Our way of working
Our target is to be a best-in-class construction company, developing our business sustainably over the long term while growing profitably. Together with our customers and partners, we build a sustainable society.
We base our operations on our values:
- We put people first.
- We respect and trust.
- We partner to succeed.
As a major player in the construction industry, our goal is to consider both the direct and indirect impacts of our operations on the surrounding community as thoroughly as possible. We are building a sustainable society together with our customers and partners.
Our daily operations are guided by our Code of Conduct, which is based on international regulations and agreements. The most significant of these are:
- The UN’s Declaration of Human Rights
- The UN Global Compact initiative in the field of corporate responsibility, promoting human rights, labour rights, environmental protection and anti-corruption
- The ILO’s employment rights and principles
- The OECD’s operational guidelines for multinational companies
- The International Chamber of Commerce’s (ICC) recommendations
Our Code of Conduct is supplemented by various Group-level policies and principles. We do not condone bribery, nor do we enter into business relationships that could lead to conflicts of interest. We require every Lemminkäinen employee to adhere to current legislation and the Group’s internal guidelines at all times. Our supervisors are responsible for familiarising employees with our working methods and for ensuring compliance.
We encourage all Lemminkäinen employees to report to their supervisors or to the internal audit unit any suspected malpractice or behaviour that does not comply with our Code of Conduct. We use the SpeakUp service where Lemminkäinen employees and our external stakeholders can report any suspected malpractice anonymously. The internal audit unit investigates all reports it receives. In addition, its tasks include conducting regular audits of business operations and reporting its findings to the Board of Directors. In 2015, the internal audit unit launched further investigations into 11 cases of suspected malpractice, four of which led to further action.
Operating model and objectives for sustainability
In 2015, we defined the sustainability themes that are most relevant to our operations and that have the greatest impact on our result as well as related targets. In addition to the internal working group, external stakeholders contributed to the definition work.
The results of this work are described in the materiality matrix:
The project also resulted in an operating model for sustainability where we specified roles and responsibilities as well as follow-up and reporting methods and related indicators. From these we derive business segment-specific targets with which we ensure that efforts to promote sustainability can be seen in our result.
Long-term sustainability objectives
- Achieving zero lost-time accidents
- Deploying Lemminkäinen-level standards for safety, workability management and career planning to ensure life-long workability
- Improving our customer satisfaction
- Ensuring that suppliers are in conformity with Lemminkäinen Supplier Requirements
- Improving our energy efficiency
- Increasing our material efficiency and recycling
Sustainability management systems
Under the operating model for sustainability, launched at the end of 2015, sustainability is the responsibility of the assigned member of the Group Executive Team, the Executive Vice President of the Paving business segment. The Executive Team decides on sustainability targets and the management of business segments and support functions is responsible for taking them into account in annual planning. The Group’s Sustainability Director leads daily operations and helps business segments and countries in achieving the targets. Progress is followed up as part of business reporting.
Lemminkäinen employs management systems that meet the requirements of the international standards ISO 9001:2008 (quality management system), ISO 14001:2004 (environmental management system) and OHSAS 18001:2007 (occupational health and safety management system).
Lemminkäinen has separate, certified management systems for each business segment. The company’s mineral aggregates and asphalt plants are CE marked in those countries where legislation so requires.
Financial responsibility management systems
A description of the financial responsibility management systems can be found in the Corporate Governance Statement.
Social responsibility management systems
Lemminkäinen’s social responsibility management is decentralised. Human resources management is led by the Executive Vice President, HR. Our people policy aims to ensure that the company has the the competent, motivated and satisfied personnel required by the operational targets.
The goal of Group-level policies and principles, such as the equality action plan, is to promote fairness and to ensure equal treatment. Compliance with these Group-level policies and principles is managed and monitored within the scope of line operations.
Lemminkäinen’s partner and supplier network is expected to comply with laws, international human rights, labour rights, environmental regulations, the Code of Conduct and Lemminkäinen’s Supplier Requirements. The Group’s Senior Vice President, Procurement, is responsible for the partner and supplier network.
Legal affairs are coordinated at the Group level in order to promote consistent practices. The General Counsel is responsible for this. Legal affairs related to business operations are handled by the lawyers in the business segments. Furthermore, additional guidelines about competition law and insider issues are provided to complement the Code of Conduct. Business management is responsible for monitoring compliance with these guidelines, and internal training on them is also provided. Our company has zero tolerance with regard to activities violating competition legislation.
Product responsibility is led by the Executive Vice Presidents of Lemminkäinen’s business segments. They are responsible for customer service and they ensure that our products and marketing comply with laws and regulations.