We make circular economy a reality
Promoting the green transition is all the time more important and the importance of the circular economy in the fight against climate change and nature loss is even more critical. L&T operates at the heart of the green transition and also helps customers in their sustainability work.
Read about how L&T made the circular economy a reality in 2022.
In 2022, business environment was exceptionally challenging: Russia’s invasion of Ukraine and the resulting increase in liquid fuel prices, the energy crisis and cost inflation as well as two waves of COVID-19, two winters of high snowfall and a labour shortage. Difficult and exceptional circumstances showed in the results and indicators, and were particularly reflected in the results and operations of the facility services sector in Finland and Sweden. On the other hand, the circular economy businesses succeeded in achieving a good result in terms of both growth and profitability in difficult conditions.
Although the energy crisis caused by the war and the widespread market disruptions shifted the focus of policymakers to the short-term business environment, major steps were taken with regard to the green transition. Companies are taking on an increasingly significant role in addressing sustainability challenges. This is a valuable message for a company like us whose strategy and mission are built around the green transition. The circular economy is taking on an increasingly critical role in combatting both climate change and biodiversity loss.
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Key Figures 2022
The third year of the coronavirus pandemic was more difficult for L&T than the previous years. The sickness rate of L&T’s personnel increased substantially in January–March and again in October–December. The higher prices of fuels sparked a more general rise in the prices of other goods and services, and the challenges in the availability of labour made production planning more difficult..
Lassila & Tikanoja’s net sales in 2022 amounted to EUR 844.1 million. The adjusted operating profit for 2022 was EUR 42.9 million.
L&T’s divisions in brief
L&T is a service company that is making the circular economy a reality. The Group operates in the circular economy and facility services businesses. All of L&T’s business operations build future sustainable growth for the circular economy and are based on the opportunities it creates.
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Highlights of L&T's year
In the spring of 2022, we introduced a financial framework tied to sustainability targets as one of the first companies in Finland to do so. The loan is linked to the achievement of two Sustainability Performance Targets: reducing the greenhouse gas emissions of the company’s own operations and reducing the use of fuel by subcontractors in transport.
In late 2022, Suomen Pakkaustuottajat Oy and Lassila & Tikanoja signed an agreement on the recycling of consumer plastic packaging. The agreement covers approximately 20,000 tonnes of consumer packaging plastic collected in Finland, which corresponds to approximately half of the packaging plastic collected in Finland each year. The agreement entered into force at the beginning of 2023.
During the year, energy prices increased and L&T also paid special attention to proactive energy-saving measures whose objective was to reduce the peak demand of electricity and participate in joint energy-saving efforts. Thanks to the measures, the energy consumption of L&T’s properties decreased by 6% in 2022, compared to 2021. In the second half of the year, the energy consumption of electricity decreased by 10%, compared to the previous year.
In the spring of 2022, we set separate emission targets for our operations in terms of transport subcontracting. Our target is to reduce transport and machinery emissions from subcontracting by 30% by 2030, using 2020 as the baseline. The target applies to subcontractors that provide L&T with snow ploughing services, transport of raw materials or earthworks and related transport.
As a leading operator in the circular economy, we want to be a pioneer in the implementation of emission-free transport solutions and to open-mindedly try new technologies, such as electricity. In 2022, we introduced our first electric waste truck.
We helped our customers to take concrete actions to promote biodiversity by offering services for turning lawns into meadows. During the year, we turned a total of 8,200 m2 of our customers’ lawn areas into meadows, thus providing a landing site for various pollinating insects and promoting the preservation of Finnish nature.
We participated in the “Security through work” project launched by the Confederation of Finnish Industries (EK) and the StaffPoint Group to offer work to people who fled the war in Ukraine. In addition, we participated in the IKUT project, which provided employment support for victims of human trafficking and other vulnerable persons.
We updated our sustainability programme to better reflect our mission of circular economy management. The renewed sustainability programme consists of three focal points: environment, people and governance. With the new programme, we will further deepen our sustainability work in the supply chain, and the promotion of biodiversity was added to the programme as a completely new part.
Leader of the Regenerative Society
The world has changed permanently. Now – if not sooner – is the time for all of us to start thinking and acting differently so that we ensure a sustainable tomorrow.
There are some who are thought leaders or experts in the circular economy. Others roll up their sleeves and put the circular economy into action. We are both. L&T is an action leader in the circular economy – an expert that takes big ideas and puts them into practice together with customers and partners.
The circular economy plays a key role with regard to climate action and biodiversity. L&T promotes the transition to the circular economy in its own operations as well as in its customers’ operations. We continuously develop new services that promote the circular economy, and our aim is to increase the use of recycled raw materials instead of virgin raw materials.
Our goal is to mitigate climate change and also set an example for our partners. The services we produce for our customers reduce emissions and promote material recycling and energy efficiency. This constitutes our carbon handprint, and increasing it is one of our strategic long-term objectives. A further goal is to halve the emissions of our own operations by 2030. We have also set separate emission targets for our supply chain.
Biodiversity has declined significantly over the past decades. The effects of biodiversity loss are already reflected in, for example, the decline of pollinator populations, increasing flooding and soil degradation. Circular economy solutions are effective in fighting biodiversity loss. Our aim is to have a positive impact on biodiversity, particularly in the built environment.
In Lassila & Tikanoja’s current strategy, sustainability is an increasingly integral aspect of our operations. Our long-term goals are a combination of sustainability targets and financial targets. Sustainability is an integral aspect of L&T’s strategy, business operations and day-to-day actions.
Our aim is to have diverse, competent and healthy personnel
Consciously building a diverse and equal work community is one of our greatest assets. We develop our culture and operating methods with the aim of making it even easier for employees from diverse backgrounds to join our organisation, enjoy being part of our community and, through employment, becoming integrated in Finnish society. Our aim is to increase awareness of equality and non-discrimination and to enable a fair and good working life for everyone.
A responsible partnership
Sustainability in business increasingly requires working together. L&T and Neste have a long history of close co-operation that has developed into a strategic partnership over the years.
”We are looking for ways in which both parties can operate more responsibly and with a smaller carbon footprint,” says Katri Taskinen, Senior Vice President, Station Network, Neste Marketing & Services.
Lassila & Tikanoja creates solutions for mitigating climate change and biodiversity loss, and promotes the transition to a sustainable economy. We make the circular economy a reality and help our customers achieve their sustainability goals. Our strategy, “Leader of the regenerative society”, will guide our operations during the 2022–2026 strategy period.
Reviews and Statements
Lassila & Tikanoja’s annual report for 2021 consists of an Annual Review and a Financial Review. The Annual Review 2022 covers the key aspects of L&T’s business in 2022 along with a GRI sustainability report. The Financial Review 2021 consists of the Report by the Board of Directors, Corporate Governance Statement, Remuneration Report, financial statements for 2022 and auditor’s report.
Lassila & Tikanoja publishes the Financial Review in accordance with European Single Electronic Format (ESEF) reporting requirements with the format of the report being Extensible Hypertext Markup Language (XHTML). In line with the ESEF requirements, the primary statements have been labelled with XBRL tags. The XHTML file is available on the investor section of the L&T website.