New guide helps construction sector build the foundation for human rights due diligence

Few sectors leave a bigger footprint on the world than the construction sector. In Denmark alone, the sector’s activities encompass approximately 70,000 kilometres of roads, 130.000 kilometres of sewers, 327 million square meters of residential space, as well as 36 million square meters of institutions such as schools and hospitals, and 272 million square meters housing factories, offices, and other commercial enterprises.

Beyond the physical footprint, the construction sector has a big impact on human rights in Denmark as well as in the rest of the world, and companies in the sector have a responsibility to address this impact. Across the companies’ value chains – from the miners that extract the materials, past the workers on the construction site, to the people living where a new building is towering - there is an impact and a responsibility.

Currently this responsibility is being formalised into legal obligations in the European Union who have passed a Directive regarding the human rights reporting for companies and is currently negotiating a Corporate Sustainability Due Diligence Directive that will oblige companies to identify, prevent and mitigate their negative impacts on human rights and the environment.

To help companies navigate these expectations and translate it into positive change for human rights, the Green Building Council Denmark, Danish Industry, Global Compact Denmark and Danish Institute for Human Rights have developed a guide that introduces actors in the construction sector to how they can work with human rights and which particular challenges are prevalent within the sector. As Cathrine Bloch Veiberg, Chief Advisor on Business and Human Rights, points out:

“The construction sector plays an essential role in societal development, and therefore, the guide is designed as a helping hand and a resource for organisations wanting to navigate the complex value chain and understand the potential human rights risks that may arise, so they can take action before adverse impacts occur."

Business and human rights in the construction sector

Since 2011 the UN Guiding Principles on Business and Human Rights (UNGPs) have been the internationally recognized standard concerning the corporate responsibility to respect human rights.

The UNGPs set out that while states have a responsibility to protect human rights in relation to negative impacts caused by business activities, companies have a responsibility to respect human rights. This means that businesses must have an ongoing process in place to identify, avoid, address, mitigate and remediate the human rights impacts with which they are involved. This responsibility concerns all businesses regardless of a government’s failure to fulfil its own duty.

The responsibility stated in the UNGPs is divided into five steps. Companies should 1) make policy commitment, 2) identify and asses their impact on human rights 3) when being involved in potential- or actual negative human rights impact take action to prevent, mitigate or remediate 4) track and monitor these actions and 5) communicate externally how they address their impact on human rights.

The guide advises on how to apply these principles in the building sector, and also breaks down which human rights issues are salient in different parts of the value chain:

• Land acquisition, planning and financing often affects the communities on the land or surrounding the land going to be used for construction.
• Architecture and design often relates to the physical accessibility of the place once built, choice of materials (see below), but also to the inclusion and consultation of minorities in the designing process.
• Material sourcing relates to the human rights condition under which the materials are being extracted.
• Construction and logistics will often be about the labour rights of construction workers and noise and dust concerns of local communities.
• Management and use relates to the rights of tenants and the maintenance of buildings to ensure their safety.
• Demolition and redevelopment relates to hazardous working conditions in demolition, environmental rights and the rights of neighbouring communities.

The Danish Institute for Human Rights has been working on the guide as a knowledge partner. The Institute for Human Rights & Business (IHRB), Built Environment Programme has also supported in the project and guidance. The hope is that the guide will be used by different actors in the construction sector to reflect on human rights risks in different parts of value chain and identify which risks they might be prone to. Moreover, the guide gives tips on how to get started with due diligence and what kind of tools and other resources that can support the work.