Operating environment

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During the first quarter, the operating environment was affected by the rise of the third wave of the corona pandemic. The ongoing corona vaccination programmes provided a helping hand seen in the lower number of severe COVID-19 cases, although the speed of the vaccination programmes and the availability of vaccines are still raising concerns in Caverion’s operating area. Many governments have also started formulating their exit plans for lifting the various restrictions in the post-COVID-19 era and for supporting the economic recovery.

The corona pandemic continued to affect Caverion’s operations similarly as in the previous few quarters. This was visible particularly in the Projects business, whereas the Services business has remained more stable. On a positive note, Caverion did not experience any major constraints in the supply chain during the period.

The restructurings completed in the fourth quarter of 2020 had a positive impact on Caverion’s cost base during the first quarter, while the full-scale impacts will be visible later in the year. These actions included personnel reductions, reorganisation and operating model development.


In Services, the demand environment remained stable and comparable to the previous quarters despite the rise of the third wave of the corona pandemic. Overall there were early signs of increased investment activity among Caverion’s customers. Certain annual industrial shutdowns in Finland postponed from last year will take place in the second quarter of 2021.

There was still a general increasing interest for services supporting sustainability, such as energy management and advisory services, driven by regulation and the expected governmental and EU stimulus packages supporting investments in green growth.


In Projects, the pandemic continued to impact Caverion’s productivity to a certain extent, while market demand remained on a lower level. Due to the lower volumes, the pricing environment also remained tight during the quarter.

The demand for new construction projects was negatively impacted by the corona pandemic, however less for renovation construction. Stimulus packages did not yet impact general demand during the quarter.


Digitalisation and sustainability are our key themes 

Built environments are a major source of carbon emissions today:

  • 30% of the human carbon footprint comes from buildings.
  • 40% of EU’s final energy is consumed in buildings.
  • 20% of CO2 emissions can be reduced by digitalisation.

We consider digitalisation and sustainability as the key themes driving our future growth. Sustainability needs, in particular, are growing rapidly. Furthermore, other megatrends such as increasing use of technology and urbanisation are supporting Caverion’s growth.

Towards more sustainable investments

Changes in the EU legislation (EBPD) with increased focus on sustainability and carbon neutrality are driving industry growth. Government and EU-level corona-related stimulus packages are focusing development efforts toward sustainable investments over the coming years. Customers are expecting greener solutions and sustainability is becoming a decision criterion.

New consulting services (such as SRI, energy efficiency) and new digital services offer our customers:

  • Reducing costs (improved efficiency and productivity)
  • Generating energy savings
  • Serving to meet sustainability targets and legal requirements
  • Promoting sustainable recovery after corona pandemic
  • Enhancing property attractiveness.

We have taken into account the EU taxonomy requirements applicable to listed companies as of the beginning of 2022. The next goal is to align non-financial reporting and targets with the EU taxonomy. We will publish the first taxonomy reporting regarding the year 2021 in 2022.

Digitalisation will revolutionise our industry

New data-driven analytics and new technologies emerging enable developing smart, resilient buildings and cities that are technologically enabled, connected and agile and that both improve the operational efficiency of the buildings/cities and enhance the quality of life for theirs for residents.

Further digitalisation will benefit us in many ways through our solutions:

  • Complete, intelligent solutions and services with life cycle approach
  • New digital solutions (remote services, platforms, etc.), smart technologies (building automation, security and safety, cooling & refrigeration, telematics, etc.), IoT & AI powered solutions, industrial maintenance consulting, management and development to improve efficiency
  • Renewing digital service portfolio and offering new digital tools to improve customer experience.