Bravida Holding AB (publ) (BRAV) Earnings Call Transcript & Summary

A great buildings make a difference. That's why Bravida exists. Welcome, everyone, to this presentation of the sustainability strategy of Bravida. My name is Mattias Johansson, and I'm CEO in Bravida. So the Nordics, over 1/3 of all CO2 emission comes from housing and construction in the Nordics. I've heard a number around 40% before, and I think that is Europe. But anyway, a lot of the CO2 emissions in our society comes from the industry we are in. And I think that's why it's so important that Bravida that we contribute to sustainable development. We are focusing on environmental responsibilities that we have in Bravida, our social responsibility and our economic responsibility. That's 3 major parts of our strategy. So talking about Bravida sustainability work and taking that to the next level. Our work is based on our own sustainability policy that was adopted in the beginning of this year, January 2021. We are clarifying how our customer offering can help our customers to improve their work, how they can use less energy resources, et cetera. And yes, to be clear, we want to help our customers to be more successful in their sustainability works. We're also trying to decrease our level of CO2 emissions coming from our car fleet. So we're changing the car fleet and are focusing on many different local things, our own energy consumption in our own premises, et cetera. And we are working together with the customers to improve to lower their energy consumptions. And that is 4 ways of taking our sustainability work to the next level. Bravida complies with international principles and agreements, it's based on the SDG goals, Paris agreement, EU taxonomy and ESG. And this is, of course, a base for all work going ahead within our company. The governance structure is starting with the Board of Directors. They are talking to us again around the strategy, what they are asking from us as a company. The group management are working with the strategy and how we can actually make sure that the organization is working with it in a good way. And we have sustainability committee that is taking this to the next step and make sure that the different countries are working with the right things as well. So the guidance and the governance structure is in place to follow up on this. We have some work on doing regarding how to measure some of these things, but the governance, the structure is in place. So Bravida have different types of focusing regarding this. We have a customer offering, again we want to help the customers with their sustainability work. We can help them use less energy. We are working with every time we actually visiting customers, we are helping them to reduce their emissions. If we are changing a fan, a pump, lighting in the building or we are controlling the whole building throughout the building automation, we are supporting the customers. Energy consumption in our own buildings, the preferences we are hiring, it's important what kind of energy we're using, how much electricity we are using, et cetera. Our vehicles, our car fleet, we have certain targets for the car fleet. We are buying more and more electrical cars today, and we are one of the first in line trying to buy the new cars that is coming out for the service business we're having. And then, of course, we have materials and waste. We are working closely with our partners on the supplier side to make sure that we can improve the work, how to choose the right type of products. Social responsibility is, of course, important as well. Health and safety, we are focusing a lot to make sure that the work in places we are actually offering to our employees, but also to other people in the industry is safe for our employees. Our highest focus is to make sure that everyone in Bravida comes home, safe and in a safe way every day from work. Diversity and employee development is also 1 thing that we focus a lot on. And then we have the conduct part. Conduct and governance is important. We have supply chain, which we're focusing on, make sure that we have the right type of suppliers and that we also have suppliers that are working with this in their business as well. That is important for us. And by doing all these things, we are covering 6 out of the 17 SDGs that we have as a global targets in the society. Environmental responsibilities. By 2045, we want to be neutral, climate neutral. We want to have reached 55% lower impact in 2030. And this is something we want to do throughout the value chain. We want to do that internally in Bravida. We want to do that with our customers, and we're doing that with a comprehensive service and installation solutions with the customers. And the entire value chain is what we are talking about, and that should be climate neutral in 2045. We're helping customers reduce their climate impact, as I said a couple of times. Throughout services, we aim to help customers cut emissions by 55% by 2030. We're doing this by regular services. We're doing it with simple efficiency improvement, energy optimizations. So when we are out in the field meeting the customers, our technicians, our project leaders, our leaders are always supposed to help the customers meeting their sustainable targets, helping them reduce, cut their emissions. We can do this by providing new energy solutions more effective system but also new type of energy, buying this together with building automation to control the total building to make sure that we connect all the different systems that we in Bravida is 1 of the few who can act like a one-stop shop, but also make sure that we are not for example, heating a building at the same time as we are using energy to cool this down, and that is something we can do with the building automation, and then, of course, sustainable material choices. That is important, not only the material as such, but how the transport is done, how large orders, how much transport, et cetera, it is. So this is a really -- This is really the reason why Bravida exists from a sustainability perspective, we can help the society to change. Our own climate journey. 100% 2023 will be taken down with 30% by 2025. And this is mainly done by CO2 emissions coming from the existing cars. We are changing the fossil-driven cars to nonfossil driven. By 2030, we shall have reduced the impact the CO2 emissions by 55% and we shall be neutral by 2045. We are adapting new -- we are adapting our operations. Energy consumption in own buildings is, of course, important to make sure that we actually do the same to ourselves that we can help our customers to do, to make sure that we are not using more energy that needed, to make sure we are improving the type of energy we are using to be on our toes, to make sure that we are choosing the right type of premises for our business. That is, of course, very important. Vehicles in transport. I mentioned it a couple of times, but we are switching to nonfossil-driven cars. We are expanding the possibility to charge our cars within Bravida, and we are trying to do as good service as possible to make sure in our own buildings, to make sure that we use this as a little carbon dioxide as possible, but also not only for the buildings but also for the transport. Materials and waste, again, important. Planning extremely thoroughly to make sure that we are not using too much, buying too much material, so we get waste, get them in -- just in time in the perspective and in combination with making sure that we are not using too much logistics than needed, and we are training our staff in doing this in a very -- in a better way than we have done before. To make sure that everyone knows that Bravida strategy regarding sustainability is, of course, very important. Regarding the material, we are always trying to improve the sourcing, the different type of materials, the different type of partners we're having on the supply side, and that is even more important going ahead. So how we can reduce our most significant environmental impact is, of course, that we, first, continue to do the investment regarding the cars, to make sure it is smooth, easy to charge electrical cars, both internally as well as for the customers. BraVal is Bravida's way of actually labeling environmentally assessed products. BraVal should be a label or is a label within Bravida where we're actually telling the staff in Bravida that if you're buying this product, which is labeled BraVal, you are doing a good job. You are buying the right product in sustainability perspective. We have some pilot projects, the Bravida Green Hub that we have been opening in all 4 countries, started in Oslo a year ago. We opened new green hubs, the 1st of September in Stockholm, Gothenburg, Helsinki, Aarhus and Copenhagen, Kristiansand, Trondheim and Bergen, I think I remember it all. And then another one, 1st of October in [indiscernible], where we actually are providing close to fossil-free services to our customers that are placed in the city center of these cities. They can get service without any fossil-driven cars. They don't have to pay for parking lots, tolls. We have made sure that our suppliers also are delivering the materials in a nonfossil driven vehicles as well, not from the source where they are produced, but from the nearest central warehouses. So we are actually improving. We're giving the customers a better service, and close to fossil-free service. And we can see the interest for this is really high, but we also see that some of the customers are not really ready to take this step because they, if they don't understand, or if they don't walk the talk, I don't know. But this is something that is growing and this is a very interesting pilot project that we are doing on a quite wide basis to help our customers to improve their sustainability work. And then we have a pilot together with 1 partner, which is about circularity in the industry as well. Some of the customers aren't ready, as I said, but some other customers is really in the front end and discussing together with us today how we can reuse material, not taking used material way and install new material. But actually use the old material so we can still get the high-quality installation but with using as much as possible of the old equipment. That's very interesting, I would say. Social responsibility. Health and safety is something high, I mentioned, diversity and employee development. Of course, this is really interesting. And not all our 12,000 employees have really understood what's -- what this is really about. But I think educating all our leaders is important because the future generation, both regarding the people we want to hire as well as their future customers. They are thinking about sustainability in a total different way. And we really need to focus on this part to be able to be a very attractive employer in the coming years. And we want to be and take the responsibility and communicate this in a better way to the market in the industry to make sure that this happens. But if you're working in Bravida, you should be treated equally in a very good way in -- we should have a very good manner, et cetera. And the teams that we are creating, building are responsible for all of these together with the leaders. And this is something we want to develop together with all our employees. And I think we are coming quite far on this journey, in Bravida, but there are so much more we can do. And this is one of the focus area just because of that, of course. Health and Safety in Bravida, we are talking about targets for sick leave that should be below 3%. LTIFR below 5.5%. We are around 8.5% today. We have reached the target or met the target in Norway. We have still a journey to go in both Sweden and Denmark and Finland. Denmark and Finland are improving a lot. Sweden are a bit flat for the moment. So we really need to increase this work a lot in all these 3 countries, and we need to continue the good work in Norway. We are building team with which the employees should be able to feel safe and thrive and develop. We put health and safety first, and we think ahead and we can care -- and we need to care about each other, that's our ambition. We have some activities to be able to meet this target and we should investigate accident and close accident in a very thorough way, learn from that and make sure that we don't do the same mistakes twice. We have a systematic way of working with -- to prevent accidents. We have the safety week every year. We have health and safety training, systematic risk assessment. We have the stop approach, which means that we should actually stop, think, observe and plan the work really thoroughly before we start it. And all employees in Bravida should feel that I'm backing up that they are working safe or not at all. And sometimes, it's quite tricky for all our, for example, service technicians that are shifting one service place to another, one customer to another. Sometimes, we need professional customers who knows this, who is really understanding. And sometimes we meet customers that are not that familiar with how our technicians can work safe. And that is important for us to make sure that our technicians know that they are backed up from Bravida as a company to make sure, again, that they work safe or not at all. We have our annual health and safety week, week 37 every year. We have an extremely high focus on this to make sure that we are giving the organization a boost to continue to train, to make sure that we have the right focus in management out to the technicians. And we have a group-wide incident management system for risk management, where we can find reasons why accidents or close accidents are happening. Regarding the sick leave, we haven't met the target yet, and I think target is something you are striving after. When you meet the target, you need to put another one. And that is the same with the injuries. We have still a way to go, but this is a really important job and is very high on the agenda in Bravida. Employee development in Bravida, of course, we want to be the most attractive employer in the industry. We want to have employees who are committed to ensuring customer success. We want to have employees who want to support our sustainability journey, and we want to have people who learn new things every day and take responsibility for the future. We need to have employees who are thinking more about taking sustainability choices. That is important for us. We have targets regarding eNPS, about 20 and we have -- we need to reduce the turnover in an organization, and we have a target here that assess that we need want to take that down with 3% units in the coming years. So together, we are building the best team in the business. Diversity broadens our recruitment base that is, of course, important when we want to be more Bravidians. We want to grow, we need more resources, and that's why it's so important that we broaden our base when we're hiring new talents. Together, we are building a team which employees thrive and develop and we promote good leadership and skills development for all. We recruit, induct new employees we develop employees in existing roles, and we achieve inclusive and inspiring leadership. That is a couple of things that we are focusing on in Bravida. Conduct and supply chain, of course, this is so important for us as employee, we expect responsibility behavior for each -- from each other, and we have a quality high expectations for our suppliers. We have long-term goals regarding this, and -- we have long-term goals as well as short-term goals. And for example, all employees are going to take educations with in Bravida, and we started one education a couple of months ago, launching the education regarding code of conduct in Sweden and security regarding IT in -- just before the summer, and we are following up how many of the employees who have taken the courses, et cetera. We're going to launch this in the other countries as well. And one example is the code of conduct education is taken by 30% -- around 30% in Sweden in 2 months' time. And this is, of course, something we need to improve, even more. But 30% within 2 months' time is quite a good number. We need to improve this even more, and we are going to launch this in the other countries, the coming quarters as well. Mutual compass for business activities, The Bravida Way and our Code of Conduct act as our compass and help us create healthy long-term business relationship and resilient society. And we have our Bravida Way, which is the way we operate, how we actually behave, what kind of systems we are using, one culture and Bravida Code of Conduct is one part of the Bravida Way. Code of Conduct training for all employees. And I mentioned, we've just launched that in Sweden, close to 40% or around 40% have trained that are taking the course already. We call it high requirements for our suppliers as ourselves. We have high expectations on our sales in Bravida. I have high expectation on myself, on my management group as well as all other leaders in Bravida, but we also have high requirements of our suppliers. Being a supplier or even a partner to Bravida means something, you need to sign our standards regarding Code of Conduct for suppliers and all suppliers must meet the requirements defined in our -- in the Bravida's Code of Conduct, only assessed and approved suppliers in the purchasing system. So when you're using our purchasing system and buying a product, you should be able to choose a broad vol product, and you know if the supplier is in the system that, that supplier have signed our Code of Conduct for suppliers. Sustainability -- sustainable solutions are where our future starts, and will be at the heart of everything we do. Our society is changing and Bravida is a part of that change. We need to take part in this change, and we want to lead the change in our industry. It is actually actions and the result out of our actions that is counted. We can't have actions that not give any results. We need to change our way of acting. We need more employees who is taking more sustainability decisions, et cetera. and we don't have all the answers today, but we are learning, developing and working together to take the stops or the steps needed, the actions needed, and I think that is important. We have started the journey a couple of years back. We are discussing it more and more often, and we are getting better and better on this and this strategy is really good. And the good thing with our strategy is that we can help and support the customers to do the same. So said that, thank you very much. And maybe -- I don't know if we have any listeners who want to ask a question or 2. Let's see. No, we don't have any questions. No. No questions. This broadcast or this presentation, we'll be able to -- for you to see on our web page later on. So thank you very much for listening, and have a nice day.