Responsible and Profitable Business

K2A’s sustainability strategy is based on the conviction that profitability and sustainability are not opposites – they go hand in hand when managed correctly. We build for the future, with environmental responsibility, transparency, and financial stability as our foundation. We work strategically with green financing, clear ESG reporting, and long-term relationships. Through resource- and cost-efficient operations, active risk management, and a systematic approach to sustainability, we generate stable cash flows, low vacancy risk, and long-term value – for both shareholders and society.

We hold a strong position in residential markets with structural housing shortages, offering resilience to economic fluctuations. At the same time, our climate efforts contribute to lower operating and maintenance costs and reduced portfolio risk over time. All our residential properties have undergone climate risk assessments.

Creating Financial Value through Sustainability

An efficient organization, strong cost control, and the integration of sustainability throughout our operations generate long-term financial value. Our property portfolio is located in growth regions with low vacancy risk, and our climate work reduces both operational costs and future maintenance needs. Despite a downturn in 2024, K2A continued to apply systematic risk management. Since 2019, our operating surplus has increased by an average of 25% per year.

A Leader in Green Financing

Since 2018, K2A has exclusively used green financing for new development. We were the first company in the world to introduce a Green Equity Framework, in which both revenues and investments are assessed against sustainability criteria. In our most recent assessment, covering the 2024 financial year, 76% of revenues and 99% of investments were classified as green.

We were also early adopters of the Nasdaq Green Equity Designation and have been a Nasdaq ESG Transparency Partner since 2021 – a reflection of our commitment to openness and comparability.
Read more about our Green Equity Framework (PDF)

Systematic Management of Sustainability Risks

K2A identifies and manages sustainability risks across all three dimensions: environmental, social, and economic. This includes physical climate risks in the property portfolio, transition risks, supply chain risks, and business ethics. All of our residential properties have undergone climate risk assessments.

Benchmark ESG Performance

Since 2022, K2A has participated in the global GRESB sustainability benchmark. In the 2024 assessment, we received 88 out of 100 points in the Management component – earning a 5-star rating and ranking fourth globally among listed residential companies. In the Development component, we scored 93 out of 100.

Transparency and Reporting – in Line with International Standards

We report our climate impact according to the GHG Protocol, disclose taxonomy alignment under the EU Taxonomy, and prepare our sustainability report in accordance with GRI Standards 2021 and GRI 1: Foundation.
Our climate target has been approved by the Science Based Targets initiative (SBTi) since 2022.

Read our 2024 Sustainability Report (only available in Swedish)
View ESG metrics and emissions data

Ethics, Governance and the Supply Chain

K2A’s Code of Conduct applies to all employees, suppliers, and partners. It is based on the ten principles of the UN Global Compact and aligned with ISO 26000 on human rights, labour rights, the environment, and anti-corruption. All new employees receive training in the Code, and we have an external whistleblower channel to ensure compliance. No substantiated cases were reported in 2024.

We also require our suppliers to comply with our Supplier Code of Conduct, which is monitored through regular audits and procurement processes with sustainability criteria.

See our Code of Conduct (PDF, in Swedish)

Long-Term Partnerships for Sustainable Development

To help drive progress across the real estate sector, K2A participates in a wide range of initiatives for climate-neutral construction, social sustainability, and circular solutions. We are a committed knowledge partner to municipalities, companies, and institutional investors with high sustainability ambitions. We are members of the UN Global Compact, Sweden Green Building Council, SBTi, HS30, and Trästad Sverige.

Sustainable business also means strong partnerships. Our model is built on long-term thinking – in investments, customer relationships, and supply chains.