Corporate Sustainability Report
Staticus consolidates and grows in 2022 thanks to its resilience and agility
Corporate Sustainability Report for 2022 Photo © Miguel A. Ferreira
Contents Letter from Sustainability Health and Safety 03group CEO 08Highlights 2022 13 of employees Putting Staticus Sustainability Sustainability Active 07 strategy into action 10 Goals 2023 15 philanthropy
Letter From the Group CEO Go to contents 3 Healthy financial results secure Staticus consolidates and our long-term future grows in 2022 thanks to its Our commitment to the long-term and our extremely resilience and agility “talented team enabled us to secure consistent growth and profitability in 2022, in line with our 3 year strategy. Our turnover grew from €62 million to €80 Nevertheless, the direction and mood of million. This growth was delivered not with the year was heavily impacted by Russia’s a higher volume of projects, but with higher invasion of Ukraine in late February. Along value projects. Indeed, the average value with the personal impact this had on us all, Aušra Vankevičiūtė / of our projects increased to €15 million, it also represented another major disruption Group CEO, Staticus and we secured our highest value project for our operations following COVID-19 and to date, the over €47 million facade for the the upheaval in the supply chain that had Landspítali Hospital in Iceland. impacted us in the previous two years. The focus of our management team in 2022 Initially, it was impossible to tell what the was on ensuring stable income and revenue impact of the war would be: how long with a high priority on cash flow. I am very it would last or what it meant for the proud of our management team, and the geopolitical situation. Furthermore, many of fact that our quite conservative approach in our team were understandably scared and rd For the 3 year in a row, I am starting my letter by largest-ever contract, enter new markets, grow uncertain times has yielded a very healthy unsettled. Meanwhile, the markets reacted writing that this was a year like never before. our annual revenue, and expand our team. We financial result. We remain unleveraged and and many developers started to reconsider remain unleveraged and in a healthy financial have good liquidity ratios. investments in new projects. After the turbulence of COVID-19 and global position, which gives us something hugely We benefited from the fact that we had supply chain disruption, 2022 saw the outbreak valuable in these turbulent times - security. This Prioritising resilience and long-term taken the strategic decision years before of war and the subsequent crises in energy and means safety and stability for our people and stability in volatile times to build our supply chain without using material prices. I am immensely proud that, in our clients, and is the foundation for all of the companies from Russia or Belarus. the face of these challenges, Staticus once again valuable work we do in R&D and sustainability, 2022 started very positively for us, with Nevertheless, material prices, including the launch of our corporate sustainability glass, increased after the onset of war, demonstrated its resilience. Our team was agile, and in delivering benchmark-setting projects. strategy and an extensive rebrand (more on and the energy crisis followed. Our teams tenacious and creative, enabling us to secure our those in a moment). worked exceptionally hard and effectively
Letter From the Group CEO Go to contents 4 to manage the situation, and I would also A sustainability strategy rooted in Reevaluating our approach like to thank our clients for their cooperation partnership and long-term thinking to negotiation and understanding. We were able to openly share each other’s pain points, and to also 2022 saw the publication of our corporate Another of our sustainability focus areas, share costs so that no single party was sustainability strategy. In our 3 year strategic Partnership, led us to reconsider the way we shouldering all of the costs. cycle formulated in 2020, we committed to approach negotiation with the help of leading becoming leaders in sustainability. We spent negotiation strategist Keld Jensen. Our The situation stabilised after two or three 2 years understanding the market’s needs, aim is to be profitable, and for our partners months. Some projects were put on hold, developing an extended view of what our to be profitable as well, which is especially others continued, and new projects came up sustainability offering should encompass important in a sector with low profit margins as well. Nevertheless, even with the situation that goes well beyond simply looking at CO2 like construction. stable, it was necessary to prioritise emissions or planting trees. business resilience and long-term stability in Working together with Keld Jensen and terms of the projects we took on. Therefore, We then cooperated with the Swiss exploring his Smartnership framework, we made a strategic decision to focus more sustainability consultancy, Sustainserv, who we looked into ways to find hidden value in on governmental projects, and ensure all guided us through the development of our negotiations that create win-win situations. projects we took on had secure cash flow. sustainability strategy and helped us identify Achieving this requires a high level of 5 focus areas: transparency. Furthermore, both parties need As a result of this approach we now have to have a mindset that is oriented around three major hospital projects secured in the 01 Transparency teamwork and delivering the project in the Nordic region: the Radiumhospitalet in Oslo, best way possible. the 118,000m2 North Zealand Hospital in 02 Partnership Denmark, and most the Landspitali Hospital We look forward to launching our corporate in Iceland impressively our first project in 03 Innovation in Design and Delivery negotiation strategy in 2023, which will Iceland and our largest to ever in terms of provide guidelines for our organisation, and contract value (€47 million). 04 Climate Protection we hope will become a benchmark for the industry. These projects, and the many others 05 Being a Sustainable Organisation we have secured and are working on, represented a double victory for our Each of these focuses was then broken Continuing our Agile journey company in 2022. Firstly, these are exciting down into specific elements. For example, projects in important markets that keep us included within the Transparency focus area In 2022, we decided to change gears in our at the cutting edge of façade design and is a commitment to business resilience journey of becoming an Agile organisation. technology. Secondly, they ensure our long through risk and cost management. After This included developing a new Agile term resilience and stability thanks to their all, there is no point in having amazing framework, and continuing to listen closely to scale and government backing. sustainability initiatives if our company is not feedback from the cross-functional project around for the long-term to deliver on them. teams that are now using Agile methods.
Letter From the Group CEO Go to contents 5 Moving from a typical hierarchical structure Finally, in 2022 we organised the creation to a team-based one sounds simple. In of our own testing rig, that will be CWCT and fact, it is a complex long-term shift that EU compliant. This rig will be a major step involves structural changes, and shifts in forward in terms of our in-house knowledge our mindset. I am very happy that we have and Quality Assurance processes, as it will open-minded people who are ready to be enable us to perform continuous in-house ambassadors of change. tests. The rig is set to be completed in Q2 of 2023. Progress in major R&D projects A new look and ongoing digitalization I am proud that in 2022 Staticus still managed to make significant progress in As we take a leading role in areas such our amazing R&D projects, despite the as sustainability and Agile working, it is unpredictable context. important that we share our ideas and actions with a wide audience. In 2022, we Together with our project partners KTU, relaunched the Staticus brand with a fresh SINTEF, and Oslo Met, we conducted visual look and fresh perspectives to share extensive research into IoT and digital twins, as well. We have received very positive and worked on developing our hybrid façade feedback, and this rebrand has helped to product that combines recycled aluminium amplify our voice in the sector. with timber. While we are keen to bring this solution to market - we see significant 2022 also saw a focused continuation of demand for it - we are also exercising a the digitalization that is essential for our careful approach. We are responsible for business. For example, we launched our developing this technology, and therefore new 4D tool that enables stakeholders to need to test it thoroughly in cooperation easily view progress data on a project. with researchers and be sure that it meets our quality standard. Another major step forward in our R&D activities in 2022 was the launch of our own system for designing and creating aluminium profiles, which was already used on the Separatorn 1 project in Stockholm. Landspitali University Hospital | Reykjavik, Iceland VVisualisatisualisation © Cion © Corpus 3 deorpus 3 design grsign groupoup
Letter From the Group CEO Go to contents 6 Key focuses for Strategic cycle completion R&D Sustainability, talent Staticus in 2023 and transformation A 3 year strategic cycle will be completed 2023 is set to be another intensive and at the end of 2023. Therefore, one of our exciting year in terms of our R&D activities. In terms of our sustainability activities, main focuses for this year will be to ensure We will continue with the development of 2023 is all about implementation. We Building on the success and that we have delivered what we committed our hybrid facade. This will include building are now in the process of defining the to 3 years ago. In terms of revenue, we are a prototype and then demolishing part of KPIs for each of the focus areas in our resilience of 2022, we have a number on track to achieve our goal of EUR100 a wall in our facility so we can install the Corporate Sustainability strategy, and we of important focuses in 2023 that will million annual turnover in 2023. Our market prototype and test how the IoT sensors are working out how to measure these so penetration is also on track, and our focus work in a real environment. We also expect we can provide full transparency and clarity keep us growing sustainably. in 2023 will be on maintaining the current to complete the construction of our testing on exactly how we are acting sustainably. number of markets we have, with some rig in 2023. We also intend to expand Additionally, our Sustainability Lead, slight growth planned. For example, we will the number of universities and research Anastasiya Popova, will continue her work look to further expand in the UK market institutions we cooperate with. on the CWCT sustainability workstreams and plan to add to our team there, and we committee for embodied carbon in facades. also hope to secure our first projects in the I believe that these activities, and our long Benelux and Swiss markets. term commitment to R&D, is boosting Our continued transformation into an Agile the innovation mindset within Staticus, organisation will continue, with the ongoing Naturally, our attention will then turn to the providing a space similar to a playground reorganisation of our teams and working next strategic cycle, which runs from 2024- where people can test, try and experiment. practices. In 2023, we will put in place clear 2027. As usual, we are encouraging all descriptions of roles and responsibilities Staticus employees to actively participate in within this new framework. the process of formulating our new strategy. We have already formed a strategic team of employees from different departments. This team was formed based on the insights they provided and their desire to contribute to the development of our strategy. We will once again be enlisting the help of the prestigious Swiss business school IMD with formulating our strategy.
Corporate Sustainability Go to contents 7 Through corporate sustainability we create long- In 2021, we concluded Staticus’ Corporate Sustainability Putting Staticus term value, focusing on the social, environmental, Strategy for the upcoming years. In 2022, we moved to and economic dimensions of doing business. its implementation phase. Our Corporate Sustainability Sustainability strategy Strategy consists of 5 key focus areas: transparency, Our commitment to sustainability and long-term partnerships, innovation in design and delivery, climate into action thinking manifests itself in clear, concrete actions. protection, and being a sustainable organisation. 1. Reporting / Communication: 1. Sustainable mindset as 1. Monitoring of legislation 1. Product carbon footprint 1. Education and Training. a foundation for partnerships. on sustainable construction. Establish sustainability Establish a platform for project- Sustainable Mindset; reporting on material topics; 2.Supply chain management: 2.Low Carbon Systems. specific analysis. Talent development; Develop customer-specific Reskilling. ESG risk analysis of supply chain; 3.Long-term engagement. 2.Value chain analysis of carbon footprint: reporting. Roll-out ESG compliance criteria 2.Cross Functional teams. 4.Circular Economy: Estimate scope 1, 2, 3 emissions; 2.Compliance: and monitoring; Development of carbon reduction 3.Diversity and Inclusion. Use supplier assessment platform Design for disassembly and reuse; Monitoring of legislation; targets incl. supplier engagement. for management. Zero waste: 4.Engagement. Labor practice; Health & Safety: zero accidents. 3. Cooperation with research Optimise in-house waste management; Employee engagement; and educational institutions. Optimise site waste management; Community engagement 3.Business resilience: Operational efficiency. Risk management; Cost management.
Corporate Sustainability Go to contents 8 Sustainability In 2022, we took steps forward in the implementation of each sustainability objective according to our 5 sustainability focus Highlights areas. The summary below provides highlights of our activities. Our Sustainability Report 2022 gives a comprehensive 2022 overview of the current situation in each area. 01 Transparency implemented projects. The goals for the contains questions about our suppliers’ future are outlined with short-term and long- sustainability strategies, which low-carbon At Staticus, we provide transparency term targets. products are available, and sustainability through sustainability reporting on material documentation such as Environmental topics. Reporting is a vital component of Product Declarations. The purpose of the our sustainability activities, because it 02 Partnerships survey is to analyse the sustainability risk of ensures we remain accountable and keeps our supply chain and assess the status quo, us focused on continual improvement. We build long-term relationships with our with the final goal of engaging our suppliers This year, for the first time, we prepared clients, partners and suppliers, and the in the development of carbon reduction comprehensive sustainability reporting foundation for these is always a mindset targets. according to the 5 focus areas of our focused on being sustainable. With our corporate sustainability strategy. suppliers, we collaborate closely to not only meet sustainability specifications, 03 Innovation in Design The Sustainability Report 2022 provides but to develop carbon reduction targets a detailed account of our activities and that accelerate our progress and exceed and Delivery performance over the year. The progress industry-wide common practices. in each sustainability objective from the We have been building a portfolio of low- 5 sustainability focus areas is thoroughly In 2022, we developed a digital carbon R&D systems that are tailored to described with KPIs, statistics and sustainability survey. This survey meet and exceed the relevant sustainability Økern Portal | Norway, Oslo Photo © Andrius Gudelis
Corporate Sustainability Go to contents 9 specifications (the R&D section of this Calculator provided by the Supply Chain the Steering Committee that consists of the report provides more information on these). Sustainability School. This analysis showed representatives from the Board of Directors. In 2022, we extended our R&D activities to that 97% of the company’s total carbon Consistent financial performance in the embed circular economy principles into our emissions originate from materials usage. past years is the foundation for the Group’s façade design. The remaining 3% come mainly from sustainable work. factory operation and transportation. These We conducted a disassembly exercise of results demonstrated the importance of Our revenues have increased significantly a unitized façade system in a sequence engagement with our suppliers and the over the past year, driven by our successful based on the component’s lifetime. During availability of low-carbon raw materials efforts to expand our customer base and this exercise we identified critical system in the market to achieve carbon footprint increase sales. In addition, we have carefully components in terms of accessibility and reductions in the end-product. managed our expenses and invested in potential for replacement or reuse. Then, strategic initiatives that have helped us in collaboration with the Dutch façade Additionally, in 2022 we were actively improve our operations and drive further consultants Frontwise, we determined involved in CWCT sustainability growth. the disassembly rating of a state-of-the- workstreams dedicated to establishing art unitized façade system to quantify the industry standards for embodied carbon We are confident that this success will impact of design changes on the overall calculation and using Environmental continue into the future for several reasons. disassembly potential. The results of this Product Declarations. First, we have a clear and focused strategy exercise are being used to develop the next that guides our decision-making and helps generation of low-carbon R&D systems that us stay aligned with our goals. Second, take into consideration disassembly and 05 Sustainable Organisation we have a talented and dedicated team of reuse criteria. employees who are committed to delivering We foster a sustainability mindset within high-quality products and services to our employees and cascade sustainability our customers. Finally, we have a strong 04 Climate Protection objectives into the organisation. In financial foundation that allows us to 2022, to accelerate implementation of weather market fluctuations and invest in As an end-to-end façade contractor, we are our sustainability strategy, we formed a long-term growth. in a strong position to minimise the carbon Sustainability Committee consisting of 16 footprint of our own operations, and of each members representing each division in the In summary, we are proud of our consistent project we work on. We thoroughly assess company. This way, each division started to financial performance over the past the entire life cycle of the products we own and report on sustainability objectives year, and we believe that this success produce, a process which begins with the to the Sustainability Lead. The Sustainability is sustainable due to our clear strategy, purchasing of raw materials and runs all the Committee works in an agile way and talented team, and strong financial way to the end-of-life phase of every façade. meets on a bi-weekly basis to discuss the foundation. We look forward to continuing progress of sustainability-related initiatives, to deliver value to our customers and In 2022, we estimated our value chain’s resolve issues and define next steps. The shareholders in the years ahead. carbon footprint using the Carbon Sustainability Committee is governed by
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Corporate Sustainability Go to contents 10 Sustainability Goals 2023 Focus area Sustainability Objective North Star Near-term goal for 2023 Transparency Reporting / Communication — Produce annual sustainability reporting on material topics — Publish Sustainability Report — Have automated customer-specific reporting — Extend functionality and use of 4D reporting tool Compliance — Meet and exceed compliance requirements in each market — Achieve full compliance with each market requirement — Health & Safety: Zero accidents Business resilience — Thoroughly manage risks and costs associated with changes — Deploy contract management IT tool for internal in order to ensure our business operates in a resilient and coordination, and for the approval and storage of contracts adaptive way in accordance with harmonised rules — Sustain the annual growth ≥15% — Ensure liquidity >1.1 — Maintain financial performance Partnerships A sustainable mindset as — Build long-term relationships with clients, partners and — Join partner network of New London Architecture (NLA) a foundation for partnerships suppliers who share our sustainable mindset to participate in the Net Zero programme — Create our negotiation strategy, integrating sustainability criteria, and apply Smartnership with trusted partners on pilot projects
Corporate Sustainability Go to contents 11 Supply chain management — Have a regularly updated, centralised library of suppliers’ — With the help of a sustainability survey, collect data on sustainability data the current sustainability situation from 100% of our tier — Embed sustainability criteria into procurement decisions A and 50% of our tier B suppliers — Develop carbon reduction targets in collaboration — Define the sustainability criteria to be embedded into with suppliers our procurement process Cooperation with universities — Collaborate with high-ranked universities and research — Start collaboration with a new research institution to drive and research institutions institutions to develop R&D solutions, share knowledge, and the implementation of R&D projects attract top-level employees — Increase the rate of students employed after internships Innovation Monitoring of legislation — Be up-to-date regarding existing sustainability regulations — Full compliance with each market requirement in Design on sustainable construction in each market, and be in position to influence these — Update library of regulations and client requirements and Delivery regulations in each market Low carbon R&D systems — Develop and use low-carbon façade systems in at least — Project that uses our next generation of Hybrid Unitized in 50% of our projects - these systems should satisfy low Façade (HUF) systems is under construction carbon footprint and high thermal insulation requirements Long-term engagement — Manage the façade lifecycle through value added services, — Develop a façade service model for long-term engagement replaceable skins and IoT solutions beyond the warranty and after-warranty period — Focus on the integration of real-time data obtained via sensors in the façade into the digital twin Circular economy — Develop façade systems that satisfy the requirements — Calculate and compare the disassembly rating of state-of- of design for disassembly and reuse, and use these systems the-art unitized façade systems, and identify which design in projects changes are required — Achieve Zero Waste in-house and on-site — Zero plastic waste on-site — Increase the efficiency of material use by deploying optimization tools in 3D design, and tracking material flow in the ERP system — Achieve a 5% reduction of aluminium leftovers with the help of standardised design solutions
Corporate Sustainability Go to contents 12 Climate Protection Product carbon footprint — Have the automated measurement of project-specific CO2 — Extend our internal database of Environmental Product footprints as a standard performance criteria Declarations and CO2 emissions — Store CO2 emissions data in the internal ERP system — Automate embodied carbon assessment at the tender stage Value chain carbon — Annually measure scope 1, 2, and 3 emissions — Assess scope 1,2, and 3 emissions according footprint analysis — Develop carbon reduction targets to GHG Protocol — Define carbon reduction targets and corresponding reduction measures Sustainable Education and training — Foster a sustainability mindset within our employees — Organise two Knowledge Club sessions dedicated to Organisation — Nurture a culture of learning which includes talent sustainability development, career promotion and reskilling — Increase the number of training hours per employee by 40% — Increase the ratio of promoted employees by 1% Cross-functional teams — Implement the Agile way of working in commercial projects — Scale our Agile framework, based on Releases, across — Achieve a high level of Agile maturity through self-managing the organisation teams and a changed role for management — Use Agile scoring, as well as client satisfaction and project team satisfaction, to monitor how Agile is being implemented Diversity and Inclusion — Celebrate diversity and practice inclusion by providing equal — Maintain equal conditions for employees in the same employment opportunities position, regardless of nationality, cultural background, gender or age Engagement — Maintain and strengthen employee engagement — Increase employee engagement by 6% — Create meaningful social impact by supporting the — Support 6 disadvantaged families, including community we work in with our charitable activities the renovation of their homes — Increase employee involvement — Support 47 disadvantaged children in our philanthropic activities — Increase employee involvement in our charitable activities by 5%
Corporate Sustainability Go to contents 13 Our aim is always to ensure the overall This approach is crystalised in our zero injuries goal for all Health and safety, health and well-being of anyone employees and subcontractors. We are committed to achieving a strong health and safety record each year, and work continuously involved in or affected by the work we do. to ensure our activities are in line with industry best practice. Safety of employees Our Health and Safety record in 2022 A people-first Health Nevertheless, our goal is to achieve zero and Safety Policy work-related accidents of any kind in We are proud that our efforts in Health and a calendar year by 2025. Safety resulted in a very strong record in Our people-first approach to workplace culture rests on two key pillars: Preventive action will be key to achieving this goal. We will increase the collection of serious or 01 respect for all stakeholders data on near misses - incidents that did not 0 fatal accidents cause damage but could have done. This 02 the continuous pursuit of will enable us to consistently identify unsafe knowledge and excellence. situations and take action to prevent them. accident frequency per 2.8 million working hours. To ensure this vision is also an everyday reality within our team, we follow our Health A holistic approach to Health To bolster the safety and well-being of and Safety Policy which lays out specific and Safety employees, subcontractors, partners, and actions that all parties involved can take other stakeholders, we regularly provide in order to achieve an injury-free work Here at Staticus, our zero injuries theoretical and practical training sessions environment. policy applies to all employees and for our team. In 2022, these sessions subcontractors. In fact, it is focused on focused on a range of topics, including anyone who is related to or affected by working at heights and rescue actions in Targeted preventive action to reach the work we do. Despite the significant the event of a fall, the proper wearing of our 2025 zero accidents goal challenges faced by the construction personal protective equipment, civilian and manufacturing industry with regards safety, and first aid training for workers in 2022 was a successful year in terms of to workplace safety, we aim to always hazardous environments. achieving zero serious or fatal accidents. ensure the overall health and well-being of
Corporate Sustainability Go to contents 14 everybody involved. — Health and safety management. Our dedicated in-house management In addition to safety, the measures Staticus is supported by specialised health and currently has in place also take into safety consultants that help us to ensure account workplace stress, mental health, that all our work is up to standard. and long-term health hazards posed by environmental factors like dust, noise, and — Health and safety measures to prevent poor ergonomics. accidents and injuries on construction sites and the factory floor, we have put Risk factors like noise, ergonomics, lighting in place effective measures in the areas and workplace stress are measured, and we of production, storage, transportation, carry out continuous risk assessments. delivery and installation. — Safe work methods. All our employees Health and Safety management are instructed and trained in safe work and measure methods, including lifting technique and working near the edge on open Staticus has adopted a comprehensive set structures that pose an increased fall of measures and methods to create a safe risk. Additional competence certificates working environment that is compliant with held by Staticus include ISO 14001, all relevant regulations. ISO 45001, Achilles, CHAS, and Constructionline. Our aim is to always ensure the overall safety, health and well- being of anyone involved in or affected by the work we do. This approach rests on two key pillars: respect for all stakeholders, and the continuous pursuit of knowledge and excellence.
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Corporate Sustainability Go to contents 15 Active philanthropy Our charity initiatives Home renovations Raguvėlė Children’s Day Centre Activities related to the war in Ukraine In 2022, we marked the 5 year In 2022, Staticus continued its support We reacted quickly and decisively to help anniversary of our initiative to take care of for the Raguvėlė Children’s Day Centre families affected by the war in Ukraine. We disadvantaged families by renovating their in Anykščiai. This centre supports more provided direct support to families that homes. This year, we helped a household in than 20 children, aged between 6 and managed to escape the war. the district of Panevėžys by replacing their 17, who come from socio-economically windows. These were manufactured and disadvantaged backgrounds. The funds and We partnered with Save the Children to installed just before Christmas, and we are support we provide ensure the centre has provide urgent aid, and also supplied continuing to improve this family’s home the materials it needs for its learning and medical equipment directly to Ukraine. by making sure they have access to clean extra curricular activities. These medical shipments were collected water at home. together with our partners. This support for the centre has a long We have now provided 5 families with better history - we have previously contributed living conditions. We also provide annual funds to help repair the centre after a fire, support for these families, ensuring they and we are in regular contact with the can celebrate the biggest holidays of the centre’s founder to see if further support Gifts for children year with plenty of festive food and presents is needed. We take our responsibility to support the societies we for their children. On the major holidays of the year, and work in very seriously. That is because we understand important events like the first day of Another important development this year that a sustainable future is only possible when society was a new partnership with aid and charity school, we send gifts to 45 children. They Our philanthropic activities in 2023 receive toys, books and tasty treats to is supported. As a result, our people-first approach fund Gėrio trupinėlis. bring happiness and joy on these special extends beyond our own team and partners to We are committed to supporting our local occasions. communities. In 2023, we will continue to include a range of philanthropic activities. support disadvantaged children and families.
STATICUS UAB (HQ) Metalo str. 13, LT-02190 Vilnius, Lithuania www.staticus.com