Please list the industry’s three biggest sustainability (ESG) related challenges and briefly describe the process for identifying these challenges
Transparency and control through the entire supplier chain
This is required, among other things, to ensure that the business is free from corruption, forced labour, and deficiencies in
the work environment.
Climate neutrality
Changed working methods and more flexible building solutions are required to reach the industry goal of net zero emissions by 2045. Zengun wants to particularly mention recycling and reuse of materials with longer durability.
Sustainable urban development
The industry needs to switch to construction that ensures sustainable environments where work and living function in balance and are supported by efficient communication solutions.
Does the company have a Science Based Target, report to the CDP or engage in any similar sustainability initiatives?
Zengun has set the goal to become climate neutral by 2045, which is in line with Sweden's environmental objectives. According to the definition, supplementary measures such as climate compensation can be credited towards achieving netzero emissions. Zengun operates in accordance with the "Roadmap for fossil-free competitiveness - Construction and Civil Engineering Sector.“
As of now, Zengun does not have a Science Based target or report to CDP. However, this will be evaluated going forward.
Have you conducted any preliminary assessments of your company in relation to the EU Taxonomy? If so, what was the outcome?
Zengun has conducted a preliminary assessment in 2025. The results are currently confidential, as they do not yet cover the Company’s entire operation.
Please list the firm's three primary risks related to climate change and if any, the firm's climate-related opportunities
Supply Chain Risks: Climate impacts on suppliers and raw material availability can cause delays and increased costs due to resource scarcity or transportation interruptions.
Physical Risks: Climate change increases the frequency of extreme weather events such as heavy rainfall, storms, and temperature fluctuations, which can disrupt construction schedules, damage materials, and increase operational costs.
Regulatory and Compliance Risks: Increasingly stringent environmental regulations and building codes related to energy efficiency and emissions may lead to higher compliance costs and the need for adjustments in project planning and execution.
Regarding climate-related opportunities, Zengun sees significant potential in: Green Building and Sustainable Construction: Growing demand for energy-efficient, low-carbon buildings opens opportunities for expanding services in sustainable design, use of eco-friendly materials, and implementation of innovative construction technologies.
Renewable Energy Integration: Collaborating on projects involving renewable energy installations (e.g., solar panels) as part of building solutions.
Enhanced Reputation and Market Position: By proactively addressing climate risks and adopting sustainable practices, Zengun strengthens its competitive edge and appeals to clients prioritising environmental responsibility.
Does the firm anticipate any climate-related investments, and if so to what extent?
The Zengun Group wants to take its responsibility for societal development by contributing with competence and
experiences to the greatest possible extent. Zengun is actively engaged in a range of research projects and industry
initiatives focused on areas such as circular material flows and reuse, collaborating closely with customers and industry
partners who are prominent in sustainability issues. At present, Zengun sees no additional investment need related to this
issue.
Circular Economy: how are purchases and waste managed?
The projects follow a company-wide minimum level for a number of parameters, for example for waste management,
material selection, chemical handling. As a rule, project-specific environmental or certification requirements are also added.
Furthermore, the project- and supplier-specific implementation within each purchase is required. All subcontractors and
material suppliers are required to follow Zengun’s code of conduct.
Transition-related risks: Do you anticipate any risk or opportunities due to the transition to a carbon-neutral society? Is there any risk of the firm’s offer being negatively affected? If yes, how has the firm positioned itself to handle the risk?
There is a strong and growing demand for sustainable construction solutions and circular processes within Zengun’s
market. The Company has recognised this trend early and have been actively integrating sustainability into its business
strategy for several years. This includes green building techniques, adopting circular economy principles in material
management, and developing expertise in energy-efficient construction methods.
Risks:
A potential risk lies in the pace of regulatory change. If the transition towards carbon neutrality is perceived as too slow by
legislators, there is a possibility that sudden, stricter regulations or sanctions could be introduced to accelerate the process.
Such abrupt changes could impact project timelines, costs, and require rapid adaptation of the Company’s operations and
supply chains. Another risk is that some traditional construction methods or materials may become obsolete or subject to
higher taxes or restrictions, which could affect parts of our existing offering. There is also the risk of increased competition
from new market entrants specialising exclusively in green construction.
Opportunities:
However, the transition to a carbon-neutral society presents significant opportunities for growth and innovation. Zengun’s
proactive approach has positioned the Company well to expand its portfolio of sustainable building projects. The Company
sees potential in partnering with clients who prioritise sustainability to meet their environmental goals. This not only
strengthens Zengun’s market position but also contributes positively to the ongoing climate change. How the Company
has positioned itself:
Collaboration: The Company actively collaborates with suppliers, clients, and industry organisations to promote circular
economy principles and reduce carbon footprints.
Risk management: Zengun continuously monitors regulatory developments to anticipate changes and adapt its business
processes proactively.
Employee training: The Company’s teams receive ongoing training to enhance competence in green building standards
such as LEED, BREEAM, and Miljöbyggnad.
Innovation: Zengun incorporates digital tools for efficient project planning and resource management, reducing waste and
improving energy efficiency on site.
By taking these measures, the Company aims to mitigate risks related to the transition while capitalising on the
opportunities it creates for sustainable growth.
Please disclose your Scope 1,2 and 3 GHG emissions
Greenhouse gas emissions; Scope 1, Scope 2 and Scope 3:
Scope 1: 30 tonnes
Scope 2: 812 tonnes
Scope 3: 42,831 tonnes (excluding end-of-life, energy and maintenance of sold properties)
Full year 2024
Have you set a target to become carbon neutral? If so, how have you defined carbon neutrality?
Zengun has set the goal to become climate neutral by 2045, which is in line with Sweden's environmental objectives. According to the definition, supplementary measures such as climate compensation can be credited towards achieving net-zero emissions. Zengun operates in accordance with the "Roadmap for fossil-free competitiveness - Construction and Civil Engineering Sector."
Please list the firm’s (1-2) primary means of making a positive environmental impact or minimizing negative environmental impact. Please list the corresponding most relevant UN Sustainable Development Goals. What proportion of sales can be directly linked to selected UN SDGs?
The most important areas where the Zengun Group contributes to a reduced climate footprint and thus a positive impact on the climate have been identified as: waste management, transport & fuel, and material selection. All of these are linked to the climate goal of circularity. Follow-up and communication take place internally today in various tools, for example within the framework of the certification process that affects each project, in the documentation platform for building products and chemicals, statistics, random samples, and deviation follow-up
Does the firm have a history of accidents? If so, how have these been managed? Are there any preventive measures, such as policies?
A safe and secure work environment is the highest priority at Zengun Group’s workplaces. The work environment policy can
be found on the website. Zengun is constantly developing processes and tools for safe and secure workplaces, primarily
through preventive work. The Company requires that all environment work should take place on a digital platform for
reporting, statistics, and follow-up. Since Zengun was founded in 2009, very few serious accidents have occurred.
If applicable, please state your targets for gender and cultural equality and indicate the relative split of men/women at every level of the firm
Zengun does not have a set target but actively works to create an equal and diverse workplace.
Gender distribution in 2024:
Total number of employees: Women 30%, Men 70%
Company’s management group: Women 43%, Men 57%
Board of Directors: Women 25%, Men 75%
Does the company conduct any other community engagement activities aside from those directly connected to the business?
Zengun is continuously involved in various types of social commitments. For example, the Company has organised several
charity runs, and the board members are specifically encouraged to perform volunteer work. Furthermore, Zengun annually
donates a sum of money to various employee-selected organisations instead of giving Christmas gifts.
How often does the firm conduct audits of its suppliers, and how often do you discover incidents not compliant with your code of conduct?
The Zengun Group’s governing documents and policies are incorporated into each purchase agreement. For larger
purchases or purchases that are deemed to require greater transparency, site visits are made to the relevant suppliers.
Furthermore, the work environment policy and code of conduct are followed up in the daily work in the projects. All
subcontractors are reviewed based on established basic requirements before they can be hired. The code of conduct for
suppliers and partners is included as a contract appendix in all purchases.
Please list the firm’s (1-2) primary means of making a positive social impact or minimising negative social impact. Please list the corresponding most relevant UN Sustainable Development Goals. What proportion of sales can be directly linked to selected UN SDGs?
Zengun’s main contribution to promoting social sustainability is ensuring that the Company has a sustainable supply chain
free from child and forced labor, corruption, and other irregularities. This primarily relates to Goal 8 (decent work and
economic growth) and Goal 16 (peace, justice, and strong institutions), but it also has an impact on other goals.
Approximately 90% of Zengun's revenue consists of purchased goods and services.
Do all staff members receive continuing education on anti-corruption?
Are there any ongoing or historical incidents involving corruption, cartels or any other unethical business conduct? Have any preventive measures been taken?
There are requirements that all employees in leading positions must undergo training in good business ethics and anticorruption. In 2019, an external whistle-blower function was implemented that can be accessed via Zengun’s website and is
thus also available to external parties. So far, no incidents have been reported. The Zengun Group has no history of
incidents in the area of ethical misconduct, corruption, or cartel formation. Proactive measures are regularly carried out, for
example through education, industry-wide commitments, and thorough purchases.
Please state the firm’s business tax residence (i.e. where the firm pays tax) and explain why that specific tax residence was chosen
Sweden, where the Company performs all its business.
How many independent members sits on the Board of Directors?
2, 50% of the Board of Directors.
Please state if and to what extent, the company has transactions with
related parties
No transactions with related parties.
Which KPIs dictate the renumeration to management (are sustainability
and diversity goals included)?
The Zengun Group applies market-based compensation for the CEO and management. Variable compensation is primarily
linked to profitability.
Describe the company’s process for monitoring and reporting ESG issues and performance to senior management/the Board. In your response, please confirm what KPIs are monitored (if any) and how frequently reporting is undertaken
Formal reporting of ESG issues is reported on annual basis, but monitoring is carried out throughout the year.
Have you signed a Union agreement?
Yes.
Revenue (EUR)
EUR 226m in 2024 (average exchange rate in 2024, EUR/SEK=11.435)
Greenhouse gas emissions; Scope 1, Scope 2, Scope 3
Greenhouse gas emissions; Scope 1, Scope 2 and Scope 3:
Scope 1: 30 tonnes
Scope 2: 812 tonnes
Scope 3: 42,831 tonnes (excluding end-of-life, energy and maintenance of sold properties)
Full year 2024
Share of non-renewable energy consumption
The Zengun Group’s permanent offices use 100% renewable electricity. In our production operations, an estimated 30-35%
non-renewables are used, however it is often our customers who are responsible for construction heating and electricity.
Share of non-renewable energy production
N/A
Energy consumption in GWh
Approximately 7 GWh (2024)
Tonnes of emissions to water
This is not something that we track but we have only had a few minor fuel spills during the past year.
Tonnes of hazardous waste and radioactive waste generated
Approximately 25 tonnes, including asbestos (2024)
Unadjusted gender pay gap
N/A
Board gender diversity
Board: 25% women, Group management: 50% women.
Fossil fuel operations
Fuel for machines and to some extent for heating during certain production stages.
Sites/operations located in or near to biodiversity-sensitive areas where
activities negatively affect those areas
No
Science Based Target
No
Reports to CDP
No
UN Global Compact Signatory
No
Involved in the manufacture or selling of controversial weapon
No
Whistle-blower policy
Yes
Supplier code of conduct
Yes