More and more players in the market prove that energy-efficient building does not necessarily mean making

this kind of compromise. Our company of the month, the German Steico group, is testament to this fact.

 

On the back of well-targeted R&D, Steico has developed from a producer of wood wool insulation to a provider

of one of the widest ranges of ecological building materials. Demand for such solutions has experienced a drastic

increase.

 

While insulation materials such as rigid foam board constitute an impenetrable blockage, wood shavings allow

the building to breath. The result is an improved indoor climate, for which customers are willing to pay a premium.

Bearing in mind the risk of renovation due to mould or algae, the initially cheaper option may produce higher

costs in the medium to long term.

 

Steico’s approach to counter concrete and plastic with solutions made from wood also makes ecological sense.

The use of sustainable commodities saves vast amounts of energy and CO2 even during the production phase

in comparison with the other materials. In addition, Steico is the first company in its sector to use exclusively

FSC-certified wood from sustainable forests.

 

Being a medium-sized company, Steico has not introduced as detailed an environmental management system

as many larger competitors. Still, the firm resorts to ecological cycles in its processes and procedures across

its factories: water is recycled in closed systems, and wood waste is used to produce energy within in-house

biomass power plants.

 

Thanks to production sites in France and Poland, the work standards for the staff are comparably high as well.

This ensures that Steico’s production processes are not only compliant with ecological, but also with social

standards.

 

Sustainable building cannot be reduced to a figure on an energy certificate. By using sustainable material,

Steico goes beyond this approach and thus acts as trailblazer.

 

EAM invests in Steico SE through ERSTE WWF STOCK CLIMATE CHANGE and has been in dialogue with the company

when writing this edition of ERSTE RESPONSIBLE RETURN –The ESG Letter

 

(Dominik Benedikt)