Veidekke

Environmental & Social Information • May 6, 2021

Veidekke ASA: Adopts ambition to reach climate neutrality by 2045

Veidekke ASA: Adopts ambition to reach climate neutrality by 2045

Climate is central to Veidekke's strategy, as will be announced at the group's

capital markets update today. In light of the updated strategy, Veidekke has

resolved to raise its climate ambition, aiming to achieve climate neutrality by

2045. The ambition involves cutting greenhouse gas emissions from Veidekke's own

operations and its value chain to net zero before 2045, in line with an

emissions pathway of limiting global warming to 1.5[o]C.

"Veidekke plans to take on an active role in realising the Green Shift, and will

consecutively seek opportunities to reduce greenhouse gas emissions in the value

chain and throughout its projects' life cycles. Through our own innovation, the

use of expertise and by collaborating closely with customers, suppliers and

other partners, we can help curb negative impact on climate and the environment,

while at the same time creating added value," says Jimmy Bengtsson, Group CEO of

Veidekke.

Climate neutrality (net zero emissions) means removing at least as the same

amount of CO\2e\ from the atmosphere as is emitted. For Veidekke, this requires

reducing the maximum amount of emissions possible from the company's value chain

and neutralising any residual emissions through methods, such as carbon capture,

that permanently remove CO\2\ from the atmosphere.

To achieve climate neutrality, Veidekke must limit and eventually stop using

fossil fuels and carbon-intensive materials in its construction and civil

engineering operations. That includes reducing emissions resulting from the

purchase and use of goods, such as concrete and concrete elements, steel and

bitumen, and services, such as groundworks and the transportation of aggregates.

For Veidekke, the ambition to achieve climate neutrality initially requires

monitoring greenhouse gas emissions throughout the value chain, developing a

credible strategy for cutting emissions in line with Paris Agreement

obligations, and posing strict requirements to suppliers and partners to cut

emissions.

Veidekke endorsed the UN's 2[o]C target as early as 2015, as one of the first to

do so among companies listed on the Oslo Stock Exchange. Continued through the

Paris Agreement, the 2[o]C target was since stepped up to 1.5[o]C. In 2017,

Veidekke undertook to reduce its own greenhouse gas emissions by 50 percent by

2030 and 90 percent by 2050. From 2021, Veidekke has set a greenhouse gas budget

for its operations. The greenhouse gas budget goals will be monitored and

followed up on in line with financial goals and OHS goals, and are also included

in the incentive programme for the company's top management group. The ambition

of reaching climate neutrality throughout the value chain by 2045, which the

company has now adopted, is the next step on the path to fulfilling Veidekke's

commitment to the Paris Agreement.

For more information, contact:

Lars Erik Lund, EVP Strategy and Sustainability, +47 413 31 369

Veidekke press photos  (https://veidekke.fotoware.cloud/fotoweb/archives/5028

-Pressebilder-Veidekke/)

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Veidekke is one of Scandinavia's largest contractors. In addition to undertaking

all types of building and civil engineering assignments, the group also

maintains roads and produces asphalt and aggregates. Veidekke emphasises

stakeholder involvement and local experience. Its annual turnover is

approximately NOK 38 billion, and half of its 8,000 employees own shares in the

company. Veidekke is listed on the Oslo Stock Exchange, and has posted a profit

every year since its inception in 1936.