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Publication 10 Nov 2023 · United Kingdom

Social issues in the supply chain

3 min read

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Coverage of ESG often focuses on its environmental aspects. But social issues – including modern slavery, human rights, mental health and wellbeing, and diversity and inclusion – are increasingly important for construction and real estate businesses. Measuring the social impact that a building has on an area is difficult because each location will have its own needs. One size does not fit all, so a tailored approach must be adopted for each development. 

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Social value

There is growing emphasis on social value within real estate and construction. Social value entails ensuring that the production of goods and services makes a tangible contribution to the wellbeing, resilience and sustainability of society and the environment. In the UK, central government now evaluates social value when awarding most major contracts.

Social value for existing buildings could include:

Awarding related contracts to local businesses

Involving local people in maintenance and operation

Training staff on topics such as sustainability and wellbeing

Renting empty properties to social enterprises

Diversity and inclusion

Construction and real estate are still heavily male-dominated sectors.

There is a host of reasons for this, including:

  • Insufficient encouragement for girls to study STEM subjects.
  • Inflexibility in the workplace.
  • Tools and equipment – including protective equipment – designed only for men.
  • A lack of female-friendly facilities.
  • The culture in some companies and on some sites. 

The real estate and construction sectors are much more active in addressing such issues than they were a few years ago. But there is still much work to be done. Developments in construction such as more off-site production and a greater use of technology may help to attract more women to the industry.

The drive towards environmentally friendly buildings is also expected to create change. Developments that meet new sustainable and social requirements will require a workforce that has the skills and knowledge to deliver these, and this may attract a broader spectrum of individuals.

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Green skills

Green skills are needed to drive green economic growth. They include technical skills and more general skills such as project management. The demand for workers with green skills is already outstripping supply.

This change in the landscape of work is an opportunity for businesses to benefit from recruiting a diverse workforce. But the growth of green skills risks embedding educational and generational inequalities. There is also a gender gap in green skills.

To reduce these inequalities, employers must align their Climate Change strategy with their Equality, Diversity and Inclusion strategy.

67%
of UK employers who need green skills have struggled to recruit staff who hold them*
100m
jobs can be created worldwide by 2030 if the green transition fully takes social dimensions into account **
38%
of ‘green talent’ comprises women, while men make up 62% – a ratio that has changed little since 2015***

*Worldskills UK, June 2022

**Estimate: International Labour Organization, May 2022

***LinkedIn Global Green Skills Report, Feb 2022

WELL certification

A building that has been awarded a WELL certification has been designed to benefit human health and wellbeing in seven areas: air, water, sustenance, light, fitness, comfort and mind.

Developers looking to create premium office space may consider that WELL certification will help to attract potential buyers or tenants.

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