49
Sustainability Topics for Sectors: What do stakeholders want to know? CONSTRUCTION AND ENGINEERING, AND HOMEBUILDING May 2013 Page 1 of 49 This table shows a list of topics identified as relevant by different stakeholder groups. They can be considered as stakeholders’ suggestions or requests for topics to be monitored or disclosed by organizations. Additional information about the project can be found at https://www.globalreporting.org/reporting/sector-guidance/Topics- Research/Pages/default.aspx Construction and Homebuilding 68 Common Topics 10 – Construction and Engineering 3 Specific Topics Companies engaged in primarily non-residential construction. Includes civil engineering companies and large-scale contractors. Excludes companies classified under Home Building. 11 – Homebuilding 0 Specific Topics Residential construction companies. Includes manufacturers of prefabricated houses and semi-fixed manufactured homes. Sustainability Category Topic Topic Specification (if available) Explanation Reference(s) 1 Constituency Construction and Engineering, and Homebuilding – Common Topics Economic Financial implications due to sustainability issues EC2: Report other sustainability risks and opportunities, for example: • Natural resource scarcity, particularly energy sources, water and building materials; • Indirect risks and opportunities to business through customers 204* Civil Society Organization

Construction and Engineering - Global Reporting … · Sustainability Topics for Sectors: What do stakeholders want to know? CONSTRUCTION AND ENGINEERING, AND HOMEBUILDING May 2013

Embed Size (px)

Citation preview

Sustainability Topics for Sectors: What do stakeholders want to know?

CONSTRUCTION AND ENGINEERING, AND HOMEBUILDING

May 2013 Page 1 of 49

This table shows a list of topics identified as relevant by different stakeholder groups. They can be considered as stakeholders’ suggestions or requests for topics to be monitored or disclosed by organizations.

Additional information about the project can be found at https://www.globalreporting.org/reporting/sector-guidance/Topics-Research/Pages/default.aspx

Construction and Homebuilding

68 Common Topics

10 – Construction and Engineering 3 Specific Topics

Companies engaged in primarily non-residential construction. Includes civil engineering companies and large-scale contractors. Excludes

companies classified under Home Building.

11 – Homebuilding 0 Specific Topics

Residential construction companies. Includes manufacturers of prefabricated houses and semi-fixed manufactured homes.

Sustainability Category

Topic Topic Specification (if available)

Explanation Reference(s)1 Constituency

Construction and Engineering, and Homebuilding – Common Topics

Economic Financial implications due to sustainability issues

EC2: Report other sustainability risks and opportunities, for example: • Natural resource scarcity, particularly energy sources, water and building materials; • Indirect risks and opportunities to business through customers

204* Civil Society Organization

Sustainability Topics for Sectors: What do stakeholders want to know?

CONSTRUCTION AND ENGINEERING, AND HOMEBUILDING

May 2013 Page 2 of 49

Sustainability Category

Topic Topic Specification (if available)

Explanation Reference(s)1 Constituency

and stakeholders (i.e., counterparty risk);• Supply chain risks and opportunities, including health and safety;• Demographic risks and opportunities (e.g., local population changes, migration, migrant worker risk); and• Liability risk, including delivery/non-delivery of design performance for occupied buildings, and management of potential degradation and contamination.

Payments to governments

Direct payments and as agent

EC 1: Report payments to government broken down by: • Payments direct to government; and • Payments to government as agent, e.g., taxes paid to government but recharged to a third party (such as property or land taxes recharged to tenants or land owners).

204* Civil Society Organization

Voluntary investments in social infrastructure and assets

EC8: Also explain significant infrastructure investments made by the reporting organization in relation to the following: • Affordable and social housing; • Preservation and restoration of historic assets; • Publicly accessible open/recreation space; and • Community education and health facilities. Reporting organizations should distinguish between voluntary investment and mandatory investment (i.e., obligations associated with building rights allocation or planning permission

204* Civil Society Organization

Local employment

Employees, contractors' and sub-contractors' employees

EC 7: This Performance Indicator is particularly relevant because of the labor intensive nature of the sector, particularly with manual and low skilled workers. For this reason, the scope of this Performance Indicator is extended to include all direct employees, contractors

204* Civil Society Organization

Sustainability Topics for Sectors: What do stakeholders want to know?

CONSTRUCTION AND ENGINEERING, AND HOMEBUILDING

May 2013 Page 3 of 49

Sustainability Category

Topic Topic Specification (if available)

Explanation Reference(s)1 Constituency

and sub-contractors from the local community in significant locations of operation.

Environmental Construction materials and resource use efficiency

Because the construction industry consumes massive amounts of resources to create the infrastructure and built environment, resource efficiency is not only limited to compliance with legal requirements, but also includes the active promotion of measures to reduce resource depletion. In a resource-constrained world, the establishment of a reputation as a resource-conscious construction services provider will be a source of competitive advantage

460 Financial Markets & Information Users

Construction materials sourcing

Materials selection strategy

EN DMA: Policy and practices for selecting materials and engaging suppliers, including specifications for certifications, or utilization of preferred or prescribed lists of products and materials. For example, material selection and engagement with suppliers on the following issues: renewable content; recycled content materials; materials reused; re-usability of materials used; modularity and other design attributes of materials; and toxicity of materials.

204* Civil Society Organization

Raw, recycled and reused construction materials use

EN2: Policy and practices to reduce and optimize raw material extraction purchased for direct use. Policy and practices for selecting materials and engaging suppliers, including specifications for certifications, or utilization of preferred or prescribed lists of products and materials. The construction and real estate sector consumes considerable amounts of materials. This Performance Indicator refers only to materials purchased by the reporting organization for direct use. For reporters (in particular those involved in new construction and

204* Civil Society Organization

Sustainability Topics for Sectors: What do stakeholders want to know?

CONSTRUCTION AND ENGINEERING, AND HOMEBUILDING

May 2013 Page 4 of 49

Sustainability Category

Topic Topic Specification (if available)

Explanation Reference(s)1 Constituency

redevelopment/retrofit activities), this Performance Indicator is intended to measure use of recycled input materials and/or reused input materials.

The construction industry uses and consumes a significant amount of raw materials – many of which are energy intensive to process and produce. Working with its customers, the industry has significant opportunities to become more energy efficient primarily through the use of less virgin raw material and the reuse / recycling of waste. It is estimated that as much as 50 percent of all materials extracted from the earth are transformed into construction materials. Moreover, these materials account for approximately 50 percent of all waste generated prior to recycling

2 Mediating Institution

materials used by weight or volume, reused or recycled materials, reused excavation material, Sustainability in buildings and civil engineering works

317 Mediating Institution

Wood-based products from responsibly managed forests

Sourcing of wood based products (paper, furniture, etc) from responsibly managed forests. The following sections of the GRI reporting guidelines may be used by a reporter to mention FSC related activities, those are: - Profile - Commitments to External Initiatives: 4.12 externally developed economic, environmental, and social charters, principles, or other initiatives to which the organization subscribes or endorses.

185, 569 Civil Society Organization

Sustainability Topics for Sectors: What do stakeholders want to know?

CONSTRUCTION AND ENGINEERING, AND HOMEBUILDING

May 2013 Page 5 of 49

Sustainability Category

Topic Topic Specification (if available)

Explanation Reference(s)1 Constituency

- Environmental Impact: EN 26: Initiatives to mitigate environmental impacts of products and services, and extent of impact mitigation. - Product: PR3: Type of product and service information required by procedures and percentage of significant products and services subject to such information requirements. The above indicators are mostly not quantitative and a reporter may find difficult to integrate FSC related information. Ideally there would be a quantitative indicator related to certification scheme or initiative regarding the supply and the final product within the GRI guideline. In order to ease the reporting of FSC related activities, we propose to include two indicators related to supply and final product content. The wording could follow the Food Processing Supplement and worded as follows: “Percentage of purchased material by volume and weight which is verified as being in accordance with credible, internationally recognized responsible production standards, broken down by standard”. This topic reflects significant impacts, risks and opportunities for an organization itself and its stakeholders as well as requires active management or engagement by the organization. By buying FSC certified products, companies provide incentives for responsible forestry and can enjoy their purchases knowing it has not contributed to the

Sustainability Topics for Sectors: What do stakeholders want to know?

CONSTRUCTION AND ENGINEERING, AND HOMEBUILDING

May 2013 Page 6 of 49

Sustainability Category

Topic Topic Specification (if available)

Explanation Reference(s)1 Constituency

destruction of the world’s forest or even come from companies involved in human rights abuses. Almost everything made from wood and other forest products are available with the FSC label. Finding FSC products becomes easier everyday. Literally every day, more FSC products become available. This topic is relevant for all 52 business/industry activity groups. These simple steps can be followed by companies to find and buy FSC products: 1. Check the FSC marketplace at marketplace.fsc.org (in January 2013, the marketplace is still a beta version) Please note this database will currently only search for manufacturers and distributors, not retailers. There are only a few exceptions where retailers are also certified. To find products carried by your local retailer, please contact them directly. We are working on including other search options to this database in the future. 2. Ask your retailer Chances are, they will carry FSC certified products. If not, let them know you would be interested in certified products. Not all certification systems are equal and only FSC guarantees that the product has been made from environmentally and responsibly managed forests. By asking for FSC certified products, you show that there is a demand. This is an important and simple way how you can help FSC to make a difference.

Sustainability Topics for Sectors: What do stakeholders want to know?

CONSTRUCTION AND ENGINEERING, AND HOMEBUILDING

May 2013 Page 7 of 49

Sustainability Category

Topic Topic Specification (if available)

Explanation Reference(s)1 Constituency

A responsible purchasing programme for forest products should aim to improve the environmental and social performance of the supply base by ending the purchase of products that contain timber or fibre from sources that do not comply with stated company policy. The guide outlines the various ways in which purchasing organizations can demonstrate compliance with best practice and ultimately with their own purchasing policies. It is based on both tried and tested mechanisms and extensive experience in the development of responsible purchasing programmes

607 Civil Society Organization

Energy management

Life cycle of assets/buildings

EN DMA - EN3: Policy and practices on energy management through all relevant stages of the life cycle. For example, approaches to metering, procurement, avoidance, reduction, onsite generation (including use of incentives such as feed-in-tariffs), export and security. Reporting organizations involved in new construction and redevelopment should report known or metered energy consumption in addition to listing non-metered sources. These organizations should also identify the reporting boundary – the entities under control or influence – and if that boundary includes elements of their supply chain for which reporting on energy consumption is also material. Companies involved in new construction and redevelopment should identify known or metered energy consumption in addition to listing nonmetered sources.

204* Civil Society Organization

Sustainability Topics for Sectors: What do stakeholders want to know?

CONSTRUCTION AND ENGINEERING, AND HOMEBUILDING

May 2013 Page 8 of 49

Sustainability Category

Topic Topic Specification (if available)

Explanation Reference(s)1 Constituency

Energy production on-site

Source of energy

EN3: Report onsite production of electricity from renewable sources (e.g., fixed photovoltaic panels, wind turbines, solar thermal) as calculated in 2.4, by meaningful segmentation. An exception to this is when a reporting organization leases space for onsite renewable energy installations but does not own the system. In this case, energy generated by a third party should not be included in the calculation in 2.4. However, initiatives relating to leasing space should be reported under the Energy Aspect of the Disclosure on Management Approach.

204* Civil Society Organization

Energy efficiency management

Construction phase

A great deal of the environmental damage is caused by the way we do business. Governments have recognised this and are working to reverse some current trends. Achieving this will depend on rebalancing the focus of taxation – increasing taxes on economic negatives, such as pollutions, while reducing them on economic positives, such as labour. The European Union’s contribution to a balanced carbon world includes the Emissions Trading Scheme (ETS), which is a mechanism to cost the price of carbon (negative externality) into those industries that are the highest greenhouse gas (GHG) emitters. In the short term, carbon pricing will change the cost structure for many companies and the relative competitiveness of carbon-intensive business sectors. Over the long term, if unchecked, the changing climate could do severe damage to the economy, undermining the ability of pension funds and other long-term investors to finance their liabilities. While some commentators have argued that investors should

479 Business

Sustainability Topics for Sectors: What do stakeholders want to know?

CONSTRUCTION AND ENGINEERING, AND HOMEBUILDING

May 2013 Page 9 of 49

Sustainability Category

Topic Topic Specification (if available)

Explanation Reference(s)1 Constituency

preferentially invest in companies with low GHG emissions, the prudent investors will also consider the likelihood that the company will be required to reduce some or all of its GHG emissions, the timeframe over which the emission reductions are required, and the cost to the company of reducing or offsetting its emissions. Steel companies, for example, are faced with greater production costs as this sector is both energy- and emissions-intensive. More countries are adopting climate change legislation and pressure is mounting on emerging markets to curb carbon emissions. Those companies with a comprehensive strategy to reduce energy will be the most competitive going forward. In the EU, steel companies have significant challenges as a result of rising energy and carbon (permits for emissions i.e. carbon credits) costs. The sector has also been negatively impacted at the macro level. Softening demand in China’s construction industry led to a dramatic drop in steel prices in the last quarter of 2008.

EN5: Report actual energy savings for all assets in gigajoules (GJ) and kilowatt hours (kWh), using recognized conversion factors. • Calculate energy savings using like-for-like analysis, based on absolute consumption, as reported in EN3 and EN4. • For construction companies energy savings may be more qualitative than quantitative and should be reported under EN6. Year-on-year comparison of energy savings from some measures may not be appropriate due to the temporary nature of activity on construction sites, for

204* Civil Society Organization

Sustainability Topics for Sectors: What do stakeholders want to know?

CONSTRUCTION AND ENGINEERING, AND HOMEBUILDING

May 2013 Page 10 of 49

Sustainability Category

Topic Topic Specification (if available)

Explanation Reference(s)1 Constituency

example site offices and workers’ accommodation. • Reporting organizations involved in redevelopment should use internationally recognized standards, tools, and protocols for measuring and verifying energy savings from retrofit projects. Energy savings (against a defined baseline) that are expected as a result of improved design should be reported separately from savings actually achieved. Report relevant financial data, actual or estimated, such as money invested in conservation and efficiency improvements, and money saved through energy reduction initiatives. State methodology for calculations and estimations.

Energy efficiency of assets/buildings

Buildings' energy intensity

CRE 1: Building energy intensity is a useful measure of an asset owner or occupier’s aggregated energy consumption during the management and occupation phase of the building lifecycle. This Performance Indicator focuses on groups of buildings and is primarily intended to track changes in reporter’s assets over time.

204* Civil Society Organization

Energy reduction initiatives

EN6: Report existing initiatives to reduce the energy requirements of major products/product groups or services. Including: • Organization-wide energy efficiency initiatives in place to design new assets (buildings and infrastructure), and redevelop/retrofit existing assets (buildings only) to such standards. • Organization-wide energy management initiatives to manage existing buildings and construction sites efficiently. Organization-wide end user engagement initiatives (e.g., occupants and visitors) as implemented by design professionals, building or construction personnel and building operators.

204* Civil Society Organization

Sustainability Topics for Sectors: What do stakeholders want to know?

CONSTRUCTION AND ENGINEERING, AND HOMEBUILDING

May 2013 Page 11 of 49

Sustainability Category

Topic Topic Specification (if available)

Explanation Reference(s)1 Constituency

The potential for drastic reductions of the energy consumption in buildings is significant. With proven and commercially available technologies, the energy consumption in both new and old buildings can be cut by an estimated 30-50 percent without significantly increasing investment costs. Energy savings can be achieved through a range of measures including smart design, improved insulation, low-energy appliances, high efficiency ventilation and heating/cooling systems, and incentives to building users to conserve energy. As opposed to many other sectors, the buildings sector does not present a few big emission reduction options, but requires many small interventions in a very large number of buildings. Buildings are responsible for more than one third of total energy use and associated greenhouse gas emissions in society, both in developed and developing countries. Energy is mainly consumed during the use stage of buildings, for heating, cooling, ventilation, lighting, appliances, etc. A smaller percentage, normally 10-20%, of the energy consumed is used for materials manufacturing, construction and demolition.

73, 572 Business

Energy efficiency is the fastest and cheapest way to meet energy needs. Energy efficient buildings offer benefits to developers, owners, tenants, and the greater communities. Developers gain a competitive advantage through higher premiums—such as lower energy bills, brand value, health benefits, rebates, and tax credits—that efficient buildings offer.

387 Civil Society Organization

Sustainability Topics for Sectors: What do stakeholders want to know?

CONSTRUCTION AND ENGINEERING, AND HOMEBUILDING

May 2013 Page 12 of 49

Sustainability Category

Topic Topic Specification (if available)

Explanation Reference(s)1 Constituency

Why Building Efficiency is Critical for India: Rapid Urbanization, Energy Security, Creating Green Jobs, , Reducing Power Cuts and Addressing Climate Change

Companies that respond well to new technology developments such as low-energy, passive and plus-energy buildings are likely to remain at the forefront of this industry following increasing legislative pressure in the energy efficiency area.

460 Financial Markets & Information Users

EN5: Report actual energy savings for all assets in gigajoules (GJ) and kilowatt hours (kWh), using recognized conversion factors. • Calculate energy savings using like-for-like analysis, based on absolute consumption, as reported in EN3 and EN4. • For construction companies energy savings may be more qualitative than quantitative and should be reported under EN6. Year-on-year comparison of energy savings from some measures may not be appropriate due to the temporary nature of activity on construction sites, for example site offices and workers’ accommodation. • Reporting organizations involved in redevelopment should use internationally recognized standards, tools, and protocols for measuring and verifying energy savings from retrofit projects. Energy savings (against a defined baseline) that are expected as a result of improved design should be reported separately from savings actually achieved. Report relevant financial data, actual or estimated, such as money invested in conservation and efficiency improvements, and money saved through

204* Civil Society Organization

Sustainability Topics for Sectors: What do stakeholders want to know?

CONSTRUCTION AND ENGINEERING, AND HOMEBUILDING

May 2013 Page 13 of 49

Sustainability Category

Topic Topic Specification (if available)

Explanation Reference(s)1 Constituency

energy reduction initiatives. State methodology for calculations and estimations.

energy consumption, Sustainability in buildings and civil engineering works

317 Mediating Institution

Water consumption

Assets/buildings' water intensity

CRE 2: Building water intensity is a useful measure of an asset owner or occupier’s aggregated water consumption during the management and occupation phase of the building lifecycle. This Performance Indicator focuses on groups of buildings and is primarily intended to track changes in reporters’ assets over time.

204* Civil Society Organization

Groundwater extraction

EN9: Reporting organizations should differentiate withdrawal from groundwater sources that are recharged and non-recharged. Differentiate withdrawal from groundwater sources that are recharged and non-recharged.

204* Civil Society Organization

Water consumption, reuse and recycling during assets/buildings' life cycle

water consumption, Sustainability in buildings and civil engineering works

317 Mediating Institution

Water (in m3) used per amount (e.g. in tonnes) of product manufactured Groundwater consumption in m3 Waste effluent water in cubic meters

153 Financial Markets & Information Users

EN DMA - EN8, EN9, EN10: Policy and practices on water use management through all relevant stages of the life

204* Civil Society Organization

Sustainability Topics for Sectors: What do stakeholders want to know?

CONSTRUCTION AND ENGINEERING, AND HOMEBUILDING

May 2013 Page 14 of 49

Sustainability Category

Topic Topic Specification (if available)

Explanation Reference(s)1 Constituency

cycle. Policy and practices on the management of water quality through all relevant stages of the lifecycle. Policy and practices on drainage and discharge of water. Total water withdrawal (consumption) by source should be consistent with the reporting organization’s reporting boundary for water. This should cover all water purchased and sourced, and the reporting organization may itemise water reallocated (preferably metered) to other parties who are the end user. Report actions to mitigate and reduce water consumption, including reuse and recycling solutions, and quantify water savings as a result of these actions.Report total volume of water recycled/reused linked to metered utility data.

Water consumption, reuse and recycling during construction

Water consumption in m3 153 Financial Markets & Information Users

EN DMA - EN8, EN9, EN10: Policy and practices on water use management through all relevant stages of the life cycle. Policy and practices on the management of water quality through all relevant stages of the lifecycle. Policy and practices on drainage and discharge of water. Total water withdrawal (consumption) by source should be consistent with the reporting organization’s reporting boundary for water. This should cover all water purchased and sourced, and the reporting organization may itemise water reallocated (preferably metered) to other parties who are the end user. Report actions to mitigate and reduce water consumption, including reuse

204* Civil Society Organization

Sustainability Topics for Sectors: What do stakeholders want to know?

CONSTRUCTION AND ENGINEERING, AND HOMEBUILDING

May 2013 Page 15 of 49

Sustainability Category

Topic Topic Specification (if available)

Explanation Reference(s)1 Constituency

and recycling solutions, and quantify water savings as a result of these actions. Report total volume of water recycled/reused linked to metered utility data.

Water regime impacts (surface water and groundwater)

changes in the water regime (surface water, subsurface water and groundwater), Sustainability in buildings and civil engineering works

317 Mediating Institution

Impact on surface drainage Environmental performance of buildings

315 Mediating Institution

Biodiversity and habitat management

Impacts on biodiversity

area of habitat created/destroyed, affected animal and vegetal species, implementation and monitoring of species conservation measures, Sustainability in buildings and civil engineering works

317 Mediating Institution

local impacts on biodiversity and ecology (flora and fauna), Environmental performance of buildings

315 Mediating Institution

EN DMA - EN12: Policy and practices on mitigation of adverse biodiversity impacts including, among others, new construction and management activities. Policy and practices on avoiding selection of biologically diverse sites. Identify significant impacts on biodiversity associated with activities, products, and services of the reporting organization, including both direct impacts as well as indirect impacts (e.g., in the supply chain) including marine and aquatic biodiversity as well as land biodiversity. Include Light pollution and reflection; For example, spilled light from construction zones and

204* Civil Society Organization

Sustainability Topics for Sectors: What do stakeholders want to know?

CONSTRUCTION AND ENGINEERING, AND HOMEBUILDING

May 2013 Page 16 of 49

Sustainability Category

Topic Topic Specification (if available)

Explanation Reference(s)1 Constituency

parking lots which may impact breeding grounds or resting areas; highly reflective towers which may affect bird flight

Restoration or protection of habitats

EN13: Protected or restored habitats should also include: • Habitats that are not owned or controlled by the reporting organization (e.g., adjacent areas of open space or parkland which may be owned by a public authority). • The enhancement (e.g., reintroduction of species) and creation (e.g., green roofs or replanting vegetation on site) of diverse and biodiversity sensitive habitats.

204* Civil Society Organization

Emissions to air A great deal of the environmental damage is caused by the way we do business. Governments have recognised this and are working to reverse some current trends. Achieving this will depend on rebalancing the focus of taxation – increasing taxes on economic negatives, such as pollutions, while reducing them on economic positives, such as labour. The European Union’s contribution to a balanced carbon world includes the Emissions Trading Scheme (ETS), which is a mechanism to cost the price of carbon (negative externality) into those industries that are the highest greenhouse gas (GHG) emitters. In the short term, carbon pricing will change the cost structure for many companies and the relative competitiveness of carbon-intensive business sectors. Over the long term, if unchecked, the changing climate could do severe damage to the economy, undermining the ability of pension funds and other long-term investors to finance their liabilities. While some commentators have argued that investors should

479 Business

Sustainability Topics for Sectors: What do stakeholders want to know?

CONSTRUCTION AND ENGINEERING, AND HOMEBUILDING

May 2013 Page 17 of 49

Sustainability Category

Topic Topic Specification (if available)

Explanation Reference(s)1 Constituency

preferentially invest in companies with low GHG emissions, the prudent investors will also consider the likelihood that the company will be required to reduce some or all of its GHG emissions, the timeframe over which the emission reductions are required, and the cost to the company of reducing or offsetting its emissions. Steel companies, for example, are faced with greater production costs as this sector is both energy- and emissions-intensive. More countries are adopting climate change legislation and pressure is mounting on emerging markets to curb carbon emissions. Those companies with a comprehensive strategy to reduce energy will be the most competitive going forward. In the EU, steel companies have significant challenges as a result of rising energy and carbon (permits for emissions i.e. carbon credits) costs. The sector has also been negatively impacted at the macro level. Softening demand in China’s construction industry led to a dramatic drop in steel prices in the last quarter of 2008.

Total CO2, NOx, SOx, VOC emissions in million tonnes

153 Financial Markets & Information Users

Emissions to air - Fugitive emissions

Dust dust emissions, Sustainability in buildings and civil engineering works

317 Mediating Institution

EN DMA: Policy and practices on reducing fugitive emissions. For example, dust

204* Civil Society Organization

Sustainability Topics for Sectors: What do stakeholders want to know?

CONSTRUCTION AND ENGINEERING, AND HOMEBUILDING

May 2013 Page 18 of 49

Sustainability Category

Topic Topic Specification (if available)

Explanation Reference(s)1 Constituency

Emissions to air - GHG emissions

In construction and use of assets/buildings

Environmental performance of buildings -- Carbon Metric of a building Environmental performance of buildings -- Carbon Metric of a building This International Standard identifies and describes aspects of sustainability and sustainable development to be taken into account in the use and development of sustainability indicators for assessing the sustainability performance of new or existing civil engineering works in their design, construction, use, maintenance and deconstruction phases. These sustainability indicators and core set of indicators form a basis for the suite of ISO TC59 standards intended to address specific issues and aspects of sustainability relevant to construction works. The issue of sustainable development is broad and of global concern, and, as such, involves all communities and interested parties. Both current and future needs define the extent to which economic, environmental and social aspects are considered in a sustainable development process. This draft deals with GHG only

316 Mediating Institution

EN18: This Performance Indicator is CORE for the construction and real estate sector

204* Civil Society Organization

greenhouse gases emissions, reduction of greenhouse gases emissions,

317 Mediating Institution

Sustainability Topics for Sectors: What do stakeholders want to know?

CONSTRUCTION AND ENGINEERING, AND HOMEBUILDING

May 2013 Page 19 of 49

Sustainability Category

Topic Topic Specification (if available)

Explanation Reference(s)1 Constituency

Sustainability in buildings and civil engineering works

GHG emissions in the following three areas: materials manufacture, construction and operation. Globally, buildings account for a significant proportion of our GHG emissions and increasing attention is being paid to the part that the construction industry can play in helping to reduce these.

156 Business

EN DMA - CRE3-CRE4: Policy on carbon management, including policy position on carbon offsetting. Greenhouse gas emissions intensity is a useful measure of an asset owner or occupier’s aggregated greenhouse gas emissions during the management and occupation phase of the building lifecycle. This Performance Indicator focuses on groups of buildings and is primarily intended to track changes in reporters’ assets over time. Construction activity contributes to greenhouse gas emissions globally, and increasing attention is being paid to the part the sector can play in helping to reduce emissions. This Performance Indicator applies to organizations involved in construction projects and is intended to identify greenhouse gas emissions from Scope 1, Scope 2 and Scope 3 of the GHG Protocol.

204* Civil Society Organization

Drainage and water discharges

EN DMA - EN21: Policy and practices on drainage and discharge of water. For example: Sustainable Urban Drainage Systems; enabling reuse of discharged water. Construction sites may be the source of pollution from surface runoff. The quality of surface runoff discharges is particularly relevant for users of water who are outside

204* Civil Society Organization

Sustainability Topics for Sectors: What do stakeholders want to know?

CONSTRUCTION AND ENGINEERING, AND HOMEBUILDING

May 2013 Page 20 of 49

Sustainability Category

Topic Topic Specification (if available)

Explanation Reference(s)1 Constituency

of the reporting boundary (e.g., waters used for irrigation of crops; water that flows to sensitive natural systems such as wetlands).

Hazardous and nonhazardous waste

Construction, demolition and excavation

Waste Scope I: Total waste in tonnes Waste Scope II: Percentage of total waste which is recycled Waste Scope III: Hazardous waste total in tonnes total

153 Financial Markets & Information Users

EN DMA - EN22: Policy and practices that promote waste avoidance as the first step in the waste hierarchy. Report percentage of waste by disposal method, significant waste type and waste diverted from landfill. Construction companies should report significant waste types (hazardous and nonhazardous) from construction, demolition and excavation (CD&E) activities .There are three major types of wastes: solid, liquid and gaseous. Wastes are often broadly categorized as hazardous (waste that poses substantial or potential threats to public health or the environment) or nonhazardous (waste that does not fall within the hazardous waste classification). Demolition waste: Unwanted material arising from the demolition or stripout of an existing structure. Excavation waste: Unwanted material resulting from excavation activities, such as reduced level dig and site preparation and leveling, and the excavation of foundations, basements, tunnels, and service trenches, typically consisting of soil and stones. Construction waste: Any other unwanted material produced at the construction site, which is not classified as Demolition or Excavation waste.

204* Civil Society Organization

Sustainability Topics for Sectors: What do stakeholders want to know?

CONSTRUCTION AND ENGINEERING, AND HOMEBUILDING

May 2013 Page 21 of 49

Sustainability Category

Topic Topic Specification (if available)

Explanation Reference(s)1 Constituency

Waste generation and management

Disposal methods

production and segregation of waste for disposal, Environmental performance of buildings

315 Mediating Institution

waste generated, disposal method, waste minimization, Sustainability in buildings and civil engineering works

317 Mediating Institution

Transports' environmental impacts

Assets/buildings' life cycle

EN DMA - EN29: Policy and practices to avoid or reduce transport of materials and people to and from assets. Policy and practices on the management of transport impacts during construction. The impacts of transportation occur throughout all lifecycle stages of assets, for example: traffic disruption and management during construction and operation; transportation of materials, workers, occupants and visitors to and from assets. Significant environmental impact of transportation also includes the transportation of construction materials and equipment, which may, additionally, give rise to community impacts such as traffic disruption and congestion. Such impacts and associated mitigation measures should be reported under SO9. Transportation impact mitigation can include, for example, green travel plans, and tracking modal patterns and modal shifts which result from transport impact mitigation initiatives.

204* Civil Society Organization

Land degradation, contamination and remediation

EN DMA - CRE 5: Land is sometimes adversely affected or made unproductive due to contamination. Contamination may occur as a result of construction and real estate activities, or may have occurred as a result of prior use or activities by an unrelated entity. Contamination may also be of natural origin.

204* Civil Society Organization

Sustainability Topics for Sectors: What do stakeholders want to know?

CONSTRUCTION AND ENGINEERING, AND HOMEBUILDING

May 2013 Page 22 of 49

Sustainability Category

Topic Topic Specification (if available)

Explanation Reference(s)1 Constituency

Contamination may affect soil quality, water quality, human health or other environmental or ecological receptors. Contamination may be solid, liquid, or gas. In cases where contamination has occurred as a result of prior activities, entities in this sector frequently conduct assessment, risk management and/or remediation activities, which make the land suitable for existing or new purposes and uses. Sometimes previously uncontaminated land may be judged to be contaminated due to a proposed change to a more sensitive use, or the introduction of more sensitive environmental receptors. Sometimes construction activities can cause sufficient disturbance to render the existing condition of the land contaminative through the introduction of new types of pollution. When remediation occurs, it is typically to a standard suitable for the existing or nominated end use of the land, for example, residential, industrial or commercial use. Policy on planning for, and/or managing, land assessment and remediation. Policy on management and/or remediation of contamination or harmful materials such as asbestos, lead, chromium, mercury and manmade mineral fibers. Policy and practices to identify risk of contamination and the containment or remediation strategies deployed. The type and extent of contamination reported under this Performance Indicator is influenced by the core business of the reporting organization. This Performance Indicator allows report readers to assess the stock of potentially contaminated land and that which is currently being

Sustainability Topics for Sectors: What do stakeholders want to know?

CONSTRUCTION AND ENGINEERING, AND HOMEBUILDING

May 2013 Page 23 of 49

Sustainability Category

Topic Topic Specification (if available)

Explanation Reference(s)1 Constituency

assessed, managed and/or remediated to an appropriate standard, and the annual changes in both of these.

Landscape impacts

visual impact, restoration of affected areas, Sustainability in buildings and civil engineering works

317 Mediating Institution

Noise Construction and end asset use

noise level, Sustainability in buildings and civil engineering works

317 Mediating Institution

Soil quality soil quality changes, Sustainability in buildings and civil engineering works

317 Mediating Institution

Social Employment practices

Casual workers without a written contract

LA DMA: Policy and practices on employment of daily workers and casual workers who are employed without a formal (written) contract. For example, how the company avoids employees not having a formal (written) contract by ensuring that all employees and contractors receive a written contract in a language and format they understand, as well as mechanisms in place to ensure that illiterate employees and contractors, and those with disabilities, are able to understand the conditions of contract.

204* Civil Society Organization

Contractors and subcontractors in the workforce

LA DMA - LA1: Policy and practices on outsourcing of work to contractors and subcontractors and recruitment of employees and supervised workers. Total workforce by employment type, employment contract, and region, broken down by gender. This Performance Indicator is particularly relevant for the sector because of its labor intensive nature and because of the dependence on contractors and sub-contractors to deliver projects and building services (and the potential use of vulnerable

204* Civil Society Organization

Sustainability Topics for Sectors: What do stakeholders want to know?

CONSTRUCTION AND ENGINEERING, AND HOMEBUILDING

May 2013 Page 24 of 49

Sustainability Category

Topic Topic Specification (if available)

Explanation Reference(s)1 Constituency

workers). In some geographical contexts, there are different practices in employment types and contracts (e.g., use of agents or intermediaries, seasonal employment, gender issues) that may be considered when reporting on this Performance Indicator. Include contractors and sub-contractors that deliver projects and building services (i.e., excluding others in the supply chain such as building materials providers), as part of the total workforce. Report the total workforce broken down by employees, supervised workers (including contractors and sub-contractors delivering projects and building services), gender and other diversity groups, and contract type (full-time and part-time workers).

Subcontracting Percentage of total work done by subcontractors and/or outsourced to third parties

153 Financial Markets & Information Users

Diversity and equal opportunity

EMPLOYMENT DIVERSITY AND EQUAL OPPORTUNITY Aspect: EMPLOYMENT: (1) Total Workforce by Nationality (2) Category of employment by nationalities (3) Recruitment procedure of employees by nationalities (construction companies employs large number of skilled, semi-skilled and unskilled employees, many are exploited due to lack of education and exposure)(4)Type of Employment terms and Benefit structures offered for different nationalities for same job (from my experience there are human rights violations taking place in this area).

90 Business

Sustainability Topics for Sectors: What do stakeholders want to know?

CONSTRUCTION AND ENGINEERING, AND HOMEBUILDING

May 2013 Page 25 of 49

Sustainability Category

Topic Topic Specification (if available)

Explanation Reference(s)1 Constituency

Aspect: DIVERSITY & EQUAL OPPORTUNITY: (1) Composition of Management staff and workforce structure by nationalities (2) Equal opportunity factor & percentage in total employment (in certain construction companies only certain nationalities gets promoted to higher positions and higher remunerative structure, though the organization operates by employing majority from some other nations. Equally qualified or higher qualified people with equal experience are left behind) (3) Salary structure by nationalities. Aspect: SOCIETY: (1) Percentage of locals employed in different categories (this is to ensure that employment is created for local society also). Construction industry is one of the largest employer in Asia, especially in Middle East. Large companies who are signatories to UNGC manage their HR with basic human right violations, like; An Accountant working for a company with similar qualification and job responsibilities is discriminated against another one in salary, promotions and other benefit terms. Certain companies provide Recruiting Agencies fees for recruiting manpower, these payments are swindled by corruption by HR management and the recruiting agents are left scot free to take as much payment as is possible from skilled, semi-skilled and unskilled employees. Although Human rights watch has raised some issues, this remains as common ill factor guiding employment in construction industry. GRI reporting, if applied in construction industry, should be able to arrest this trend.

Sustainability Topics for Sectors: What do stakeholders want to know?

CONSTRUCTION AND ENGINEERING, AND HOMEBUILDING

May 2013 Page 26 of 49

Sustainability Category

Topic Topic Specification (if available)

Explanation Reference(s)1 Constituency

GRI should maintain close interaction with Departments of Quality Management in all countries and ensure that GRI reporting is mandatory for companies to get involved in Governments supported development programs. This will discourage unscrupulously operated business houses from becoming part of any national development and promote bad practices in countries they operate. Also there must be one Authorized/trained GRI practitioner in a company (CSR) authorized to verify the reports and confirm compliance of GRI requirements. An arguable suggestion is to hold the GRI practitioner (CSR) legally responsible for wrong disclosures. Organizational Stakeholders must be imparted free GRI training in selected locations of different continents.

Equitable labor conditions for women

LA DMA - LA 13 - LA14: Due to differences in cultural norms and workforce participation by gender, wage gaps in the sector by gender are particularly relevant. Policy on gender equality including how gender is incorporated into procurement policy and plans. Policies and practices regarding gender equality in the workplace. Policies and practices regarding gender equality in the community. Policies and practices regarding gender equality in relation to customers. Policies and practices regarding gender equality in relation to investment.

204* Civil Society Organization

HR DMA - HR4: In male dominated industries, there is a risk of gender discrimination. • Policies and practices for recruitment and career development to avoid

204*

Civil Society Organization

Sustainability Topics for Sectors: What do stakeholders want to know?

CONSTRUCTION AND ENGINEERING, AND HOMEBUILDING

May 2013 Page 27 of 49

Sustainability Category

Topic Topic Specification (if available)

Explanation Reference(s)1 Constituency

discrimination. For example, training and awareness programs and grievance mechanisms aimed to combat discrimination. There is a risk of gender discrimination in the sector. This Performance Indicator can demonstrate the effectiveness of policies, training and awareness, and grievance mechanisms aimed to combat discrimination. Incidents of discrimination should also be identified by gender, disability, age and sexual orientation.

There are many women in temporary or casual work involving irregular or unusual hours or hired on a contract or piece-rate basis. They are paid less than men and normally are not covered by labour and social security regulations nor by the collective agreements. In the construction industry, women work very hard and long hours carrying bricks and mortar, breaking stones, pouring concrete and doing earth work. They generally continue to be regarded as unskilled even after they have worked in the industry many years. When they are young, they are exploited and harassed and when they are old they are told to leave. Statement on website

60, 61 Labor

Working conditions

Provision of worker accommodation and amenities

LA DMA: Policy on worker accommodation and amenities provision (where necessary), and the organizational responsibility for this provision. For example, where regulatory requirements for the provision of accommodation have been exceeded.

204* Civil Society Organization

Sustainability Topics for Sectors: What do stakeholders want to know?

CONSTRUCTION AND ENGINEERING, AND HOMEBUILDING

May 2013 Page 28 of 49

Sustainability Category

Topic Topic Specification (if available)

Explanation Reference(s)1 Constituency

Occupational health and safety management

Operational health and safety risks

The heavy construction sector includes companies engaged in the construction of commercial and residential buildings and infrastructure, as well as providers of services to construction companies. Companies are increasingly challenged by issues in such areas as operational health safety, energy efficiency and the responsible use of resources.

460 Financial Markets & Information Users

Occupational health & safety risks are high, requiring strict management practices to reduce the injury rate among employees and external contractors.

460 Financial Markets & Information Users

Education and training on health and safety issues

LA8 - LA10: For construction companies, this Performance Indicator is of particular relevance due to the reliance on migrant and moveable labor in the industry, and the need to engage migrant workers on relevant health and safety issues. It is also of particular relevance because construction companies’ activities are more hazardous than those of the real estate sector. Report whether education and training is provided in a manner which is understood by all program recipients, for example in appropriate languages or pictorial format.

204* Civil Society Organization

Employees, contractors and subcontractors incidents, injuries and fatalities

LA DMA - LA7: Rates of injury, occupational diseases, lost days, and absenteeism, and total number of work-related fatalities, by region and by gender. This Performance Indicator is of particular relevance to the sector due to the dangerous nature of project construction work, and some building services work, that can lead to high incident, injury, occupational diseases and fatality rates. For real estate reporting organizations,

204* Civil Society Organization

Sustainability Topics for Sectors: What do stakeholders want to know?

CONSTRUCTION AND ENGINEERING, AND HOMEBUILDING

May 2013 Page 29 of 49

Sustainability Category

Topic Topic Specification (if available)

Explanation Reference(s)1 Constituency

this Performance Indicator is of particular relevance due to the use of contractors and sub-contractors for potentially hazardous activities such as interior building and façade cleaning, as well as handling potentially hazardous materials. Dangerous occurrences A work related event with the potential to cause injury, disability or disease to workers or the public. Sometimes referred to as ‘near misses’. Incidents, injuries or fatalities. Hazardous and harmful events Dangerous occurrences (including near misses), injuries, occupational diseases, occupational disabilities and fatalities arising from operations on-site, building maintenance, and worker commuting to and from their workplace(s). Include contractors, visitors and members of the public.

Fatalities & Injuries Total number of fatalities in relation to FTEs Total number of injuries in reltation to FTEs

153 Financial Markets & Information Users

safety during construction, safety index, Sustainability in buildings and civil engineering works

317 Mediating Institution

Sustainability Topics for Sectors: What do stakeholders want to know?

CONSTRUCTION AND ENGINEERING, AND HOMEBUILDING

May 2013 Page 30 of 49

Sustainability Category

Topic Topic Specification (if available)

Explanation Reference(s)1 Constituency

Vocational training and apprenticeships, and re-employability of workforce

Training and qualification Average expenses on training per FTE

153 Financial Markets & Information Users

LA 10: Report relevant categories of training, including vocational training, apprenticeships and occupational health and safety training provided to workers (especially site management), either within or additional to a health and safety management system (see also CRE6).

204* Civil Society Organization

Migrant workers Human trafficking risks

Trafficking in persons, or human trafficking, involves the recruitment, transportation, transfer, harbouring or receipt of a person (a woman, man or a child), often over international borders but also frequently within the boundaries of a single country, for the purpose of exploitation. It is a widespread abuse, affecting developing countries, countries in transition and industrialized market economies alike. The majority of victims of human trafficking are between the ages of 18 and 24, with most having received a job offer prior to their departure

249 Mediating Institution

Labor and working conditions

Safe labour migration is a key driver of sustainable economic development in both sending and receiving countries. The protection of migrant workers is becoming an increasingly important issue for a number of global industries, as well as for home and host governments. Trafficking of workers, particularly women and girls, into global supply chains remains a significant reality, in part due to poorly regulated recruitment industries. Pockets

254, 437 Mediating Institution

Sustainability Topics for Sectors: What do stakeholders want to know?

CONSTRUCTION AND ENGINEERING, AND HOMEBUILDING

May 2013 Page 31 of 49

Sustainability Category

Topic Topic Specification (if available)

Explanation Reference(s)1 Constituency

of good and innovative practice in responsible recruitment and combating trafficking exist but have yet to be taken to scale. Over 215 million international migrants living outside their countries of origin play a vital role in the global economy. Recorded remittances received by developing countries, estimated to be US$325 billion in 2010, far exceed the volume of official aid flows and constitute more than 10 percent of gross domestic product (GDP) in many developing countries. The vast majority of migrants today are low-paid workers in industries ranging from apparel, electronics and construction to agriculture, hospitality, and domestic service. From the point of recruitment, through employment and to the point of return home, these workers are vulnerable to exploitation. Protection mechanisms to safeguard their rights continue to be wholly inadequate and access to legal remedy is poor in both host and home countries.

Management of migrant and foreign workers

LA DMA: For construction companies, this Performance Indicator is of particular relevance due to the reliance on migrant and moveable labor in the industry, and the need to engage migrant workers on relevant health and safety issues. It is also of particular relevance because construction companies’ activities are more hazardous than those of the real estate sector. Policy regarding costs and logistics for the return of foreign workers to their place of origin.

204*

Civil Society Organization

Sustainability Topics for Sectors: What do stakeholders want to know?

CONSTRUCTION AND ENGINEERING, AND HOMEBUILDING

May 2013 Page 32 of 49

Sustainability Category

Topic Topic Specification (if available)

Explanation Reference(s)1 Constituency

Recruitment and employment

Recruitment and employment of migrant workers Number of migrant workers employed Countries of origin Gender of workers Positions within company Length of contracts Recruitment channels Any fees for recruitment Passport retention Migrant workers both internal and external are a significant and growing feature of all company activities. There are over 200 million migrants in the world. They are found within nearly all business sectors and across all regions. Many migrant workers, particularly those working in unskilled jobs are subject to discrimination and are vulnerable to exploitation and abuse. For many migrants exploitation begins during recruitment. Exorbitant fees and other charges, often at usurous rates of interest can leave many migrant workers effectively bonded labour whatever the subsequent conditions of employment. Company due dilligence and reporting should therefore extend into the supply chain for labour.

253 Mediating Institution

Sustainability Topics for Sectors: What do stakeholders want to know?

CONSTRUCTION AND ENGINEERING, AND HOMEBUILDING

May 2013 Page 33 of 49

Sustainability Category

Topic Topic Specification (if available)

Explanation Reference(s)1 Constituency

Social impacts Burden on local infrastructure and services

load on local infrastructure (such as services and sewerage system) Environmental performance of buildings

315 Mediating Institution

Cultural heritage elements

job creation, effects in cultural heritage elements, Sustainability in buildings and civil engineering works

317 Mediating Institution

Political funding Contributions to political parties

SO6: This Performance Indicator is CORE for the construction and real estate sector. The purpose of this Indicator is to reflect the scale of the reporters’ engagement in political funding and to ensure transparency in political dealings and relationships with the reporting organization. Many countries have legislation that sets limits on official expenditure by parties and political candidates for campaigning purposes.

204* Civil Society Organization

Contributions to political parties Contributions to political parties as a percentage of total revenues

153 Financial Markets & Information Users

Corruption and conflict of interest

Public policies development

SO5: Report public policy participation that results in positive contribution to public policy development, and risks related to conflict of interest on regulatory and/or advisory organizations (e.g., those that approve planning and land use applications).

204* Civil Society Organization

Sustainability Topics for Sectors: What do stakeholders want to know?

CONSTRUCTION AND ENGINEERING, AND HOMEBUILDING

May 2013 Page 34 of 49

Sustainability Category

Topic Topic Specification (if available)

Explanation Reference(s)1 Constituency

Regulatory approval, procurement, inspection and certification processes

SO DMA: There is risk of corruption in the sector, particularly in relation to obtaining regulatory approval, procurement, inspection and certification processes. • Policies and practices to mitigate corruption risks, within the reporting organization and/or the supply chain. For example, transparency through cost plus contracts; auditing of risk management processes; the implementation of sector specific codes of conduct related to corruption; the use of integrity pacts or subscription to sector specific anti-corruption policy; disclosure of corruption cases in each country where the reporting organization is active.

204* Civil Society Organization

Anti-competitive bidding practices

Tender prices, cover prices and cartel price fixing

SO DMA: There is a risk of anti-competitive bidding practices within the construction sector through collusion to set tender prices, cover pricing and cartel price fixing. • Policies and procedures to identify and avoid anti-competitive behavior, within the reporting organization and/or the supply chain. For example, employee ‘ethics training’; company code of conduct; establishing an ethics committee or similar; making business ethics part of balanced score cards for managers

204* Civil Society Organization

Money laundering, bribery and corruption

Valuations and transactions

SO DMA: Policy or screening process in place to mitigate incidents of money laundering, bribery and corruption through real estate valuations and transactions. For example, screening criteria and training during tender processes for partners, suppliers, contractors and sub-contractors; initiatives o address corruption in the sector at the

204* Civil Society Organization

Sustainability Topics for Sectors: What do stakeholders want to know?

CONSTRUCTION AND ENGINEERING, AND HOMEBUILDING

May 2013 Page 35 of 49

Sustainability Category

Topic Topic Specification (if available)

Explanation Reference(s)1 Constituency

governmental level (local, national and international), and company level.

Land take and land use

land take, proportion of non-previously developed land used (to the total land take), proportion of protected land used (to the total land take), Sustainability in buildings and civil engineering works

317 Mediating Institution

changes in land use, Sustainability in buildings and civil engineering works

317 Mediating Institution

Land use rights The right to access the land is not restricted by a narrow interpretation of property rights. The rights‐holders have human rights, which may not include land‐ownership rights, partly because some countries do not recognize individual property rights, and partly because some people may not have legal title to the land on which they live or work, but may have customarily done so for years, if not generations. That aspect has huge significance for the landless and other rights are also involved. It affects those with land rights, and those who work on the land, such as sharecroppers, and those who use land seasonally, such as pastoralists or informal businesses common in many parts of Africa. These groups often correlate with those that are already the most vulnerable groups in society (e.g. due to gender, caste or age discrimination). Their not owning property rights does not mean they do not have rights – The impact on human rights is felt much before business operations begin – even when a company expresses its

255 Mediating Institution

Sustainability Topics for Sectors: What do stakeholders want to know?

CONSTRUCTION AND ENGINEERING, AND HOMEBUILDING

May 2013 Page 36 of 49

Sustainability Category

Topic Topic Specification (if available)

Explanation Reference(s)1 Constituency

intention to develop a project in a particular area, there are human rights implications, because of raised expectations within a community. The power asymmetry between State and communities, between private economic interests and individuals or groups, often becomes the determining factor in shaping the land ownership dilemma. Business, civil society, and governments have a common interest in developing a framework that prevents human rights abuses at all stages of business’ relationship with land – before acquisition, during acquisition, and after operations have commenced and, if necessary, concerning appropriate relocation, rehabilitation and compensation. The extraction of natural resources – oil, gas, and mining – has commanded considerable attention in the area of business and human rights, but other businesses – tourism, manufacturing, infrastructure projects, power plants, public highways, irrigation projects, and even urban office complexes and supermarkets require land.

Child labor HR DMA - HR6: Policy and practices for screening and monitoring of child labor risks by contractors and subcontractors in all stages of the lifecycle (including construction materials). For example: risks identified to children on or near construction sites (such as risk of injury, exploitation); employee screening by a medical practitioner to determine age; including child labor clauses in contracts with suppliers/ vendors to allow for auditing. • Practices in regards to workers’ children. For example: education and health and safety monitoring; child protection, mother and child health; on site crèche

204* Civil Society Organization

Sustainability Topics for Sectors: What do stakeholders want to know?

CONSTRUCTION AND ENGINEERING, AND HOMEBUILDING

May 2013 Page 37 of 49

Sustainability Category

Topic Topic Specification (if available)

Explanation Reference(s)1 Constituency

and child minding facilities. There is risk of child labor in the manufacture of building materials (e.g., brick kilns and quarry mines), and in the building services industry.

Bonded labor HR DMA: There is a risk of bonded labor in the sector, including practices such as the removal of passports and identification papers, withholding pay and compulsory overtime

204* Civil Society Organization

End user health, safety and security

Health & Safety Aspects of Products Spending on product safety per unit produced corporate

153 Financial Markets & Information Users

PR DMA - PR1: Policies, practices and training relating to end user health, safety and security during all stages of the lifecycle. For example, operational health and safety policies including fire and elevator safety; disabled access; use of established standards such as OHSAS 18001; end user training on health, safety and security practices, including asset and site security arrangements; disaster management and emergency procedures. See also Disclosure on Management Approach for Environment, and EN26.

204* Civil Society Organization

Asset/building labeling and certification

Financial value Once a property’s “sustainability” is assessed, costs and benefits must be identified, the financial implications of the property’s sustainable costs-benefits assessed, financial model inputs selected, and a detailed risk analysis conducted. While strong progress has been made, the real estate industry is struggling to quantify and articulate the value of sustainable property investment. Most investors, and many tenants, today understand that sustainable

120, 376 Business

Sustainability Topics for Sectors: What do stakeholders want to know?

CONSTRUCTION AND ENGINEERING, AND HOMEBUILDING

May 2013 Page 38 of 49

Sustainability Category

Topic Topic Specification (if available)

Explanation Reference(s)1 Constituency

properties can generate health and productivity benefits, recruiting and retention advantages, and reduce risks, but struggle to integrate benefits beyond cost savings into their valuations and underwriting. Measuring and understanding sustainable property performance is the foundation of financial analysis, valuation and underwriting. Sustainable property definitions and certifications play an important role in the financial assessment of sustainable properties but they leave out critical performance information necessary to sustainable property financial analysis and valuation. (Existing green building certifications measure environmental outcomes, not financial outcomes, and thus cannot be the sole basis for underwriting from a financial perspective.) GFBC`s Sustainable Property Performance Framework, a new framework for organizing and evaluating sustainable property performance information to directly support financial analysis, valuation and underwriting addresses this deficit by presenting a section on “Building Performance” which provides some guidance for measuring a building`s “sustainability” and clarifies the links to market and financial performance and by introducing Market Performance, the “missing link” of sustainable property performance required to assess the financial implications of sustainable property investment.

Health and safety regulations and codes

PR2: Report incidents of non-compliance with regulations and voluntary codes. For example: fire codes and standards; mechanical systems (such as elevator and escalator maintenance and prevention of bacterial

204* Civil Society Organization

Sustainability Topics for Sectors: What do stakeholders want to know?

CONSTRUCTION AND ENGINEERING, AND HOMEBUILDING

May 2013 Page 39 of 49

Sustainability Category

Topic Topic Specification (if available)

Explanation Reference(s)1 Constituency

infections including Legionnaire’s disease); pest, insect and rodent control; accessibility standards (including during normal operation, and in the case of emergency); indoor air quality standards, including Volatile Organic Compounds (VOC) and mold; indoor water quality standards; hazardous substances and contaminants, including asbestos, PCBs, pesticides, herbicides, formaldehyde; disease control and pandemic management; materials standards.

Sustainable building standards, certification, rating and labeling schemes

CRE 8: This Performance Indicator covers product and service information (e.g., building and infrastructure components and materials). CRE8 specifically covers labeling and certification for new construction, management and redevelopment of assets. If CRE8 covers all of a reporting organization’s disclosure requirements on product information, it is possible that PR3 may be considered not material. Product and service information/labeling relates to voluntary and mandatory asset labels and certificates (including sustainable building certification, rating and labeling schemes) and health and safety certificates.

204* Civil Society Organization

Asset design and redevelopment/retrofit

Environmental impact mitigation

EN DMA - EN26: Good asset design and redevelopment/retrofit can mitigate environmental and end user human health impacts. The effective management of existing buildings is also fundamental to mitigate impacts on the environment and end users. Organization-wide environmental initiatives in place to design new assets (buildings and infrastructure) which minimize environmental and end user human health impacts, and to redevelop/retrofit existing assets

204* Civil Society Organization

Sustainability Topics for Sectors: What do stakeholders want to know?

CONSTRUCTION AND ENGINEERING, AND HOMEBUILDING

May 2013 Page 40 of 49

Sustainability Category

Topic Topic Specification (if available)

Explanation Reference(s)1 Constituency

(buildings only) to such standards. Policies and practices to mitigate environmental and end user human health impacts during all stages of the lifecycle.

Building design Mitigation of impacts on the environment and on end users' health

EN DMA - EN26: Good asset design and redevelopment/retrofit can mitigate environmental and end user human health impacts. The effective management of existing buildings is also fundamental to mitigate impacts on the environment and end users. Organization-wide environmental initiatives in place to design new assets (buildings and infrastructure) which minimize environmental and end user human health impacts, and to redevelop/retrofit existing assets (buildings only) to such standards. Policies and practices to mitigate environmental and end user human health impacts during all stages of the lifecycle.

204* Civil Society Organization

Resettlement and displacement

Voluntary and/or involuntary resettlement

SO DMA - CRE 7: Including resettlement and displacement, and how responsibilities relating to resettlement are shared with other organizations. For example, transparency through cost plus contracts; auditing of risk management processes; the implementation of sector specific codes of conduct related to corruption; the use of integrity pacts or subscription to sector specific anti-corruption policy; disclosure of corruption cases in each country where the reporting organization is active. Number of persons voluntarily and involuntarily displaced and/or resettled by development, broken down by project

204* Civil Society Organization

Sustainability Topics for Sectors: What do stakeholders want to know?

CONSTRUCTION AND ENGINEERING, AND HOMEBUILDING

May 2013 Page 41 of 49

Sustainability Category

Topic Topic Specification (if available)

Explanation Reference(s)1 Constituency

Other Corporate governance

Gender participation on governance bodies

GOVERNANCE / EUROPE: boardroom lady boom: is it possible without quotas? On 22 June, the CapitalCom agency published its 2011 survey into the boardroom gender mix of CAC 40 companies, with fairly encouraging results: the proportion of women on the board has doubled in recent years, from 10.5% in 2009 to 20.8% in 2011. In January, the French parliament adopted legislation imposing quotas for the proportion of women on the board of major companies. Under the measures, the development of female board membership is mandatory and gradual: 20% for listed groups, public companies of an administrative, industrial and commercial nature by January 2014, rising to 40% by January 2017. The law also stipulates that companies with no women present on their board must appoint at least one within six months of it being on the statute books (voted on 13 January 2011). In France, some 2,000 companies are affected (the 650 largest listed firms and companies with more than 500 employees and those generating sales in excess of €50bn). In terms of sanctions for noncompliance, appointments that run counter to the parity principles are to be declared null and void and attendance fees are to be temporarily suspended. At the European level and at the instigation of the Vice-president of the European Commission, Viviane Reding, the European parliament will decide in March 2012 on whether to adopt common legislation on this matter (a

389 Financial Markets & Information Users

Sustainability Topics for Sectors: What do stakeholders want to know?

CONSTRUCTION AND ENGINEERING, AND HOMEBUILDING

May 2013 Page 42 of 49

Sustainability Category

Topic Topic Specification (if available)

Explanation Reference(s)1 Constituency

mandatory proportion of women in decision-making positions of 30% in 2015 and 40% in 2020). This will depend on the level of improvement seen based on the selfregulation of European companies, in accordance with the equality initiative adopted by the European Commission in December 2010 and the European parliament resolution of 17 January 2008 calling for the Commission and member states to promote a balance between women and men on company boards, particularly where member states are shareholders. Europe as a whole illustrates the degree of hesitation between a soft-law approach and conventional legislation (quotas in this instance), but it is clear from the experience at national level that the second method tends to get much better results.

New assets versus retrofits, upgrades, and refurbishments of buildings

1. Strategy and Analysis Describe the approach to the construction of new assets versus retrofits, upgrades, and refurbishments, and the effect this has on impacts, risks, and opportunities

204* Civil Society Organization

Screening of contractors, subcontractors and supplier

Human rights HR DMA: There is a risk of human rights violations in the supply chain during the investment and procurement of goods and services (including labor), due to the complexity of the supply chain and the reliance on contractors and subcontractors. • Policy and criteria for the screening of contractors and sub-contractors. For example, details of any monitoring and follow up activity, and the mechanisms in place to address incidences of non-compliance against legal requirements and

204* Civil Society Organization

Sustainability Topics for Sectors: What do stakeholders want to know?

CONSTRUCTION AND ENGINEERING, AND HOMEBUILDING

May 2013 Page 43 of 49

Sustainability Category

Topic Topic Specification (if available)

Explanation Reference(s)1 Constituency

screening criteria; screening on whether hiring fees (visa, transportation) are passed on to the supervised workers or contractors recruited, withholding of and infrequent payment of wages and withholding of identification documents; mechanisms in place to address incidences of non-compliance against these legal requirements and screening criteria; grievance complaints mechanisms (rights violations). • Practices to monitor (e.g., audits) and train employees and contractors in compliance with labor and international human rights standards (including enforcement). For example, training of employees managing building services and investment processes in screening for labor and human rights standards (such as gender, ethnic and disability sensitivity).

Occupational health and safety management

LA DMA - CRE 6: Policies and procedures with regard to the provision of health and safety requirements in agreements for contractors and subcontractors. • Policies and procedures requiring prequalification of suppliers and contractors relating to health and safety, and including the existence of formal agreements and health and safety due diligence for new projects and investments. An Occupational Health & Safety (OH&S) management system is a business approach to minimize occupational health and safety risks. The system defines procedures, practices and policies to manage occupational health and safety.

204* Civil Society Organization

Sustainability Topics for Sectors: What do stakeholders want to know?

CONSTRUCTION AND ENGINEERING, AND HOMEBUILDING

May 2013 Page 44 of 49

Sustainability Category

Topic Topic Specification (if available)

Explanation Reference(s)1 Constituency

Construction and Engineering – Specific Topics

Environmental Waste generation and management

Construction and demolition materials management

Wood, shingle, concrete & asphalt and gypsum drywall recycling Construction and demolition waste constitutes the largest waste stream by weight in the European Union. Disposing of these waste materials is presenting increased difficulties in many parts of Europe. Increased emphasis needs to be placed on waste minimization and recycling.

114 Business

Waste arisings for all construction works undertaken, waste sent to landfill/incineration without energy recovery total construction cost, materials reused on site Inappropriate waste management has high environmental and health risks. Reporting can help them become more conscious and efficient.

155 Business

Energy efficiency management

Construction phase

The heavy construction sector includes companies engaged in the construction of commercial and residential buildings and infrastructure, as well as providers of services to construction companies. Companies are increasingly challenged by issues in such areas as operational health safety, energy efficiency and the responsible use of resources.

460 Financial Markets & Information Users

Social Occupational health and safety management

Dust management

Working through the site systematically, identify situations and jobs where exposure to dust occurs and document accordingly. Where detectable concentrations of one harmful component, crystalline silica have been confirmed, there is a need to assess the actual risk to employees from exposure to airborne respirable

87 Business

Sustainability Topics for Sectors: What do stakeholders want to know?

CONSTRUCTION AND ENGINEERING, AND HOMEBUILDING

May 2013 Page 45 of 49

Sustainability Category

Topic Topic Specification (if available)

Explanation Reference(s)1 Constituency

crystalline silica. This is performed through assessment of airborne crystalline silica and comparison of the result to the exposure standard. Frequency of health monitoring in regards to crystalline silica exposure will be determined by the results of personal dust exposure levels. For example, those who are potentially exposed to high levels of silica, health monitoring should include more frequent spirometry and medical examinations than those with low silica exposure. In all cases, if there are significant changes, further medical investigations should be conducted and controls reviewed. It is therefore essential that prior to employing someone, it is made known to them that the work environment is a silica resource and that medical monitoring will be undertaken. This should be advised in writing and a signed copy of this kept. Most employers and employees are aware that dusts in quarries can be a serious health hazard. Inhalable dust is made up of all dust sizes that can deposit throughout the respiratory tract. It can include larger particles that deposit in the upper airways (nose and throat), smaller particles that can penetrate the upper airways and deposit in the lungs (thoracic fraction) and finer particles that can penetrate the alveolar region or gas exchange region (respirable fraction). Dust may cause irritation and inflammation of the eyes, and aggravate pre-existing conditions. Repeated heavy contact to the skin may cause drying of the skin and can result in dermatitis, typically to the hands. Repeated exposure to the fine

Sustainability Topics for Sectors: What do stakeholders want to know?

CONSTRUCTION AND ENGINEERING, AND HOMEBUILDING

May 2013 Page 46 of 49

Sustainability Category

Topic Topic Specification (if available)

Explanation Reference(s)1 Constituency

dust may result in increased nasal and respiratory secretions and coughing. Inflammation of the lining tissue of the respiratory system may follow repeated, high level exposures increasing the risk of bronchitis and pneumonia. For all general dusts, the inhalable fraction has an exposure limit of 10mg/m3 on the condition it is both of inherently low toxicity and free from toxic impurities (e.g. no asbestos content and less than 1% silica).

* GRI Sector Guidance

1 All references can be found at https://www.globalreporting.org/reporting/sector-guidance/Topics-Research/Pages/default.aspx

Sustainability Topics for Sectors: What do stakeholders want to know?

CONSTRUCTION AND ENGINEERING, AND HOMEBUILDING

May 2013 Page 47 of 49

References

All references can be found at https://www.globalreporting.org/reporting/sector-guidance/Topics-Research/Pages/default.aspx

2 Accenture and United Nations Global Compact (UNGC), 2012. Sustainable Energy for All: Opportunities for the Construction Industry, Dublin: Accenture.

60 Building and Wood Worker's International (BWI), 2010. Violence Against Women is a Health and Safety Issue. [Online] Available at: http://www.bwint.org/default.asp?index=2642&Language=EN [Accessed 28 March 2013].

61 Building and Wood Worker's International, 2013. Gender Equity. [Online] Available at: http://www.bwint.org/default.asp?Issue=Gender%20Equity%20and%20Youth&Language=EN [Accessed 27 February 2013].

73 Cheng, C., Pouffary, S., Svenningsen, N. & Callaway, M., 2008. The Kyoto Protocol, the Clean Development Mechanism, and the Building and Construction Sector – A Report for the UNEP Sustainable Buildings and Construction Initiative, Paris: United Nations Environment Programme (UNEP).

87 Construction Material Processors Association (CMPA), 2007. Dust Management, Kilmore: Construction Material Processors Association (CMPA).

90 Construction Week, 2012. Saadiyat Island labour conditions improving - HRW. [Online] Available at: http://www.constructionweekonline.com/article-16105-saadiyat-island-labour-conditions-improving--hrw/#.USy3eR3qlnB [Accessed 26 February 2013].

114 ECORYS SCS Group, 2011. FWC Sector Competitiveness Studies N° B1/ENTR/06/054 – Sustainable Competitiveness of the Construction Sector, Brussels: European Commission.

120 Eichholtz, P., Kok, N. & Quigley, J., 2010. Sustainability and the Dynamics of Green Building - New Evidence on the Financial Performance of Green Buildings in the USA, London: RICS Research.

Sustainability Topics for Sectors: What do stakeholders want to know?

CONSTRUCTION AND ENGINEERING, AND HOMEBUILDING

May 2013 Page 48 of 49

153 European Federation of Financial Analysts Societies (EFFAS) and Society of Investment Professionals in Germany (DVFA), 2010. KPIs for ESG - A Guideline for the Integration of ESG into Financial Analysis and Corporate Valuation, Frankfurt am Main: EFFAS.

155 European Network of Construction Companies for Research and Development (ENCORD), 2010. Guidelines for Measuring and Reporting Construction Waste, s.l.: European Network of Construction Companies for Research and Development (ENCORD).

156 European Network of Construction Companies for Research and Development (ENCORD), 2012. Construction CO2e Measurement Protocol - A Guide to Reporting Against the Green House Gas Protocol for Construction Companies, s.l.: European Network of Construction Companies for Research and Development (ENCORD).

185 Forest Ethics, n.d. Model Forest Resources Policy. [Online] Available at: http://www.forestethics.org/model-forest-resources-policy [Accessed 27 March 2013].

204* Global Reporting Initiative (GRI), Construction and Real Estate Sector Supplement, 2011.

249 Hunter, P., 2010. Human Trafficking and Business: Good practices to prevent and combat human trafficking, New York: United Nations Global Initiative to Fight Human Trafficking (UN.GIFT).

253 Institute for Human Rights and Business (IHRB), 'The Dhaka Principles for Migration with Dignity', Dhaka, 2011.

254 Institute for Human Rights and Business (IHRB), the International Business Leaders Forum (IBLF), The Ethical Trading Initiative (ETI), 2010. Business and Migration, Roundtable for collective action: Strengthening migrant worker protection in the supply chain, London: Institute for Human Rights and Business (IHRB).

255 Institute for Human Rights and Business (IHRB), 2009. Preventing Conflicts over Land: Exploring the Role of Business and the Value of Human Rights Approaches, Draft Position Paper, London: Institute for Human Rights and Business.

315° International Organization for Standardization (ISO), TC 59/SC 17 Sustainability in buildings and civil engineering works, ISO 21931-1:2010: Sustainability in building construction - Framework for methods of assessment of the environmental performance of construction works - Part 1: Buildings, 2010.

316° International Organization for Standardization (ISO), TC 59/SC 17 Sustainability in buildings and civil engineering works, ISO/CD 16745: Environmental performance of buildings - Carbon Metric of a building - Use stage, forthcoming.

Sustainability Topics for Sectors: What do stakeholders want to know?

CONSTRUCTION AND ENGINEERING, AND HOMEBUILDING

May 2013 Page 49 of 49

317° International Organization for Standardization (ISO), TC 59/SC 17 Sustainability in buildings and civil engineering works, ISO/DTS 12720: Guidelines for the application of the general principles on sustainability, forthcoming.

376 Muldavin, S. R., 2010. Value Beyond Cost Savings - How to Underwrite Sustainable Properties. 1st red., San Rafael: Green Building Finance Consortium.

387 National Resource Defense Council (NRDC), 2010. Capturing Energy Savings Opportunities Through Increased Building Efficiency, New York: National Resource Defense Council (NRDC).

389° Natixis, 2011. Strategy Note Equity Research - Strategy/SRI: Monthly review June 2011, Paris: Natixis.

437 Pharmaceutical Supply Chain Initiative (PSCI), Pharmaceutical Industry Principles for Responsible Supply Chain Management, Implementation Guidance, 2012.

460 Robeco SAM, 2012. The Sustainability Yearbook 2012, Zurich: Robeco SAM.

479° Société Générale, 2011. SRI: Beyond Integration, from satellite to core, Paris: Société Générale.

569 World Wide Fund for Nature (WWF), The WWF Guide to Buying Paper, 2010.

572 World Business Council for Sustainable Development (WBCSD), 2007. Energy Efficiency in Buildings - Business Realities and Opportunities, Conches-Geneva: World Business Council for Sustainable Development (WBCSD).

607 World Wide Fund for Nature (WWF), 2010. The GFTN Guide to Legal and Responsible Sourcing. [Online] Available at: http://sourcing.gftn.panda.org/ [Accessed 27 February 2013].

* GRI Sector Guidance

° Resource available on request and/or for a fee.