Human rights

As an international technology group for construction services, we respect and support the protection of human rights within our sphere of influence. STRABAG is especially committed to the International Labour Organization’s Declaration on Fundamental Principles and Rights at Work and the United Nations Universal Declaration of Human Rights. STRABAG also is a signatory to the UN Women’s Empowerment Principles. As a member of the United Nations Global Compact, STRABAG submits an annual progress report on its activities to comply with the ten global principles in the areas of human rights, labour, environment and anti-corruption. These internationally applicable standards are included as key principles in our Code of Conduct and other Group guidelines.

By providing construction services in structurally weak regions, we are making an important contribution to infrastructure expansion and job creation in those places. Inclusive and sustainable construction methods contribute to the increased well-being of building users, thereby creating added value for society. Our Strategy 2030 reflects this with its focus on people as one of three core areas.

At the same time, the small scale and complex nature of supply and value chains in our field of activity gives rise to risks that must be dealt with proactively. For this reason, we focus especially on creating transparency and on raising awareness among our suppliers with regard to the protection of human rights.

Rules, responsibilities and due diligence

Additional human resources were established within our Sustainability Management team during the 2023 reporting year to reinforce the topic of human rights across the Group and avoid human rights risks. The new team, headed by the corporate Human Rights Officer, deals specifically with the topics of human rights, labour standards and social responsibility, taking into consideration the needs of our own employees, of workers in the supply chain and the impact that our value chain and business activities have on society.

In the 2023 reporting year, the role of the Human Rights Officer was refilled with a modified and expanded set of duties and responsibilities. The Human Rights Officer is responsible for monitoring the Social Compliance Management System for its effectiveness and consults with the Management Board, which is responsible for the fulfilment of human rights due diligence obligations. Sustainability Management works closely with the various central and corporate divisions of STRABAG to implement the Social Compliance Management System.

STRABAG’s commitment to the prohibition of slavery, human trafficking and child labour is anchored in our sustainability policy. Our corporate-wide Policy on Employment Conditions and Human Rights was published as an annex to the STRABAG SE Management Manual in 2023 as a way of highlighting our commitment to the respect of human rights and fundamental labour principles.

Specifically, we are committed to the prohibition of:

discrimination and harassment in the workplace
modern slavery and forced labour, human trafficking and torture
child labour
unlawful evictions and property seizure

We also respect and support:

the rights of minorities and of indigenous peoples
the maintenance and continuous improvement of our occupational safety and health standards
fair and transparent recruitment and hiring practices
fair working conditions (including fair pay and working hours)
freedom of assembly and union affiliation
privacy and personality rights
the development of society through our contribution to the local economy
the communication of our values in the value chain

The STRABAG SE Code of Conduct precisely defines the system of values to which the company and all its employees are committed. We expect our suppliers, subcontractors and business partners to show the same commitment to human rights and the fundamental labour principles. For this reason, these fundamental values form an integral part of our STRABAG Supplier Code of Conduct.

In accordance with the UK and Australian Modern Slavery Act, we publish an annual statement underlining the relevance of human rights risks in our business activities and supply chain. In line with the German Supply Chain Duty of Care Act, we also publish a policy statement and an annual report for our Group companies affected by this law in Germany.

Potential human rights violations, such as discrimination at the workplace, can be reported by employees and external persons via an online whistleblower platform or directly to the stated contact person (ombudsperson). A detailed explanation of how whistleblower reports are handled and how we guarantee the privacy and anonymity of whistleblowers or other persons involved is ensured can be found in the internally and externally accessible functional description and in an FAQ. Corrective action and disciplinary measures – from warnings to dismissals – are taken by the management representative in charge in order to respond appropriately to the identified offences and to counteract any future violations.

Implementation of the STRABAG Social Compliance Management System

The concept for a management system that emerged from the completed Group project sustainability in the supply chain was further developed into a Social Compliance Management System in the 2023 reporting year. The Social Compliance Management System maps our due diligence processes for human rights and environmental risks. It aims to identify, prevent and minimise human rights and environmental risks in our own business activities and in the supply chain and to put an end to violations. Implementation in the divisions began in 2023.

Work is underway to implement and continuously improve our Social Compliance Management System throughout the Group. In the year under report, the effectiveness of the implementation steps that have already been completed was scrutinised and the findings taken into account in the further development of the system. The central due diligence processes of the Social Compliance Management System are regular risk analyses, the derivation of suitable preventive and remedial measures, our complaints procedure, as well as documentation and reporting.

A methodology was developed to analyse human rights and environmental risks in the company's own business activities and in the supply chain in order to identify potential negative impacts on people and their natural livelihoods as a result of country and segment risks. The prioritised human rights and environmental risks are compared with measures already in place at the various STRABAG Group divisions. These are very diverse and lie in different areas of responsibility.

The STRABAG Group protects the health of its employees through extensive occupational safety and health measures defined by the central staff division Health Safety Wellbeing. STRABAG's employees are given ongoing training in their skills and competencies by the organisational units of People & Culture Development. Ethical behaviour that complies with the rules forms the framework for socially responsible action.

To provide information and raise awareness of human rights risks in our supply chain, purchasers were given training on social responsibility and the implementation of due diligence obligations in the purchasing process. There are plans to extend the training programme to other process participants and throughout the Group. Awareness-raising measures are also in place for our suppliers. In the year under report, pilot supplier audits were carried out with a comprehensive audit checklist on the topics of human rights and working conditions, occupational safety and health, the environment and procurement. When designing processes and risk-based measures, we work closely with the purchasing managers of the divisions to achieve the long-term goal of a socially and environmentally sustainable supply chain.

Faelle

Objectives and indicators

STRABAG takes compliance with the fundamental labour principles and human rights seriously and aims to minimise risks, prevent violations and take remedial action in this regard. The grievance system is a core element of this commitment.

We used the following indicators to assess the situation in the year under report:

Number of cases identified in the category discrimination in the reporting year (cases are assigned to the year in which they were conclusively discovered): 33
Number of cases identified in the category human rights and working conditions in the reporting year (cases are assigned to the year in which they were conclusively discovered): 11

With a total of 44 reported cases in 2023, significantly more incidents were identified than in the previous year (2022: 16 reported cases). The increased use of the whistleblower system is attributed to its increased communication via the intranet, at training courses and online on the Group website. Of the 44 reports, 33 could be assigned to the category discrimination and eleven to the category human rights and working conditions. In eleven of the 33 cases, the conflict was resolved amicably. In three cases, the employee was dismissed, while disciplinary action was taken in eight other cases. Twelve reports were not substantiated. Three cases were withdrawn. In three cases, the whistleblowers could no longer be contacted for further clarification. The incidents involved were isolated cases in which the behaviour of employees or managers deviated from company guidelines.

The whistleblower system also recorded reports that were not submitted directly to the whistleblower platform but by telephone or e-mail to the ombudsperson (in 18 of 44 cases). The effectiveness of the system is reviewed annually. Especially important are measures to make the platform and the ombudsperson’s contact information easier to find and to raise awareness of the system’s existence, for example through mention in training courses.

Outlook

Awareness for the topic of human rights is to be enhanced through the expansion of training programmes and via other Group-wide information channels. We are also working on reviewing the effectiveness of those measures that have already been implemented in order to create a continuous process of improvement. We are defining new indicators and setting new targets to measure our success and improve our management.