Aurelia Luca, Skanska: “Growing interest in ESG standards shows that they will determine the market shape in the future”
In 2021, all Skanska projects in Romania obtained the WELL Health & Safety certification, a rating awarded to high quality office spaces with top safety standards that reduce the risk of disease transmission such as COVID-19 and other possible viral infections.
“2021 has been a year full of change and valuable lessons for 2022. With new strengths and even more knowledge, we will continue to invest in our projects and in the sustainable development of the city.
Among our priorities in 2022 is the development of the second phase of the Equilibrium project, for which we started the construction process in February 2021, and expect completion in the first quarter of 2023,” Aurelia Luca, Executive Vice President Operations Hungary, and Romania at Skanska Commercial Development Europe, told The Diplomat-Bucharest.
“The tenants and investors are now paying more attention to properties when it comes to their impact on the environment, the green solutions implemented within the buildings, great architecture and placemaking where people can use the office space for more than only daily work.”
COMMITMENT TO PERFORMANCE | BUSINESS EVOLUTION, PROJECTS, PERFORMANCE, FIGURES
“2021 turned out to be a good year for Skanska. Despite its uncertainty and unpredictability, we managed to adapt quickly to the new reality and accomplish our objectives, while working with the same focus on achieving the best results within our current and future projects.
Not only we‘ve completed the delivery of Campus 6.2 & 6.3 buildings according to the schedule, but we have also inaugurated the rooftop running track situated on top of the two office buildings, the first of its kind in Romania. Besides that, at the end of the year, Campus 6.3 project has obtained the WELL Core & Shell Certification at a Gold level. , Obtaining the Gold certification is a recognition of the fact that we manage to give life to spaces where people feel good, safe, and that have a positive impact on their health and well-being. The project, thus, becomes the first office building in Romania to obtain all three prestigious WELL Core & Shell Gold, LEED Platinum and WELL Health & Safety Rating certifications.
Moreover, in 2021, all our projects in Romania obtained the WELL Health & Safety certification, a rating awarded to high quality office spaces with top safety standards that reduce the risk of disease transmission such as COVID-19 and other possible viral infections. We’ve also started the construction process on the second phase of Equilibrium project in February. By the end of the year the structure was already finished, and the works positively evolved, exceeding our expectations.
Another highlight of the year was our success in reducing by 40 percent the carbon emissions within our current projects, leading to the update of our goal of reducing CO2 emissions from 50 percent by 2035, to the more ambitious target of 70 percent, then finally achieving emission neutrality by 2045. This is Skanska’s Group worldwide main goal in terms of CO2 emissions, and a serious commitment that we want to achieve through strategic partnerships with stakeholders that share the same values.
Therefore, a further step towards achieving our emission neutrality goal is the collaboration with Holcim Group Romania announced in 2021, based on our mutual engagement to accelerate the transition to a greener built environment. The solutions offered by Holcim, our concrete supplier, have significantly contributed to the reduction of the CO2 footprint incorporated in the construction of the Equilibrium 2 building. The project now benefits from a low carbon footprint in terms of structure and, implicitly, optimized values in the life cycle assessment.
An equally important action in pursuing and promoting the sustainable practices in business is our collaboration with ROGBC on the pilot project that aims to develop the Net Zero Carbon Buildings certification. Through the certification, the Romania Green Building Council wants to encourage real estate developers to build for a better society, by addressing a series of systematic strategies that provide solutions in combating climate change, improving the health and well-being of people, and moving towards a circular, regenerative economy.
The latest achievement of 2021 was to be nominated as one of the top female-friendly companies in the world. We have always been focused on creating a welcoming, supportive company culture and ensuring our employees feel safe and are treated equally in every respect. Providing a diverse and inclusive workplace environment is among our top priorities and this is why we are so proud of being recognized in the prestigious “World’s Top Female-Friendly Companies in 2021” ranking published by Forbes. Skanska was ranked fourth out of 300 other candidates on the list and at the same time achieving the best results among real estate representatives.”
STRATEGY & VISION | RETHINK STRATEGY & PRIORITIES
What challenges have you faced as a CEO/ leader during 2021?
“The unpredictable evolution of the pandemic, was, probably, one of the biggest challenges to face in 2021. It has been a year of continuous change, a year that required great amounts of flexibility and adaptability. The way the epidemiological context evolves both on a national or global level can produce significant changes even from one day to another.
In 2021, my top priority was making sure on one side, that people working on our sites, people working in our buildings, and our team will be safe and, on the other hand, just as important was to ensure the business continuity and maintain the sustainable pace of business development in Romania without major disruption caused by different Covid waves. Even though 2021 has changed many of the rules, our foresight and future-proof vision helped us overcome the encountered difficulties.
One of the main challenges was the lack of predictability given by the blocked zoning approval processes. It was the first time when we had no clear answer for our customers as well as our investors regarding the time schedule of our projects.
Another worrying factor, not only for Skanska, but for the entire real estate market was the volatility of building materials prices that occurred at global level in 2021. Global economies are linked together just like a domino puzzle, therefore whatever happens at one end of the world, can affect the other. But, despite the circumstances, we managed to control this risk and ensure the proper functioning of our business, respecting the established time schedules.”
What priorities and business strategy focus do you have in 2022?
“2021 has been a year full of change and valuable lessons for 2022. With new strengths and even more knowledge, we will continue to invest in our projects and in the sustainable development of the city.
Among our priorities in 2022 is the development of the second phase of the Equilibrium project, for which we started the construction process in February 2021, and expect completion in the first quarter of 2023.
Moreover, we are preparing the completion of Campus 6 complex, by starting the works on its fourth phase, Campus 6.4. The final complex will have a total leasable area of 81,000 sqm and will consist of four class A buildings.
Besides that, we are constantly scrutinizing the market and looking for opportunities.”
PEOPLE & COMMUNITY | FOCUS ON SAFETY, SOCIAL APPROACH, LEVERAGE THE POWER OF COMMUNITY
What initiatives & projects did the company run in 2021 in CSR and social projects?
“We decided to support several important initiatives that have one common denominator: Care for Life, one of Skanska’s core values.
Besides putting our efforts into ensuring the safety and minimizing the impact of the pandemic through our projects in Romania, which obtained the Well Health & Safety Rating certification, we decided to provide financial support for the fight against Covid-19 to several organizations and foundations. In Romania, we contributed to the fight against Covid-19 along with Romanian Red Cross.
Another initiative we decided on last year was to donate to an organization of our employees’ choice. We collected propositions from them and decided to donate to the Women’s Rights Center Foundation. We hope that the funds allocated will contribute to the implementation of further initiatives that will help build a better tomorrow for women in difficulty.
As one of the latest initiatives that marked the winter holidays and the power of community, employees were able to choose to turn their Christmas presents into support for a good cause, the World Wide Fund for Nature.”
KEEN ON GREEN | SUSTAINABLE, GREENER, COMMUNITY & ENVIRONMENTALLY-FOCUS
What sustainability and green-driven initiatives & projects did the company run in 2021?
“In the face of this global disruption as well as climate crisis, ESG is now proving the importance of sustainability which can future-proof investments. This trend is also visible in Skanska’s report “100 Most Important Trends in the CEE Economies”. At Skanska, the sustainability is part of our DNA, therefore it is an integrant part of our business strategies. For more than ten years, Skanska business unit in CEE has focused on designing and building every project by always keeping in mind the impact every building has on the environment, health, and well-being.
All these efforts are recognized by WELL and LEED certifications, attesting to Skanska’s sustained attempt to help people, communities, and cities to live and work safely, healthily, and sustainably. To this date, Skanska has 70 projects and ca. 1 027 000 sqm LEED certified, 7 projects and ca. 110 000 sqm WELL certified and 10 projects WELL Health & Safety Rating certified. Campus 6.3, the third building of the Campus 6 complex is the first office building in Romania that obtained all three prestigious WELL Core & Shell Gold, LEED Platinum and WELL Health & Safety Rating certifications.
One of our biggest efforts are focusing on lowering our CO2 footprint and the negative impact on the environment. We focus on reducing emissions from materials and the use of our buildings, on resource efficiency and on renewable energy. In the construction process of its office buildings, Skanska uses materials containing recycled elements, sourced from local companies and suppliers. Skanska was the first developer in Central Europe to introduce the concrete with a reduced carbon footprint, with an emissivity level that is 42 percent lower than that of traditional concrete mix. In Romania, we have implemented the concrete with reduced carbon footprint provided by Holcim, within the Equilibrium project.
We also focus on improving the air quality near our office buildings through the anti-smog pavement made of concrete. The first tests of anti-smog pavements have shown a 30 percent lower concentration of nitrogen dioxide. Electricity from renewable energy sources is another standard for the buildings we develop in CEE. The Romanian projects Equilibrium and Campus 6 are 100 percent powered by renewable energy sources.
Another action towards our sustainability goals is our strategic partnership with Saule Technologies in terms of perovskite in the pilot project in Spark office building in Warsaw. The final version of such a single photovoltaic panel will be able to cover the energy demand for lighting one employee’s workspace for eight hours or powering one computer for the entire day of use. We plan to cover most of facades surfaces with perovskite cells. The solution was evaluated in the Spark office building in Warsaw, and then a pilot production line was launched, enabling the production of cells in a larger format.
By being involved in the BMSCare project, through analysing the data on the functioning of the building, Skanska can enable the reduction of energy consumption.
Furthermore, the Science Based Targets Initiative (SBTi) has scientifically validated Skanska’s climate target to be in line with the Paris Agreement on cutting carbon emissions and limiting global warming. The science-based target shows that we are serious about our ambitions and actions. It is a milestone based on our hard work, but it is by no means the end. We will continue the efforts in reducing carbon emissions, in our own business and through partnerships for innovation. As the continuation of our journey towards climate neutrality is only possible through teamwork, we are constantly looking for partners with shared values to join us in our way to a greener and healthier environment.”
DIGITAL DNA | GRASPING TECH, DIGITAL INNOVATION, CUSTOMER -DRIVEN, BUILDING NEW BRIDGES
Which were the major directions in your company in 2021 where digital & tech made major difference?
“The year 2021 played an important role in showing us that, in a dynamic industry such as real-estate is, the integration of technology into business activities becomes an essential criteria in order to develop and to create long-term benefits.
At Skanska, where the core concept of our projects is “futureproof”, technological innovation has always been part of the company’s DNA, therefore the digital component naturally became an integral part of our business. The pandemic underlined the importance and effectiveness of this type of solution, especially in such a context, motivating us to continue improving and take this model further.
A valuable differentiator for our company is the flexibility and efficiency of using the data, as well as the best of results they help us achieve. In 2021, our main focus was on the transformation and adaptation of old data systems. Our efforts were put into digitization of data, by converting it from unstructured to structured data, resulting in a highly organized data lake that significantly simplifies the process of data storage, scaling and analysis, supporting reporting and decision-making processes.
Virtual building modelling through BIM & Digital Twin is another major feature that brought value in our projects. Virtual modelling of buildings improves financial efficiency but also the quality of the product and the final result. With the help of technology and 3D modelling, we can create envision the operating building even before the construction process, thus managing to identify in advance both the risks and the opportunities associated.
Moreover, we managed to raise the standards by developing the online platform Skanska Spaces, our digital leasing and displaying solution, which was launched as a pilot project in Romania. We believe that the project is a good example of the positive impact that the adoption of new technologies can have on the real estate industry and played its part on revolutionizing the market. Skanska Spaces platform has changed the way our clients interact with our office buildings so they can now check real-time availability and explore our spaces in a 3D format. It is certainly an asset that brings multiple benefits for all parties involved, by providing transparent access to all aspects of our projects, including information on sustainability, technical specifications, Health & Safety, accessibility, and so on.,. The pilot project was initially launched in Romania, and, after a successful evaluation, we will implement it in other CEE countries.”
What trends do you anticipate for this year?
“The pandemic reshaped the standards, the expectations and the way we work, live, and interact every day. This made digitization no longer an option, but a must-have. In a world defined by continuous change and increased flexibility, nowadays customers expect products and services to be much more digital than ever before.
Innovative technological solutions will undergo further development in 2022. These include, for instance, contactless entry to an office as well as options to check the whereabouts of co-workers, adjusting the lighting and temperature to the needs of users, or booking a room. As technology is a crucial aspect of hybrid work, it has become an integral part of office space. Office rooms need to be equipped in a way that enables working effectively and interacting with co-workers in the new reality.
Along with technologies, safety is now more important than ever. The trends that used to function solely as premium solutions are also increasingly popular – currently, they have become tenants’ standard expectation. A good example of these trends is highly demanding certification, such as the WELL Core & Shell or the WELL Health-Safety Rating certificates. The latter is especially desired by tenants due to the current global situation, as a confirmation that office spaces are providing a fully safe environment for their users.
The new office spaces should offer more than they did before, in terms of safety, technology, innovation, comfort, and well-being. The pandemic highlighted the importance of wellness issues and accelerated the adoption of positive trends, both in personal and professional life.
The tenants and investors are now paying more attention to properties when it comes to their impact on the environment, the green solutions implemented within the buildings, great architecture and placemaking where people can use the office space for more than only daily work. The growing interest in ESG standards shows that they will determine to an increasing extent the market’s shape in the future, as well as property valuations. Investors are being more aware now of the importance of this aspect and they will base their purchasing decisions on whether the seller has implemented ESG principles more often than before. Green buildings that operate in a sustainable way are now becoming the new standard.
Wellbeing and mental health at work is another important aspect in 2022. Physical security and comfort are no longer the only aspect that companies should take into account – nowadays offices must become a safe space for both the well-being and the mental health of employees.
At Skanska, our futureproof buildings are already prepared for the future and continue to adapt and improve constantly, always ready to meet the latest needs of the market.”
2021 IN 3 KEY WORDS OR MORE
“Flexibility to adapt, continuous learning, and care for care for life are the best words to sum up 2021. While change was the main theme of 2021, continuous learning and flexibility were the necessary ingredients for a successful adaptation to the unpredictable. Care for life and doing our part in making sure that everyone is safe and healthy was one of our top priorities in 2021.”
2022 IN 3 KEY WORDS OR MORE
“Continuous innovation is crucial in 2022 for a successful business. Flexibility of adaptation remains just as important, and both previous mentioned are essential in scrutinizing and exploring the opportunities in 2022.”