F - Construction
E1 - Climate change
The construction sector is both a major emitter of greenhouse gases and highly exposed to climate-related disruptions, making climate change adaptation, mitigation, and energy efficiency central issues. Inadequate management of these aspects can lead to increased costs, regulatory pressure, and project delays, while ambitious strategies for decarbonisation, resilient design, and energy innovation create opportunities for competitiveness, compliance, and new market access. For construction companies, proactively addressing IROs related to climate change is now essential to ensure long-term viability, stakeholder trust, and a positive contribution to the ecological transition.
E1 - Climate change E2 - Pollution E3 - Water and marine resourcesE4 - Biodiversity and ecosystems E5 - Circular economyG1 - Business conduct S1 - Own workforce S2 - Workers in the value chain S3 - Affected communities S4 - Consumers and end-users
E2 - Pollution
Construction activities are significant sources of air, water, and soil pollution—through dust, emissions, runoff, hazardous substances, and microplastics—impacting ecosystems, public health, and food resources. Insufficient management of these pollutants can lead to regulatory sanctions, project delays, and reputational damage, while investing in cleaner technologies, responsible material choices, and pollution prevention can create opportunities for innovation, cost savings, and enhanced stakeholder trust. For this sector, proactively addressing IROs related to pollution is now essential for compliance, competitiveness, and supporting sustainable development.
E1 - Climate change E2 - Pollution E3 - Water and marine resources E4 - Biodiversity and ecosystems E5 - Circular economyG1 - Business conduct S1 - Own workforce S2 - Workers in the value chain S3 - Affected communities S4 - Consumers and end-users
E3 - Water and marine resources
Construction activities can significantly affect water and marine resources through water abstraction, site runoff, and the alteration of natural hydrological cycles, as well as by potentially impacting aquatic habitats during large civil engineering projects. Poor management of these issues can lead to regulatory sanctions, project delays, and conflicts with local stakeholders, while integrating water efficiency, pollution prevention, and ecosystem protection into project design opens opportunities for innovation, risk mitigation, and enhanced reputation. For construction companies, proactively addressing IROs related to water and marine resources is now crucial for compliance, resilience, and sustainable value creation.
E1 - Climate change E2 - Pollution E3 - Water and marine resources E4 - Biodiversity and ecosystems E5 - Circular economyG1 - Business conduct S1 - Own workforce S2 - Workers in the value chain S3 - Affected communities S4 - Consumers and end-users
E4 - Biodiversity and ecosystems
Construction projects are major drivers of biodiversity loss through land take, habitat fragmentation, and resource extraction, while they also depend on healthy ecosystem services for project resilience and community acceptance. Poor management of these impacts can lead to degradation of species and ecosystems, regulatory delays, and reputational risks, whereas integrating biodiversity preservation and restoration into project planning creates opportunities for innovation, sustainable finance, and strengthened stakeholder relationships. For construction companies, proactively addressing IROs related to biodiversity and ecosystems is now fundamental for compliance, risk mitigation, and long-term value creation.
E1 - Climate change E2 - Pollution E3 - Water and marine resources E4 - Biodiversity and ecosystems E5 - Circular economyG1 - Business conduct S1 - Own workforce S2 - Workers in the value chain S3 - Affected communities S4 - Consumers and end-users
E5 - Circular economy
The construction sector faces major challenges and opportunities regarding the circular economy, given its high consumption of raw materials, significant waste generation, and the potential for material reuse and recycling. Poor management of resource inflows, outflows, and waste can result in environmental degradation, higher costs, and regulatory risks, while implementing circular practices—such as eco-design, selective deconstruction, and valorization of construction materials—can drive innovation, cost savings, and new business models. For construction companies, proactively addressing IROs related to circularity is now essential for compliance, competitiveness, and contributing to sustainable development.
E1 - Climate change E2 - Pollution E3 - Water and marine resources E4 - Biodiversity and ecosystems E5 - Circular economyG1 - Business conduct S1 - Own workforce S2 - Workers in the value chain S3 - Affected communities S4 - Consumers and end-users
G1 - Business conduct
In the construction sector, robust business conduct is critical due to the complexity of supply chains, frequent public procurement, and the sector’s exposure to corruption, bribery, and political influence risks. Inadequate management of ethical culture, supplier relationships, or whistle-blower protection can lead to legal sanctions, financial losses, and damage to reputation, while fostering transparency, integrity, and responsible lobbying strengthens stakeholder trust and unlocks new business opportunities. For construction companies, proactively identifying and managing IROs related to business conduct is now essential for compliance, sustainable growth, and maintaining legitimacy in a highly scrutinized environment.
E1 - Climate change E2 - Pollution E3 - Water and marine resources E4 - Biodiversity and ecosystems E5 - Circular economyG1 - Business conduct S1 - Own workforce S2 - Workers in the value chain S3 - Affected communities S4 - Consumers and end-users
S1 - Own workforce
Ensuring adequate wages, equal opportunities, respect for work-related rights, and safe working conditions is crucial in the construction sector, where operational safety, workforce diversity, and talent retention directly impact project success and reputation. Neglecting these aspects can increase the risk of workplace accidents, legal disputes, and staff turnover, while investing in employee well-being and inclusion fosters innovation, operational excellence, and long-term resilience. For construction companies, proactively managing IROs related to their own workforce is a key lever for compliance, competitiveness, and sustainable value creation.
E1 - Climate change E2 - Pollution E3 - Water and marine resources E4 - Biodiversity and ecosystems E5 - Circular economyG1 - Business conduct S1 - Own workforce S2 - Workers in the value chain S3 - Affected communities S4 - Consumers and end-users
S2 - Workers in the value chain
The construction sector relies heavily on complex value chains involving numerous subcontractors and temporary workers, often exposed to risks concerning fair wages, equal treatment, and safe working conditions. Insufficient oversight of these aspects can lead to human rights violations, supply chain disruptions, and reputational or legal challenges, while promoting decent work and inclusion throughout the value chain strengthens resilience, stakeholder trust, and responsible sourcing. For construction companies, proactively identifying and managing IROs related to workers in the value chain is now essential for regulatory compliance, competitiveness, and sustainable growth.
E1 - Climate change E2 - Pollution E3 - Water and marine resources E4 - Biodiversity and ecosystems E5 - Circular economyG1 - Business conduct S1 - Own workforce S2 - Workers in the value chain S3 - Affected communities S4 - Consumers and end-users
S3 - Affected communities
Construction activities have a direct and lasting impact on local communities, influencing land use, access to resources, and the social fabric through noise, pollution, and changes to the built environment. Poor management of community relations, safety, or social inclusion can result in opposition, project delays, and reputational or regulatory risks, while proactive engagement, transparent information, and inclusive practices create opportunities for trust, partnerships, and sustainable urban development. For construction companies, identifying and managing IROs related to affected communities is now essential to securing social license to operate and fostering long-term value creation.
E1 - Climate change E2 - Pollution E3 - Water and marine resources E4 - Biodiversity and ecosystems E5 - Circular economyG1 - Business conduct S1 - Own workforce S2 - Workers in the value chain S3 - Affected communities S4 - Consumers and end-users
S4 - Consumers and end-users
For construction companies, the quality and accessibility of information provided to consumers and end-users, the safety of buildings and infrastructure, and the social inclusion of all user groups are increasingly scrutinized and regulated. Poor management of these aspects can result in safety incidents, exclusion of vulnerable populations, legal liabilities, and loss of trust, while transparent communication, robust safety standards, and inclusive design foster innovation, user satisfaction, and new market opportunities. Addressing IROs related to consumers and end-users is now critical for compliance, reputation, and sustainable value creation in the construction sector.
E1 - Climate change E2 - Pollution E3 - Water and marine resources E4 - Biodiversity and ecosystems E5 - Circular economyG1 - Business conduct S1 - Own workforce S2 - Workers in the value chain S3 - Affected communities S4 - Consumers and end-users
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