ESG IN SELVAAG BOLIG
Sustainability has been a key component of Selvaag’s DNA since the beginning in 1948, when the focus was to build homes at a price that as many as possible could afford. With climate change, the environmental crisis and growing differences, both the area of responsibility and the efforts of the company are expanding. Selvaag Bolig considers an increased focus on sustainability in all phases of the business to be important, and therefore strives to make ESG (Environment, Social & Governance) an integrated part of the business. This is, among other things, to ensure that enough housing is built at a price that as many people as possible can afford to pay, that it is built with a low climate impact, that everything that is built facilitates a sustainable lifestyle, and that decent working conditions and human rights are safeguarded throughout the value chain.
The work with ESG is extensive and challenging. Among other things, there is a lack of standardised parameters for measurements, there are challenges in obtaining correct data from suppliers, and there are aspects concerning the implementation of regulations that need to be clarified. However, the company sees business opportunities in the transition to a low-emission society, and believes that handling ESG well is a prerequisite for the company to be successful in the future.
All the company’s development projects in Norway and Sweden are subject to strict public requirements for construction, quality and responsible operations. In addition, there are more requests for information about how the company controls its impact on the environment and society in general. Examples of this are the EU's regulations for sustainability reporting (CSRD), the Transparency Act, the EU's taxonomy and new requirements in Norwegian building regulations (TEK17). In the past year, Selvaag Bolig has therefore made a significant effort to meet expectations for non-financial reporting. This includes, among other things, the systematisation and digitisation of data acquisition, implementation of KPIs and targets, and ensuring compliance internally and in the supply chain.
In 2022, Selvaag Bolig delivered 585 homes. There are large variations in both housing sizes and location. However, the homes are mainly apartments in large projects in the company's core areas, and the average size is around 70 square metres of living space. There were no known breaches of laws, regulations or guidelines in 2022.
ABOUT THIS REPORT
This report has been prepared with reference to The Global Reporting Initiative (GRI) Standards for the reporting year 2022. The report has been prepared by Selvaag Bolig's executive management and processed and approved by Selvaag Bolig's board. The sustainability report has not been verified externally, but has been reviewed and quality assured by a third party. External verification will be considered in 2023.
Scope and limitations
The report includes all business areas in Selvaag Bolig ASA and its subsidiaries. This corresponds to the areas covered in the company's financial reporting.
Contact
For questions or feedback about this report, contact executive vice president communications, sustainability and corporate strategy, Kristoffer Gregersen: kgr@selvaagbolig.no
GOVERNANCE
Selvaag Bolig's board is responsible for compliance with all relevant government requirements, legislation and statutory regulations. The board has established overarching principles for corporate governance, which are enshrined in the company’s key guidelines and procedures. The principles apply to the board, CEO, all managers, employees and partners of all companies belonging to the Selvaag Bolig group. The principles are followed up in planning and management systems, and in the daily operation of the company. For more information, refer to a separate chapter in this annual report.
The coordinating responsibility for ESG is placed with the executive vice president for communications, sustainability and corporate strategy. ESG is a central theme at the board's annual strategy seminar with the company's management, where targets for the coming business year are set, among other things. In 2022, a ESG strategy was developed. The board receives reports from the company's management in three board meetings during the year, and the adoption of KPIs and assessment of target achievement takes place annually. The board's audit committee also receives ongoing information on ESG work from the company's management.
Governance documents:
- Ethical guidelines
- Values manual
- Supplier code of conduct
- Human rights policy
- Environmental policy
- Guidelines for IT security and GDPR
- Guidelines on pay for senior executives
Risk
The company carries out an extensive two-year risk survey where a number of ESG-related topics are handled. The risk mapping was last carried out in 2023. See the separate chapter on risk in the chapter on corporate governance.
Reputation
Through a stakeholder survey, Selvaag Bolig surveys its reputation with politicians, administrative staff in municipalities, owners and investors, partners and suppliers, and the media. These have been selected based on who has the greatest influence on the company's operational parameters and the company's reputation. They are policy and decision makers for development in the core geographical areas of the company, for the value of the company and the company's reputation.
Themes considered in the survey are trust, management, competence, organisation, innovation, sustainability, communication and openness. The peers selected for comparison can all be classified as the most serious players in the market, and Selvaag Bolig is ranked highest on several of the parameters and top three on all.
The survey shows that Selvaag Bolig has a good starting point to secure good operational parameters and gain the acceptance required to carry out major projects. On the subject of sustainability, there are no surveyed groups who feel that any actor has taken a position.
Incentives
Management incentives for ESG have been introduced. The entire company's executive management has parts of its variable salary linked to ESG. For the business year 2022, this included, among other things, compliance, development of an overall ESG strategy, as well as definition of KPIs and goals. In the long term, the incentives will be linked to the achievement of goals. The company must both exploit opportunities and take corrective measures if necessary. The company's project management also has ESG KPIs associated with its variable salary.
Quality management of projects
Selvaag Bolig has a quality management system that safeguards and ensures quality and statutory obligations in all phases of project development. The system consists of checklists and decision documents that must be followed in the projects' respective phases, from acquisition to planning, receiving tenders, implementation and the guarantee period. Examples of elements that are considered are costs, environment, architecture, health, safety and working environment (HSE) and housing quality. It is a requirement that the system is used in all project development, and the chief operating officer (COO) is in charge of the system. Decision documents are acknowledged by the project manager and reviewed by the COO.
WHISTLEBLOWER ROUTINES
Selvaag Bolig wants to receive notifications about censurable conditions which violate laws or the company’s ethical guidelines. Examples of censurable conditions could be danger to life or health, danger to climate or the environment, corruption or other financial crime, abuse of authority, unsatisfactory working environment, including harassment and breach of personal data security.
Selvaag Bolig strives to have a threshold as low as possible for a whistleblower to be able to send a notification about censurable conditions. The company has thus established a whistleblowing office which is available to its employees and for external stakeholders. The procedures for sending a notification are available on the company’s home page and intranet. Anonymous notifications may be sent. There are routines for reporting to the company’s board.
The company has informed employees and suppliers about the notification routines and possibilities, and encourages all censurable conditions to be reported. Selvaag Bolig did not receive any whistleblowing notifications in 2022.
DIGITALISATION OF DATA
Selvaag Bolig believes that one of the main challenges for the company's non-financial reporting is the increased scope of parameters to be measured, as well as the uneven quality of reported data. During 2022, Selvaag Bolig has therefore invested in a digital system that enables easier collection, quality assurance and availability of data. Digitisation includes, among other things, HSE data from all construction projects and climate accounting. It also facilitates a systematic assessment of how suppliers and partners handle social conditions and human rights in their own businesses and supply chains. The system was put into use in January 2023.
STRATEGIC PRIORITIES
An important task in 2022 has been to prepare an ESG strategy with clear measurement parameters and goals. The main purpose of the strategy is to ensure that Selvaag Bolig contributes to comprehensive, long-term and sustainable value creation in society, that the business model is adapted to a climate-neutral economy, and that the company's work with social conditions and the environment provides a competitive advantage.
An important task in 2022 has been to prepare an ESG strategy with clear measurement parameters and goals. The main purpose of the strategy is to ensure that Selvaag Bolig contributes to comprehensive, long-term and sustainable value creation in society, that the business model is adapted to a climate-neutral economy, and that the company's work with social conditions and the environment provides a competitive advantage.
An important task in 2022 has been to prepare an ESG strategy with clear measurement parameters and goals. The main purpose of the strategy is to ensure that Selvaag Bolig contributes to comprehensive, long-term and sustainable value creation in society, that the business model is adapted to a climate-neutral economy, and that the company's work with social conditions and the environment provides a competitive advantage.
Stakeholder dialogue and material topics
The strategy is based on a materiality analysis that was revised in autumn 2022 in accordance with the latest GRI standard, as well as the principle of double materiality. This means that the reporting and selected KPIs both include the impact the company has on society and stakeholders, as well as how ESG issues affect the company's opportunity for long-term value creation (ESG: Material Topics). Both internal and external stakeholders were consulted in the work, including experts on working conditions, finance and climate and environment. Selvaag Bolig is a member of and has an ongoing dialogue with Norwegian Green Building Council. Selvaag Bolig has considered the following topics as material:
| Climate and environment | Social conditions | Governance conditions |
Greenhouse gas emissions Climate-related risk Material use Loss of biological diversity Waste and pollution Energy-efficient buildings | Health and safety on construction sites Social dumping Human rights in the supply chain Impact on local communities | Ethics in the supply chain Ethics in own organisation |
Selvaag Bolig has refined its role as a developer, and projects are therefore built by subcontractors. The company's biggest impact on the climate and environment, society and the economy occurs in the development of the housing projects and in the supply chain. The 2022 analysis covers more topics than before.
The UN’s Sustainable Development Goals
The UN’s Sustainable Development Goals provide a working plan for efforts to eliminate poverty, fight inequality and halt climate change by 2030. They comprise 17 main goals and 169 subsidiary targets. Selvaag Bolig is working on relevant topics, including the UN’s “Framework Convention on Climate Change” (Paris agreement).
The UN’s Sustainable Development Goals provide a working plan for efforts to eliminate poverty, fight inequality and halt climate change by 2030. They comprise 17 main goals and 169 subsidiary targets. Selvaag Bolig is working on relevant topics, including the UN’s “Framework Convention on Climate Change” (Paris agreement).
The UN’s Sustainable Development Goals provide a working plan for efforts to eliminate poverty, fight inequality and halt climate change by 2030. They comprise 17 main goals and 169 subsidiary targets. Selvaag Bolig is working on relevant topics, including the UN’s “Framework Convention on Climate Change” (Paris agreement).
| Goal | 8: Decent work and economic growth | 11: Sustainable cities and communities | 12: Responsible consumption and production | 13: Climate action |
| Sub-goals | 8.8 | 11.3, 11.4, 11. 7 | 12.2, 12.5 | 13.1, 13.2 |
| Important topics | ||||
| Health and safety on construction sites | Climate-related risk | Material use | Greenhouse gas emissions | |
| Social dumping | Waste and pollution | Waste and pollution | Energy-efficient buildings | |
| Human rights in the supply chain | Loss of biodiversity | |||
| Ethics in the supply chain | Impact on local communities | |||
| Ethics in own organisation | ||||
| Contribution | ||||
| Ensure good and fair working conditions on construction sites, in supply chains and in the business | Efficient use of land in urban areas and at hubs Safeguard and increase biological diversity Reduce the risk of physical damage to buildings and people | Reduce waste Increase recycling Reduce material use | Reduce emissions in Selvaag Bolig’s value chain Build energy-efficient homes | |
| Goals for Selvaag Bolig | ||||
| 0 accidents with personal injuries | No new plot purchases of cultivated land (except at hubs) from 2023 | Reduction in waste | Energy label for completed homes: B | |
| 0 cases of social dumping/ labour crime | Assess physical climate risk in all projects | Sorting rate: > 75% | Scope 1 and 2 must be climate neutral by 2030 | |
> 40% of each gender in the entire company > 40% of each gender in the company’s management | Assess biological diversity in all new projects | Scope 3: 20% lower emissions for completed homes than the current BREEAM reference in the period 2023-2025, and 30% lower by 2030 | ||
Climate and environment (E)
The company’s guidelines for the environment state that Selvaag Bolig must always seek environmentally friendly solutions that can contribute to reduced climate emissions in the construction process and throughout the building's lifetime. All the company’s projects must be built in accordance with Norwegian and European building regulations. These set strict requirements for material selection and energy efficiency in the homes, and for operations in general through the construction process.
SELVAAG BOLIG’S APPROACH
Selvaag Bolig prioritises building area-efficient homes in urban areas experiencing expansion pressures. These are areas where it is possible to transform outdated commercial buildings and industrial areas into high-quality residential and urban areas with green outdoor areas and good urban qualities. The company's biggest footprint on the climate and the environment is in the supply chain and the biggest emissions come from the materials used in the buildings. Reducing negative impacts requires good planning and cooperation between Selvaag Bolig as the developer and the contractors who carry out the construction.
The approach affects which suppliers are chosen, requirements that are set and routines for follow-up. Contracts clearly require contractors to operate in line with the laws and regulations in force at all times and in accordance with the company's guidelines and code of conduct. No violations of these were discovered during 2022.
The company performs thorough due diligence assessments about climate and environment throughout the project process, from acquisition of land and planning to the choice of contractor and development. Ground conditions, biological diversity and available energy sources are mapped early to decide how a project can be designed. All major projects close to urban centres also have an environmental plan that defines overall green goals and addresses the project's environmental footprint before work begins. This includes, among other things, solutions for energy-efficient buildings, choice of materials, waste handling and interaction with the surroundings. In addition, assessments are made about how the development can stimulate residents and users to choose a sustainable lifestyle, for example through the sharing of common areas, carpools and energy solutions.
In order to ensure good environmental management in Selvaag Bolig's construction projects, it was decided in 2021 that all projects from 2022 onwards will use BREEAM NOR pre-analysis as a management tool. BREEAM is an environmental certification system for buildings and is the construction industry's tool for measuring environmental performance. The certification is based on documented environmental performance in nine categories related to climate and the environment. In each category there are topics with criteria or measures that can be taken to reduce the environmental impact from the project. BREEAM-NOR certifies projects in five levels: Pass, good, very good, excellent and outstanding. It is assumed that the BREEAM framework will be largely compatible with the reporting requirements related to the EU's taxonomy for sustainable activities and the EU's upcoming Sustainability Reporting Framework (CSRD).
The requirement for pre-analysis is included in the company's quality management system. The pre-analysis will compare the projects with the qualities required in the various BREEAM certification levels and the EU's taxonomy. In this way, Selvaag Bolig will ensure that ambitions are met through concrete measures in the projects. In 2022, Selvaag Bolig started the development of its first BREEAM-certified project. Lille Løren park in Oslo shall be certified as BREEAM Good. Any requirement for certification for other projects will be assessed based on experience from the construction of Lille Løren park.
CLIMATE RISK
In 2021, Selvaag Bolig undertook a mapping of the company’s climate risks and opportunities, and the company’s management of them in accordance with the Task Force on Climate-related Financial Disclosures (TCFD). The assessment concluded that the property sector as a whole has a significant exposure to both physical risk and transition risk, and has defined which areas are significant for Selvaag Bolig.
The construction and property industry accounts for significant emissions in a life-cycle perspective, and must therefore expect changes in regulations and the market development in the transition to a low-emission society. At the same time, the industry is exposed to the risk of physical climate change, where assets can be lost or suffer significant losses.
As Selvaag Bolig develops homes and commercial premises which are taken over by the buyer on completion, physical climate risk primarily applies to the selection of land. Topics such as extreme weather, sea level rise, storm surges, rainfall, landslides, frost and drought are mapped in all projects through a risk and vulnerability analysis (RVA analysis). The analysis reveals conditions that are important for whether the area is suitable for development purposes, and any changes in such conditions as a result of planned development. Elements that are mapped follow the theme guide for social security in spatial planning from the Norwegian Directorate for Civil Protection (DSB).
GREENHOUSE GAS EMISSIONS
About 40 per cent of the world's greenhouse gas emissions are linked to the construction, use and demolition of buildings. On 1 July 2022, changes were introduced in the Norwegian building regulations (TEK17) which will help to reduce these. Among other things, requirements have now been introduced for greenhouse gas accounting for apartment buildings and commercial buildings. The rules have a transitional arrangement of one year, and for building applications submitted before 1 July 2023, the property developer can thus choose to follow the new provisions. In practice, this will mean that the requirement for climate accounting will apply to buildings that are completed from 2025 at the earliest, taking into account the construction time.
However, Selvaag Bolig decided to conduct climate accounting in 2021, which includes both emissions from Selvaag Bolig's administration, and emissions in the buildings' value chain, construction and use phase. The company has worked further through 2022 to improve data quality, adjust measurement methods to the new regulation and establish requirements for suppliers.
Emission-free construction sites
Oslo municipality has stated a goal that all building and construction activities in the municipality must be emission-free by 2030, and several municipalities have announced that there will be requirements for emission-free construction sites. This means that all construction machinery must be electric. Emissions from construction machinery make up a very small part of Selvaag Bolig's total emissions.
Targets for emission reduction
In 2022, Selvaag Bolig set targets for climate neutrality by 2030 for both indirect and direct emissions (Scope 1 and 2). This will be done through cuts in emissions from operating assets where the organisation has operational control (Scope 1) and indirect emissions linked to purchased energy (Scope 2), as well as carbon compensation (carbon offsets). The method for offsetting has not yet been defined. However, almost all of the company's emissions come from emissions from purchased goods and services (Scope 3). The reference project used in BREEAM-NOR v. 6.0 is set as a starting point, and Selvaag Bolig's aim is that the company's completed homes must have 20 per cent lower emissions per GFA/year than the reference project in the period 2023-2025, and 30 per cent lower in the period 2025-2030.
Results 2022
Selvaag Bolig wants to be open about its emissions and follows the GHG protocol method for calculations. The company's climate accounting includes Selvaag Bolig's operations in Norway and Sweden, including offices and viewing centres.
The total accounts (Carbon accounting report 2022) show that 99.86 per cent of the company's emissions come from the supply chain and are linked to the development of projects. The value chain emissions of steel and concrete account for around 73 per cent of the total climate impact, and the company is therefore focusing on reducing emissions from these input factors.
The emissions linked to Selvaag Bolig's administration (Scope 1) accounted for 0.1 per cent of the total emissions. These emissions increased from 16.8 tCO2e in 2021 to 25.3 tCO2e in 2022. Most of this increase is in the use of fuel for cars, which may be related to fewer restrictions related to physical meetings in 2022 compared to 2021.
Emissions related to electricity consumption (Scope 2), on the other hand, had a significant decrease from 2021 to 2022. The decrease is also due to the fact that Selvaag Bolig has scaled down the size of some regional offices, and that the emission factor for Norwegian electricity decreased by 30 per cent. This is because less natural gas and more hydropower was used in Norwegian electricity production.
The number of homes Selvaag Bolig completes varies significantly from year to year. The total indirect emissions from input factors (Scope 3) do not thus reflect the company's work with emission reduction. Selvaag Bolig has therefore included emissions per completed GFA and completed GFA/year as KPIs. This makes it possible to show the company's emissions per square metre of housing that has been completed. The KPI "emissions BTA/60 years without basement and foundations" makes it possible to compare the company's emissions with the reference project mentioned above. This shows emissions per completed square metre of housing distributed over the life of the building. In 2022, Selvaag Bolig's projects had 25 per cent lower emissions than the reference project.
As the development of buildings in Norway is heavily regulated, including requirements for energy use and materials, the levels are in line with the emissions of comparable players. In the future, the company will work to reduce the projects' emissions, and at all times monitor new construction technical solutions and construction methods that reduce unnecessary material use and make it possible to increase the proportion of climate-friendly materials.
Key indicators
| Goal | Year 2022 | Year 2021 | Year 2020 | Goal |
|---|---|---|---|---|
| Direct emissions (Scope 1) (tCO2e) | 25.3 | 16.8 | Not measured | Climate neutral by 2030 |
| Indirect emissions from energy consumption, market-based (Scope 2) (tCO2e) | 164.9 | 219.7 | Not measured | Climate neutral by 2030 |
| Indirect emissions from energy consumption, location-based (Scope 2) (tCO2e) | 4.0 | 4.4 | Not measured | Climate neutral by 2030 |
| Indirect emissions from input factors. (Scope 3) (tCO2e) | 25 556.04 | 20 104.3 | Not measured | 2023-2025: 20% lower than reference 2025-2030: 30% lower than reference |
| - | ||||
| Emissions GFA (kgCO2e) with basement and foundation | 342.67 | 298 (estimated) | Not measured | - |
| Emissions GFA/50 year (kgCO2e) with cellar and foundation | 6.7 | Not measured | Not measured | - |
| Emissions GFA/60 year (kgCO2e) without basement/foundation | 6.0 | Not measured | Not measured | 2023-2025: 20% lower than ref. (8.0) 2025-2030: 30% lower than ref. (8.0) |
ENERGY EFFICIENCY
According to the International Energy Agency (IEA), the operation of buildings and the construction sector together account for 30 per cent of global energy consumption and 27 per cent of energy-related emissions in the world. Norway has among the world's strictest requirements for new buildings, and with access to green energy, this is not considered to have a significant direct impact on the climate and environment. In contrast, energy saving in buildings can release energy that can contribute to emission reduction in other sectors. Furthermore, energy efficiency is a criterion in the EU's taxonomy. The energy situation in Norway and Europe in 2022 was also a reminder that energy-efficient homes are cost-saving for homeowners, and Selvaag Bolig has experienced increased demand for energy-efficient homes in the past year. Energy efficiency is therefore strategically important for the company. Energy efficiency is included in early phase calculations for each individual project and is managed at the project level. In addition, the building's need for supplied energy is calculated. Renewable energy sources must always be considered, and the energy profile of planned buildings is an integral part of the decision-making process.
Goals for energy efficiency
Selvaag Bolig aims for the company's homes to have a maximum net energy requirement of 95 kWh per m2/heated utility floor space. This is taken care of through the requirements set out in Norwegian building regulation TEK17. In 2022, the average energy demand in the homes that were completed was 93 kWh per m2/heated utility floor space for whole buildings including common areas.
However, Selvaag Bolig wants to reduce energy requirements in completed homes as this reduces emissions and makes it cheaper for customers to operate their homes. The company therefore aims for energy label B in all homes. For a flat of 75 square metres, the upper limit for supplied energy is 108.33 kWh per m2 of heated area inside apartments. In 2022, all the company's homes had an energy label of A, B, C. The fact that some homes have an energy label of C is due to the fact that these are exposed to a larger proportion of the building's outer wall and roof surface. In 2022, 30 per cent of the homes had energy label A. This is because homes were completed in the Landås project in Asker municipality, where heating wells are used. Selvaag Bolig will in future strive to reduce the proportion of homes with an energy label lower than B, as well as adopt solutions that reduce the homes' primary energy needs.
Key indicators
| 2022 | 2021 | 2020 | Goal | |
|---|---|---|---|---|
| Net energy demand (kWh per m2/heating utility floor space in completed home) | 93 | 92 | Not measured | ≤ 95 kWh per m2/heated utility floor space in completed home |
| Proportion of completed homes with Energy Labelling A-D | A: 30% B: 38% C: 30% D: 2% | Not measured | Not measured | Minimum energy label B |
RESOURCE USE IN SELVAAG BOLIG’S PROJECTS
According to Circle Economy, the construction and demolition of buildings accounts for almost one third of the total material consumption in the world and generates an approximately equal share of waste. Furthermore, the extraction of metal and non-metallic minerals such as sand and gravel for construction is a cause of climate disasters and a threat to biological diversity. Production of cement, steel and glass are water-intensive processes that can contribute to water shortages.
Material consumption is also a major source of emissions and thus a driver of climate change. Cement production alone accounts for approximately 7 per cent of global CO2 emissions. 98.63 per cent (including transport) of Selvaag Bolig's emissions are linked to material consumption and 73 per cent alone originate from steel and concrete.
Selvaag Bolig uses significant amounts of CO2-intensive materials and recognises that both the industry and the company have significant potential to reduce negative impacts on climate and the environment. The company believes that the solution lies in a more circular business model that reduces the consumption of materials, increases reuse and reduces waste.
According to building regulations from July 2023, new buildings must be built so that they can later be dismantled, and materials must be mapped for re-use during major works in existing buildings. An exception has also been made to the requirement for documentation for the sale of used building materials that are taken out of a construction site, provided that no significant changes have been made to them if they are to be used again in a construction site. The exception is intended to make it easier to trade in used building materials while at the same time meeting requirements for health, safety and environment in construction. Selvaag Bolig considers the exception to documentation to be positive as this will enable increased reuse in new housing projects. The rules have a transitional arrangement of one year, and for building applications submitted before 1 July 2023, property owners can thus choose to follow the new provisions.
Goal for resource use
Selvaag Bolig works purposefully to reduce material use and waste through better planning and ordering to general contractors, as well as mapping opportunities for the reuse of existing building elements. The target has been set to have a higher sorting rate than 75 per cent. The KPI and targets for indirect emissions from input factors are to be reached through increased reuse of building elements and increased use of materials with lower CO2 intensity. Examples of this are low-carbon concrete and wood, which have significantly lower emissions than ordinary concrete.
Results and reflections
Selvaag Bolig has spent the last two years mapping material consumption in order to understand the scope and opportunities to reduce consumption and the impact on the climate. The company has defined KPIs and targets related to resource use. KPIs and targets will be sharpened in 2023 as the framework is clearer. More data has been collected which provides a starting point for reduction, and the company has established routines, including by doing annual screening, which give greater insight into negative environmental impacts in the supply chain.
Selvaag Bolig mainly builds projects in urban areas with existing buildings that are to be replaced. On one of the construction stages at Skårerbyen in Lørenskog municipality, the base plate of an existing building was reused. This contributed to the total emissions from the project being significantly lower than the average of the projects measured in 2022. The emissions from Skårerbyen were 237.82 kg CO2e per utility floor space compared to 342.67 kgCO2e per utility floor space, which was the average for all the projects measured in 2022.
Key indicators
| 2022 | 2021 | 2020 | Goal | |
|---|---|---|---|---|
| Waste (tonnes) | 3 362.2 | 4 934.2 | Not measured | |
| Sorting rate (per cent) | 91.2 | 87.5 | 90.3 | > 75 |
| Material use (tonnes) without basement/foundation | 145 603 | 145 115 | Not measured | Increased reuse of building elements and increased use of materials with lower CO2 intensity |
BIOLOGICAL DIVERSITY
Loss of biological diversity is increasing globally, and poses a threat to the planet's carrying capacity. The Intergovernmental Science-Policy Platform on Biodiversity and Ecosystem Services (IPBES) stated in 2019 that the reduction of species diversity is happening ten to a hundred times faster today than in the last 10 million years. 87 percent of the threatened species in Norway are threatened due to land changes such as deforestation, drainage and construction.
Selvaag Bolig primarily builds homes in urban areas where there are already buildings. This often means that outdated industrial and commercial buildings and paved areas are transformed into residential areas with green areas that facilitate increased biological diversity. Examples from completed and planned projects are the construction of blue-green infrastructure in courtyards and parks, wildly growing meadows and perennials, pine and heather to establish an urban forest environment, bird boxes and insect hotels in trees, as well as planting fruit trees and berry bushes.
However, Selvaag Bolig recognises that the company's operations can negatively affect biological diversity. Routines have therefore been established so that all new projects early on map and assess the risk of loss of biological diversity, or other conditions that may deteriorate nature, in connection with the purchase and development of plots of land. In 2022, Selvaag Bolig's board decided that the company will not buy plots of arable land. Exceptions to this apply if the plot is regulated for residential purposes and/or is located at a hub and the development is socially and environmentally profitable.
During the construction process, there is a risk that the discharge of stormwater and chemicals could lead to water pollution in nearby areas. This could have a negative impact on both people and nature. The company follows the requirements of the pollution regulations, municipal regulatory plans for handling stormwater and the theme guide for civil protection in spatial planning from the Norwegian Directorate for Civil Protection (DSB). Compliance is ensured through the company's quality management system and contracts with suppliers. This means, among other things, that the contractor must, when using chemicals hazardous to health, document that a risk and substitution assessment has been carried out, and that statutory safety data sheets for chemicals to be used have been submitted to the construction industry's substance directory. There was no water pollution from the company's construction projects in 2022.
Social conditions (S)
Selvaag Bolig's ambition is to build homes that contribute to an inclusive local community and a sustainable lifestyle. The housing projects are fashioned to make it possible for everybody, at every age, regardless of functional ability, to live well and in an environmentally friendly way.
The company builds large projects with a wide selection of housing types and is working to develop housing that as many people as possible can afford to buy. In 2022, the average home from Selvaag Bolig cost around NOK 5 million, and the average size was around 70 square metres. This contributes to more people having the opportunity to buy their own home.
The development of city and housing projects often takes many years, and there are several different affected parties involved in such processes. Selvaag Bolig's handling of projects affects the local population around the construction projects, contractors and suppliers who work on the construction sites, and future users of the areas being developed. A prerequisite for success is the well-being of the employees in all the companies that contribute to the development and good working conditions for them. At the same time, the needs of existing and new users must be taken care of.
SELVAAG BOLIG’S APPROACH
Large development projects have deliveries from very many national and international suppliers, which entails an increased risk of human rights violations and work-related crime. It is the company's responsibility to ensure responsible processes throughout the projects' total development period. Selvaag Bolig must be one of Norway's most attractive workplaces and all employees must have good development opportunities.
Selvaag Bolig's work to ensure that human rights and decent working conditions are safeguarded throughout the value chain is anchored in the company's ethical guidelines, supplier declaration and human rights policy. These governing documents describe how the company works to ensure good business practices in line with the UN's guiding principles for business and human rights, as well as the UN Global Compact's ten principles.
Selvaag Bolig's guidelines and procedures for responsible operation are:
- Ethical guidelines
- Supplier declaration (code of conduct)
- Human rights policy
- Guidelines for anti-corruption
- Procedures for reporting objectionable conditions
The Transparency Act
Selvaag Bolig is a pure residential property developer that controls the entire value chain from acquisition of land to sale of turnkey homes. The company does not have an in-house construction arm but uses contractors for each project. It is the company’s responsibility that partners follow applicable legislation and statutory regulations for working conditions and safety.
The Transparency Act entered into force in 2022, and requires companies to have procedures and measures in place to ensure human rights and decent working conditions in the value chain. The risk of a negative impact on people is reduced through legislation and regulation, but also by Selvaag Bolig's experience and systematic approach to project development. In the day-to-day work, this is primarily ensured through the company's control routines and management systems, which consist of management documents with checklists and routines for mapping and execution in each phase of project development.
Selvaag Bolig has taken a number of measures in 2022 to ensure human rights and decent working conditions in the organisation. The company has engaged an independent third party to identify key human rights. By identifying key human rights, Selvaag Bolig will be able to better prioritise how they are handled in order to reduce actual or potential negative impacts.
The risk of violations of the most important human rights are in these parts of the company’s value chain:
- Health and safety on the construction site
- Social dumping and use of foreign labour
- Use of subcontractors
- Purchase of materials
Large development projects have extensive and complicated supply chains, which entail an increased risk of labour crime and violations of human rights. Selvaag Bolig aims to gain better insight into its supply chain and has therefore introduced routines for screening new and existing suppliers and partners.
In 2022, Selvaag Bolig mapped and categorised existing suppliers and partners according to the risk of them violating key human rights. 30 of the company's approximately 1 350 suppliers and partners in 2022 will be screened during 2023. The companies to be screened in the first instance are mainly turnkey contractors and suppliers to projects that are carried out with subcontracts managed by the construction clients. These have been selected because they are suppliers in areas where the greatest risk of human rights violations has been identified. See explanation of due diligence assessments for further information.
A working group has been set up to continue the work of mapping the value chain, reviewing suppliers who have been screened, improving and implementing routines for non-conformance management, as well as assessing new suppliers and partners. The working group consists, among others, of the legal director, project directors and the executive vice president for communications, sustainability and corporate strategy.
SAFE CONSTRUCTION SITES
Construction is one of the most accident-prone industries in Norwegian working life, and health and safety is therefore an important topic in the construction industry. Workplace crime and social dumping are violations of human rights, and a recurring problem in parts of the industry.
In 2022, Selvaag Bolig was the construction client for 19 construction projects, and the company's goal is that it should be safe to work on these. The company has declared zero tolerance for workplace crime and social dumping, and aims for zero harm to people and the environment.
Health and safety
The company’s guidelines for health, safety and the environment (HSE) are based on requirements in the Construction Client Regulations and Internal Control Regulations. As the construction client, it is Selvaag Bolig’s responsibility to create the project's HSE plan and appoint the construction client’s representative and coordinators in the preparation and execution phase.
HSE is a fixed item on the agenda at the construction client meetings that are carried out on average twice a month in projects in the construction phase, and the turnkey contractor has its own routines for implementation and follow-up of HSE work on the construction site. In order to minimise the risk of injuries and adverse events, safe job analysis (SJA)* is also carried out for complicated work tasks.
There is no requirement for workers to have a trade certificate, but the company prioritises contractors who have an apprenticeship scheme, as well as schemes for trade and master craftsman's diplomas, to ensure that skills are developed and to help recruitment.
Labour crime and social dumping
All Selvaag Bolig's suppliers are mapped according to relevant social criteria. The contracts awarded set clear requirements for suppliers and subsuppliers to operate in compliance with the legislation and statutory regulations applicable at any given time, including those applying to pay and working conditions. All work done in Norway by suppliers and/or partners complies with Norwegian collective pay agreements and legislation, and contractors must be able to document at all times that the labour force used on the building sites is legal. In line with the building owner's regulations and the duty to carry out inspections, Selvaag Bolig carries out regular inspections to ensure that the contract conditions are complied with. On average, safety rounds and checks are carried out on the company's construction sites every other week.
Control routines
Both the construction client and contractor (also using an independent third party) carry out inspections to ensure that applicable legislation and statutory regulations are followed. All damage and unwanted incidents are registered continuously and reported to the construction client. Both Selvaag Bolig’s executive management and the board receive HSE reports from all projects every quarter, and any serious incidents are reported immediately.
The HSE routines include safety rounds that will ensure that the construction site is operated with adequate safety in accordance with plans and routines. In addition, random spot checks are carried out to fulfil “duty to see”** obligations, to ensure that wage and working conditions on the construction sites are in line with current regulations.
Results for 2022
Selvaag Bolig has not uncovered any violations of the Working Environment Act or human rights in 2022. There was a decrease in the number of adverse events at Selvaag Bolig's construction sites from the previous year. It is likely that this is related to a normalisation after extra work pressure as a result of quarantine periods and entry restrictions during the corona pandemic.
Key indicators*
| 2022 | 2021 | 2020 | Goal | |
|---|---|---|---|---|
| Suppliers mapped vs. social criteria | 100% | 100% | 100% | 100% |
| Number of construction sites/projects | 19 | 19 | 19 | - |
| Personal injuries with absence | 2 | 3 | 3 | 0 |
| Personal injuries without absence | 24 | 16 | 15 | 0 |
| Adverse incidents | 2 666 | 4 094 | 3 059 | - |
| Safety rounds completed | 330 | 374 | 373 | - |
| SJAs** performed | 175 | 168 | 191 | - |
| Random spot checks, duty to see***, contractor | 32 | 58 | 50 | - |
| Random spot checks, duty to see, construction client | 14 | 26 | 9 | - |
| * Error in annual report for 2021: The corresponding table in the 2021 annual report showed figures for the projects’ accumulated life span at the end of the respective years, rather for the years in isolation. | ||||
| ** Safe Job Analysis (SJA): This is a method to systematically go through complicated or risky job tasks to reduce or remove risk before the job is performed. SJA does not replace HSE risk evaluations or Risk and Vulnerability Analysis (RVA) but is a supplement in situations where those methods do not cover a specific job task or activity to be performed. The number of SJAs performed will of course vary depending on the job tasks at hand. | ||||
| *** According to Regulations on information and duty of care and right to access, the main supplier has the duty to see that wage and working conditions at subsuppliers are in accordance with applicable general regulations. For more information: www.arbeidstilsynet.no/regelverk/forskrifter/forskrift-om-informasjons--og-paseplikt-mv/2/6/ | ||||
INCLUSIVE LOCAL COMMUNITIES
Selvaag Bolig aims to create inclusive local communities and facilitate a sustainable lifestyle for satisfied homeowners. Selvaag Bolig acknowledges that the company's construction projects can have a negative impact on the local community. Increased traffic, noise in connection with development, protection of biological diversity, access to green areas, the need for recreational areas and the preservation of existing buildings are typical aspects that the stakeholders are concerned about.
Regardless of the size of the project, the company sees to it that all affected parties are involved at an early stage, so that the development has as few negative consequences as possible, both during construction and when it is completed. Involvement ensures input and that the area is developed holistically.
Function and aesthetics
Selvaag Bolig must facilitate so that everybody, at every age, regardless of functional ability, can live well and in an environmentally friendly way. This means having social meeting places outside and inside, ensuring that residents are within walking distance of everything they need on a daily basis, and that the building projects have a high aesthetic quality.
The architecture must therefore take account of the surroundings around the respective projects, so that the buildings, the landscape architecture and the nearby natural areas are in harmony. Architecture is an integral part of Selvaag Bolig's project management system, and it is required, among other things, that recognised architects are used and that participation processes are carried out in the development phase.
Results in 2022
During the year, Selvaag Bolig carried out dialogue and participation processes in all projects that were under development, but where construction had not yet started. This was in the form of dialogue with politicians and planning authorities and/or in participation meetings with other stakeholders. The company has also been involved in a number of debates about architecture. The company received no notifications about negative impacts in 2022.
Key indicators
| 2022 | 2021 | 2020 | Goal | |
|---|---|---|---|---|
| Number of notifications | 0 | 0 | 0 | - |
CUSTOMER SATISFACTION (CSI)
The customer satisfaction index (CSI) is a measure of how satisfied the company's customers are, and an assessment of the quality of the company's products and delivery. This is important for the company's brand and reputation, and affects sales, the possibility of collaboration with other actors and the regulatory processes in the municipalities. Selvaag Bolig works systematically with customer satisfaction throughout the customer journey, from marketing and sales to the construction period and through the guarantee period. The company has a dedicated department that follows up customers from the signing of the purchase contract until the end of the five-year guarantee period after the home has been completed. Customer satisfaction is measured using the Prognosesenteret's CSI surveys both at handover time and after one year. The measurement includes the nine categories "value for money", "loyalty", "expectations", "reliability", "the home", "employees", "information", "design and decoration" and "outside the home". The CSI score is calculated on the basis of questions about the customer's assessment of the company as a whole and whether the company has met the customer's expectations.
Results 2022
Selvaag Bolig's goal is to achieve a CSI when handing over the home that is on par with or higher than the average for the industry. For 2022, Selvaag Bolig achieved a CSI score of 75 per cent, which was one percentage point higher than the sector (74). The company's Pluss projects in isolation achieved a CSI score of 85 per cent. In addition, Selvaag Bolig's project Skifabrikken won the Prognosesenteret award for best project in 2022 with a CSI score of 92. The company considers the results to be good, but nevertheless is working systematically to improve both products and routines. Customers expect more than before and customer satisfaction in the housing industry has generally increased from year to year. Selvaag Bolig therefore expects that the company must continue to improve its CSI in order to achieve the goal of being on par with or above the industry average.
Key indicators
| 2022 | 2021 | 2020 | Goal | |
|---|---|---|---|---|
| CSI Score (sector average) | 75% (74%) | 73% (73%) | 73% (72%) | ≥ the sector average |
INSPIRING WORKING CONDITIONS FOR EMPLOYEES
Selvaag Bolig strives to be one of Norway's most attractive workplaces and employees must have good opportunities for professional development.
At the end of 2022, the company had a total of 86 employees, four of whom were part-time employees. Six were employed in Sweden, and the remainder in Norway. The main functions are project management, and support functions such as finance, HR, legal, settlement, marketing, customer care and sales. The company also has service personnel who work in completed projects through operating agreements with the residential cooperatives.
Selvaag Bolig desires a good, diverse and inclusive working environment characterised by mutual trust and respect. Management shall provide employees with engaging tasks and contribute to low sickness absence. Being an active and innovative company are crucial requirements. The strategic goal is to create a performance culture. This will be achieved through a strong commitment by top management. The approach will be based on strength, meaningful goals, and involvement of all employees.
A fundamental principle in the organisation is to emphasise expertise and value it, and the company has zero tolerance for discrimination. As pointed out in the ethical guidelines, Selvaag Bolig does not accept any form of mobbing or discrimination, whether based on race, religion, nationality, sexual orientation, gender or otherwise. Nor does the company tolerate any behaviour which could be perceived as threatening or degrading. Selvaag Bolig received no notifications in 2022.
Employee satisfaction
The company pays special attention to employee satisfaction. For the eighth year in a row, Selvaag Bolig was certified as a «Great Place to Work» and is ranked as one of Norway’s best workplaces. In 2022, the overall score was 90 per cent, which was four percentage points better than in 2021, and the highest level since 2016. The survey showed that the improvement in 2022 was tied to, among other things, that the employees experience better information flow between executive management and mid-level management, a better work-life balance, and that the company was contributing positively to society. A likely reason for this is that the whole organisation has systematically implemented ESG work and key performance indicators. The 2022 survey did not identify any special, overall areas that needed improvement. The executive management and heads of departments, with the involvement of all employees, are working systematically using existing routines, measures and forums to maintain the high level.
Sickness absence
Selvaag Bolig has a goal of sickness absence being below three per cent. The company has a good picture of the reasons for sickness absence and follows closely up on employees who are on sick leave. Close attention is paid to make a healthy work-life balance possible, and the company encourages physical activity by offering subsidised training and group activities.
In 2022, Selvaag Bolig had a sickness absence of 4.9%, which was an increase from 3.6% from 2021. The primary cause of the increase is more illness in general in the population and in the company's employees, following the reopening of society after the corona pandemic. Furthermore, several individual cases of long-term absence had a major impact on total sick leave, as the company has fewer than 100 employees. Measures have been implemented, which includes personal follow-up and dialogue with the occupational health service.
Appraisal interviews and expertise enhancement
All employees in Selvaag Bolig will have an annual “appraisal interview”. The interview gives the employee the opportunity to express wishes about development paths and to clarify work-related issues, while getting feedback about the job the employee has done. The interview is an important tool for the organisation to map and plan the further development of the expertise of each employee. During 2022, all of Selvaag Bolig’s employees had appraisal interviews.
All employees are given opportunities for professional development and expertise enhancement, including through courses, seminars and specialist gatherings both in-house and externally. The company does not track how many courses, seminars and get-togethers are held, but all employees have participated in one or more during 2022.
Co-ownership and benefits
Selvaag Bolig has a philosophy that co-ownership promotes value creation through increased engagement and loyalty. At the end of 2022, 70 per cent of Selvaag Bolig’s employees owned shares in the company.
In addition, Selvaag Bolig has a number of benefits for employees. These include, among other things, a mobile phone, a subscription to mobile phone and broadband, access to a subsidised cafeteria, discounted training at a fitness centre, as well as good pension and insurance schemes. All employees also have access to corporate cabins.
Equality and diversity
Selvaag Bolig has a specific goal of achieving gender balance in the various types and levels of jobs. The company follows the principle of equal pay for equal work.
Hiring at Selvaag Bolig will be decided based on expertise and experience, regardless of the job level or function. The company shall, however, always try to obtain the best possible gender balance with a minimum of 40 per cent women or men.
The overall gender balance in 2022 was 45 per cent men and 55 per cent women, and thus in line with targets. The gender balance on the board of directors is in accordance with the Norwegian public limited liability companies act. The company’s executive management still has a skewed distribution, with 20% females and 80% males. Over time, Selvaag Bolig will strive to have a better gender balance in the executive management.
One measure to contribute to equality is to arrange for a flexible and good arrangement in connection with employees' parental leave. Selvaag Bolig covers the basic salary above the statutory 6G in connection with parental leave, facilitates graduated or increased leave taking, and encourages men to take more leave than the minimum quota. In 2022, two men and one woman took a total of 77 weeks of parental leave. The company considers that the scheme is good as everyone entitled to leave has used it.
According to the Equality and Anti-Discrimination Act, Selvaag Bolig has mapped wage levels distributed by gender. The survey shows the average fixed salary according to the type of position and gender. Variable wages are not included in the survey as they vary greatly between different types of positions. Women and men in the same type of position and with the same experience are equally paid. The reason for the wage gap between men and women is the uneven distribution in the type and level of position.
Key indicators
| 2022 | 2021 | Goal | |
|---|---|---|---|
| Employee satisfaction | 90% | 86% | > 80% |
| Sickness absence | 4.9% | 2.3% | < 3% |
| Turnover | 7.0% | 8.1% | - |
| Appraisal interview | 100% | 96.5% | 100% |
| Number of notifications | 0 | 0 | - |
| Gender balance | Year 2022 | Year 2021 | Goal | |||
|---|---|---|---|---|---|---|
| Women | Men | Women | Men | Women | Men | |
| Overall gender balance | 55 % | 45 % | 47 % | 53 % | > 40 % | > 40 % |
| Gender balance, shareholder-elected board members | 40 % | 60 % | 40 % | 60 % | > 40 % | > 40 % |
| Gender balance, employee-elected members | 50 % | 50 % | 50 % | 50 % | 50 % | 50 % |
| Gender balance in group management | 20 % | 80 % | 20 % | 80 % | > 40 % | > 40 % |
| Parental leave | 48 weeks (1 woman) | 29 weeks (2 men) | 16 weeks (2 women) | 38 weeks (3 men) | - | - |
| Average fixed salary, by position (NOK 1000) | Year 2022 | Year 2021 | ||||
|---|---|---|---|---|---|---|
| Women | Men | All | Women | Men | All | |
| All positions | 818 | 1 342 | 1 071 | 771 | 1 463 | 1 094 |
| Group management | 1 630 | 2 888 | 2 636 | 1 550 | 2 793 | 2 544 |
| Non-core activities | 571 | 323 (part-time) | 558 | 514 | 514 | 514 |
| All positions other than group management and non-core activities | 893 | 1 312 | 1 114 | 860 | 1 282 | 1 078 |
Governance (G)
Selvaag Bolig is a pure residential property developer that controls the entire value chain from acquisition of land to sale of turnkey homes. The company does not have an in-house construction arm but uses contractors for each project. It is the company’s responsibility that partners follow applicable legislation and statutory regulations for working conditions and safety. This includes ethics throughout the value chain, privacy and IT security.
For further information about governance, see the chapter about corporate governance.
Ethics in its own activities
As a construction client, Selvaag Bolig works with, among other things, public contact, significant financial transactions and agrees to large turnkey contracts. The company's ethical guidelines state that Selvaag Bolig does not accept any form of corruption. Conditions that can affect decision-making processes, or that may give others reason to believe such conditions exist, are not accepted. Nor should employees contribute to any kind of price cooperation that can distort or contravene current competition regulations. No cases of price cooperation or corruption were revealed in 2022.
Continual efforts are being made to ensure that employees are aware of and follow the company's ethical guidelines. New employees are introduced to the guidelines through training programmes and joint meetings, and all employees are required to conduct e-learning courses in ethics and corporate social responsibility. The course ensures that all employees know what the requirements and expectations are, and is an important tool for building a company culture with high standards. By the end of 2022, all employees had completed and passed the course.
Ethics in the supplier chain
The greatest risk of breaches of good business practice, such as corruption, working conditions and price cooperation lies in the supplier chain, and is addressed every other year in the company's overall risk mapping process. Selvaag Bolig places clear requirements on suppliers by using supplier declaration and contracts, and has routines that include the annual assessment of its main partners and suppliers. No violation of the company's guidelines was revealed in 2022.
Privacy (GDPR)
Selvaag Bolig receives personal information from both own employees and from customers who buy housing, and process them in line with the EU General Data Protection Regulation (GDPR) and the Privacy Regulation. The company has strict routines for how such information is collected, stored, used and deleted.
IT security
Selvaag Bolig takes IT security seriously, and works continuously to protect IT equipment, networks and information from unwanted access and attacks. Several measures have been implemented to increase IT security in recent years, including more advanced security monitoring, updated information security management system and continuous work on the awareness of employees. All employees take an annual class in IT security using an e-learning platform and user instructions for information security will be expanded with a module about human rights.