Key risks & opportunities
This section highlights the key risks and opportunities that Cordeel Group is currently facing. Identifying and assessing these factors is crucial for developing an effective sustainability strategy to mitigate risks and capitalise on opportunities.
Key risks
Human rights violations in supply chain
Why is this a risk?
We want to be compliant with the law and are responsible for our supply chain. Projects with human right violations might be (partially) stopped as seen in other cases in 2022 (not at Cordeel) which leads to delay of realisation and might lead to extra costs or legal consequences.
Human rights violations in supply chain
Responsive action
- Check-in at work system to monitor business partners present on site and their legal status
- Code of Conduct for business partners
- Due diligence for business partners
- Transparent collaboration with authorities
- Dedicated employee to check subcontractors on site
Disturbed supply chain and inflation
Why is this a risk?
Delay of materials can cause production or construction projects to be delayed as well, which might cause penalties.
Inflation increases our costs for raw materials and labor and/ or might postpone investments of our customers for new projects.
Disturbed supply chain and inflation
Responsive action
- High knowledge of the market of project leaders and calculation department to find viable alternatives
- Vertical integration: By controlling big parts of the supply chain (see C-production) we can anticipate on problems in supply chain faster and have more options to mitigate.
- Contractual agreements to invoice inflation-related extra-costs to customers
- Adaptation of designs
- For batteries: R&D skills for adaption of models and dedicated purchaser fluent in the language of the country of the origin of raw material
Changing regulations
Why is this a risk?
Changing regulations might interfere with current operations causing an increase/ decrease of the project values. Possible legal consequences of not complying with regulations.
Changing regulations
Responsive action
- Dedicated Group Sustainability Officer to follow-up changing regulations in terms of sustainability and EU taxonomy
- Dedicated employees for Quality, Environment & Safety for domestic regulations in their fields, with one of them being a certified European Energy Manager.
- Additional employees joint the legal department in 2023
Embodied carbon
Why is this a risk?
Especially stock-noted companies are starting to define targets for the embodied carbon of their buildings. Denmark is the first country to define a maximum of embodied carbon for buildings. By not complying with this, there is the potential to lose projects in the future.
Embodied carbon
Responsive action
- Big impact on the value chain due to its own precast production and own R&D.
- The formula of precast concrete has already been adapted and the CO₂ emissions therefore reduced.
- Focus group is working on reducing our embodied carbon thanks to design adaptions, material choices and usage of tools to calculate the footprint of buildings.
- Discussion with project partners to reduce the impact of our buildings.
War for talent
Why is this a risk?
Without talented employees we cannot conduct business, projects and business development might get delayed. One of the biggest risks for Cordeel is not finding (suitable) talent.
War for talent
Responsive action
- A dedicated and high-performing team in the talent acquisition department.
- A strong employer brand
- Our vision and mission and the investments to make them become a reality is attracting talent.
- A strong focus on improving the work environment and employee well-being.