fronts to reduce our greenhouse gas (GHG) emissions and support the Paris Agreement goals, including the efforts to limit global warming to 1.5°C.
In February 2022, Caverion committed to the Science Based Targets initiative (SBTi) which is driving
ambitious climate actions. SBTi enables companies to set science-based emissions reduction targets
in line with the Paris Climate Agreement and reducing global warming to 1.5 degrees. We will continue
the work in defining our Scope 1-3 emission targets during 2022, based on the world-wide
Greenhouse gas emission calculation standard GHG Protocol and SBTi process.
What sustainability-related indices is Caverion included in?
Caverion is included in the following third-party assessments, among others:
Sustainalytics ESG Risk rating: Low risk (7/2021)
MSCI A (12/2021)
ISS ESG C (NP)
ISS Corporate solutions Governance 3 (1/2022)
CDP C (2021)
Ecovadis Gold rating
OMX Sustainability Finland GI
OMX Sustainability Finland PI
OMX Sustainability Finland CAP GI
OMX Sustainability Finland CAP PI
In addition, we are included in country specific indices.
What is the impact of Caverion to environment?
Caverion contributes its greatest environmental impact through its handprint. We offer our customers energy efficient and sustainable solutions, such as smart technology – refrigeration, security and automation, and modernisation projects. We work continuously with our customers to make sure that e.g. energy resources are used efficiently and responsibly.
In addition, Caverion is currently working on many fronts to reduce its footprint to the environment, including greenhouse gas emissions.
How does Caverion work to reduce its direct environmental impact?
By 2025, we will have defined 100% of our carbon footprint. We are currently planning further actions to reduce our Scope 1,2 and 3 level emissions in our operations and supply chain.
Of Caverion’s own operations, the fuel consumption of the car fleet creates the most significant part of our own operations’ footprint (Scope 1). The whole vehicle market is changing rapidly and we are following the development in every country. For example our Norwegian colleagues are already driving electric company cars, and they have already taken the first electrical vans in use.
Caverion contributes its greatest environmental impact through its handprint by offering its customers energy efficient and sustainable solutions.
What is Caverion’s calculation method for its GHG emissions?
Our GHG emission calculation model is built in accordance with the GHG Protocol's Corporate Accounting and Reporting Standard and the Corporate Value Chain (Scope 1-3) Standard.
How does Caverion see the climate related business opportunities?
The digitalisation and sustainability megatrends are in many ways favourable to Caverion and will further increase demand for Caverion’s offerings going forward. The increase of technology in built environments, increased energy efficiency requirements, increasing digitalisation and automation as well as urbanisation remain strong and are expected to promote demand for Caverion’s services and solutions over the coming years.
Especially the sustainability trend is expected to continue strong. Increasing awareness of sustainability is supported by both EU-driven regulations and national legislation setting higher targets and actions for energy efficiency and carbon-neutrality. For example. over 97% of the building stock in EU must be upgraded to achieve EU’s 2050 decarbonisation vision. Caverion has been putting a large effort to develop its offering and solutions to meet this demand. Our expertise covers the entire lifecycle and we ensure efficiency from installation to maintenance.
What are Caverion’s steps to increase the positive impact on the environment?
To increase our carbon handprint, we will, for example, accelerate the innovation and development of our smart and sustainable offering, educate our employees on contributing to customers’ sustainability performance and increase the smart technology revenue share of our total revenue. When we are involved early in customers’ investment projects, we can offer for example energy advisory and help the customer to choose sustainable and smart solutions which can have a big impact during the lifecycle of the building or industry.
In addition we want to , sustain continuous dialogue with key stakeholders, and enhance data collecting and utilization.
What share of Caverion’s revenue is aligned with the EU taxonomy?
Caverion is taking into account the EU taxonomy requirements applicable to listed companies as of the beginning of 2022. We will publish the first taxonomy reporting regarding the year 2021 in 2022.
What type of clean technology solutions does Caverion use?
The clean technology solutions that we use can be divided into two: our own operations and our offering. In our own operations, we make sure to, for example, increase the energy efficiency of our offices. In addition, we promote the use of digital solutions, for example virtual meetings instead of travelling.
Through our offering, we can have a greater handprint compared to our own operations. We offer our customers energy efficient and sustainable solutions, such as smart technology – refrigeration, security, automation, and upgrades and modernisations.
How does Caverion manage climate change risks?
Caverion’s own operations are not extensively energy intensive and therefore risks related to for example growing energy costs are moderate.
We are currently defining the key climate related risks for Caverion. Caverion follows all legal requirements, and current regulations and their development on local and international level.
Does Caverion have certified environmental management system?
ISO 14001 covers 91% of our operations.
What share of Caverion’s sales are related to fossil-based industries?
Our rough estimate is that about 6% of our revenue is related to oil, coal and gas. This revenue is from division Industry. Because this is only a rough estimate, we are currently working on a more detailed calculation, including other divisions.
How does Caverion see its role in the circular economy?
Waste management and efficient material use are a part of our day-to-day work. We also help our customers to increase efficient material use and improve waste management through our services. Our work regarding circular economy becomes more focused as we move towards publishing Scope 3 of our emissions.
How does Caverion ensure health and safety of its employees?
We care about the safety, health and wellbeing of our people: we focus on preventive safety work and wellbeing along with continuously developing our work processes.
We are among the top performers in our field in terms of safety. We expect our employees to follow strictly both Caverion’s Safety Guidelines and the safety rules and regulations applicable at the work site. Occupational safety orientation and training is a part of the work of all employees at Caverion. We focus on proactive safety work; we regularly conduct personal risk assessment, review and learn from incidents, discuss safety matters and conduct safety auditing.
We encourage our employees to take care of their wellbeing both at and outside of work. The Caverion Map of Wellbeing supports this effort. We consider health risks and work in close cooperation with occupational healthcare and support work ability, coping with workload and returning to work through different individual initiatives.
What is the accident frequency rate of Caverion?
Our accident frequency (LTIFR, number of occupational accidents resulting in absence per a million work hours) rate in 2021 was record low, 4.0 (2020: 4.2). We are among the top performers in our field in terms of safety. However, we continue to develop our ways of working and our long-term target is to go as close to zero level as possible.
How does Caverion ensure proper working conditions?
We are committed to providing a healthy and safe working environment for everyone working for Caverion, regardless of the work location. Caverion is fully aligned with the local legislation and union agreements wherever we operate.
We have for example clearly defined the working hours in each country and for each job. We want to ensure that all our employees have a good work life balance and are able to take care of their wellbeing.
We want to be competitive in the markets where we operate and be able to attract and retain the right people. Therefore we build our reward packages based on the market practices, aligned with Caverion Reward Guidelines.
We have regular collaboration at international level with the EWC (European Works Council).
How does Caverion work to secure equal pay for employees?
We treat our people on a fair and consistent manner and aim for a clear communication of reward. All reward related decisions must be approved at least by the manager’s manager and HR to comply with our Corporate Governance Guidelines. We have recently updated our job structure enabling us to have enhanced transparency per job levels and improved equal pay analysis. Our aim is to pay equally for same job with same performance, taking into account for example market benchmark.
How does Caverion ensure career management of its employees?
Caverion encourages its employees to pursue professional growth and supports them in learning and developing their skills further. The annual performance and development discussion process provides an opportunity to give and receive feedback on performance, cooperation, competences, behaviours and leadership for both managers and employees. An annual individual development plan is drawn up as part of the process for the employees to develop their current and future competences.
On average, our people work with us for over 10 years. Our record careers have been over 50 years long. Many of our professionals first joined the company as trainees. Every year we hire around 900-1,000 summer workers, apprentices, thesis students and trainees.
What is the sick-leave rate in Caverion?
Sick leave rate (hours of absence/ total available hours) in 2021 was 4,6 (2020: 4,7). We continuously follow up our sick leave levels and take proactive actions to support the wellbeing and health of our employees. We work in close cooperation with occupational healthcare: support work ability, coping with workload and returning to work through different individual initiatives.
What development and training does Caverion offer to its employees?
Caverion encourages its employees to pursue professional growth and supports them in learning and developing their skills further. For example in 2021 we organised approximately 10,000 training events. Trainings include safety training programmes, technical discipline and general skills training and education programmes and other trainings. We have recently developed an internal learning platform, Caverion Campus that is open for all employees and offers a great variety of different content for developing skills.
One of our sustainability KPIs is that our employees are trained in sustainability. We follow it e.g. by monitoring who have conducted sustainability related eLearnings: Sustainability, Safety and Code of Conduct (CoC).
Each employee is entitled and expected to have a development discussion with their line manager on regular basis and build an individual development plan to develop their current and future competences. We believe that majority of the learning happens on the job; we encourage all employees to be curious, learn every day from each other and develop themselves on continuous basis.
How does Caverion manage human rights issues?
Our strong commitment to ethical business practices form the basis for responsible business conduct. In accordance with Caverion’s Code of Conduct, we encourage an open and collaborative atmosphere at work and we respect internationally proclaimed human rights which means for example:
We are committed to UN Global Compact and Social Development Goals. Caverion is fully aligned with the local legislation wherever we operate.
What is Caverion’s approach to inclusion and diversity?
Caverion respects people as individuals and embrace difference and foster inclusion. Wherever we operate, we are committed to creating a working environment that is inclusive, fair and flexible, and promotes personal and professional growth. Due to our industry, we also want to pay special attention to gender equality and our ability to offer interesting and safe working environment for all, independent of the gender. We believe that diversity and inclusiveness are critical elements in creating value for our customers, business partners, employees and shareholders.
What is the gender breakdown in Caverion?
In 2021, 11% of our employees were female. One of our sustainability KPIs is to increase the share of female employees to 15% by 2025.
In Caverion Management Board 21 percent are women and in the Board of Directors 29 percent are women. (end of 2021)
How many of Caverion’s employees are covered by collective bargaining agreements?
In 2021, 91 % of our employees were covered by collective agreements (2020: 85 %).
How does Caverion work to prevent child labour and forced labour?
Caverion operates primarily in developed, transparent markets. Potential risks relate to the uncertainty or unawareness of how subcontractors conduct their day-to-day business.
The risks of breaches in the area of human rights are predominantly located further down in the supply chain. Our Supplier Code of Conduct contains our ethical and compliance requirements to our suppliers. By accepting the Supplier Code of Conduct, our supplier commits to the commonly accepted basic ethical and compliance rules.
What is Caverion’s approach to corporate citizenship?
At Caverion we refer to our purpose as our corporate citizenship: we enable performance and people’s well-being in smart and sustainable built environments. This purpose drives us further.
In 2021, we for example challenged our customers and employees to learn more and act around smart cities and sustainability. Based on the activities, we will make a donation to the John Nurminen Foundation towards efforts to save the Baltic Sea and its heritage for future generations.
Does Caverion do sponsorships?
Caverion is committed to doing business transparently and responsibly, which is reflected in Caverion’s sponsorship guidelines and instructions. The guidelines also reflect company values and compliance with the Code of Conduct. Divisions are responsible for local sponsorship decisions. All sponsorship in the division must be made at Division level, approved by the Head of Division and documented in the minutes of the Division’s Management Board meeting. Caverion does not make financial contributions to political parties or groups or to individual politicians.
How is sustainability governed at Caverion?
Our Board of Directors currently has two committees (Human Resources Committee and Audit Committee), which both handle sustainability related matters depending on the context. The CEO has the overall responsibility for implementing the strategy in the operations.
The Group’s strategy and long-term objectives are one key part of the Board of Directors duties. Hence, the board chair is responsible of leading Caverion CO2 handprint and footprint work, i.e. minimising the CO2 footprint and expanding the positive CO2 handprint through the offering.
Does Caverion have sustainability targets and KPIs?
Yes, we set our first group-wide sustainability targets in 2020. Our target by 2030 is to create sustainable impact through our solutions, with a positive carbon handprint 10 times greater than our own carbon footprint. We have set clear KPIs to reach our targets and will communicate openly about them. Read more about our targets here.
What sustainability-related policies does Caverion have?
Our operations are guided by several national and international guidelines. We respect human rights as set in international treaties.
We also have our own policies and guidelines which guide our ways of doing business and operating. Policies and guidelines most strongly related to sustainability include for example:
How diverse is Caverion’s Board of Directors?
The Human Resources Committee shall ensure diversity within the Board in terms of educational and professional background, gender, age and geographical provenance of the directors. Our Board members represent various industries and age groups and are citizens of five countries across our operating area in Northern and Central Europe. Currently, 2 our of 7 Board members are female, representing 29% of the Board composition.
How diverse is Caverion’s Group Management Board?
Members of the Management Board represent various industries and educational and professional backgrounds and are citizens of six countries across our operating area. Currently, 3 out of 12 Group Management Board’s members are female, representing 25% of the composition.
Is CEO and senior management remuneration linked to sustainability related KPI’s?
We launched our sustainability targets in November 2020 and are now working on the implementation and establishing the target measurement across our Divisions, which prepares us to identify the most appropriate sustainability targets and established measurement to be linked to the financial remuneration in the future.
Does Caverion have long-term incentive programmes for management and employees?
Caverion has long-term share-based incentive schemes for the Group’s senior management and key employees. Matching Share Plan 2018-2022 (MSP) is targeted to Caverion’s senior management. Performance Share Plan (PSP) structure consists of annually commencing individual plans targeted to Caverion's management and selected key employees. Restricted Share Plan (RSP) structure is a complementary share-based incentive structure for specific situations consisting of annually commencing individual plans. Caverion announced the MSP structure on 7 February 2018, the PSP structure on 18 December 2018 and the RSP structure on 18 December 2015 as a stock exchange release.
How does Caverion ensure business ethics and anti-corruption?
Caverion applies a zero-tolerance approach to corruption, bribery, anti-competitive practices, discrimination, harassment, or any unlawful action, as stated in our Code of Conduct.
The following principles guide Caverion’s relationship with its suppliers, subcontractors and other business partners:
The Supplier Code of Conduct contains our ethical and compliance requirements to our suppliers. By accepting the Supplier Code of Conduct, our supplier commits to the commonly accepted basic ethical and compliance rules.
Supplier Code of Conduct sign-off rate in 2021 was 66 %. Our target by 2025 is 90 %.
How does Caverion ensure sustainability in its supply chain?
Caverion continues to establish a common groupwide process for auditing suppliers in order to increase cross-company transparency and consistency.
Through a continuous consolidation of purchases to selected suppliers, Caverion has further reduced the number of suppliers and improved its leverage of the supply base.
We have several common suppliers while a major part of purchasing is done locally in the countries in which we operate using selected suppliers. We value being close to our suppliers and their ability to react rapidly to changing business requirements.
At the end of 2021, 66% of Caverion’s purchase volume was covered by the Supplier Code of Conduct.
Does Caverion have a Supplier Code of Conduct?
Yes, Caverion’s Supplier Code of Conduct is available here. According to the Supplier Code of Conduct, our suppliers, subcontractors, and other business partners shall:
Caverion operates primarily in developed, transparent markets. Potential risks relate to the uncertainty or unawareness of how subcontractors conduct their daily business. The risks of breach in the area of human rights are predominantly located further away in Caverion’s supply chain.
What kind of whistleblowing process does Caverion have?
One of Caverion’s means to monitor compliance is to investigate all reports made through its ethical reporting channel. The channel is a web-based online reporting tool and it is available to all Caverion personnel. All reports and allegations are investigated by the Group’s compliance organisation. In addition, reports can be submitted by email.
How does Caverion ensure information security?
We are committed to continuously developing our information security management to ensure faultless operation of our businesses. Caverion has been awarded an ISO/IEC 27001 information security certificate for its common IT services, indicating that we want to invest in information security management.
Caverion regularly evaluates information security risks and initiates mitigating action to manage identified risks. We conduct several information security audits per year. We deployed technical systems to comprehensively prevent and identify security incidents and to respond appropriately.
All Caverion employees must be familiar with the information security policy and guidelines, comply with them and complete annual training.
How does Caverion ensure data protection in its operations?
The aim of our data protection is to ensure that the processing of personal data does not endanger the rights and freedoms of the individual. This is an essential part of our operations, as defined in our data protection policy. We are committed to General Data Protection Regulation (GDPR) including: