Panel Session 113 WSB14

8/10/2019 Panel Session 113 WSB14

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Organized by: Promoted by: With the participation of:

Special Forum Sessions on Real EstatePanel Session 1:

Responsible business practice in Land, Construction and Real Estate

Moderator: Ursula HartenbergerRICS Global Head of Sustainability


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The BuiltEnvironment

Investors

Planners

Designers

Constructors

MaterialsSuppliers

Occupiers/Users

BuildingManagers

FinancingInstitutions

Valuers

Educators

Professional

Organisations

The challenge:- A sector with a plethora of direct and indirect stakeholders

PolicyMakers

Communities

Real EstateAgents


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A shift in emphasis

There is an increasing realisation that the tasks of developing, operatingand managing buildings and constructed assets are not carried out byconstruction sector participants alone but by a complex interplay of avariety of stakeholders, i.e. therepresentatives of the sector in its widestsense:

1. Through influence on the demand side based on investment decisionsand,

2. Through determination of design briefs when acting as constructionclients.

Real estate industry representatives play an important role withinthe implementation of sustainable development principles in theconstruction sector.


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Fragmented often one-dimensional - silo-thinking

Technical Financial Policy

Users


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Key questions to be discussed in this panel

How to overcome the current sectoral fragmentation by engaging allstakeholders along the value chain, including the sectors users?

Going beyond green ? - What is the scope of todays land, construction

and real estate sectors engagement with sustainability issues?

How to successfully embed sustainability aspects into regular businessroutines and decision-making processes within the sector?

What are the the specific skill sets needed to make this happen?


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UN Global Compact & Responsible Business- A Sectoral Approach for Land, Construction and Real Estate

Angel Pes GuixaBrand and Corporate Responsibility Director, Caixa BankPresident, Global Compact Network Spain


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The United Nations Global Compactoperates in Spain through theSpanish Network.

2,600 member entities *:

o 12% companieso 72% SMEso 16% other entities**

The Local Network with the highest number of members

15, 2014

** , , ,

Spanish Global Compact Local Network


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Spanish Global Compact Network Participants

* 15, 2014

393 Partners 2.600 Participants


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About the UN Global Compact

Launched on 26 July 2000 in New York with roughly 40businesses

Launched on 26 July 2000 in New York with roughly 40businesses

UN Convention Against CorruptionUN Convention Against Corruption

Rooted in universally accepted conventions:Rooted in universally accepted conventions:

Universal Declaration of Human RightsUniversal Declaration of Human Rights

ILO DeclarationILO Declaration

Rio DeclarationRio Declaration

Worlds largest voluntary initiative 8000 companiesWorlds largest voluntary initiative 8000 companiesMulti-stakeholder platform for collective actionMulti-stakeholder platform for collective action


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UN Global Compact Vision and Objectives

2. Take action in support of UN goals and issues2. Take action in support of UN goals and issues

1. Make the ten principles part of business strategy,operations and culture everywhere1. Make the ten principles part of business strategy,operations and culture everywhere

InternalizationInternalization

Contribution to society/developmentContribution to society/development

A more sustainable and inclusive global economy A more sustainable and inclusive global economy

VisionVision

ObjectivesObjectives

Peace & SecurityWater Security and SanitationHuman Rights, Childrens RightsGender EqualityHealthEducation

DevelopmentFood SecurityEcosystems and BiodiversityClimate Change Mitigation and AdaptationWater Security and SanitationEmployment and Decent WorkingConditionsAnti-Corruption

UN goals and issues include :


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The 10 Global Compact Principles

Human Rights Principle 1: Businesses should support and respect the protection of internationally proclaimed

human rights; and Principle 2: make sure that they are not complicit in human rights abuses.

Labour Standards Principle 3: Businesses should uphold the freedom of association and the effective recognition of

the right to collective bargaining; Principle 4: the elimination of all forms of forced and compulsory labour; Principle 5: the effective abolition of child labour; and

Principle 6: the elimination of discrimination in respect of employment and occupation.Environment Principle 7: Businesses should support a precautionary approach to environmental challenges; Principle 8: undertake initiatives to promote greater environmental responsibility; and Principle 9: encourage the development and diffusion of environmentally friendly technologies

Anti-Corruption Principle 10: Businesses should work against all forms of corruption, including extortion and

bribery.


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Global Compact Business Participants

Cumulative Growth

Note: Gross = All companies that signed the GC, whether or not they were subsequently delisted; Net = Gross Delisted* As of 17 October 2014** Delisted includes failure to communicate on progress and other reasons (e.g., merger, voluntary withdrawal, etc.)


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Global Compact- High Impact Industry Analysis

( ' )

2012 ($

)

2017 ($

)

(7

12) ( ) ($ ) 15%

& 590129.2 667748.8 0.001 104620 13187311 423648

2% & 557.9 668300 0.001 150213 9451367 93600

122900 136700 0.027 113000 7281000 23500

3% 3957000 4576500 0.005 347981 5376000 242600

4% 80027.5 61082.3 0.108 2627 515786 6058.4

3% & 499500 623600 0.022 815000 12390000 106900

& 1149800 1327400 0.015 1582895 4846963 243900 1% 5139317.3 6178489.8 0.012 818913 14958790 539618.5

1% 5196452.5 5957092.9 0.028 5405898 6651787 1294242.6

6% 4574000 5,328,400 (2016) 730852 363728 19500

0% 3837700 4953600 0.01 42458 2858719 121700

2% & 4365100 4972000 0.075 8757 1245805 64500

2% & 248244.8 365543.6 0.235 1120 121095 4671

1% 228625.6 384201.8 0.104 10437 511489 39851.1

5% 330618.8 483773.5 0.101 70822 466488 20389

The Real Estate Investments and Services Sector has a high impact in terms of revenue andemployment but enjoys low levels of representation within the total group of businessparticipants.


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Global Compact- Rationale for sectoral approaches

Sectoral elaborations of the UN Global Compact offer anumber of benefits for business, society and the UNGlobal Compact:

For business :- information on challenges, risks, opportunities and best

practices tailored to their sector offer the potential forthem to leap frog with performance improvements by nothaving to reinvent the wheel.

- greater coherence between sectoral approaches and UNGlobal Compact requirements and expectations wouldalso make meeting the UN Global Compact easier and

more simple.

For society:- better performance by business on corporate

sustainability means fewer adverse impacts and morepositive impacts.

For the UN Global Compact:- improved performance by participants in implementation

of the Global Compact, more engaged participants, andkey outreach opportunities including from greateralignment with the Global Compact by sectoral initiatives .


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Fostering Responsible Business in the Land, Construction &Real Estate Sector

To improve responsible business practices in the land,construction, and real estate industry, the UnitedNations Global Compact and the RICS partnered in thesummer of 2013 to jointly develop a Responsible BusinessBest Practice Toolkit for the Land, Construction, andReal Estate Sector.This collaboration is among the UN Global Compacts firstinitiatives to address corporate sustainability in a specificsector following the recent launch of its Post-2015 BusinessEngagement Architecture .

The project will seek to deliver on three key objectives:

Identify opportunities, challenges, best practices, andrecommended action items for the sector relating to theUN Global Compacts issue areas of Human Rights,Labour, Environment and Anti-Corruption, as well asbroader UN goals

Raise awareness and increase capacity for sustainabledevelopment within the sector through establishing aholistic approach linking land, construction and realestate to potential operational impact areas

Engage UN Global Compact participants from the sectoras well as real estate users and other stakeholders tocapture and showcase existing best practices and scaleup sustainability initiatives


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Toolkit Project Team & Steering Group

16 Members: Acciona BioRegional

Caisse des Dpts Carroll Properties Corporation Cemex City Developments Corio Cushman & Wakefield

Dubai Real Estate Institute FIABCI JLL Link Management Limited Marshalls Skanska Terre Initiative UN Global Compact Cities

Programme

Steering Group Members


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Toolkit target audiences


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Toolkit Public Consultation Launch

The draft Toolkit document and consultation questionnaire are available at:http://tinyurl.com/ungcricstoolkit

SouthAmerica:

Brazil

NorthAmerica:

USA

Asia/Oceania:

Australia

Africa/MENA:UAE

Europe:UK

Tentative physical consultationlocations:


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Thank You

We look forward to hearing from youContact:

[email protected]@rics.org


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, ,

Alexander CosgroveAssociate, Latham & Watkins


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Current Level of Engagement

Desk-based / internet research into:

the current level of engagement with the UNGC Principles by key

players in the land, real estate and construction sectors; and

typical media coverage given to perceived inappropriate behaviour

This research focused on engagement in terms of whether companieshave one or more policies published on their websites in respect ofcompliance with the four areas of the UNGC principles, namely (i)Human Rights; (ii) Labour Standards; (iii) Environment; and (iv) Anti-Corruption

Aim to identify areas of high and low engagement to help focus theBest Practice Toolkit


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Key Findings: Engagement

Strong correlation between companies with substantive policies and initiativeson their websites and membership of UNGC

From a global perspective, the policies published demonstrated a higheremphasis on environmental issues (28%) in comparison to anti-corruption(26%), labour (24%), and human rights (22%).

At a regional level it was clear both that implementation levels where higher insome regions than others (overall levels of engagement being highest in Europeand Australia) and that there were regional variations in emphasis (perhapsreflecting applicable local issues).


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Key Findings: Media & Public Attention

High-level Summary:

Issues affect all stages of land, real estate and construction life-cycle (fromaward of contracts through to post-completion and beyond)

In addition to any legal repercussions arising from the relevant activities;impact on reputation and wider public image is significant

Many cases attracted the attention of activists and/or campaigners who in turnadded to the negative publicity that the relevant activity attracted

A number of the activities identified span two or more of the four areasaddressed by the UNGC Principles


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Key Issues: Media & Public Attention

Human Rights Forced relocation of individuals/communities Lack of safety standards and poor construction materials/practices

Labour Standards Blacklisting of certain employees Double-breasting

Environment Illegal or unethical dumping of waste materials Corruption leading to construction on sites deserving of environmental

protection

Anti-corruption Bid-rigging scandals Price fixing and collusion


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1. Which initiatives (globally and nationally) aim atsupporting more sustainable business practices?

1. Which areas of the ten UNGC principles do theycover (human rights, labour, environment, anti-corruption); what is their primary focus?

Research regarding UN Global Compact issue area coveragein the sector


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Issue area focus of global initiatives


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Corporate practices:Selected results from the 2013 UNGC Implementation

SurveyThe sector as a subset of the survey amongst business participants:

New dedicated survey question: Does real estate, land and/or construction constitute the majority

(50% or more) of your revenue and / or corporate assets? From 1486 survey participants, 97 responding organizations answered thisquestion with yes.

97 responding organizations size (number of employees)


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Corporate Practices:Actual policy implementation


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The Toolkit developed by the UN Global Compact and RICS:

1. Is tailored to the specific needs of the Land, Construction andReal Estate sector;

2. Takes a holistic approach (i.e. focus on all issue areas);3. Aims to be practical and user friendly so that recommend

practices can actually filter down to corporate functions,operations and risk assessment processes.


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The 3-phase Life Cycle approach


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Key issues identified by Steering Group

DEVELOPMENT PHASE:Land governanceTransparencyFair treatment of workers and abolition of child labourEnvironmental stewardship

Quality of design of construction

REAL ESTATE USE PHASE:TransparencyEnvironmental Stewardship

CommunitiesHealth & safety of building occupantsDecent work & human rights in the value chain

RECOVERY & END OF LIFEStrategic site-use re-habilitationRefurbishment & retrofittingWaste management, resource conservation and recycling during demolitionBrownfield regeneration of siteRehabilitation of site into bio-habitat


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Impact on UN Global Compact issue areas


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Thank you


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The Development Phase:Embedding environmental best practice in

construction

Director Green SupportSkanska AB

Roy Antink


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The Development Phase stages and their impact on the fourUN Global Compact issue areas

The Development Phase is crucial because

Any material departures from best practiceduring the Development Phase can potentiallyhave serious implications for those involved in

later stages of the Life Cycle.

Bad planning and design are very difficultor even impossible to correct at later stages.


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The Development Phase: Five key issues

- Land governance

- Transparency

- Fair treatment of workers and the abolitionof child labor

- Environmental stewardship

- Quality and design of construction

Sk k S i bili A d


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Skanskas Sustainability Agenda

Sk k C l P l


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Skanska Color Palette

Our Definition of `Greenused for: Strategic Planning, Measurement and reporting, Communication, and Continual improvement.

Sk k C St d B d Ali S d i


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Skanska Case Study: Brogrden Alingss, Sweden inrelation to the four UN Global Compact issue areas

Project Description 16 residential buildings with 299 appartments Constructed early 70s Million Homes Program Procured by Alingsshem as a partnership

Environment Achieved a 75% reduction of energy consumption Skanska Green Workplace

Labour Local workers and subcontractors Regional construction materials Vocational training

Human Rights and Transparency Stakeholder engagement Functional and flexible buildings Neighbourhood amenities

http://www.skanska-sustainability-case-studies.com/

B i B fit & O t iti


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Business Benefits & Opportunities

- Legal compliance

- Cost reduction

- Demonstration of industry leadership

- Level playing field through improved transparency

- Reputation and brand


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Thank You

Contact:[email protected]


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Capacity building for sustainability

Mahmoud El Hesham BuraiManaging DirectorDubai Real Estate Insitute

About the Dubai Real Estate Institute


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About the Dubai Real Estate Institute

- Launched in January 2007 as the Middle East's firstspecialize academic institute in Real Estate education

- UN Global Compact participant since 2011

The Dubai Real Estate Institute - Objectives


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The Dubai Real Estate Institute Objectives

- Develop the next generation of real estate leaders andentrepreneurs capable of pursuing challenging global opportunities

- Certify Real Estate Professionals to work ethically & professionallyin line with international standards.

- Provide a broad spectrum of high quality educational programs tosupport career advancements.

- Create a dynamic learning environment for educational excellence.

- Engage in a high standard of research, scholarship and intellectualendeavors.

- Foster the exchange of knowledge about real estate issues andinnovations, as well as facilitate the sharing of best practices.


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Capacity building

Building abilities, relationships and values that will enable organizations, groups and individual toimprove their performance and achieve their

development objectives Source: UNEP

Sustainability competencies Competencies in sustainability, these are complexes of

knowledge, skills, and attitudes that enable successful taskperformance and problem solving with respect to real-world

sustainability problems, challenges, andopportunities. Source: cf. Dale & Newman, 2005; Rowe, 2007; Barth et al., 2007

Emphasis


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Emphasis

- Capacity building as a catalyst for change

- Building institutional capacity

- Involvement of all stakeholders

- Building awareness and analytical capacity- Building decision making capacity

Sustainability competency requirements


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y p y q

Technical competency elements


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p y

Knowledge and awareness about the:

- the life cycle

- natural resource management, including energy, fresh water and waste

- sustainable buildings (new, existing, domestic and non-domestic) including theprinciples of sustainable design, performance, material selection

- building rating tools, including their aims, limitations, key components

- benchmarking schemes, e.g. indices for property performance comparison

- assessment tools, e.g. whole life cost value, life cycle assessment analysis

- sustainable cities, neighbourhoods, communities, sustainable infrastructure andtransport

Building a holistic sustainability competency approach


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g y p y pp

Ways to improve capacity building


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Identify needs and building on existing capacities /

Being clear about objectives , , / / / /

Targeting the right people

( / / /

Train the trainer

( ,

Responsible business and the Land, Construction and Real


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Esate Real Estate sector conclusions

There is:

Encouraging momentum within the real estate industry towards understandingand acting upon the risks and opportunities that arise from climate change,resource scarcity and the increased public awareness regarding sustainabledevelopment issues;

Increasing concern regarding the challenge of embedding sustainability aspectsinto regular business routines and decision-making processes;

Increasing shift from a technical task to a managerial responsibility with regardto implementation;

Concern that existing self-declarations, guidelines and voluntary initiatives tendto be too broad and generic and not tailored to the particularities of the realestate industry.

A need for a clear agenda and tools for organisations on how to realizeeconomic success while simultaneously taking responsibility towardssociety and the environment.

Therefore: help us shape the UNGC / RICS Best Practice


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Sectoral Toolkit by joining the public consultation!

The draft Toolkit document and consultation questionnaire areavailable at:

http://tinyurl.com/ungcricstoolkit

SouthAmerica:

Brazil

NorthAmerica:

USA

Asia/Oceania:

Australia

Africa/MENA:UAE

Europe:UK

Tentative physical consultationlocations:


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Thank you

Panel Session 113 WSB14

Documents

Transcript of Panel Session 113 WSB14