Balancing the three Ps: People, planet, and profit
Today, sustainability is not merely an option but a necessity. In this extended 18-month annual report, VEO shares its key developments during 2023 and 1H 2024. CEO Timo Ala-Heikkilä, HR Director Piia Tuliniemi and VP Sales and Marketing Jakob Lövdahl discuss how VEO balances people, planet and profit to form its current and future sustainable operations.
Profit as the foundation
In 2019, VEO made a decision to prioritise profitability over mere revenue growth. As a result, the company moved into a functional organisational structure during 2022-2023, which allowed VEO to optimise resources and focus on projects that align with its long–term goals.
The strategic focus on profitability is now yielding impressive results, especially in Finland, Sweden, and Norway. With a net profit nearing 3M EUR on group level, CEO Timo Ala-Heikkilä, is both proud and humble.
“While the last 18 months haven’t been entirely smooth sailing, we have clearly demonstrated the strength of our strategic vision. Profitability is the foundation that allows us to reinvest in our business and drive innovation, and I want to thank team VEO for its resilience and dedication that has brought us here.”
Commitment to the planet
In addition to a strong result, the order backlog is record high, indicating a bright year to come. The backlog is also a testament to the strong faith customers have in VEO’s offering, especially in the renewable energy sector.
“The large share of renewable energy projects is driven by our vision to enable a sustainable future. With our expertise and experience, VEO is already an essential force in advancing the transformative energy sector,” explains Jakob Lövdahl, VP Sales and Marketing.
From cutting-edge hydrogen and electric boiler projects to large-scale hydropower developments involving energy storage technology, VEO is involved in a multitude of areas driving the energy transition. Their work also extends into the process industry, where VEO contributes to projects like biorefineries and climate-efficient zinc production.
Beyond new projects, VEO has expanded its lifecycle services to ensure long-term sustainability. By offering ongoing maintenance, upgrades, and technical support, VEO aims to provide exceptional value throughout the lifespan of their installations.
People being the backbone
“With success comes responsibility. A record order backlog also means our teams are working harder than ever,” states HR Director Piia Tuliniemi.
To manage the high workloads, the HR department has introduced new tools and processes. Investments have been made into developing managers’ leadership capabilities to ensure they are well-equipped to guide their teams effectively, including transparent communication across all levels of the company.
Recruitment remains a priority to alleviate the high workloads and to help the company keep growing. Partnerships with educational institutions have proven to be an important source of new talent, allowing VEO to bring in skilled professionals even in a competitive market.
“These efforts, among many, have resulted in a steady increase in employee satisfaction, which is not just a metric for us but a sign that we are on the right path. We remain focused on continuously enhancing our workplace to ensure that our teams feel valued and motivated,” Tuliniemi concludes.
On the path to an all-renewable energy project portfolio
VEO has a strategic focus on projects driving the energy transition, which will only increase the share of these projects in the years to come. Multinational operators have discovered, and appreciate, VEO’s niche. “One day, VEO will have a project portfolio consisting solely of projects supporting the green transition,” Ala-Heikkilä envisions.
Ala-Heikkilä recognises that this requires a collective effort. With much of VEO’s product supply chain relying on suppliers, the company needs to engage its suppliers to a higher extent, as well as its customers – as the most environmentally friendly solutions not always are the most cost-efficient.
“By balancing our focus on people, planet, and profit, we aim to set a standard for what it means to be a responsible and successful company in today’s world,” Ala-Heikkilä sums up.
