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SKANSKA

SUSTAINABILITY OVERVIEW

Transport Research Laboratory Networking EventMonday, 10th January 2011

Mark Anderson

Senior Commercial Manager – Skanska

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Skanska in brief

− Founded 1887 in Sweden− International business since 1897− Listed on the Stockholm Stock Exchange− 2009 revenues: £ 12 billion− 53,000 employees − Member of UN Global Compact

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Local presence – global strength

SwedenNorwayDenmarkFinlandEstoniaPolandCzech RepublicSlovakiaHungaryUnited Kingdom

United StatesLatin America

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Business streams

ResidentialDevelopment

Commercial Development

Infrastructure Development

Construction

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Code of Conduct

− General principles including human rights

− Employee relations including health and safety

− Business ethics

− Environment

− A condition of working with us

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Zeroloss-makingprojects

Zeroenvironmentalincidents

Zeroaccidents

Zeroethicalbreaches

Zerodefects

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Johan Karlström, President and CEO

Skanska AB

Skanska is determined to be the leading green project developer and contractor

VISIBLE LEADERSHIP

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Built environments are responsible for around 40% of all energy use and man made CO2emissions.

As a construction company we have the ability, knowledge, experience and skills to make a difference in leading change.

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Approach to Sustainability- Sustainability Agenda

- Code of Conduct, Five Zeros

- Green Business Model

- Environment Strategy, Green Car Policy, Colour Palette

- Progress reported in Sustainability section of Skanska AB Annual Report

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Skanska Sustainability Agenda

Human Resources

Health & Safety

CorporateCommunityInvolvement

BusinessEthics

Energy & Climate Materials Eco-

systemsLocal impacts

Project selection

Supply chain

Value added

Social Agenda

Environmental Agenda

Economic Agenda

Skanska Sustainability Agenda

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Environment Strategy

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Skanska’s Deep GreenTM Model

Vanilla – projects that merely comply with national practices, codes and standards

Green – projects that surpass compliance but not so much that what we construct and how we construct it can be regarded as near-zero impact

Deep Green - projects defined by zero values for a set of metrics related to the top priority issues: energy, carbon, materials and water

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Measures to reduce consumption of drinking

water with more than 50% are taken.

Measures to reduce consumption of drinking

water with more than 25% are taken.

Preliminary baseline for use of drinking water at site

established. Sustainable drainage system in place.6)

Use design and planningreviews to maximize thereuse of materials and toarrive at less then 2,5%

waste to landfill.

Use design and planningreviews to maximize thereuse of materials and to

arrive at less then 5% waste to landfill.

Use design and planning reviews to maximize the reuse

of materials and to arrive at less then 10%

Waste to landfill.

Over 50 % reduction ofbaseline carbon contentin materials, logistics and

construction.

Over 25 % reduction of baseline carbon content in

materials, logistics and construction.

Preliminary project carbonfootprint (3) established.Carbon footprint used to

perform value engineering.2)

Net Positive Energy

’Zero’ Carbon Construction

Zero Unsustainable Materials 4)

Zero Hazardous Materials 5)

Zero Waste

Zero Drinking Water for Construction

> 50 % reduction against baseline consumption and

renewables used.

25 % reduction against baseline consumption.

Energy baseline established > 10 % reduction against baseline consumption.1)

Trademark of Skanska AB (publ)

CC draft 100423

- Civil / Infra

1) Only applicable for civil/infra projects that construct energy consuming products. Energy refers to energy consumption of the product during its operation. Where possible energyconsumption shall be evaluated as primary energy.

2) Carbon refers to the carbon emitted during manufacturing of the main construction materials, production of site electricity and as a result of construction activities including logistics.3) Preliminary carbon footprint is defined as an estimate at the bid stage using generic and/or historical carbon data.4) Sustainable materials are materials that can be reused or recycled. 5) Hazardous materials are defined as per local law and the applicable Skanska AB Global and BU specific Restricted Substances Lists. 6) In this revision water refers to use of water during the construction process only, the use of ´life cycle consumption´ will be considered for use in future revisions

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NLGA Deep Green Workshop June 2010

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Meadowlands, New York - RFID Tags

Better planning leading to ~ US$1 million saving in costs

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Empire State Building, New York

Green retrofit of Empire State Building – pay back period approx. 5 years

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Totoral Wind Farm, Los Vilos, Chile

Renewable energy - 50 MW wind farm – new opportunities

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Lindhagensterrassen, Stockholm, Sweden

35 m2 solar array – 11 vehicle charging points + lighting

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Philip CarréEVP

Bill HockingEVP

Mark GallowayEVP

Roger BaylissEVP

Harvey FrancisEVP

Mike PutnamBusiness Unit President

Operating Units

Skanska UK

CommunicationsEnvironmentFinanceHealth & SafetyHR (including Pensions)ITSDLegalProcurementPreconstructionSkanska Technology

Civil EngineeringGreg Craig

Piling, Foundations & Ground EngineeringMartin Pedley

Infrastructure ServicesDeirdre Murphy

Utilities Ian Edwards

Construction Private, including CommunitiesPaul Heather

EducationDave Shadwell

Construction Public, including ScotlandMartin Nunns

Mechanical & Electrical, Steel Decking, CeilingsRobin Wood

Facilities ServicesMartin Neeson

Enabling Functions

Paul ChandlerEVP

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Skanska UK

2,149.7Order backlog:1,695.1Order bookings:

2.5%Operating margin:

38.9Operating income:1,541.8Revenue:

2009£m

Results:

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The Green Agenda

“Through our performance on site and processes, we are already being recognised by our staff and customers as a company who cares about sustainability –playing our part in Skanska’s goal to become the leading green constructor.”

Mike Putnam, CEO Skanska UK

Skanska UK

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Skanska UK Sustainability model

http://www.skanska.co.uk/en/About-Skanska/Sustainability/

Environmental and Socio economicProfitable MarketsCustomersInfluences

CommunitiesOur PeopleSupply chainCommunities we work in

Environmental Climate ChangeWasteWaterMaterialsecology

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Sustainability Documents

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Sustainable procurement

The value for money sourcing of products and services taking into account environmental, social and ethical aspects over the whole product or service lifecycle

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Sustainable Procurement− Guidance to buyers, specifiers and supply

chain

− Communicate to all stakeholders how we procure

− Define sustainable procurement

− Six core elements: Health & Safety, ethical sourcing, equality / diversity / inclusion, Green sourcing, Best Value and Quality

− Confirm we will only do business with responsible suppliers

− Expect supply chain to amend their business practices where required

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Materials – Resource Efficiency

Target -

Less than 10% waste to landfill by end 2010

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Materials - Intelligent Selection

− Minimising use of hazardous materials

− Reduce future risks

− Reduce hazardous wastes

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Ecosystems

− Chain of Custody

− Timber, Quarry products

− Ethical sourcing

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Local Impacts− Management Plans

− Construction guidelines

− Mitigation

− Monitor and Report2008 Incident Reporting Summary

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Contam land Oil Waste Fly tipping Water Housekeeping Access Other Dust

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Learning and Development

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Green Toolbox – Introductory page

Green Education –Training Package

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The Green Toolbox

Sustainability Case Studies & Green Solutions

Journey to Deep Green

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Examples of Green Solutions

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CO2 measurement and reduction

Leading on carbon calculation for Anglian Water

Cambridge STW, UK

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Green Construction Initiatives

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ModernaHusColdharbour LaneBrixton

CSH level 4(beyond requirements)

Air tight constructionAir permeability <4m3/hm2@50PaU-values – Walls 0.2, Roof 0.15, Windows 0.85, Ground floor 0.17

Large communal green space

Including allotments

Green roofSUDS system

44% energy improvement(over building regulations)

10% renewable energy

Off site construction

Wall panels, floors, pods etc

Water efficiency (105 litre/person/day)

100% energy efficient lighting

Cycle StorageFor every dwelling

BIMIntelligent clash free multi-

discipline construction

Recycled content

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Green BIM

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BIM

Examples of 3D interactive modelling developed for previous utility type works

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Minimising Waste: Vacuum Excavation on NLGA

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Minimising Waste / Environmental Impact: NLGA

PE Pipe Recycling Aerosol Degassing HDD 315mm MP PE

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NLGA Sustainability Case Study: reduction in waste major theme.

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Carbon Management

Reduction in Carbon emissions associatedTravel to work by Intelligent routing

Work orders delivered to PDA in real time

Efficient Execution of works – completed works Delivered in real time

Overall Net saving in CO2 transport related Emissions

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External Working Groups - UK

− UKCG, UKGBC, CIOB & NJUG Sustainability Groups

− Various WRAP groups

− CEEQUAL working groups

− ICE Environment & Sustainability Panel

− CIRIA Biodiversity Group

− Considerate Constructors Scheme

− London Leaders

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External Working Groups - Globally

− WBCSD

− UN Global Compact

− UN Environment Programme, "Sustainable Building and Construction Initiative“

− EU Corporate Leaders Group on Climate Change (EU CLG)

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Awards− Sunday Times Best Green Companies Award - 2010 2nd overall, Best

Corporate Environmental Strategy Award, Best Company with a HighEnvironmental Impact Award, 2009 4th, 2008 5th

− RoSPA International Dilmun Environmental Award – 2009 Highly Commended, 2008 Commended, 2007 won

− Mayor of London Green Procurement Scheme –Gold Level 2010 and 2nd Best Large Corporation Award, Silver Level 2009

− UK Sustainable City Awards 2009 - Sustainable Procurement award− Building Magazine – Sustainable Contractor of the Year 2007 & 2006, Green

Subcontractor of the year Award 2007, Foundation/Groundwork Specialist of the Year 2007 – 4th year running, Energy Piles™

− Quality in Construction 2009 - Sustainability Award− Quality in Construction 2008 - Corporate Social Responsibility Award, Technical

Innovation Award – Energy Piles™− Considerate Constructors Scheme National Awards – 2008: 2 gold, 4 silver, 8

Bronze, 2009: 2 gold, 6 silver, 9 Bronze, 2010: 3 gold, 2 silver, 2 Bronze− BREEAM - Excellent rating – 8, Very Good – 11, Good - 7

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Where Next

− Carbon foot printing /CRC

− Commercialising Green

− LCA

− SEESA hub & cluster

− CEMARS Certification

− Skanska Procurement Policy document

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ENVIRONMENT WEEK7TH – 11TH JUNE 2010

Major Themes for this year

Our Journey to Deep Green

Travel

Supply Chain

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End

−Thank You For Listening − If you require further information on Skanska please

feel free to contact me

mark.anderson@skanska.co.uk