Business

Distribution of revenue by stakeholder

Lindab’s revenue in 2010 amounted to SEK 6,527 m, comprising the sale of the company’s products and services. Most of this is distributed among the company’s stakeholders.

1) Other consists of items that cannot be attributed to individual stakeholders. This item mainly comprises depreciation, the write-down of goodwill, exchange rate differences and capital gains on the sale of assets.

Anti-corruption and free competition

Good business ethics are pursued throughout Lindab’s business. Unfortunately, in the construction industry and in the various geographical
markets where Lindab operates, certain operators behave in a manner that is not acceptable. Lindab has long had a competition policy that is continuously reviewed and updated. Conduct that breaches competition
rules is unacceptable. Company employees are informed and trained about the content of Lindab’s policy in order to avoid violation of these rules.

Lindab has zero tolerance towards corruption, and the anti-corruption policy is designed to ensure that conduct that might be considered as corruption does not take place in the company.

During the year, disciplinary action has been taken against employees for acting in breach of ethical principles.

Carbon Footprint studies for Lindab´s products

The construction industry is increasingly demanding access to information about products’ carbon emissions during their lifetime, referred to as the Carbon Footprint. Buildings account for 36 percent of the EU’s total greenhouse gas emissions. Building materials constitute a part of this. To reduce a building’s impact on the climate, it is important to be able to manage and to know the material’s carbon footprint.

Lindab is working to develop Carbon Footprint studies for a large  proportion of the Group’s products. The studies, which include the products’ impact on the environment, are presented notably in environmental product declarations and other product information. The calculations are performed by an external party, WSP, and are made from “cradle to grave”, i.e. from the extraction of raw materials until the product leaves Lindab’s factories. In 2011, all of Lindab’s product groups will be covered by Carbon Footprint studies.

So far, outcomes from the studies have shown positive results for Lindab’s products and the materials used. The material accounts for much of the Carbon Footprint, i.e. the production of steel. Manufacturing, transportation
and packaging materials comprise less than 10 percent of the products’ total Carbon Footprint. 

CARBON FOOTPRINT STUDIES

Based on calculations according to Carbon Footprint studies, the GWP
(Global Warming Potential) for a standard home is 6.36 tonnes. This
value is based on the approximate consumption of materials for steel
components in a detached house measuring 130 m2 with a ventilation
system, frame, roof and roof drainage from Lindab. This can be compared
with a return flight between Sweden and Thailand, resulting in
emissions of 1.5 tonnes per person. A house built using Lindab’s products
therefore roughlycorresponds to a vacation for a family of four.

Source: SAS Carbon Dioxide calculator, WSP’s Carbon Footprint studies for Lindab’s products.

Lindab’s strives to contribute to simplifying construction in all phases of the construction process: in the design phase, of the product itself, its installation and delivery. This forms the basis for the company’s product development. The goal is to continue to develop sustainable and energy-efficient products.

Since people spend a large proportion of their time indoors, it is important that the indoor environment is healthy and that the components used in the building present no health risks. Lindab works actively to identify and replace anything that can be considered to be a hazard to the environment or to health. Material research and development projects are also conducted together with suppliers, notably into surface treatment, corrosion problems, strength as well as health and environmental aspects.

Resources are also being dedicated to the development of products in order to optimise the manufacturing process, and to reduce costs and the environmental impact. Lindab tests and documents the products that are
developed to ensure quality and functionality. Quality management systems are applied throughout the business. Almost all of Lindab’s larger production units have quality systems certified to ISO 9001. The products
are supplied with the documentation requested by the various markets such as user manuals, certificates and environmental product declarations.

The high quality and functionality of Lindab’s products help to lower the risk of adverse effects on health and safety. No breaches have been identified during the year in the Group’s provision of products or in the health and safety impacts of the products.

Steel - the benefits and environmental issues

Steel and sheet metal are the common denominator for the majority of Lindab’s products. The global steel industry is investing billions to improve treatment and other measures to reduce the environmental impact.

Apart from emissions during the production process, steel has a relatively small environmental impact. Steel’s most important properties that help to conserve natural resources are its light weight, high strength and good
recyclability.

The high strength of steel and constant development allow for lighter buildings that use less material. Since steel is a very strong material, a smaller amount of steel is required to perform the same function as concrete or wood. This also contributes to fewer shipments when steel is used for construction.

The properties of steel do not change during the building’s life span. Steel possesses a long service life, reducing the need for maintenance and repair, and the energy consumption during the building’s life cycle.

Steel does not require pesticides or other chemicals to protect against pests, mould or rot since steel is an inorganic material that does not absorb liquids. For that reason, buildings incorporating a steel frame do not provide a breeding ground for mould or other allergens. Steel gives off no emissions that can give rise to hypersensitivity or allergies.

Virtually all steel can be recycled and steel is today one of the most recycled materials in the world.