Annual and sustainability report 2022
2022 Hemnet Group Annual and sustainability report
Table of contents
This is Hemnet 4 What is Hemnet? 6 CEO report 9 2022 in numbers 10 Our vision 11 Our strategy 17 Financial targets 18 Hemnet as a workplace 21 The Hemnet share
Sustainability report 22 Sustainability efforts 28 Risk analysis 29 Approach 30 Report on the Sustainability Report Administration report 31 The financial year 2022 34 Corporate governance report 40 Board of Directors 42 Management 44 Distribution of earnings
Financial statements 46 Consolidated income statement
47 Consolidated statement of financial position 48 Consolidated statement of changes in equity 49 Consolidated statement of cash flows 50 Notes, Group 67 Income statement, Parent company 68 .Balance sheet, Parent company 69 Report of changes in equity, Parent company 70 Statement of cash flows, Parent company 71 Notes, Parent company 73 Auditor’s report
The statutory Sustainability Report for Hemnet Group AB (publ) can be found on pages 22-29. Pages 31- 72 cover Hemnet Group AB (publ) annual report and consolidated financial statements and have been audited by the company’s auditor, Ernst & Young AB. An audit report can be found on pages 73-76. This publication is a translation of the original Swedish text. In the event of a discrapency between the Swedish version and this publication, the Swedish language version shall prevail.
At Hemnet, we consider it our most important job to make the journey to sell or find a new home as easy, efficient and smooth as possible. We want to enable home sellers and real estate agents to reach all prospective buyers – and buyers, in return, to have access to all available homes. We simply believe in an open housing market that benefits everyone and is accessible wherever you are. So that the way home is clear and open for as many as possible. Hemnet - the way home
What is Hemnet?
A growing and successful property portal...
#1 Recognised as Sweden’s most diverse and inclusive Public company 1)
889 (+22%) SEK million Net sales
448 (+26%) SEK million Adjusted EBITDA
...with the largest reach...
95% Awareness among home sellers
51 Million
Monthly visits 2)
...and the most engaged audience.
86% of property buyers turn to Hemnet first, when looking for a new home 4)
19x Number of visits vs. the #2 property portal 3)
9/10 sold properties in Sweden listed on Hemnet 5)
1) The Allbright Foundation. 2) Google Analytics. 3) Hemnet and SCB. Refers to all Swedes over the age of 14. 4) Nepa Hemnet consumer report Q3 2022. 5) Hemnet and SCB (the Swedish Central Bureau of Statistics), regards the second-hand market.
4 · Hemnet Group | Annual and sustainability report 2022
CEO report
Strong growth and net sales profitability as we continue expanding our product portfolio Hemnet’s results for 2022 highlight strong growth and execution, despite a challenging second half of the year for the property market. Our accelerated product development pace, high consumer and real estate agent demand, and our resilient business model have all been key factors behind this year’s strong results that exceeded all of our financial targets, with net sales growing 22.1 percent to 889.2 MSEK and adjusted EBITDA growing 26.2 percent to 448.1 MSEK.
The first half of 2022 was characterised by a very active real estate market, which cooled in the autumn due to increased inflation and announced interest rate increases. As a result, the number of listings on Hemnet fluctuated more than in a typical year but was on par with 2021 for the year as a whole. We continued to grow our net sales from property sellers through increased sales of our value-added services (Hemnet Plus, Hemnet Premium, Raketen and “Renewal”) combined with continued product development and price adjustments. In the year, revenue from property sellers increased by 32.6, and ARPL by 32.8 percent, showcasing the strength and resilience of our business model,
innovation and product development capabilities. It is very gratifying to see various proofs that we are on the right track. We score an exceptionally high employee Net Promoter Score of +50 and have been named one of Sweden’s best employers by Universum as well as received the AllBright award for being at the very forefront of diversity, inclusion and equality among Swedish public companies. We are committed to taking further steps in all our sustainability areas to become one of Sweden’s best employers, live by strong ethical principles, combat climate change and create positive social impact. A strategy for long-term success and growth The property market continues to be challenging as the new year has commenced, but history has shown that the Swedish property market is stable in the long term. While we cannot control the market, we can control our ability to continue delivering according to our strategy and creating more value for our customers. Through investments and continued momentum in product development, we believe that we are in a stronger position than ever. We will continue to invest in our core business and offering while strengthening and broadening our position. This is why we have reiterated our financial target of 45-50 percent adjusted EBITDA margin for 2023, despite current market conditions, and introduced a new, long-term, profitability target of an adjusted EBITDA margin exceeding 55 percent. We have also reiterated our financial targets for net sales growth, leverage, and capital allocation. During 2022, Hemnet has returned SEK 374 million back to our shareholders, through a combination of dividends and a share buyback program. The share buyback program continues until the 2023 AGM and all repurchased shares will be eligible for redemption at the AGM, in a testament to Hemnet’s strong cash conversion and consistent share buybacks. We maintain our position as one of Sweden’s strongest brands, and the leading Swedish property portal, by averaging over 50 million monthly visits and 19 times more visitors per listing than our nearest competitor. We are however still in the early stages of our commercial journey and have many opportunities ahead of us to reach our full potential. I look forward to continuing this journey and keep developing and improve Sweden’s largest and most relevant property platform in 2023 together with the rest of the Hemnet team.
also in more challenging market conditions. Accelerated product development
During the year, we have invested in and accelerated our product development to expand our product offering to consumers, property sellers and business partners. We have, amongst other things, launched a new section for searching for a real estate agent on Hemnet, which has quickly become one of the largest agent search services in Sweden. We have also repackaged our offering for property developers to increase clarity and customer value. Further, we have improved the logged-in experience on Hemnet. By login in and registering their home under ”My Home,” our users can access relevant local market information and get a value indication for their home. “My home” is a great example of how we broaden Hemnet’s position and create opportunities to take an even more active role in assisting consumers throughout their property journey. All of these new features also demonstrate our goal of providing an enhanced experience for our visitors while also opening up more business opportunities for our business partners. Continued sustainability steps We are proud of the many sustainability-related steps we have taken during the year. For example, we joined the Science Based Target initiative and committed to reducing our CO2 emissions in scopes 1 and 2 by 42 percent by 2030. In the coming year, we will complement this commitment by establishing a clear plan to reduce emissions in scope 3 as well. We have also expanded our social commitment by adding Sweden for UNHCR to the NGOs we work with, and we have improved our internal structure of how to inform and educate our employees in key governance documents, such as our Code of Conduct. We believe that a diverse and inclusive culture is key to our
Cecilia Beck-Friis , CEO, Hemnet
CEO Report
Hemnet Group | Annual and sustainability report 2022 · 7
2021 IN NUMBERS
2022 in numbers
Net Sales
SEK million
Net sales growth driven by increased demand for Hemnet Plus and Premium, price adjustments and continued strong demand for agent products.
900
889 SEK million
+ 22
720
540
%
360
180
0
2018
2019
2020
2021
2022
Adjusted EBITDA
SEK million
Adjusted EBITDA increased by 26 percent in 2022, as a result of high operating leverage coupled with strong revenue growth and focus on cost control.
450
448 SEK million
+ 26 %
360
270
180
90
0
2018
2019
2020
2021
2022
Average revenue per listing (ARPL)
SEK
Revenue from listing services continues to be Hemnet’s largest revenue stream and in 2022 the number of listings was in line with the record high number from 2021. ARPL continued to grow as a result of pricing of products for property sellers and increasing sales of value-added services.
3 500
3,275 SEK
+ 33 %
2 800
2 100
1 400
700
0
2018
2019
2020
2021
2022
Time on site 1)
Million hours
The pandemic generated a record interest in homes. During the autumn of 2021 the extreme interest normalised somewhat, but Hemnet use during 2022 remained at almost the same levels as prior to Covid.
65
53 Million hours
- 17 %
52
39
26
13
0
2018
2019
2020
2021
2022
Number of visits per month 2)
Million visits
During 2022, on average, Hemnet had 51.1 million visitors per month. This makes us Sweden’s largest property platform by far. In line with the time on site, number of visitors per month normalised during 2022, from the inflated numbers during Covid.
65
51 Million visits
- 20 %
52
39
26
13
0
2018
2019
2020
2021
2022
1) Hemnet and SCB (Central Bureau of Statistics). Refers to all Swedes over the age of 14. 2) Google Analytics
Hemnet Group | Annual and sustainability report 2022 · 9
Our vision is to be:
The key to your property journey. We increase efficiency, transparency and mobility in the housing market.
By becoming:
The destination for all things related to homes.
About Hemnet
Our strategy Hemnet’s growth strategy is based on our vision to be the key to your property journey, which for us means becoming the destination for all things related to homes. Our strategy provides the framework for how we will achieve our financial and strategic goals. It is based on three pillars focused on our key customer groups:
Real estate agents and business partners Transform - Broaden our B2B- portfolio Over the years, Hemnet has developed a close relationship with our business partners through a broad product portfolio to real estate agents, property developers, and other advertisers. We intend to deepen our relationships even further by helping our partners throughout the customer acquisition process in better ways than what can be achieved through products available on the market today. As property developers and agents today spend a relatively small share of their marketing budgets on Hemnet, we see a big potential in further capitalising on our strong audience reach and market position and helping our customers in even better ways than today.
Consumers Engage – Increase engagement and strengthen loyalty across the property journey Hemnet is the top player in matching property buyers and sellers in Sweden, with a strong brand, large audience, and high consumer preference. Our strong partnership with real estate agents allows us to bring the Swedish housing market together in one reliable and trusted place, contributing to a convenient, seamless, and efficient experience when selling or buying a home - or when just researching the market. We are committed to developing functionalities that contribute to mobility on the market at the same time as creating engagement and long-lasting relationships with consumers. By providing consumers with relevant features, information, and more reasons to spend more time on Hemnet, we also create more value for our business partners.
Home sellers Grow – Optimise seller revenues through a balance of product, packaging and price As the largest property portal in the country, Hemnet offers the best possible conditions to anyone listing their home for sale to reach the maximum number of prospective buyers. To help home sellers get the most out of their property sale, Hemnet has developed a range of value-added products. Depending on the seller’s needs, these products help maximise the visibility of the property listing to Hemnet’s large audience. We continue to see a growing number of sellers that choose to invest in our value- added services as we continue to improve and develop these products while working with packaging and pricing.
Our strategy
Hemnet Group | Annual and sustainability report 2022 · 11
Creating value to all players on the property market
Efficiency and maximised potential selling price Payment for listing and value- added services
Mutually beneficial relationship Administration fee and sales commission
Home sellers Looking to maximise the success of their property sale
Real estate agents Finding buyers, marketing, connecting with sellers, market insight
Listing administration and recommendation
Audience
Business partners
Consumers Browsing for information and inspiration
Property developers Marketing projects and strengthening brand
Banks Generating mortgage leads and strengthening brand
Advertisers Reaching the most relevant audience
Buyers Searching for their next home
Essential factor behind Hemnet’s success
A unique business model with strong network effects Hemnet enjoys a strong, stable and scalable business model centered around building a leading platform where all the participants in the housing ecosystem can connect and fulfill their needs. It is built on a foundation of network effects, by gathering virtually all participants in the Swedish housing market in one place. Leveraging this position, Hemnet can develop products that
Home sellers The majority of Hemnet’s growth and revenue comes from home sellers, where Hemnet’s business model stands out most compared to international peers. Firstly, it is the seller who pays for the listing. Hemnet has a direct relationship with the home seller, who selects a listing package and pays for the service directly to Hemnet. This provides Hemnet with an effective channel through which products aimed at home sellers can be sold. Secondly, Hemnet has a win-win partnership with the real estate agents, where Hemnet contributes a revenue stream to the agent offices. An administration reimbursement is paid out to all agent offices for administrating and publishing a listing on Hemnet. Agents and Other Business Partners Because virtually all all buyers and seller in Sweden are on Hemnet, it is an important marketing channel for business customers operating in the housing market or adjacent sectors. This includes real estate agents, property developers, banks and other content-close businesses. Today, much of the revenue from these groups comes from display advertising. However, Hemnet is continuously developing new products and services based on our strong market position and the large and relevant traffic to Hemnet, in order to better meet the needs of our business customers.
enable a closer relationship with our consumers, as well as addressing the needs of each customer group through the most effective and relevant products and services. By building on our position as the go-to place for buyers and sellers, we can facilitate more connections, in turn leading to a more efficient property market for all, which strengthens Hemnet’s proposition to all our clients. Consumers 9 out of 10 of all transacted properties in Sweden are at some point listed on Hemnet. Every month, Hemnet sees approximately 51 million visits to our portal through all our channels. This means that Hemnet is the property portal where most participants in the property market gather in one place.
12 · Hemnet Group | Annual and sustainability report 2022
Net sales by customer group Hemnet has a product portfolio catering to the needs of our four key customer groups. For home sellers , we create products that enable them to play a more proactive role in the marketing of their property listing. For real estate agents , our products aim to help them find their next seller, strengthen their brands (on a HQ, office and individual level) as well as to educate through market analysis and insights. For property developers , we are creating products that help them find a buyer throughout the life of a new construction project, as well as to strengthen their brand. For other advertisers , Hemnet offers the best platform through which to reach a housing-interested customer base, connecting these advertisers with the most relevant audience through our integrated products.
5% Property developers
10% Advertisers
72% Home sellers
13% Real estate agents
889 SEK million 2022 Net sales
Hemnet Group | Annual and sustainability report 2022 · 13
Our commercial offering to create value for our customers
Home sellers Customer needs: • Looking to maximize the success of their property sale • Smooth and efficient marketing • Great return on investment • Ability to follow and impact the visibility of their home for sale
Real estate agents Customer needs: • Finding the best buyer for their seller • Finding their next seller to sell a property for
• Market themselves and their brand • Stand out in a competitive market
Hemnet products to meet the needs:
Hemnet products to meet the needs:
Listing packages
Subscriptions
Enhanced exposure Analysis and insights Enhanced media
Be more visible for sellers
Additional services
Broker tip
Additional services
The rocket
Republishing
Display advertising
14 · Hemnet Group | Annual and sustainability report 2022
Property developers Customer needs: • Finding sellers throughout the lifecycle of a project • Branding and marketing
Advertisers Customer needs: • Cost effective way to reach the most relevant audience • Branding and marketing
Hemnet products to meet the needs:
Hemnet products to meet the needs:
Listing packages and subscriptions
Native advertising products
Property listing
Banks
Project listing
Utilities
Near core advertisers
Project unit
Additional services
Native and integrated products
The rocket
Republishing
Display advertising
Hemnet Group | Annual and sustainability report 2022 · 15
Financial targets
Hemnet has a scalable business model underpinned by multiple opportunities for future growth and margin expansion. On 27 January 2023 Hemnet introduced a new long-term adjusted EBITDA margin target of over 55 percent. Hemnet also reiterated its financial targets, including the profitability target of 45–50 percent adjusted EBITDA margin for 2023, despite current market conditions.
Growth 15-20%
Profitability >55%
40
50
32
40
24
30
16
20
8
10
0
0
2018
2019
2020
2021
2022
2018
2019
2020
2021
2022
Annual net sales growth of 15–20 percent.
Adjusted EBITDA margin of 45–50 percent for 2023. Long-term adjusted EBITDA margin in excess of 55 percent.
Leverage <2.0x
Dividend policy >1/3
350
5
280
4
210
3
140
2
70
1
0
0
2018
2019
2020
2021
2022
2018
2019
2020
2021
2022
Dividend
Share repurchase
Net Debt to Adjusted EBITDA ratio of less than 2.0x.
Annual dividend amounting to at least one third of the profit after tax. In the event that the company has excess liquidity, it shall be returned to shareholders through, for example, extra dividends or share repurchases.
Financial targets
Hemnet Group | Annual and sustainability report 2022 · 17
We strive to be one of Sweden’s best employers
A safe, inclusive and diverse workplace is one of our top priorities. We want Hemnet to be a place where people thrive, grow and develop, creating a work environment that ignites innovation and creativity. We simply want to be one of Sweden’s best employers – and we believe we are well on our way to achieving this.
Our core values
We listen and act
We always move forward
We succeed together
Our culture rests on three core values that guide us in our interactions within and outside the company, in our way of working and in how we behave and treat each other: We listen and act, We always move forward and We succeed together. Our values help us when setting our strategies as well as in making everyday decisions.
A few Hemnet voices:
“One of the very best things about working at Hemnet is that we are not afraid to experiment and try new things. This applies not only to our product development, but also to the way we work. We are always open to discussions about how we can do better and are constantly looking for input from each other, our users, peers and customers. I also really appreciate the collaborative culture we have at Hemnet. We often collaborate across teams and departments, which I think is very fun, challenging and rewarding.”
“The best thing about working at Hemnet, apart from constantly improving a product with a very big and clear impact, is the amazing culture and the great attention to everyone’s opinions and needs. At Hemnet, you are always encouraged to speak your mind and you are always heard. We listen to our users and each other, there are some amazing people to learn from and to share your knowledge with and we are given room to grow and encouraged to find new ways to evolve our product. To me, there’s nothing more valuable than that.”
“I joined Hemnet because I was looking for a place where I could not only help implement the product, but also help shape it, and that is exactly what I found here. At Hemnet, we work in product teams with people from different backgrounds and experiences. This diverse collaboration, both within and across teams, is an essential part of our culture and success. That, along with the diverse and supportive culture and atmosphere you can constantly feel, makes Hemnet a unique and rewarding place to work.”
Yichu, UX Designer
Agustina, Developer
Tamer, Back-end Developer
18 · Hemnet Group | Annual and sustainability report 2022
Hemnet as a workplace
An award winning, diverse and inclusive workplace where people thrive
62% Women
38% Men
#3 IN SWEDEN E
R
ALLBRIGHT
E
E
In 2022, Hemnet was awarded the AllBright prize which is given to public companies with a clear agenda for diversity, inclusion and gender equality.
Gender equality starts at the top. We are proud to be a tech company with an equal management team and that 62 percent of all of our managers are women.
During the year, Hemnet was also recognised as one of Sweden’s best employers by Universum, coming in third place amongst middle-sized companies.
”We want to create a work environment that is characterised by people with different backgrounds and perspectives.” Cecilia Beck-Friis, CEO
15
#5
135 Employees
Attracting new talents is one of our most important focus areas.
People from all over the world work at Hemnet. Today, our employees come from 15 different countries.
Ranked as number 5 among media companies where Swedes would most like to work*.
* source: YouGov
Hemnet as a workplace
Hemnet Group | Annual and sustainability report 2022 · 19
The Hemnet share
2022 is Hemnet’s second financial year as a public company, following a successful listing on Nasdaq Stockholm on 27 April 2021. The total return on Hemnet’s ordinary share was 9 percent since the IPO in 2021, compared to a 3 percent decrease in the OMXSPI during the same time period. During 2022, the Hemnet share declined 25%, the same level as the OMXSPI.
Ownership by employees An up-to-date description of Hemnet’s long-term incentive programs (LTIP) for key individuals and the share savings program for employees can be found on our corporate website: https://www.hemnetgroup.se/en/governance/ incentive-programs/. Dividend policy and proposal to the Annual General Meeting 2023 Hemnet’s dividend policy is to distribute at least one third of the annual profit after tax. If the company has surplus liquidity, it shall be returned to the shareholders through, for example, special dividends or share buybacks. The proposal to the 2023 AGM is a dividend of SEK 1.00 per share and that the AGM authorises the Board of Directors to implement a buy-back programme over a twelve-month period, amounting to a maximum of 10 percent of the total shares outstanding. Ownership structure - the 10 largest owners
The Hemnet share 2022, OMXSPI rebased to Hemnet share price
SEK
200
150
100
50
Number of
Name
shares* Capital
Verified
0
Mar
May
Jul
Sep
Nov
General Atlantic 16,797,508 16.61% 2022-12-28 Mäklarsamfundet Bransch I Sverige 10,263,148 10.15% 2022-12-28 Vor Capital LLP 5,163,744 5.11% 2022-12-28 Odin Fonder 4,850,000 4.80% 2022-12-31 Brown Capital Management, LLC 4,125,992 4.08% 2022-12-31 Capital Group 4,056,406 4.01% 2022-12-31 Fidelity Investments (FMR) 4,050,950 4.01% 2022-12-31 Pierre Siri 3,000,000 2.97% 2022-12-28 Vanguard 2,557,893 2.53% 2022-12-31 Hemnet Group AB 2,292,683 2.27% 2022-12-30 Note: In a press release dated 31 January 2023, Hemnet announced that General Atlantic had divested its 16.8 million remaining shares in Hemnet. * Holdings as of 31 December 2022. Direct and nominee registered holdings with NCSD. Filing dates for foreign owners may vary. Foreign custodian banks are excluded. Source: Modular Finance
HEM
OMXSPI
Turnover In 2022, the turnover of Hemnet’s ordinary shares on Nasdaq Stockholm amounted to 62.5 million shares, accounting for 44 percent of the total share turnover across all exchanges. On average, 244,000 Hemnet shares were traded per day on Nasdaq Stockholm. Ownership structure Hemnet had a total of 10,246 shareholders as of 31 December 2022. In terms of numbers, Swedish private individuals make up the largest category of owners, while institutional owners dominate in terms of share capital.
Facts in brief Stock exchange ISIN code / Ticker
Nasdaq Stockholm (Large Cap)
Ownership by country, % of capital 1)
SE0015671995 / HEM
United States
35.8% 27.2%
Listing date Share classes
27 April 2021
Sweden
There are two classes of shares in the company: ordinary shares and series A1 shares. Both share classes have the same voting and dividend rights. The main difference is that series A1 shares have a veto right against alteration of the company’s objects in the articles of association. These shares are owned by Mäklarsamfundet. For complete information on the rights of the share classes, see the company's prospectus. 101,131,478, of which 96,074,904 ordinary shares and 5,056,574 series A1 shares
United Kingdom
9.4% 6.2% 1.8% 3.3%
Norway
Singapore
Rest of world
Anonymous ownership
16.2%
Ownership, % of capital 2)
Total registered shares:
Swedish institutional owners Foreign institutional owners
7.3%
Share price and market capitalisation as of 31 December 2022
55.5% 14.5%
SEK 125.6 / SEK 12.7 billion
Others
Swedish private individuals Anonymous ownership
6.5%
Highest / lowest price 2022
SEK 171.7 / SEK 109.2
16.2%
Companies that perform analysis of Hemnet AB Consensus estimate
Barclays, Carnegie, Citi, Jeffries, Morgan Stanley, Nordea
Available via Infront
1) Source: Modular Finance. Data compiled by Modular Finance. Sources include: Euroclear, Morningstar, Swedish FSA.
The hemnet share
Hemnet Group | Annual and sustainability report 2022 · 21
Sustainability Report
As one of Sweden’s most visited digital platforms and a hub for the country’s housing businesses, Hemnet plays an important role in the Swedish housing market. With our position comes great responsibility and we are actively working to build a company with a positive impact on the market in which we operate, as well as on society at large.
Our sustainability efforts during 2022 Hemnet is strongly committed to ensuring that its operations contribute to sustainable economic, environmental and social development. We are determined to constantly improve our business and make it more sustainable, and have made several important ESG and sustainability-related improvements during the year: • Implemented a sustainability reporting software to ensure we have all ESG-related data in one place for more robust and future-proof reporting. • Added a Sustainability policy , adopted by the Board, to our policies for more transparent governance and direction in our sustainability efforts. • Defined clearer goals within our various sustainability focus areas, available in this report. • Joined the Science Based Target initiative and committed to the
initiative’s targets for small and medium-sized enterprises to reduce emissions with 42% by 2030. • Signed the lease for a new office that meets high environmental standards within energy and waste management. • Added the role of and hired a Chief People and Culture Officer to our management team to further invest in our high ambition to become one of Sweden’s best workplaces. • Continued our work with diversity and inclusion by educating our leaders in unconscious bias. • Invited all employees to a full day about our values, culture, diversity, inclusion and belonging to ensure a common understanding of, engagement in and dialogue about the company’s beliefs and frameworks within these important areas. • I mplemented an e-learning platform to improve how we educate our employees on our most important policies and procedures.
Approach to reporting standards
We are determined to yearly take new steps and develop our sustainability efforts to meet stakeholder expectations and to prepare the organisation for the upcoming EU Corporate Sustainability Reporting Directive (the “CSRD”), which will come into force on 1 January 2026 for companies of Hemnet’s size. Until then, we will continue to follow up all of our sustainability focus areas with
performance indicators inspired by, but not fully meeting, the Global Reporting Initiative (GRI) requirements.
In our sustainability efforts, we also take guidance from the UN:s Sustainable Development Goals (SDGs), where we, in particular, contribute to goals 5, 8, 9 and 13:
In our committed work to become one of Sweden’s best employers, diversity, inclusion and belonging is a key focus. We strive towards gender equality within all layers of our organisation and support the industry initiative Women in Tech to inspire more women to choose a career within tech.
As a digital and comprehensive marketplace, Hemnet enables
Hemnet is an independent and transparent marketplace.
We strive to limit our
emissions and we review how we can help our customers make more sustainable housing choices through our services and platforms.
faster and easier property transactions for all market participants. This creates a more efficient property market and contributes to sustainable economic growth. Through our civic engage- ment and by supporting Stockholm City Mission and Sweden for UNHCR, we help to improve living standards for people in vulnerable situations.
Through our platform, we provide a high-quality and reliable digital infrastructure for the Swedish property market giving equal access to all market participants.
22 · Hemnet Group | Annual and sustainability report 2022
Sustainability report
Sustainability framework and focus areas
Sustainability is at the centre of what we do and a built-in part of our business model and vision. In addition, we focus our sustainability efforts on four focus areas.
Our starting point: A trusted and independent marketplace enabling a mobile, efficient and transparent property market Our sustainability framework derives from Hemnet’s vision to enable a mobile, transparent and efficient property market. Hemnet makes most of the Swedish housing market accessible in one place, which, combined with our high volume of visitors, creates an excellent environment for the various market participants to find each other, enabling market efficiency. As an independent marketplace, we offer homebuyers, sellers and real estate agents equal access to the part of the real estate market that Hemnet represents. With nine out of ten properties sold in Sweden over a year listed on Hemnet, we contribute to market transparency by facilitating the comparison of properties available, leading to more informed consumers and a more mobile and efficient market. We are a trusted partner and all content on Hemnet must be accurate, credible and of high quality. We apply standard ground rules for all real estate agents listing a property on Hemnet and
continuously track that listings published on Hemnet comply with our publication rules. We constantly invest in our services to ensure the best quality in our offering and high accessibility to the millions of Swedish consumers turning to our platforms weekly. Through the above, contributing to a sustainable and well- functioning market for buying and selling real estate in Sweden is at the core of our business model. Sustainability focus areas In addition to contributing to a sustainable property market through our business model, our sustainability efforts focus on four areas in which we strive to create positive change:
• Being one of Sweden’s best workplaces • Combating climate change • Living by strong ethical principles • Creating positive social impact
Being one of Sweden’s best workplaces
A trusted and independent marketplace, enabling a mobile, efficient, and transparent property market.
Creating positive social impact
Combating climate change
Living by strong ethical principles
Sustainability report
Hemnet Group | Annual and sustainability report 2022 · 23
Sustainability results and progress
Focus area 1: Being one of Sweden’s best workplaces
Our employees are our most important asset. We strive to be one of Sweden’s best employers and a safe workplace where people can develop and thrive. We actively work to improve diversity, inclusion and belonging and we pay attention to our employees’ health and work-life balance. We have a clear structure for issues affecting our people through our HR policy, Equality and Equal Treatment Plan and Action Plan against Abusive Treatment and Harassment. In the recent years of rapid company growth and expansion, we have managed to maintain our strong corporate culture, which is one of our key strengths in recruiting new employees and employee retention. Our culture and high employee satisfaction are reflected in our very high employee Net Promoter Score (eNPS), where most of our employees say they would recommend Hemnet as a great place to work. We started measuring eNPS in 2022 to keep track of how attractive we are as an employer and to increase comparability with other companies. Despite our corporate culture and high eNPS, our staff turnover in 2022 was higher than we would like it to be. This was due to an accelerated turnover in the year’s first two quarters as the covid pandemic reached its end. Working environment We want to offer our employees the best possible organisational, social and physical working environment built on mutual respect and free from harassment and discrimination. We believe in a sustainable work-life balance and strive for zero cases of work-related illness. We monitor our work environment regularly through surveys and ongoing conversations with employees. This helps us identify risks, conduct risk assessments, and take remedial actions when needed. Health and wellness We prioritise the health and well-being of our employees and believe that well- designed wellness practices increase employee engagement, motivation and satisfaction at work while preventing injuries and accidents. At Hemnet, all employees receive an annual wellness allowance and health and wellness are promoted through several joint health initiatives. To proactively work on
maintaining mental health, all employees have access to counselling for personal or work-related problems.
Diversity, inclusion and belonging (DIB) To succeed and grow as a company, we need employees with different experiences and perspectives. We are confident that these differences drive innovation and new ideas. Over the past four years, Hemnet has evolved from a very Swedish workplace to an international one. Today, colleagues from over 15 different countries work at Hemnet and this higher level of diversity has resulted in a more dynamic, creative and innovative company. It also places greater demands on us as an employer and requires us to take responsibility for making colleagues feel that they belong. English as a corporate language is important to ensure that everyone feels included and well-informed. We also invest in various social and company-wide activities to strengthen relationships between colleagues and give a social context to employees who may not yet have established their network in Sweden. We also offer language courses in Swedish to all non-Swedish speaking colleagues. The key indicators in Hemnet’s equality plan are reviewed annually to ensure that we maintain a high standard in our equality work. Salary surveys are conducted annually to detect, correct and prevent unequal salary differences between men and women. Hemnet operates in the tech industry and most of our employees are developers. The share of women in the Product and Tech organisation has grown during 2022 and we have been particularly successful at the managerial level, where we have more female than male development managers. To support an increase of female developers, we have increased our employer branding efforts and we continue to support the Women in Tech initiative and event. We are proud that our DIB-efforts have been recognised and that we were awarded the AllBright prize in 2022 as best-in-class among Swedish public companies within diversity, inclusion and gender equality.
Long term goals for being one of Sweden’s best workplaces: • Excellent employee Net Promoter Score (eNPS) of +50 or above • Even gender distribution within all parts of the company, including the Board, with a proportion of women and men in a group being 40/60 percent or more equal • Zero cases of work-related sick leave
Performance indicators:
2019
2020
2021
2022
eNPS
N/A
N/A
N/A
55
Gender Distribution (GRI 405-1) Share of women//men in the Board
20/80% 33/67% N/A 15/85% 36/65%
25/75% 57/43% N/A 14/86% 34/64%
25/75% 57/43% 62/38% 20/80% 40/60%
29/71% 63/37% 61/39% 28/72% 43/57%
Share of women//men in Management Share of women/men other managers Share of women/men developers/technical staff Share of women/men all staff
Work-related sick leave
2
1
0
0
Results from ongoing employee surveys (scale 1-100) Trust between colleagues: I am treated with fairness and respect: Leadership quality:
75 75 72
83 76 75
83 74 74
84 76 75
Staff turnover
23%
13%
17%
20%
24 · Hemnet Group | Annual and sustainability report 2022
Sustainability report
Sustainability results and progress
Focus area 2: Combating climate change
Due to Hemnet’s digital business model, we have a low impact on the climate and the environment. Nevertheless, we are determined to take responsibility and do our part to create a well-functioning real estate market within the planetary boundaries. Hemnet strives to have no local physical IT operations and we only use cloud services, meaning there is no server equipment that Hemnet manages directly on-site. Today, Hemnet has two primary IT solutions providers, both with their own ambitious CO2 emissions targets. Hemnet is committed to bringing hardware returned by former employees back into service. Obsolete computers, monitors and mobile phones that no longer meet the company’s needs are sold to companies that specialise in buying back this type of equipment. Other technical equipment that no longer functions or meets the company’s needs is first examined to see if there are components that can be reused or resold within the company. What is considered e-waste is forwarded to certified recycling companies. As of February 2023, Hemnet has moved into a new office in a building owned and administrated by Vasakronan. Vasakronan has been ranked as one of the world’s most sustainable property owners by the organization GRESB (gresb.com) and applies very high standards within areas such as circularity and climate impact. This affects our office’s energy consumption (described under “Scope 2” below) and waste management. We have separated office waste for recycling for many years, but in our new office, waste management standards are higher than before. For an efficient and unbroken waste management chain, all waste is separated in our kitchenette, collected daily and brought to the building’s environmental room to be taken further in the waste cycle in a service provided by Vasakronan. CO2 emissions In 2022, Hemnet applied for participating in the Science Based Targets initiative (“SBTi”) and committed to the initiative’s near-term science-based emissions reduction target for small and medium enterprises and, by that, to reduce CO2 emissions by 42 percent by 2030. The SBTi approved Hemnet’s near-term target in January 2023. In this first step, Hemnet has committed to reducing emissions within scopes 1 and 2, and aims to review and set a long-term target for reducing emissions within scope 3 during 2023.
Emissions within Scope 1 Hemnet has no direct emissions that fall under scope 1.
Emissions within Scope 2 An essential part of our climate efforts is reducing energy consumption in our office, which is our only source of CO2 emissions within Scope 2. Our office building is powered by renewable electricity and for our office space, we have an additional service from our electricity provider that includes electricity from 100 percent renewable sources (solar, hydro or wind). The building in which our new office is located, which we moved into in February 2023, meets high environmental standards and has a platinum certificate under the green building rating system LEED. Most of the heating and cooling in our new office building is provided by a geothermal system and produces no CO2 emissions. The building is not (yet) fully self-sufficient and additional district heating is supplied. However, property owner Vasakronan always buys the cleanest available product and if energy from renewable sources is unavailable, Vasakronan climate compensates for the emissions.
Long-term goal for combating climate change: • Reducing absolute scope 1 and scope 2 GHG emissions 42% by 2030
Performance indicators: Carbon dioxide emissions, tonnes CO2e. GRI 305-1-3.
2019
2020
2021
2022
Scope 1 Hemnet has no company cars
0
0
0
0
Scope 2 Electricity
N/A N/A N/A
0 3 0
0 3 0
0 16 0
District heating District cooling
Scope 3 Business travel* Employee commuting Customers’ use of Hemnet’s services Cloud services (AWS and Google)
N/A N/A N/A N/A
2 7
2 7
34 21
123 N/A
122 215
102 259
Total emissions scope 1-3
N/A
135
348
432
* Includes flights, hotel nights, rental cars, train and taxi travel.
Sustainability report
Hemnet Group | Annual and sustainability report 2022 · 25
Sustainability results and progress
Focus area 3: Living by strong ethical principles
Hemnet’s Supplier Code of Conduct sets out our expectations on our suppliers regarding basic ethical and moral principles related to sustainability and human rights. We have zero tolerance for child labor and slave-like conditions. Right to privacy Data is a key asset for Hemnet and we collect and process large amounts of data that can be directly or indirectly associated with an individual. All processing of such information (personal data) is carried out with respect for privacy and in accordance with applicable data protection legislation. We do not share personal data with suppliers unless a data processing agreement is in place. If the supplier is located outside the EU/EEA, we will only transfer personal data if we have ensured that there is a legal basis for the transfer and that appropriate safeguards are in place for it. As we further develop our technology and business or change how we handle personal data, we ensure that these changes are properly addressed from a data protection perspective. These principles form the basis for all of our work related to personal data protection and are described in our Code of Conduct and in more detail in Hemnet’s Guidelines for data protection.
Our Code of Conduct gives us a strong ethical foundation Hemnet’s business is run on the basis of principles of ethics and responsibility that permeate all aspects of our operations and are summarised in our Code of Conduct. The Code of Conduct provides clear ethical and moral guidance and sets the expectations of Hemnet in relation to our employees. It helps us to ensure that principles of ethics and responsibility are integrated into all aspects of our business and that we act in a trustworthy and transparent manner in all aspects of our operations. The code articulates the company’s zero tolerance for bullying, harassment, intimidation, bribery and corruption. Our approach to Human Rights is also a part of our Code of Conduct, stating that Hemnet and its employees respect the internationally recognised human rights as described in the UN Universal Declaration on Human Rights. We are guided by the UN Guiding Principles on Human Rights in Business and we conduct our business with respect for the human rights of all individuals. We expect the same from our suppliers. Our employees must know about our Code of Conduct, what it stands for and what responsibilities it comes with for them as Hemnet employees. All new colleagues are educated in the code as they start at Hemnet. In the beginning of 2023, we implemented a new e-learning tool to give all employees a better opportunity to understand the code fully, while at the same time giving the company solid tracking of how many have completed the course. We promote a culture of openness where everyone is encouraged to speak their mind and raise any issues relating to non-compliance with the code. Violations of our ethical guidelines are reported internally through managers or anonymously through our whistleblower function, which is available through our website hemnetgroup.com and on our intranet. Demands on suppliers We expect our suppliers to conduct their business in a responsible manner compatible with the law and our values. No part of our supply chain must go against the principles of our Code of Conduct.
Long term goal - Living by strong ethical principles : • 100% of Hemnet’s employees should acquaint themselves with Hemnet’s Code of Conduct and go through the yearly e-training
Performance indicators:
2019
2020
2021
2022
Communication and training on anti-corruption policies and procedures (GRI 205-2) Share of employees informed about the company’s Code of Conduct Share of employees who complete and passed e-training in Code of Conduct*
N/A N/A
N/A N/A
100% N/A
100% 98%
Confirmed incidents of corruption and actions taken (GRI 205-3)
N/A
0
0
0
Number of incidents reported through Hemnet’s whistleblowing function
N/A
N/A
0
0
Data protection incidents Number of personal data incidents related to customer data reported to the Swedish Authority for Privacy Protection
0
0
0
0
* E-learning module was implemented in the beginning of 2023 and results are from February.
26 · Hemnet Group | Annual and sustainability report 2022
Sustainability report
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