Wienerberger Strategy 2023
ESG, Innovation, and Operational Excellence, as well as M&A and Portfolio Optimization: these are the most important pillars of Wienerberger’s sustainable growth. With a clear focus on our core segments – new build, renovation, and infrastructure – and fully in line with our ESG criteria, we will deliver an EBITDA enhancement of € 135 million through self-help measures by 2023. Read on for more information about our medium-term targets and our strategy for 2023.
Ever since the foundation of Wienerberger in 1819, we have been pursuing a clear goal: to improve people’s quality of life through our range of first-rate, sustainable building material and infrastructure solutions. Sustainability is not a fad of our 200-year history. It has always been at the core of the Wienerberger world and a crucial element of our corporate strategy and our decisions. Our solutions are the key to creating sustainable infrastructure and buildings for generations. We assume responsibility by taking environmental, social and governance (ESG) aspects into account.
This commitment provides the basis for a sustainable increase in enterprise value in line with ambitious ESG principles. It has made Wienerberger the resilient, diversified, innovative company we are today.
All our entrepreneurial activities are subject to clearly defined, ambitious ESG criteria. Our primary corporate goals are
- to increase our value creation within the house and
- to evolve into a full-range provider of system solutions in energy and water management.
To achieve these goals, we are focusing on the following drivers:
- Organic growth through Innovation:
During the past 10 years, we have grown organically by more than 6% per year. We are continuing this trend by advancing our trans formation into a full-range system provider, steadily improving our product mix, and supplementing it by digital services.
- Process improvements through Operational Excellence:
We will generate additional earnings growth through our efficiency enhancement program focused on manufacturing and all relevant business processes.
- External growth though M&A and Portfolio Optimization
An extremely attractive pipeline and the positive track record of recent years provide the basis for further value-accretive transactions. At the same time, we regularly review our corporate portfolio for growth prospects and profitability.
In our European and North American core markets we continuously focus on the expansion of our core segments: new build, renovation, and infrastructure.
Our targets for 2023
We will continue to pursue our resilient and successful growth course. For the years to come, we have set ourselves the clear target of realizing our potential for sustainable growth on the basis of our resilient business model, being aware of our responsibility for future generations and acting fully in line with all ESG aspects.
Wienerberger designs solutions for generations to come and intends to invest approximately € 60 million per year in ESG measures. Moreover, we are committed to the target of zero greenhouse gas emissions to be achieved within the framework of the Green Deal of the EU by 2050. Convinced of the importance of sustainability in business, and committed to improving the quality of life for future generations, Wienerberger is pursuing the following priority targets:
- Decarbonization: -15% in CO2 emissions as compared to 2020
- Circular economy: 100% of all new products designed to be reusable and recyclable
- Biodiversity: Biodiversity programs for all our sites in place
- Diversity: >15% female employees in senior management and >30% women in white collar positions
- Training and development: +10% hours of training per employee
- Social projects: 200 housing units built with our products per year for people in need in our local markets
We are committed to highest national and international governance standards, with focus on:
- Business strategy
- Board diversity and composition
- Executive compensation
- Succession management
By 2023, we will deliver an EBITDA enhancement of € 135 million through self-help measures. This will be supported by targeted growth investments (capex allocation):
- € 60 million p.a. for ESG investments
in the circular economy, biodiversity, and the reduction of CO2 emissions
- € 80 million p.a. for special investments
in recyclability, innovative product design and broadening the range of system solutions
- No guidance for M&A investments