YIT strategy 2022–2025: Creating sustainable success through sustainable living
The key target of YIT’s new strategy is to seek growth in the Housing business and to improve the Group’s profitability. As a part of the new strategy, YIT has redefined and clarified its business model. The new strategy will be executed through three strategic priority areas: Focus, Productivity, and ESG (Environmental, Social, Governance).
In Housing, we continue to build functional and sustainable homes and environments making sustainable living easy. We seek growth in the growing cities of Finland, Poland, Czech Republic, and Slovakia. In Housing, our goal is to grow its revenue by over 20% by 2025 with an operating profit margin of over 10%.
Infrastructure and Business Premises businesses continue to have a strategic role within YIT targeting stable cash flow to enable the growth of the Housing business. Profitability is aimed to be among the best in the industry with both segments targeting to achieve an operating profit margin of over 4% by 2025.
The new Property Development segment will have the responsibility of YIT’s end-to-end commercial and mixed-use project development. The segment will be a customer-centric developer and a best-in-class partner providing attractive investment opportunities for its investor partners. At the same time, long-term ownerships and service businesses will no longer be in focus. Property Development aims to achieve a ROCE of over 10% by 2025.
Updated ESG strategy will set new standards for the industry
On the Environmental criteria, we commit to the Science Based Targets initiative (SBTi) to limit global warming to 1.5 degrees in line with the Paris Climate Agreement.
YIT is the first Finnish construction company to commit to reducing emissions from both its own operations and its value chain in accordance with the Science Based Targets Initiative. With this commitment, we strengthen our previous climate work and update our current climate targets to be more comprehensive, which will also reduce our customers' emissions.
On the Social criteria, we continue to develop and build better living environments for the society. Furthermore, our ultimate goal is a zero-harm work community. We develop proactive measures for improving occupational safety with a target of continuously decreasing accident frequency.
On the Governance criteria, we will continue its strict approach on gray economy. Furthermore, we have zero tolerance in corruption, as well as in labor exploitation and discrimination.
We will also take decisive steps to advance ESG matters throughout our supply chains. Going forward, we will require our suppliers to meet the same environment, social and governance standards as we have set to ourselves. The company believes that this will set new standards for the entire industry.
Financial targets updated
We will measure the success of our strategy by new Group financial targets to be reached by the end of 2025:
- Operating profit margin: 6%
- Gearing: less than 50%
- Dividend: stable growth
More financial information on our Investor's page