Sustainability Governance

Sustainability at Implenia

As one of Implenia’s five corporate values, sustainability has been firmly anchored in our corporate culture since 2009. We always try to think about sustainability holistically and take a lead in all its aspects – environmental, financial and social.

Content

Implenia at a glance Governance Sustainability organisation Sustainability management Recognition from rating agencies Sustainability strategy Impact of business activities Material topics Risks and opportunities created by climate change Risks and opportunities relating to impacts on other material topics of Implenia Stakeholder groups Sustainable Development Goals 2025 goals Standards and regulations

Implenia at a glance

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As Switzerland’s leading construction and real estate service provider, Implenia develops, builds and manages homes, workplaces and infrastructure for future generations in Switzerland and Germany. It also offers tunnelling and related infrastructure services in other markets. Formed in 2006, the company can look back on around 150 years of construction tradition. Implenia brings together the know-how of its highly skilled development, planning and execution units under the umbrella of an integrated multinational construction and real estate service provider. With its broad offering and the expertise of its specialists, the Group realises large, complex projects and provides client-centric support across the entire life cycle of a building or structure. It focuses on client needs and on striking a sustainable balance between commercial success and social and environmental responsibility. Implenia, with its headquarters in Opfikon near Zurich, employs more than 9,000 (FTE) people across Europe and posted revenue of CHF 3.6 billion in 2023. The company is listed on the SIX Swiss Exchange (IMPN, CH0023868554). All financial figures as well as additional information on the business model of Implenia can be found in the Annual Report.

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Vision, Mission and Values

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In order to be sustainably successful in various market segments, Implenia has organised itself into the following four divisions, each of which uses its collective expertise to operate with entrepreneurial independence: Real Estate, Buildings, Civil Engineering and Specialties. The global functions (Finance, HR, Legal, Marketing/Communications, Strategy and IT) support the divisions and provide Group-wide leadership in their areas of expertise. In order to maintain deep local roots and a close connection to customers, Implenia also has regional organisations in its markets that provide services locally.

In March 2023, Implenia acquired 100 percent of the share capital of Wincasa, Switzerland’s leading real estate service provider, from Swiss Prime Site Group. Wincasa has been made a legally and operationally independent unit within Division Buildings. With around 1,600 employees in 33 locations, Wincasa manages more than 250,000 properties throughout Switzerland. From project development and construction to operation, conversion and renovation, Implenia and Wincasa now offer a comprehensive range of services across the entire property lifecycle.

GOVERNANCE

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Implenia’s highest operational body is the Implenia Executive Committee (IEC), which is made up of the CEO, the CFO, the CHRO, the General Counsel, and the four Division Heads. The Group’s most senior supervisory body is the Board of Directors. It is responsible for the overall supervision of the Group, appoints and monitors the management and defines the strategy. The seven members of the Board are independent of the IEC and do not perform any operational roles within Implenia.

 

 

Organisation chart as at 31 December 2023

Sustainability organisation

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Implenia has dedicated structures that ensure sustainable development is embedded within the company: The Global Sustainability team helps the divisions and global functions achieve their sustainability goals. In collaboration with local sustainability specialists from the divisions and countries, the team is in charge of sustainability management and reporting; it supports sustainability measures within construction projects and promotes initiatives at Group level. The team provides both project-specific services (Sustainable Construction and Environmental Protection) and internal services (Sustainable Implenia). The Global Head of Sustainability, Rolf Wagenbach, reports directly to Anita Eckardt, who leads on sustainability on the Implenia Executive Committee as Head Specialties Division. 

The Global Sustainability Team is supported and overseen by the Sustainability Committee (SusCom), which is made up of representatives from every division and global function. The Global Head Sustainability functions as co-chair of SusCom. SusCom meets four times a year to discuss the latest issues, define sustainability goals, anticipate new regulations and trends, take strategic decisions and launch Group-wide initiatives. SusCom also reviews the Group’s sustainability reporting.

The Group’s highest operational body, the Implenia Executive Committee (IEC), also deals regularly with sustainability issues, approves the necessary resources and represents these issues to external stakeholders. Anita Eckardt sits on the IEC as Head Specialties Division and is also Chair of SusCom. She speaks for sustainability-related matters on the IEC. 

The CEO reports to the Board of Directors on sustainability issues at every regular Board meeting (about eight times a year). The Chair of SusCom also gives the Board of Directors a detailed briefing three times a year. This includes information about the status of the sustainability goals and how well they are being achieved, e.g. progress on CO2 reduction, the strategy to decarbonise by 2050, and updates on government ESG regulations. The Audit Committee, which consists of three members of the Board of Directors and meets at least three times a year, monitors both financial and ESG reporting.

The remuneration of IEC members is also linked to Implenia’s sustainability goals. 10 percent of “Short-Term Incentive” payments depend on the extent to which the member concerned achieves his or her individual sustainability goals. The Short Term Incentive makes up half of members’ basic salaries.

The Board of Directors approves the sustainability strategy and the Group’s long-term goals, taking into account the opportunities and risks involved. Two thirds of Board members have relevant experience in sustainability areas. One member holds a professorship in civil and environmental engineering and has profound knowledge of environmental matters.

Sustainability management

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Sustainable development must be implemented across all divisions and put into practice by everyone throughout the company. It is a Group-wide responsibility that touches on all activities and requires the commitment of every employee at all levels. This is why Implenia practises an integrated form of sustainability management, with a global sustainability team and specialists in the divisions and functions.

The Global Sustainability department’s job is to address significant issues in consultation with stakeholders, set Group-wide standards and propose measures and targets for the divisions and global functions. All measures are implemented in collaboration with the relevant divisions and global functions. Responsibility for implementation usually rests with operational line management in the divisions and global functions. Each division thus has at least one person responsible for safety, quality and sustainability. 

At the beginning of each year, the divisions and global functions define their annual goals, which are based on the company-wide Sustainability Goals. Over the course of the year, divisional management meets the individuals responsible for the targets at a series of “Touchpoint” sessions. At the first Touchpoint, the annual goals are discussed, amended where necessary and signed off. At subsequent Touchpoints, the progress of implementation is discussed and next steps are defined. This process allows the company to check regularly whether the measures are on course, and to coordinate between individual business units.

Recognition from rating agencies

In the latest rating (2023) by EcoVadis, the world’s largest provider of sustainability ratings, Implenia achieved 70 out of a possible 100 points (Scorecard). The company thus retains the gold status awarded last year and stays in the top five percent of the over 100,000 businesses rated by EcoVadis. 

In 2023, Implenia was also ranked as an industry leader in other ratings that focus mainly on sustainable investments, including Sustainalytics and MSCI. For more details see the “Financial and Operational Excellence” chapter.

Sustainability strategy

Sustainability has been anchored in Implenia’s values since 2009 as an integral part of the company’s strategy. The following timeline shows the most important milestones achieved over the years.

Our milestones

7. Sustainability Report
­(Reporting Year 2023)

2023

Double materiality analysis
Code of Conduct for External Business Partners

6. Sustainability Report
(Reporting year 2022)

2022

Introduction of the Sustainability Academy
EcoVadis Gold rating

5. Sustainability Report
(Issue march 2021 - Update August 2022)

2021

Group wide reporting of environmental incidents
First company in the category "Construction & Engineering" to receive MSCI AAA rating

2020

Setting the 2025 sustainability objectives
First Group-wide carbon footprint

2019

New Sustainability Committee
Update of the GeNaB internal sustainability standard

4. Sustainability Report
(ISSUE August 2018 - Update May 2020)

2018

Support of «Smiling Gecko»
Sustainable supply chain management

2017

Sustainability Workshop
Opening of a new timber construction production hall
Involvement with universities

2016

Environmental concept
Digitalization strategy
Awareness-raising campaigns

3. Sustainability Report
2014/2015

2015

Stakeholder dialogue
Strengthening of the security culture

2014

SNBS-pilot project "Schorenstadt"
Code of Conduct

2. Sustainability Report
2012/2013

2013

CO2-Footprint, Switzerland

2012

Solar power production
Founding member of the Swiss Sustainable Construction Network (NNBS)
Foundation Sustainability Committee

1. Sustainability Report
2011

2011

ECO-Drive training

2010

5 sustainability priorities
Internal sustainability impact assessment system GeNaB®

2009

Vision, values and strategy

Impact of business activities

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Around 90,0001 people work in the Swiss construction sector, and each year they generate around CHF 37 billion2 of added value, which is equivalent to around five percent of Switzerland’s GDP. In doing so they process a total of more than 60 million tonnes of material3.

The construction sector’s annual environmental impact comes to a total of 57 trillion environmental impact points4, of which energy consumption is the main cause (56%).

These Swiss figures give an idea of the construction sector’s immense significance for the economy, society and environment, and they give a pretty good indication of the picture in Implenia’s other markets as well. The company accepts the responsibility that a leading construction and real estate service provider has in this context, and we are committed to the welfare of present and future generations in all we do.

1 Schweizerischer Baumeisterverband SBV (2023): Zahlen und Fakten 2023  
2 SECO, reported in «Schweizerischer Baumeisterverband SBV (2023): Zahlen und Fakten 2023»
3 EMPA (2019): Synthesis report on “Projekt MatCH”
4  EMPA (2016): Projekt MatCH

Material Topics

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The sustainability strategy of Implenia is based on five thematic priorities. The company first formulated these in a comprehensive internal process in 2010 and has applied them consistently ever since. These priorities cover the economic, ecological and social aspects of sustainability and shape the whole Group’s commitment to sustainability. They also form the backbone of the company’s sustainability reporting.

In 2015 Implenia, working with internal and external stakeholders, conducted an initial materiality analysis based on guidelines set by the Global Reporting Initiative (GRI). The selection is subjected to internal review every two years and supplemented where necessary.

In 2023 Implenia carried out a completely fresh analysis based on the double materiality approach. In addition to the previously identified topics, account was taken of topics that form part of GRI and the European Sustainability Reporting Standards (ESRS). 

The double materiality approach aims firstly to assess a company’s impact on the environment, society and the economy (inside-out perspective), and secondly to evaluate the financial impact, opportunities and risks of sustainability issues on the company’s business (outside-in perspective). An internal survey was conducted of members of the IEC, the Board of Directors, senior management and sustainability specialists, who were asked to identify the major issues that have a financial impact on the business. Meanwhile, Implenia’s impact on the environment, society and economy was assessed in an on online survey of external stakeholders, including key customers, suppliers, NGOs, investors, banks, universities, trade associations, unions, competitors, the media and the authorities.

* The graph shows a section of the materiality matrix. No topic received a rating below 4

The less relevant topics in white were defined as not material

This extensive analysis helped Implenia identify the following key topics as defined by GRI standards*:

  • Health & safety (GRI 403: Occupational Health and Safety 2018)

  • Internal working conditions (GRI 401: Employment 2016, GRI 405: Diversity and Equal Opportunity 2016, GRI 404: Training and Education 2016)

  • Circular economy (GRI 301: Materials 2016, GRI 306: Waste 2020)

  • Integrity (GRI 205: Anti-corruption 2016, GRI 206: Anti-competitive Behavior 2016, GRI 406: Non-discrimination 2016)

  • Environmental protection (GRI 306: Waste 2020)

  • Energy & CO2 (GRI 302: Energy 2016, GRI 305: Emissions 2016)

  • Supply chain (GRI 308: Supplier Environmental Assessment 2016, GRI 414: Supplier Social Assessment 2016)

  • Economic performance (GRI 201: Economic Performance 2016)

  • External workers (GRI 401: Employment 2016)

*The GRI topics in bold were first identified as material in the double materiality analysis conducted at the end of 2023, this report does not yet include complete concepts and indicators for these topics.

Risks and opportunities created by climate change

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Active management of opportunities and risks is the central pillar of successful corporate management. So Implenia uses a comprehensive Enterprise Risk Management (ERM) system based on integrated processes and clearly defined responsibilities. The ERM also helps Implenia assess opportunities and risks relating to sustainability and climate change. 

Implenia has defined a series of five-step impact scales for all risks, ranking them from very low to very high. They cover topics such as finance, compliance, environment, health and safety, and reputation. Both the possible impact and the probability of a risk occurring are assessed.

As a construction and real estate services company with a broad portfolio, Implenia is affected by climate change in a variety of ways. As shown in the table below, climate change brings economic opportunities as well as risks.

Changes in the climate could, for example, prompt a response from customers that increases the number and scope of orders for renovation and modernisation. Measures to mitigate climate change – such as better insulation and renewable energy systems – offer Implenia opportunities to apply its expertise in these areas. At the same time, increasingly extreme weather can pose real problems for companies and make it more difficult for them to make plans. 

It is impossible from the current standpoint to predict exactly what the ultimate effect of climate change will be on businesses. What is certain, however, is that Implenia is preparing for the expected change so it is ready for future developments.

When managing climate risks and opportunities, Implenia is guided by the recommendations of the international “Task Force on Climate-related Financial Disclosures” (TCFD)1.

Regulations
  • Risk: Failure to meet ESG criteria
  • Risk: Increase in planning risks and more stringent requirements for building permits
  • Opportunity: Competitive advantage over companies that do not yet have to comply with the regulations
Technology
  • Risk: More complex construction methods owing to more complex requirements 
  • Opportunity: Greater demand for renewable energy infrastructure (e.g. pumped storage power plants)
  • Opportunity: Stricter energy efficiency requirements for buildings necessitate specialist know-how
Law
  • Risk: Sanctions for non-compliance with sustainability requirements
  • Risk: Environmental incidents caused by non-compliance with environmental standards
  • Opportunity: Strengthen positioning by specialising in sustainable construction
Market
  • Risk: Volatile commodity prices and supply difficulties
  • Risk: Unsustainable supply chains
  • Opportunity: Sustainable solutions as a distinguishing feature in private and public tendering processes
Reputation
  • Risk: Non-compliance with ESG criteria, non-compliance with sustainability requirements
  • Risk: Environmental incidents / non-compliance with environmental standards
  • Opportunity: Positioning as a sustainable construction and real estate service provider
Acute physical risks
  • Risk: Extreme weather events have a negative impact on employees and construction processes
  • Opportunity: Increase in natural disasters pushes demand for high-quality, robust infrastructure (roads, tunnels, bridges, buildings)
Chronic physical risks
  • Opportunity: Greater demand for building renovation due to climate change

 

1 TCFD distinguishes between transition risks and physical risks. Transition risks include political, legal, technological and market-oriented events that negatively affect companies’ finances and reputations. TCFD defines physical risks as those directly caused by climate change. These include “acute risks”, such as cyclones, hurricanes, storm surges and other weather events. “Chronic risks” are long-term effects such as permanently elevated temperatures or recurring heat waves.

Risks and opportunities relating to impacts on other material topics of Implenia

Climate change and other sustainability issues affect Implenia, but Implenia also affects the environment, society and the economy. Further risks and opportunities relating to our sustainability priorities and key issues have been identified. These formed the basis for the sustainability targets we set for 2025.

Sustainable products & services
  • The execution of real estate and infrastructure projects puts a burden on the environment – mainly in the form of emissions. The way things are planned and built has an effect not only during construction itself, but also indirectly on emissions during the operational phase (for example, sources of heating and cooling energy).
  • A large proportion of emissions are generated in the production and delivery of construction products. It is vital to raise awareness among suppliers and subcontractors and, where possible, to work with partners that operate sustainably.
Respect for the environment
  • The construction industry generates considerable quantities of building waste, and as a major consumer of fossil fuels it is one of the biggest CO2 emitters.
  • It is important to be aware of the environmental impact of construction sites and to anchor environmental measures in all core processes.
Attractive working environment
  • There is a high risk of accidents in the construction industry. Ensuring a safe working environment is Implenia’s highest priority.
  • The construction industry faces a shortage of skilled personnel. Training and developing its own specialist workers is crucial to the sustainability of the Group’s success.
  • Long-term retention and continuing development of its employees is central to the company’s performance, culture and stability.
Social commitment & compliance
  • To prevent infringements of the Code of Conduct, Implenia continuously works on employee-awareness measures and on efforts to embed the principles of the Code in business processes.
  • The impact of Implenia’s business activities on the environment, society and the economy is far-reaching. It is important for the company to be involved in the long-term development of its immediate and more distant environment
Financial & operational excellence
  • As an international group it is important that we share experiences and know-how within and between all business units.

How we interact with stakeholders

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Our dealings with our stakeholders are briefly described below.

Employees

All of Implenia’s managers are required to foster active dialogue with their staff. One major vehicle for this dialogue is the target-setting meeting, which takes place every year as part of the management-by-objectives strategy and which is supported by a web-based personnel management tool. The company uses various internal communications tools, including the employee magazine “Impact”, the Intranet, staff events (in-person and virtual) and an electronic newsletter. The CEO communicates directly with employees several times a year in his CEO Letter and at “townhall” meetings.

Implenia actively manages a variety of internal and external social media platforms designed to increase contact between employees. As well as the Intranet these include external platforms such as LinkedIn, Xing, Facebook, Twitter, Youtube, TikTok and Instagram.

Customers

Implenia’s customers are at the heart of everything it does. As well as numerous contacts at the project level, the company also seeks general, non-project-specific communication with major customers. These regular discussions are important for mutual understanding and provide Implenia with a valuable external view.

Meetings take place at management level each month to ensure customers are served as effectively as possible. A survey is conducted after each project finishes so customers can provide detailed feedback on working with Implenia and rate the company’s services.

Thanks to the active feedback culture and the targeted optimisation of internal and external interfaces, Implenia has moved closer to its customers in recent years.

Shareholders and investors

Implenia follows an open, transparent and timely information policy in the interests of its shareholders, investors and the general public. With its ongoing reporting, Implenia ensures equal treatment of all stakeholders with regard to timing and content.

Comprehensive information is available online to all investors, journalists and other interested parties under the “Media & Investors” link on the company website. Sustainability-focused investors can also find more information in the “Sustainable Investment” section of the site.

Business partners

Implenia wants business partners to share the company’s core values. Subcontractors, suppliers and manufacturers have to sign up to the Code of Conduct. Implenia has a supplier management system, which makes business relationships more transparent and enables communication with suppliers and subcontractors on an equal footing. Regular audits are conducted with the most important suppliers, providing an opportunity to discuss possible improvements. Such communication is also cultivated at annual “supplier days”.

Public authorities

Implenia is committed to open and professional relations with governmental institutions. The company takes great pains to comply with all the laws that apply to its heavily regulated field of activity. In the event of alleged or actual conflicts, the company cooperates fully with the authorities, helps with investigations and communicates transparently.

It also maintains close contact with public sector bodies when engaged in urban development projects. Implenia runs such major projects in close cooperation with the relevant authorities and prefers to hold architectural design competitions to ensure the highest possible standards in terms of sustainability, functionality and aesthetics.

Social partners and associations

As one of the largest employers in the Swiss construction sector, Implenia has a special responsibility to its employees. Consequently, our management maintains a constant, active dialogue with our social partners. Regular meetings are held to share information and discuss each other’s needs. Implenia’s representatives work in various organisations and associations, such as regional builders’ associations and the Network for Sustainable Construction Switzerland (NNBS).

Media

Implenia runs an active and open communications policy. Corporate Communications provides the media with timely and comprehensive information about important events. Journalists are regularly invited to information events designed to keep them up-to-date (in person or virtually) with the company’s activities and business performance. In this way Implenia provides transparency to the broader public as well as to its specific stakeholders.

Society

Media work is only one part of the Group’s information sharing efforts. Another important pillar of communication is direct contact with people to give them an insight into the world of Implenia. For example, the company invites school children to visit construction yards and projects in Switzerland and Germany as part of its annual Futures Day. Implenia Norway also presents its projects to the public: it invited the entire population of Oslo to come and take a look at its large metro construction site there, for example.

Sustainable Development Goals

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Implenia is guided in its sustainability work by the UN’s Sustainable Development Goals (SDGs). The Group hopes that its sustainability efforts will help the global community achieve these goals, particularly the following ones:

Sustainable products & services
Attractive working environment
Financial & operational excellence
Respect for the environment
Social commitment & compliance

2025 goals

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Implenia has set itself long-term sustainability goals based on a comprehensive materiality analysis conducted with internal and external stakeholders, and taking into account the UN’s Sustainable Development Goals (SDGs). Its current goals should be achieved by the end of 2025. Implenia uses the goal dashboard to report continuously and transparently on the work being done on the goals and the degree to which they are being achieved. The dashboard also shows the sub-goals, derived from the main ones, for each division and global function.

Standards and regulations

The scope of ESG regulations in Implenia’s markets has steadily expanded over the years, placing ever greater demands on the company. 

Implenia’s sustainability activities are being guided now and into the near future by the following new regulations in particular. These national and international laws, guidelines and regulations are continuously analysed by working groups in consultation with the departments affected by them and with the Implenia Executive Committee. Measures are devised accordingly and implemented by the company in stages. Implenia also openly and transparently communicates the information required by law.