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.
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
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
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
YIT and UN Sustainable Development Goals (SDG)YIT and UN 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
12. Responsible consumption and production
13. Climate action
16. Peace, justice and strong institutions
8. Decent work and economic growth.
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 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.
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
• 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.
Managing material themesManaging material themes
This is how we manage our material sustainability themes.
Collaboration in society Collaboration in society
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).
We spread common good via our 100 Good Deeds programme. Read more about our sponsoring practices.
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: