Heijmans endorses both the general principles of the Organisation for Economic Co-operation and Development (OECD) Guideline on Multinational Enterprises and the United Nations (UN) Guiding Principles on Business and Human Rights.
The process
In 2023, we started a due diligence process. This is aimed at further identifying human rights risks in our own organisation and the chain in order to then prevent, reduce and remedy them. Our goal is to work together with the chain to create more positive impact. We do this according to the principles of the Human Rights Due Diligence process and supporting measures, as described in the OECD guidelines (see figure below). As an organisation, Heijmans has a direct impact on a number of human rights.
Rights related to labour:
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The right to work
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The right to fair and equal payment
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The right to freedom from discrimination
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The right to protection against unemployment
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The right to freedom of association
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The right to an equitable standard of living
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The right to rest and leisure and
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The right to protection from forced labour
Rights related to safety and health
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The right to a healthy and safe working environment and
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The right to a clean, healthy and sustainable living environment
For our comprehensive report, please see our website.
Governance
The management devotes attention to many of the topics related to human rights on a day-to-day basis and they are a standard part of the Executive Board-approved safety, HR and procurement policies. Facilitated by the Risk Office and Audit - and formally raised in the management teams, group council and board of directors - we integrate due diligence into decision-making, including due diligence focused on procurement considerations. It also means that human rights risks are automatically assessed in the standard risk register.
In due diligence processes, we examine the risks to people and society Heijmans poses. As Heijmans, we have a responsibility to do business in a socially responsible manner. Ensuring a safe and healthy working environment for employees and subcontractors is one of the most important themes for our organisation. Good working conditions, freedom of association (trade unions) and fair and equal pay are standard components of our safety, HR (diversity/inclusion policy) and procurement policies.
We have also been working on a strategy recalibration in which these elements receive renewed attention.
Risk analysis
Heijmans has an extensive programme of risk analyses in the areas of safety, HR and procurement. With regard to safety, Heijmans works on the basis of ‘GO!’, an extensive system of policy, processes and monitoring aimed at improving our results on this important human rights theme.
Heijmans also has the ‘How we work’ code of conduct. These rules of conduct are based on a number of fundamental human rights principles and form an integral part of the employment contracts of all Heijmans employees.
Heijmans is also planning to sign the Manifesto for Socially Responsible Procurement and Business in 2024. This is primarily focused on chain management and chain partners. We will implement this manifesto with the Sustainability Declaration, which includes human rights.
The subject of procurement responsibility requires research into the risks associated with purchased products. In the year under review, we started a substantive analysis of the potential risks associated with the procurement of certain product groups, including concrete, metal or steel, timber, plastic and natural stone.
Impact
We compared the information from our risk analysis with our policy. We used our risk analysis to assess the areas where further action is needed.
Improving internal safety culture starts with leadership behaviour, active direction, learning and intervention. To embed safety within our business areas, we provide training and advice. Our Safety Department provides advice and guidance on safety policy.
We are aware that subcontractors do not always aspire to the same level of safety as we do. Setting various requirements provides good, clear guidelines, including in some foreign languages. These include, for example, making Safety, Health and Environmental Checklist Contractors (SCC; VCA in Dutch) and Generic Gate Instruction (GPI) certificates mandatory, working with inspected equipment and a project ID pass so that only people with a valid construction pass are allowed on our building sites.
The ‘Zakelijk Zuiver’ integrity and conduct programme is ongoing and applies to all employees. We also developed the ‘Let yourself be heard - feel safe to speak out’ toolbox to support the theme of social safety.
On the basis of the EU Pay transparency directive (European Parliament 30 March 2023), we conducted an analysis that revealed the gaps in our organisation. Based on various benchmarks, we then made adjustments for a number of specific groups. Finally, we have taken measures aimed at ensuring equal pay.
A risk-limiting factor for Heijmans is that our organisation only operates in the Netherlands and most of our raw materials, products and services come from Europe. We cover some of the risks by buying certified products and working with certified suppliers. One example is the decision we took to only purchase sustainably certified timber (FSC/PEFC). This guarantees both environmental and social/human rights aspects through an external monitoring system. Other examples are the certifications related to product quality and safety.
Our approach is to work towards improvement in close consultation with our suppliers. In a high-risk non-compliance situation, when a supplier is not willing to work with us to find a solution, we terminate the contract; taking into account the potential negative consequences of the decision to break the contract.
Monitoring
We monitor practical application and results, including the extent we have addressed negative impacts adequately by establishing quantitative and qualitative indicators. We do this on a regular basis integrated into the reporting process. The responsibility of monitoring has been assigned to various officers, with oversight by the Group Council and the Executive Board. This monitoring enables us to assess whether the measures taken within our organisation are effective or whether we need to make improvements.
In terms of safety, we have independent audits carried out on site and with subcontractors. All business areas (except recent acquisitions) have now attained Step 4 of the Safety Culture Ladder. After signing the Governance Code of Safety in Construction (GCVB), we include safety awareness as an obligation in tenders and contracts. In addition, the GO! compass supports a proactive safety culture.
To map the topic of social safety even better, the employee engagement survey (autumn 2023) asked in-depth questions about undesirable behaviour. This showed that around 70% of employees who made a report were satisfied with the way the report was handled.
Periodically - at least once a year - we conduct supplier evaluations. We use interviews to check whether they comply with the signed agreements, including the Code of Conduct. We hold discussions with major suppliers several times a year and we record the outcomes of these discussions in the Supplier Relation Management (SRM) system. We also work with 12Build, a tool for transparency between client and supplier. We are currently investigating whether to use the services of Prewave - Supply chain risk information. This would enable us to assess suppliers in the chain even more effectively.
Communications
We will use our website www.heijmans.nl for communication with stakeholders on our due diligence process. This will enable us to keep them up to date.
We will use sections on our Sharepoint environment, Viva Engage, newsletters and e-mails to highlight communications in our own organisation about the due diligence process.
Communication will remain a key priority in the coming years, with a focus on engaging, informing and encouraging the active participation employees and external stakeholders.
Remedial measures
Affected stakeholders, including employees, can report abuses to the company under the existing Reporting Procedure on Undesirable Behaviour and Abuses, which provides for a regime related to breaches of EU rights. See also section 15.8.
We have set ourselves the goal, in the coming years, of positioning the complaints mechanism for our chain partners more clearly on our website. This will enable us to receive adequate information about possible violations and abuses. Our ambition is to use this information to determine, together with our chain partners, what we can and should then do to minimise these reported violations and abuses and prevent their recurrence.