Construction-related decisions have a broad impact on the environment, communities, and the lives of many people. For this reason, SRV takes a long-term approach to project development and works in a responsible way with its stakeholders to build a sustainable future. Today’s built environment is home to tomorrow’s sustainable society.
“Sustainability and the development of it are issues important to SRV. Our stakeholders are increasingly interested in the impacts of our operations and they expect transparency from us. We see sustainability, first and foremost, as an opportunity: operating in a sustainable and responsible way enables us to develop our business over the long-term while simultaneously responding to stakeholder expectations.”
Juha Pekka Ojala, President and CEO
SRV is the industry forerunner in grey economy prevention
SRV has the industry’s best tools and ways of operating for preventing the grey economy. Throughout SRV’s history, preventing financial crime (grey economy) has been an integral part of the company’s basic operations both in the procurement function and in the monitoring of contractors at construction sites. The effectiveness of the prevention efforts is anchored in long-term collaboration with authorities and the company’s solid effort to develop its own processes.
Construction site orientation and pre-audits of our collaboration partners’ social responsibilities are important tools in preventing the grey economy. Additionally, we use Network Register, developed to facilitate the electronic management of processes that are within the scope of the Act on the Contractor’s Obligations and Liability and for reporting to authorities. SRV started developing the register in 2008, and it was completely updated in 2014. Network Register is continuously developed to ensure the real-time nature of the prevention process. With the electronic management system, the grey economy prevention process has become a fully standard practice at SRV’s construction sites.
“The development measures implemented have led to very positive results in audits and good feedback from contractors. The zero-error reports from audits conducted by authorities (tax, Regional State Administrative Agencies, police) at our construction sites, and the zero-error results from the contractor’s obligation audits for demanding contractors are solid evidence of the level of fulfilment of our social obligations at construction sites.”
Jari Korpisaari, Safety Manager
No compromises in safety
SRV is committed to practices supporting the zero-accident target in its operations. In Finland, the company is also strongly involved with the Confederation of Finnish Construction Industries RT’s project of zero accidents by 2020.
Every indicator of safety developed very favourably in 2015. In fact, safety was the spearhead theme in production, and for example, in Finland SRV Rakennus Oy’s lost-time injury frequency (LTIF) rate per one million hours worked dropped from 15.7 in the previous year to a record low of 8.7 in 2015; the construction industry average is 63. There were a total of 118 injuries at SRV’s work sites in 2015, two of which were serious injuries. The average of the weekly statutory construction site safety measurement was 95.5 per cent.
The biggest challenges in terms of safety are getting all incidents reported, including the near-misses, and getting all partners to commit to operating in accordance with safety guidelines. SVR has responded to the challenges by providing on-site training on the guidelines to 22,700 people in Finland, by adding digital tools for guidelines and monitoring, and by arranging an internal safety contest. Construction site monitoring is continuous and the statutory construction site inspection is conducted weekly; a purpose-specific mobile application is used in the documentation of the inspection.
A project to develop the construction site safety orientation is ongoing, and safety communications will be amplified in 2016. Safety is under constant monitoring by the management: all safety deviations are investigated and reported.
SRV as a taxpayer in Finland
SRV has a significant impact on the surrounding communities, as an employer and as a taxpayer. At the year end, SRV employed 1,046 (958) people; 235 (212) of them worked in subsidiaries abroad. SRV pays its taxes and levies in accordance with local legislation. A significant share of the levies stem from the VAT paid on goods and services and from the taxes related to employee salaries. The company also pays other taxes, such as income taxes, transfer taxes and property taxes.
Construction projects in Finland are mainly development or project management contracts, which SRV’s own professionals and the contractor partner network implement efficiently under SRV’s project management model. Consequently, the company has a relatively smaller number of employees than its competitors. On the other hand, SRV employs significantly more subcontractors and goods suppliers specifically because of the project management model. Through subcontracting and the use of temporary labour, SRV indirectly generates payroll taxes and social security costs that are paid to the government, so SRV’s indirect impact as an employer and taxpayer is significant.
Sustainability as the premise of environmental activities
The built environment is required to have increasingly better energy and environmental efficiency to solve climate and energy challenges. The premise of SRV’s environmental activities is the commitment to developing its activities in accordance with sustainable development and to reporting the impacts of its activities. SRV’s environmental operations are guided by the environmental policy approved by the Corporate Executive Team. The key goal of the policy is optimisation of construction site material efficiency and waste management development.
Waste generated from building sites is the most significant direct environmental impact of construction. For all Finnish construction sites, SRV requires the drafting of waste management and environmental plans that align with the company’s quality management system. Every site must also appoint a project-specific environmental officer who is responsible for, among other things, reporting waste volumes and energy consumption into SRV Environment, SRV’s environmental reporting system.
“In 2015 we adopted waste targets for different project types. At our Finnish operations, every new project is given a target on specific waste volume and a target on the rate of waste sorting, which describes how much waste is sorted into a category other than mixed waste. These targets are recorded in our waste reporting system, enabling us to better monitor waste accumulations and the achievement of the targets.”
Tytti Kuusikko, Environmental Manager
During the past years, environmental assessment methods, like the American LEED and the British BreeAm, have become more common particularly amongst international real estate investors and other SRV’s customers. The basic premise of the environmental assessment methods is to assess a building’s most significant environmental impacts using simple and reliable indicators. The measured results are given point values and the building is given a rating that indicates the quality of its environmental attributes. The assessment methods offer a clear and unequivocal rating that can be used to compare the environmental attributes of different buildings. Common to both environmental assessment methods is that they are used in an effort to steer the construction project so that the adverse environmental impacts of the building are taken into consideration and, when possible, are minimized at all life-cycle phases, from the manufacturing of the construction materials and elements to the use and decommissioning of the building.
|Projects completed in 2015||Certificate||Rating|
|TTY Kampusareena||BreeAM||Very good|
|KOy Oulun Kauppurienkatu 9||LEED||Platinum|
|Stockmann logistics centre||LEED||Gold|
|Projects under construction||Certificate||Targeted rating|
|Tapiola Ainoa 2||LEED||Platinum|
|Niittykumpu metro centre||LEED||Gold|
Personnel development supports well-being and commitment
In 2015 SRV invested in harmonizing and clarifying leadership principles and operating culture to align with the company’s values and strategy. The operating culture campaign used videos and peer profiles to engage employees and encourage them to think about the value choices in everyday activities.
A development programme based on training and team coaching and targeting all supervisors was launched in autumn 2015. The programme aims to promote a coaching and human-centred approach to supervisory work. A total of some 160 people will take part in the development programmes in 2015-2016.
“SRV has a strong sense of community. Sports and cultural activities offered by the active employee club, as well as the Sports Days, Successful Performance incentives, HeiaHeia campaigns, internal safety contests, and other common programmes create an inspiring SRV corporate culture and promote well-being. It is important for leaders and management to set an example and take part in all these activities. Our employees are doing important work in which they have the opportunity to continuously develop their own know-how and professional skills. Good team spirit and enthusiasm for doing create excellent commitment.”
Pirjo Ahanen, Senior Vice President, Human Resources
SRV participated in Corporate Spirit Oy’s “Finland’s Most Inspiring Workplaces” competition with the renewed employee survey that was conducted in November 2015. SRV achieved an excellent standing in its first year of participation: 11th place and an AA+ rating. A total of 200 companies took part in the Finland’s Most Inspiring Workplaces survey.
SRV aims to be the most attractive employer in our industry in 2020.
Sustainability is one of the six strategic development programmes of SRV’s strategy. Sustainability will become increasingly important to competitiveness in tomorrow’s business environment. SRV’s goal is to be known for its sustainability and to bring genuine added value to business through sustainable operations.
“Our goal in 2016 is to create a sustainability programme and operating model that align with our updated vision and strategic objectives. At the same time, we will develop our reporting to meet the EU Directive on the disclosure of non-financial and diversity information, which takes effect in 2017, and the requirements of international norms. We have already started the work by conducting an extensive stakeholder survey and by mapping industry practices.”
Päivi Kauhanen, Senior Vice President, Communications