Sustainability management

Sustainability as part of YIT's renewed strategy

Sustainability is one of four cornerstones of YIT's strategy. The strategy for 2020–2022 is based on urbanisation, digitalisation and sustainability, which we have identified as the most significant megatrends with respect to our operations. To execute our strategy and enhance our progress, we launched four development programmes: Performance, Customer Focus, Green Growth and Services Development.

With the Green Growth development programme, we support growth and the development of productivity by applying the principles of sustainable development. Our goal is to identify the current state of our operations, set sustainability targets and enhance our operations through energy efficiency, material efficiency and the circular economy. The programme also aims to create new business in line with the principles of sustainable development.

Read more about YIT's strategy

Our sustainability practices

We guide our sustainability in many ways. You can explore the most important topics below.

Code of ConductCode of Conduct

YIT's Code of Conduct

YIT's mission, vision and values are the foundation of our operations and ways of working. YIT's Code of Conduct are a concrete expression of what compliance with our values means in our work with different stakeholders.

Suspected misconducts investigated without delay

We expect every employee at YIT to report to their immediate superior if they suspect a breach of the company's business principles. In addition, all countries where YIT operates have appointed persons in charge of ethics who escalate the processing of reported misconduct.

For already years we have also been using a reporting channel maintained by a third party, allowing our employees to report confidentially, and, if necessary, anonymously any suspected misconduct. A report can be submitted online or by telephone in 15 languages. Each suspected misconduct will be investigated carefully and without delay, and will lead to appropriate action.

How to report a concern

Policies and principlesPolicies and principles

YIT is committed to good corporate governance through compliance with laws and regulations and by implementing best practices. Find more information on YIT's corporate governance here.

Below you can find YIT's policies and principles regarding sustainability, human resources, quality, occupational safety and environment.

Targets and performance indicatorsTargets and performance indicators

A look ahead: Sustainability targets and performance indicators at YIT

Targets guide our operations in the short and long term. Each year, we set targets and KPI’s for each of the material sustainability theme and report on their implementation. In addition, in the autumn of 2019, we set long-term sustainability targets to mitigate climate change. We will also report annually on our progress towards these goals.

YIT's long-term sustainability targets

Theme	Long-term targets	Key indicator and results
CLIMATE CHANGE MITIGATION
Emissions	Halving CO2 emissions of own energy consumption and self-developed projects by 2030	CO2 emissions (t CO2) compared to 2019
Carbon neutrality	Opportunity for carbon neutral use of buildings in self-developed projects	•••
Reporting	Reporting project specific CO2 emissions from 2020 onwards in self-developed projects	••• Number of projects reported

YIT's sustainability targets for 2020

YIT's sustainability targets for 2019

Sustainable Development Goals (SDG)Sustainable Development Goals (SDG)

YIT is committed to supporting the UN Sustainable Development Goals. The most significant of the Sustainable Development Goals with respect to our operations are: 11. Sustainable cities and communities; 12. Responsible consumption and production; 13. Climate action; 16. Peace, justice and strong institutions; and 8. Decent work and economic growth.

The Sustainable Development Goals (SDGs) are part the UN’s Agenda 2030, which is aimed at eliminating poverty and giving equal consideration to the environment, economic prosperity and people. The Goals are universal and concern states, organisations and corporations.

We want to do our part to help build a more sustainable and equal future.

How do we promote the achievement of the UN Sustainable Development Goals?

	11. Sustainable cities and communities Make cities and human settlements inclusive, safe, resilient and sustainable. Building sustainable cities is at the core of our strategy. We offer rental and owner-occupied housing to our customers, construct business premises and other public buildings and build eco-friendly public transport solutions. We also utilise our expertise in demanding infrastructure construction projects in areas such as municipal wastewater management and the construction of production facilities for renewable energy, such as wind power and hydropower. The concept of sustainable cities also covers areas developed with the mixed-use principle, which combines housing, services, jobs and public transport. Examples of our mixed-use projects currently in development include Keilaniemenranta, Punos in Itäkeskus and the Pasila district in Helsinki. Read more about our actions
	12. Responsible consumption and production Ensure sustainable consumption and production patterns. We want to support sustainable consumption in our own operations and in the operations of our customers. We develop various living services and property life cycle services aimed at reducing the in-use energy consumption and carbon footprint of buildings, for example. The choices we make during project design and construction also have a direct impact on the sustainable consumption of our customers. We strive to enhance the sustainability of our own operations in various areas, including waste recycling and environmental management. We are developing our waste reporting, aim to make use of circular economy solutions and we train our personnel. Read more about our actions
	13. Climate action Take urgent action to combat climate change and its impacts Construction and the use of the built environment generate carbon dioxide emissions and thereby have an impact on climate change. We have set a long-term CO2 reduction target for 2030: we will halve the CO2 emissions of our operations and self-developed projects compared to 2019. We also want to enable the carbon neutral use of our projects for our customers. Read more about our actions
	16. Peace, justice and strong institutions Promote peaceful and inclusive societies for sustainable development, provide access to justice for all and build effective, accountable and inclusive institutions at all levels. In all of our operations, we observe good corporate governance and responsible business principles, and we expect the same from our partners. We have zero tolerance for corruption and the grey economy. YIT is involved in large public and private projects. As an international listed company, YIT has a duty to support and strengthen good business principles throughout society. In addition, through its supply chains, YIT has an impact on thousands of subcontractors and their employees. In 2020, YIT will, among other things, update its business principles concerning its partners. Read more about our actions
	8. Decent work and economic growth. Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all. The main objective of our strategy is to improve profitability and to maintain financial stability. In addition to responding to investor expectations, we are a proud taxpayer and we employ thousands of people. Occupational safety is an integral part of our corporate responsibility. There is a large number of our own employees and our subcontractors’ employees working at our construction sites, and their safety is the starting point for all of our construction activities. In addition to safe work, we demand that human rights are respected in all of our operations and throughout our supply chain. Read more about our actions

Value creationValue creation

We create value for our stakeholders in many ways. The Value Creation Model illustrates how we leverage resources and the impacts our operations have.

Our resources
Our most important resource is our professional staff in all of our operating countries whose expertise we invest in. With strong financial capital, we are able to carry out diverse projects and services for our customers and society. In addition, the building environment requires a variety of building materials, such as soil, concrete and steel, which we use in our operations. Relationships with our thousands of partners and satisfied customers are essential resources for our excellence. YIT's brand as a leading urban developer, corporate culture and our diverse product and service concepts complement our prerequisites for creating the highest possible value.

Our business
We operate in four business areas: housing, business premises, infrastructure and partnership properties.

In 2019, housing accounted for 43% of the Group's total revenue. Our residential construction in Finland, Russia and CEE countries mainly focuses on the development and construction of residential and residential development projects. We sell apartments to consumers and investors, rent them and offer and develop a variety of housing concepts and services for our clients.

Business premises accounted for 34% of our revenue in 2019. It covers the construction of business premises and other public facilities, project development and property management. The projects are both self-developed and contracted, and in addition to new construction, the segment is implementing renovation projects. Finland is our main market area, but there are also operations in Estonia, Latvia, Lithuania and Slovakia.

Infrastructure construction accounted for 23% of our revenue in 2019. We carry out diverse and demanding infrastructure projects such as roads, bridges, metro stations and water utilities. We also mine tunnels and mines and provide road maintenance services in Finland. Most of our projects are contracted, but we are also developing customised wind turbine foundations and providing related services and maintenance. In addition to Finland, our infrastructure construction operations extend to Sweden, Norway, Estonia, Latvia and Lithuania.

Our partnership properties business focuses on property ownership. We gain from the assets we own as rental income and gain in value.

Our business model is based on a continuous stream of development projects, designing, construction, investing and providing services. We have an exceptional ability to develop projects with design responsibilities, and close internal co-operation between our various operations improves the productivity of the implementation phase. Our other sources of growth and profitability are the non-cyclical partnership properties and service business. The income stream from property ownership guarantees us long-term returns, while developing our diverse service offering aims to extend our value chain and return on our products. Our presence in the life cycle of the building guarantees better and more sustainable services to our customers.

Our business is supported by four cornerstones of success: (1) excellence, (2) success with customers and partners, (3) happy people, and (4) stepping up sustainability. We focus on developing our business through these cornerstones. In addition, we have four ongoing development programs that focus on improving productivity, creating greater customer value, developing sustainable solutions, and growing our service business.

Output and our impacts
Value for people
Happy employees are one of the cornerstones of our success and we invest in the well-being and competence of our employees. Occupational safety is the starting point for all our activities, and we are constantly striving to improve the safety of our employees and partners. Our business aims to create a safe working and living environment for all parties.

Customers are another stakeholder at the heart of our business. We create value for our customers by implementing different living spaces and areas - creating better living environments. Better living environments include safe and comfortable homes, a variety of office and public spaces, and smooth and low-emission infrastructure such as public transport and renewable energy sources. In addition, by offering a variety of services, we make our customers' lives easier and more sustainable.

We are a reliable customer to our financiers. As a responsible corporate citizen, we pay our income tax in accordance with current tax practices.

Strategic partnerships create added value for us and our partners. They can be used to develop the business of both parties together towards new, innovative solutions.

We have over 40,000 shareholders. We create economic value for our owners by focusing on improving our profitability and maintaining financial stability.

Value for society
We create value for society by developing sustainable urban environments. Transportation, housing and living in sustainable cities has been done in an environmentally friendly way. They also provide safe and comfortable living and the economic attractiveness of the area due to its compactness and versatility. As a responsible corporate citisen, we also innovate visions of urban and regional development on our own initiative to achieve a better living environment for all of us.

In addition, since 2012, we have been running a 100 Good Deeds responsibility program where we do small good deeds. In the program, our own employees and those who receive sponsorship money do good deeds for third parties in accordance with our values.

Value for the environment
The environmental impact of construction and the built environment is notable. However, with our sustainable products and practices, we can significantly influence the environmental load of our customers. Design and construction choices, lifetime services, and efficient construction enable the lifecycle emissions of our products to be minimised.

Therefore, we are aiming to halve the CO2 emissions of both our energy consumption and our own projects by 2030 compared to 2019. In addition, our goal is to enable our customers to have a carbon neutral use of buildings.

Construction also produces waste and momentary impacts such as noise, dust and vibration. We are actively working to mitigate these negative impacts by developing reporting and more efficient practices at our sites.

Value from our material sustainability themes
Our material sustainability themes are part of our value creation, by creating and maintaining our value:

1. Creating sustainable, comfortable and safe urban development by utilising
opportunities provided by the circular economy
• Value for society, environment and customers:
   - business opportunities
   - brand value

2. Compliance with good corporate governance and preventing corruption
and the grey economy
• Value for partners, society and owners:
   - risk management

3. Occupational safety
• Value for personnel:
   - risk management

4. Promoting the personnel’s occupational well-being and competence
development
• Value for personnel:
   - brand value
   - risk management

5. Implementing responsible subcontracting and procurement
• Value for partners, society and environment:
   - risk management
   - brand value
   - partnership opportunities

6. Reducing the environmental impact of the YIT’s own operations
• Value for environment, customers and society:
   - business opportunities
   - risk management
   - brand value

Material themes and materiality assessmentMaterial themes and materiality assessment

The foundation for our sustainability

What are the most significant aspects of sustainability for us? What do our stakeholders expect from us?

We conducted a materiality assessment process to find answers to these questions in collaboration with an independent third party in summer 2018. The questionnaire included 22 sustainability themes and invited the respondents to assess the importance of each team to YIT’s operations and YIT’s impacts on the surrounding society, environment and economy. The survey was met with widespread interest and we received more than 2,000 responses in total. The respondents represented a wide range of stakeholders, including customers, employees, shareholders, investors, partners, municipalities and the public administration.

We analysed the survey results in YIT’s internal workshops and strategy development processes. As a result of our analysis, we chose YIT’s six most
significant sustainable development themes. Our material sustainability themes are also described in our materiality matrix.

YIT’s Group Management Team confirmed and approved the materiality matrix in November 2018. Each year we set targets and performance
indicators for each theme. See current targets below.

The results of the materiality assessment serve as the guideline for our sustainability work.

Material themes

Creating sustainable, comfortable and safe urban development by utilising opportunities provided by the circular economy.
Compliance with good corporate governance and preventing corruption and the grey economy.
Occupational safety.
Promoting the personnel’s occupational well-being and competence development.
Implementing responsible subcontracting and procurement.
Reducing the environmental impacts of YIT’s own operations.

Managing material themesManaging material themes

Collaboration in society Collaboration in society

Memberships in associations

Confederation of Finnish Construction Industries RT

Stakeholder collaboration

This is how we meet our stakeholders’ expectations.

100+ Good Deeds

Our 100 Good Deeds campaign was a gift to a 100-year-old Finland, however we still continue the good deeds. Through good deeds we share joy around us.

Read more about the 100+ Good Deeds (in Finnish).

100 good deeds

Sponsoring

We spread common good via our 100 Good Deeds programme. Read more about our sponsoring practices.

SPONSORING

Yards bring people together

The yard area—a place shared by residents—has always been a meeting place for neighbours: generations of them, some who have lived there for a long time and some who have moved there from elsewhere. In recent years, however, yards have lost some of their ability to bring people together.

This is why in the Finland 100 centenary year, we wanted to bring more life to sustainable cities and make yards an environment where everyone feels more at ease. Good planning and construction can assist the creation and development of comfortable, safe neighbourhoods. Pleasant surroundings, hassle-free everyday life, familiar neighbours and a sense of community make people attached to the area in which they live. Those are the environments we want to build also in the future.

More Life in Yards

In the spring 2017, we examined future of increasingly comfortable and functional yard areas with the help of workshops where experts from different fields will be challenged to come up with new ideas and solutions for yards. In addition, we will inspire Finns to take part in our project by means of crowdsourcing.

Read more about the concept and download the available materials here:

The Park of the Future

To celebrate Finland’s centenary year, we donated a park designed together, by applying the ideas of the More Life in Yards Concept. The park in question is Sähköttäjänpuisto in eastern Pasila, recommended by the city of Helsinki as a suitable park for this special project.

You can read more about the park via the link:

THE PARK OF THE FUTURE