How the "S" of ESG strengthens your construction business

You hear it around you more and more: ESG, Environmental, Social & Governance. When a company engages in ESG, it means the company is thinking about how to deal with issues of climate and environment (the "E"), society (the "S") and corporate governance (the "G"). In construction, the focus is often on the "E" and the "G." Climate goals from the government and the use of renewable energy are often a regular item on the agenda (the "E"). In addition, construction companies are aware of the importance of proper board composition and clear reporting (the "G"). The "S," however, brings more ambiguity. What exactly does the "S" mean? Within your construction company, how can you best approach society-related topics to have the fullest possible ESG policy?

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Date: August 06, 2024

Modified August 07, 2024

Written by: Ruud Olde and Emanuella de Moor

Reading time: +/- 4 minutes

The internal and external "S" impact

Within your construction company, you must consider the external and internal influence you have on social issues. External social influence is about the impact that construction projects have on the people who live and work around the new buildings. You need to think about the questions such as what the buildings can add to the living environment and for whom the buildings are intended. The internal social impact looks at the social issues within the construction company itself, i.e. for the employees. Think about sustainable employability of the employees, diversity and employee happiness.

Attract and retain employees

In particular, a construction company's internal social influence can be used to attract new employees and increase the physical and mental health of current employees. Below we discuss five "S"-related topics you can pay attention to within your construction company to get more satisfied and sustainably employable workers.

1. Diversity

An analysis by the Social and Economic Council shows that the male-female ratio in the board, supervisory board and sub-top is the most out of balance compared to other sectors. With 5.8% women on the board, the construction sector ranks lowest. So in terms of gender diversity, construction companies can still make great strides.

In addition to gender diversity, employees may differ in other aspects. Take your employees' language skills, for example. If you allow an employee with a language deficiency to take a language course at your expense, their language skills improve. As a result, mutual communication also improves. This facilitates the work of your employees, which benefits your organization.

You can also include in your diversity policy a "life stage conscious" policy that addresses the needs of employees at different life stages within your organization. In this way, you deploy all employees, regardless of age, in the best and most sustainable way possible.

2. Safety

Worker safety is an important social issue within construction companies and, of course, already enshrined in many occupational health and safety laws. Making sure that safety is ensured on the construction site will benefit the health of workers and the image of your construction company. For example, safety can be ensured with clear safety rules, personal protective equipment, clear communication and adequate rest.

3. Mobility

On construction sites, workers often perform heavy work. Here, it is important that workers can continue to do the work, for example, by moving them to a more suitable position if the work becomes too hard. Even if someone is given a different job because they need more challenge, this benefits mobility. You achieve mobility by implementing a life-phase-conscious policy, an active career policy, a training policy and conducting a planning and development cycle.

4. Health

Health is a broad social issue, involving both physical and mental health. You usually reward a healthy employee with less absenteeism. In addition, healthy and happy employees contribute to the company's image to the outside world, making it more attractive to new employees. A smoking policy, bike plan, healthy lunch and encouraging healthy behaviors can contribute to the health of your employees.

5. Training

Employees with physically demanding jobs, such as on construction sites, can especially benefit from training. With training, you enable your employees to perform their jobs longer and better. In addition, you emphasize your commitment to employees and increase employee advancement opportunities and motivation. With the help of career management, you align the needs of the organization and the wishes and skills of the employees on a regular and long-term basis. Employee satisfaction, future plans and work-life balance are then topics of conversation.


Stay Focused

The implementation of an adequate "S" policy is of course customized. Would you like to spar about the possibilities for your organization? Feel free to contact our experts.

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