Finance transformation
deeper sustainability goals too. And, like Persson’s work on those yellow machines, it could ultimately save money as well.
Carbon copies
Skanska has a long history in New York, while maintaining a presence across two continents.
it: “I think the release of value from this type of data application has the potential to have much more value creation than if we just reduce costs and administrative processes.” A fair point: given fuel costs for diggers and other construction equipment have risen by up to 30% in recent years, getting operators around more effectively will inevitably boost Skanska’s bottom line, and that’s before you factor in broader efficiencies. But more fundamental still, Persson argues, is the way in which this experiment shows how using data can have genuine benefits on the ground for both Skanska and its staff. “I think the way data is used is a little bit sloppy sometimes,” he says. “You really need to think about what you’ll do.”
“If you don’t focus on reducing the emissions of your company today, and we actually do have a carbon tax in three years, five or seven years, you will have a very steep uphill climb.”
The amount by which Skanska hopes to reduce its carbon footprint by the end of the decade.
46% 70%
The percentage drop in Skanska’s carbon emissions since 2015.
Skanska 18
Persson has introduced a similar philosophy to other areas of the business too, not least when it comes to the environment. “I’m a big advocate for the need for any company – and for us as well – to reduce carbon emissions,” he says. “It’s not only for Skanska. It’s for the world. It’s for my kids.” Examine what the company is doing, indeed, and you get the sense that Persson’s colleagues are equally enthusiastic. For one thing, the company now publishes yearly sustainability reports, using data to offer details on everything from energy reduction in new office buildings (down 30% per year) to Skanska’s total carbon emissions (down 46% since 2015). That’s echoed by EC3. Co-developed with Microsoft and the University of Washington, this free, cloud-based tool allows Skanska’s engineers to calculate the amount of embodied carbon in any given build. It goes without saying that EC3 could seriously boost Skanska’s
In short, it seems clear that digitalisation and sustainability are two pillars of Magnus Persson’s CFO role. But they’re arguably shadowed by a third. As his newfound job as “strategic advisor” implies, indeed, Persson’s job involves far more than mere data crunching. Think about it like this: equipping Skanska’s bulldozers with tracking equipment sounds appealing in the boardroom, but for a decentralised company like Skanska, encompassing dozens of departments and over 30,000 workers, actually turning a digital dream into brick-and-mortar reality requires thoughtful interpersonal relationships. “We need to have a culture that embraces change in this area,” Persson says, “and we need to have competence in our employees.”
Apart from shaking hands and taking names, Persson manages the trick by exploiting all that data. If he can offer colleagues genuine insights about how to bolster operations, after all, he’s far more likely to win their trust. In the same vein, he works hard to ensure that insights are translatable across markets. In the United States, for instance, building projects rely on the so-called ‘Construction Manager/General Contractor’ (CMGC) approach. This means that once an owner decides a design is complete, the construction manager can bid on the cost. If both parties come to an agreement, they’ll become the general contractor and start building. But in markets like Finland, Persson explains, construction operates on a completely different model – obliging him to understand the “underlying characteristics” and specific terminology of individual contracts before presenting the global data in a unified way.
All this hard graft is surely just as well. As Persson says, he and his colleagues have plenty planned over the years ahead. Once again, sustainability is a special focus – a fact he argues could be driven as much by policymakers as by executives like him. “If you don’t focus on reducing the emissions of your company today, and we actually do have a carbon tax in three years, five or seven years,” he argues, “you will have a very steep uphill climb.” Fortunately, there’s evidence that Skanska is keen to get ahead of the curve, with the firm pledging to cut its embodied carbon emissions by 70% as early as 2030. With similar plans coming out of Skanska US, there’s every reason to think that the bridges and buildings Skanska builds five or ten years from now can help the planet as much as they do the people who use them. As I gaze out across the expanse of Manhattan once more, it’s a reassuring thought. ●
Finance Director Europe /
www.financedirectoreurope.com
Skanska
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