Why implementing ESG at Timbeco is important

The fundamentals of Timbeco's strategy are based on sustainability, and our goal is for the company's operations to be carbon neutral by 2028. This takes into account the sequestration of carbon in the buildings manufactured and erected by us, the reuse of production residues, cooperation with suppliers with a sustainable mindset, as well as the energy produced from solar panels installed on the roofs of production buildings in the coming years, etc. We have created the Timbeco 2.0 Sustainability Roadmap to help meet these goals.

During the 30 years of operation, Timbeco's activities have been related to factory wooden buildings, and we have gone through a very thorough learning process on this journey. In our opinion, it is increasingly important to direct construction activities towards renewable resources. During construction, all activities must have as low a carbon footprint as possible. Less impact from transport, less damage to the environment and people in the surrounding area, and the possibility to reuse buildings or their components, etc. The process of building residential areas must be transparent and the effects on the environment must be clearly stated. It creates a trusted relationship between builders, real estate developers, banks and home buyers.

In order to better focus our activities, we have set ourselves the goal of implementing the ESG principle and preparing an annual ESG report in order to be in top form and provide information to both the community and our partners. Although the ESG report is not yet mandatory for our company by law, in our opinion it is important for smaller and medium-sized companies to be significantly more active in ESG activities.

ESG is important because it refers to environmental, social and governance factors that can affect a company's financial and reputational ratings and long-term sustainability. Considering ESG factors helps companies assess their impact on society and the environment and adapt their business model to sustainable practices. In addition, society has become more aware of corporate responsibility for environmental and social issues, which is why investors and consumers are increasingly demanding compliance with ESG principles.

The most important thing is to understand what are the most influential factors in the company in the context of ESG

Some examples of our ESG activities:

Generation of production waste and recycling of materials

One of the biggest focuses in 2023 is on production waste and its recycling at Timbeco. Already in the design phase of the buildings, we are assessing the need for materials in such a way that there is as little cutting to size as possible and thus the creation of waste. We direct the scraps of wood into finger jointing in order to create a suitable frame material and use it in wall constructions.

Calculating the carbon footprint in the production and construction of buildings and during the 50-year life cycle.

We are implementing software in the company that helps calculate the carbon footprint of buildings in the design phase, thereby guiding customers to make decisions with a lower environmental impact, both in the selection of materials, construction methodology, and heating and ventilation equipment.

LCA (Life Cycle Assessment) data is an important source of information for real estate loan issuers operating in our export markets, as well as for customers who have given us valuable feedback and encourage us to continue the chosen path. Loan products for the purchase of a new home in Scandinavia are already more affordable for those who choose to purchase buildings with a lower carbon footprint.

Sustainable digital development

Regarding the digital revolution, we have set ourselves the goal of increasingly introducing digital solutions and paperless administration. Good examples here are the production software Eziil or the new personnel management software. We also invest a lot in the security of internal company networks and in ensuring that our engineers and other office workers can do their work from any location if necessary.

We have chosen Greendice as our partner to monitor the environmental impact of technology recycling and, where possible, we acquire used equipment to give it a new life.

Involvement of people in company management and internal trainings

We have introduced a broad-based management model where department heads can participate in the management of the organization on a weekly basis and contribute to the birth of higher quality management decisions. This also ensures better information dissemination and finding quick solutions, because problems that arise can be solved immediately.

It is very important to increase the competences of the people working in the company and to attend foreign trainings, so that we can keep up with the development and find areas that need improvement in the company. No less important are internal trainings, where employees take on the task of a more detailed treatment of a topic or solution so that everyone understands it and also finds answers to questions.

Sharing your experiences and giving lectures and presentations in professional educational institutions is important for introducing your sector and ensuring future growth. Sustainable building solutions and building from renewable resources are becoming more and more popular and are also of interest to young people.

How does the implementation of ESG contribute to the development of customer relations

In the construction sector, the existence of ESG reports has become increasingly important. We have also passed the ESG audit performed by the first cooperation partner. Today, our partners are able to evaluate not only the ESG report, but also the real activities that support this report. This is important in order to gain confidence in the choice of partner and to see that the issues are dealt with consistently.

Our real estate development partners get important input from Timbeco's ESG report and can use this information in their reports as well as to prove to banks that ESG issues are dealt with at different levels. As bank loan products are increasingly being assessed for sustainability, it is important that we are able to calculate the Co2 footprint of the production and construction of our buildings. In addition, the selected materials, the presence of solar panels on the roof of the building, the energy consumption of the building and also the possibility of reusing the building at the end of the period of use are also very important. From this point of view, the big advantage of factory-produced modular buildings is that the entire building can basically be reused and, if necessary, erected in a new location. This is very important in terms of the longevity of the buildings.