What falls under the 'S' in ESG?

The Social (S) aspect of ESG refers to a company’s impact on people, both internally and externally. It includes:

• Employee engagement, wellbeing and workplace safety

• Development and upskilling of employees

• Diversity, Equity and Inclusion efforts

• Community engagement and social responsibility initiatives

• Ethical labour practices and human rights

• Fair pay and reward

• Product safety and quality, supply chain transparency and responsible marketing

For businesses, focusing on these areas isn't just about compliance – adhering to social ESG principles is important for strengthening brand reputation and stakeholder trust.

Why measure social impact?

Measuring social impact helps businesses demonstrate corporate responsibility to employees, customers and investors.

It can help construction companies identify areas for improvement in employee wellbeing and community relations, strengthen trust with employees, customers and investors, and minimise regulatory risks.

What is the social impact of construction?

In the construction industry, the "S of ESG" should codify how a company preserves employee physical and mental wellbeing, the level of protection guaranteed for consumers, and how an organisation's advocacy aligns with its ESG agenda.

It should also ensure fair wages, guarantee workers' rights, and foster positive relationships with the communities in which construction businesses operate.

Here are a few ways companies can optimise their construction practices to build a strong ESG strategy that doesn't shy away from social issues.

Health and safety

Above everything else, construction companies should implement rigorous safety protocols, provide regular training, and maintain a safe working environment to prevent accidents and injuries.

This includes adhering to occupational health and safety regulations as well as adopting best practices for site management.

Human rights and fair pay

Construction companies must uphold human rights within their operations and supply chains.

For instance, they should be committed to preventing forced or child labour wherever they operate, enforcing ethical working conditions across all sites, and holding suppliers accountable for the fair treatment of workers.

Ensuring fair pay and reward systems is another essential requirement for fostering a positive workplace culture in construction.

By prioritising competitive wages, performance-based incentives, and transparent compensation, construction companies can enhance workforce loyalty, reduce turnover, and strengthen their overall ESG commitments.

Safe reporting channels

Another key requirement in construction, just like in other industries, is to create a safe space for employees and stakeholders to talk about unethical behaviour without fear of retaliation.

By setting up clear and accessible reporting channels, such as anonymous hotlines or digital platforms, you can ensure that problems are shared and addressed promptly, proving your company’s commitment to continuous improvement.

Inclusive and safe spaces

Incorporating universal design principles in construction projects allows you to create spaces that are accessible and inclusive to everyone. This means designing buildings that can be navigated with ease by people of all ages and abilities.

However, universal design goes beyond mere compliance with accessibility laws – it's about providing environments that accommodate the diverse needs of all users. By adopting these principles, construction companies can play a key role in promoting inclusivity and enhancing the quality of life for all team members.

By adopting these principles, construction companies can play a key role in promoting inclusivity and enhancing the quality of life for all team members.

However, creating truly safe spaces goes beyond accessibility: it also requires the use of high-quality, safe, and sustainable materials that support resilient infrastructures and healthy buildings.

With durable, non-toxic, and responsibly sourced products, construction companies can enhance indoor air quality, structural integrity, system safety and overall occupant well-being – contributing to long-term community health.

Mental wellbeing

Beyond physical safety, construction companies must focus on the mental wellbeing of their workers.

Implementing mental health support programmes is an important first step that ensures employees have access to key resources promoting their emotional wellbeing.

Encouraging work-life balance through fair scheduling and adequate breaks also helps prevent burnout, while addressing job site stressors mitigates negative factors affecting workers’ mental health and productivity.

Culture

A company’s culture plays an important role in reaching its social responsibility goals.

For instance, fostering an ethical workplace where respect and inclusion are key priorities has a positive impact on the work environment and employee satisfaction.

Most importantly, recognising and rewarding employees for contributions to social responsibility reinforces a culture of accountability and increases general awareness of these critical issues.

Development and upskilling of employees

Companies can also have a positive social impact by providing ongoing training programs, apprenticeships, and professional development opportunities that help workers adapt to evolving industry standards and new technologies. 

Indeed, upskilling initiatives promote job satisfaction and career growth while also contributing to safer and more efficient construction practices. 

A strong focus on workforce development allows businesses to create a more resilient industry, reduce skill shortages, and ensure lasting social benefits for all.

Support to local communities

Construction businesses can support local communities by prioritising local hiring, sourcing materials from nearby suppliers, and actively engaging in community initiatives.

Minimising disruption during construction projects is another crucial aspect of community engagement.

Companies should implement clear communication strategies to keep residents informed about project timelines, potential inconveniences, and mitigation measures. Addressing these concerns through public meetings, online updates, or designated community liaisons helps build trust and ensures that local voices are heard.

How Keyline can support your sustainability journey

Achieving your ESG goals is a challenging journey, particularly in the construction industry, where high stakes and intricate practices can make progress seem daunting.

However, collaboration across the industry is key to driving meaningful change: working with the supply chain can enhance project efficiency, while open communication fosters greater transparency.

To successfully meet your ESG objectives, it’s crucial to work with partners who share your commitment. At Keyline, we want to support you in reaching your sustainability goals.

We keep our customers informed about the latest ESG developments in construction, helping them to assess their environmental impact and make informed decisions that align with their sustainability goals.

For more insights on ESG in construction, check out our related article on environment.