We will grow profitably by strengthening our position in the environmental management value chain

Environmental Services produces exceptionally comprehensive solutions for its customers with a high level of material and cost efficiency by managing every step of the environmental management value chain. We work with our customers to plan the optimal environmental management solution for them, set targets and monitor their achievement. To reach the set targets, we provide our customers with appropriate waste collection equipment and products, manage the collection of waste and its transportation to be treated at our own plants or our partners’ facilities. We then process materials into secondary raw materials for industrial use or manage their safe final disposal.

 

Business environment

The following trends will impact the Environmental Services division’s business in L&T’s strategy period 2015–2018:

• The significance of environmental responsibility will grow, increasing the demand for environmental services.
 
• The EU has set long-term targets to promote circular economy, creating a better operating environment for the development of new technology and waste management solutions.
 
• Digitalisation reduces the demand for printing paper, but e-commerce leads to more packaging material in the market.
 
• The amount of construction waste varies according to the economical situation of construction, but the recycling objectives of construction waste are tightening, which increases demand for the services.

The following key legislative changes will affect the Environmental Services division:

• Landfill disposal of organic waste banned as of 2016
Due to the ban, waste previously delivered to landfills will be directed to recycling (primarily construction waste) after the landfill disposal of organic waste is no longer allowed.
 
• Packaging waste to be covered by producer responsibility
A packaging waste collection and reception network must be built in Finland, which creates new business opportunities in the waste management market.

CORNERSTONES OF THE ENVIRONMENTAL SERVICES DIVISION’S STRATEGY

• Strengthening our expertise in environmental management
We offer our customers Environmental Management expert services as a separate business. In addition to new business, this will create a competitive advantage compared to the traditional environmental management value chain.
 
• Service development through leveraging digital solutions
We will invest in new service development by, for example, leveraging digital solutions.`
 
• Development of collection and transportation technology
We will incorporate business operations related to receptacles into our traditional environmental management value chain and offer a comprehensive environmental management solution to our customers. We will seek growth particularly in the area of technical equipment and related maintenance services. This will be reflected to customers as the improved management of the total costs of environmental management.
 
• Expansion in the environmental management value chain
We will strengthen our market position in different waste fractions and geographical areas. We will also increase the value of the material in our possession. We will take advantage of the business opportunities presented by changes in legislation and the operating environment.